8-K/A 1 d8ka.txt FORM 8-K/A ================================================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K/A CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): May 22, 2001 THE WISER OIL COMPANY (Exact name of registrant as specified in is charter) Delaware 0-5426 55-0522128 (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) 8115 Preston Road, Suite 400 Dallas, Texas 75225 (Address, including zip code, of principal executive offices) Registrant's telephone number, including area code: (214) 265-0080 Not Applicable (Former Name or Former Address, if Changed Since Last Report) ================================================================================ THE WISER OIL COMPANY FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 ================================================================================ Table of Contents
Page Item 7. Financial Statements, Pro Forma Financial Information and Exhibits........ 3 Financial Statements of Business Acquired............................. 3 Pro Forma Financial Information....................................... 3 Unaudited Pro Forma Combined Financial Statements, Unaudited Pro Forma Combined Balance Sheet for The Wiser Oil Company as of March 31, 2001................................. 5 Unaudited Pro Forma Combined Statement of Income for The Wiser Oil Company for the three months ended March 31, 2001........ 6 Unaudited Pro Forma Combined Statement of Income for The Wiser Oil Company for the year ended December 31, 2000............. 7 Unaudited Pro Forma Combined Balance Sheet for Invasion Energy Inc. as of March 31, 2001............................. 8 Unaudited Pro Forma Combined Statement of Income for Invasion Energy Inc.for the three months ended March 31, 2001......... 9 Unaudited Pro Forma Combined Statement of Income for Invasion Energy Inc.for the year ended December 31, 2000.............. 9 Notes to Unaudited Pro Forma Combined Financial Statements...... 10 Exhibits........................................................ 12 Signatures......................................................................... 12
-2- This Current Report on Form 8-K/A constitutes an amendment to the Current Report on Form 8-K filed on June 6, 2001, and amends and restates Item 7 (a) and (b) in their entirety. Item 7. Financial Statements, Pro Forma Financial Information and Exhibits. (a) Financial statements of business acquired. The unaudited financial statements of Invasion Energy, Inc. for the year ended August 31, 2000 are included hereto as Exhibit 99.1. (b) Pro forma financial information. The unaudited pro forma combined balance sheet of the Company as of March 31, 2001, has been prepared to give effect to the acquisition of the common shares of Invasion Energy Inc. (the "Acquisition") as if such transaction had occurred on March 31, -3- 2001, and was accounted for as a purchase in accordance with the provisions of Accounting Principles Board Opinion No. 16, "Business Combinations." The unaudited pro forma combined statements of income of the Company for the three months ended March 31, 2001 and for the year ended December 31, 2000, have been prepared to give effect to the Acquisition and certain events described below with respect to Invasion as if the Acquisition and such events had occurred on January 1, 2000. The unaudited pro forma combined balance sheet and statements of income of Invasion have been prepared to give effect to the following events affecting Invasion: (i) the conversion to United States generally accepted accounting principles and (ii) the recording of exploration expense in accordance with the successful efforts method of accounting for Invasion's oil and gas properties. The unaudited pro forma combined financial statements included herein are not necessarily indicative of the results that might have occurred had the transaction and other events taken place at the beginning of the period specified and are not intended to be a projection of future results. In addition, future results may vary significantly from the results reflected in the accompanying unaudited pro forma combined financial statements because of normal production declines, changes in product prices, future acquisitions and divestitures, future development and exploration activities, and other factors beyond the control of the Company. The following unaudited pro forma combined financial statements should be read in conjunction with (i) the Consolidated Financial Statements (and related notes) of the Company in its Quarterly Report on Form 10-Q for the three months ended March 31, 2001 and Annual Report on Form 10-K for the year ended December 31, 2000, and (ii) the Financial Statements (and related notes) of Invasion for the year ended August 31, 2000. The following is a description of the individual columns included in these unaudited pro forma combined financial statements: Historical Wiser Oil - Represents the consolidated balance sheet of the Company as of March 31, 2001, and the consolidated statement of income of the Company for the three months ended March 31, 2001 and for the year ended December 31, 2000, as included in the Company's Quarterly Report on Form 10-Q and Annual Report on Form 10-K. Historical Invasion - Represents the consolidated balance sheet of Invasion as of March 31, 2001, and the consolidated statement of income of Invasion for the three months ended March 31, 2001 and for the year ended December 31, 2000 converted to United States generally accepted accounting principles and United States dollars. -4- THE WISER OIL COMPANY UNAUDITED PRO FORMA COMBINED BALANCE SHEET As of March 31, 2001 (000's)
