Exhibit 1 Venezuelan Macroeconomic Data: 1970-1996 Real GDP Growth Per Capita GDP Growth Government Surplus / GDPa Total Debt Stock / GDP Oil Exports / Total Exports Oil Exports / GDP 1970 7.30% 3.70% -0.90% 6.90% 89.00% 17.20% 1971 2.4 -1 0.5 12.7 92.2 19 1972 2.5 -1 -0.2 15.2 91.4 17.3 1973 6.1 2.5 1.6 14 88.6 21.6 1974 5.2 1.7 2.4 8.6 95.2 33.4 1975 5.1 1.5 0.6 6.8 94.6 25.6 1976 8.3 4.6 0.5 13.3 94.2 23.6 1977 6.2 2.5 -4.4 25.1 95.4 21.3 1978 2.2 -1.3 -3.6 35.7 95.1 18.8 1979 1.3 -2 2.1 42.2 95.2 23.9 1980 -2.5 -5.5 0 42 94.9 26.2 1981 -0.2 -3 2.2 41 94.6 24.3 1982 0.8 -1.8 -2.1 40.2 94.7 19.5 1983 -5.2 -7.5 -0.6 48.1 91.3 17.4 1984 -0.5 -2.9 2.8 63.8 87.7 21 1985 1.1 -1.4 2 59 82.6 17.3 1986 6.2 3.5 -0.4 56.4 69.2 10.9 1987 4.5 1.7 -1.7 73.8 81.8 14.9 1988 6.2 3.4 -6.1 57.5 76.4 13.5 1989 -8.5 -10.8 -1.1 75.6 74.9 23.4 1990 7.5 4.9 -2.1 68.3 80 29.2 1991 10.1 7.5 -1.4 63.8 81.1 23.1 1992 7.4 4.9 -3.8 62.4 79 18.7 1993 -0.6 -2.8 -2.5 62.2 74.7 18 1994 -2.5 -4.6 -6.8 62.6 72.7 20.2 1995 3.7 1.5 -4.6 46 74.4 17.9 1996 -0.4 -2.5 0.2 49.9 80.4 26.7
Sources: Inter-American Development Bank; and International Financial Statistics , International Monetary Fund. a Negative values signify Government Deficit/GDP.
b The interest rates provided are yields to maturity on long-term Venezuelan government bonds.
c The exchange rates provided are the official bolivar/US dollar exchange rates determined by the Venezuelan government. Prior to 1989 and between 1994 and early 1996, the government fixed the exchange rate. Between 1989 and 1994 and after early 1996, the government allowed the bolivar to float freely against the US dollar.
Unemployment Rate Inflation Rate Interest Ratesb Exchange Ratec 7.80% 2.50% ... 4.45 ... 3.2 ... 4.35 ... 2.8 ... 4.35 ... 4.1 ... 4.285 7.6 8.3 ... 4.285 8.3 10.3 ... 4.285 6.8 7.6 ... 4.293 5.5 7.8 ... 4.293 5.1 7.1 ... 4.293 5.8 12.4 ... 4.293 6.6 21.5 ... 4.293 6.8 16.2 ... 4.293 7.8 9.6 ... 4.293 11.2 6.3 ... 4.3 14.3 12.2 13.15% 7.5 14.3 11.4 12.55 7.5 12.1 11.5 12.07 14.5 9.9 28.1 13.49 14.5 7.9 29.3 14.86 14.5 9.7 84.7 17.32 43.079 11 40.6 20.06 50.38 10.1 34.2 27.14 61.554 8.1 31.4 31.66 79.45 6.8 38.1 41.03 105.64 8.9 60.8 54.73 170 10.9 59.9 53.38 290 12.3 99.9 49.09 476.5
Exhibit 2 DuPont and PDVSA Balance Sheets (US dollars in millions): 1995-1996
1996 1995 1996 1995
Assets
Cash $1,319 $1,455 $2,745 $464
Accounts and notes receivable 5,193 4,912 3,429 3,226
Inventory 3,706 3,737 1,740 1,551
Prepaid expenses 297 276 1,124 729
Deferred income taxes 588 575 508 429
Total current assets $11,103 $10,955 $9,546 $6,399
Property, plant, and equipment $21,213 $21,341 $32,957 $30,774
Investment in affiliates 2,278 1,846 1,863 1,899
Other assets 3,393 3,170 1,036 853
Total assets $37,987 $37,312 $45,402 $39,925
Liabilities and equity
Accounts payable $2,757 $2,636 $2,033 $1,672
Current portion of long-term debt 300 551 1,137 1,074 Short-term debt and lease obligations 3,610 5,606 ---
---Income taxes 526 470 2,616 351
Other accrued liabilities 3,794 3,468 1,156 952
Total current liabilities $10,987 $12,731 $6,942 $4,049
Long-term debt $4,983 $5,572 $4,668 $4,933
Capital lease obligations 104 106 455 531
Deferred income taxes 2,133 1,783 19 313
Other liabilities 8,451 8,454 1,166 1,168
Total liabilities $26,658 $28,646 $13,250 $10,994
Minority interests $620 $230 $354 $271
Total stockholders' equity 10,709 8,436 31,798 28,660
Total liabilities and equity $37,987 $37,312 $45,402 $39,925
Sources: DuPont 1996 Annual Report; and PDVSA 1996 Form 20-F.
