-----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, Gj+GsLv9F8H7aMkqbEYr1M2WrL5e8kr3h+e4uDY4mofcv0xYxaIlS1n9vMjajWqv 2buBcuQhs0/0J0pzr8rkyw== 0000230463-96-000006.txt : 19960506 0000230463-96-000006.hdr.sgml : 19960506 ACCESSION NUMBER: 0000230463-96-000006 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960331 FILED AS OF DATE: 19960503 SROS: NYSE SROS: PSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: POGO PRODUCING CO CENTRAL INDEX KEY: 0000230463 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] IRS NUMBER: 741659398 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-07792 FILM NUMBER: 96555781 BUSINESS ADDRESS: STREET 1: 5 GREENWAY PLAZA STE 2700 STREET 2: P O BOX 2504 CITY: HOUSTON STATE: TX ZIP: 77046-0504 BUSINESS PHONE: 7132975017 MAIL ADDRESS: STREET 1: 5 GREENWAY PLAZA SUITE 2700 STREET 2: P O BOX 2504 CITY: HOUSTON STATE: TX ZIP: 77046-0504 FORMER COMPANY: FORMER CONFORMED NAME: PENNZOIL OFFSHORE GAS OPERATORS INC /TX/ DATE OF NAME CHANGE: 19600201 10-Q 1 1ST QUARTER 1996 10Q SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ( X ) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE OF 1934 FOR THE QUARTERLY PERIOD ENDED March 31, 1996 OR ( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERION FROM ______ TO _____ Commission file number 1-7792 Pogo Producing Company (Exact name of registrant as specified in its charter) Delaware 74-1659398 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 5 Greenway Plaza, Suite 2700 Houston, Texas 77046-0504 (Address of principal executive offices) (Zip Code) (713) 297-5000 (Registrant's telephone number, including area code) Not Applicable (Former name, former address and former fiscal year, if changed since last report) 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 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirement for the past 90 days: Yes X No Registrant's number of common shares outstanding as of March 31, 1996: 33,127,745 Part I. Financial Information Item 1. Financial Statements Pogo Producing Company and Subsidiaries Consolidated Statements of Income (Unaudited)
Three Months Ended March 31, 1996 1995 --------------- --------------- (Expressed in thousands, except per share amounts) Revenues: Oil and gas $ 48,217 $ 41,710 Gains (losses) on sales (165) 100 _____________ _______________ Total 48,052 41,810 ------------- --------------- Operating Costs and Expenses: Lease operating 8,875 8,487 General and administrative 5,421 4,341 Exploration 3,910 1,375 Dry hole and impairment 2,550 1,428 Depreciation, depletion and amortization 15,713 18,457 ------------- --------------- Total 36,469 34,088 ------------- --------------- Operating Income 11,583 7,722 Interest: Charges (3,012) (2,791) Income 15 41 Capitalized 826 143 ------------- --------------- Income Before Income Taxes 9,412 5,115 Income Tax Expense (3,147) (1,684) ------------- --------------- Net Income $ 6,265 $ 3,431 ============= =============== Primary and Fully Diluted Earnings Per Common Share $ 0.19 $ 0.10 ============= =============== Dividends Per Common Share $ 0.03 $ 0.03 ============= =============== Weighted Average Number of Common Stock and Common Stock Equivalent Shares Outstanding 33,834 33,357
See accompanying notes to consolidated financial statements. - 1 - Pogo Producing Company and Subsidiaries Consolidated Balance Sheets
March 31, December 31, 1996 1995 ------------- ------------- (Unaudited) (Expressed in thousands, except share amounts) Assets Current Assets: Cash and cash investments $ 12,369 $ 4,481 Accounts receivable 24,000 21,820 Other receivables 20,130 30,504 Inventories 8,040 6,438 Other 266 722 ------------- ------------- Total current assets 64,805 63,965 ------------- _____________ Property and Equipment: Oil and gas, on the basis of successful efforts accounting Proved properties being amortized 964,602 963,330 Unproved properties and properties under development, not being amortized 58,081 47,431 Other, at cost 7,424 8,811 -------------- ------------- 1,030,107 1,019,572 Less--accumulated depreciation, depletion and amortization, including $4,307 and $5,603, respectively, applicable to other property 771,078 757,739 -------------- ------------- 259,029 261,833 -------------- ------------- Other 14,303 12,379 -------------- ------------- $ 338,137 $ 338,177 ============== ============= Liabilities and Shareholders' Equity Current Liabilities: Accounts payable $ 9,606 $ 10,007 Other payables 18,627 35,254 Current portion of long-term debt 3,000 3,000 Accrued interest payable 1,313 1,714 Accrued payroll and related benefits 1,935 1,239 Federal income taxes payable 1,000 - Other 145 103 -------------- ------------- Total current liabilities 35,626 51,317 Long-Term Debt 171,249 163,249 Deferred Federal Income Tax 41,067 41,409 Deferred Credits 10,668 10,494 -------------- ------------- Total liabilities 258,610 266,469 -------------- ------------- Shareholders' Equity: Preferred stock, $1 par; 2,000,000 shares authorized - - Common stock, $1 par; 100,000,000 shares authorized, 33,143,320 and 33,006,972 shares issued, respectively 33,143 33,007 Additional capital 135,288 132,881 Retained earnings (deficit) (88,580) (93,856) Treasury stock, at cost (324) (324) -------------- ------------- Total shareholders' equity 79,527 71,708 -------------- ------------- $ 338,137 $ 338,177 ============== =============
