-----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, Ig/BLcO2xYPvCSN0CqKgQhWesLQa1Sb3ihS+RVYbtS/uDr5cOfJ+ca1kjrOtUksw dXVVC937t+/UwUC4OiNN6Q== 0001299933-07-002722.txt : 20070503 0001299933-07-002722.hdr.sgml : 20070503 20070503102922 ACCESSION NUMBER: 0001299933-07-002722 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20070503 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070503 DATE AS OF CHANGE: 20070503 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: 07813418 BUSINESS ADDRESS: STREET 1: 1177 ENCLAVE PARKWAY STREET 2: STE 300 CITY: HOUSTON STATE: TX ZIP: 77077 BUSINESS PHONE: 281-899-5700 MAIL ADDRESS: STREET 1: 1177 ENCLAVE PARKWAY STREET 2: STE 300 CITY: HOUSTON STATE: TX ZIP: 77077 FORMER COMPANY: FORMER CONFORMED NAME: HARVEST NATURAL RESOURCES INC DATE OF NAME CHANGE: 20020805 FORMER COMPANY: FORMER CONFORMED NAME: BENTON OIL & GAS CO DATE OF NAME CHANGE: 19920703 8-K 1 htm_20014.htm LIVE FILING Harvest Natural Resources, Inc. (Form: 8-K)  

 


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):   May 3, 2007

Harvest Natural Resources, Inc.
__________________________________________
(Exact name of registrant as specified in its charter)

     
Delaware 1-10762 77-0196707
_____________________
(State or other jurisdiction
_____________
(Commission
______________
(I.R.S. Employer
of incorporation) File Number) Identification No.)
      
1177 Enclave Parkway, Suite 300, Houston, Texas   77077
_________________________________
(Address of principal executive offices)
  ___________
(Zip Code)
     
Registrant’s telephone number, including area code:   281-899-5720

Not Applicable
______________________________________________
Former name or former address, if changed since last report

 

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:

[  ]  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 May 3, 2007, Harvest Natural Resources, Inc. issued a Press Release (the "Press Release") providing first quarter 2007 results. The press release is being furnished as an exhibit to this report and is incorporated herein by reference.





Item 9.01 Financial Statements and Exhibits.

Press release dated May 3, 2007, providing first quarter 2007 results.






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 hereunto duly authorized.

         
    Harvest Natural Resources, Inc.
          
May 3, 2007   By:   Kerry R. Brittain
       
        Name: Kerry R. Brittain
        Title: Senior Vice President - General Counsel and Corporate Secretary


Exhibit Index


     
Exhibit No.   Description

 
99.1
  Press release dated May 3, 2007, providing first quarter 2007 results.
EX-99.1 2 exhibit1.htm EX-99.1 EX-99.1

FOR IMMEDIATE RELEASE

HARVEST NATURAL RESOURCES ANNOUNCES

FIRST QUARTER 2007 RESULTS

HOUSTON, Texas (May 3, 2007) – Harvest Natural Resources, Inc. (NYSE: HNR) today announced 2007 first quarter loss of $6.5 million, or $0.17 per diluted share compared with net income of $13.9 million, or $0.36 per diluted share, for the same period last year.

Similar to the last three quarters of 2006, the Company did not recognize the equity earnings for its producing operations in Venezuela for the 2007 first quarter. Equity earnings will be reported upon completion of the conversion to the mixed company, Petrodelta, S.A. (Petrodelta).

Harvest President and Chief Executive Officer, James A. Edmiston, said, “We understand the documents required to effect the conversion, including the conversion contract, have been approved by the Minister of Energy and Petroleum and submitted to the National Assembly. After receipt of National Assembly approval, we and our partner, Corporacion Venezolana del Petroleo S.A. (CVP) will execute the conversion contract and form Petrodelta. After receipt of a transfer decree from the Venezuelan government, Petrodelta will be fully operational.”

Edmiston continued, “Petrodelta will develop and operate the three South Monagas Unit (SMU) fields as well as the Isleño, Temblador and El Salto fields under a 20-year grant. The agreed business plan envisions rapid development of the proved reserve base and the appraisal and development of the numerous opportunities associated with the new fields. The process to contract the initial three drilling rigs as well as long-lead materials is underway. We have also begun to increase our technical staff. In addition, the parties have selected two workover rigs which will begin operations as soon as contract negotiations are completed and the rigs can be mobilized.”

For the three months ended March 31, 2007, operating statistics (on a 100% basis) for the SMU fields operated by the Company’s affiliate, Harvest Vinccler, S.C.A., are as follows:

    Production of 1.5 million barrels of oil and 3.3 billion cubic feet (Bcf) of natural gas. Average daily production was 16,600 barrels and 36 million cubic feet of natural gas.

    Crude oil prices that would be paid if the conversion contract was in place cannot be calculated as one element of the pricing formula has not been set. Market prices for crude oil of the type produced in SMU averaged approximately $44 per barrel for the quarter. The price for natural gas that would be paid under the conversion contract is $1.54 per thousand cubic feet.

    Taxes and royalties for Petrodelta will be 50 percent and 33 percent, respectively.

1

Harvest will hold an earnings conference call today at 10:00 a.m. Central Time to discuss 2007 first quarter results. To access the call, dial 785-832-0301, conference ID: Harvest, five to ten minutes prior to the start time. A recording of the conference call will also be available for replay at 402-220-6060. To listen to the live webcast of the call, please visit our website at www.harvestnr.com.

Harvest Natural Resources, Inc. headquartered in Houston, Texas, is an independent energy company with principal operations in Venezuela and business development offices in Russia and the United Kingdom. For more information visit the Company’s website at www.harvestnr.com.

     
CONTACT:
 
Steven W. Tholen
Senior Vice President, Chief Financial Officer
(281) 899-5714
  Amanda M. Koenig
Investor Relations
(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. They include estimates and timing of expected oil and gas production, oil and gas reserve projections of future oil pricing, future expenses, planned capital expenditures, anticipated cash flow and our business strategy. 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 2006 Annual Report on Form 10-K and other public filings.”
“Cautionary note to investors – The United States Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. From time to time, we use certain terms such as resource potential, risked potential, probable reserves, possible reserves, non-proved reserves or other descriptions of volumes of reserves that SEC guidelines strictly prohibit us from including in filings with the SEC. These estimates are by their nature more speculative than estimates of proved reserves and accordingly, are subject to substantially greater risk of being actually realized by the Company. Investors are urged to consider closely the disclosure in our 2006 Annual Report on Form 10-K and other public filings.”

2

HARVEST NATURAL RESOURCES, INC.
CONSOLIDATED BALANCE SHEETS
($ thousands, unaudited)

                 
    March 31,   December 31,
    2007   2006
ASSETS:
               
CURRENT ASSETS:
               
    Cash and equivalents
  $ 138,706     $ 148,079  
    Restricted cash
    24,224       15,888  
    Accounts receivable, net
    9,809       9,811  
    Advances to provisional equity affiliate
    17,223       19,146  
    Deferred income taxes
    5,608       5,608  
    Prepaid expenses and other
    1,052       1,246  
 
               
        Total current assets
    196,622       199,778  
RESTRICTED CASH
    51,523       73,001  
OTHER ASSETS
    202       176  
INVESTMENT IN EQUITY AFFILIATE
    4,552        
INVESTMENT IN PROVISIONAL EQUITY AFFILIATE
    146,436       146,436  
PROPERTY AND EQUIPMENT, net
    3,310       3,320  
 
               
        TOTAL ASSETS
  $ 402,645     $ 422,711  
 
               
LIABILITIES AND STOCKHOLDERS’ EQUITY:
               
CURRENT LIABILITIES:
               
    Accounts payable, trade and other
  $ 2,120     $ 3,827  
    Accounts payable, related party
    9,751       9,637  
    Accrued expenses
    8,048       12,975  
    Accrued interest
    5,935       6,850  
    Deferred revenue
    11,217       11,217  
    Income taxes payable
    60       34  
    Current portion of long-term debt
    40,465       37,674  
 
               
        Total current liabilities
    77,596       82,214  
LONG TERM DEBT
    57,209       66,977  
COMMITMENTS AND CONTINGENCIES
           
MINORITY INTEREST
    27,997       28,634  
STOCKHOLDERS’ EQUITY:
               
    Common stock and paid-in capital
    196,018       194,556  
    Retained earnings
    47,669       54,174  
    Treasury stock
    (3,844 )     (3,844 )
 
