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High oil and gas prices boost producer earnings to record levels Phillips fourth quarter earnings triple, refining and chemicals earnings hit by high product acquisition and energy costs Steve Sutherlin PNA Managing Editor
Phillips Petroleum Co. reported fourth quarter net operating income (excluding special items) of $701 million or $2.75 a share, more than triple the $215 million it reported the fourth quarter of 1999. Exploration and production produced $695 million of net operating income while refining, marketing and transportation added $125 million. Total revenues were $5.8 billion, versus $4.3 billion a year ago.
Net income was $744 million, or $2.91 a share, almost triple the $250 million for the same period of 1999. Net income included $43 million of special items, primarily gains on the sale of Canadian oil and gas properties and U.S. coal interests.
Chemicals reported a net operating loss of $41 million, compared with net operating income of $45 million in the fourth quarter of 1999.
Return on capital employed of 18.9 percent for the year 2000 was up from 8.2 percent in 1999. Since the ARCO Alaska Inc. acquisition in April, Alaska assets generated an annualized ROCE of 19.1 percent. Phillips’ return on common stockholders’ equity for the year was 36 percent, compared with 12.5 percent in 1999.
Debt was cut by more than $1 billion during the quarter to $6.9 billion by year-end reducing the debt-to-capital ratio to 51 percent, down from 61 percent following the company’s Alaskan acquisition. Stockholder equity increased 34 percent in 2000.
Production was higher in Alaska, Norway and Nigeria during the quarter.
Refining, marketing and transportation earnings were up over nine times those of the fourth quarter of 1999.
Gas gathering, processing and marketing net operating income was $28 million, down from $41 million for the same period of 1999.
For 2000, net operating income, which excludes special items, was $1.9 billion, or $7.53 a share, versus $548 million, or $2.17 a share, for 1999. Total revenues were $21.2 billion, versus $13.9 billion in 1999.
Net income was slightly less than $1.9 billion, or $7.32 a share, compared with $609 million, or $2.41 a share, for 1999.
Merger pumps up BP profits, cuts costs BP reported a fourth quarter pro forma result, adjusted for special items, of $4.09 billion versus $2.12 billion in 1999. The result per share increased 67 percent to 18.25 cents versus 10.94 cents a year ago.
For the year, the result was $14.2 billion, compared to $6.2 billion in 1999. The result per share increased 105 percent to 65.63 cents, up from 32 cents in 1999.
The company reported cost savings of $2 billion per year due to merging with ARCO.
The improvement in results reflects significantly higher oil and gas prices, the ARCO acquisition and operational improvements, the company said.
Higher product prices boost Chevron earnings Chevron Corp. reported net income of $1.494 billion or $2.32 per share for fourth quarter 2000, compared with $809 million or $1.23 per share in 1999. Excluding special item net charges of $49 million in the 2000 quarter, earnings were $1.543 billion.
Chevron’s record net income in 2000 of $5.185 billion or $7.97 per share dwarfed 1999 net income of $2.070 billion.
The company’s rate of return on capital employed was 22 percent. It reduced debt $2.7 billion and repurchased $1.4 billion in common shares.
U.S. downstream business rebounded in the second half of the year, as refined product price increases offset the higher costs of crude oil feed stocks.
Chevron is working obtain approval of its pending merger with Texaco.
Exxon earnings up 102 percent Exxon Mobil Corp. reported fourth quarter 2000 earnings of $5.12 billion or $1.46 per share, an increase of $2.4 billion over 1999. Including net favorable merger effects of $100 million, its net income of $5,220 million or $1.49 per share increased $2,936 million over 1999.
Capital and exploration expenditures of $3,85 billion in the fourth quarter were up $1.2 billion or 46 percent from the third quarter.
Full year 2000 earnings excluding merger effects and special items were a record $16.9 billion or $4.81 per share, versus $8.3 billion or $2.38 per share in 1999. Net income was a record $17.7 billion, compared with $7.9 billion in 1999. Per share net income was $5.04 versus $2.25 in 1999 Capital and exploration expenditures fell to $11.1 billion from $13.3 billion in 1999 because of the completion of several major projects, Exxon said.
Increased production from Alaska helped offset the impact of natural field declines in mature areas.
During the fourth quarter, the company bought in 15.0 million shares at a gross cost of $1.34 billion to offset dilution associated with benefit plans, and reduce common stock outstanding. Adjustment triggers fourth quarter loss for Marathon USX-Marathon Group’s fourth quarter 2000 net income adjusted for special items was $386 million, or $1.25 per diluted share, versus $148 million in 1999.
The Marathon Group recorded a fourth quarter 2000 net loss of $310 million, $1.00 per diluted share compared to net income of $171 million 1999.
Included in fourth quarter 2000 results were after-tax net charges totaling $696 million, including a $586 million non-cash adjustment related to the formation of a joint venture with Kinder Morgan.
For 2000, the company recorded net income of $432 million, or $1.39 per diluted share.
Its revenues were $8.0 billion in fourth quarter 2000 and $33.8 billion for the year, compared with $7.3 billion and $23.7 billion in the same periods of 1999. Refinery margins, volume boost Tesoro earnings Tesoro Petroleum Corp. reported record net earnings for 2000 of $73 million, or $1.75 per diluted share over 1999 earnings of $32 million, or $0.62 per diluted share.
Refining and marketing operating profit for 2000 totaled a record $189 million, an increase of over 50 percent compared to 1999. The improvement was driven by a combination of higher refined product margins and record-high refinery throughput, the company said.
Net earnings for the fourth quarter of 2000 were $24 million, or $0.59 per diluted share versus a net loss of $24 million, or $0.82 per diluted share in 1999.
Refining and marketing operating profit for the fourth quarter of 2000 was $57 million, compared to a loss of $18 million in 1999. Unocal earnings up sharply Unocal Corp. reported net earnings of $173 million, or 70 cents per share (diluted), for the fourth quarter 2000, compared with net earnings of $97 million, or 40 cents per share in the same period a year ago.Merger success shines Anadarko results Anadarko Petroleum Corp. announced record financial results for the fourth quarter and full year 2000.
For the fourth quarter 2000, Anadarko had net income of $454 million, or $1.75 per share (diluted) versus $28 million, or 22 cents per share in 1999.
For the year ending Dec. 31, 2000, Anadarko reported net income of $796 million or $4.16 per share (diluted). Net income for 1999 was $32 million or 25 cents per share (diluted).
The results for the year reflect the outstanding success of a merger with Union Pacific Resources, the company said.
High crude and gas prices boost Texaco earnings Texaco reported fourth quarter 2000 income before special items of $840 million or $1.55 per share. Net income for the period was $545 million, $1.00 per share.
Downstream performance worldwide continued to be adversely affected by high and volatile crude oil prices. Although refining margins were generally strong due to tight supply and demand balances, marketing margins worldwide were hammered by high product acquisition costs that could not be fully recovered in the marketplace.
U.S. Exploration and Production earnings for fourth quarter and full year 2000 were significantly higher than last year due to higher crude oil and natural gas prices.
Total operating income for 2000 was $1.07 billion, up from $ 360 million in 1999.
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