-----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, Ro56YzQVP0BEx5GcHSoexpLYP8AeQtoydfwAj7U4Xownp3YfCKuA+NIsiHn/FyVK rMihqKjbfJOAQkXL/VSBYg== 0000950129-97-003163.txt : 19970811 0000950129-97-003163.hdr.sgml : 19970811 ACCESSION NUMBER: 0000950129-97-003163 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19970725 ITEM INFORMATION: Acquisition or disposition of assets ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19970808 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: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-07667 FILM NUMBER: 97654811 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 8-K 1 SANTA FE ENERGY RESOURCES, INC. - 7/25/97 1 ================================================================================ SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 --------------- FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF SECURITIES EXCHANGE ACT OF 1934 --------------- JULY 25, 1997 SANTA FE ENERGY RESOURCES, INC. (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) DELAWARE 1-7667 36-2722169 (STATE OR OTHER JURISDICTION (COMMISSION FILE NO.) (I.R.S. EMPLOYER OF INCORPORATION) IDENTIFICATION NO.)
1616 SOUTH VOSS ROAD, SUITE 1000, HOUSTON, TEXAS 77057 (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE) ================================================================================ REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (713) 507-5000 2 ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS On July 25, 1997, Santa Fe Energy Resources, Inc. (the "Company") distributed to the holders of the issued and outstanding common stock, par value $0.01 per share, of the Company (the "Common Stock") a special dividend of 45,350,000 shares of common stock, par value $0.01 per share, of Monterey Resources, Inc. ("Monterey") representing all of the Monterey common stock owned by the Company (the "Distribution"). Each of the holders of Common Stock received .441074 of a share of Monterey common stock for each share of Common Stock owned by such holders. No fractional shares were issued in the Distribution. Cash was paid to the holders of Common Stock in lieu of fractional shares at the rate of $14.313 per share of Monterey common stock. These shares of Monterey are fully paid and nonassessable and the holders thereof will not be entitled to preemptive rights. The shares distributed in the Distribution represent approximately 82.8% of the issued and outstanding shares of Monterey. No holders of the Common Stock were required to pay any cash or other consideration for the shares of Monterey stock received in the Distribution, or to surrender or exchange shares of Common Stock in order to receive the Monterey stock. This Distribution was made to all of the holders of the Common Stock of the Company as of July 18, 1997 (the "Record Date"). Only the holders of Common Stock on the Record Date participated in the Distribution from the Company. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS (B)(1) SANTA FE ENERGY RESOURCES, INC. UNAUDITED PRO FORMA CONDENSED FINANCIAL STATEMENTS The unaudited pro forma condensed consolidated statement of operations for the three months ended March 31, 1997 and the year ended December 31, 1996 and the unaudited pro forma condensed consolidated balance sheet at March 31, 1997 (collectively, the "Pro Forma Financial Statements") have been prepared from the historical financial statements of Santa Fe Energy Resources, Inc. ("Santa Fe" or the "Company"). The unaudited pro forma condensed consolidated statements of operations for the three months ended March 31, 1997 and the year ended December 31, 1996 have been prepared as if the pro rata distribution by Santa Fe to its common shareholders of all of the shares of common