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Media Release |
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Date: |
2004 |
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$69 |
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#912553 |
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<FILENAME>a2128865zex-99_1.txt
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
<Page>
[NEXEN LOGO]
MEDIA RELEASE
For immediate release
NEXEN INC. DELIVERS RECORD FINANCIAL RESULTS IN 2003
HIGHLIGHTS:
- 2003 CASH FLOW GROWS 34% TO $14.50 PER SHARE
- 2003 EARNINGS GROW 41% TO $4.84 PER SHARE
- NET DEBT AND PREFERRED SECURITIES REDUCED BY $758 MILLION DURING 2003
- PRODUCTION AFTER ROYALTIES GROWS 5% TO 185,000 EQUIVALENT BARRELS OF
DAILY PRODUCTION (BOE/D)
- BOARD OF DIRECTORS APPROVE LONG LAKE SYNTHETIC CRUDE OIL PROJECT
- NEW DISCOVERY AT DAWSON DEEP IN DEEP-WATER GULF OF MEXICO
- PRODUCTION STARTS AT GUNNISON IN DEEP-WATER GULF OF MEXICO
<Table>
<Caption>
THREE MONTHS ENDED TWELVE MONTHS ENDED
DECEMBER 31 DECEMBER 31
-------------------------------------------------------------------
(Cdn$ millions) 2003 2002 2003 2002
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Production (mboe/d)
Before Royalties 259 262 269 269
After Royalties 178 170 185 176
Net Sales 660 681 2,908 2,506
Cash Flow from Operations(1) 410 409 1,859 1,383
Per Common Share ($/share)(1) 3.17 3.18 14.50 10.71
Net Income (Loss) (56) 129 639 452
Per Common Share ($/share) (0.52) 0.96 4.84 3.34
Capital Expenditures 397 446 1,494 1,625
</Table>
(1) For reconciliation of this non-GAAP measure, see Cash Flow from Operations
on pg. 7
CALGARY, ALBERTA, FEBRUARY 12, 2004 - Nexen achieved record annual financial
results and significantly furthered our strategies during 2003. Attractive oil
and gas prices, strong production growth in the Gulf of Mexico, improving
margins on our production, and an outstanding contribution by our marketing
group fueled our financial results.
Following our annual reserve evaluation, we reduced our estimate of our
conventional Canadian proved reserves by 60 million boe and recorded an
after-tax impairment charge of $175 million ($1.40 per share) in the fourth
quarter of 2003. This resulted in a net loss of $0.52 per share in the fourth
quarter. Prior to this charge, net income was $0.88 per share. A detailed
analysis of the change in our reserves was previously communicated in our news
release dated February 3, 2004.
This charge had no impact on our cash flow. Cash flow for the fourth quarter was
$3.17 per share, our third-best fourth quarter ever.
We use the successful efforts method to account for our oil and gas operations.
This method is more conservative than full-cost accounting as impairment is
determined at the property level rather than the country level. At the
1
<Page>
country level, no impairment charge would have been required. The future
estimated cash flow from our conventional Canadian assets is approximately 2.5
times their related carrying value.
These revisions have no impact on our corporate production guidance for 2004.
"Our financial results reflect the overall improvement in the quality of our
assets brought about by the growth of our production in the Gulf of Mexico,"
said Charlie Fischer, Nexen's President and Chief Executive Officer. "Our
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