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Gold/Mining/Energy : FLC Falcon Drilling -- Ignore unavailable to you. Want to Upgrade?

To: LT who wrote (414)	5/3/1999 9:43:00 AM
From: DEER HUNTER	Respond to of 461

Monday May 3, 9:25 am Eastern Time Company Press Release SOURCE: R&B Falcon Corporation R&B Falcon Reports First Quarter 1999 Results HOUSTON, May 3 /PRNewswire/ -- R&B Falcon Corporation (NYSE: FLC - news) reported income from continuing operations of $3.3 million ($.02 per share) for the three months ended March 31, 1999, compared with income from continuing operations of $61.5 million ($.37 per share) for the three months ended March 31, 1998. Net income for the current quarter, $1.6 million, includes an extraordinary loss of $1.7 million ($.01 per share) for charges relating to the early extinguishment of debt. Net income for the comparable quarter of the prior year, $69.8 million, includes $8.3 million ($.05 per share) income due to the recontinuance of discontinued operations. Operating income for the quarter ended March 31, 1999 was $32.7 million on revenues of $243.8 million, compared to operating income for the quarter ended March 31, 1998 of $116.8 million on revenues of $279.3 million. Revenues were $35.5 million lower in the current quarter in spite of $79.7 million from newly acquired Cliffs Drilling Company ($55.7 million from engineering services and land operations and $24.0 million from shallow water). Revenue decreases were primarily related to the shallow water and inland water segments and resulted from lower dayrates and utilization across the board. Operating expenses were $48.6 million higher in the current period than the same period of the prior year. The acquisition of Cliffs Drilling accounted for $65.3 million of the increase while inland water and shallow water operating expense decreased $18.3 million due to lower utilization. Average fleet utilization for the current quarter was 48% compared to 87% for the same quarter in the preceding year. Interest expense, net of capitalized interest for the three months ended March 31, 1999, increased $15.0 million compared to the three months ended March 31, 1998 due to higher debt levels and increased average interest rates. There was also an $8.4 million increase in capitalized interest due to increased investments in the Company's construction program. Paul B. Loyd, Jr., the Company's Chairman, said, ''Industry conditions, particularly in the shallow water and marine segments remained depressed in the first quarter. We believe that increased oil and natural gas prices should drive improvements in these segments later in the year. With the largest jackup and inland water fleets in the industry, the Company is well positioned to take advantage of these expected improvements in drilling activity; alternatively, with the dramatically improved liquidity resulting from our recent capital transactions, we are also well prepared to weather a more extended downturn. Either way, we believe patient shareholders will be amply rewarded when industry conditions normalize.'' R&B Falcon Corporation operates the world's largest fleet of marine-based drilling rigs servicing the international oil and gas industry. Its fleet is composed of 136 marine-based drilling units including the industry's largest fleets of barge and jackup rigs, and a fleet of semisubmersibles and drillships which is among the most capable in the world. R&B Falcon also provides turnkey and integrated services and operates mobile production units, internationally-based land drilling rigs and an offshore towing business. R&B FALCON CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEET (in millions) 3/31/99 12/31/98 ASSETS: Cash, cash equivalents and short-term investments $ 545.1 $ 177.4 Other current assets 349.9 349.7 Net property and equipment 3,228.9 3,030.6 Other assets 318.3 151.6 TOTAL ASSETS $4,442.2 $3,709.3 LIABILITIES AND STOCKHOLDERS' EQUITY: Current liabilities $ 255.9 $ 351.8 Long-term obligations 2,714.3 1,866.2 Other noncurrent liabilities 174.4 178.3 Minority interest 44.6 62.8 Stockholders' equity 1,253.0 1,250.2 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $4,442.2 $3,709.3 R&B FALCON CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENT OF OPERATIONS (in millions except per share amounts) THREE MONTHS ENDED MARCH 31, 1999 1998 OPERATING REVENUES: Deepwater $ 90.2 $ 99.6 Shallow water 66.8 106.9 Inland water 31.0 72.7 Engineering services and land operations 55.8 0.1 Total operating revenues 243.8 279.3 COSTS AND EXPENSES: Deepwater 43.3 42.0 Shallow water 48.3 39.0 Inland water 27.9 39.1 Engineering services and land operations 38.3 0.1 Development 1.0 7.8 Depreciation and amortization 36.5 21.4 General and administrative 15.8 14.1 Merger expenses --- (1.0) Total costs and expenses 211.1 162.5 OPERATING INCOME 32.7 116.8 OTHER INCOME (EXPENSE): Interest expense, net of capitalized interest (28.4) (13.4) Interest income 4.6 1.7 Income from equity investees plus related income 0.6 --- Other, net (0.2) 0.1 Total other income (expense) (23.4) (11.6) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAX EXPENSE, MINORITY INTEREST AND EXTRAORDINARY LOSS 9.3 105.2 INCOME TAX EXPENSE (BENEFIT): Current 7.8 6.8 Deferred (4.5) 34.6 Total income tax expense (benefit) 3.3 41.4 MINORITY INTEREST (2.7) (2.3) INCOME FROM CONTINUING OPERATIONS BEFORE EXTRAORDINARY LOSS 3.3 61.5 INCOME FROM DISCONTINUED OPERATIONS --- 8.3 EXTRAORDINARY LOSS, NET OF TAX BENEFIT (1.7) --- NET INCOME $ 1.6 $ 69.8 NET INCOME PER SHARE: BASIC: Continuing operations $ 0.02 $ 0.37 Discontinued operations --- 0.05 Extraordinary loss (0.01) --- Net income $ 0.01 $ 0.42 DILUTED: Continuing operations $ 0.02 $ 0.37 Discontinued operations --- 0.05 Extraordinary loss (0.01) --- Net income $ 0.01 $ 0.42 WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: BASIC 192.5 164.9 DILUTED 193.5 166.4 SOURCE: R&B Falcon Corporation ------------------------------------------------------------------------

