-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, h4Z7KdMRswrROxHLWeZG7yWChbZWUOMHXApgA6JPA/vGJ4Lu5Y47cKgWHzDAJMrr 7CRqiNQgOCiqUrHDTG1uIQ== 0000950131-94-000613.txt : 19940512 0000950131-94-000613.hdr.sgml : 19940512 ACCESSION NUMBER: 0000950131-94-000613 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19940331 FILED AS OF DATE: 19940511 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MAXUS ENERGY CORP /DE/ CENTRAL INDEX KEY: 0000724176 STANDARD INDUSTRIAL CLASSIFICATION: 1311 IRS NUMBER: 751891531 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-08567 FILM NUMBER: 94527030 BUSINESS ADDRESS: STREET 1: 717 N HARWOOD ST- RM 3147 CITY: DALLAS STATE: TX ZIP: 75201-6594 BUSINESS PHONE: 2149532000 FORMER COMPANY: FORMER CONFORMED NAME: DIAMOND SHAMROCK CORP /DE/ DATE OF NAME CHANGE: 19870518 FORMER COMPANY: FORMER CONFORMED NAME: NEW DIAMOND CORP DATE OF NAME CHANGE: 19830908 10-Q 1 FORM 10-Q 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 ACT OF 1934 For the quarterly period ending March 31, 1994 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 1-8567-2 MAXUS ENERGY CORPORATION (Exact name of registrant as specified in its charter) DELAWARE 75-1891531 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 717 North Harwood Street, Dallas, Texas 75201 (Address of principal executive offices) (Zip Code) (214) 953-2000 (Registrant's telephone number, including area code) 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, and (2) has been subject to the filing requirements for the past 90 days. YES (X) NO ( ) Shares of Common Stock outstanding at March 31, 1994: 134,424,136 PART I. FINANCIAL INFORMATION The accompanying consolidated financial statements have not been examined by independent accountants, but in the opinion of the management of Maxus Energy Corporation (the "Company"), all adjustments (consisting only of normal accruals) necessary for a fair presentation of the consolidated results of operations, consolidated balance sheet and consolidated cash flows at the date and for the periods indicated have been included. 2 MAXUS ENERGY CORPORATION CONSOLIDATED STATEMENT OF OPERATIONS (unaudited) (in millions, except per share) - -------------------------------------------------------------------------------
Period Ended March 31, Three Months 1994 1993 ---------------------- REVENUES Sales and operating revenues $187.1 $192.0 Other revenues, net 5.3 5.4 - ------------------------------------------------------------------------------- 192.4 197.4 COSTS AND EXPENSES Operating expenses 62.1 59.6 Gas purchase costs 43.5 30.4 Exploration, including exploratory dry holes 9.3 12.7 Depreciation, depletion and amortization 38.2 37.2 General and administrative expenses 8.2 8.5 Taxes other than income taxes 4.3 4.0 Interest and debt expenses 22.5 21.9 - ------------------------------------------------------------------------------- 188.1 174.3 ---------------------- Income Before Income Taxes and Cumulative Effect of Change in Accounting Principle 4.3 23.1 Income Taxes 15.5 22.9 - ------------------------------------------------------------------------------- Loss Before Cumulative Effect of Change in Accounting Principle (11.2) 0.2 Cumulative Effect of Change in Accounting Principle (4.4) - ------------------------------------------------------------------------------- NET LOSS (11.2) (4.2) Dividend requirement on preferred stock (12.3) (10.4) - ------------------------------------------------------------------------------- Loss Applicable to Common Shares ($23.5) ($14.6) =============================================================================== Loss before cumulative effect of change in accounting principle ($0.17) ($0.07) Cumulative effect of change in accounting principle (0.03) - ------------------------------------------------------------------------------- Net Loss Per Common Share ($0.17) ($0.10) =============================================================================== Average Common Shares Outstanding (in millions) 134.5 133.5
See Notes to Consolidated Financial Statements (Unaudited). 3 MAXUS ENERGY CORPORATION CONSOLIDATED BALANCE SHEET (in millions)
