Houston-based Burlington Resources Inc. marched forward in the second quarter, with a 42% gain in earnings and a record 4% increase in overall production volumes. The producer reported net earnings of $537 million ($1.40/share), ahead of $379 million (96 cents) for the same period a year ago, and revenue rose to $1.69 billion from $1.33 billion.

Thomson First Call analysts had pegged earnings to average $1.26/share on revenue of $1.6 billion.

Burlington averaged a record 2.88 Bcfe/d, compared with 2.76 Bcfe in 2Q2004. In the United States, Burlington’s natural gas production was 950 MMcf/d, up from 905 MMcf/d, while in Canada, production fell slightly to 830 MMcf/d from 834 MMcf/d a year earlier. Burlington credited higher production in Canada, while in the United States, increases came from the Bossier, Cedar Creek Anticline, Bakken and South Louisiana programs. Output declined in the San Juan Basin because of unscheduled maintenance performed by pipeline companies serving the area, as well as the lingering impact of unfavorable weather earlier this year.

“Burlington continues delivering what we believe is consistent and peer-leading performance during this exciting but challenging era for our industry,” said CEO Bobby S. Shackouls. “Our asset base of large, sustainable drilling programs is enabling us to achieve production growth. At the same time we are working to contain rising service costs, increasing our capital program to fund new opportunities for growth and executing a share repurchase and dividend program that is returning substantial value to our stockholders.”

To ensure production remains on the rise, Burlington announced that the board has approved a 20% increase in planned 2005 oil and natural gas capital investments to a total of $2.4 billion, excluding acquisitions. The incremental capital will fund additional exploration and development drilling throughout the company, as well as increased lease purchases in North America. It will also help meet rising industry service costs. However, the producer slightly narrowed its production guidance range for full-year 2005, with total worldwide production pegged at a range of 2.82-2.985 Bcfe/d.

Burlington also disclosed that it has recently completed or has pending contracts for three acquisitions totaling $200 million. All are in existing core areas of operations, it said, but it offered no other details. The transactions together with Burlington’s lease purchases during the first six months of 2005 represent an addition of more than 300,000 net acres of land with estimated net risked drilling inventory of approximately 0.8 Tcfe. At year-end 2004, Burlington’s total net risked drilling inventory stood at 7 Tcfe.

©Copyright 2005Intelligence Press Inc. All rights reserved. The preceding news reportmay not be republished or redistributed, in whole or in part, in anyform, without prior written consent of Intelligence Press, Inc.