-----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, J3T8+7tZw9i1Oxb/LVPXuDigAfX8+ZMsliRxAtEF4T+gM4g2ZKEfRr0kjxJTIgmT owARf22rAqXusdiygrP69g== 0000890566-96-000803.txt : 19960709 0000890566-96-000803.hdr.sgml : 19960709 ACCESSION NUMBER: 0000890566-96-000803 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19951231 FILED AS OF DATE: 19960708 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: SANTA FE ENERGY RESOURCES INC CENTRAL INDEX KEY: 0000086772 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] IRS NUMBER: 362722169 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 11-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-07667 FILM NUMBER: 96591951 BUSINESS ADDRESS: STREET 1: 1616 S VOSS RD STE 1000 CITY: HOUSTON STATE: TX ZIP: 77057 BUSINESS PHONE: 7137832401 MAIL ADDRESS: STREET 1: 1616 S VOSS ROAD STE 1000 CITY: HOUSTON STATE: TX ZIP: 77057 FORMER COMPANY: FORMER CONFORMED NAME: SANTA FE NATURAL RESOURCES INC DATE OF NAME CHANGE: 19900111 11-K 1 ANNUAL REPORT FOR YEAR ENDED 12/31/95 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 11-K ANNUAL REPORT PURSUANT TO SECTION 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 1995 SANTA FE ENERGY RESOURCES SAVINGS INVESTMENT PLAN SANTA FE ENERGY RESOURCES, INC. 1616 SOUTH VOSS ROAD HOUSTON, TEXAS 77057 1 of 20 SANTA FE ENERGY RESOURCES SAVINGS INVESTMENT PLAN Page ---- INDEX TO FINANCIAL STATEMENTS AND EXHIBITS (a) Financial Statements: Report of Independent Accountants 4 Statement of Net Assets Available for Plan Benefits, with Fund Information at December 31, 1995 5 Statement of Net Assets Available for Plan Benefits, with Fund Information at December 31, 1994 6 Statement of Changes in Net Assets Available for Plan Benefits, with Fund Information For the Year Ended December 31, 1995 7 Statement of Changes in Net Assets Available for Plan Benefits, with Fund Information For the Year Ended December 31, 1994 8 Notes to Financial Statements 9-15 (b) Additional Information*: Item 27a - Schedule of Assets Held For Investment Purposes at December 31, 1995 17 Item 27d - Schedule of Reportable Transactions For the Year Ended December 31, 1995 18 * All other schedules required by Section 2520.103-10 of the Department of Labor's Rules and Regulations for Reporting and Disclosure under ERISA have been omitted because they are not applicable or the required information is shown in the financial statements or the notes thereto. (c) Exhibits: No. 24 - Consent of Independent Accountants 20 - 2 - SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, persons who administer the Plan have duly caused this annual report to be signed by the undersigned thereunto duly authorized. SANTA FE ENERGY RESOURCES SAVINGS INVESTMENT PLAN By: /s/ MARK A. OLDER Mark A. Older Member - Employee Benefits Committee Date: June 27, 1996 - 3 - REPORT OF INDEPENDENT ACCOUNTANTS To the Participants and Employee Benefits Committee of Santa Fe Energy Resources Savings Investment Plan In our opinion, the accompanying statements of net assets available for plan benefits and the related statement of changes in net assets available for plan benefits present fairly, in all material respects, the net assets available for plan benefits of the Santa Fe Energy Resources Savings Investment Plan at December 31, 1995 and 1994, and the changes in net assets available for plan benefits for the years then ended, in conformity with generally accepted accounting principles. These financial statements are the responsibility of the Plan's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with generally accepted auditing standards which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for the opinion expressed above. Our audits were performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedule of assets held for investment purposes at December 31, 1995 and schedule of reportable transactions for the year ended December 31, 1995 are presented for the purpose of additional analysis and are not a required part of the basic financial statements but are supplementary information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The Fund Information in the statement of net assets available for plan benefits and the statement of changes in net assets available for plan benefits is presented for purposes of additional analysis rather than to present the statement of net assets available for plan benefits and the statement of changes in net assets available for plan benefits of each fund. The supplemental schedules and Fund Information have been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. Houston, Texas May 29, 1996 - 4 - SANTA FE ENERGY RESOURCES SAVINGS INVESTMENT PLAN STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION DECEMBER 31, 1995