- ------------------------------------------------------------------------------- March 31, December 31, 1994 1993 ---------------------------- (Unaudited) ASSETS Current Assets Cash and cash equivalents $ 90.7 $ 128.7 Short-term investments 32.2 33.6 Receivables, less doubtful receivables 130.2 156.8 Inventories 28.3 24.1 Restricted cash 24.4 38.4 Deferred income taxes 2.1 2.1 Prepaids and other current assets 17.0 21.0 - ------------------------------------------------------------------------------- Total Current Assets 324.9 404.7 Properties and equipment, less accumulated depreciation and depletion of $2,099.9; $2,063.2 in 1993 1,322.4 1,305.6 Investments and long-term receivables 97.8 94.2 Restricted cash 124.3 121.8 Intangible assets, less accumulated amortization of $13.2; $12.9 in 1993 36.8 37.1 Deferred charges 23.8 24.0 - ------------------------------------------------------------------------------- TOTAL ASSETS $ 1,930.0 $1,987.4 =============================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Long-term debt $ 89.8 $ 39.7 Accounts payable 76.4 99.9 Accrued liabilities 110.7 107.7 Taxes payable 15.0 16.1 - ------------------------------------------------------------------------------- Total Current Liabilities 291.9 263.4 Long-term debt 1,017.0 1,015.4 Deferred income taxes 198.5 198.3 Other liabilities and deferred credits 109.0 112.4 Redeemable Preferred Stock, $1.00 par value Authorized and issued shares--1,875,000 and 2,500,000 187.5 250.0 Stockholders' Equity $2.50 Preferred Stock, $1.00 par value Authorized shares--5,000,000 Issued shares--3,500,000 3.5 3.5 $4.00 Preferred Stock, $1.00 par value Authorized shares--5,915,017 Issued shares--4,358,658 4.4 4.4 Common stock, $1.00 par value Authorized shares--300,000,000 Issued shares--134,629,069 and 134,373,523 134.6 134.4 Paid-in capital 1,015.7 1,026.2 Accumulated deficit (1,004.9) (993.7) Minimum pension liability (24.4) (24.4) Common Treasury Stock, at cost--204,933 and 173,963 shares (2.8) (2.5) - ------------------------------------------------------------------------------- Total Stockholders' Equity 126.1 147.9 - ------------------------------------------------------------------------------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,930.0 $1,987.4 ===============================================================================
See Notes to Consolidated Financial Statements (Unaudited). The Company uses the successful efforts method to account for its oil and gas producing activities. 4 MAXUS ENERGY CORPORATION CONSOLIDATED STATEMENT OF CASH FLOWS (unaudited) (in millions)
- ------------------------------------------------------------------------------- Period Ended March 31, 1994 1993 -------------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $(11.2) $ (4.2) Adjustments to reconcile net loss to net cash provided by operating activities: Cumulative effect of change in accounting principle 4.4 Depreciation, depletion and amortization 38.2 37.2 Dry hole costs (0.5) Income taxes 0.2 2.4 Other 4.7 4.8 Changes in components of working capital: Receivables 25.8 (9.2) Inventories, prepaids and other current assets (0.2) (1.6) Accounts and taxes payable (24.6) (13.7) Accrued liabilities 1.2 10.0 -------------------- NET CASH PROVIDED BY OPERATING ACTIVITIES 34.1 29.6 - ------------------------------------------------------------------------------- CASH FLOWS FROM INVESTING ACTIVITIES: Expenditures for properties and equipment-- including dry hole costs (55.5) (77.2) Expenditures for investments (5.1) (5.0) Proceeds from sale of assets 0.4 Proceeds from sale/maturity of short-term investments 4.2 46.8 Purchases of short-term investments (2.8) (72.2) Restricted cash 11.5 (4.1) Other (1.7) (2.7) -------------------- NET CASH USED IN INVESTING ACTIVITIES (49.0) (114.4) - ------------------------------------------------------------------------------- CASH FLOWS FROM FINANCE ACTIVITIES: Net borrowings from joint venture partners 0.3 Proceeds from the issuance of short-term debt 27.5 Repayment of short-term debt (8.4) Proceeds from issuance of long-term debt 61.3 100.5 Repayment of long-term debt (29.0) (1.3) Redemption of preferred stock (62.5) Dividends paid (12.3) (10.4) -------------------- NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES (23.1) (88.8) - ------------------------------------------------------------------------------- NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS (38.0) 4.0 CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 128.7 6.8 - ------------------------------------------------------------------------------- CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 90.7 $ 10.8 ===============================================================================
