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Big oil companies show record profits for first quarter
Allen Baker PNA Contributing Writer
Record profits for the first quarter were the norm for big oil companies doing business in Alaska as higher oil prices and increased production brought huge gains. And the companies see continued prosperity in the future as demand in many of their businesses continues to look strong.
“Oil and natural gas prices have fallen back from peak levels, but both are expected to remain firm, with oil prices remaining broadly around the target range announced by OPEC,” said John Browne, BP’s chief executive, in a statement with that company’s earnings.
The smaller companies, traditionally more volatile, showed the biggest gains, but majors also posted high double-digit and even triple-digit improvements over results from a year earlier. BP’s profits climb 32 percent The British oil giant BP showed a 32 percent increase in pro forma profits for the quarter as production of oil and gas rose 13 percent. That year-over-year gain included amortization for the acquisition of Atlantic Richfield and Burmah Castrol. Before those credits and other special items, profits were up 28 percent.
Either way, the numbers are impressive. Pro forma profits were $4.1 billion, against $2.7 billion for the corresponding quarter a year ago, and profits before the exceptional items totaled $3.4 billion, up from just under $2.7 billion.
While total production of oil and gas increased, crude and natural gas liquids actually edged down. Natural gas volume rose 41 percent, more than making up the difference. Crude and NGL production was 1,937,000 barrels a day in the first quarter, up from 1,931,000 in the fourth quarter but down from 1,901,000 barrels daily in the same quarter of 2000. U.S. production dropped to 722,000 barrels a day from 794,000 a year earlier.
Crude yields were also down for the United Kingdom.
U.S. natural gas flow rose to 3,467 million cubic feet a day from 2,256 million as total natural gas production rose to 8,896 million cubic feet daily.
Exploration and production was the big economic engine, recording $5.1 billion in profits compared with $3.2 billion a year earlier. That includes the acquisition credits. Refining and marketing added $994 million in profits, compared with $584 million a year earlier. But that was down from $1.3 billion in the fourth quarter. The chemical business suffered from the big increase in feedstock prices, with profits of $81 million, just a third of the $259 million a year earlier.
BP doesn’t provide revenue figures in its quarterly results, so comparisons aren’t available there. Phillips’ Petroleum Co. profits nearly double Phillips’ profits nearly doubled for the first quarter, as the company’s Alaska operations showed their value. The ARCO Alaska assets acquisition occurred in last year’s second quarter, helping to boost daily production 73 percent to 845,000 barrels of oil and gas equivalents compared with Phillips sans ARCO a year earlier.
Gas volumes dropped 4 percent due to sale of some producing properties in Canada.
Besides the new oil pumped from Alaska, Phillips showed a 9 percent increase in Norwegian oil and a 25 percent boost in yields from Nigeria.
Compared with the fourth quarter of 2000, volumes were up 25,000 barrels a day, mostly due to a full quarter’s production from the Alpine field on the North Slope.
Including special items, the Oklahoma-based company had net income of $490 million, up from $250 million a year earlier. Those special items weren’t huge, cutting the profit number by just $14 million.
Revenues were up slightly, to $4.9 billion from $4.8 billion a year earlier. The increased profits came despite a decline in crude prices. Phillips averaged $25.81 a barrel for the oil it sold in the quarter, down from $27.07 a year earlier. Natural gas prices were up substantially, though, with U.S. gas bringing an average of $6.41 per thousand cubic feet, up from $2.40 a year earlier.
Worldwide, the gain was less pronounced, $2.83 versus $2.31.
The company’s interest in a joint venture chemicals unit brought a $39 million operating loss. But refining and marketing income rose to $48 million from $27 million.
Profits were down 28 percent compared with the blockbuster fourth quarter of last year. But the recent healthy cash flow allowed Phillips to reduce debt by about $500 million during the quarter as the company pared away at borrowings for its ARCO acquisition. ExxonMobil earnings hit $5 billion The world’s largest oil company boosted its first-quarter earnings to a cool $5 billion, up $1.5 billion — 44 percent — from a year earlier.
Revenue rose to $57.3 billion from $54 billion.
Upstream earnings were $3.8 billion, a sixth consecutive quarterly record.
The total was 37 percent higher than the first quarter of 2000. Higher profits from natural gas offset lower crude prices and increased spending on exploration.
Volumes were up except in natural gas, which suffered from the shutdown of Exxon’s Aceh province facilities in Indonesia. Liquids production was 2,619,000 barrels a day, up from 2,602,000.
Downstream earnings were nearly one billion dollars, a substantial improvement from last year’s first quarter results when rising crude prices depressed margins.
As with its competitors, ExxonMobil’s chemicals operation took a hit despite higher sales. But the operation still broke even. Another record quarter for Unocal Another quarterly record here. Unocal posted profits of $295 million, more than double the $133 million of the same quarter of 2000.
It was also a healthy gain from the fourth quarter’s $173 million in earnings.