Fund Information -------------------------------------------------------------- Fixed S&P Company Interest Index Stock Wellington Fund Fund Fund Fund ------------ ----------- ----------- ----------- ASSETS Investments, at fair value: TCB - Short-term investment $ 887,481 $ 78,795 $ 164,978 $ 50,775 Santa Fe Energy Resources, Inc. common stock 6,590,526 Mutual funds 2,006,197 Commingled trust funds 3,215,248 4,567,388 Loans to participants ------------ ----------- ----------- ----------- 4,102,729 4,646,183 6,755,504 2,056,972 Investments, at contract value: Prudential Investment Contract 7,330,862 Travelers Investment Contract 3,602,166 ------------ ----------- ----------- ----------- Total investments 15,035,757 4,646,183 6,755,504 2,056,972 Receivables: Employer contribution 16,223 461,857 Employee contribution 6,239 11,250 Accrued interest and dividends 315,341 525 683 204 Other 10,551 ------------ ----------- ----------- ----------- Total receivables 315,341 16,748 479,330 11,454 ------------ ----------- ----------- ----------- Total assets 15,351,098 4,662,931 7,234,834 2,068,426 Liabilities: Miscellaneous payables (51,983) ------------ ----------- ----------- ----------- Total liabilities (51,983) ------------ ----------- ----------- ----------- Net assets available for plan benefits $ 15,351,098 $ 4,662,931 $ 7,234,834 $ 2,016,443 ============ =========== =========== ===========
Fund Information ----------------------------------------- Growth Equity Loan Fund Fund Total ----------- ----------- ------------ ASSETS Investments, at fair value: TCB - Short-term investment $ 49,809 $ 1,231,838 Santa Fe Energy Resources, Inc. common stock 6,590,526 Mutual funds 1,619,496 3,625,693 Commingled trust funds 7,782,636 Loans to participants $ 1,428,646 1,428,646 ----------- ----------- ------------ 1,669,305 1,428,646 20,659,339 Investments, at contract value: Prudential Investment Contract 7,330,862 Travelers Investment Contract 3,602,166 ----------- ----------- ------------ Total investments 1,669,305 1,428,646 31,592,367 Receivables: Employer contribution 478,080 Employee contribution 11,067 28,556 Accrued interest and dividends 190 316,943 Other 10,551 ----------- ----------- ------------ Total receivables 11,257 834,130 ----------- ----------- ------------ Total assets 1,680,562 1,428,646 32,426,497 Liabilities: Miscellaneous payables (65,624) (117,607) ----------- ----------- ------------ Total liabilities (65,624) (117,607) ----------- ----------- ------------ Net assets available for plan benefits $ 1,614,938 $ 1,428,646 $ 32,308,890 =========== =========== ============
The accompanying notes are an integral part of this statement. - 5 - SANTA FE ENERGY RESOURCES SAVINGS INVESTMENT PLAN STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION DECEMBER 31, 1994
Fund Information ------------------------------------------------------------------------------------------- Fixed S&P Company Growth Interest Index Stock Wellington Equity Loan Fund Fund Fund Fund Fund Fund Total ----------- ---------- ---------- ---------- ---------- ----------- ----------- ASSETS Investments, at fair value: Cash ............................... $ 46,564 $ 14,965 $ 7,507 $ 8,771 $ 6,439 $ 84,246 TCB - Short-term investment ........ 101,513 44,781 157,827 22,340 22,411 348,872 Santa Fe Energy Resources common stock ..................... 4,860,902 4,860,902 Mutual funds ....................... 1,240,564 654,325 1,894,889 Commingled trust funds ............. 3,503,181 2,883,320 6,386,501 Loans to participants .............. $ 1,383,024 1,383,024 ----------- ---------- ---------- ---------- ---------- ----------- ----------- 3,651,258 2,943,066 5,026,236 1,271,675 683,175 1,383,024 14,958,434 Investments, at contract value: Prudential Investment Contract ..... 7,930,037 7,930,037 Travelers Investment Contract ...... 3,894,064 3,894,064 ----------- ---------- ---------- ---------- ---------- ----------- ----------- Total investments .......... 15,475,359 2,943,066 5,026,236 1,271,675 683,175 1,383,024 26,782,535 Receivables: Employer contribution .............. 366,210 366,210 Accrued interest and dividends ..... 82,070 260 736 19,827 7,793 11,407 122,093 ----------- ---------- ---------- ---------- ---------- ----------- ----------- Total receivables .......... 82,070 260 366,946 19,827 7,793 11,407 488,303 ----------- ---------- ---------- ---------- ---------- ----------- ----------- Net assets available for plan benefits $15,557,429 $2,943,326 $5,393,182 $1,291,502 $ 690,968 $ 1,394,431 $27,270,838 =========== ========== ========== ========== ========== =========== ===========
