-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, O6dAy9ZW09+w5WTgJN6QmYVOHpvDVFFu+yo5Q5JOrraCine7f3BUGjQBjoMBoH8/ CsQI8W32QZU26plmiVzLeQ== 0000950134-97-005980.txt : 19970813 0000950134-97-005980.hdr.sgml : 19970813 ACCESSION NUMBER: 0000950134-97-005980 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19970630 FILED AS OF DATE: 19970812 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: BRIGHAM EXPLORATION CO CENTRAL INDEX KEY: 0001034755 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] IRS NUMBER: 752692967 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-22433 FILM NUMBER: 97657469 BUSINESS ADDRESS: STREET 1: 5949 SHERRY LN, STE 1616 CITY: DALLAS STATE: TX ZIP: 75225 BUSINESS PHONE: 2143609182 10-Q 1 FORM 10-Q PERIOD END JUNE 30, 1997 1 ================================================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q [X] QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 1997 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________________ to ____________________ Commission File Number 000-22433 BRIGHAM EXPLORATION COMPANY (Exact name of registrant as specified in its charter) Delaware 1311 75-2692967 (State of other jurisdiction (Primary Standard Industrial (I.R.S. Employer of incorporation or organization) Classification Code Number) Identification Number)
6300 Bridgepoint Parkway Bldg. 2, Suite 500 Austin, Texas 78730 (512) 427-3300 (Name, address, including zip code, and telephone number, including area code, of Registrant's principal executive offices) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding twelve months (or such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes [X]. No [ ]. As of July 31, 1997, 12,253,574 shares of Common Stock, $.01 per share, were outstanding. ================================================================================ 2 BRIGHAM EXPLORATION COMPANY INDEX
PAGE PART I. FINANCIAL INFORMATION: NUMBER ------ Item 1. Unaudited Condensed Consolidated Financial Statements a) Balance Sheets - December 31, 1996 and June 30, 1997 1 b) Statements of Operations - Three and six months ended June 30, 1996 and 1997 2 c) Statements of Cash Flows - Six months ended June 30, 1996 and 1997 3 d) Statement of Changes in Stockholders' Equity - June 30, 1997 4 e) Notes to Consolidated Financial Statements 5 - 6 Item 2. Management's Discussion and Analysis of Results of Operations and Financial Condition 7 - 9 PART II. OTHER INFORMATION: Item 6. Exhibits and Reports on Form 8-K 10 - 11
3 PART I. FINANCIAL INFORMATION: Item 1. Financial Statements BRIGHAM EXPLORATION COMPANY UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands)
December 31, June 30, 1996 1997 ----------- ----------- (Predecessor) (Company) ASSETS Current assets: Cash and cash equivalents $ 1,447 $ 4,989 Accounts receivable 2,696 4,058 Prepaid expenses 152 278 ----------- ----------- Total current assets 4,295 9,325 ----------- ----------- Natural gas and oil properties, at cost, net 28,005 40,199 Other property and equipment, at cost, net 532 689 Drilling advances paid 419 545 Other noncurrent assets 363 288 =========== =========== $ 33,614 $ 51,046 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 2,937 $ 2,139 Accrued drilling costs 915 2,577 Participant advances received 1,137 1,764 Other current liabilities 628 745 ----------- ----------- Total current liabilities 5,617 7,225 ----------- ----------- Notes payable 8,000 -- Subordinated notes payable - related party 16,000 -- Other noncurrent liabilities 753 89 Deferred income tax liability -- 4,813 Stockholders' equity: Predecessor capital 3,244 -- Preferred stock, $.01 par value, 10 million shares authorized, none issued and outstanding -- -- Common stock, $.01 par value, 30 million shares authorized, 12,253,574 issued and outstanding -- 124 Additional paid-in capital -- 40,560 Unearned stock compensation -- (1,686) Accumulated deficit -- (79) ----------- ----------- Total stockholders' equity 3,244 38,919 ----------- ----------- $ 33,614 $ 51,046 =========== ===========
See accompanying notes to the unaudited condensed consolidated financial statements. 1 4 BRIGHAM EXPLORATION COMPANY UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data)
