Exhibit 99.10
ITEM 6. Selected Financial Data
In the following table, the Company’s financial, production and other data for 2006 reflect the acquisition of Latigo Petroleum, Inc. (“Latigo”) on May 2, 2006. The financial, production and other data for 2006 and 2005 reflect the Company’s Canadian oil and gas exploration, development and production activities in its wholly owned subsidiary Northrock Resources (“Northrock”) as discontinued operations. Northrock, which was acquired on September 27, 2005 was sold in August of 2007. The Company’s results for periods presented prior to 2006 reflect its oil and gas exploration, development and production activities in the Kingdom of Thailand and Hungary, which were sold in 2005, 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” and the audited consolidated financial statements and notes thereto included under “Item 8 – Financial Statements and Supplementary Data.”
| | For the Year Ended December 31, | |
| | 2006 | | 2005 | | 2004 | | 2003 | | 2002 | |
| | (Expressed in millions, except per share and production data) | |
Financial Data | | | | | | | | | | | |
Revenues and other: | | | | | | | | | | | |
Crude oil and condensate | | $ | 405.8 | | $ | 413.4 | | $ | 417.1 | | $ | 426.4 | | $ | 282.0 | |
Natural gas | | 457.8 | | 621.1 | | 512.6 | | 397.3 | | 231.3 | |
Natural gas liquids | | 61.1 | | 47.6 | | 43.4 | | 32.4 | | 24.4 | |
Oil and gas revenues | | 924.7 | | 1,082.1 | | 973.1 | | 856.1 | | 537.7 | |
Other | | 5.8 | | 3.8 | | 3.8 | | 2.0 | | 1.3 | |
Total | | $ | 930.5 | | $ | 1,085.9 | | $ | 976.9 | | $ | 858.1 | | $ | 539.0 | |
| | | | | | | | | | | |
Income from continuing operations before cumulative | | | | | | | | | | | |
effect of change in accounting principle | | $ | 377.8 | | $ | 261.0 | | $ | 249.0 | | $ | 235.2 | | $ | 68.6 | |
Income from discontinued operations, net of tax | | 68.4 | | 489.7 | (a) | 12.7 | | 59.9 | | 38.4 | |
Cumulative effect of change in accounting principle | | — | | — | | — | | (4.2 | )(b) | — | |
Net income | | $ | 446.2 | | $ | 750.7 | | $ | 261.7 | | $ | 290.9 | | $ | 107.0 | |
Per share data: | | | | | | | | | | | |
Basic income from operations before cumulative | | | | | | | | | | | |
effect of change in accounting principle - | | | | | | | | | | | |
From continuing operations | | $ | 6.56 | | $ | 4.32 | | $ | 3.90 | | $ | 3.76 | | $ | 1.18 | |
From discontinued operations | | 1.18 | | 8.11 | | 0.20 | | 0.96 | | 0.67 | |
Basic income from operations before cumulative | | | | | | | | | | | |
effect of change in accounting principle | | $ | 7.74 | | $ | 12.43 | | $ | 4.10 | | $ | 4.72 | | $ | 1.85 | |
Diluted income from operations before cumulative | | | | | | | | | | | |
effect of change in accounting principle - | | | | | | | | | | | |
From continuing operations | | $ | 6.50 | | $ | 4.28 | | $ | 3.87 | | $ | 3.67 | | $ | 1.16 | |
From discontinued operations | | 1.18 | | 8.04 | | 0.19 | | 0.93 | | 0.61 | |
Diluted income from operations before cumulative | | | | | | | | | | | |