See accompanying notes to consolidated financial statements. - 2 - Pogo Producing Company and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited)
Three Months Ended March 31, ------------------------------------ 1996 1995 ------------- -------------- (Expressed in thousands) Cash Flows from Operating Activities: Cash received from customers $ 46,037 $ 49,981 Operating, exploration, and general and administrative expenses paid (18,607) (14,959) Interest paid (3,413) (3,174) Federal income taxes paid (2,000) - Other (358) 427 ------------- -------------- Net cash provided by operating activities 21,659 32,275 ------------- -------------- Cash Flows from Investing Activities: Capital expenditures (22,753) (30,618) Purchase of proved reserves - (4,171) Proceeds from the sales of properties 100 100 ------------- -------------- Net cash used in investing activities (22,653) (34,689) ------------- -------------- Cash Flows from Financing Activities: Net borrowings under revolving credit agreement 8,000 7,000 Net borrowings under uncommitted lines of credit with banks - 2,000 Interest bearing loan to a joint venture partner - (4,171) Payment of cash dividend on common stock (989) (984) Purchase of 8% debentures due 2005 - (410) Proceeds from exercise of stock options 1,871 23 ------------- -------------- Net cash provided by financing activities 8,882 3,458 ------------- -------------- Net Increase in Cash and Cash Investments 7,888 1,044 Cash and Cash Investments at the Beginning of the Year 4,481 2,922 ------------- -------------- Cash and Cash Investments at the End of the Period $ 12,369 $ 3,966 ============= ============== Reconciliation of Net Income to Net Cash Provided by Operating Activities: Net income $ 6,265 $ 3,431 Adjustments to reconcile net income to net cash provided by operating activities - (Gains) losses from the sales of properties 165 (100) Depreciation, depletion and amortization 15,713 18,457 Dry hole and impairment 2,550 1,428 Interest capitalized (826) (143) Deferred federal income taxes 330 1,827 Change in operating assets and liabilities (2,538) 7,375 ------------- -------------- Net cash provided by operating activities $ 21,659 $ 32,275 ============= ==============
See accompanying notes to consolidated financial statements. - 3 - Pogo Producing Company and Subsidiaries Consolidated Statements of Shareholders' Equity (Unaudited)
Three Months Ended March 31, -------------------------------------------------------------- 1996 1995 -------------------------- ----------------------------- Shares Amount Shares Amount ---------- ------------ ---------- ------------- (Expressed in thousands, except share amounts) Common Stock: $1.00 par - 100,000,000 and 43,333,333 shares authorized, respectively Balance at beginning of year 33,006,972 $ 33,007 32,825,836 $ 32,826 Stock options exercised 136,348 136 3,625 4 ---------- ------------ ---------- ------------- Issued at end of period 33,143,320 33,143 32,829,461 32,830 ---------- ------------ ---------- ------------- Additional Capital: Balance at beginning of year 132,881 130,675 Stock options exercised 2,407 34 ------------ ------------- Balance at end of period 135,288 130,709 ------------ ------------- Retained Earnings (Deficit): Balance at beginning of year (93,856) (99,140) Net income 6,265 3,431 Dividends ($0.03 per common share) (989) (984) ------------ ------------- Balance at end of period (88,580) (96,693) ------------ ------------- Treasury Stock: Balance at beginning of year (15,575) (324) (15,575) (324) Activity during period - - - - ---------- ------------ ---------- ------------- Balance at end of period (15,575) (324) (15,575) (324) ---------- ------------ ---------- ------------- Common stock outstanding, at the end of the period 33,127,745 32,813,886 ========== ========== Total Shareholders' Equity $ 79,527 $ 66,522 ============ =============
See accompanying notes to consolidated financial statements. - 4 - Pogo Producing Company and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) (1) General Information - The consolidated financial statements included herein have been prepared by Pogo Producing Company (the "Company") without audit and include all adjustments (of a normal and recurring nature) which are, in the opinion of management, necessary for the fair presentation of interim results which are not necessarily indicative of results for the entire year. The financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's latest annual report. (2) Long-Term Debt - Long-term debt and the amount due within one year at March 31, 1996 and December 31, 1995, consists of the following:
March 31, December 31, 1996 1995 -------------- ------------- (Expressed in thousands) Senior debt -- Bank revolving credit agreement debt LIBO Rate based loans, borrowings at March 31, 1996 and December 31, 1995 at average interest rates of 6.32% and 6.81%, respectively $ 37,000 $ 27,000 Prime rate based loan, borrowing at December 31, 1995 at interest rate of 8.5% -- 2,000 Uncommitted credit lines with banks, borrowings at March 31, 1996 and December 31, 1995 at average interest rates of 6.04% and 6.8%, respectively 9,000 9,000 -------------- ------------- Total senior debt 46,000 38,000 -------------- ------------- Subordinated debt -- 5 1/2% Convertible subordinated notes due 2004 86,250 86,250 8% Convertible subordinated debentures due 2005 41,999 41,999 -------------- ------------- Total subordinated debt 128,249 128,249 -------------- ------------- Total debt 174,249 166,249 Amount due within one year consisting of the sinking fund requirement on the 8% Debentures (3,000) (3,000) -------------- ------------- Long-term debt $ 171,249 $ 163,249 ============== =============
- 5 - Pogo Producing Company and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) (3) Earnings per Share - Earnings per common and common equivalent share (primary earnings per share) are based on the weighted average number of shares of common stock and common equivalent shares outstanding during the periods. The dilutive effect of stock options was considered in the earnings per share reported for the periods. The 8% convertible subordinated debentures, due 2005 (the "8% Debentures") are common stock equivalents and were anti-dilutive in both periods. Earnings per common and common equivalent share assuming full dilution (fully diluted earnings per share) considered the 5 1/2% convertible subordinated notes, due 2004 (the "5 1/2% Notes") which were anti-dilutive in both periods presented. Earnings per share are based on the following:
Three Months Ended March 31, --------------------------------- 1996 1995 ------------- --------------- (Expressed in thousands) Earnings applicable to common stock: Primary $ 6,265 $ 3,431 ============= =============== Fully diluted $ 6,265 $ 3,431 ============= =============== Weighted average number of common stock and common equivalent shares outstanding: Primary 33,834 33,357 ============= =============== Fully diluted 33,856 33,420 ============= ===============
- 6 - Pogo Producing Company and Subsidiaries Management's Discussion and Analysis of Financial Condition and Results of Operations This discussion should be read in conjunction with Management's Discussion and Analysis of Financial Condition and Results of Operations included in the Company's annual report on Form 10-K for the year ended December 31, 1995. Results of Operations - The Company reported net income for the first quarter of 1996 of $6,265,000 or $0.19 per share compared to net income for the first quarter of 1995 of $3,431,000 or $0.10 per share. Earnings per common share are based on the weighted average number of of common and common equivalent shares outstanding for the first quarter of 1996 of 33,834,000, compared to 33,357,000 for the first quarter of 1995. The increase in the weighted average number of common and common equivalent shares outstanding for the first quarter of 1996, compared to the first quarter of 1995, resulted from the issuance of shares of common stock upon the exercise of stock options pursuant to the Company's stock option plans. The increase in the number of shares used in the fully-diluted computation of earnings per share compared to the number of shares used in the primary computation of earnings per share resulted from the required different calculation of dilution from the assumed exercise of stock options in each calculation. The 8% Debentures and the 5 1/2% Notes were anti-dilutive in both periods. The Company's total revenues for the first quarter of 1996 were $48,052,000, an increase of approximately 15% from total revenues of $41,810,000 for the first quarter of 1995. The increase in the Company's total revenues for the first quarter of 1996, compared to the first quarter of 1995, resulted primarily from increases in the average prices that the Company received for its natural gas and liquid hydrocarbon (including crude oil, condensate and natural gas liquids ("NGL")) production volumes, that was partially offset by decreases in the Company's natural gas and, to a much lesser extent, its liquid hydrocarbon production volumes. The following table reflects an analysis of differences in the Company's oil and gas revenues (expressed in thousands of dollars) between the first quarter of 1996 and the first quarter of 1995: - 7 - Pogo Producing Company and Subsidiaries Management's Discussion and Analysis of Financial Condition and Results of Operations (Continued)
1st Qtr '96 Compared to 1st Qtr '95 ----------- Increase (decrease) in oil and gas revenues resulting from differences in : Natural gas -- Price . . . . . . . . . . . . . . . . $ 10,924 Production . . . . . . . . . . . . . . (7,107) --------- 3,817 --------- Crude oil and condensate -- Price . . . . . . . . . . . . . . . . 2,247 Production . . . . . . . . . . . . . . 140 --------- 2,387 --------- NGL and other, net . . . . . . . . . . . 303 --------- Increase in oil and gas revenues . . . . $ 6,507 =========