Three Months Six Months Ended June 30, Ended June 30, -------------------- -------------------- 1996 1997 1996 1997 -------- -------- -------- -------- (Predecessor) (Company) (Predecessor) (Company) Revenues: Natural gas and oil sales $ 1,330 $ 1,718 $ 2,735 $ 3,854 Workstation revenue 126 160 292 324 -------- -------- -------- -------- 1,456 1,878 3,027 4,178 -------- -------- -------- -------- Costs and expenses: Lease operating 172 264 356 470 Production taxes 80 92 155 219 General and administrative 562 753 1,053 1,455 Amortization of stock compensation -- 86 -- 115 Depletion of natural gas and oil properties 787 708 1,297 1,395 Depreciation and amortization 121 64 245 172 -------- -------- -------- -------- 1,722 1,967 3,106 3,826 -------- -------- -------- -------- Operating income (loss) (266) (89) (79) 352 -------- -------- -------- -------- Other income (expense): Interest income 4 63 25 81 Interest expense (86) (156) (101) (372) Interest expense - related party (200) -- (400) (174) -------- -------- -------- -------- (282) (93) (476) (465) -------- -------- -------- -------- Net loss before income taxes (548) (182) (555) (113) Income tax benefit (expense): Income tax provision -- 151 -- 187 Deferred income tax charge -- -- -- (5,000) -------- -------- -------- -------- Net loss $ (548) $ (31) $ (555) $ (4,926) ======== ======== ======== ======== Net loss per common share $ (0.00) ======== Weighted average number of common shares outstanding 11,082 ======== Unaudited pro forma information: Pro forma net loss $ (341) $ (326) $ (4,927) ======== ======== ======== Pro forma, as adjusted, net income (loss) $ (341) $ (326) $ 73 ======== ======== ======== Pro forma net loss per common share $ (0.04) $ (0.04) $ (0.49) ======== ======== ======== Pro forma, as adjusted, net income (loss) per common share $ (0.04) $ (0.04) $ 0.01 ======== ======== ======== Pro forma weighted average number of common shares outstanding 9,170 9,170 10,131 ======== ======== ========
See accompanying notes to the unaudited condensed consolidated financial statements. 2 5 BRIGHAM EXPLORATION COMPANY UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)
Six Six Months Ended Months Ended June 30, June 30, 1996 1997 ---------- ---------- (Predecessor) (Company) Cash flows from operating activities: Net loss $ (555) $ (4,926) Adjustments to reconcile net loss to cash provided by operating activities: Depletion of natural gas and oil properties 1,297 1,395 Depreciation and amortization 245 172 Amortization of stock compensation -- 115 Changes in working capital and other items 2,621 3,049 ---------- ---------- Net cash provided (used) by operating activities 3,608 (195) ---------- ---------- Cash flows from investing activities: Additions to natural gas and oil properties (8,467) (11,796) Proceeds from the sale of natural gas and oil properties 2,149 -- Additions to other property and equipment (26) (183) Increase in drilling advances paid -- (126) ---------- ---------- Net cash used by investing activities (6,344) (12,105) ---------- ---------- Cash flows from financing activities: Proceeds from issuance of common stock -- 23,929 Increase in notes payable 4,400 5,250 Repayment of notes payable -- (13,250) Principal payments on capital lease obligations (129) (87) ---------- ---------- Net cash provided by financing activities 4,271 15,842 ---------- ---------- Net increase in cash and cash equivalents 1,535 3,542 Cash and cash equivalents, beginning of period 1,802 1,447 ========== ========== Cash and cash equivalents, end of period $ 3,337 $ 4,989 ========== ==========
See accompanying notes to the unaudited condensed consolidated financial statements. 3 6 BRIGHAM EXPLORATION COMPANY UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (in thousands, except share data)
Common Stock Additional Unearned --------------------------- Paid-in Stock Accumulated Predecessor Shares Amounts Capital Compensation Deficit Capital Total ------------ ------------ ------------ ------------ ------------ ------------ ------------ Balance, -- $ -- $ -- $ -- $ -- $ 3,244 $ 3,244 December 31, 1996 Consummation of the Exchange 8,928,574 89 19,581 -- -- (3,244) 16,426 Issuance of stock options -- -- 1,932 (1,932) -- -- -- Issuance of common stock 3,325,000 35 23,894 -- -- -- 23,929 Net loss for period ended February 27, 1997 -- -- (4,847) -- -- -- (4,847) Net loss for period from February 27, 1997 to June 30, 1997 -- -- -- -- (79) -- (79) Amortization of unearned stock compensation -- -- -- 246 -- -- 246 ------------ ------------ ------------ ------------ ------------ ------------ ------------ Balance, June 30, 1997 12,253,574 $ 124 $ 40,560 $ (1,686) $ (79) $ -- $ 38,919 ============ ============ ============ ============ ============ ============ ============
