Part II
Item 6.
Selected Financial Data
The following table shows selected financial information for each of the years in the five-year period ended December 31, 2007. Significant producing property acquisitions in each of the years presented affect the comparability of year-to-year financial and operating data. See Items 1 and 2, Business and Properties, “Acquisitions.” All weighted average shares and per share data have been adjusted for the five-for-four stock split effected in December 2007, the four-for-three stock split effected in March 2005, the five-for-four stock split effected in March 2004 and the four-for-three stock split effected in March 2003. This information should be read in conjunction with Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations and the Consolidated Financial Statements at Item 15(a).
(in millions except production, |
2007 |
2006 |
2005 |
2004 |
2003 |
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Consolidated Income |
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| Revenues: | ||||||||||
| Gas and natural gas liquids | $ | 4,214 | $ | 3,490 | $ | 2,787 | $ | 1,613 | $ | 1,040 |
| Oil and condensate | 1,204 | 1,002 | 670 | 319 | 135 | |||||
| Gas gathering, processing and marketing | 100 | 86 | 56 | 18 | 13 | |||||
| Other | (5) | (2) | 6 | (2) | 1 | |||||
| Total Revenues | $ | 5,513 | $ | 4,576 | $ | 3,519 | $ | 1,948 | $ | 1,189 |
| Net Income | $ | 1,691 (a) | $ | 1,860 (b) | $ | 1,152 (c) | $ | 508 (d) | $ | 288 (e) |
| Earnings per common share: | ||||||||||
| Basic | $ | 3.58 | $ | 4.08 | $ | 2.57 | $ | 1.22 | $ | 0.77 (f) |
| Diluted | $ | 3.53 | $ | 4.02 | $ | 2.52 | $ | 1.21 | $ | 0.76 (f) |
| Weighted average common shares outstanding | 471.9 | 456.1 | 448.1 | 416.1 | 374.6 | |||||
| Cash dividends declared per common share | $ | 0.408 | $ | 0.252 (g) | $ | 0.180 | $ | 0.072 | $ | 0.019 (h) |
Consolidated Statement |
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| Cash provided (used) by: | ||||||||||
| Operating activities | $ | 3,639 | $ | 2,859 | $ | 2,094 | $ | 1,217 | $ | 794 |
| Investing activities | $ | (7,345) | $ | (3,036) | $ | (2,908) | $ | (2,518) | $ | (1,135) |
| Financing activities | $ | 3,701 | $ | 180 | $ | 806 | $ | 1,304 | $ | 333 |
Consolidated Balance Sheet Data |
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| Property and equipment, net | $ | 17,200 | $ | 10,824 | $ | 8,508 | $ | 5,624 | $ | 3,312 |
| Total assets | $ | 18,922 | $ | 12,885 | $ | 9,857 | $ | 6,110 | $ | 3,611 |
| Long-term debt | $ | 6,320 | $ | 3,451 | $ | 3,109 | $ | 2,043 | $ | 1,252 |
| Stockholders’ equity | $ | 7,941 | $ | 5,865 | $ | 4,209 | $ | 2,599 | $ | 1,466 |
Operating Data |
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| Average daily production: | ||||||||||
| Gas (Mcf) | 1,457,802 | 1,186,330 | 1,033,143 | 834,572 | 668,436 | |||||
| Natural gas liquids (Bbls) | 13,545 | 11,854 | 10,445 | 7,484 | 6,463 | |||||
| Oil (Bbls) | 47,047 | 45,041 | 39,051 | 22,696 | 12,943 | |||||
| Mcfe | 1,821,353 | 1,527,705 | 1,330,121 | 1,015,654 | 784,877 | |||||
| Average sales price: | ||||||||||
| Gas (per Mcf) | $ | 7.50 | $ | 7.69 | $ | 7.04 | $ | 5.04 | $ | 4.07 |
| Natural gas liquids (per Bbl) | $ | 45.37 | $ | 37.03 | $ | 34.10 | $ | 26.44 | $ | 19.99 |
| Oil (per Bbl) | $ | 70.08 | $ | 60.96 | $ | 47.03 | $ | 38.38 | $ | 28.59 |
| Production expense (per Mcfe) | $ | 0.93 | $ | 0.88 | $ | 0.84 | $ | 0.66 | $ | 0.58 |
| Taxes, transportation and other expense (per Mcfe) | $ | 0.67 | $ | 0.67 | $ | 0.63 | $ | 0.47 | $ | 0.37 |
| Proved reserves: | ||||||||||
| Gas (Mcf) | 9,441.1 | 6,944.2 | 6,085.6 | 4,714.5 | 3,644.2 | |||||
| Natural gas liquids (Bbls) | 66.8 | 53.0 | 47.4 | 38.5 | 34.7 | |||||
| Oil (Bbls) | 241.2 | 214.4 | 208.7 | 152.5 | 55.4 | |||||
| Mcfe | 11,289.0 | 8,548.6 | 7,622.2 | 5,860.3 | 4,184.9 | |||||
Other Data |
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| Ratio of earnings to fixed charges (i) | 9.6 | 15.2 | 11.7 | 8.9 | 6.9 | |||||
(a) Includes pre-tax effects of a $43 million non-cash derivative fair value loss. (b) Includes pre-tax effects of a gain on the distribution of Hugoton Royalty Trust units of $469 million, income tax expense related to enactment of a new State of Texas margin tax of $34 million and a $39 million non-cash derivative fair value gain. (c) Includes pre-tax effects of a $39 million non-cash derivative fair value gain, non-cash performance award compensation of $34 million, and a gain of $10 million on the exchange of producing properties. (d) Includes pre-tax effects of a $6 million non-cash derivative fair value loss, stock-based incentive compensation of $89 million and special bonuses totaling $12 million related to the ChevronTexaco and ExxonMobil acquisitions. Stock-based incentive compensation includes cash compensation of $22 million related to cash-equivalent performance shares. (e) Includes pre-tax effects of a $10 million non-cash derivative fair value loss, a non-cash contingency gain of $2 million, non-cash performance award compensation of $53 million, a $10 million loss on extinguishment of debt, a $16 million non-cash gain on the distribution of Cross Timbers Royalty Trust units, and a $2 million after-tax gain on adoption of the new accounting standard for asset retirement obligation. (f) Before cumulative effect of accounting change, earnings per share were $0.76 basic and $0.75 diluted. (g) Excludes the May 2006 distribution of all of the Hugoton Royalty Trust units owned by the Company to its stockholders as a dividend with a market value of approximately $1.35 per common share. (h) Excludes the September 2003 distribution of all of the Cross Timbers Royalty Trust units owned by the Company to its stockholders as a dividend with a market value of approximately $0.07 per common share. (i) For purposes of calculating this ratio, earnings are before income tax and fixed charges. Fixed charges include interest costs and the portion of rentals considered to be representative of the interest factor. |
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