The accompanying notes are an integral part of this statement. - 6 - SANTA FE ENERGY RESOURCES SAVINGS INVESTMENT PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION FOR THE YEAR ENDED DECEMBER 31, 1995
Fund Information --------------------------------------------------------- Fixed S&P Company Interest Index Stock Wellington Fund Fund Fund Fund ------------ ----------- ----------- ----------- Additions to net assets attributed to:- Investment income: Interest and dividends ............ $ 954,769 $ 5,249 $ 8,253 $ 42,770 Net unrealized appreciation in value of investments ......... 1,083,976 958,943 327,082 Net realized gain on sale of assets 16,293 115,972 11,854 Contributions: Employer ............................. 1,294,377 Employees ............................ 840,613 324,916 151,741 208,153 Transfers from other plans ........... 66,096 184,139 50,619 3,682 ------------ ----------- ----------- ----------- Total additions ................. 1,861,478 1,614,573 2,579,905 593,541 ------------ ----------- ----------- ----------- Deductions to net assets attributed to: Loan defaults Net distributions to participants .... (1,261,221) (218,487) (406,450) (60,230) Interfund transfers .................. (806,588) 323,519 (331,803) 191,630 ------------ ----------- ----------- ----------- Total deductions ................ (2,067,809) 105,032 (738,253) 131,400 ------------ ----------- ----------- ----------- Net increase (decrease) ................. (206,331) 1,719,605 1,841,652 724,941 Net assets available for plan benefits: Beginning of period .................. 15,557,429 2,943,326 5,393,182 1,291,502 ------------ ----------- ----------- ----------- End of period ........................ $ 15,351,098 $ 4,662,931 $ 7,234,834 $ 2,016,443 ============ =========== =========== ===========
Fund Information ------------------------------------------ Growth Equity Loan Fund Fund Total ----------- ----------- ------------ Additions to net assets attributed to:- Investment income: Interest and dividends ............ $ 3,038 $ 104,196 $ 1,118,275 Net unrealized appreciation in value of investments ......... 239,786 2,609,787 Net realized gain on sale of assets 554 144,673 Contributions: Employer ............................. 1,294,377 Employees ............................ 172,696 1,698,119 Transfers from other plans ........... 4,141 308,677 ----------- ----------- ------------ Total additions ................. 420,215 104,196 7,173,908 ----------- ----------- ------------ Deductions to net assets attributed to: Loan defaults ........................ (89,702) (89,702) Net distributions to participants .... (99,766) (2,046,154) Interfund transfers .................. 603,521 19,721 0 ----------- ----------- ------------ Total deductions ................ 503,755 (69,981) (2,135,856) ----------- ----------- ------------ Net increase (decrease) ................. 923,970 34,215 5,038,052 Net assets available for plan benefits: Beginning of period .................. 690,968 1,394,431 27,270,838 ----------- ----------- ------------ End of period ........................ $ 1,614,938 $ 1,428,646 $ 32,308,890 =========== =========== ============
The accompanying notes are an integral part of this statement. - 7 - SANTA FE ENERGY RESOURCES SAVINGS INVESTMENT PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION FOR THE YEAR ENDED DECEMBER 31, 1994
