0000950129-01-503615.txt : 20011029
0000950129-01-503615.hdr.sgml : 20011029
ACCESSION NUMBER: 0000950129-01-503615
CONFORMED SUBMISSION TYPE: 8-K
PUBLIC DOCUMENT COUNT: 2
CONFORMED PERIOD OF REPORT: 20011024
ITEM INFORMATION: Other events
ITEM INFORMATION: Financial statements and exhibits
FILED AS OF DATE: 20011024
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: 8-K
SEC ACT: 1934 Act
SEC FILE NUMBER: 001-07792
FILM NUMBER: 1764759
BUSINESS ADDRESS:
STREET 1: 5 GREENWAY PLAZA STE 2700
STREET 2: P O BOX 2504
CITY: HOUSTON
STATE: TX
ZIP: 77252-0504
BUSINESS PHONE: 7132975000
MAIL ADDRESS:
STREET 1: 5 GREENWAY PLAZA SUITE 2700
STREET 2: P O BOX 2504
CITY: HOUSTON
STATE: TX
ZIP: 77252
FORMER COMPANY:
FORMER CONFORMED NAME: PENNZOIL OFFSHORE GAS OPERATORS INC /TX/
DATE OF NAME CHANGE: 19600201
8-K
1
h91492e8-k.txt
POGO PRODUCING COMPANY - OCTOBER 24, 2001
================================================================================
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
------------------------------
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): OCTOBER 24, 2001
------------------------------
POGO PRODUCING COMPANY
(Exact name of registrant as specified in its charter)
DELAWARE 1-7792 74-1659398
(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation) Identification No.)
5 GREENWAY PLAZA, SUITE 2700
HOUSTON, TEXAS 77046-0504
(Address of principal executive offices and zip code)
Registrant's telephone number, including area code: (713) 297-5000
------------------------------
================================================================================
ITEM 5. OTHER EVENTS.
Pogo Producing Company is filing as an exhibit to this current report
on Form 8-K the Unaudited Pro Forma Condensed Consolidated Statement of Income
for the Nine Months Ended September 30, 2001 and related notes, giving effect to
the merger of NORIC Corporation, the parent of North Central Oil Corporation,
with and into Pogo Producing Company. See Exhibit 99.1 incorporated by reference
herein.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits.
EXHIBIT NUMBER DESCRIPTION
-------------- -----------
99.1 Unaudited Pro Forma Condensed Consolidated Statement
of Income for the Nine Months Ended September 30, 2001
and related notes, giving effect to the merger of NORIC
Corporation, the parent of North Central Oil
Corporation, with and into Pogo Producing Company.
2
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 hereunto duly authorized.
POGO PRODUCING COMPANY
Date: October __, 2001 By: /s/ THOMAS E. HART
-------------------------------------
Thomas E. Hart
Vice President
and Chief Accounting Officer
EXHIBIT INDEX
EXHIBIT NUMBER DESCRIPTION
-------------- -----------
99.1 Unaudited Pro Forma Condensed Consolidated Statement
of Income for the Nine Months Ended September 30, 2001
and related notes, giving effect to the merger of NORIC
Corporation, the parent of North Central Oil
Corporation, with and into Pogo Producing Company.
EX-99.1
3
h91492ex99-1.txt
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STMT
EXHIBIT 99.1
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF INCOME
The following unaudited pro forma condensed consolidated statement of income
gives effect to the merger of NORIC Corporation, a New York corporation
("NORIC"), the parent company of North Central Oil Corporation, a Delaware
corporation ("North Central"), with and into Pogo Producing Company, a Delaware
corporation ("Pogo"), with Pogo remaining as the surviving corporation. The
merger was effective on March 14, 2001. Pursuant to the merger agreement among
Pogo and NORIC and certain NORIC shareholders, dated as of November 19, 2000,
former shareholders received 12,615,816 shares of Pogo's common stock and
approximately $344,711,000 in cash. Since NORIC had disposed of all of its
non-oil and gas assets and operations other than its investment in North Central
and cash and cash equivalents generated from the disposition of the non-oil and
gas assets, the following unaudited pro forma condensed consolidated statement
of income is based on the historical income statement for North Central for the
period from January 1, 2001 through March 13, 2001. Commencing March 14, 2001,
North Central's operations are consolidated with the operations of Pogo.
The unaudited pro forma condensed consolidated statement of income presents the
consolidated results of operations of Pogo and North Central as if the proposed
merger had occurred on January 1, 2001.
