Houston-based independent Burlington Resources Inc. last week said it would reallocate some of its overseas capital into North American operations this year, with 7% more in U.S. operations and 5% more in Canada. The company also created an Office of the Chairman, which will include its current CEO along with the COO and CFO.

Capital spending will remain at the same level as last year, about $1.5 billion. Nearly 36% will be for the United States, up from 29% in 2003, while Canada will move to 50% of the spending, up 5% from last year. The remaining 14%, which is decreased from 26% in 2003, will be spent overseas.

The new spending philosophy has resulted from the completion last year of several overseas projects and the expected ramp up of other projects this year, which in turn will boost oil and gas production and churn earnings growth, according to the company. The independent expects to reach the upper end of its 3-8% annual production growth targets also this year.

Burlington’s fourth quarter net income was $404 million ($2.04/share), considerably higher than the same period of 2002, when fourth quarter earnings were $157 million (78 cents).

In other news last week, Burlington created an Office of the Chairman, which will include CEO Bobby S. Shackouls, CFO Steven J. Shapiro and COO Randy L. Limbacher. The Chairman’s office will be responsible for setting strategic direction and guiding the execution of the company’s goals to achieve both volumetric growth and sector-leading financial returns. Limbacher remains responsible for all day-to-day production and exploration operations. Shapiro continues key responsibility for the company’s financial activities. Both also were elected to Burlington’s board of directors.

“The Office of the Chairman structure visibly aligns Burlington’s strong operations and financial expertise, while recognizing the significant contribution that Randy and Steve have made to our company’s success in recent years,” said Shackouls. “I welcome the collaboration and leadership of my colleagues as we move Burlington toward a bright future.”

Limbacher has served as executive vice president and COO since 2002. He joined Burlington in 1985 and served in positions of increasing responsibility throughout the company’s operating areas. Shapiro has served as executive vice president and CFO since 2002. He joined Burlington in 2000 after serving as CFO at Vastar Resources Inc. Previously, he spent 16 years with ARCO.

Burlington also announced the election of Barbara T. Alexander and James A. Runde to its board of directors. The board now consists of 15 members, with 12 independent members and three from Burlington.

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