The average price per thousand cubic feet ("Mcf") that the Company received for its natural gas production increased substantially during the first quarter of 1996, compared to the first quarter of 1995, averaging $2.41 per Mcf for the first quarter of 1996, compared to $1.58 per Mcf for the first quarter of 1995, an increase of approximately 53%. The Company's natural gas production during the first quarter of 1996 averaged 111.2 million cubic feet ("MMcf") per day, a decrease of approximately 23% from an average of 145.2 MMcf per day during the first quarter of 1995. The decrease in the Company's natural gas production during the first quarter of 1996, compared to the first quarter of 1995, was related in large measure to the anticipated decline from certain of the Company's properties, particularly the shallow reservoir horizontal wells located at the Eugene Island Block 295 field in the Gulf of Mexico, that was not entirely offset by new production resulting from the Company's continued offshore drilling and workover program, particularly its recent successes on South Pass Block 78, which it operates. As of May 1, 1996, the Company was not a party to any natural gas futures contracts. Prices received by the Company for its crude oil and condensate production during the first quarter of 1996 averaged $19.61 per barrel, an increase of approximately 12% from the average price of $17.52 per barrel that the Company received for its crude oil and condensate production during the first quarter of 1995. The Company's crude oil and condensate production during the first quarter - 8 - Pogo Producing Company and Subsidiaries Management's Discussion and Analysis of Financial Condition and Results of Operations (Continued) of 1996 averaged 11,889 barrels per day, essentially equal to an average of 11,942 barrels per day during the first quarter of 1995. As of May 1, 1996, the Company was not a party to any crude oil swap agreements. Liquid products are often extracted from natural gas streams and sold seperately as NGL. In addition, the Company's oil and gas revenues for the first quarter of 1996 and the first quarter of 1995 also reflect adjustments for various miscellaneous items. The Company's NGL and other, net revenues for the first quarter of 1996 increased $303,000 from those reported in the first quarter of 1995. The increase in the Company's NGL revenues for the first quarter of 1996, compared to the first quarter of 1995, primarily resulted from increased prices that the Company received for its NGL production and various miscellaneous net income items that was not entirely offset by decreased NGL production volumes. The Company's average liquid hydrocarbons (including crude oil, condensate and NGL) production during the first quarter of 1996 was 13,874 barrels per day, a decrease of approximately 2% from an average liquid hydrocarbons production of 14,227 barrels per day during the first quarter of 1995. The decline in the Company's average liquid hydrocarbon production during the first quarter of 1996, compared to the first quarter of 1995, primarily resulted from the decline in the Company's NGL production, which more closely parallels the Company's natural gas production than it does its crude oil and condensate production. Lease operating expenses for the first quarter of 1996 were $8,875,000, an increase of approximately 5% from lease operating expenses of $8,487,000 for the first quarter of 1995. The increase in lease operating expenses for the first quarter of 1996, compared to the first quarter of 1995, resulted primarily from increased costs to the Company (and the entire offshore oil industry) because of an increasing shortage of qualified offshore service contractors, which has permitted such contractors to increase the costs of their services significantly in the last year, together with increased severance taxes resulting from increased production from certain of the Company's properties that have higher severance tax obligations. General and administrative expenses for the first quarter of 1996 were $5,421,000, an increase of approximately 25% from general and administrative expenses of $4,341,000 for the first quarter of 1995. The increase in general and administrative expenses for the first quarter of 1996, compared to the first quarter of 1995, was related to, among other things, a non-recurring settlement made in connection with the termination of a contract, an increase in the Company's work force resulting from the Company's increased exploration and production related activities and normal salary and concomitant benefit expense adjustments, that were not entirely offset by decreases in various general - 9 - Pogo Producing Company and Subsidiaries Management's Discussion and Analysis of Financial Condition and Results of Operations (Continued) and administrative expense items, principal