Pro Forma Historical Pro Forma Combined Pro Forma Wiser Oil Invasion Adjustments Combined ----------- ---------- ------------ ---------- Assets Current Assets: Cash and cash equivalents............................. $ 37,511 $ 658 (22,620) (a) 15,549 Restricted cash....................................... 3,974 -- 3,974 Accounts receivable................................... 13,250 3,633 (19) (a) 16,864 Inventories........................................... 417 125 542 Fair value of derivatives............................. 617 -- 195 (a) 812 Prepaid expenses...................................... 1,978 472 2,450 --------- ------- --------- Total current assets................................ 57,747 4,888 40,191 --------- ------- --------- Property and Equipment, at cost: Oil and gas properties (successful efforts method).... 287,370 30,025 17,927 (a) 335,322 Other properties...................................... 3,933 -- 3,933 --------- ------- --------- 291,303 30,025 339,255 Accumulated depreciation, depletion and amortization.. (132,757) (6,578) 6,578 (a) (132,757) --------- ------- --------- Net property and equipment............................ 158,546 23,447 206,498 Deferred Income Taxes................................... -- 193 (193) (a) -- Other Assets............................................ 3,185 347 (347) (a) 3,185 --------- ------- --------- $ 219,478 $28,875 $ 249,874 ========= ======= ========= Liabilities and Stockholders' Equity Current Liabilities: Accounts payable...................................... $ 8,207 $ 2,989 (252) (a) $ 10,944 Current portion of long-term debt..................... 500 7,398 (7,398) (a) 500 Dividends payable..................................... -- -- -- Fair value of derivatives............................. 430 -- 430 Accrued liabilities................................... 4,891 1,185 6,076 --------- ------- --------- Total current liabilities............................ 14,028 11,572 17,950 --------- ------- --------- Deferred Income Taxes................................... -- -- 11,546 (a) 11,546 Long-term Debt.......................................... 124,618 7,397 7,531 (a) 139,546 Stockholders' Equity: Preferred stock....................................... 6,000 -- 6,000 Common stock.......................................... 93 -- 93 Paid-in capital....................................... 39,117 9,020 (9,020) (a) 39,117 Retained earnings..................................... 37,558 248 (248) (a) 37,558 Accumulated other comprehensive income................ 793 638 (638) (a) 793 Treasury stock, at cost............................... (2,729) -- (2,729) --------- ------- --------- Total stockholders' equity........................... 80,832 9,906 80,832 --------- ------- --------- $ 219,478 $28,875 $ 249,874 ========= ======= =========
-5- THE WISER OIL COMPANY UNAUDITED PRO FORMA COMBINED STATEMENT OF INCOME For the three months ended March 31, 2001 (000's)
Pro Forma Historical Pro Forma Combined Pro Forma Wiser Oil Invasion Adjustments Combined ----------- --------- ------------ ---------- Revenues: Oil and gas sales.......................... $23,829 $6,511 $30,340 Interest income............................ 540 27 567 Other...................................... 130 27 157 ------- ------ --------- 24,499 6,565 31,064 ------- ------ --------- Costs and Expenses: Production and operating................... 6,890 1,597 8,487 Depreciation, depletion and amortization... 4,191 877 476 (b) 5,544 Exploration................................ 2,246 9 2,255 General and administrative................. 1,918 403 2,321 Interest expense........................... 3,158 348 (25) (c) 3,481 ------- ------ --------- 18,403 3,234 22,088 ------- ------ --------- Earnings (Loss) Before Income Taxes.......... 6,096 3,331 8,976 Income Tax Expense (Benefit)................. -- 1,466 (198) (d) 1,268 ------- ------ --------- Net Income (Loss)............................ 6,096 1,865 7,708 Preferred Stock Dividends.................... (259) -- (259) ------- ------ --------- Net Income (Loss) Available to Common Stock.. $ 5,837 $1,865 $ 7,449 ======= ====== ========= Weighted Average Outstanding Shares: Basic...................................... 9,081 9,081 ======= ========= Diluted.................................... 12,753 12,753 ======= ========= Earnings (Loss) Per Share: Basic...................................... $0.64 $0.82 ======= ========= Diluted.................................... $0.48 $0.60 ======= =========
-6- THE WISER OIL COMPANY UNAUDITED PRO FORMA COMBINED STATEMENT OF INCOME For the year ended December 31, 2000 (000's)
Pro Forma Historical Pro Forma Combined Pro Forma Wiser Oil Invasion Adjustments Combined ----------- ---------- ------------ ---------- Revenues: Oil and gas sales.......................... $67,016 $10,487 $77,503 Interest income............................ 1,794 32 1,826 Gain on sales of properties................ 74 -- 74 Other...................................... 849 88 937 ------- ------- --------- 69,733 10,607 80,340 ------- ------- --------- Costs and Expenses: Production and operating................... 24,125 4,790 28,915 Depreciation, depletion and amortization... 15,637 5,532 5,472 (b) 26,641 Property impairments....................... 680 -- 680 Exploration................................ 3,792 574 4,366 General and administrative................. 8,720 1,925 10,645 Interest expense........................... 