-----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, P0oXWYlb4/Dsn2RKgAZMLcmxbNKguLpsk4Ib85cUv8exakhlc9EiU0Y5t7PT4+Si h31H/liz5RE2T3R3Qyj+1g== 0000950134-95-003397.txt : 19951221 0000950134-95-003397.hdr.sgml : 19951221 ACCESSION NUMBER: 0000950134-95-003397 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19951214 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19951220 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: K N ENERGY INC CENTRAL INDEX KEY: 0000054502 STANDARD INDUSTRIAL CLASSIFICATION: NATURAL GAS TRANSMISSION & DISTRIBUTION [4923] IRS NUMBER: 480290000 STATE OF INCORPORATION: KS FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-06446 FILM NUMBER: 95603010 BUSINESS ADDRESS: STREET 1: 370 VAN GORDON STREET STREET 2: PO BOX 281304 CITY: LAKEWOOD STATE: CO ZIP: 80228-8304 BUSINESS PHONE: 3039891740 FORMER COMPANY: FORMER CONFORMED NAME: KN ENERGY INC DATE OF NAME CHANGE: 19920430 FORMER COMPANY: FORMER CONFORMED NAME: KANSAS NEBRASKA NATURAL GAS CO INC DATE OF NAME CHANGE: 19830403 8-K 1 FORM 8-K DATED DECEMBER 14, 1995 1 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): DECEMBER 14, 1995 K N ENERGY, INC. (Exact name of registrant as specified in its charter) KANSAS 1-6446 48-0290000 (State or other jurisdiction (Commission File (I.R.S. Employer of incorporation or organization) Number) Identification No.) 370 VAN GORDON STREET P. O. BOX 281304 LAKEWOOD, CO 80228-8304 (Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: (303) 989-1740 1 2 Item 5. Other Events. On December 14, 1995 K N Energy, Inc. announced it's proposed merger of K N's wholly owned oil & gas subsidiary, K N Production Company, into Tom Brown, Inc., as well as the joint formation of a new gas services company, and reference is hereby made to the press release dated December 14, 1995, which is filed herewith as an exhibit and incorporated herein by this reference. Item 7. Financial Statements, Pro-Forma Financial Information and Exhibits. (a) Financial Statements - None (b) Pro-Forma Financial Statements - None (c) Exhibits 1.1 Press release dated December 14, 1995 2 3 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. K N ENERGY, INC. Date: December 18, 1995 By: /s/ William S. Garner, Jr. ----------------------------------- William S. Garner, Jr. Vice President, General Counsel and Secretary 3 4 EXHIBIT INDEX
Exhibit Number Exhibit Description Page - -------------- ------------------- ---- 1.1 Press release dated December 14, 1995
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EX-1.1 2 PRESS RELEASE DATED DECEMBER 14, 1995 1 [K N ENERGY LETTERHEAD] [LOGO] NEWS K N ENERGY AND TOM BROWN, INC. ANNOUNCE NEW JOINT TRANSACTIONS LAKEWOOD, CO / MIDLAND, TX -- K N Energy, Inc. (NYSE - KNE) and Tom Brown, Inc. (NASDAQ - TMBR) today jointly announced the execution of a letter of intent providing for the merger of K N Energy's wholly-owned gas and oil subsidiary, K N Production Company (KNPC), into Tom Brown and the formation of a new gas services company. The merger will be structured as an exchange of 0.9 million shares of Tom Brown common stock and 1.0 million shares of new convertible preferred stock of Tom Brown for all of the common shares of KNPC. The transaction will be treated as a tax-free reorganization and will be accounted for under the purchase method. Upon closing, Tom Brown's Board of Directors will be increased from seven to nine members, with two directors designated by K N Energy. The new company will be created to provide gathering, processing, marketing, storage and field services to Rocky Mountain gas and oil producers and others. It will also pursue the construction or acquisition of gathering, processing and storage assets in areas of the Rocky Mountain region where KNPC or Tom Brown currently own reserves. These areas will include portions of the Wind River Basin in central Wyoming and gas producing areas in western Colorado and southwestern Wyoming. The new company will be jointly owned by K N Energy (55 percent) and Tom Brown (45 percent). K N Energy will serve as operator of the new venture, and the two companies will have equal representation on the managing operating committee. Under the new venture, Tom Brown will dedicate significant amounts of its Rocky Mountain gas production to the new company for gathering, processing and marketing. K N Energy will contribute substantial gas marketing contracts and storage assets in western Colorado. The combined reserves initially dedicated to this new company for marketing are approximately 180 billion cubic feet equivalent (Bcfe). At July 1, 1995, KNPC had proved reserves of approximately 45 Bcfe of gas equivalent located primarily in the Piceance Basin of western Colorado and in the Moxa Arch area of southwestern Wyoming. KNPC's proved reserves are about 90 percent gas and are 80 percent developed. KNPC also holds approximately 170,000 net undeveloped leasehold and mineral acres on which it has identified an inventory of low-risk drilling prospects. "This is a significant strategic alliance for K N in the Rocky Mountain region with a premier low-cost producer," said Larry D. Hall, President and Chief Executive Officer of K N Energy. "This alliance advances K N Energy's strategy by leveraging our existing reserves into greater -5- 2 opportunity through additional gathering, processing, marketing, field services and storage." Hall added, "As a result of the formation of this new company, K N Energy will immediately gain access to approximately 180 Bcfe in reserves and 648,000 acres of undeveloped acreage. The combination of a producer and an integrated gas company as owners, puts us in a unique position to provide gas services immediately to a broader range of markets all along the gas value chain in an increasingly competitive marketplace." "It is an exciting opportunity to join with the innovative and exceptional leadership of K N Energy in a joint venture that will benefit both companies," said Don Evans, Chairman and Chief Executive Officer of Tom Brown, Inc. "KNPC provides us with steady cash flow and development drilling opportunities adjacent to existing producing fields. These properties complement our Wind River Basin activity and maintain our primary objective of staying focused in the Rocky Mountain region." The convertible preferred stock will have a liquidation value of $25.00 per share and a coupon of 7.0%, and each preferred share will be convertible into 1.6660 shares of common stock of Tom Brown. K N Energy will have customary registration rights for the shares it receives. Consummation of the merger and the formation of the new company are expected to be contemporaneous and are conditioned on the execution of definitive documentation, certain regulatory approvals and other customary terms and conditions. Closing is anticipated to occur within the next sixty days. K N Energy is a natural gas services company and has operations in eight states. The services provided include gas gathering, processing, marketing, storage, transportation and retail gas distribution services. K N Energy has annual sales exceeding $1 billion and assets of approximately $1.2 billion. Tom Brown, Inc. is an independent energy company engaged in the domestic exploration for, and the acquisition, development, production and sale of, natural gas and crude oil. As of December 31, 1994, the Company's natural gas reserves were approximately 180 Bcf and its oil reserves were approximately 4.5 MMBbls. Tom Brown Inc. recently announced it intends to acquire substantially all the assets of Presidio Oil Co. - END - Release Date: Immediate Release - December 14, 1995 Contacts: K N Energy, Inc. - Karla Kimrey - (303) 763-3489 Tom Brown, Inc. - Donald L. Evans - (915) 682-9715 -6-
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