Fund Information --------------------------------------------------------- Fixed S&P Company Interest Index Stock Wellington Fund Fund Fund Fund ------------ ----------- ----------- ----------- Additions to net assets attributed to:- Investment income: Interest and dividends .......... $ 995,177 $ 2,552 $ 4,627 $ 60,088 Net unrealized appreciation (depreciation) in value of investments .................... 36,763 (678,971) (59,948) Net realized gain (loss) on sale of assets ................. 2,831 (34,895) (1,866) Contributions: Employer ........................... 1,352,069 Employees .......................... 884,421 339,719 175,864 200,992 Transfers from other plans ......... 354,600 66,066 3,322 82,424 ------------ ----------- ----------- ----------- Total additions ............... 2,234,198 447,931 822,016 281,690 ------------ ----------- ----------- ----------- Deductions to net assets attributed to: Net distributions to participants .. (3,316,576) (424,276) (705,605) (285,061) Interfund transfers ................ 570,971 (162,787) (394,531) 65,275 ------------ ----------- ----------- ----------- Total deductions .............. (2,745,605) (587,063) (1,100,136) (219,786) ------------ ----------- ----------- ----------- Net increase (decrease) ............... (511,407) (139,132) (278,120) 61,904 Net assets available for plan benefits: Beginning of period ................ 16,068,836 3,082,458 5,671,302 1,229,598 ------------ ----------- ----------- ----------- End of period ...................... $ 15,557,429 $ 2,943,326 $ 5,393,182 $ 1,291,502 ============ =========== =========== ===========
Fund Information ---------------------------------------- Growth Equity Loan Fund Fund Total --------- ----------- ------------ Additions to net assets attributed to:- Investment income: Interest and dividends .......... $ 8,964 $ 155,209 $ 1,226,617 Net unrealized appreciation (depreciation) in value of investments .................... 13,928 -- (688,228) Net realized gain (loss) on sale of assets ................. 84 -- (33,846) Contributions: Employer ........................... -- 1,352,069 Employees .......................... 129,839 -- 1,730,835 Transfers from other plans ......... 9,500 -- 515,912 --------- ----------- ------------ Total additions ............... 162,315 155,209 4,103,359 --------- ----------- ------------ Deductions to net assets attributed to: Net distributions to participants .. (113,813) -- (4,845,331) Interfund transfers ................ (38,960) (39,968) 0 --------- ----------- ------------ Total deductions .............. (152,773) (39,968) (4,845,331) --------- ----------- ------------ Net increase (decrease) ............... 9,542 115,241 (741,972) Net assets available for plan benefits: Beginning of period ................ 681,426 1,279,190 28,012,810 --------- ----------- ------------ End of period ...................... $ 690,968 $ 1,394,431 $ 27,270,838 ========= =========== ============
The accompanying notes are an integral part of this statement. - 8 - SANTA FE ENERGY RESOURCES SAVINGS INVESTMENT PLAN NOTES TO FINANCIAL STATEMENTS NOTE 1 - DESCRIPTION OF THE PLAN: The following description of the Santa Fe Energy Resources Savings Investment Plan (the Plan) is provided for general information purposes only. Participants should refer to the plan agreement for a more complete description of the Plan's provisions, as the document is controlling at all times. GENERAL The Plan is a defined contribution plan, established as the Santa Fe Energy Resources Retirement and Savings Plan, which became operative and was restated and renamed the Santa Fe Energy Resources Savings Investment Plan, effective November 1, 1990, in anticipation of the spin-off of Santa Fe Energy Resources, Inc. (SFER or the Company) from its parent company, Santa Fe Pacific Corporation (SFP). ADMINISTRATION OF THE PLAN The Plan is administered by the Employee Benefits Committee appointed by the Board of Directors of the Company. Texas Commerce Bank currently acts as trustee on behalf of the Plan. Hewitt Associates provides recordkeeping services to the Plan. ELIGIBILITY Substantially all salaried full-time employees of the Company are eligible to participate in the Plan on the first day of the month after their date of hire. Eligible employees may become participants in the Plan by authorizing regular payroll deductions and designating investment allocations for such deductions. CONTRIBUTIONS Participants may elect to contribute from 1% to 12% of their annual base pay. Tax-deferred contributions to the Plan by individual employees were limited to $9,240 in 1995 and 1994, respectively. This limitation is adjusted annually to reflect cost-of-living adjustments. Further, the