See accompanying notes to the unaudited condensed consolidated financial statements. 4 7 BRIGHAM EXPLORATION COMPANY NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 1. ORGANIZATION AND NATURE OF OPERATIONS Brigham Exploration Company (the "Company") is a Delaware corporation formed on February 25, 1997 for the purpose of exchanging its common stock for the common stock of Brigham, Inc. and the partnership interests of Brigham Oil & Gas, L.P. (the "Partnership"). Brigham, Inc. is a Texas corporation whose only asset is its ownership interest in the Partnership. The Partnership was formed in May 1992 to explore and develop onshore domestic natural gas and oil properties using 3-D seismic imaging and other advanced technologies. Since its inception, the Partnership has focused its exploration and development of natural gas and oil properties in the Permian and Hardeman Basins of West Texas, the Anadarko Basin and the onshore Gulf Coast. Pursuant to an exchange agreement dated February 26, 1997 (the "Exchange Agreement") and upon the initial filing on February 27, 1997 of a registration statement with the Securities and Exchange Commission for the public offering of common stock (the "Offering"), the shareholders of Brigham, Inc. transferred all of the outstanding stock of Brigham, Inc. to the Company in exchange for 3,859,821 shares of common stock of the Company. Pursuant to the Exchange Agreement, the Partnership's other general partner and the limited partners also transferred all of their partnership interests to the Company in exchange for 3,314,286 shares of common stock of the Company. Furthermore, the holders of the Partnership's subordinated convertible notes transferred these notes to the Company in exchange for 1,754,464 shares of common stock. These transactions are referred to as the "Exchange." In completing the Exchange, the Company issued 8,928,571 shares of common stock to the stockholders of Brigham, Inc., the partners of the Partnership and the holder of the Partnership's subordinated notes payable. As a result of the Exchange, the Company now owns all the partnership interests in the Partnership. In May 1997, the Company sold 3,325,000 shares of its common stock in the Offering at a price of $8.00 per share. With a portion of the proceeds from the Offering, the Company repaid the outstanding borrowings, $13.3 million, under the Partnership's revolving credit facility. 2. BASIS OF PRESENTATION The unaudited condensed consolidated balance sheets at December 31, 1996 and June 30, 1997 reflect the accounts of the Partnership at December 31, 1996 and the consolidated accounts of the Company at June 30, 1997, respectively. The unaudited condensed consolidated statements of operations and of cash flows for the six months ended June 30, 1996 and 1997 include the results of operations and cash flows of the Partnership for the six months ended June 30, 1996 and the period from January 1, 1997 to February 27, 1997 and for the Company the period from February 25, 1997, the date of its inception, to June 30, 1997. As the Exchange was the conversion of a partnership into a corporation, the Exchange has been accounted for by the Company as a reorganization. The accompanying condensed consolidated financial statements are unaudited, and in the opinion of management, reflect all adjustments that are necessary for a fair presentation of the financial position and results of operations for the periods presented. All such adjustments are of a normal and recurring nature. The results of operations for the periods presented are not necessarily indicative of the results to be expected for the entire year. The unaudited condensed consolidated financial statements should be read in conjunction with the Predecessors' historical consolidated financial statements and notes thereto as of and for the period ended December 31, 1996 as included in the Company's Registration Statement on Form S-1 (333-22491) filed with the Securities and Exchange Commission. 5 8 BRIGHAM EXPLORATION COMPANY NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 3. UNAUDITED PRO FORMA INFORMATION The Partnership's legal form has no relation to the capital structure of the Company after the Exchange. As a result, historical loss per unit amounts are not relevant and have not been presented. Pro forma net loss per common share and pro forma, as adjusted, net loss per common share are presented giving effect to the number of shares outstanding subsequent to the Exchange (8,928,574 shares) and giving effect to employee stock options granted on March 4, 1997, as if these shares and options had been issued at the beginning of each period presented. The effect of the stock option grants on pro forma net loss per common share and pro forma, as adjusted, net loss per common share was calculated using the treasury stock method. Pro forma net loss reflects pro forma exchange adjustments primarily representing the amortization of compensation expense related to employee stock options granted upon formation of the Company, the reduction of interest expense related to the transfer of the subordinated notes payable to the Company as part of the Exchange, and related income tax effects. In addition to the effect of these pro forma adjustments, pro forma, as adjusted, net loss has been adjusted to exclude the $5.0 million deferred tax charge recorded by the Company on February 27, 1997 (see Note 4), as this was a nonrecurring charge related to the Exchange. 