To: LT who wrote (414)	5/4/1999 2:32:00 PM
From: DEER HUNTER	Read Replies (1) \| Respond to of 461

woooohooooo.....look at dem boys find that erl..... Tuesday May 4, 9:24 am Eastern Time Company Press Release SOURCE: Conoco Inc. Conoco and Ocean Energy, Inc. Announce Deepwater Discovery HOUSTON, May 4 /PRNewswire/ -- Conoco (NYSE: COC - news) and Ocean Energy, Inc. (NYSE: OEI - news) today announced a discovery on the Magnolia prospect located on Garden Banks Block 783 in 4,700 feet of water in the Gulf of Mexico, about 160 miles south of Lafayette, La. The Magnolia well, spudded Jan. 30, is the first well drilled by Conoco and R&B Falcon Corporation in Conoco's five-year, $400 million deepwater drilling program with the ultra-deepwater drillship, Deepwater Pathfinder. The well, drilled to a depth of 16,868 feet, encountered hydrocarbon- bearing sections of 150-to-200 net feet. ''It is too early to estimate the discovery's size or to speculate about potential development options,'' said Rob McKee, Conoco's executive vice president for worldwide upstream operations. ''We will do more technical work to accurately quantify reserves and evaluate options to appraise the well. ''A discovery is always good news, but this is even more meaningful because it is the first well drilled by the Pathfinder -- one-for-one is a great start,'' he said. ''We are extremely pleased with the ship's performance and how well the crew adapted to the advanced technology on the vessel.'' James T. Hackett, president and chief executive officer of Ocean Energy, Inc., said, ''The Magnolia well is a significant addition to our strategy of expansion into the deepwater Gulf of Mexico. We are pleased with this exploration result on Magnolia, and we appreciate the accomplishments of the technical staff of both companies. This discovery is encouraging for the potential of our future deepwater prospects. Ocean looks forward to the continuation of our successful relationship with Conoco on other jointly owned deepwater blocks in the Gulf of Mexico.'' Conoco Inc. is operator with a 75-percent interest. Ocean Energy, Inc. holds the remaining 25-percent interest in Garden Banks Block 783 and two offset blocks, Garden Banks 740 and 784. Following the completion of operations for Magnolia, the Pathfinder will move to Conoco's K2 Prospect to begin drilling a 24,500-foot well in approximately 3,960 feet of water on Green Canyon Block 562, where Conoco's lease is due to expire May 31, 1999. Conoco plans to use the Pathfinder to drill as many as four wells this year in the Gulf of Mexico, where the company holds 295 deepwater leases. The ship is the first new-build capable of operating in 10,000 feet of water. Conoco is a major, integrated energy company based in Houston and active in 40 countries. Ocean Energy, Inc. is an independent energy company based in Houston and active in North America onshore, the shelf and deepwater areas of the Gulf of Mexico, and internationally in nine countries, including Egypt and the West African nations of Angola, Equatorial Guinea, and Cote d' Ivoire. Certain statements in this news release regarding future expectations, oil and gas reserves, exploration, development, production and pricing may be regarded as ''forward looking statements'' within the meaning of the Securities Litigation Reform Act. They are subject to various risks, such as operating hazards, drilling risks, and the inherent uncertainties in interpreting engineering data relating to underground accumulations of oil and gas, as well as other risks discussed in detail in the companies' SEC filings, including the Annual Reports on Form 10-K for the year-ended Dec. 31, 1998. Actual results may vary materially. SOURCE: Conoco Inc. ------------------------------------------------------------------------ More Quotes and News: