Weak commodity prices hit major producers hard in the thirdquarter. Texaco, Amoco, and Exxon all reported sharply lowerresults compared to third quarter 1997. All blamed, for the mostpart, lower commodity prices.

Texaco said net income plunged 56% for the third quarter. Thecompany reported earnings of $215 million, 38 cents/share, comparedto $490 million, or 90 cents/share in 3Q97. Amoco had a similarexperience, reporting third-quarter earnings down 54% to $295million, or 31 cents/share, assuming dilution. That compared withthird quarter 1997 earnings of $635 million, or 64 cents/share. AndExxon reported third quarter net income down 23% to $1,400 million,from a record $1,820 million in the third quarter of 1997. On aper-share basis, Exxon’s net income declined 22% to 58 cents in thethird quarter, reflecting an ongoing share repurchase program.

For the third quarter, Texaco average gas prices were $1.89/Mcf;11% lower than the 1997 period. Average realized crude oil pricesfor the third quarter were $10.06 per barrel; 39% lower than the1997 period. Texaco domestic net gas production available for saledropped to 1,641 MMcf/d from 1,722 MMcf/d in the third quarter of1997.

Amoco’s U.S. gas prices averaged about $1.70/Mcf during thequarter, about 10 cents/Mcf below the third quarter of 1997.Amoco’s average crude oil prices decreased about $5.00/barrel andaveraged about $12.50/barrel for the quarter. Gas productiondecreased 10% compared with the third quarter of 1997, reflectingnormal field declines and dispositions. Crude oil and gas liquids(NGL) production declined seven percent from a year ago. Amoco’sCanadian gas prices for the third quarter averaged about $1.30/Mcf,10 cents/Mcf higher than the same period in 1997. Amoco’s averagecrude oil prices in Canada were $5.00/barrel below the thirdquarter of 1997, and averaged about $9.00/barrel for the quarter.

Exxon “crude oil prices continued to be weak and on average wereat their lowest level since the third quarter of 1986,” saidChairman Lee R. Raymond. “Exxon’s U.S. and European natural gasrealizations also declined to the lowest quarterly level in nearlythree years. Natural gas production was up slightly from the thirdquarter of 1997, while liquids volumes were flat.”

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