Newspaper article THE JOURNAL RECORD

Phillips Petroleum Posts Quarterly Loss Lower Crude Prices, Production Lead to Firm's $210 Million Loss

Newspaper article THE JOURNAL RECORD

Phillips Petroleum Posts Quarterly Loss Lower Crude Prices, Production Lead to Firm's $210 Million Loss

Article excerpt

BARTLESVILLE (JR) -- Phillips Petroleum lost $210 million in the fourth quarter as its crude prices and worldwide oil production tumbled, the company reported Monday.

Losses for the quarter amounted to 83 cents per diluted share, compared to year-ago earnings of $209 million, or 79 cents a share.

The net effect of special items in the quarter was $210 million, resulting in breakeven operating income. Operating income for the fourth quarter of 1997 was $203 million, or 77 cents per share. Revenues were $2.7 billion vs. $3.8 billion for the same quarter of 1997. "The deteriorating business environment in the oil industry has caused severe declines in prices and margins, resulting in a significant drop in Phillips' net operating results," said Wayne Allen, chairman and chief executive officer. Net income for all of 1998 was $237 million, or 91 cents a share, compared with $959 million, or $3.61 a share, for 1997. Annual revenues were $11.8 billion, down from $15.4 billion a year earlier. Net operating income for 1998 was $389 million, or $1.51 a share, compared with $911 million, or $3.46 a share in 1997. Allen said the average worldwide price for crude in the fourth quarter was $7.32 a barrel lower than the quarter one year ago. The average U.S. annual crude oil price was at its lowest level since 1978, he said. Phillips' oil production in the fourth quarter dropped 15 percent to 202,000 barrels daily while natural gas production declined 7 percent to 1.38 billion cubic feet daily. U.S. crude oil production for the quarter was 60,000 barrels per day, down from 67,000 for the fourth quarter of 1997. Crude oil production in the fourth quarter also included 86,000 barrels daily from Norway; 21,000 barrels daily from the United Kingdom; 16,000 barrels daily from Nigeria; 11,000 barrels daily from China; 7,000 barrels daily from Canada; and 1,000 barrels daily from Venezuela. Natural gas production for the quarter included 929 million cubic feet daily from the United States; 116 million cubic feet daily from Norway; 231 million cubic feet daily from the United Kingdom; and 105 million cubic feet daily from Canada. …

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