stock of Monterey Resources, Inc. ("Monterey") that it owns by means of a tax-free distribution (the "Distribution"), had occurred as of January 1, 1996 and the unaudited pro forma condensed consolidated balance sheet has been prepared as if the Distribution had occurred as of March 31, 1997. The Pro Forma Financial Statements are not necessarily indicative of the current or future financial position or results of operations of Santa Fe and such statements should be read in the context of Santa Fe's historical consolidated financial statements. The pro forma adjustments are based upon currently available information and contain estimates and assumptions. Management believes that the estimates and assumptions provide a reasonable basis for presenting the significant effects of the transactions as contemplated and that the pro forma adjustments give appropriate effect to these estimates and assumptions and are properly applied in the Pro Forma Financial Statements. -2- 3 SANTA FE ENERGY RESOURCES, INC. UNAUDITED PRO FORMA CONDENSED STATEMENT OF OPERATIONS (IN MILLIONS OF DOLLARS, EXCEPT AS NOTED)
Year Ended December 31, 1996 ----------------------------------------------- Santa Fe Pro Forma Santa Fe Historical (1) Adjustments(2) Pro Forma --------------- --------------- --------------- Revenues Crude oil and liquids produced . . . . . . . . . . . . . $ 455.4 $ (269.9)(3) $ 185.5 Natural gas produced . . . . . . . . . . . . . . . . . . 105.8 (1.3)(3) 104.5 Crude oil purchased . . . . . . . . . . . . . . . . . . 21.1 (21.1)(3) - Other . . . . . . . . . . . . . . . . . . . . . . . . 1.0 (0.6)(3) 0.4 ---------- ---------- ----------- 583.3 (292.9) 290.4 ---------- ---------- ----------- Costs and Expenses Production and operating . . . . . . . . . . . . . . . . 188.4 (107.8)(3) 80.6 Cost of crude oil purchased . . . . . . . . . . . . . . 20.8 (20.8)(3) - Exploration, including dry hole costs . . . . . . . . . 34.5 (1.7)(3) 32.8 Depletion, depreciation and amortization . . . . . . . . 148.2 (37.4)(3) 110.8 Impairment of oil and gas properties . . . . . . . . . . 57.4 - 57.4 General and administrative . . . . . . . . . . . . . . . 30.1 (8.9)(3) 21.2 Taxes (other than income) . . . . . . . . . . . . . . . 26.5 (9.4)(3) 17.1 Loss (gain) on disposition of assets . . . . . . . . . . (12.1) - (12.1) ---------- ---------- ----------- 493.8 (186.0) 307.8 ---------- ---------- ---------- Income (Loss) from Operations . . . . . . . . . . . . . . . 89.5 (106.9) (17.4) Interest, net . . . . . . . . . . . . . . . . . . . . . (30.5) 23.8 (3) (6.7) Other income (expense) . . . . . . . . . . . . . . . . . (1.0) - (1.0) ---------- ---------- ----------- Income (Loss) Before Income Taxes and Minority Interest . . 58.0 (83.1) (25.1) Income taxes . . . . . . . . . . . . . . . . . . . . . . (14.3) 32.6 (3) 18.3 ---------- ---------- ----------- Income (Loss) Before Minority Interest . . . . . . . . . . 43.7 (50.5) (6.8) Minority interest in Monterey . . . . . . . . . . . . . (1.3) 1.3 (3) - ---------- ---------- ----------- Income (Loss) from Continuing Operations . . . . . . . . . 42.4 (49.2) (6.8) Preferred dividend requirement . . . . . . . . . . . . . (13.5) - (13.5) Convertible preferred repurchase premium . . . . . . . . (33.7) - (33.7) ----------- ---------- ----------- Earnings (Loss) from Continuing Operations to Common Shares $ (4.8) $ (49.2) $ (54.0) ========== ========== =========== Per Share Data (in dollars) Earnings (Loss) from Continuing Operations to Common Shares . . . . . . . . . . . . . . . . . . . . . . . $ (0.05) $ (0.60) ========== =========== Weighted average shares outstanding (in millions) . . . . . 90.6 90.6 ========== ===========
