HOUSTON--(BUSINESS WIRE)--July 21, 2004--Burlington Resources Inc. (NYSE:BR)(TSX:B) today reported estimated earnings of $379 million, or $0.96 per diluted share, during the second quarter of 2004, a 36 percent increase over the $278 million, or $0.69 per diluted share, earned during the second quarter of 2003. The per-share results reflect the 2-for-1 split of the company's common stock on June 1, 2004. The higher quarterly earnings were attributable to increases in production as well as commodity prices. The company's total production increased 10 percent to 2,758 million cubic feet of natural gas equivalent per day (MMcfed), from 2,502 MMcfed during the prior year's quarter. Net cash provided by operating activities increased to $802 million from $733 million during the prior year's quarter. Discretionary cash flow(1) increased to $825 million from $596 million during the prior year's quarter. In addition, at the end of the second quarter Burlington's balance sheet included more than $1.3 billion in cash and cash equivalents, a $282 million increase during the quarter. Share repurchases during the quarter totaled 3.1 million shares for $105 million at an average cost of $33.93 per share. This brings the cumulative number of shares acquired since the company resumed share repurchases in late 2000 to approximately 53.6 million shares for $1.25 billion, or an average cost of $23.31 per share. These share amounts reflect the recent stock split. "As our strong quarterly performance confirms, we are making exceptional financial and operational progress, driven by our ability to increase domestic and international production during a time of extremely favorable commodity prices," said Bobby S. Shackouls, chairman, president and chief executive officer. "During the months ahead, we look forward to the start-up of the Rivers Fields in the East Irish Sea, to further production growth in a number of areas, and to continuing our emphasis on cost control." The company's natural gas production during the second quarter increased 1 percent to 1,899 million cubic feet per day (MMcfd), from 1,879 MMcfd during the prior year's quarter. Natural gas liquids (NGLs) production was 59.0 thousand barrels per day (Mbd), compared to 63.1 Mbd during the prior year's quarter. Crude oil production increased 107 percent to 84.2 Mbd, from 40.7 Mbd during the prior year's quarter. Natural gas volume increases were achieved in the Madden Field with completion of gathering line repairs, as well as in Canada's Deep Basin and Whitecourt areas, South Louisiana, the Fort Worth Basin of Texas and the CLAM properties in the North Sea. The increases were partially offset by declines in Canada's O'Chiese and Viking-Kinsella areas, and in the East Irish Sea. Higher crude oil volumes were achieved during the quarter from the Cedar Creek Anticline in the Williston Basin in the U.S., and from fields in Algeria, offshore China and Ecuador. Canadian natural gas liquids volumes declined due to an unanticipated six-week shutdown of an industry pipeline that serves key producing areas. During the quarter Burlington also made progress on advancing the evaluation of several future unconventional resource plays in the Brassey Area of Canada's Deep Basin, the Bossier Trend in East Texas and the Bakken Shale trend in the Montana portion of the Williston Basin. Burlington's price realizations for natural gas during the second quarter were $5.40 per Mcf, compared to $4.96 per Mcf during the same quarter in 2003. Price realizations for NGLs were $23.81 per barrel, compared to $18.53 per barrel during the prior year's quarter. Crude oil price realizations were $34.62 per barrel, compared to $27.53 per barrel during the prior year's quarter. 2004 Outlook Production -- Burlington expects volume growth for the remainder of 2004 compared to 2003, as a result of anticipated increases in both North American and Other International production. The guidance breakdown by geographic region and product follows: