EXHIBIT 99.3
ITEM 6. Selected Financial Data.
In the following table, the Company’s financial, production and other data for 2001 through 2004 reflect the Company’s acquisition of North Central from and on March 14, 2001. The Company’s results for all periods presented reflect its oil and gas exploration, development and production activities in the Kingdom of Thailand and Hungary as discontinued operations. The selected financial data should be read in conjunction with “Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations”, filed as Exhibit 99.4 to this report and the audited consolidated financial statements and notes thereto included under “Item 8 – Financial Statements and Supplementary Data”, filed as Exhibit 99.6 to this report.
| | For the Year Ended December 31, | |
| | 2004 | | 2003 | | 2002 | | 2001 (a) | | 2000 (a) | |
| | (Expressed in thousands, except per share and production data) | |
Financial Data | | | | | | | | | | | |
Revenues: | | | | | | | | | | | |
Crude oil and condensate | | $ | 417,093 | | $ | 426,395 | | $ | 281,990 | | $ | 132,933 | | $ | 136,802 | |
Natural gas | | 512,598 | | 397,303 | | 231,301 | | 267,678 | | 143,471 | |
Natural gas liquids | | 43,392 | | 32,376 | | 24,426 | | 12,461 | | 15,869 | |
Oil and gas revenues | | 973,083 | | 856,074 | | 537,717 | | 413,072 | | 296,142 | |
Other | | 14,605 | | 2,431 | | 4,359 | | 13,970 | | 18,789 | |
Total | | $ | 987,688 | | $ | 858,505 | | $ | 542,076 | | $ | 427,042 | | $ | 314,931 | |
| | | | | | | | | | | |
Income from continuing operations before cumulative effect of change in accounting principle | | $ | 249,035 | | $ | 235,235 | | $ | 68,647 | | $ | 26,260 | | $ | 49,890 | |
Income from discontinued operations, net of tax | | 12,719 | | 59,872 | | 38,384 | | 61,694 | | 39,133 | |
Cumulative effect of change in accounting principle | | — | | (4,166 | )(b) | — | | — | | (1,768 | )(c) |
Net income | | $ | 261,754 | | $ | 290,941 | | $ | 107,031 | | $ | 87,954 | | $ | 87,255 | |
Per share data: | | | | | | | | | | | |
Basic income from operations before cumulative effect of change in accounting principle - | | | | | | | | | | | |
From continuing operations | | $ | 3.90 | | $ | 3.76 | | $ | 1.18 | | $ | 0.51 | | $ | 1.23 | |
From discontinued operations | | 0.20 | | 0.96 | | 0.67 | | 1.21 | | 0.97 | |
Basic income from operations before cumulative effect of change in accounting principle | | $ | 4.10 | | $ | 4.72 | | $ | 1.85 | | $ | 1.72 | | $ | 2.20 | |
Diluted income from operations before cumulative effect of change in accounting principle - | | | | | | | | | | | |
Basic | | $ | 3.87 | | $ | 3.67 | | $ | 1.16 | | $ | 0.51 | | $ | 1.19 | |
Diluted | | 0.19 | | 0.93 | | 0.61 | | 1.11 | | 0.80 | |
Diluted income from operations before cumulative effect of change in accounting principle | | $ | 4.06 | | $ | 4.60 | | $ | 1.77 | | $ | 1.62 | | $ | 1.99 | |
| | | | | | | | | | | |
Cash dividends on common stock | | $ | 0.2125 | | $ | 0.20 | | $ | 0.12 | | $ | 0.12 | | $ | 0.12 | |
Price range of common stock: | | | | | | | | | | | |
High | | $ | 51.34 | | $ | 49.50 | | $ | 39.28 | | $ | 34.50 | | $ | 33.19 | |
Low | | $ | 39.25 | | $ | 34.29 | | $ | 23.00 | | $ | 20.45 | | $ | 18.00 | |
| | | | | | | | | | | |
Basic weighted average number of common shares outstanding | | 63,848 | | 62,538 | | 57,963 | | 51,031 | | 40,445 | |
Long-term debt at year end | | $ | 755,000 | | $ | 487,261 | | $ | 722,903 | | $ | 792,561 | | $ | 365,000 | |
Minority interest at year end | | $ | — | | $ | — | | $ | — | | $ | 145,086 | | $ | 144,913 | |
