EXHIBIT 99.4
[CANADIAN HUNTER LOGO] Interim Report
Q3 2001 For the period ended September 30, 2001
- --------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEETS
<Table>
<Caption>
$ MILLIONS SEPTEMBER 30, 2001 December 31, 2000
------------------ -----------------
(UNAUDITED)
ASSETS
Current
Cash and marketable securities 6.1 --
Accounts receivable 93.3 212.7
Inventories 16.6 18.9
Other current assets 3.4 3.4
------------ ------------
119.4 235.0
Other assets 31.3 33.1
Property, plant and equipment 1,541.6 1,252.5
------------ ------------
1,692.3 1,520.6
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Accounts payable and accrued liabilities 131.7 180.2
Income taxes payable 154.4 19.9
Current portion of deferred revenue and other liabilities 6.3 4.2
------------ ------------
292.4 204.3
Deferred revenue and other liabilities 55.0 52.3
Long-term debt -- 234.9
Future income tax liability 437.2 397.1
Minority interest -- 14.0
------------ ------------
784.6 902.6
------------ ------------
SHAREHOLDERS' EQUITY
Share capital 347.9 347.6
Retained earnings 559.8 270.4
------------ ------------
907.7 618.0
------------ ------------
1,692.3 1,520.6
============ ============
</Table>
CONSOLIDATED STATEMENTS OF NET INCOME
FOR THE PERIOD ENDED SEPTEMBER 30 (UNAUDITED)
<Table>
<Caption>
Three months Nine months
---------------------- ----------------------
$ MILLIONS, EXCEPT PER SHARE AMOUNTS 2001 2000 2001 2000
-------- -------- -------- --------
REVENUE
Petroleum and natural gas sales 190.6 227.6 993.1 532.4
Royalties (39.3) (52.4) (234.4) (116.1)
-------- -------- -------- --------
151.3 175.2 758.7 416.3
-------- -------- -------- --------
EXPENSES
Production 18.6 13.8 57.4 39.3
General and administrative 7.4 5.3 19.8 15.6
Interest and other financing charges [NOTE 4] 0.1 53.1 3.3 60.4
Depletion, depreciation and amortization 65.1 48.9 195.9 132.3
Other (1.9) (0.2) (1.6) (1.4)
Minority interest -- 0.2 0.2 0.5
-------- -------- -------- --------
89.3 121.1 275.0 246.7
-------- -------- -------- --------
INCOME BEFORE INCOME TAXES 62.0 54.1 483.7 169.6
Income taxes
Current -- 0.8 135.3 2.1
Future 15.7 19.8 54.1 73.0
-------- -------- -------- --------
NET INCOME 46.3 33.5 294.3 94.5
======== ======== ======== ========
NET INCOME PER SHARE
Basic 0.77 0.56 4.94 1.59
Diluted [NOTE 2] 0.76 0.55 4.82 1.55
</Table>
CONSOLIDATED STATEMENTS OF RETAINED EARNINGS
FOR THE PERIOD ENDED SEPTEMBER 30 (UNAUDITED)
<Table>
<Caption>
Three months Nine months
-------------------- --------------------
$ MILLIONS 2001 2000 2001 2000
------- ------- ------- -------
RETAINED EARNINGS, BEGINNING OF PERIOD 514.1 127.0 270.4 68.5
Net income 46.3 33.5 294.3 94.5
Cash issued under incentive share option plan (0.6) (1.3) (4.9) (3.8)
------- ------- ------- -------
RETAINED EARNINGS, END OF PERIOD 559.8 159.2 559.8 159.2
======= ======= ======= =======
</Table>
CONSOLIDATED STATEMENTS OF CASH FLOW
FOR THE PERIOD ENDED SEPTEMBER 30 (UNAUDITED)
<Table>
<Caption>
Three months Nine months
---------------------- ----------------------
$ MILLIONS, EXCEPT PER SHARE AMOUNTS 2001 2000 2001 2000
-------- -------- -------- --------
OPERATING ACTIVITIES
Net income 46.3 33.5 294.3 94.5
Add (deduct) items not involving cash
Depletion, depreciation and amortization 64.6 48.7 195.4 132.0
Deferred revenue (1.3) 47.1 (4.5) 48.5
Future income taxes 15.7 19.8 54.1 73.0
Minority interest -- 0.2 0.2 0.5
-------- -------- -------- --------
Funds from operations 125.3 149.3 539.5 348.5
Net change in non-cash working capital 5.7 (3.4) 213.9 (55.5)
