-----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, U9vdJ8Sf73RSqorii8C6sOewgkmuNSwzVj0PBQVKCbTHx9QqyLJCUGYvf34EwXNI PaoniyDpezDcXH1ci0aa4w== 0000950152-01-505820.txt : 20020410 0000950152-01-505820.hdr.sgml : 20020410 ACCESSION NUMBER: 0000950152-01-505820 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20011113 ITEM INFORMATION: FILED AS OF DATE: 20011114 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BELDEN & BLAKE CORP /OH/ CENTRAL INDEX KEY: 0000880114 STANDARD INDUSTRIAL CLASSIFICATION: DRILLING OIL & GAS WELLS [1381] IRS NUMBER: 341686642 STATE OF INCORPORATION: OH FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-20100 FILM NUMBER: 1786798 BUSINESS ADDRESS: STREET 1: 5200 STONEHAM RD STREET 2: P O BOX 2500 CITY: NORTH CANTON STATE: OH ZIP: 44720 BUSINESS PHONE: 3304991660 MAIL ADDRESS: STREET 1: 5200 STONEHAM RD STREET 2: P O BOX 2500 CITY: NORTH CANTON STATE: OH ZIP: 44720 FORMER COMPANY: FORMER CONFORMED NAME: BELDEN & BLAKE ENERGY CORP /OH DATE OF NAME CHANGE: 19920427 8-K 1 l91333ae8-k.txt BELDEN & BLAKE CORPORATION 8-K SECURITIES AND EXCHANGE COMMISSION Washington, DC 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) November 13, 2001 ----------------- BELDEN & BLAKE CORPORATION --------------------------- (Exact name of registrant as specified in its charter) Ohio 0-20100 34-1686642 - ------------------------------ ------------------------ ------------------- (State or other jurisdiction of (Commission File Number) (IRS Employer incorporation) Identification No.) 5200 Stoneham Road, North Canton, Ohio 44720 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) (330) 499-1660 ---------------------------------- Registrant's telephone number, including area code Item 9. Regulation FD Disclosure Belden & Blake Corporation ("Belden & Blake" or the "Company") is furnishing the following information under Item 9 of this Current Report on Form 8-K. The information in this report is furnished pursuant to Item 9 and shall not be deemed to be "filed" for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section, except if the Company specifically states that the information is to be considered "filed" under the Exchange Act or incorporates it by reference into a filing under the Securities Act of the Exchange Act. This report will not be deemed an admission as to the materiality of any information in the report that is required to be disclosed solely by Regulation FD. The information in this document includes forward-looking statements that are made pursuant to Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements, and the business prospects of Belden & Blake are subject to a number of risks and uncertainties which may cause the Company's actual results in future periods to differ materially from the forward-looking statements contained herein. These risks and uncertainties include, but are not limited to, the Company's access to capital, the market demand for and prices of oil and natural gas, the Company's oil and gas production and costs of operation, results of the Company's future drilling activities, the uncertainties of reserve estimates and environmental risks. These and other risks are described in the Company's 10-K and 10-Q reports and other filings with the Securities and Exchange Commission. 2001 OPERATIONAL OUTLOOK
QUARTER ENDING ---------------------------------------------------------- YEAR ENDING MARCH 31 JUNE 30 SEPTEMBER 30 DECEMBER 31 DECEMBER 31 ------------ ---------- ------------- -------------- ------------- (UNAUDITED) (ESTIMATED RANGES) --------------------------------------- -------------------------------- (Dollars in millions, except as noted) PRODUCTION Gas (Mmcf) 4,483 4,551 4,680 4,700 - 4,900 18,414 - 18,614 Oil (Mbbls) 156 162 173 158 - 164 649 - 655 Total production (Mmcfe) 5,416 5,520 5,717 5,648 - 5,884 22,301 - 22,537 Production expense per Mcfe $ 1.01 $ 1.03 $ 1.06 $ 0.98 - 1.03 $ 1.01 - 1.04 Production taxes per Mcfe 0.13 0.14 0.10 0.08 - 0.10 0.11 - 0.12 Exploration expense $ 1.4 $ 2.2 $ 2.3 $ 2.0 - 2.5 $ 7.9 - 8.4 General and administrative 1.1 1.0 1.1 1.1 - 1.3 4.3 - 4.5 Gas gathering, marketing and oilfield services margin 0.5 1.6 1.3 1.3 - 1.6 4.7 - 5.0
