Newspaper article THE JOURNAL RECORD

Phillips' Budget for '93 Rises 2% to $1.2 Billion

Newspaper article THE JOURNAL RECORD

Phillips' Budget for '93 Rises 2% to $1.2 Billion

Article excerpt

By Ronda Fears

Journal Record Staff Reporter

A modest 2 percent increase in spending is planned next year by Phillips Petroleum Co. of Bartlesville, which Monday revealed a 1993 budget of $1.2 billion.

It compares with the company's estimated 1992 expenditures of $1.17 billion. The estimated 1992 spending is 13 percent less than a $1.35 billion budget announced by Phillips in January. Expenditures of $1.17 billion for 1992 would be 16 percent lower than 1991 spending of $1.4 billion.

"Our 1993 capital expenditure budget reflects the strategic direction needed to maximize profits in the current business and economic environment," said Phillips Chairman C.J. "Pete" Silas in a prepared statement.

Phillips' drilling budget, or exploration spending, is projected at $138 million, a 34 percent increase from estimated 1992 exploration expenditures of $103 million.

Like other major U.S. oil and gas companies, Phillips' drilling budget shows higher spending levels overseas than domestically _ a trend that surfaced in about 1990. Phillips is ranked 11th in oil reserves and 12th in natural gas reserves among 19 international majors, according to a survey by Arthur Andersen Co. of Houston.

Phillips' domestic exploration is budgeted for 1993 at $61 million, a 22 percent increase from an estimated $50 million in 1992.

Domestic drilling accounts for 44 percent of the 1993 exploration budget, compared with 48.5 percent of the 1992 budget. In 1991, domestic exploration accounted for 53 percent of Phillips' budget, according to the company's annual report.

Foreign exploration is budgeted for 1993 at $77 million, a 45 percent gain from an estimated $53 million in 1992. Foreign drilling accounts for 56 percent of the 1993 exploration budget, compared with 51.5 percent of the 1992 budget.

Exploration and production spending together is planned at $800 million for 1993, a 37 percent increase from an estimated $583 million in 1992.

Production expenses of $662 million are projected by Phillips for 1993, a 38 percent gain from an estimated $480 in 1992. …

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