Internal Revenue Code (Code) limits the total amount of contributions and forfeitures to the Plan (and all other defined contribution plans of the Company) to the lesser of 25% of total annual compensation or $30,000 per participant. The Plan is also subject to the "top-heavy" rules of the Code and regulations promulgated thereunder. These rules basically state that for any Plan year in which the Plan is "top-heavy", there are certain additional restrictions which apply with respect to the contributions which are permitted on behalf of key employees. There were no restrictions due to "top-heavy" provisions during 1995 or 1994. - 9 - The Company contributes (the Employer Matching Contribution) on behalf of each participant an amount equal to 100% of such participant's tax-deferred contributions up to 4% of his annual base pay. Employer Matching Contributions are entirely in the form of Company stock and held in the Company Stock Fund. At the end of each fiscal year, the Company may elect to make an additional matching contribution (Performance Match Contribution) if the performance of the Company meets or exceeds certain goals for that year. Under the Performance Match Contribution, participants may receive up to another 50 percent (2 percent of annual base pay) of each regular Company contribution. For the years ended December 31, 1995 and 1994, the Company made Performance Match Contributions of $377,870 and $362,550, respectively. The Performance Match Contribution amounts for 1995 and 1994 are accrued as a receivable from employer in the statement of financial condition at December 31, 1995 and 1994, respectively. Performance Match Contributions are entirely in the form of Company stock and held in the Company Stock Fund. A participant who receives a qualifying distribution from a former employer's retirement or savings plan may contribute the distribution to the Plan. Such contribution must be a "rollover" contribution in accordance with Section 402 of the Code or be made by a direct trust-to-trust transfer. PARTICIPANT ACCOUNTS Each participant's account is credited with the participant's contribution, and allocations of (a) the Company's contribution, (b) Plan earnings of each fund in which the participant has invested and (c) forfeitures of terminated participants' nonvested accounts on the same basis used to record assets in the financial statements. Forfeitures totaled $24,988 at December 31, 1995. VESTING Participants are 100% vested at all times with respect to their contributions and rollover accounts. Participants' employer contributions accounts vest at a rate of 20% per year for each full year of service and become 100% vested after five full years of service as well as in the case of death, total disability, attainment of normal retirement age or certain other circumstances. INVESTMENTS Participants can direct their investment decisions up to 12% of their annual base pay into one or all of the investment funds. Contribution rates may be changed at any time. As of December 31, 1995, the five investment funds of the Plan were as follows: o FUND 1 - the "Fixed Interest Fund" is a fund invested on a fixed income basis, primarily comprised of investment contracts issued by insurance companies and a bank company collective trust fund that invests primarily in money market types of investments. Such investments generally provide for a guarantee of the principal amount of the fund and a guaranteed fixed interest rate, which rate may be subject to modification from time to time. - 10 - o FUND 2 - the "Pooled Equity Fund" or "S&P Index Fund" is a fund invested in an undivided interest in the Wells Fargo Equity Index Fund managed by Wells Fargo Institutional Trust Company. This bank collective trust fund consists of investments that attempt to mirror the performance of the Standard & Poor's Composite Stock Index. o FUND 3 - the "Company Stock Fund" is a fund invested in the common stock of the Company. Dividends and other distributions or amounts received in respect of company stock held in Fund 3 shall be reinvested in such stock, and each such participant's account shall be credited with a proportionate number of such "new" shares. o FUND 4 - the "Wellington Fund" or "Balanced Fund" is a fund derived from contributions invested in a diversified and balanced mix of bonds and common stocks, with the objectives