-----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, FaEsR8IJZLZWYeAAFcpI14aGc05twxLGELZjQd7DVVV3iYlH6N40fTqkspZf0VsH R20WlyV7LJprxK734K/uxg== 0000007332-97-000013.txt : 19970430 0000007332-97-000013.hdr.sgml : 19970430 ACCESSION NUMBER: 0000007332-97-000013 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970425 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19970429 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: SOUTHWESTERN ENERGY CO CENTRAL INDEX KEY: 0000007332 STANDARD INDUSTRIAL CLASSIFICATION: NATURAL GAS TRANSMISSION & DISTRIBUTION [4923] IRS NUMBER: 710205415 STATE OF INCORPORATION: AR FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-08246 FILM NUMBER: 97589338 BUSINESS ADDRESS: STREET 1: 1083 SAIN ST STREET 2: P O BOX 1408 CITY: FAYETTEVILLE STATE: AR ZIP: 72702-1408 BUSINESS PHONE: 5015211141 FORMER COMPANY: FORMER CONFORMED NAME: ARKANSAS WESTERN GAS CO DATE OF NAME CHANGE: 19790917 8-K 1 DATE OF REPORT 04/25/97 =================================================================== 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) April 25, 1997 -------------- SOUTHWESTERN ENERGY COMPANY (Exact name of registrant as specified in its charter) Arkansas 1 - 8246 71-0205415 (State of incorporation (Commission (I.R.S. Employer or organization) File Number) Identification No.) 1083 Sain Street, P.O. Box 1408, Fayetteville, Arkansas 72702-1408 (Address of principal executive offices, including zip code) (501) 521-1141 (Registrant's telephone number, including area code) No Change (Former name, former address and former fiscal year; if changed since last report) =================================================================== Item 5. Other Events Reference is made to the press release issued April 25, 1997, filed herewith as Exhibit 1, announcing the operating results of the Registrant for the first quarter of 1997. Item 7.(c) Exhibits Reference (1) Press release dated April 25, 1997 p. 3 - 6 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. SOUTHWESTERN ENERGY COMPANY --------------------------- (Registrant) DATE: April 29, 1997 BY: /s/ GREG D. KERLEY --------------- ------------------------ Greg D. Kerley Vice President -- Treasurer and Secretary EX-99 2 PRESS RELEASE DATED 4/25/97 NEWS RELEASE For Further Information Contact: Stanley D. Green Executive Vice President - Finance and Corporate Development (501) 521-1141 SOUTHWESTERN ENERGY COMPANY ANNOUNCES IMPROVED FINANCIAL RESULTS FOR FIRST QUARTER 1997 FAYETTEVILLE, ARKANSAS - April 25, 1997...Southwestern Energy Company (NYSE:SWN) today announced net income of $12.3 million, or $.50 per share, for the first quarter ended March 31, 1997, compared to $9.3 million, or $.38 per share, for the same period in 1996. Revenues for the first quarter of 1997 were $88.9 million, compared to $64.9 million for the first quarter of 1996. "Our first quarter operating results reflect both better wellhead prices and a utility rate increase which became effective in late 1996," explained Charles E. Scharlau, Chairman and Chief Executive Officer of Southwestern. "Operating income of the exploration and production segment was up 26% for the quarter while operating income of the gas distribution segment was 24% higher. Our recently formed energy services group also contributed to the improved results." Production Totals 9.9 Bcf Equivalent Gas and oil production for the three months ended March 31, 1997, was 9.9 billion cubic feet (Bcf) equivalent, down from 10.3 Bcf equivalent for the same period in 1996. The decrease was primarily the result of lower sales to the Company's utility subsidiary, partially offset by increased oil production. Gas production for the three months ended March 31, 1997, was 8.7 Bcf, compared to 9.9 Bcf for the same period in 1996. The Company's sales to its utility distribution systems decreased to 4.6 Bcf during the three months ended March 31, 1997, compared to 5.9 Bcf for the same period in 1996. Weather which was 16% colder in 1996 resulted in higher demand of the gas distribution segment. The higher demand enabled the Company to increase its - MORE - production of reserves located on the utility's gathering system. Sales of gas production to unaffiliated purchasers were 4.1 Bcf in the first quarter of 1997, up slightly from 4.0 Bcf for the same period in 1996. Southwestern received an average price of $2.91 per thousand cubic feet (Mcf) for its gas production during the three months ended March 31, 1997, up from $2.20 per Mcf for the same period in 1996. The increased average price reflected the general improvement in the market for natural gas during the first quarter of 1997 as compared to the same period of 1996. The Company's oil production was 196 thousand barrels (MBbls) during the three months ended March 31, 1997, up from 72 MBbls for the same period of 1996. The increase was due primarily to production from properties acquired during the fourth quarter of 1996. Rate Increase and Customer Growth Benefit Utility Deliveries of Southwestern's utility systems to sales and end-use transportation customers during the first quarter of 1997 reflected the effects of weather which was 5% warmer than normal and 16% warmer than in the same period of 1996. The impact of weather on deliveries was partially offset by growth of 3% in the average number of utility customers. The Company's utility systems delivered 12.9 Bcf to these customers during the three months ended March 31, 1997, down from 14.6 Bcf for the same period in 1996. The Company's average utility rate increased to $5.25 per Mcf during the first quarter of 1997, up from $4.03 per Mcf for the same period in 1996. The increase was the result of higher prices paid for purchases of natural gas which are passed through to customers under automatic adjustment clauses and rate increases implemented in late 1996 for the northwest Arkansas system. Southwestern Energy Company is a diversified natural gas company whose wholly owned subsidiaries are engaged in gas and oil exploration and production, natural gas gathering, transmission, and marketing, and natural gas distribution. # # # Financial Summary Follows - MORE -