               
        Total stockholders’ equity
    239,843       244,886  
 
               
        TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
  $ 402,645     $ 422,711  
 
               

3

HARVEST NATURAL RESOURCES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands except per BOE and per share amounts, unaudited)

                 
THREE MONTHS ENDED:
  March 31, 2007
  March 31, 2006
 
               
Barrels of oil sold
            1,894  
MMCF of gas sold
            4,506  
        Total BOE
            2,645  
Average price/barrel
          $ 28.79  
Average price/mcf
          $ 1.03  
REVENUES:
               
    Oil sales
          $ 54,531  
    Gas sales
            4,641  
 
               
 
            59,172  
 
               
EXPENSES:
               
    Operating expenses
          8,569  
    Depletion and amortization
          9,904  
    Depreciation
  $ 281       402  
    General and administrative
    6,433       6,869  
    Taxes other than on income
    237       2,399  
 
               
 
    6,951       28,143  
 
               
INCOME (LOSS) FROM OPERATIONS
    (6,951 )     31,029  
 
               
OTHER NON-OPERATING INCOME (EXPENSE)      Investment income and other
    2,387       2,061  
    Interest expense
    (2,481 )     (119 )
    Net loss (gain) on exchange rates
    56       (2 )
 
               
 
    (38 )     1,940  
 
               
INCOME (LOSS) BEFORE INCOME TAXES AND      MINORITY INTERESTS
    (6,989 )     32,969  
    Income tax expense
    114       14,762  
 
               
INCOME (LOSS) BEFORE MINORITY INTERESTS
    (7,103 )     18,207  
    Minority interest in consolidated subsidiary companies
    (637 )     4,339  
 
               
INCOME FROM CONSOLIDATED COMPANIES
    (6,466 )     13,868  
    Net loss from unconsolidated equity affiliate
    (39 )      
 
               
NET INCOME (LOSS)
    ($6,505 )   $ 13,868  
 
               
NET INCOME (LOSS) PER COMMON SHARE:      Basic
    ($0.17 )   $ 0.37  
    Diluted
    ($0.17 )   $ 0.36  
Weighted average shares outstanding:
               
    Basic
  37.4 million   37.1 million
    Diluted
  37.4 million   38.5 million

4

HARVEST NATURAL RESOURCES, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(in thousands, unaudited)

                 
    Three Months Ended March 31,
    2007   2006
CASH FLOWS FROM OPERATING ACTIVITIES:
               
Net income (loss)
    ($6,505 )   $ 13,868  
Adjustments to reconcile net income to net cash   provided by operating activities:
               
    Depletion, depreciation and amortization
    281       10,306  
    Net loss from unconsolidated equity affiliate
    39        
    Non-cash compensation-related charges
    1,462       1,048  
    Minority interest in consolidated subsidiary companies
    (637 )     4,339  
Changes in operating assets and liabilities:
               
    Accounts and notes receivable
    2       2,322  
    Advances to provisional equity affiliate
    1,923        
    Prepaid expenses and other
    194       336  
    Accounts payable
    (1,707 )     3,389  
    Accounts payable, related party
    114       94  
    Accrued expenses
    (4,927 )     (5,495 )
    Accrued interest
    (915 )     (45 )
    Deferred revenue
          2,248  
    Asset retirement liability
          24  
    Income taxes payable
    26       (5,327 )
 
               
    Net Cash Provided By (Used In) Operating Activities
    (10,650 )     27,107  
 
               
CASH FLOWS FROM INVESTING ACTIVITIES:
               
Additions of property and equipment
    (271 )     (1,458 )
Investment in affiliated companies
    (4,591 )      
Decrease in restricted cash
    13,142        
Investment costs
    (26 )     (95 )
 
               
    Net Cash Provided by (Used In) Investing Activities
    8,254       (1,553 )
 
               
CASH FLOWS FROM FINANCING ACTIVITIES:
               
Net proceeds from issuances of common stock
          15  
Payments on long-term debt
    (6,977 )     (2,884 )
 
               
    Net Cash Provided by (Used in) Financing Activities
    (6,977 )     (2,869 )
 
               
    Net Increase (Decrease) in Cash
    (9,373 )     22,685  
Cash and Cash Equivalents at Beginning of Period
    148,079       163,019  
 
               
Cash and Cash Equivalents at End of Period
  $ 138,706     $ 185,704  
 
               

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