JPMorgan - KASE

attributable to the $28.9 million decrease in net income, offset in part by a $4.5 million increase
in depletion and depreciation and a $15.3 million increase in other non-cash items. Cash flow
increased $15.2 million for the year ended December 31, 2001 as compared to the year ended
December 31, 2000. This increase was primarily attributable to the $14.4 million increase in net
income, and a $19.6 million increase in depletion and depreciation, offset by a $18.8 million
decrease in other non-cash items. Cash flow increased $162.5 million for the year ended
December 31, 2000 as compared to the year ended December 31, 1999 primarily due to the
$146.4 million increase in net income, a $11.8 million increase in depletion and depreciation and
a $4.3 million increase in other non-cash items. Our cash flow from operating activities (cash flow
after giving effect to changes in non-cash operating working capital items) was $126.7 million in
the nine months ended September 30, 2002, compared to $119.8 million in the comparable
period in 2001, $146.3 million in fiscal 2001, $211.0 million in fiscal 2000 and $45.4 million in
1999.
Our cash provided by financing activities was $35.2 million in the nine months ended
September 30, 2002 as compared to $2.0 million in fiscal 2001, and our cash used in financing
activities was $29.7 million in the nine months ended September 30, 2001, $144.8 million in fiscal
2000 and $1.0 million in fiscal 1999.
Our cash used for investing activities was $64.4 million in the nine months ended September 30, 2002,
as compared to $50.2 million in the comparable period of 2001, and cash provided by investing
activities was $142.7 million in fiscal 2001, $37.7 million in fiscal 2000 and $15.2 million in fiscal 1999.
Our net working capital was $168.8 million as of September 30, 2002, $61.4 million as of
December 31, 2001 and $33.8 million as of December 31, 2000, and we had negative working
capital of $176,396 as of December 31, 1999. The increase in net working capital was attributable
to the increase in non-FCA sales, for which customers pay after the crude oil is delivered and we
pay the transportation charges in advance.
Capital Expenditures
The following table sets forth a breakdown of capital expenditures in 2001 and 2000, and in the
nine months ended September 30, 2002 and comparable period of 2001 ($000’s).
Nine Months Ended
September 30, 2002
Nine Months Ended
September 30, 2001 2001 2000 1999
Upstream
Development wells ......... 10,860 5,681 10,650 3,045 10,775
Facilities and equipment ..... 67,090 41,208 79,330 7,287 2,058
Exploration ................ 16,931 5,233 10,279 4,529 2,485
Downstream
Refinery Health, Safety &
Environment(“HS&E”) .... 627 294 796 233 —
Refinerysustaining ......... 877 1,342 5,046 3,244 —
Refineryreturnprojects ..... 1,920 701 3,013 2,362 —
Marketing&other .......... 3,037 356 477 927 —
Corporate 217 400 616 — —
Total capital expenditures . . . 101,559 55,215 110,207 21,627 15,318
During 2003, we expect to continue to incur capital expenditures in respect of projects that were
initiated in 2002, including:
Š continued development of the Kumkol South and South Kumkol fields;
Š construction of the QAM pipeline;
Š development of the QAM fields;
Š exploration, including the drilling of deep wells in license 260 D1;
Š further development of the fields within our joint ventures;
Š HS&E projects for the refinery;
Š projects designed to increase the efficiency of the refinery; and
52