effect of change in accounting principle | | $ | 7.68 | | $ | 12.32 | | $ | 4.06 | | $ | 4.60 | | $ | 1.77 | |
| | | | | | | | | | | |
Cash dividends on common stock | | $ | 0.30 | | $ | 0.25 | | $ | 0.2125 | | $ | 0.20 | | $ | 0.12 | |
Price range of common stock: | | | | | | | | | | | |
High | | $ | 60.42 | | $ | 59.69 | | $ | 51.34 | | $ | 49.50 | | $ | 39.28 | |
Low | | $ | 38.01 | | $ | 41.59 | | $ | 39.25 | | $ | 34.29 | | $ | 23.00 | |
| | | | | | | | | | | |
Weighted average number of common | | | | | | | | | | | |
shares outstanding | | | | | | | | | | | |
Basic | | 57.6 | | 60.4 | | 63.8 | | 62.5 | | 57.9 | |
Diluted | | 58.1 | | 60.9 | | 64.4 | | 64.6 | | 64.3 | |
Long-term debt at year end | | $ | 2,319.7 | | $ | 1,643.4 | | $ | 755.0 | | $ | 487.3 | | $ | 722.9 | |
Shareholders’ equity at year end | | $ | 2,567.4 | | $ | 2,098.6 | | $ | 1,727.9 | | $ | 1,453.7 | | $ | 1,077.8 | |
Total assets at year end | | $ | 6,971.1 | | $ | 5,675.7 | | $ | 3,481.1 | | $ | 2,758.7 | | $ | 2,491.6 | |
| | | | | | | | | | | |
Production (Sales) Data | | | | | | | | | | | |
Net daily average production | | | | | | | | | | | |
and weighted average price: | | | | | | | | | | | |
Natural gas (MMcf per day) | | 201.5 | | 231.6 | | 244.3 | | 210.4 | | 201.3 | |
Price (per Mcf) | | $ | 6.22 | | $ | 7.35 | | $ | 5.73 | | $ | 5.17 | | $ | 3.15 | |
Crude oil and condensate (Bbl per day) | | 17,717 | | 22,337 | | 29,530 | | 40,173 | | 30,971 | |
Price (per Bbl) | | $ | 62.75 | | $ | 50.70 | | $ | 38.59 | | $ | 29.08 | | $ | 24.95 | |
Natural gas liquids (Bbl per day) | | 4,492 | | 3,842 | | 4,220 | | 4,109 | | 4,480 | |
Price (per Bbl) | | $ | 37.28 | | $ | 33.93 | | $ | 28.09 | | $ | 21.59 | | $ | 14.94 | |
| | | | | | | | | | | |
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| | For the Year Ended December 31, | |
| | 2006 | | 2005 | | 2004 | | 2003 | | 2002 | |
| | (Expressed in millions) | |
Capital Expenditures | | | | | | | | | | | |
(including interest capitalized) | | | | | | | | | | | |
Oil and gas: | | | | | | | | | | | |
Domestic Onshore - | | | | | | | | | | | |
Exploration | | $ | 210.2 | | $ | 117.1 | | $ | 29.0 | | $ | 26.2 | | $ | 14.5 | |
Development | | 371.2 | | 143.3 | | 159.5 | | 118.0 | | 117.2 | |
Purchase of properties | | 1,046.2 | | 46.0 | | 583.8 | | 177.7 | | — | |
Domestic Offshore - | | | | | | | | | | | |
Exploration | | 12.1 | | 63.8 | | 54.3 | | 28.1 | | 33.6 | |
Development | | 35.1 | | 20.9 | | 74.0 | | 23.9 | | 100.7 | |
Purchase of properties | | — | | — | | 24.7 | | — | | — | |
Other international - | | | | | | | | | | | |
Exploration | | 0.1 | | — | | 5.6 | | 0.1 | | — | |
Development | | — | | 0.1 | | — | | — | | — | |
Total oil and gas | | 1,674.9 | | 391.2 | | 930.9 | | 374.0 | | 266.0 | |
Other | | 4.7 | | 6.0 | | 6.2 | | 2.5 | | 3.3 | |
Total | | $ | 1,679.6 | | $ | 397.2 | | $ | 937.1 | | $ | 376.5 | | $ | 269.3 | |
a) Includes approximately $408 million of after-tax gain on the sale of the Company’s operation in Hungary and Thailand.
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.
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