(1) The historical pro forma condensed statement of operations dues not reflect an extraordinary item - debt extinguishment costs of $6.0 million ($4.5 million of which relates to Monterey). (2) The unaudited pro forma condensed statement of operations does not give effect to (i) an estimated $3.9 million in advisory fees payable upon consummation of the Distribution, $3.7 million of which is payable by Monterey and $0.2 million of which is payable by the Company, (ii) $1.1 million of related Distribution costs and expenses ($0.8 million after giving effect to related income taxes) and (iii) $0.7 million in compensation expense resulting from the Distribution with respect to certain outstanding shares of restricted Common Stock. Such nonrecurring charges will be included in Santa Fe's Consolidated Statement of Operations. (3) Gives effect to the Distribution. -3- 4 SANTA FE ENERGY RESOURCES, INC. UNAUDITED PRO FORMA CONDENSED STATEMENT OF OPERATIONS (IN MILLIONS OF DOLLARS, EXCEPT AS NOTED)
Three Months Ended March 31, 1997 ----------------------------------------------- Santa Fe Pro Forma Santa Fe Historical Adjustments(1) Pro Forma --------------- ---------------- -------------- Revenues Crude oil and liquids produced . . . . . . . . . . . . . $ 127.3 $ (74.7)(2) $ 52.6 Natural gas produced . . . . . . . . . . . . . . . . . . 36.7 (0.3)(2) 36.4 Crude oil purchased . . . . . . . . . . . . . . . . . . 9.6 (9.6)(2) - Other . . . . . . . . . . . . . . . . . . . . . . . . 0.3 (0.2)(2) 0.1 ---------- ---------- ----------- 173.9 (84.8) 89.1 ---------- ---------- ----------- Costs and Expenses Production and operating . . . . . . . . . . . . . . . . 52.2 (31.1)(2) 21.1 Cost of crude oil purchased . . . . . . . . . . . . . . 10.7 (10.7)(2) - Exploration, including dry hole costs . . . . . . . . . 9.3 (0.3)(2) 9.0 Depletion, depreciation and amortization . . . . . . . . 33.6 (9.3)(2) 24.3 General and administrative . . . . . . . . . . . . . . . 7.1 (2.7)(2) 4.4 Taxes (other than income) . . . . . . . . . . . . . . . 7.5 (2.6)(2) 4.9 Loss (gain) on disposition of assets . . . . . . . . . . (2.3) - (2.3) ---------- --------------- ----------- 118.1 (56.7) 61.4 ---------- ---------- ----------- Income (Loss) from Operations . . . . . . . . . . . . . . . 55.8 (28.1) 27.7 Interest, net . . . . . . . . . . . . . . . . . . . . . (5.2) 3.9 (2) (1.3) Other income (expense) . . . . . . . . . . . . . . . . . (0.1) - (0.1) ---------- --------------- ----------- Income (Loss) Before Income Taxes and Minority Interest . . 50.5 (24.2) 26.3 Income taxes . . . . . . . . . . . . . . . . . . . . . . (19.9) 10.6 (2) (9.3) ---------- ---------- ----------- Income (Loss) Before Minority Interest . . . . . . . . . . 30.6 (13.6) 17.0 Minority interest in Monterey . . . . . . . . . . . . . (2.7) 2.7 (2) - ---------- ---------- ----------- Income (Loss) from Continuing Operations . . . . . . . . . 27.9 (10.9) 17.0 Preferred dividend requirement . . . . . . . . . . . . . (2.4) - (2.4) ---------- ---------- Earnings (Loss) from Continuing Operations to Common Shares . . . . . . . . . . . . . . . . . . . . . . . . . $ 25.5 $ (10.9) $ 14.6 ========== ========== ========== Per Share Data (in dollars) Earnings (Loss) from Continuing Operations to Common Shares Primary . . . . . . . . . . . . . . . . . . . . . . . $ 0.28 $ 0.16 ========== ========== Fully diluted . . . . . . . . . . . . . . . . . . . . $ 0.27 $ 0.14 ========== ========== Weighted average shares outstanding (in millions) . . . . . 91.2 91.2 ========== ==========