12,659 1,548 (167) (c) 14,040 ------- ------- --------- 65,613 14,369 85,287 ------- ------- --------- Earnings (Loss) Before Income Taxes.......... 4,120 (3,762) (4,947) Income Tax Expense (Benefit)................. -- (1,655) (2,334) (d) (3,989) ------- ------- --------- Net Income (Loss)............................ 4,120 (2,107) (958) Preferred Stock Dividends.................... (633) -- (633) ------- ------- --------- Net Income (Loss) Available to Common Stock.. $ 3,487 $(2,107) $(1,591) ======= ======= ========= Weighted Average Outstanding Shares: Basic...................................... 8,963 8,963 ======= ========= Diluted.................................... 11,090 11,090 ======= ========= Earnings (Loss) Per Share: Basic...................................... $0.39 $(0.18) ======= ========= Diluted.................................... $0.37 $(0.18) ======= =========
-7- INVASION ENERGY INC. UNAUDITED PRO FORMA BALANCE SHEET As of March 31, 2001 (000's)
Historical Pro Forma Pro Forma Invasion Adjustments Invasion ----------- ------------ ---------- Assets Current Assets: Cash and cash equivalents............................. $ 658 $ 658 Accounts receivable................................... 3,633 3,633 Inventories........................................... 125 125 Prepaid expenses...................................... 472 472 ------- --------- Total current assets................................ 4,888 4,888 ------- --------- Property and Equipment, at cost: Oil and gas properties................................ 31,012 (987) (e) 30,025 Accumulated depreciation, depletion and amortization.. (6,881) 303 (e) (6,578) ------- --------- Net property and equipment............................ 24,131 23,447 Deferred Income Taxes................................... 60 133 (i) 193 Other Assets............................................ 347 347 ------- --------- $29,426 $28,875 ======= ========= Liabilities and Stockholders' Equity Current Liabilities: Accounts payable...................................... $ 2,989 $ 2,989 Current portion of long-term debt..................... 7,398 7,398 Accrued liabilities................................... 1,185 1,185 ------- --------- Total current liabilities............................ 11,572 11,572 ------- --------- Long-term Debt.......................................... 7,397 7,397 Stockholders' Equity: Paid-in capital....................................... 9,020 9,020 Retained earnings..................................... 799 (551) (f) 248 Accumulated other comprehensive income................ 638 638 ------- --------- Total stockholders' equity........................... 10,457 9,906 ------- --------- $29,426 $28,875 ======= =========
-8- INVASION ENERGY INC. UNAUDITED PRO FORMA STATEMENT OF INCOME For the three months ended March 31, 2001 (000's)
Historical Pro Forma Pro Forma Invasion Adjustments Invasion ---------- ------------ --------- Revenues: Oil and gas sales.......................... $6,511 $6,511 Interest income............................ 27 27 Other...................................... 27 27 ------ --------- 6,565 6,565 ------ --------- Costs and Expenses: Production and operating................... 1,597 1,597 Depreciation, depletion and amortization... 920 (43)(g) 877 Exploration................................ -- 9 (h) 9 General and administrative................. 403 403 Interest expense........................... 348 348 ------ --------- 3,268 3,234 ------ --------- Earnings (Loss) Before Income Taxes.......... 3,297 3,331 Income Tax Expense (Benefit)................. 1,460 6 (d) 1,466 ------ --------- Net Income (Loss) Available to Common Stock.. $1,837 $1,865 ====== =========
INVASION ENERGY INC. UNAUDITED PRO FORMA STATEMENT OF INCOME For the year ended December 31, 2000 (000's)
Historical Pro Forma Pro Forma Invasion Adjustments Invasion ----------- ------------ ---------- Revenues: Oil and gas sales.......................... $10,487 $10,487 Interest income............................ 32 32 Other...................................... 88 88 ------- --------- 10,607 10,607 ------- --------- Costs and Expenses: Production and operating................... 4,790 4,790 Depreciation, depletion and amortization... 5,792 (260)(g) 5,532 Exploration................................ -- 574 (h) 574 General and administrative................. 1,925 1,925 Interest expense........................... 1,548 1,548 ------- --------- 14,055 14,369 ------- --------- Earnings (Loss) Before Income Taxes.......... (3,448) (3,762) Income Tax Expense (Benefit)................. (1,517) (138)(d) (1,655) ------- --------- Net Income (Loss) Available to Common Stock.. $(1,931) $(2,107) ======= =========
-9- The Wiser Oil Company Notes to Unaudited Pro Forma Combined Financial Statements 1. Acquisition of Invasion The aggregate purchase price is computed as follows (000's):
Aggregate Purchase Price -------------- Aggregate purchase price for 100% of Invasion Common Stock................ $21,419 Nonrecurring cash transaction costs... 1,201 ------- Aggregate purchase price.............. $22,620 =======
The following table represents the preliminary allocation of the total purchase price of Invasion to the acquired assets and liabilities of Invasion. The allocation represents the fair values that would have been assigned to each of the significant assets acquired and liabilities assumed as if the Acquisition had occurred on March 31, 2001. Any future adjustments to the allocation of the purchase price are not anticipated to be material to the unaudited pro forma combined financial statements.