Exhibit 3 DuPont and PDVSA Income Statements (US dollars in millions): 1995-1996
1996 1995 1996 1995
Sales $ 43,810 $ 42,163 $ 32,786 $ 25,050
Other income $ 1,340 $ 1,059 $ 1,069 $ 991
Total income $ 45,150 $ 43,222 $ 33,855 $ 26,041
Cost of goods sold $ 25,144 $ 23,363 $ 15,720 $ 14,061 Selling, general, and administrative expenses $ 2,856 $ 2,995 $ 967 $ 1,163 Depreciation, depletion, and amortization $ 2,621 $ 2,722 $ 2,749 $ 2,400 Exploration expenses $ 1,436 $ 1,398 $ 142 $ 118 Interest and debt expense $ 713 $ 758 $ 343 $ 421 Taxes other than on income $ 6,399 $ 6,596 $ 3,203 $ 2,513 Other expense (income), net --- --- $ 79 $ (354) Equity earnings of affiliates --- --- $ (89) $ (132) Minority interests --- --- $ 19 $ 23
Total costs and expenses $ 39,169 $ 37,832 $ 23,133 $ 20,213 Earnings before income taxes $ 5,981 $ 5,390 $ 10,722 $ 5,828
Provision for income taxes $ (2,345) $ (2,097) $ (6,227) $ (2,455)
Net income $ 3,636 $ 3,293 $ 4,495 $ 3,373 Earnings per share of common stock $ 6.47 $ 5.61
Average number of common shares (millions) $ 560.7 $ 585.1
Year-end stock price $ 34.94 $ 47.06
Sources: DuPont 1996 Annual Report; and PDVSA 1996 Form 20-F.
Exhibit 4 Conoco and Maraven Financial Information (U.S. Dollars in millions): 1995-1996
1996 1995 1996 1995
Sales $ 20,579 $ 17,958 $ 5,503 $ 4,073
Operating profit $ 1,818 $ 1,257 $ 3,574 $ 1,924 Provision for income taxes $ (933) $ (660) na na Equity in earnings of affiliates $ (25) $ 22 ---
---After-tax operating income $ 860 $ 619 $ 1,070 $ (16)
Identifiable assets $ 13,018 $ 12,634 $ 10,814 $ 10,093 Depreciation, depletion, and amortization $ 1,128 $ 1,111 $ 940 $ 770 Capital expenditures $ 1,616 $ 1,714 $ 612 $ 1,871
DuPont PDVSA
Exhibit 7 Sources and Uses of Funds (US dollars in thousands): 1996-2000
1996 1997 1998 1999 2000
Uses
Capital Expenditures
Crude Oil Production $ 11,995 $ 191,849 $ 151,141 $ 77,092 $ 16,702 Crude Oil Pipeline $ 655 $ 170,512 $ 45,121 $ - $ -Upgrader & Loading Facilitya $ 14,345 $ 243,305 $ 510,987 $ 230,306 $ 67,912 Upstream Contingency $ - $ - $ - $ - $ 37,925 Total Capex $ 26,994 $ 605,666 $ 707,249 $ 307,399 $ 122,539
Other Costs
Deferred Development Costs $ 52,040 $ 23,328 $ 71,724 $ - $ -and Operating Expenditures
Initial Cash Balance $ - $ - $ 10,000 $ - $ -Financing Costs $ - $ 61,134 $ 86,816 $ 94,955 $ 111,556 Legal & Advisory Fees $ - $ 15,000 $ - $ - $ -Debt Service Reserve $ - $ - $ - $ - $ 80,865 Excess Cash Balance $ - $ 47,213 $ - $ - $ 195 Total Uses $ 79,035 $ 752,341 $ 875,789 $ 402,353 $ 315,155
Sources
Total Project Debt $ - $ 1,000,000 $ 24,299 $ 242,981 $ 182,720
Shareholder Funds
Initial Paid-in Capital $ 79,035 $ - $ - $ - $ -Additional Paid-in Capital $ - $ 1,986 $ 550,148 $ (1,576) $ (185,047) Operating Cash Flowb $ - $ 47,213 $ 4,484 $ 160,948 $ 317,481
Total Shareholder Funds $ 79,035 $ 49,199 $ 554,632 $ 159,373 $ 132,434
Total Sources $ 79,035 $ 1,049,199 $ 578,931 $ 402,353 $ 315,155
Source: Petrozuata Planning Documents. a Includes a $139 million contingency. b Includes interest income.