among which was a decrease in the Company's insurance premiums. Exploration expenses consist primarily of delay rentals and geological and geophysical costs which are expensed as incurred. Exploration expenses for the first quarter of 1996 were $3,910,000, an increase of approximately 184% from exploration expenses of $1,375,000 for the first quarter of 1995. The increase in exploration expenses for the first quarter of 1996, compared to the first quarter of 1995, resulted primarily from increased geophysical activity by the Company, principally including the cost of conducting and processing certain proprietary 3-D seismic surveys on Company leases in South Louisiana and East Texas and, to a lesser extent, the acquisition of non-proprietary 3-D seismic data in the Gulf of Mexico, for which there were no comparable first quarter 1995 expenses. Dry hole and impairment expenses relate to costs of unsuccessful wells drilled, along with impairments due to decreases in expected reserves from producing wells. The Company's dry hole and impairment expenses for the first quarter of 1996 were $2,550,000, an increase of approximately 79% from dry hole and impairment expenses of $1,428,000 for the first quarter of 1995. The Company accounts for its oil and gas activities using the successful efforts method of accounting. Under the successful efforts method, lease acquisition costs and all development costs are capitalized. Proved properties are reviewed whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Unproved properties are reviewed quarterly, with any such impairment charged to expense in the period. Exploratory drilling costs are capitalized until the results are determined. If proved reserves are not discovered, the exploratory drilling costs are expensed. Other exploratory costs are expensed as incurred. The provision for depreciation, depletion and amortization ("DD&A") is based on the capitalized costs, as determined in the preceding paragraph, plus future costs to abandon offshore wells and platforms, and is determined on a cost center by cost center basis using the units of production method. The Company's DD&A expense for the first quarter of 1996 was $15,713,000, a decrease of approximately 15% from DD&A expense of $18,457,000 for the first quarter of 1995. The decrease in the Company's DD&A expense for the first quarter of 1996, compared to the first quarter of 1995, resulted primarily from decreased production of oil and gas from the Company's properties and, to a lesser extent, a slight decrease in the Company's DD&A rate. The composite DD&A rate for all of the Company's producing fields for the first quarter of 1996 was $0.877 per equivalent Mcf ($5.26 per equivalent barrel), a decrease of approximately 1% from a composite DD&A rate of $0.882 per equivalent Mcf ($5.29 per equivalent barrel) for the first quarter of 1995. The decrease in the composite DD&A rate for all of the Company's producing fields for the first quarter of 1996, compared with the first quarter of 1995, resulted primarily from an increased - 10 - Pogo Producing Company and Subsidiaries Management's Discussion and Analysis of Financial Condition and Results of Operations (Continued) percentage of the Company's production coming from certain of the Company's fields that have DD&A rates that are lower than the Company's recent historical composite rate and a corresponding decrease in the percentage of the Company's production from fields that have DD&A rates that are higher than the Company's recent historical composite DD&A rate. The Company produced 17,696,000 equivalent Mcf (2,949,000 equivalent barrels) during the first quarter of 1996, a decrease of approximately 15% from the 20,749,000 equivalent Mcf (3,458,000 equivalent barrels) produced by the Company during the first quarter of 1995. Interest charges for the first quarter of 1996 were $3,012,000, an increase of approximately 8% from interest charges of $2,791,000 for the first quarter of 1995. The increase in interest charges for the first quarter of 1996, compared to the first quarter of 1995, resulted primarily from an increase in the amount of debt outstanding, that was partially offset by a decrease in loan commitment fees (attributable, in part, to a voluntary decrease by the Company in the commitment amount under the Company's revolving loan facility and, in part, to a decreased fee structure on such facility that was negotiated in 1995), as well as lower average interest rate levels on the debt outstanding. Capitalized interest expense for the first quarter of 1996 was $826,000, an increase of approximately 478% from capitalized interest expense of $143,000 for the first quarter of 1995. The increase in capitalized interest expense for the first quarter of 1996, compared to the first quarter of 1995, resulted primarily from the requirement to capitalize interest expense attributable to capital expenditures on non-producing properties, principally capital expenditures related to the Company's development of the Tantawan field in the Gulf of