Allocation of Aggregate Purchase Price -------------- Net working capital....... $ 1,142 Property and equipment.... 47,952 Long-term debt............ (14,928) Deferred income taxes..... (11,546) -------- Aggregate purchase price.. $ 22,620 ========
2. Pro Forma Entries The following items are included in the preparation of the pro forma financial statements: (a) To record the acquisition of Invasion using the purchase method of accounting. The allocation of the purchase price to the acquired assets and liabilities is preliminary and, therefore, subject to change. Any future adjustments to the allocation of the purchase price are not anticipated to be material to the Company's financial statements. (b) To increase depreciation, depletion and amortization expense for the additional basis allocated to the oil and gas properties acquired and accounted for using the successful efforts method of accounting. (c) To reduce interest expense resulting from the borrowing of the funds necessary to consummate the Acquisition. The Company's incremental borrowing interest rates of 9.25% for the year 2000, and 8.63% for the three months ended March 31, 2001 were utilized to determine the additional pro forma interest expense. -10- (d) To adjust income tax expense for pro forma adjustments by tax jurisdiction. (e) To reduce property and equipment for Invasion's conversion from the full cost method of accounting to the successful efforts method of accounting for Invasion's oil and gas properties. (f) To reduce retained earnings for Invasion's conversion from the full cost method of accounting to the successful efforts method of accounting for Invasion's oil and gas properties, net of income taxes. (g) To reduce depreciation, depletion and amortization expense for conversion from the full cost method of accounting to the successful efforts method of accounting for Invasion's oil and gas properties. (h) To record exploration expense for Invasion's conversion to the successful efforts method of accounting. (i) To adjust deferred income taxes for pro forma adjustments by tax jurisdiction. The Company will prepare separate tax calculations for each tax jurisdiction in which the Company will be subject to income taxes. 3. Pro Forma Oil and Gas Reserve Data The following table reflects the pro forma estimated quantities of proved and proved developed oil and gas reserves as included in the Company's 2000 Annual Report on Form 10-K. The Company considers such estimates to be reasonable; however, there are numerous uncertainties inherent in estimated quantities of proved reserves, including many factors beyond the control of the Company. Reserve engineering is a subjective process which is dependent on the quality of available data and on engineering and geological interpretation and judgment. Such reserve estimates are subject to change over time, as additional information becomes available. Quantities of natural gas are expressed in terms of million cubic feet ("MMcf"). Oil and natural gas liquids ("NGL's") are quantified in terms of thousands of barrels ("MBbl"). One Bbl of oil or natural gas liquids is the energy equivalent of six Mcf of natural gas ("BOE"). Pro Forma Combined Reserves and Production For the year ended December 31, 2000 (MBOE)
The Wiser Oil Invasion Company Energy Inc. Combined -------------- ------------ --------- Proved reserves, end of year 37,176 3,875 41,051 ------ ----- ------ Proved developed reserves, end of year 35,662 3,543 39,205 ------ ----- ------ 2000 pro forma production (3,209) (671) (3,880) ------ ----- ------
-11- Pro Forma Combined Reserves and Production by Product For the year ended December 31, 2000
Oil & NGL's Gas (MBBL) (MMCF) ------ -------- Proved reserves, end of year 24,499 99,310 ------ ------- Proved developed reserves, end of year 23,604 93,656 ------ ------- 2000 pro forma production (1,719) (12,965) ------ -------
(c) Exhibits Item Exhibits ---- -------- 99.1* Unaudited Financial Statements of Invasion Energy Inc. -------------------------------------------------------------------------------- *filed herewith SIGNATURE 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. THE WISER OIL COMPANY Date: August 6, 2001 By: /s/ George K. Hickox, Jr. ------------------------------------------ George K. Hickox, Jr. Chairman and Chief Executive Officer -12-