Page 1 of 2 SOUTHWESTERN ENERGY COMPANY AND SUBSIDIARIES Statements of Income (Unaudited) Three Months Twelve Months Periods Ended March 31 1997 1996 1997 1996 - ---------------------------------------------------------------------------------------------- ($ in thousands, except per share amounts) Operating Revenues Gas sales $69,262 $60,706 $183,294 $153,948 Gas marketing 14,003 1,068 27,088 12,345 Oil sales 4,016 1,316 10,994 4,406 Gas transportation and other 1,638 1,774 6,019 6,541 - ---------------------------------------------------------------------------------------------- 88,919 64,864 227,395 177,240 - ---------------------------------------------------------------------------------------------- Operating Costs and Expenses Gas purchases - utility 22,283 20,094 45,040 41,632 Gas purchases - marketing 13,112 1,002 26,224 12,018 Operating and general 14,348 11,754 53,103 45,604 Depreciation, depletion and amortization 12,286 11,217 43,463 37,855 Taxes, other than income taxes 1,796 1,279 5,993 4,515 - ---------------------------------------------------------------------------------------------- 63,825 45,346 173,823 141,624 - ---------------------------------------------------------------------------------------------- Operating Income 25,094 19,518 53,572 35,616 Interest Expense 3,986 3,215 13,815 11,784 Other Income (Expense) (1,077) (1,126) (3,966) (1,408) - ---------------------------------------------------------------------------------------------- Income Before Provision for Income Taxes 20,031 15,177 35,791 22,424 - ---------------------------------------------------------------------------------------------- Provision for Income Taxes Current 6,541 3,383 (2,411) (4,410) Deferred 1,171 2,460 16,031 13,067 - ---------------------------------------------------------------------------------------------- 7,712 5,843 13,620 8,657 - ---------------------------------------------------------------------------------------------- Income Before Extraordinary Item 12,319 9,334 22,171 13,767 Extraordinary Loss Due to Early Retirement of Long-Term Debt (Net of $185 Tax Benefit) - - - (295) - ---------------------------------------------------------------------------------------------- Net Income $12,319 $ 9,334 $22,171 $ 13,472 ============================================================================================== Earnings Per Share Income Before Extraordinary Item $0.50 $0.38 $0.90 $0.55 Extraordinary Loss Due to Early Retirement of Long-Term Debt (Net of $185 Tax Benefit) - - - (0.01) - ---------------------------------------------------------------------------------------------- Net Income $0.50 $0.38 $0.90 $0.54 ============================================================================================== Weighted Average Common Shares Outstanding 24,720,148 24,701,349 24,709,902 24,889,124 ============================================================================================== Cash Flows From Operations (Before Working Capital Changes) $26,922 $23,888 $85,992 $65,211 ==============================================================================================
Page 2 of 2 SOUTHWESTERN ENERGY COMPANY AND SUBSIDIARIES
Operating Statistics Three Months Periods Ended March 31 1997 1996 - -------------------------------------------------------------------------------- Gas Production (Bcf) Affiliated sales 4.6 5.9 Unaffiliated sales 4.1 4.0 - -------------------------------------------------------------------------------- Total 8.7 9.9 - -------------------------------------------------------------------------------- Average price per Mcf $2.91 $2.20 ================================================================================ Oil production (MBbls) 196 72 Average price per Bbl $20.47 $18.28 ================================================================================ Gas marketing (Bcf) 6.4 1.4 ================================================================================ Distribution deliveries (Bcf): End-use customers 12.9 14.6 Off-system deliveries 0.9 0.4 Average sales rate $5.25 $4.03 Average number of customers 174,317 169,705 Degree days 2,031 2,421 ================================================================================ Capital Expenditures By Segment Exploration and production $ 14,880 $ 15,852 Gas distribution 3,021 2,718 Other 244 151 - -------------------------------------------------------------------------------- $ 18,145 $ 18,721 ================================================================================ Condensed Balance Sheets (Unaudited) Current assets $ 60,584 $ 50,528 Investments 6,750 8,297 Property, plant and equipment, net 569,443 487,357 Other assets 12,030 11,343 - -------------------------------------------------------------------------------- Total assets $648,807 $557,525 ================================================================================ Current liabilities $ 41,731 $ 41,286 Long-term debt, less current maturities 252,114 189,857 Deferred income taxes 131,853 120,024 Other liabilities 4,290 3,972 Shareholders' equity 218,819 202,386 - -------------------------------------------------------------------------------- Total liabilities and shareholders' equity $648,807 $557,525 ================================================================================
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