See Notes to Consolidated Financial Statements (Unaudited). 5 MAXUS ENERGY CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FIRST QUARTER 1994 (UNAUDITED) LONG-TERM DEBT On January 10, 1994, the Company issued $60.0 million of 9 3/8% notes due 2003 pursuant to a shelf registration statement which became effective in May 1993. The proceeds from these debt securities are being used to redeem a portion of long-term debt maturing in 1994, including $29.0 million of the Company's medium-term notes which were redeemed in January 1994. SHORT-TERM DEBT At March 31, 1994, the balance in current portion of long-term debt was $89.8 million, consisting of $25.0 million outstanding under the terms of a purchase and sale agreement for crude oil, $4.7 million owing to joint venture partners and $60.1 million of medium-term notes maturing in 1994. PREFERRED STOCK On February 1, 1994, the Company redeemed the 625,000 shares of its $9.75 Cumulative Convertible Preferred Stock which were subject to mandatory redemption provisions for $62.5 million. ASSET DIVESTITURES On April 26, 1994, Maxus and its subsidiaries sold all of its partnership interests consisting of general partners' interests and units of limited partnership interests in Diamond Shamrock Offshore Partners Limited Partnership ("DSP") to affiliates of Burlington Resources Inc. Maxus' interest in DSP was approximately 87.12%. On April 25, 1994, DSP sold its interests in Main Pass Blocks 72, 73 and 74 to Pogo Producing Company. Maxus also entered into a contract with Burlington Resources Inc. to sell certain producing oil and gas properties in Maxus' Southern Division owned directly by Maxus. See Item 5 of Part II of this Form 10-Q for additional information and pro forma financial data related to these divestitures. 6 MAXUS ENERGY CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION FIRST QUARTER 1994 RESULTS OF OPERATIONS Maxus reported a net loss of $11 million for the first quarter of 1994, or after preferred dividends, a loss of 17 cents per common share, compared to a net loss of $4 million, or after preferred dividends, a loss of 10 cents per common share, reported in the first quarter of 1993. Sales and operating revenues for the first quarter of 1994 were $187 million, compared to $192 million for the same period a year ago. The decrease was primarily due to lower crude oil prices ($24 million negative price variance), partially offset by higher natural gas prices ($11 million positive price variance) and sales of additional gas volumes purchased for processing and/or resale ($6 million positive volume variance). Net worldwide crude production was 69 thousand barrels per day ("mbpd") in first quarter 1994, compared to 68 mbpd in the same quarter a year ago. Domestic crude production increased slightly as did net Indonesian production. However, the slight increase in production was largely overshadowed by the dramatic drop in crude prices ($3.78 per barrel) from last year, which negatively impacted earnings $24 million. Natural gas sales for the first quarter of 1994 were 375 million cubic feet per day ("mmcfpd"), an increase of 31 mmcfpd over the first quarter 1993. Sales of purchased gas volumes increased significantly from 148 mmcfpd in the first quarter of 1993 to 191 mmcfpd for the same period this year, while produced volumes declined 12 mmcfpd. The average gas price received in the United States was $2.24 per thousand cubic feet ("mcf") in the first quarter 1994 as compared to $1.90 per mcf a year ago. Natural gas liquids sales in the United States for the first quarter 1994 were 19 mbpd, a slight decrease of 1 mbpd over first quarter last year. The average sales price for natural gas liquids in the first quarter of 1994 was $9.23 per barrel, a decrease of $3.22 per barrel from 1993. Gas purchase costs were $13 million higher the first quarter of 1994 as compared to first quarter 1993 due to increased volumes and prices for purchased gas in the United States. However, this cost