Thailand. As of April 1, 1996, the Company was a party to an interest rate swap agreement. The swap agreement, which terminates on March 10, 1998, effectively changes the interest rate paid by the Company on $5,000,000 of debt from a market based variable rate to a fixed rate of 7.2%. Income tax expense for the first quarter of 1996 was $3,147,000, an increase of approximately 87% from income tax expense of $1,684,000 for the first quarter of 1995. The increase in income tax expense for the first quarter of 1996, compared to the first quarter of 1995, resulted primarily from increased pretax income. Liquidity and Capital Resources - The Company's Condensed Consolidated Statement of Cash Flows for the three months ended March 31, 1996 reflects net cash provided by operating activities of $21,659,000. In addition to net cash provided by operating activities, the Company received $1,871,000 from the exercise of stock options and $100,000 from the sale of certain non-strategic properties. The Company also had net borrowings of $8,000,000 under its revolving credit facility. - 11 - Pogo Producing Company and Subsidiaries Management's Discussion and Analysis of Financial Condition and Results of Operations (Continued) During the first three months of 1996, the Company invested $22,753,000 of such cash flow in capital projects and paid $989,000 ($0.03 per share) in cash dividends to holders of the Company's common stock. Of the $22,753,000 invested in capital projects, $22,309,000 was applicable to 1995 capital projects and $444,000 was applicable to 1996 capital projects. As of March 31, 1996, the Company's cash and cash investments were $12,369,000 and its long-term debt stood at $171,249,000. The Company's capital and exploration budget for 1996, which does not include any amounts which may be expended for the purchase of proved reserves or any interest which may be capitalized resulting from projects in progress, was established by the Company's Board of Directors at $165,000,000. In addition to anticipated capital and exploration expenses, other material 1996 cash requirements that the Company currently anticipates include ongoing operating, general and administrative, income tax, and interest expense, a $3,000,000 sinking fund payment on the 8% Debentures and payments of dividends on its common stock, including a $.03 per share dividend on its common stock to be paid on May 24, 1996, to stockholders of record as of May 10, 1996. The Company currently anticipates that cash provided by operating activities and funds available under its revolving credit facility and uncommitted money market credit lines will be sufficient to fund the Company's ongoing expenses, its 1996 capital and exploration budget and anticipated future dividend payments. The declaration and payment of future dividends will depend upon, among other things, the Company's future earnings and financial condition, liquidity and capital requirements, the general economic and regulatory climate and other factors deemed relevant by the Company's Board of Directors. - 12 - Pogo Producing Company and Subsidiaries Part II. Other Information Item 6. Exhibits and Reports on Form 8-K (A) Exhibits None (B) Reports on Form 8-K A report on Form 8-K was filed on February 9, 1996 setting forth under Item 5 thereof, certain information regarding the time and location of the registrant's annual meeting of stockholders. -13- Pogo Producing Company and Subsidiaries 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. Pogo Producing Company (Registrant) /s/ THOMAS E. HART Thomas E. Hart Vice President and Controller /s/ JOHN W. ELSENHANS John W. Elsenhans Vice President and Treasurer Date: May 3, 1996 -14- EX-27 2 FINANCIAL DATA SCHEDULE
5 This Financial Data Schedule contains summary financial information extracted from the Consolidated Financial Statements (Unaudited) of Pogo Producing Company, including the Consolidated Balance Sheets as of March 31, 1996 and the Consolidated Statements of Income for the three months ended March 31, 1996, and is qualified in its entirety by reference to such Consolidated Financial Statements. 1,000 3-MOS DEC-31-1996 MAR-31-1996 12,369 0 44,130 0 8,040 64,805 1,030,107 771,078 338,137 35,626 171,249 33,143 0 0 46,384 338,137 48,217 48,052 8,875 8,875 27,594 0 3,012 9,412 3,147 6,265 0 0 0 6,265 .19 .19 This amount is not disclosed on the face of the Consolidated Financial Statements due to lack of materiality, but is included as a contra-asset in Accounts Receivable. Does not include Gains (Losses) on Property Sales. Includes Lease Operating Expense, but excludes General and Administrative, Exploration, Dry Hole and Impairment and Depreciation, Depletion and Amortization Expenses. Includes General and Administrative, Exploration, Dry Hole and Impairment and Depreciation, Depletion and Amortization Expenses. This amount is not disclosed on the face of the Consolidated Financial Statements due to lack of materiality, but is included in Oil and Gas Revenues.
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