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Burlington Resources continues record quarterly performance and updates capital investment plans.

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M2 PRESSWIRE-29 July 2005-Burlington Resources Inc: Burlington Resources continues record quarterly performance and updates capital investment plans(C)1994-2005 M2 COMMUNICATIONS LTD

RDATE:28072005

HOUSTON - Burlington Resources Inc. (NYSE:BR - News) today reported a fourth consecutive quarterly earnings record, with estimated income of $537 million during the second quarter of 2005, compared to $379 million during the same quarter of 2004. Burlington earned $1.40 per diluted share, up 46 percent from the $0.96 per diluted share earned during the prior year's quarter. The increase was attributable to higher commodity prices, growth in production and accelerated share repurchases.

Records were achieved in a number of key financial performance measures. Net cash provided by operating activities increased to $974 million from $802 million, and discretionary cash flow(1) increased to $977 million from $825 million during the prior year's quarter. Burlington also achieved an annualized return on capital employed(1) of 26.4 percent during the current year's second quarter.

Total production increased 4 percent, or 8 percent on a per-share basis, to 2,879 million cubic feet of natural gas equivalent per day (MMcfed), an all-time quarterly volume record, compared to 2,758 MMcfed during the second quarter of 2004. Higher production was achieved from Canada, while in the U.S. increases came from the Bossier, Cedar Creek Anticline, Bakken and South Louisiana programs. Volumes also increased from Algeria's MLN Field. Production decreased from the San Juan Basin due to unscheduled maintenance performed by pipeline companies serving the area and the lingering impact of unfavorable weather earlier in the year.

"Burlington continues delivering what we believe is consistent and peer-leading performance during this exciting but challenging era for our industry," said Bobby S. Shackouls, chairman, president and chief executive officer. "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."

In addition, Burlington announced the approval by its board of directors of a 20 percent 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.

The company further disclosed that it has recently completed...

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