Total 448,780 $ 216,288 $ 1,066,854 $ 37,925 $ 1,769,847 $ 147,093 $ 10,000 $ 354,461 $ 15,000 $ 80,865 $ 47,408 $ 2,424,673 $ 1,450,000 $ 79,035 $ 365,511 $ 530,126 $ 974,673 $ 2,424,673 $
Exhibit 8 Oil and Gas Industry Comparables: 1996 (unless otherwise indicated)
S&P Rating Country Country Rating Debt to Value (%) OIL & GAS PROJECTS
Athabasca Oil Sands BBB Canada AA+ 26.80%
Canadian Oil Sands BBB+ Canada AA+ 22.9
YPF Sociedad Anonima BBB Argentina BBB- 34.8
Ras Laffan (2001) BBB+ Qatar BBB 62.7
Petrozuata (2001) ??? Venezuela B 60
INDEPENDENT OIL COMPANIES
Apache BBB US AAA 45.80%
Burlington Resources A- US AAA 37.9
Husky Oil BBB Canada AA+ 41.9
Noble Affiliates BBB US AAA 54.1
Norcen Energy Resources BBB Canada AA+ 49.6
Talisman Energy BBB+ Canada AA+ 30
INTEGRATED OIL COMPANIES
Amoco AAA US AAA 26.60%
Chevron AA US AAA 32
Exxon AAA US AAA 21
Mobil AA US AAA 32.7
Texaco A+ US AAA 39.3
Shell Canada AA Canada AA+ 20.6
PDVSA B Venezuela B 15.4
Pretax Interest Coverage (X)
EBITDA/Interest (X)
Operating Income as
a % of Revenue Revenues ($ millions)
8.15X 11.09X 32.30% $251.50 8.62 13.49 30.7 118.3 4.77 8.2 44 5,937.00 4.51 na 51.1 851.6 4.7 3.65 79.4 569.2 2.68X 5.85X 60.10% $976.00 3.7 6.56 62.6 1,293.00 2.66 5.02 39.7 1,272.90 4.49 10.72 46 878.3 1.49 4.99 42.2 1,257.30 4.54 10.24 59 1,182.90 13.08X 21.22X 18.90% $32,150.00 9.85 14.2 16.9 37,580.00 10.25 15.06 13.8 116,728.00 11.73 16.69 11.9 71,129.00 5.68 8.83 10.1 44,561.00 6.57 10.47 19.7 5,140.00 32.26 40.27 48.7 33,855.00
Exhibit 9 Credit Ratings for Selected Sovereign Foreign Currency Long-term Debta
Sovereign Dec. 1994 Dec. 1996 Dec. 1994 Dec. 1996 Sept. 1994 Sept. 1996
North America
Canada AA+ AA+ Aa1 Aa2 81.3 79.4
Mexico BB BB Baa1 Ba2 46.1 41.6
United States AAA AAA Aaa Aaa 90.8 90.7
Central America Costa Rica n/r n/r n/r n/r 30.3 33.9 Panama n/r n/r n/r n/r 24.4 28.5 South America Argentina BB- BB- B2 B1 37.3 38.9 Bolivia n/r n/r n/r n/r 21.4 25.4 Brazil B+ B+ B1 B1 30.3 38.3
Chile BBB+ A- Baa2 Baa1 54.9 61.2
Colombia n/r BBB- n/r Baa3 44.4 46.7
Ecuador n/r n/r n/r n/r 24.5 26.4
Peru n/r n/r n/r B3 21 30
Venezuela B+ B Ba2 Ba2 36 32
Source: Bloomberg; and “Country Credit Ratings,” Institutional Investor , March 1995 and September 1996.
a A foreign currency long-term debt rating is the rating agency’s assessment of each government’s capacity and willingness to repay its foreign currency denominated long-term debt according to the debt’s terms. n/r = not rated.
b The following table provides a guide S&P’s and Moody’s ratings. Note that between ratings categories, there are modifiers: S&P uses two (+ and -); and Moody’s uses three (1, 2, and 3), where 1 is the highest rank.
