-----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, CZo6kKNplf5ACCZhSRwqSXPFdS5W8RAkmJjiCrXZiGKdjLmYRans8RQvA8WFj1gf +rCoqyBYJt9vO+PLQhJJuA== 0000950129-04-009761.txt : 20041215 0000950129-04-009761.hdr.sgml : 20041215 20041215123336 ACCESSION NUMBER: 0000950129-04-009761 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20041214 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20041215 DATE AS OF CHANGE: 20041215 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HARVEST NATURAL RESOURCES INC CENTRAL INDEX KEY: 0000845289 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] IRS NUMBER: 770196707 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-10762 FILM NUMBER: 041203955 BUSINESS ADDRESS: STREET 1: 15835 PARK TEN PLACE DRIVE STREET 2: SUITE 115 CITY: HOUSTON STATE: TX ZIP: 77084 BUSINESS PHONE: 2815796700 MAIL ADDRESS: STREET 1: 15835 PARK TEN PLACE DRIVE STREET 2: SUITE 115 CITY: HOUSTON STATE: TX ZIP: 77084 FORMER COMPANY: FORMER CONFORMED NAME: BENTON OIL & GAS CO DATE OF NAME CHANGE: 19920703 8-K 1 h20983e8vk.txt HARVEST NATURAL RESOURCES, INC.- DECEMBER 14, 2004 ================================================================================ UNITED STATES 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, 2004 HARVEST NATURAL RESOURCES, INC. (Exact name of registrant as specified in its charter) DELAWARE 1-10762 77-0196707 (State or other jurisdiction (Commission File Number) (IRS Employer Identification No.) of incorporation)
1177 ENCLAVE PARKWAY, SUITE 300 HOUSTON, TEXAS 77077 (Address of principal executive (Zip Code) offices) 281-899-5700 (Registrant's telephone number, including area code) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) ================================================================================ ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION On December 14, 2004, Harvest Natural Resources, Inc. ("Harvest") issued a Press Release (the "Press Release") providing financial and operating guidance assumptions for 2005. The Press Release contains information regarding Harvest's discretionary cash flow, a non-GAAP financial measure which Harvest's management believes provides useful information to investors regarding the net cash provided by operating activities without regard to the changes in the operating assets and liabilities. These changes are short-term in nature and can fluctuate based on the activities within a single reporting period. The Press Release includes a reconciliation of the differences between discretionary cash flow and net cash provided by operating activities. The foregoing is qualified by reference to the Press Release which is furnished as an exhibit to this report and incorporated herein by reference. The information contained in this Item 2.02 shall be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and automatically incorporated by reference in Harvest's current filings under the Securities Act of 1933, as amended, or the Exchange Act, without being expressly set forth by specific reference in any such a filing. ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS (c) Exhibits. 99.1 Press release dated December 14, 2004 providing financial and operating guidance assumptions for 2005. ------------------------------- The information presented or incorporated by reference in this Current Report on Form 8-K may contain forward-looking statements and certain assumptions upon which such forward-looking statements are in part based. Numerous important factors, including those factors identified as in Harvest's Annual Report on Form 10-K and other of Harvest's filings with the Securities and Exchange Commission, and the fact that the assumptions set forth in this Current Report on Form 8-K could prove incorrect, could cause actual results to differ materially from those contained in such forward-looking statements. 2 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: December 15, 2004 HARVEST NATURAL RESOURCES, INC. By: /s/ Kerry R. Brittain -------------------------------------- Kerry R. Brittain Senior Vice President, General Counsel and Corporate Secretary 3 INDEX TO EXHIBITS Item Number Exhibit - ------ ------- 99.1 Press release dated December 14, 2004 providing financial and operating guidance assumptions for 2005. EX-99.1 2 h20983exv99w1.txt PRESS RELEASE - FINANCIAL & OPERATING GUIDANCE ASSUMPTIONS (HARVEST NATURAL RESOURCES, INC. LOGO) FOR IMMEDIATE RELEASE HARVEST NATURAL RESOURCES PROVIDES GUIDANCE FOR 2005 HOUSTON, TX (December 14, 2004) - Harvest Natural Resources, Inc. (NYSE: HNR) today provided financial and operating guidance assumptions for 2005. Production from Venezuela during 2005 is projected to average between 41,000 and 47,000 barrels of oil equivalent per day (Boepd) compared with actual production through the first nine months of 2004 of 35,376 Boepd. Oil production for 2005 is projected to average between 29,000 barrels and 34,000 barrels per day (Bopd) which is an increase of 40 to 60 percent compared with the 20,840 Bopd average oil production through the nine months ended September 30, 2004. Natural gas sales are projected to average between 70 and 80 million cubic feet per day. Harvest President and Chief Executive Officer, Dr. Peter J. Hill, said, "Oil production has been increasing during the last half of this year with exit production expected to be at the upper end of our 25,000 to 30,000 Bopd guidance range. Assuming we continue to enjoy a positive business environment in Venezuela free of production interruptions, oil production is projected to continue to increase throughout 2005 with exit production in the range of 31,000 and 36,000 Bopd. We are currently drilling oil wells in the Uracoa Field with 2 rigs and expect both rigs to continue drilling into 2005. We expect to drill 18 oil wells next year to complete development of the Uracoa Field massive sand and 2 additional wells to test the shallow potential in the field. We also plan to drill 2 oil wells in the East Bombal Field." Hill said, "We expect to start the second phase of our natural gas development program with the drilling of 2 gas wells and installation of facilities and infrastructure to deliver gas from the East Bombal Field to the processing plant in Uracoa. The completion of these facilities and infrastructure should enable us to continue to produce an average of 70 to 80 million cubic feet of gas per day until the end of the gas contract." Operating expenses are projected to average between $2.50 and $2.75 per barrel of oil equivalent (Boe) for 2005. Capital expenditures for 2005 are projected to be $70 to $80 million compared with 2004 capital expenditures of approximately $45 million. Assuming an average West Texas Intermediate oil price of $30 for 2005 and these production estimates, net income is projected to be in the range of $48 to $53 million ($1.25 to $1.38 per diluted share). Discretionary cash flow (cash flow from operating activities before changes in operating assets and liabilities) is estimated to be in the range of $90 to $110 million. See Reconciliation of Non-GAAP Measures below. Dr. Hill continued, "Capital expenditures for 2005 are forecast to be in the $70 to $80 million range including $50 to $60 million for drilling and $15 to $20 million for facilities and infrastructure. Our discretionary cash flow is projected to exceed capital expenditures by 1177 Enclave Parkway, Suite 300 o Houston, Texas 77077 o ph: 281.899.5700 fax: 281.899.5702 approximately $30 million in 2005. This cash flow combined with our current $70 million cash balance will allow us to invest in multiple growth opportunities, including in Russia and Venezuela, and for other corporate purposes." Harvest Natural Resources, Inc., headquartered in Houston, Texas, is an independent oil and gas exploration and development company with principal operations in Venezuela. For more information visit the Company's website at www.harvestnr.com.
2005 2004 NINE MONTHS ACTUAL THROUGH GUIDANCE SEPT 30 (UNAUDITED) -------- ------------------------------- PRODUCTION Oil (Bopd) 29,000 - 34,000 20,840 Natural Gas (MMcfpd) 70 - 80 87 Boe per day 41,000 - 47,000 35,376 PRICE Oil ($/Bbl) $16.50(1) $17.88 Natural Gas ($/Mcf) $1.03 $1.03 COSTS PER BOE Operating $2.50 - $2.75 $2.34 G & A $1.10 - $1.35 $1.57 Taxes other than income $0.40 - $0.45 $0.39 ------------- ----- Cash operating costs $4.00 - $4.55 $4.30 Net income ($MM) $48 - $53 $19.1 Earnings per share - diluted 1.25 - 1.38 0.50 Discretionary cash flow ($MM)(2) $90 - $110 $54.8 Capital Expenditures ($MM) $70 - $80 $19.8
(1) Assumes average West Texas Intermediate price of $30.00 per barrel and the benefit of the Company's purchase of West Texas Intermediate oil puts to protect the Company's 2005 cash flow. (2) Discretionary cash flow is defined as cash flows from operating activities before changes in operating assets and liabilities.
Reconciliation of Non-GAAP Measures ($MM): Net cash provided by operating activities $120 - $140 $37.7 Less estimated total changes in operating assets & liabilities $(30) $17.1 ----------- ----- Discretionary cash flow $90 - $110 $54.8 =========== =====
CONTACT: Steven W. Tholen Amanda Koenig Senior Vice President, Chief Financial Officer Investor Relations (281) 899-5714 (281) 899-5716 "This press release may contain projections and other forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical facts may constitute forward-looking statements. Although Harvest believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Actual results may differ materially from Harvest's expectations as a result of factors discussed in Harvest's 2003 Annual Report on Form 10-K and subsequent reports." ================================================================================ 1177 Enclave Parkway, Suite 300 o Houston, Texas 77077 o ph: 281.899.5700 fax: 281.899.5702 -----END PRIVACY-ENHANCED MESSAGE-----