-----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, MRxopdB+YhRisHCwhFiBx67fXgd/gInnNPHUlXUzxcoE3U2rizMEHqeYVNGlHm7v e+ed2yXtGi/B2xeakP528g== 0000007332-98-000019.txt : 19981019 0000007332-98-000019.hdr.sgml : 19981019 ACCESSION NUMBER: 0000007332-98-000019 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19981015 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19981016 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: SEC FILE NUMBER: 001-08246 FILM NUMBER: 98726805 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 10/16/98 =================================================================== 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 15, 1998 ---------------- 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 October 16, 1998, filed herewith as Exhibit 1. Item 7.(c) Exhibits Reference (1) Press release dated October 16, 1998 p. 3 - 4 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: October 16, 1998 BY: /s/ GREGORY D. KERLEY ----------------- ------------------------ Gregory D. Kerley Senior Vice President -- Finance and Chief Financial Officer EX-99 2 PRESS RELEASE DATED 10/16/98 NEWS RELEASE FOR IMMEDIATE RELEASE For Further Information Contact: October 16, 1998 Greg D. Kerley Senior Vice President and Chief Financial Officer (501) 521-1141 SOUTHWESTERN ENERGY DISSAPPOINTED BY ADVERSE JURY VERDICT IN CLASS ACTION ROYALTY LAWSUIT Company Plans Immediate Appeal Through the Legal System and Will Aggressively Communicate to Ensure Public Understanding of the Complex Issues Southwestern Energy Company (NYSE: SWN) today announced that on October 15, 1998, a state court jury in Fort Smith, Arkansas, by a vote of nine to three, returned a verdict against Southwestern Energy Company ("the Company") and two of its wholly-owned subsidiaries, SEECO, Inc. and Arkansas Western Gas Company, in the amount of $62,136,827. If the verdict is upheld on appeal, the defendants would also be liable for pre-judgment interest in an amount that has not been determined at this time, but which could be in excess of $30,000,000. The verdict was returned following a trial on the issues of a class action lawsuit brought by certain royalty owners of SEECO, Inc., who contend that the defendants breached implied covenants in certain oil and gas leases, violated statutory duties regarding the method and timing of paying royalties, misrepresented or failed to disclose material facts to royalty owners concerning gas purchase contracts between the Company's subsidiaries, and failed to fulfill other alleged common law duties to the members of the royalty owner plaintiff class. The litigation was commenced in May 1996 and was disclosed by the Company at that time. "We are shocked and disappointed by the verdict in this case. Southwestern and its subsidiaries have always treated SEECO's royalty owners fairly and have paid royalties in accordance with the law on each and every dollar which SEECO has received from the sale of natural gas," said Charles E. Scharlau, Chairman and Chief Executive Officer of Southwestern. "While cases like this are complex and difficult to understand by their very nature, we believe that illuminating the facts in the case should enable all interested parties to see the injustice of the verdict. We intend to communicate aggressively and to pursue all legal options." The Company believes that the jury's verdict was wrong as a matter of law and fact and that incorrect rulings by the trial judge (including evidentiary rulings and prejudicial jury instructions) provide substantial grounds for a successful appeal. The Company intends to seek a stay of the judgment on the jury's verdict and to file and vigorously prosecute an appeal in the Arkansas Supreme Court. If the Company is not successful in its appeal from the jury verdict, the Company's financial condition and results of operations would be materially and adversely affected. # # # -----END PRIVACY-ENHANCED MESSAGE-----