Natural gas was the big engine, with the company averaging $6.93 per thousand cubic feet, up from $2.50 a year earlier. That added $215 million to after-tax earnings, the company calculated. Volumes were up 22 percent as well.
Worldwide, net daily production was 495,000 barrels of oil equivalent, up 7 percent from the 464,000 a year before.
North American exploration and production netted $241 million for the quarter, up from $63 million in the first quarter of 2000.
Alaska operations contributed $19 million, down from $24 million a year earlier.
International E&P brought in $106 million, up from $82 million a year ago.
Alaska crude volumes dropped to 24,000 barrels a day from 28,000 a year earlier, while Alaska gas volume declined to 138 million cubic feet a day from 151 million. The company got just $1.20 per thousand cubic feet from its Alaska gas, compared with the nearly $7 it collected for the same amount of gas in the Lower 48. Unocal’s Alaska crude brought $22.76, down from $23.15 a year earlier. Anadarko’s production up 236 percent Talk about roaring ahead. Anadarko Petroleum Corp. pushed net income available to common stockholders to $656 million in the first quarter from $31 million a year earlier and not far from the $796 the company earned for all of 2000.
Production was up 236 percent to 522,000 barrels of oil equivalent daily, primarily due to last year’s acquisition of Union Pacific Resources Group Inc. and increased production from Texas, the Gulf of Mexico and Alaska.
With high gas prices and the increased production, gas sales zoomed to $1.1 billion from $109 million in the same quarter of 2000.
Oil and condensate sales tripled to $361 million from $118 million. The company sold 139 billion cubic feet of domestic natural gas at $6.86 per thousand cubic feet, up from 44 billion at $2.46.
Canadian sales of 24 billion cubic feet brought $6.50. There was no Canadian production in the 2000 quarter. The company bought Canada’s Berkley Petroleum Corp. on March 16 for $1 billion.
Total revenues were $3.1 billion for the quarter, more than four times the $661 million of the same quarter in 2000. Marathon’s first quarter net doubled First quarter net more than doubled at USX-Marathon Group to $478 million from $199 million a year ago, after subtracting out accounting changes and special items. As for most of the companies, it was a record quarter.
Revenues reached $8.7 billion, up from $7.9 billion a year earlier. Exploration and production brought in $600 million for the quarter, up from $309 million. Domestic upstream income was $442 million, up from $201 million mostly on higher natural gas prices.
The results for this quarter include some revenues from Pennaco Energy Inc., a coalbed methane producer acquired on Feb. 7.
Downstream businesses produced $276 million in income, up from $140 million a year ago. Higher refined product margins more than offset lower margins in retail operations. Forest Oil has record quarter A record quarter for Forest Oil Corp., which acquired Forcenergy in December. Net income was $81.3 million, more than three times the $22.5 million earned in the first 2000 quarter.
Revenue was $258 million, up from $133 million. Natural gas flows averaged 309 million cubic feet, up from 295 million a year earlier, but liquids production slowed to 29,500 barrels a day from 32,700 a year earlier due in part to sales of some properties. The average gas price was up 156 percent for the quarter, compared to the first quarter of 2000, while the average crude price rose 27 percent. Cross Timbers earnings almost triple Cross Timbers Oil Co. also claimed record results, with quarterly earnings of $91 million before an accounting change, compared with $34 million. Cash flow from operations was a record $159 million, up from $56 million for the 2000 quarter.
Revenues hit $249 million, up from $113 million a year earlier, as the average gas price rose 148 percent to $5.97 per thousand cubic feet.
Gas volume was up 14 percent to an average of 383 million cubic feet daily.
Oil production was up slightly at 13,664 barrels a day, but production of natural gas liquids dropped 6 percent to 3,980 barrels a day. Chevron’s revenues rise $12 billion Chevron Corp. brought in $1.6 billion for the quarter, a 53 percent increase from a year earlier. Revenues rose to $12 billion from $11.4 billion.
Upstream earnings reached $1.4 billion, up from $1 billion in the 2000 quarter, while downstream businesses brought in $288 million, up from $64 million.
The chemicals segment lost $97 million, compared with a $24 million profit in the 2000 quarter.
Higher natural gas prices were the big contributor, with the California-based company getting an average of $7.57 per thousand cubic feet, up from $2.40. Crude prices dropped 6 percent to an average of $24.50 a barrel.
Alberta Energy’s gas sales
up 35 percent
Alberta Energy Co. Ltd. showed record earnings for the quarter with a tripling of profits to $383 million (Canadian), up from C$121 million.
Gas sales were up 35 percent for the quarter and oil production rose 21 percent.
Natural gas sales for the Calgary-based company averaged 1,221 million cubic feet a day in the quarter, up 27 percent from the same period in 2000. Oil and condensate sales averaged 133,118 barrels daily, a 23 percent rise.
Prices for natural gas more than tripled to $9.33 (Canadian) per thousand cubic feet from C$3 a year earlier.
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