increase was recovered through higher sales volumes and prices. Income tax expense was $16 million and $23 million in the first quarters of 1994 and 1993, respectively. The lower taxes were driven primarily by decreased revenues in Southeast Sumatra, resulting from the drop in crude oil prices. First quarter 1993 results included a $4 million loss due to the adoption of Statement of Financial Accounting Standards No. 112, "Employers' Accounting for Postemployment Benefits," which requires an accrual method of recognizing postemployment benefits. This expense, which was recorded as a cumulative effect of a change in accounting principle, primarily represents accrued medical benefits for long-term disability recipients. FINANCIAL CONDITION The Company's net cash provided by operating activities was $34 million in the first quarter of 1994 compared to $30 million in the first quarter of 1993. Net cash from operating activities before working capital changes declined $12 million during 1994 as a result of the decrease in crude oil prices. Net working capital requirements , however, provided an additional $17 million primarily due to the settlement of Indonesian underlift receivables in the first quarter 1994. 7 The Company began the year with $129 million of cash and cash equivalents. For the first three months of 1994, additional cash was provided by operations ($34 million), net borrowings of $52 million and the release of $14 million in restricted cash. In February 1994, the Company redeemed the portion of its $9.75 Cumulative Convertible Preferred Stock subject to mandatory redemption provisions for $63 million. After funding expenditures for properties and equipment and paying the preferred dividends, a balance of $91 million in cash and cash equivalents remained at March 31, 1994. In the first three months of 1993, year-end cash balances of $7 million, $30 million of cash provided by operations and net borrowings of $99 million were used to fund expenditures for properties and equipment and preferred dividends. Expenditures for properties and equipment, including dry hole costs, were $56 million for the first three months of 1994 as compared to $77 million for the same period last year. First quarter 1994 spending declined as a result of Maxus' reduced capital program for 1994. Additionally, first-quarter 1993 spending included expenditures for the completion of the Sunray gas plant and spending for the first phase of the Northwest Java gas project, which was completed in late 1993. Working capital (current assets less current liabilities) declined $108 million from December 31, 1993. Short-term debt increased $50 million due to the reclassification to current of $31 million of long-term debt maturing in 1994 not expected to be refinanced and $25 million outstanding under the terms of a purchase and sales agreement for crude oil. Additionally, accounts receivable declined $27 million, partially due to the settlement of Indonesian underlift receivables in first quarter 1994. Cash and cash equivalents also declined $38 million from year end. In January 1994, the Company issued $60 million of 9 3/8% notes due in 2013, the proceeds of which will be used to redeem a portion of the medium-term notes maturing in 1994. OTHER EVENTS On April 26, 1994, Maxus and its subsidiaries sold all of its partnership interests, consisting of general partners' interests and units of limited partnership interests, in Diamond Shamrock Offshore Partners Limited Partnership ("DSP") to affiliates of Burlington Resources Inc. for an aggregate of $291 million. Maxus' aggregate ownership interest in DSP was approximately 87.12%. As a result of the sale, Meridian Offshore Company, a Burlington Resources Inc. affiliate, became the managing general partner of DSP. Maxus also entered into a contract with Burlington Resources Inc. to sell certain producing oil and gas properties owned directly by Maxus for approximately $58 million. This sale is expected to close during the second quarter. Prior to the sale of the DSP units, DSP sold its interests in Main Pass Blocks 72, 73 and 74 to Pogo Producing Company. These blocks were sold by the partnership on April 25, 1994 for $18 million, ($16 million, net to Maxus). Maxus anticipates recording a gain of approximately $200 million ($140 million, net of tax) on these transactions. As previously announced, Maxus contemplated using asset sales, as well as cash flow and project financing, to fund its 1994 spending program (originally $212 million, currently expected to be less than $200 million). The proceeds from these asset sales will accomplish this objective as well as provide funds for the repayment of maturing debt, preferred stock and other obligations. Facilities testing in anticipation of production start-up in Ecuador was initiated in April; however, due to an explosion in a crude production tank, operations were shut-in pending repairs and design modifications to the facility. Production is now projected to begin in late May. Northwest Java gas volumes during the first quarter 1994 were well below our planned volumes. While deliverability is available at or above contract quantities, the purchaser is taking approximately one-half the contract volume during the transition from traditional sources of fuel to natural gas for electric power generation. 8 PART II. OTHER INFORMATION ITEM 5. OTHER INFORMATION Effective April 26, 1994, Maxus Energy Corporation ("Maxus") and its affiliates sold its partnership interests in Diamond Shamrock Offshore Partners Limited Partnership ("DSP") to affiliates of Burlington Resources Inc. for approximately $291 million. Maxus also entered into a contract with Burlington Resources to sell certain producing oil and gas properties owned directly by Maxus for approximately $58 million. This sale is expected to close during the second quarter of 1994. Prior to the sale of the DSP units, DSP sold its interests in Main Pass Blocks 72, 73 and 74 to Pogo Producing Company. These blocks were sold by the partnership on April 25, 1994 for $18.1 million ($15.8 million, net to Maxus). Maxus anticipates recording a gain of approximately $200 million ($140 million, net of tax) on these transactions. The oil and gas reserves sold in these two transactions represent approximately 30% of Maxus' U.S. proved reserves (on a barrel of oil equivalent basis) and approximately 9% of Maxus' worldwide reserves. An unaudited pro forma balance sheet as of March 31, 1994 has been prepared as if the divestitures had occurred at that date. The unaudited pro forma statements of operations for the year ended December 31, 1993 and the three months ended March 31, 1994 have been prepared as if the divestitures had occurred at January 1, 1993 and January 1, 1994, respectively, after giving effect to the pro forma financial adjustments described in Notes 1 and 2. The pro forma data are not necessarily indicative of the financial results which would have occurred had the divestitures been effective on those dates and should not be viewed as indicative of the financial results of Maxus in future periods. 9 MAXUS ENERGY CORPORATION UNAUDITED PRO FORMA STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 1993 ($ IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
Historical Maxus Pro Forma Adjustments Energy ---------------------------- Pro Forma Corporation Debit Credit Results ------------- ------------- ------------- ------------- (Note 1) REVENUES Sales and operating revenues $786.7 $ 134.3 $652.4 Settlement of litigation 6.8 6.8 Other revenues, net 13.5 $ 3.4 16.9 ------ ------- ------ ------ 807.0 134.3 3.4 676.1 COSTS AND EXPENSES Operating expenses 255.6 20.2 235.4 Gas purchase costs 155.6 43.9 111.7 Exploration, including exploratory dry holes 56.8 9.9 46.9 Depreciation, depletion and amortization 153.6 47.7 105.9 General and administrative expenses 34.8 34.8 Taxes other than income taxes 15.9 1.9 14.0 Interest and debt expenses 88.4 2.0 (b) 86.4 ------ ------- ------ ------ 760.7 0.0 125.6 635.1 ------ ------- ------ ------ Income Before Income Taxes, Extraordinary Item and Cumulative Effect of Change in Accounting Principle 46.3 (134.3) 129.0 41.0 Income Taxes 84.2 (9.6)(c) 74.6 ------ ------- ------ ------ Net Loss Before Extraordinary Item and Cumulative Effect of Change in Accounting Principle (37.9) $(134.3) $138.6 $(33.6) ======= ====== ====== Extraordinary item, net of tax benefit of $.1 (7.1) Cumulative effect of change in accounting principle (4.4) ------ Net Loss (49.4) Dividend requirement on Preferred Stock (41.7) (41.7) ------ ------ Loss Applicable to Common Shares $(91.1) $(75.3) ====== ====== Net Loss per Common Share Before Extraordinary Item and Cumulative Effect of Change in Accounting Principle $(0.60) $(0.56) ====== Extraordinary item (0.05) Cumulative effect of change in accounting principle (0.03) ------ Net Loss per Common Share $(0.68) ====== Average Common Shares Outstanding 133.9 133.9