of principal preservation and achievement of reasonable income and capital appreciation without significant risk. This fund is managed by the Vanguard Group of Investment Companies. o FUND 5 - the "Vanguard World Fund - United States Growth Portfolio" or "Growth Equity Fund" is derived from contributions invested primarily in common stocks with the objective of long-term capital appreciation. The fund is managed by the Vanguard Group of Investment Companies. Notwithstanding the foregoing, the trustee may invest such portion of a fund in cash or short-term cash equivalents for liquidity purposes. LOANS Loans may be made pursuant to the Plan. In connection with such loans, the provisions of the Plan (1) provide for the securing of such loans by, among other things, the value of the participant's vested account balance, (2) provide a reasonable rate of interest, (3) set forth the maximum loan term, (4) establish any minimum and maximum loan amounts and (5) provide a fixed repayment schedule. Only one loan per employee may be outstanding at one time and no subsequent loans will be permitted until one month after the prior loan has been paid in full. During 1995, $652,925 of new loans were issued to participants and $467,340 of principal payments were received from participants. The interest rate charged on loans from the Plan at December 31, 1995 ranged from 6.875 to 10.75% depending upon the length and terms of the loan. WITHDRAWALS, TRANSFERS AND FORFEITURES In the event of a participant's death, 100% of the amounts in his accounts will be paid to his designated beneficiaries. In the event of termination of a participant's employment, the participant will receive a distribution of the vested value of their account as of the valuation date on or following their termination of employment or normal retirement date. The Plan also provides for hardship withdrawals under certain circumstances such as certain medical expenses, purchase of a principal residence or tuition for postsecondary education. Distributions may be made in a lump-sum payment or monthly instalments for a specified period or, in the case of accounts invested in Fund 3, can be paid all in stock or part in stock and part in cash. - 11 - Forfeitures of unvested employer contributions are applied against future employer contributions. The amount of forfeitures for the years ended December 31, 1995 and 1994 was $24,988 and $33,186, respectively. AMENDMENT AND TERMINATION The Board of Directors of the Company may, at any time, amend, discontinue contributions or terminate the Plan subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA). In the event of Plan termination, participants become fully vested in their accounts. NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: METHOD OF ACCOUNTING Financial statements of the Plan are prepared on the accrual basis of accounting and, accordingly, include all adjustments necessary to present fairly the financial position of the Plan. VALUATION OF INVESTMENTS Investments in the Fixed Income Fund are valued at contract or fair market value. Valuation of investments in common stock and shares in registered investment company funds is based upon published quotations for the last business day of the Plan year. The valuation of the investment in the S&P Index Fund is based upon its closing sales price reported for the last business day of the year. Loans are valued at cost which approximates fair market value. CONTRIBUTIONS Employee contributions are recorded in the period during which the Company makes payroll deductions from the Plan participants' earnings. Matching Company contributions are recorded in the same period. INCOME RECOGNITION Investment income for dividends and interest is recorded on the accrual basis, with dividends accrued on the ex-dividend date. BENEFITS Benefit claims are accrued when they have been processed and approved for payment by the Plan. Claims processed and approved, but not paid at December 31, 1995, are not shown as liabilities on the statement of net assets available for plan benefits but are reflected as liabilities on the Plan's 5500. EXPENSES Plan administrative expenses are borne by the Company. - 12 - NOTE 3 - INVESTMENTS: The following table presents the Plan's investments; investments that represent 5 percent or more of the Plan's net assets are separately identified.