Shareholders’ equity at year end | | $ | 1,727,895 | | $ | 1,453,653 | | $ | 1,077,784 | | $ | 824,885 | | $ | 358,271 | |
Total assets at year end | | $ | 3,481,109 | | $ | 2,758,651 | | $ | 2,491,593 | | $ | 2,423,979 | | $ | 1,114,649 | |
| | | | | | | | | | | |
Production (Sales) Data | | | | | | | | | | | |
Net daily average production and weighted average price: | | | | | | | | | | | |
Natural gas (Mcf per day) | | 244,300 | | 210,400 | | 201,300 | | 172,800 | | 106,200 | |
Price (per Mcf) | | $ | 5.73 | | $ | 5.17 | | $ | 3.15 | | $ | 4.25 | | $ | 3.69 | |
Crude oil and condensate (Bbl per day) | | 29,530 | | 40,173 | | 30,971 | | 14,804 | | 13,432 | |
Price (per Bbl) | | $ | 38.59 | | $ | 29.08 | | $ | 24.95 | | $ | 24.60 | | $ | 27.83 | |
Natural gas liquids (Bbl per day) | | 4,220 | | 4,109 | | 4,480 | | 2,118 | | 2,141 | |
Price (per Bbl) | | $ | 28.09 | | $ | 21.59 | | $ | 14.94 | | $ | 16.12 | | $ | 20.25 | |
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| | For the Year Ended December 31, | |
| | 2004 | | 2003 | | 2002 | | 2001 | | 2000 | |
| | (Expressed in thousands) | |
Capital Expenditures | | | | | | | | | | | |
(including interest capitalized) | | | | | | | | | | | |
Oil and gas: | | | | | | | | | | | |
Domestic Offshore - | | | | | | | | | | | |
Exploration | | $ | 54,300 | | $ | 28,100 | | $ | 33,600 | | $ | 18,000 | | $ | 18,700 | |
Development | | 74,000 | | 23,900 | | 100,700 | | 169,000 | | 43,700 | |
Purchase of reserves | | 24,700 | | — | | — | | 87,700 | | — | |
Onshore North America - | | | | | | | | | | | |
Exploration | | 29,000 | | 26,200 | | 14,500 | | 38,300 | | 19,700 | |
Development | | 159,500 | | 118,000 | | 117,200 | | 113,600 | | 34,700 | |
Purchase of reserves | | 583,800 | | 177,700 | | — | | 1,027,200 | | 8,400 | |
International - | | | | | | | | | | | |
Exploration | | 5,600 | | 100 | | — | | 2,000 | | — | |
Development | | — | | — | | — | | 1,200 | | — | |
Total oil and gas | | 930,900 | | 374,000 | | 266,000 | | 1,457,000 | | 125,200 | |
Other | | 6,200 | | 2,500 | | 3,300 | | 4,800 | | 700 | |
Total | | $ | 937,100 | | $ | 376,500 | | $ | 269,300 | | $ | 1,461,800 | | $ | 125,900 | |
(a) The Company’s financial statements for 2000 – 2001 were audited by Arthur Andersen LLP, who have ceased operations.
(b) Effective January 1, 2003, the Company adopted the provisions of Statement of Financial Accounting Standards No. 143 (“SFAS 143”), “Accounting for Asset Retirement Obligations.” This new accounting standard required a change in the accounting for asset retirement obligations. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations, Application of Critical Accounting Policies and Management’s Estimates, Future Development and Abandonment Costs” for further discussion of the provisions of SFAS 143.
(c) Crude oil and condensate from the Company’s producing fields located in the Kingdom of Thailand was produced into storage vessels and sold and recognized as revenue periodically as economic quantities were accumulated. Effective January 1, 2000, the Company adopted the provisions of the Securities and Exchange Commission’s (the “SEC”) Staff Accounting Bulletin No. 101, Revenue Recognition, and revised its practice of recording such product inventories at their net realizable value. The cumulative effect of this change in accounting principle through December 31, 1999 ($1,768,000, net of tax benefits of $1,768,000) was charged to earnings effective January 1, 2000.
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