-----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, Dm0X+QzlXXH8U+Lw7muqIZiU59qluRya02xlTNs+I1A/yjO+sCxYP7j/Avjph7Tl lTZbH2X1wXQJyx2/6/JY/Q== 0000950134-96-000171.txt : 19960521 0000950134-96-000171.hdr.sgml : 19960521 ACCESSION NUMBER: 0000950134-96-000171 CONFORMED SUBMISSION TYPE: DEF 14A PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19960223 FILED AS OF DATE: 19960123 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: PANHANDLE ROYALTY CO CENTRAL INDEX KEY: 0000315131 STANDARD INDUSTRIAL CLASSIFICATION: 1311 IRS NUMBER: 731055775 STATE OF INCORPORATION: OK FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: DEF 14A SEC ACT: 1934 Act SEC FILE NUMBER: 000-09116 FILM NUMBER: 96506273 BUSINESS ADDRESS: STREET 1: 5400 NW GRAND BLVD STREET 2: GRAND CENTRE STE 210 CITY: OKLAHOMA CITY STATE: OK ZIP: 73112 BUSINESS PHONE: 4059481560 DEF 14A 1 DEFINITIVE PROXY STATEMENT 1 SCHEDULE 14A (RULE 14A-101) INFORMATION REQUIRED IN PROXY STATEMENT SCHEDULE 14A INFORMATION PROXY STATEMENT PURSUANT TO SECTION 14(A) OF THE SECURITIES EXCHANGE ACT OF 1934 (AMENDMENT NO. ) Filed by the Registrant / / Filed by a Party other than the Registrant / / Check the appropriate box: / / Preliminary Proxy Statement / / Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) /X/ Definitive Proxy Statement / / Definitive Additional Materials / / Soliciting Material Pursuant to Section 240.14a-11(c) or Section 240.14a-12 Panhandle Royalty Company - - -------------------------------------------------------------------------------- (Name of Registrant as Specified in its Charter) - - -------------------------------------------------------------------------------- (Name of Person(s) Filing Proxy Statement, if other than the Registrant) Payment of Filing Fee (Check the appropriate box): /X/ $125 per Exchange Act Rules 0-11(c)(1)(ii), 14a-6(i)(1), or 14a-6(i)(2) or Item 22(a)(2) of Schedule 14A. / / $500 per each party to the controversy pursuant to Exchange Act Rule 14a-6(i)(3). / / Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and 0-11. (1) Title of each class of securities to which transaction applies: - - -------------------------------------------------------------------------------- (2) Aggregate number of securities to which transaction applies: - - -------------------------------------------------------------------------------- (3) Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (Set forth the amount on which the filing fee is calculated and state how it was determined): - - -------------------------------------------------------------------------------- (4) Proposed maximum aggregate value of transaction: - - -------------------------------------------------------------------------------- (5) Total fee paid: - - -------------------------------------------------------------------------------- / / Fee paid previously with preliminary materials. / / Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing. (1) Amount Previously Paid: - - -------------------------------------------------------------------------------- (2) Form, Schedule or Registration Statement No.: - - -------------------------------------------------------------------------------- (3) Filing Party: - - -------------------------------------------------------------------------------- (4) Date Filed: - - -------------------------------------------------------------------------------- 2 NOTICE OF ANNUAL SHAREHOLDERS MEETING TO BE HELD FEBRUARY 23, 1996 Notice is hereby given that the annual meeting of the shareholders of Panhandle Royalty Company (the "Company") will be held at the Marriott Hotel, 3233 N.W. Expressway, Oklahoma City, Oklahoma, on February 23, 1996, at 9:00 A.M., for the following purposes: 1. To elect three directors; 2. To ratify the selection of Ernst & Young as independent auditors for the Company; 3. To consider and act upon any other matter which may properly come before the meeting or any adjournment thereof. Shareholders of record at the close of business on January 11, 1996, shall be entitled to vote at the meeting. IF YOU DO NOT EXPECT TO ATTEND THE MEETING IN PERSON, PLEASE MARK, DATE AND SIGN THE ENCLOSED PROXY CARD AND RETURN IT IN THE PREPAID ENVELOPE ENCLOSED FOR YOUR CONVENIENCE. YOUR VOTE IS IMPORTANT. By order of the board of directors /s/ Michael C. Coffman ---------------------------------- Michael C. Coffman, Secretary Oklahoma City, Oklahoma January 23, 1996 3 PANHANDLE ROYALTY COMPANY GRAND CENTRE, SUITE 210 5400 N.W. GRAND BOULEVARD OKLAHOMA CITY, OK 73112 JANUARY 23, 1996 PROXY STATEMENT The accompanying proxy is solicited by the board of directors of Panhandle Royalty Company (the "Company") for use at the annual meeting of shareholders (the "meeting") to be held Friday, February 23, 1996, and at any adjournment(s) thereof. When the proxy is properly executed and returned, the shares it represents will be voted at the meeting in accordance with any directions noted thereon. If no direction is indicated, it is the intention of the persons named on the enclosed proxy to vote the proxy for the nominees for director set forth thereon, and for the ratification of the selection of Ernst & Young, as independent auditors for the Company. Should other matters come before the meeting, the proxy will be voted as the board of directors of the Company may, in its discretion, determine. If the enclosed form of proxy is executed and returned, it nevertheless may be revoked at any time before it is exercised, by signing and sending to the Company a later dated proxy or a written revocation, or by attending the meeting and voting in person. The mailing address of the Company is Grand Centre, Suite 210, 5400 N. W. Grand Blvd., Oklahoma City, OK 73112. It is anticipated that the proxies and proxy statements will be mailed to shareholders on or about January 23, 1996. The cost of the solicitation will be borne by the Company. It is not contemplated that the solicitation will be other than by mail. VOTING SECURITIES The articles of incorporation of the Company provide for one vote for each owner of class A common stock, irrespective of the number of shares of class A common stock owned by the shareholder. At the meeting, unless specifically provided otherwise by the Oklahoma General Corporation Act, each holder of class A common stock shall be entitled to cast one vote. Votes may be cast by shareholders either in person or by proxy. The owner of class B common stock has no voting rights. All holders of class A common stock of record at the close of business January 11, 1996, shall be eligible to vote. As of January 11, 1996, there were 675,067 shares of the Company's class A common stock of record, held by 2,240 shareholders. To the best knowledge of the Company, no individual or group, as defined in Section 13(d)(3) of the Securities Exchange Act of 1934, owns, beneficially or of record, more than five percent of its voting stock. The holders of a majority of shares of class A common stock issued and outstanding must be present at the meeting, in person or by proxy, to constitute a quorum. A proxy is enclosed for your signature. Please return it immediately, dated and signed exactly as the stock appears in your name. If stock is held in joint tenancy, both joint tenants should sign the proxy card. Proxies for stock held by a corporation should be signed in the full corporate name, by the president or other authorized officer. In the event the record owner of stock is deceased, the personal representative, executor or administrator should sign the proxy and a certified copy of the letters of appointment should be attached to the proxy. The Company knows of no arrangement, the operation of which would result in a change in control of the Company at any future date. (1) 4 SECURITY OWNERSHIP OF MANAGEMENT The following table sets forth, as of January 11, 1996, the number of shares of the Company's class A common stock beneficially owned by each director and nominee for director of the Company, and by all directors and officers of the Company as a group, the nature of the beneficial ownership of such shares, and the percent of the outstanding shares of such stock represented by the number of shares owned by such person or group:
Amount and Nature Percent of Director or Group of Beneficial Ownership Class - - ----------------- ----------------------- ---------- Dean Brown 1,250 shares, sole voting * and investment powers Michael A. Cawley 100 shares, sole voting * and investment powers Sam J. Cerny 100 shares, sole voting * and investment powers E. Chris Kauffman 3,100 shares, shared voting * and investment powers H W Peace II 5,635 shares, shared voting * and investment powers Robert A. Reece 5,848 shares, sole voting * and investment powers Jerry L. Smith 7,024 shares, sole voting 1.0% and investment powers All directors and 7,656 shares, shared voting 1.1% officers as a and investment powers group (9 persons) 23,366 shares, sole voting 3.4% and investment powers 31,022 shares, total 4.6%
* Less than 1% owned PROPOSAL NUMBER ONE: ELECTION OF DIRECTORS The following persons are the present directors of the Company:
Positions and Offices Served As Presently Held with Director Present Name Age the Company Since Term Ends - - ---- --- --------------------- --------- --------- Dean Brown 68 Director, Chairman of 1983 Feb. 1998the Board Michael A. Cawley 48 Director 1991 Feb. 1998 Sam J. Cerny 63 Director 1993 Feb. 1997 E. Chris Kauffman 55 Director 1991 Feb. 1997 H W Peace II 60 Director, Chief 1991 Feb. 1996 Executive Officer and President Robert A. Reece 51 Director 1986 Feb. 1996 Jerry L. Smith 55 Director 1987 Feb. 1996
All those named above also hold office in the Company's inactive subsidiary, PHC, Inc. (2) 5 There are three vacancies for three year terms beginning February 1996. Nominees for the vacancies are H W Peace II, Robert A. Reece and Jerry L. Smith. The board of directors of the Company has no reason to believe that any of the nominees will be unable to serve as director. However, if any nominee should be unable, for any reason, to accept nomination or election, it is the intention of the persons named in the enclosed proxy to vote those proxies for the election of such other person, or persons, as the board of directors of the Company may, in its discretion, determine. THE DIRECTORS RECOMMEND THAT THE SHAREHOLDERS ELECT H W PEACE II, ROBERT A. REECE AND JERRY L. SMITH The following is a list of the current executive officers of the Company, all of whom hold office at the discretion of the board of directors. Any officer may be removed from office, with or without cause, at any time by the board of directors.
Positions and Offices Presently Held with Officer Name Age the Company Since Dean Brown 68 Chairman of the Board 1991 H W Peace II 60 Director, Chief Executive 1991 Officer and President Michael C. Coffman 42 Vice-President, Secretary 1990 and Treasurer Wanda C. Tucker 59 Vice-President of Land 1990
All those named above also hold office in the Company's inactive subsidiary, PHC, Inc. INFORMATION REGARDING NOMINEES, DIRECTORS AND OFFICERS Dean Brown is an attorney and certified public accountant. He has been engaged in the practice of law since 1957, and is a member of the law firm of Green, Brown and Stark, in Oklahoma City. Michael A. Cawley is an attorney and is the president and chief executive officer of the Samuel Roberts Noble Foundation, Inc. Prior to joining the Noble Foundation, he was engaged in the practice of law in Ardmore, Oklahoma, with the firm of Thompson & Cawley. He is also a director of Noble Drilling Corporation and Noble Affiliates, Inc. Sam J. Cerny is a geological engineer and has been employed by Shell Oil Company, Cleary Petroleum Corporation and it's successor company, Grace Petroleum Corporation, where he served as President/CEO from 1976 to 1991. He is a past president of the Oklahoma Independent Petroleum Association and is active as a petroleum management consultant. E. Chris Kauffman is a vice-president of Campbell-Kauffman, Inc., an independent insurance agency in Oklahoma City. The agency was formed in 1981. He is also advisory director of Memorial Bank of Oklahoma City and trustee of the Central Oklahoma Transportation & Parking Authority. Robert A. Reece is an attorney, of counsel with the firm of Crowe & Dunlevy. He is active in the management of his family's investments. H W Peace II holds bachelors and masters degrees in geology. For 31 years he has been employed as a geologist, in management or as an officer and/or director in the petroleum industry. He has been employed by Union Oil Company of California, Cotton Petroleum, and Hadson Petroleum Corporation. (3) 6 Jerry L. Smith is owner of Smith Capital Corporation in Dallas. This corporation is a private investment firm focusing on commercial real estate and securities. Mr. Smith also serves as Treasurer and as a Director of the Association of Graduates of the United States Air Force Academy. Michael C. Coffman is a certified public accountant. Since 1975, he has worked in public accounting and as a financial officer of three publicly owned companies involved in the oil and gas industry. Wanda C. Tucker has been a full-time employee of the Company since 1978 and has served in various positions with the Company and is currently vice president of land. None of the organizations described in the business experiences of the Company directors and officers are parents, subsidiaries, or affiliates of Panhandle Royalty Company. The board of directors has three committees. The audit committee is composed of three directors; Sam J. Cerny, Robert A. Reece, and Jerry L. Smith, all of whom are outside directors. The audit committee recommends engagement of the independent auditors, considers the fee arrangement and audit results, reviews the Company's financial statements, and considers the comments of the auditors on internal controls. This committee met one time during the last fiscal year. A compensation committee composed of three directors, Michael A. Cawley, E. Chris Kauffman and H W Peace II, met one time during 1995. The committee reviews officer performance, and recommends compensation amounts for officers and directors. The retirement committee composed of Dean Brown, E. Chris Kauffman, Robert A. Reece and Michael C. Coffman, Vice President, oversee the administration of the Company's Employee Stock Ownership Plan. This committee met once during the year. During the fiscal year ended September 30, 1995, the board of directors held six meetings. At each meeting a quorum of directors were present. REMUNERATION OF DIRECTORS AND EXECUTIVE OFFICERS The following table sets forth the remuneration received by the Company's executive officers for services, in all capacities, to the Company and its subsidiary during the fiscal year ended September 30, 1995. SUMMARY COMPENSATION TABLE
Name and All Principal Other Position Year Salary Bonus Compensation - - ------------ ---- ------ ----- ------------ H W Peace II 1995 $103,600 $15,600 $ 17,880 (1) President & 1994 $98,750 $15,500 $ 17,146 (1) Chief Exec. 1993 $95,000 $10,500 $ 15,825 (1) officer
(1) Represents value of 1,052 shares for 1995, 1,079 shares for 1994, and 1,217 shares for 1993 of Company stock contributed to the Panhandle Employee Stock Ownership Plan (ESOP) on Mr. Peace's behalf. The ESOP is a defined contribution plan, non-voluntary and non-contributory and serves as the retirement plan for the Company's employees. Contributions are at the discretion of the board of directors and, to date, all contributions have been made in shares of Company stock. Contributions are allocated to all participants in proportion to their salaries for the plan year and 100% vesting occurs after three years' of service. (4) 7 Outside directors are paid $750, plus travel expenses, for attending each meeting of the board of directors and $200 for each committee meeting of the board. Any director who must travel in excess of 50 miles to attend a meeting receives an additional $100 for each meeting. Effective November 1, 1994 outside directors can elect to be included in the Panhandle Royalty Company Deferred Compensation Plan For Non-Employee Directors (the "Plan"). The Plan provides that each eligible director can individually elect to receive shares of Company stock rather than cash for board meeting fees and board committee meeting fees. These unissued shares are credited to each directors deferred fee account at the fair market value of the shares on the date of the meeting. Upon retirement, termination or death of the director, or upon a change in control of the Company, the shares accrued under the Plan will be either issued to the director or may be converted to cash, at the directors' discretion, at the fair market value of the shares on the conversion date, as defined. In addition to the above, Dean Brown, chairman of the board of directors, who is not an employee of the Company, is entitled to receive a $100 per hour fee for time spent, other than board or committee meetings, on Company business. During 1995 and 1994, no payments were made to Mr. Brown under this arrangement. PROPOSAL NUMBER TWO: SELECTION OF INDEPENDENT AUDITORS The board of directors of the Company has selected the certified public accounting firm of Ernst & Young as independent auditors to be employed by the Company, subject to ratification by the shareholders of the Company at the meeting. Ernst & Young served as independent auditors for the Company during the Company's last fiscal period. A vote of the majority of the shareholders present at the meeting, in person or by proxy, is required for approval of this proposal. A representative of Ernst & Young is expected to be present at the meeting to respond to appropriate questions, and will have an opportunity to make a statement if so desired. THE DIRECTORS RECOMMEND THAT THE SHAREHOLDERS RATIFY THE SELECTION OF ERNST & YOUNG AS INDEPENDENT AUDITORS ANNUAL FINANCIAL REPORT Copies of the annual report to shareholders for the fiscal year ended September 30, 1995 are being mailed simultaneously with this proxy statement. OTHER MATTERS The board of directors of the Company is aware of no other matters which may come before the annual meeting. If any such matters should properly come before the meeting, it is the intention of the persons named in the enclosed proxy to vote such proxy as the board of directors may, in its discretion, determine. FUTURE PROPOSALS If a shareholder wishes to submit a proposal for presentation at the 1997 annual meeting of shareholders, such proposal must be received at the Company's principal office on or before September 25, 1996, if it is to be included in the Company's Proxy Statement for that meeting. (5) 8 FORM 10-KSB A copy of the annual report to the Securities and Exchange Commission on FORM 10-KSB is available, free of charge, upon request made to: Michael C. Coffman, Secretary Panhandle Royalty Company 5400 N.W. Grand Blvd. - Suite #210 Oklahoma City, OK 73112 By Order of the Board of Directors /s/ Michael C. Coffman ---------------------------------- Michael C. Coffman, Secretary January 23, 1996 (6) 9 (FRONT OF CARD) P R O X Y PANHANDLE ROYALTY COMPANY, GRAND CENTEE #210, 5400 N.W. GRAND BLVD., OKLAHOMA CITY, OK 73112 THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS The undersigned hereby appoint Diane M. Coleman, Dorretta K. Moore, Wanda C. Tucker, and each of them, proxies and authorize them to represent and to cast a vote for the undersigned on each proposal, as designated below, at the annual meeting of stockholders to be held on February 23, 1996, or any adjournments thereof. Should other matters properly come before the meeting, the proxies are further authorized to vote thereon as the Board of Directors may, in its discretion, direct. 1. ELECTION OF DIRECTORS (Three vacancies, each for a 3-year term) H W Peace II [ ] FOR [ ] WITHHOLD AUTHORITY TO VOTE FOR Robert A. Reece [ ] FOR [ ] WITHHOLD AUTHORITY TO VOTE FOR Jerry L. Smith [ ] FOR [ ] WITHHOLD AUTHORITY TO VOTE FOR
2. Proposal to ratify selection of Ernst & Young, as independent auditors for the Company. ___ [ ] FOR [ ] AGAINST [ ] WITHHOLD AUTHORITY TO VOTE FOR
(Please sign on reverse side) (BACK OF CARD) THIS PROXY, WHEN PROPERLY EXECUTED, WILL BE VOTED IN THE MANNER DIRECTED HEREIN BY THE UNDERSIGNED STOCKHOLDER. IF NO DIRECTION IS GIVEN, THIS PROXY WILL BE VOTED FOR THE NOMINEES AND FOR PROPOSAL 2. PLEASE SIGN EXACTLY AS NAME APPEARS BELOW Dated: 1996. --------------- ----------------------------- Signature ----------------------------- Signature, if held jointly When shares are held by joint tenants, both should sign. When signing as attorney, as executor, administrator, trustee, or guardian, please give full title as such. If a corporation, please sign in full corporate name by President or other authorized officer. If a partnership, please sign in partnership name by authorized person. -----END PRIVACY-ENHANCED MESSAGE-----