See notes to unaudited pro forma financial data. 10 MAXUS ENERGY CORPORATION UNAUDITED PRO FORMA STATEMENT OF OPERATIONS For the Three Months Ended March 31, 1994 ($ in millions, except per share amounts)
Historical Maxus Pro Forma Adjustments Energy ----------------------- Pro Forma Corporation Debit Credit Results ----------- --------- ---------- --------- (Note 1) REVENUES Sales and operating revenues $187.1 $ 36.6 $150.5 Other revenues, net 5.3 0.1 5.2 ----------- --------- --------- --------- 192.4 36.7 0.0 155.7 COSTS AND EXPENSES Operating expenses 62.1 $ 4.8 57.3 Gas purchase costs 43.5 15.2 28.3 Exploration, including exploratory dry holes 9.3 1.3 8.0 Depreciation, depletion and amortization 38.2 11.3 26.9 General and administrative expenses 8.2 8.2 Taxes other than income taxes 4.3 0.4 3.9 Interest and debt expenses 22.5 0.8 (b) 21.7 ----------- --------- --------- --------- 188.1 0.0 33.8 154.3 ----------- --------- --------- --------- Income Before Income Taxes 4.3 (36.7) 33.8 1.4 Income Taxes 15.5 (5.8)(c) 9.7 ----------- --------- --------- --------- Net Loss (11.2) (36.7) 39.6 (8.3) Dividend requirement on Preferred Stock (12.3) (12.3) ----------- --------- --------- --------- Loss Applicable to Common Shares $(23.5) $(36.7) $39.6 $(20.6) =========== ========= ========= ========= Net Loss per Common Share $(0.17) $(0.15) =========== ========= Average Common Shares Outstanding 134.5 134.5 See notes to unaudited pro forma financial data.
11 MAXUS ENERGY CORPORATION UNAUDITED PRO FORMA BALANCE SHEET March 31, 1994 ($ in millions)
Historical Maxus Pro Forma Adjustments Energy ---------------------- Pro Forma Corporation Debit Credit Results ------------ -------- --------- --------- Assets (Note 2) Current Assets Cash $ 4.6 $ 4.6 Cash equivalents 81.6 $271.4(b) 357.5 Short-term investments 32.2 32.2 Receivables, less doubtful receivables 130.2 $ 9.0 121.2 Inventories 28.3 1.6 26.7 Restricted cash 24.4 24.4 Deferred income taxes 2.1 2.1 Prepaid expenses 17.0 0.2 16.8 --------- ------ ------ -------- Total current assets 324.9 271.4 10.8 585.5 Investments 97.8 97.8 Properties and Equipment, less accumulated depreciation and depletion 1,322.4 141.3 1,181.1 Intangible Assets 36.8 36.8 Restricted Cash 124.3 124.3 Deferred Charges 23.8 23.8 --------- ------ ------ -------- $ 1,930.0 $271.4 $152.1 $2,049.3 --------- ------ ------ -------- Liabilities and Stockholders' Equity Current Liabilities Current portion of long-term debt $ 89.8 $ 60.5(a) $ 29.3 Accounts payable 76.4 13.0 63.4 Taxes payable 15.0 $ 31.9 46.9 Accrued liabilities 110.7 1.9 108.8 --------- ------ ------ -------- Total current liabilities 291.9 75.4 31.9 248.4 Long-Term Debt 1,017.0 0.5(a) 1,016.5 Deferred Income Taxes 198.5 31.9 230.4 Other Liabilities 109.0 7.8 101.2 Redeemable Preferred Stock - 1,875,000 shares 187.5 187.5 Stockholders' Equity $2.50 Preferred stock - 3,500,000 shares issued 3.5 3.5 $4.00 Preferred stock - 4,358,658 shares issued 4.4 4.4 Common stock - 134,629,069 shares issued 134.6 134.6 Paid-in capital 1,015.7 1,015.7 Minimum pension liability (24.4) (24.4) Accumulated deficit (1,004.9) 139.2 (865.7) --------- ------ ------ -------- 128.9 0.0 139.2 268.1 Treasury stock, at cost - 204,933 shares (2.8) (2.8) --------- ------ ------ -------- Total Stockholders' Equity 126.1 0.0 139.2 265.3 --------- ------ ------ -------- $ 1,930.0 $ 83.7 $203.0 $2,049.3 --------- ------ ------ --------