4. INCOME TAXES Prior to the consummation of the Exchange, the Partnership was not subject to federal income taxes. Income and losses were passed through to its partners on the basis of the allocation provisions established by the partnership agreement. Upon consummation of the Exchange, the Partnership became subject to federal income taxes through its ownership by the Company. Also, in conjunction with the Exchange, the Company recorded a deferred income tax liability of $5.0 million to recognize the temporary differences between the financial statement and tax bases of the assets and liabilities of the Partnership at the Exchange date, February 27, 1997, given the provisions of enacted tax laws. 5. FUTURE REPORTING REQUIREMENTS In February 1997, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 128 ("SFAS 128"), Earnings Per Share ("EPS"). SFAS 128 replaces the presentation of primary EPS with a presentation of basic EPS and requires a dual presentation of basic and diluted EPS on the face of the income statement for all entities with complex capital structures. Basic EPS excludes dilutive securities and is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if dilutive securities were converted into common stock and is computed similarly to fully diluted EPS pursuant to previous accounting pronouncements. SFAS 128 is effective for periods ending after December 15, 1997, including interim periods, and earlier application is not permitted. SFAS 128 requires restatement of all prior period EPS data presented. For the six months ended June 30, 1996 and 1997, the Company reported pro forma net loss per common share of $0.04 per share and $0.49 per share, respectively. Under SFAS 128, basic pro forma net loss per common share for the respective periods would have been $0.04 and $0.50, respectively, and diluted pro forma net loss per common share would have been $0.04 and $0.49, respectively. 6 9 BRIGHAM EXPLORATION COMPANY Item 2. Management's Discussion and Analysis of Results of Operations and Financial Condition Results of Operations Comparison of three month periods ended June 30, 1996 and June 30, 1997 Natural gas and oil sales. Natural gas and oil sales increased 29% from $1.3 million in the second quarter of 1996 to $1.7 million in the second quarter of 1997. Of this increase, $372,000 or 96% was attributable to an increase in production, and $16,000 or 4% was attributable to an increase in the average sales price for natural gas and oil. Production volumes for natural gas increased 45% from 148,000 Mcf in the second quarter of 1996 to 215,000 Mcf in the second quarter of 1997. The average price received for natural gas decreased 2% from $2.10 per Mcf in the second quarter of 1996 to $2.07 per Mcf in the second quarter of 1997. Production volumes for oil increased 20% from 53,000 Bbls in the second quarter of 1996 to 64,000 Bbls in the second quarter of 1997. The average price received for oil increased 4% from $19.13 per Bbl in the second quarter of 1996 to $19.93 per Bbl in the second quarter of 1997. Natural gas and oil sales were increased by production from wells completed since the second quarter of 1996 partially offset by the natural decline of existing production. Lease operating expenses. Lease operating expense increased 54% from $172,000 ($.37 per Mcfe) in the second quarter of 1996 to $264,000 ($.44 per Mcfe) in the second quarter of 1997. This increase is primarily due to an increase in the number of producing wells and certain extraordinary well operations costs. General and administrative expenses. General and administrative expenses increased 34% from $562,000 ($1.20 per Mcfe) in the second quarter of 1996 to $753,000 ($1.26 per Mcfe) in the second quarter of 1997. The increase is a result of payroll costs related to additional employees and charges related to the relocation of the principal executive offices to Austin, Texas. Certain of the additional employees have been hired to extend the Company's control of its drilling and post drilling operations. Depletion of natural gas and oil properties. Depletion of natural gas and oil properties decreased 10% from $787,000 ($1.68 per Mcfe) in the second quarter of 1996 to $708,000 ($1.18 per Mcfe) in the second quarter of 1997 as a result of higher production volumes. Interest expense. Interest expense decreased 46% from $286,000 in the second quarter of 1996 