To manage its exposure to natural gas price volatility, the Company may partially hedge its physical gas sales prices by selling futures contracts on the New York Mercantile Exchange ("NYMEX") or by selling NYMEX based commodity derivative contracts which are placed with major financial institutions that the Company believes are minimal credit risks. The contracts may take the form of futures contracts, swaps, collars or options. The Company's financial results and cash flows can be significantly impacted as commodity prices fluctuate widely in response to changing market conditions. Accordingly, the Company may modify its fixed price contract and financial hedging positions by entering into new transactions or terminating existing contracts. The following table reflects the natural gas volumes and the weighted average prices under financial hedges (including settled hedges), fixed price contracts and costless collars at September 30, 2001:
NATURAL GAS SWAPS FIXED PRICE CONTRACTS ------------------------------------------------- -------------------------- ESTIMATED ESTIMATED NYMEX PRICE WELLHEAD ESTIMATED WELLHEAD QUARTER ENDING BBTU PER MMBTU PRICE PER MCF MMCF PRICE PER MCF - -------------------- -------------- --------------- --------------- ---------- ------------- December 31, 2001 2,400 $ 4.77 $ 4.99 1,000 $ 4.42 ====== ========== ========== ========== ========== March 31, 2002 2,550 $ 4.95 $ 5.20 1,050 $ 4.57 June 30, 2002 2,550 4.61 4.76 780 4.25 September 30, 2002 2,550 4.61 4.76 630 4.30 December 31, 2002 2,550 4.63 4.84 560 4.45 ------ ---------- ---------- ---------- ---------- 10,200 $ 4.70 $ 4.89 3,020 $ 4.41 ====== ========== ========== ========== ========== March 31, 2003 960 $ 3.79 $ 4.04 65 $ 2.50 June 30, 2003 960 3.79 3.94 65 2.50 September 30, 2003 960 3.79 3.94 65 2.50 December 31, 2003 960 3.79 3.99 65 2.50 ------ ---------- ---------- ---------- ---------- 3,840 $ 3.79 $ 3.98 260 $ 2.50 ====== ========== ========== ========== ==========
NATURAL GAS COLLARS ------------------------------------------------- NYMEX PRICE ESTIMATED PER MMBTU WELLHEAD QUARTER ENDING BBTU FLOOR/CAP PRICE PER MCF - ---------------------- -------------- -------------- --------------- March 31, 2003 1,650 $ 3.40 - 5.23 $ 3.60 - 5.43 June 30, 2003 1,650 3.40 - 5.23 3.60 - 5.43 September 30, 2003 1,650 3.40 - 5.23 3.60 - 5.43 December 31, 2003 1,650 3.40 - 5.23 3.60 - 5.43 ------ ----------- ----------- 6,600 $ 3.40 - 5.23 $ 3.60 - 5.43 ====== ============= =============
BBTU - BILLION BRITISH THERMAL UNITS MMCF - MILLION CUBIC FEET MMBTU - MILLION BRITISH THERMAL UNITS MCF - THOUSAND CUBIC FEET At September 30, 2001, the natural gas swaps and collars above represented approximately $28.0 million in unrealized gains. The Company currently expects to spend approximately $41 million during 2001 on its drilling activities, acquisitions and other capital expenditures. The Company currently expects to spend $26 million to drill 175 gross (152.4 net) wells in 2001. The Company's actual drilling activity in 2001 will be impacted by the availability of drilling rigs, other oil field goods and services and changes in commodity prices. The Company intends to finance its planned capital expenditures through its available cash flow, available revolving credit line and the sale of non-strategic assets. At September 30, 2001, the Company had approximately $42.6 million available under its existing revolving credit line. 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. Date: November 13, 2001 BELDEN & BLAKE CORPORATION ----------------- (Registrant) By: /s/ Robert W. Peshek -------------------------- Robert W. Peshek, Vice President and Chief Financial Officer -----END PRIVACY-ENHANCED MESSAGE-----