The accompanying unaudited pro forma condensed consolidated statement of income
reflects the acquisition of NORIC by Pogo under the purchase method of
accounting. Accordingly, the purchase price was allocated to the net assets
acquired based on their estimated fair market values at the date of acquisition.
Such allocations are based on preliminary information and are subject to change
when final valuations are obtained.
The unaudited pro forma condensed consolidated statement of income is presented
for illustration purposes only, and does not necessarily indicate the operating
results that would have occurred if the merger had been completed as of January
1, 2001. The unaudited pro forma condensed consolidated statement of income is
not necessarily indicative of future operating results of the consolidated
enterprise.
The unaudited pro forma condensed consolidated statement of income should be
read in conjunction with the historical consolidated financial statements,
including the notes thereto, of Pogo included in Pogo's Quarterly Report on Form
10-Q for the quarter ended September 30, 2001. The unaudited condensed
consolidated statement of income does not reflect any cost savings or other
synergies anticipated as a result of the merger, nor does it reflect any
merger-related expenses.
POGO PRODUCING COMPANY AND SUBSIDIARIES
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF INCOME
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001
(EXPRESSED IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
NORTH PRO FORMA PRO FORMA
POGO CENTRAL ADJUSTMENTS COMBINED
--------- -------- ----------- ---------
Revenues:
Oil and gas sales ............................. $ 468,002 $ 62,852 $ 530,854
Pipeline sales and other ...................... 10,302 138 10,440
Gains (losses) on sales ....................... 4,487 (10) 4,477
--------- -------- -------- ---------
Total ..................................... 482,791 62,980 545,771
--------- -------- -------- ---------
Operating Costs and Expenses:
Lease operating ............................... 87,462 7,588 95,050
Pipeline operating and natural gas purchases .. 10,258 -- 10,258
General and administrative .................... 29,139 23,938 $ (4,933)(a) 30,522
(6,098)(a)
(11,524)(a)
Exploration ................................... 17,447 465 17,912
Dry hole and impairment ....................... 26,097 3,093 29,190
Depreciation, depletion and amortization ...... 146,286 7,205 11,607 (b) 165,098
--------- -------- -------- ---------
Total ..................................... 316,689 42,289 (10,948) 348,030
--------- -------- -------- ---------
Operating Income .................................. 166,102 20,691 10,948 197,741
Interest:
Charges ....................................... (41,411) (2,626) (3,792)(c) (47,829)
Income ........................................ 2,686 -- 2,686
Capitalized ................................... 24,153 -- 24,153
Minority Interest ................................. (7,499) -- (7,499)
Foreign Currency Transaction Loss ................. (668) -- (668)
--------- -------- -------- ---------
Income Before Taxes .............................. 143,363 18,065 7,156 168,584
Income Tax Benefit (Expense) ...................... (56,835) (10,356) 1,529 (d) (65,662)
--------- -------- -------- ---------
Net Income ........................................ $ 86,528 $ 7,709 $ 8,685 $ 102,922
========= ======== ======== =========
EARNINGS PER COMMON SHARE
Basic $ 1.72 $ 1.92
Diluted $ 1.57 $ 1.75
WEIGHTED AVERAGE NUMBER OF COMMON SHARES
AND POTENTIAL COMMON SHARES OUTSTANDING:
Basic 50,239 3,280 53,519
Diluted 60,068 3,280 63,348
See accompanying notes to unaudited pro forma condensed consolidated statement of income
POGO PRODUCING COMPANY AND SUBSIDIARIES
NOTES TO UNAUDITED PRO FORMA CONDENSED CONSOLIDATED
STATEMENT OF INCOME
a. To eliminate the North Central merger, phantom share and severance expenses
that were settled immediately prior to the merger, pursuant to terms of the
merger agreement. After the merger Pogo did not offer benefits to the former
employees of North Central which were comparable to, or which would replace,
the phantom share plan.
b. To record additional depreciation, depletion and amortization expense based
on the fair value paid for North Central's properties and equipment.
c. To record interest expense on the acquisition debt that was funded using
Pogo's 8.25% Senior Subordinated Notes, due 2011 and Pogo's revolving bank
credit agreement at an average interest rate of 5.2%. A 1/8% increase or
decrease in the interest rate would change interest expense $49,125 for the
nine months ended September 30, 2001.
d. To record income tax effect on the pro forma adjustments based on the 35%
statutory income tax rate, adjusted for the non-deductibility of certain
merger related expenses.