-------- -------- -------- --------
CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES 131.0 145.9 753.4 293.0
-------- -------- -------- --------
INVESTING ACTIVITIES
Exploration and development of oil and natural gas
properties (126.4) (64.1) (445.7) (241.0)
Acquisition of equipment and other assets (1.4) (0.4) (3.1) (2.2)
Acquisition of oil and natural gas properties (6.0) (14.5) (6.3) (20.8)
Disposition of oil and natural gas properties -- 28.0 0.9 28.4
Corporate acquisitions, net [NOTE 3] (43.4) -- (43.4) (54.5)
Net change in non-cash working capital balances 0.1 (0.2) (13.2) (4.3)
-------- -------- -------- --------
CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES (177.1) (51.2) (510.8) (294.4)
-------- -------- -------- --------
FINANCING ACTIVITIES
Cash issued under incentive share option plan (0.1) (1.2) (8.0) (3.8)
Share capital issued -- -- 0.2 0.1
Repayment of long-term debt -- -- (234.9) --
Drawings on long-term debt -- 8.9 -- 109.7
Increase (decrease) in deferred revenue and other
liabilities (1.6) (102.4) 6.2 (104.6)
-------- -------- -------- --------
CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES (1.7) (94.7) (236.5) 1.4
-------- -------- -------- --------
Net change in cash and marketable securities (47.8) -- 6.1 --
Cash and marketable securities, beginning of period 53.9 -- -- --
-------- -------- -------- --------
Cash and marketable securities, end of period 6.1 -- 6.1 --
======== ======== ======== ========
FUNDS FROM OPERATIONS PER SHARE
Basic 2.09 2.51 9.05 5.85
Diluted [NOTE 2] 2.06 2.44 8.83 5.71
</Table>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 ACCOUNTING POLICIES
The accounting policies used in the preparation of these interim consolidated
financial statements conform with those used in Canadian Hunter's annual
consolidated financial statements except as indicated in note 2. These interim
consolidated financial statements do not include all of the disclosures included
in Canadian Hunter's annual consolidated financial statements. Accordingly,
these interim consolidated financial statements should be read in conjunction
with the audited consolidated financial statements for the year ended December
31, 2000.
NOTE 2 CHANGE IN ACCOUNTING POLICY
Effective January 1, 2001, Canadian Hunter retroactively adopted the Canadian
Institute of Chartered Accountants new standard requiring the use of the
"treasury stock method" rather than the "imputed interest method" to determine
the dilutive effect of stock options and other dilutive instruments. Had the
imputed interest method been used for the nine months ended September 30, 2001,
diluted net income per share would have been $4.73 (2000 - $1.54) and diluted
funds from operations per share would have been $8.64 (2000 - $5.61). Had the
imputed interest method been used for the quarter ended September 30, 2001,
diluted net income per share would have been $0.75 (2000 - $0.55) and diluted
funds from operations per share would have been $2.01 (2000 - $2.40).
NOTE 3 CORPORATE ACQUISITIONS
In August 2001, Canadian Hunter purchased the remaining 22 percent of the shares
of Atalaya Energy S.A. ("Atalaya"). In March, 2000 Canadian Hunter purchased 78%
of the outstanding shares of Atalaya for $54.5 million. Atalaya is engaged in
the exploration for and production of natural gas and liquids in Argentina.
In September 2001, Canadian Hunter acquired all of the outstanding common shares
of a private Canadian company.
These transactions were accounted for using the purchase method.
Canadian Hunter allocated the 2001 corporate purchase prices to the assets and
liabilities as follows:
<Table>
<Caption>
($ millions) CANADA INTERNATIONAL CORPORATE TOTAL
Property, plant and equipment 1.3 27.1 28.4
Net non-cash working capital 0.8 0.8 1.6
Future income tax asset (liability) 18.8 (7.0) 11.8
Other 1.6 -- 1.6
-------- -------- --------
TOTAL 22.5 20.9 43.4
-------- -------- --------
</Table>
NOTE 4 INTEREST AND OTHER FINANCING CHARGES
In 2000, interest and other financing charges included $48.6 million related to
a loss on termination of a prepaid natural gas contract.
NOTE 5 SUBSEQUENT EVENT - OFFER TO PURCHASE ALL OF THE COMMON SHARES OF
CANADIAN HUNTER
Effective December 5, 2001, Burlington Acquisition Corporation, an indirect
wholly-owned subsidiary of Burlington Resources Inc., acquired all of the issued
and outstanding common shares of the Corporation.
SEGMENTED INFORMATION
FOR THE THREE MONTHS ENDED SEPTEMBER 30 (UNAUDITED)
<Table>
<Caption>
CANADA ARGENTINA CORPORATE TOTAL
2001 2000 2001 2000 2001 2000
--------- --------- --------- --------- --------- ---------
FINANCIAL ($MILLIONS)
Petroleum and natural gas sales 182.6 225.1 8.0 2.5 190.6 227.6
Funds from operations 120.0 147.7 5.3 1.6 125.3 149.3
Net income 45.3 33.1 1.0 0.4 46.3 33.5
Capital expenditures
Exploration and development 124.9 62.6 1.5 1.5 126.4 64.1
Acquisition of oil and natural gas
properties 6.0 14.5 -- -- 6.0 14.5
Disposition of oil and natural gas
properties -- (28.0) -- -- -- (28.0)
Corporate acquisitions, net 22.5 -- 20.9 -- 43.4 --
--------- --------- --------- --------- --------- ---------
OPERATING
Production
Natural gas (mmcf/d) 479 425 35 9 514 434
Natural gas liquids (bbls/d) 8,587 7,871 168 52 8,755 7,923
Crude oil (bbls/d) 831 1,266 -- -- 831 1,266
Total (boe/d) 89,250 79,883 5,987 1,559 95,237 81,442
--------- --------- --------- --------- --------- ---------
Prices
Natural gas ($/mcf) 3.56 4.97 2.29 2.20 3.47 4.89
Natural gas liquids ($/bbl) 28.57 37.51 29.58 37.87 28.59 37.51
Crude oil ($/bbl) 38.78 33.76 -- -- 38.78 33.76
Total ($/boe) 22.22 30.62 14.17 14.06 21.70 30.22
--------- --------- --------- --------- --------- ---------
Netback ($/boe)
Product revenue 22.22 30.62 14.17 14.06 21.70 30.22
Royalties (4.67) (7.10) (1.62) (1.49) (4.47) (6.95)
Operating expense (2.06) (1.82) (3.01) (2.21) (2.12) (1.83)
--------- --------- --------- --------- --------- ---------
Operating netback 15.49 21.70 9.54 10.36 15.11 21.44
General and administrative expense (0.87) (0.69) (0.46) (1.38) (0.85) (0.70)
Interest expense (0.02) (0.61) 0.06 -- (0.02) (0.56)
Current taxes (0.01) (0.11) -- -- (0.01) (0.11)
--------- --------- --------- --------- --------- ---------
Cash netback 14.59 20.29 9.14 8.98 14.23 20.07
========= ========= ========= ========= ========= =========
</Table>
SEGMENTED INFORMATION
FOR THE NINE MONTHS ENDED SEPTEMBER 30 (UNAUDITED)
<Table>
<Caption>
CANADA ARGENTINA CORPORATE TOTAL
2001 2000 2001 2000 2001 2000
--------- --------- --------- --------- --------- ---------
FINANCIAL ($MILLIONS)
Petroleum and natural gas sales 972.4 526.6 20.7 5.8 993.1 532.4
Funds from operations 527.3 345.4 12.2 3.1 539.5 348.5
Net income 292.5 93.9 1.8 0.6 294.3 94.5