See notes to unaudited pro forma financial data. 12 MAXUS ENERGY CORPORATION NOTES TO UNAUDITED PRO FORMA FINANCIAL STATEMENTS NOTE 1 - The accompanying pro forma statements of operations give effect to the following pro forma adjustments: (a) The elimination of the operating results before income tax and interest expense allocation of the divested properties for the year ended December 31, 1993 of $7.3 million and the quarter ended March 31, 1994 of $3.7 million. (b) The reduction of interest expense of $2.0 million and $.8 million for the year ended December 31, 1993 and quarter ended March 31, 1994, respectively, due to the assumed repayment of $61 million of long-term debt. (c) The allocation of U.S. federal income tax expense ($9.6 million for the year ended December 31, 1993 and $5.8 million for the quarter ended March 31, 1994). NOTE 2 - The accompanying pro forma balance sheet excludes the assets and liabilities related to the divested properties. For purposes of the pro forma balance sheet, a March 31, 1994 sale date is assumed. (a) Assumes the repayment of approximately $61 million of long-term debt from the proceeds of the divestiture transactions. (b) Proceeds have been reduced to reflect the repayment of intercompany debt. 13 PART II. OTHER INFORMATION Item 5. Other Information. The ratio of earnings to fixed charges and the ratio of earnings to combined fixed charges and preferred stock dividends for the three-month period ended March 31, 1994 have been computed on a consolidated basis to be 1.06 and less than one, respectively. Earnings were inadequate to cover combined fixed charges and preferred stock dividends for such quarter by $17.0 million. For the purposes of these computations, earnings consist of income before income taxes and fixed charges (excluding interest capitalized, net of amortization). Fixed charges represent interest incurred, amortization of debt expense nd that portion of rental expense deemed to be the equivalent of interest. Item 6. Exhibits and Reports on Form 8-K. (a) Exhibits. 12.1 --Statement re Computation of Ratios. (b) Reports on Form 8-K Date of Report Items Reported -------------- -------------- January 10, 1994 5 and 7 January 12, 1994 5 and 7 January 24, 1994 5 and 7 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. MAXUS ENERGY CORPORATION By: G. R. Brown G. R. Brown, Vice President and Controller, on behalf of the registrant and as its chief accounting officer May 9, 1994 14 Exhibit Index Exhibit Title Exhibit No. Statement re Computation of Ratios 12.1 EX-12.1 2 COMP RATIOS Exhibit 12.1 MAXUS ENERGY CORPORATION STATEMENT COMPUTATION OF RATIOS (in millions, except ratios)
Three Months Ended Mar. 31, 1994 ------------ Earnings: Net loss ................................................ $(11.2) Add: Provision for income taxes ........................... 15.5 Interest and debt expenses ........................... 22.5 Other fixed charges (a) .............................. 0.8 Rentals (b) .......................................... 7.3 ------------ Total earnings .................................... $ 34.9 ============ Fixed Charges: Interest and debt expenses .............................. $ 22.5 Rentals ................................................. 7.3 Capitalized interest .................................... 3.0 Proportionate share of fixed charges of unconsolidated associated companies 50% owned ........ 0.2 ------------ Total fixed charges ............................... $ 33.0 ------------ Preferred stock dividend requirement (c) ................ 18.9 ------------ Combined fixed charges and preferred stock dividend $ 51.9 ============ Ratio of earnings to fixed charges ......................... 1.06 Ratio of earnings to combined fixed charges and preferred stock dividends ......................................... (d)
(a) Other fixed charges include amortization of capitalized interest and the proportionate share of fixed charges of unconsolidated associated companies 50% owned. (b) The amount shown above for rentals represents that portion of rental expense representative of the interest factor (which approximates 45%). (c) The preferred stock dividend requirement was increased by the amount representing pre-tax earnings which would be required to cover such dividend requirement. Due to the mix of foreign and domestic income and losses, use of the Company's effective tax rate per the consolidated financial statements yielded meaningless results. Accordingly, the Company chose the U.S. statutory federal income tax rate to better reflect the pre-tax earnings necessary to cover the preferred stock dividend requirement. (d) Earnings were inadequate to cover combined fixed charges and preferred stock dividends for the quarter ended March 31, 1994 by $17.0 million. -----END PRIVACY-ENHANCED MESSAGE-----