S&P Moody’s AAA Aaa Investment AA Aa Grade A A BBB Baa BB Ba Non-investment B B Grade CCC Caa CC Ca C C
c Institutional Investor’s “Country Credit Ratings” were based on a survey of 75 to 100 international banks. Bankers were asked to grade each country on a scale of 0 to 100, with 100 representing the least chance of default.
Exhibit 10a Petrozuata Equity Cash Flow Projections (US dollars in thousands) Dividends 1996 $12.25 $0 1997 12.56 0 ($61,134) 1998 12.87 78,524 -86,816 1999 13.19 429,059 -94,955 $1,576 2000 13.52 804,108 $317,481 -111,556 ($80,865) 185,047 2001 13.86 569,156 384,765 -160,922 1,614 225,457 2002 14.21 583,597 389,154 -157,694 1,614 233,074 2003 14.56 598,398 366,575 -154,466 -11,509 200,600 2004 14.93 613,568 401,552 -176,949 -5,700 218,903 2005 15.3 629,117 398,211 -188,009 -6,345 203,857 2006 15.68 645,052 433,477 -200,307 -550 232,620 2007 16.07 661,386 435,267 -201,204 -4,671 229,393 2008 16.47 678,126 438,118 -210,153 10,623 238,588 2009 16.89 695,283 373,182 -166,148 19,595 226,629 2010 17.31 712,869 371,469 -150,455 -4,135 216,878 2011 17.74 730,892 378,471 -158,377 -3,438 216,655 2012 18.19 749,365 387,428 -164,964 40,417 262,881 2013 18.64 768,299 328,978 -85,668 -933 242,378 2014 18.64 768,798 358,441 -87,403 -19,051 251,988 2015 18.64 769,309 391,545 -124,573 -6,498 260,474 2016 18.64 769,831 383,528 -137,103 4,468 250,893 2017 18.64 770,365 382,868 -68,691 62,038 376,215 2018 18.64 770,911 327,531 -6,653 0 320,878 2019 18.64 771,468 308,024 -6,653 0 301,370 2020 18.64 781,859 283,051 -6,653 0 276,398 2021 18.64 782,441 299,464 -6,653 0 292,810 2022 18.64 783,036 295,554 -81,653 3,327 217,227 2023 18.64 783,644 294,578 0 0 294,578 2024 18.64 784,266 289,656 289,656 2025 18.64 784,901 289,705 289,705 2026 18.64 785,550 278,074 278,074 2027 18.64 786,214 276,806 276,806 2028 18.64 786,891 274,449 274,449 2029 18.64 787,584 263,604 263,604 2030 18.64 788,291 247,540 247,540 2031 18.64 789,014 250,329 250,329 2032 18.64 789,753 242,937 242,937 2033 18.64 790,508 240,644 240,644 2034 18.64 791,279 226,196 226,196
Equity Cash Flows Year
Forecast Price of
Syncrude Total Revenue
Cash Available for Debt Service
(CADS) Total Debt Service
Cash Used for Debt Service Reserve Account
Investment ($79,035) $0 -1,986 1,000,000 -550,148 1,024,299 1,267,280 1,450,000 1,411,111 1,372,222 1,333,333 1,268,856 1,187,614 1,086,961 977,484 849,556 755,137 669,137 567,137 449,137 401,689 348,241 252,034 134,448 75,000 75,000 75,000 75,000 75,000 0 Total Debt Equity Cash Flows
Exhibit 10b Capital Markets Data (as of January 1997)
Government or Inter-bank Debt Yields
Corporate Bond Ratings
(U.S. Industrials) Yields
Federal Funds Rate 5.19% AAA 7.13%
3-month Treasury Bill 5.03 AA 7.21
3-month LIBOR 5.78 A 7.39
10-year Treasury Bond 6.56 BBB 7.7
30-year Treasury Bond 6.81 BB 8.69