Capital expenditures
Exploration and development 434.9 238.5 10.8 2.5 445.7 241.0
Acquisition of oil and natural gas
properties 6.3 20.7 -- 0.1 6.3 20.8
Disposition of oil and natural gas
properties (0.9) (28.4) -- -- (0.9) (28.4)
Corporate acquisitions, net 22.5 -- 20.9 54.5 43.4 54.5
--------- --------- --------- --------- --------- ---------
OPERATING
Production
Natural gas (mmcf/d) 489 403 29 7 518 410
Natural gas liquids (bbls/d) 9,260 7,502 149 41 9,409 7,543
Crude oil (bbls/d) 859 1,478 -- -- 859 1,478
Total (boe/d) 91,684 76,137 4,920 1,211 96,604 77,348
--------- --------- --------- --------- --------- ---------
Prices
Natural gas ($/mcf) 6.51 4.00 2.30 2.16 6.26 3.96
Natural gas liquids ($/bbl) 36.64 34.06 35.16 36.27 36.62 34.07
Crude oil ($/bbl) 41.80 36.49 -- -- 41.80 36.49
Total ($/boe) 38.85 25.24 14.45 13.73 37.53 25.01
--------- --------- --------- --------- --------- ---------
Netback ($/boe)
Product revenue 38.85 25.24 14.45 13.73 37.53 25.01
Royalties (9.27) (5.53) (1.58) (1.51) (8.86) (5.45)
Operating expense (2.11) (1.84) (3.21) (2.10) (2.17) (1.84)
--------- --------- --------- --------- --------- ---------
Operating netback 27.47 17.87 9.66 10.12 26.50 17.72
General and administrative expense (0.73) (0.70) (1.09) (2.29) (0.75) (0.73)
Interest expense (0.13) (0.56) -- (0.28) (0.13) (0.55)
Current taxes (5.41) (0.10) -- -- (5.11) (0.10)
--------- --------- --------- --------- --------- ---------
Cash netback 21.20 16.51 8.57 7.55 20.51 16.34
========= ========= ========= ========= ========= =========
</Table>
CAPITAL EXPENDITURES
FOR THE PERIOD ENDED SEPTEMBER 30 (UNAUDITED)
<Table>
<Caption>
Three months Nine months
--------------------- ----------------------
$ MILLIONS 2001 2000 2001 2000
-------- -------- -------- --------
Lease acquisition and rentals 32.2 24.5 91.9 48.2
Seismic 4.7 1.2 19.3 9.0
Drilling and completions 60.3 24.6 199.8 115.9
Facilities 26.9 11.0 128.0 59.1
Capitalized general and administrative 2.3 2.8 6.7 8.8
-------- -------- -------- --------
Exploration and development expenditures 126.4 64.1 445.7 241.0
Acquisition of oil and natural gas properties 6.0 14.5 6.3 20.8
Disposition of oil and natural gas properties -- (28.0) (0.9) (28.4)
Corporate acquisitions, net 43.4 -- 43.4 54.5
Other 1.4 0.4 3.1 2.2
-------- -------- -------- --------
Total capital expenditures 177.2 51.0 497.6 290.1
======== ======== ======== ========
</Table>
DRILLING HISTORY
FOR THE PERIOD ENDED SEPTEMBER 30, 2001 (UNAUDITED)
<Table>
<Caption>
Three months Nine months
Gross Net Gross Net
-------- -------- -------- --------
EXPLORATORY
Natural gas 30 24.3 122 98.7
Crude oil -- -- -- --
Dry 9 9.0 23 21.4
-------- -------- -------- --------
Total exploratory 39 33.3 145 120.1
-------- -------- -------- --------
DEVELOPMENT
Natural gas 28 21.8 127 93.2
Crude oil -- -- -- --
Dry 5 4.9 12 10.5
-------- -------- -------- --------
Total development 33 26.7 139 103.7
-------- -------- -------- --------
Total wells drilled 72 60.0 284 223.8
-------- -------- -------- --------
SUCCESS RATIO (%)
Exploratory 77 73 84 82
Development 85 82 91 90
-------- -------- -------- --------
Overall 81 77 88 86
======== ======== ======== ========
</Table>