to $156,000 in the second quarter of 1997. This decrease was due to a lower average outstanding balance in the second quarter of 1997 offset partially by a higher effective interest rate. The weighted average outstanding debt balance decreased 68% from $19.5 million in the second quarter of 1996 to $6.1 million in the second quarter of 1997. The effective interest rate increased 58% from 5.4% in the second quarter of 1996 to 8.5% in the second quarter of 1997. The decrease in the average outstanding balance was a result of the exchange of the RIMCO 5% subordinated notes in February 1997 and the repayment of the entire outstanding revolving credit facility with the proceeds from the IPO in May 1997. The revolving credit facility had an effective interest rate of 8.5% at June 30, 1997. Comparison of six month periods ended June 30, 1996 and June 30, 1997 Natural gas and oil sales. Natural gas and oil sales increased 41% from $2.7 million in the first six months of 1996 to $3.9 million in the first six months of 1997. Of this increase, $720,000 or 64% was attributable to an increase in production, and $399,000 or 36% was attributable to an increase in the average sales price for natural gas and oil. Production volumes for natural gas increased 59% from 288,000 Mcf in the first six months of 1996 to 457,000 Mcf in the first six months of 1997. The average price received for natural gas increased 25% from $2.10 per Mcf in the first six months of 1996 to $2.62 per Mcf in the first six months of 1997. Production volumes for oil increased 12% from 113,000 Bbls in the first six months of 1996 to 127,000 Bbls in the first six months of 1997. The average price received 7 10 for oil increased 11% from $18.82 per Bbl in the first six months of 1996 to $20.87 per Bbl in the first six months of 1997. Natural gas and oil sales were increased by production from wells completed since the first six months of 1996 partially offset by the natural decline of existing production. Natural gas and oil sales in the first six months of 1996 include one month of production related to certain properties sold at the end of January 1996. Lease operating expenses. Lease operating expense increased 32% from $356,000 ($.37 per Mcfe) in the first six months of 1996 to $470,000 ($.38 per Mcfe) in the first six months of 1997. This increase is primarily due to an increase in the number of producing wells. General and administrative expenses. General and administrative expenses increased 38% from $1.1 million ($1.09 per Mcfe) in the first six months of 1996 to $1.4 million ($1.19 per Mcfe) in the first six months of 1997. The increase is a result of payroll costs related to additional employees and charges related to the relocation of the principal executive offices to Austin, Texas. Depletion of natural gas and oil properties. Depletion of natural gas and oil properties increased 8% from $1.3 million ($1.34 per Mcfe) in the first six months of 1996 to $1.4 ($1.14 per Mcfe) in the first six months of 1997 as a result of higher production volumes. Interest expense. Interest expense increased 9% from $501,000 in the first six months of 1996 to $546,000 in the first six months of 1997. This increase was primarily due to a higher effective interest rate. The weighted average outstanding debt balance decreased 12% from $17.7 million in the first six months of 1996 to $15.6 million in the first six months of 1997. The effective interest rate increased 25% from 5.2% in the first six months of 1996 to 6.5% in the first six months of 1997. The increase in the effective interest rate is a result of the exchange of the RIMCO 5% subordinated notes in February 1997 and the increase in the balance outstanding under the revolving credit facility in 1997. Income taxes. Prior to consummation of the Exchange, the Partnership was not subject to federal income taxes. Income and losses were passed through to its partners on the basis of the allocation provisions established by the partnership agreement. Upon consummation of the Exchange, the Partnership became subject to federal income taxes through its ownership by the Company. Also in conjunction with the Exchange, the Company recorded a deferred income tax liability of $5 million to recognize the temporary differences between the financial statement and tax bases of the assets and liabilities of the Partnership at the Exchange date, February 27, 1997, given the provisions of enacted laws. Liquidity and Capital Resources The Company's primary sources of capital have been borrowings (revolving credit facility and private placement debt), working capital and the sale of interests in projects. During May 1997, as described in Note 1 to the Unaudited Condensed