performance review

(Cdn$ millions, except share and production data) 2007 2006 2005 2004 2003
Total Cash Flow from Operations
 3,458 2,669 2,403 1,942 1,795
Highlights
          
Net Sales 1 5,583 3,936 3,932 2,944 2,632
Cash Flow from Operations 2 3,458 2,669 2,403 1,942 1,795
Per Common Share ($/share) 6.56 5.09 4.62 3.78 3.63
Net Income 1,086 601 1,140 793 578
Per Common Share ($/share) 2.06 1.15 2.19 1.54 1.17
Capital Expenditures 3,401 3,330 2,638 1,681 1,494
Business Acquisitions – 78 – 2,583 –
Dispositions 4 27 911 34 293
Production 3,4
          
Production Before Royalties (mboe/d) 254 212 242 250 269
Production After Royalties (mboe/d) 207 156 173 174 185
Financial Position
          
Working Capital 412 476 29 40 1,399
Property, Plant and Equipment, Net 12,498 11,739 9,594 8,643 4,550
Total Assets 18,075 17,156 14,590 12,383 7,717
Net Debt 5 4,404 4,730 3,639 4,285 1,430
Long-Term Debt 4,610 4,673 3,687 4,259 3,089
Shareholders’ Equity 5,610 4,636 3,996 2,867 2,075
Shares and Dividends
          
Common Shares Outstanding (millions) 528.3 525.0 522.2 516.8 502.4
Number of Registered Common Shareholders 1,569 1,454 1,294 1,329 1,420
Closing Common Share Price (TSX) (Cdn$/share) 32.10 32.10 27.71 12.18 11.73
Dividends Declared per Common Share (Cdn$/share) 0.10 0.10 0.10 0.10 0.08
Cash Flow from Operations 2
          
Oil and Gas          
Yemen 664 877 929 581 530
Canada 179 229 397 426 490
United States 480 573 667 700 623
United Kingdom 2,101 477 284 30 –
Other Countries 87 94 48 57 64
Marketing 73 432 138 100 126
Syncrude 319 240 223 183 105
  3,903 2,922 2,686 2,077 1,938
Chemicals 90 83 95 82 74
  3,993 3,005 2,781 2,159 2,012
Interest and Other Corporate Items (350) (254) (335) (196) (208)
Income Taxes (185) (82) (43) (21) (9)
  1. Represents net sales from continuing operations.
  2. Cash flow from operations is defined as cash generated from operating activities before changes in non-cash working capital and other.
  3. Production is Nexen’s working interest share and includes our share of production from Syncrude.
  4. Natural gas is converted at 6 mcf per equivalent barrel of oil.
  5. Net Debt is defined as long-term debt and short-term borrowings less cash and cash equivalents.
  2007 2006 2005 2004 2003
Company-Wide Oil and Gas
 43.22 32.75 30.57 22.66 19.24
Production Before Royalties
          
Crude Oil and NGLs (mbbls/d)          
  Yemen 71.6 92.9 112.7 107.3 116.8
  Canada 17.1 20.0 29.2 36.2 46.3
  United States 16.4 17.0 22.2 30.0 28.3
  United Kingdom 81.2 16.9 12.6 1.5 –
  Australia – – – 2.7 6.1
  Other Countries 6.2 6.3 5.6 5.3 5.4
  Syncrude 22.1 18.7 15.5 17.2 15.3
  214.6 171.8 197.8 200.2 218.2
Natural Gas (mmcf/d)          
  Canada 118 108 124 146 158
  United States 101 111 116 148 145
  United Kingdom 16 20 23 3 –
  235 239 263 297 303
Total Production Before Royalties (mboe/d)
 254 212 242 250 269
Production After Royalties
          
Crude Oil and NGLs (mbbls/d)          
  Yemen 39.8 51.8 60.6 53.5 57.5
  Canada 13.4 15.8 22.6 28.2 35.4
  United States 14.5 15.0 19.6 26.5 25.0
  United Kingdom 81.2 16.9 12.6 1.5 –
  Australia – – – 2.5 5.6
  Other Countries 5.7 5.7 5.1 4.7 4.6
  Syncrude 18.8 16.9 15.3 16.6 15.2
  173.4 122.1 135.8 133.5 143.3
Natural Gas (mmcf/d)          
  Canada 98 91 101 115 125
  United States 86 94 99 126 122
  United Kingdom 16 20 23 3 –
  200 205 223 244 247
Total Production After Royalties (mboe/d)
 207 156 173 174 185
Oil and Gas Cash Netback Before Royalties 1 ($/boe)
          
  Producing Assets          
  Yemen 25.52 26.35 22.56 14.99 12.58
  Canada 20.07 22.87 25.46 21.24 19.46
  United States 42.28 40.42 45.85 35.35 32.48
  United Kingdom 67.85 55.53 42.93 39.19 –
  Australia – – – 14.28 21.10
  Syncrude 41.94 37.86 43.34 31.07 20.92
  Other Countries 61.94 57.71 49.18 35.82 25.06
  1. Defined as average sales price less royalties and other, operating costs and in-country taxes in Yemen. Calculation details can be found in the Statistical Supplement on our website.

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