(1) The unaudited pro forma condensed statement of operations does not give effect to (i) an estimated $3.9 million in advisory fees payable upon consummation of the Distribution, $3.7 million of which is payable by Monterey and $0.2 million of which is payable by the Company, (ii) $1.1 million of related Distribution costs and expenses ($0.8 million after giving effect to related income taxes) and (iii) $0.7 million in compensation expense resulting from the Distribution with respect to certain outstanding shares of restricted Common Stock. Such nonrecurring charges will be included in Santa Fe's Consolidated Statement of Operations. (2) Gives effect to the Distribution. -4- 5 SANTA FE ENERGY RESOURCES, INC. UNAUDITED PRO FORMA CONDENSED BALANCE SHEET (IN MILLIONS OF DOLLARS) ASSETS
As of March 31, 1997 ----------------------------------------------- Santa Fe Pro Forma Santa Fe Historical Adjustments Pro Forma --------------- --------------- --------------- Current Assets Cash and cash equivalents . . . . . . . . . . . . . . . $ 43.6 $ (14.9)(2) $ 28.7 Accounts receivable . . . . . . . . . . . . . . . . . . 116.4 (46.7)(2) 69.7 Other current assets . . . . . . . . . . . . . . . . . . 31.1 (10.9)(2) 20.2 ---------- ---------- ----------- 191.1 (72.5) 118.6 ---------- ---------- ----------- Properties and Equipment, at cost Oil and gas (successful efforts accounting) . . . . . . 2,604.3 (1,029.3)(2) 1,575.0 Other 35.6 (15.0)(2) 20.6 ---------- ---------- ----------- 2,639.9 (1,044.3) 1,595.6 Accumulated depletion, depreciation, amortization and impairment . . . . . . . . . . . . . . . . . . . (1,691.1) 660.6 (2) (1,030.5) ---------- ---------- ----------- 948.8 (383.7) 565.1 ---------- ---------- ----------- Other Assets . . . . . . . . . . . . . . . . . . . . . . . 11.0 (1.5)(2) 9.5 ---------- ---------- ----------- $ 1,150.9 $ (457.7) $ 693.2 ========== ========== =========== LIABILITIES & SHAREHOLDER'S EQUITY Current Liabilities $ 5.0 (1) Accounts payable . . . . . . . . . . . . . . . . . . . . $ 101.2 (47.0)(2) $ 59.2 (0.2)(1) Income taxes payable . . . . . . . . . . . . . . . . . . 25.3 (1.1)(2) 24.0 Other current liabilities . . . . . . . . . . . . . . . 41.1 (7.2)(2) 33.9 ---------- ---------- ----------- 167.6 (50.5) 117.1 ---------- ---------- ----------- Long-Term Debt . . . . . . . . . . . . . . . . . . . . . . 274.5 (175.0)(2) 99.5 ---------- ---------- ----------- Long-Term Obligations 33.7 (3.6)(2) 30.1 ---------- ---------- ----------- (0.1)(1) Deferred Income Taxes . . . . . . . . . . . . . . . . . . . 69.2 (45.1)(2) 24.0 ---------- ---------- ----------- Minority Interest in Monterey . . . . . . . . . . . . . . . 31.0 (31.0)(3) - ---------- ---------- ----------- Convertible Preferred Stock, 7% Series . . . . . . . . . . 19.7 - 19.7 ---------- ---------- ----------- Shareholders' Equity $.732 Series A Preferred Stock . . . . . . . . . . . . . 91.4 - 91.4 Common Stock . . . . . . . . . . . . . . . . . . . . . . 0.9 0.9 Paid-in Capital . . . . . . . . . . . . . . . . . . . . 607.0 - 607.0 (4.7)(1) Accumulated deficit . . . . . . . . . . . . . . . . . . (141.0) (148.4)(2) (294.1) Unamortized restricted stock awards . . . . . . . . . . (2.8) 0.7 (2) (2.1) Foreign currency translation adjustment . . . . . . . . (0.3) - (0.3) ---------- ---------- ----------- 555.2 (152.4) 402.8 ---------- ---------- ----------- $ 1,150.9 $ (457.7) $ 693.2 ========== ========== ===========
(1) Gives effect to (i) an estimated $3.9 million in advisory fees payable upon consummation of the Distribution, $3.7 million of which is payable by Monterey and $0.2 million of which is payable by the Company and (ii) $1.1 million of related Distribution costs and expenses ($0.8 million after giving effect to related income taxes). (2) Gives effect to the Distribution. -5- 6 SIGNATURE 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. SANTA FE ENERGY RESOURCES, INC. By: /s/ David L. Hicks --------------------------------- David L. Hicks Vice President - Law and General Counsel Date: August 6, 1997 -6- -----END PRIVACY-ENHANCED MESSAGE-----