Consolidated Financial Statements included herein, the Company completed an initial public offering of Common Stock of the Company that generated proceeds of approximately $24 million, net of offering costs, that was used to repay all outstanding debt ($13.25 million) under the revolving credit facility and to fund capital expenditures. In the first six months of 1997, the Company used $195,000 in cash flow from operations primarily as a result of the net reduction in working capital offset partially by an increase in natural gas and oil revenues, net of production taxes, lease operating expenses and general and administrative expenses. Cash flow used in investing activities was $12.1 million in the first six months of 1997 primarily as a result of capital expenditures. Cash flow provided by financing activities was $15.8 million in the first six months of 1997 as a result of the proceeds from the IPO in May 1997 offset by the reduction of the balance outstanding under the revolving credit facility. The Company expects to continue its exploration and production activities during the remainder of 1997 and expects to finance those activities with proceeds from the initial public offering, borrowings under the revolving credit facility and cash flow from operations. 8 11 Forward Looking Information The Company may make forward looking statements, oral or written, including statements in this report, press releases and other filings with the SEC, relating to the Company's drilling plans, its potential drilling locations, capital expenditures, use of offering proceeds, the ability of expected sources of liquidity to support working capital and capital expenditure requirements and the Company's financial position, business strategy and other plans and objectives for future operations. Such statements involve risks and uncertainties, including those relating to the Company's dependence on exploratory drilling activities, the volatility of natural gas and oil prices, the risks associated with growth (including the risk of reduced availability of seismic gathering and drilling services in the face of growing demand), the substantial capital requirements of the Company's exploration and development projects, operating hazards and uninsured risks and other factors detailed in the Company's registration statement and other filings with the SEC. All subsequent oral and written forward looking statements attributable to the Company are expressly qualified in their entirety by these factors. The Company assumes no obligation to update these statements. 9 12 PART II. OTHER INFORMATION: Item 6. Exhibits and Reports on Form 8-K (a) Exhibits 11.1 Computation of Earnings per Share 27 Financial Data Schedule SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto, duly authorized, in the City of Austin, State of Texas, on the 13th day of August, 1997. BRIGHAM EXPLORATION COMPANY By: /s/ BEN M. BRIGHAM ------------------------------------ Ben M. Brigham President , Chief Executive Officer and Chairman of the Board By: /s/ CRAIG M. FLEMING ------------------------------------ Craig M. Fleming Chief Financial Officer 10 13
SEQUENTIALLY EXHIBIT NUMBERED NO. INDEX TO EXHIBITS PAGE --- ----------------- ---- 11.1 Computation of Earnings per Share Tabbed by Exhibit 27 Financial Data Schedule No.
11 EX-11.1 2 COMPUTATION OF EARNINGS PER SHARE 1 Exhibit 11.1 Computation of pro forma weighted average number of common shares outstanding for the three month and six month periods ended June 30, 1996 and 1997 (in thousands).
Three Months Six Months Ended June 30, Ended June 30, ---------------------- ---------------------- 1996 1997 1996 1997 --------- --------- --------- --------- Number of shares outstanding after the Exchange 8,929 8,929 8,929 8,929 Employee stock options granted under the 1997 Incentive Plan 644 644 644 644 Shares assumed to be repurchased under the treasury stock method: $3,220,485 (1)/$8.00 per share (2) (403) (403) (403) (403) 3,000,000 shares issued May 8, 1997 -- 1,747 -- 878 325,000 shares issured May 15, 1997 -- 165 -- 83 --------- Weighted average number of common shares outstanding 11,082 ========= --------- --------- --------- Pro forma weighted average number of common shares outstanding 9,170 9,170 10,131 ========= ========= =========
Notes: (1) Calculated by multiplying employee stock options granted under the 1997 Incentive Plan (644,097) by their exercise price ($5.00). (2) Initial public offering price. EX-27 3 FINANCIAL DATA SCHEDULE
5 1,000 3-MOS JAN-31-1997 JUN-30-1997 4,989 0 4,058 0 0 9,325 40,199 0 51,046 7,225 0 0 0 124 38,795 51,046 1,718 1,878 0 356 1,611 0 156 (182) 151 (31) 0 0 0 (31) 11,082 0
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