December 31, ------------------------- 1995 1994 ----------- ----------- Investments at fair value as determined by quoted market price: Santa Fe Energy Resources common stock ..................... $ 6,590,526 $ 4,860,902 Vanguard Wellington Fund ................................... 2,006,197 1,240,564 Vanguard U.S. Growth Portfolio ............................. 1,619,496 654,325 LaSalle National Trust Income Plus Subfund ................. 3,215,248 3,503,181 Wells Fargo Equity Index Fund .............................. 4,567,388 2,883,320 Other investments .......................................... 1,231,838 433,118 ----------- ----------- 19,230,693 13,575,410 ----------- ----------- Investments at estimated fair value: Participant loans .......................................... 1,428,646 1,383,024 ----------- ----------- Investments at contract value: Prudential Group Annuity Contract #6607 .................... 7,330,862 7,930,037 Guaranteed Benefit Contracts with the Travelers, Contract #16314 and #16315; 6.250% to 6.450%; 12/31/96 to 12/31/97 ...................................... 3,602,166 3,894,064 ----------- ----------- 10,933,028 11,824,101 ----------- ----------- Total investments ..................................... $31,592,367 $26,782,535 =========== ===========
During 1995 and 1994, the Plan's investments (including gains and losses on investments sold during the year) appreciated (depreciated) in value by $2,800,082 and $(722,074), respectively, as follows:
Year ended December 31, ------------------------ 1995 1994 ----------- --------- Investments at fair value as determined by quoted market prices: S&P Index Fund .............................................. $ 1,100,269 $ 39,594 Company Stock Fund .......................................... 1,074,915 (713,866) Wellington Fund ............................................. 338,936 (61,814) Growth Equity Fund .......................................... 240,340 14,012 ----------- --------- $ 2,754,460 $(722,074) =========== =========
- 13 - NOTE 4 - TAX STATUS OF THE PLAN: The Internal Revenue Service has issued a favorable letter of determination with respect to the tax status of the Plan dated March 29, 1995. However, the Plan has been amended since receiving the determination letter. Management believes the Plan is currently designed and being operated in compliance with the applicable requirements of the Internal Revenue Code (Code) and therefore the related trust is exempt from federal income tax under Code Section 501(a). NOTE 5 - NET REALIZED GAIN OR LOSS ON INVESTMENTS: The net realized gain (loss) on the SFER, SFP and Realty Stock Funds represents sales of common stock, the proceeds of which have been distributed to participants or transferred to other funds. The realized gains (losses) represent the differences between the sales price and the market value of the investments at the beginning of the year, or average cost of the investment for sales of investments purchased during the current year. Under certain circumstances, the cost basis of the common stock for tax purposes may differ from the cost basis for financial reporting purposes. Net realized gains for the year ended December 31, 1995 were as follows:
ERISA realized Proceeds Cost gain ------------- ------------- ---------- S&P Index Fund $ 154,347 $ 138,054 $ 16,293 Company Stock Fund 924,540 808,568 115,972 Wellington Fund 164,519 152,665 11,854 Growth Equity Fund 4,465 3,911 554 ------------- ------------- ------------ $ 1,247,871 $ 1,103,198 $ 144,673 ============= ============= ============
Net realized gains (losses) for the year ended December 31, 1994 were as follows:
ERISA realized Proceeds Cost gain (loss) -------------- -------------- ------------ S&P Index Fund $ 347,864 $ 345,033 $ 2,831 Company Stock Fund 1,058,067 1,092,962 (34,895) Wellington Fund 211,518 213,384 (1,866) Growth Equity Fund 158,177 158,093 84 -------------- -------------- ----------- $ 1,775,626 $ 1,809,472 $ (33,846) ============== ============== ===========
- 14 - NOTE 6- DISTRIBUTIONS DUE TO PARTICIPANTS: Benefit payments requested but not yet paid to participants who have withdrawn from the Plan are as follows: December 31, --------------------------- 1995 1994 -------- -------- Fixed Interest Fund ...................... $127,773 $174,171 S&P Index Fund ........................... 60,177 9,748 Company Stock Fund ....................... 11,377 21,825 Wellington Fund .......................... 6,133 2,264 Growth Equity Fund ....................... 19,011 2,362 -------- -------- $224,471 $210,370 ======== ======== These amounts are reflected as liabilities in the Plan's 5500. - 15 - ADDITIONAL INFORMATION - 16 - SCHEDULE 1 SANTA FE ENERGY RESOURCES SAVINGS INVESTMENT PLAN ITEM 27A - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES DECEMBER 31, 1995
(a) (e) Party (b) (c) Number (d) Current in Interest Issuer Asset of Units Cost Value - ----------- ------ ----- -------- ------------ ------------ * Santa Fe Energy Resources, Inc. Common stock 684,730 $ 6,277,616 $ 6,590,526 Vanguard Wellington Fund, Inc. Mutual fund 82,120 1,695,106 2,006,197 Vanguard World Fund and Growth Portfolio Mutual fund 79,582 1,366,748 1,619,496 Wells Fargo Equity Index Fund Mutual fund 31,811 3,147,385 4,567,388 Lasalle National Bank Income plus fund 3,215,248 3,215,248 Texas Commerce Bancshares - Houston, N.A. Prime Portfolio Fixed Income Fund 887,481 887,481 887,481 Texas Commerce Bancshares - Houston, N.A. Prime Portfolio S&P Index Fund 78,795 78,795 78,795 Texas Commerce Bancshares - Houston, N.A. Prime Portfolio Company Stock Fund 164,978 164,978 164,978 Texas Commerce Bancshares - Houston, N.A. Prime Portfolio Wellington Fund 50,775 50,775 50,775 Texas Commerce Bancshares - Houston, N.A. Prime Portfolio Growth Equity Fund 49,809 49,809 49,809 Prudential GA 6607, 6.5%-8% 7,330,862 7,330,862 Travelers GIC #16314 and #16315, 6.25%-6.45% 3,602,166 3,602,166 Participant loans 1,428,646 1,428,646 ------------ ------------ $ 29,295,615 $ 31,592,367 ============ ============
- 17 - SCHEDULE 2 SANTA FE ENERGY RESOURCES SAVINGS INVESTMENT PLAN ITEM 27D - SCHEDULE OF REPORTABLE TRANSACTIONS FOR THE YEAR ENDED DECEMBER 31, 1995
(c) (d) (b) Number of Purchase price Selling price (a) Description ------------------- (current value at (current value at Party of Assets Purchases Sales Transaction Date) Transaction Date) ----- --------- --------- ----- ----------------- ----------------- Texas Commerce Bank Short-Term Investment Co. - Prime Series 257 134 $ 6,360,932 $ 5,634,432
(h) (b) Value on (i) (a) Description (g) transaction Net realized Party of Assets Cost date gain/(loss) ----- --------- ---- ---- ----------- Texas Commerce Bank Short-Term Investment Co. - Prime Series $ 5,634,432 $ 6,360,932 $ 0
Columns (e) and (f) have been omitted because they are not applicable. - 18 - INDEX TO EXHIBITS Exhibit No. Page - ----------- ---- 24 -- Consent of Independent Accountants 21 - 19 - EX-24 2 CONSENT OF INDEPENDENT ACCOUNTANTS EXHIBIT 24 CONSENT OF INDEPENDENT ACCOUNTANTS We hereby consent to the incorporation by reference in the Prospectus constituting part of the Registration Statements on Form S-8 (Nos. 33-37175, 33-44542 and 33-58613) of Santa Fe Energy Resources, Inc. of our report dated May 29, 1996 appearing on page 4 of the Annual Report of the Santa Fe Energy Resources Savings Investment Plan on Form 11-K for the year ended December 31, 1995. Houston, Texas May 29, 1996 - 20 - -----END PRIVACY-ENHANCED MESSAGE-----