Burlington Resources Inc. said Thursday that “higher commodity prices” helped the company report record estimated quarterly earnings of $471 million, or $1.21 per diluted share, during the first quarter of 2005, a 33% increase over the $354 million, or $0.89 per diluted share on a post-stock-split basis, earned during the first quarter of 2004.

Total production was stable at 2,846 MMcfe/d, compared to 2,849 MMcfe/d during 1Q2004. Natural gas production sagged slightly to 1,896 MMcf/d, compared to 1,953 MMcf/d during the prior year’s quarter. Natural gas liquids (NGLs) production increased 2% to 68.4 thousand b/d, from 66.9 thousand b/d during the prior year’s quarter.

Burlington said it benefited from higher commodity prices during the quarter, with price realizations for natural gas of $5.90/Mcf, compared to $5.31/Mcf during the same quarter in 2004. Price realizations for NGLs were $28.40/bbl, compared to $22.08/bbl during the prior year’s quarter. Crude oil price realizations were $47.57/bbl, compared to $29.57/bbl during the prior year’s quarter.

“Burlington delivered outstanding financial performance, while our large asset base enabled us to meet production expectations during a highly active quarter,” said CEO Bobby S. Shackouls. “We also met expectations on costs. While the entire industry faces increasing cost pressures, we have some natural advantages and remain focused on conducting our programs efficiently and effectively. At the same time, we are making progress on several projects that we expect to contribute to future growth.”

The company’s net cash provided by operating activities increased to $819 million from $742 million during the prior year’s quarter. Discretionary cash flow increased to $946 million, also a quarterly record, from $812 million during the prior year’s quarter. The quarter’s financial highlights included annualized return on capital employed of 23.5%, another quarterly record, according to Burlington.

Burlington said it met volume expectations, as North American production for the quarter increased 3% from the first quarter of 2004. The company attributed higher oil volumes in the East Lookout Butte, Cedar Hills South and Bakken programs in the Williston Basin and higher natural gas volumes from the Madden Field in Wyoming and the new Savell Field in the Bossier Trend in East Texas with overcoming the impact of weather-related shutdowns in the San Juan Basin.

Looking to full-year 2005, the company said its production guidance is unchanged,with total production of 2,800 to 3,000 MMcfe/d expected. For full-year 2005, Burlington anticipates natural gas production of 950-995 MMcf/d from the United States and 1,890-2,005 MMcf/d internationally.

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