8-K 1 l97431ae8vk.txt BELDEN & BLAKE 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 22, 2002 ----------------- BELDEN & BLAKE CORPORATION -------------------------- (Exact name of registrant as specified in its charter) Ohio 0-20100 34-1686642 ---------------------------- ------------------------ ------------------- (State or other jurisdiction (Commission File Number) (IRS Employer of 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 Securities Exchange Act of 1934 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 Securities Exchange Act of 1934 or incorporates it by reference into a filing under the Securities Act of 1933 or the Securities Exchange Act of 1934. 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. OPERATIONAL OUTLOOK FOR 2002 The following table includes estimates given as of November 22, 2002, that are based on current expectations and currently available information. These forward-looking statements are subject to a number of risks and uncertainties which may cause the Company's actual results to differ materially from the following estimates. The preceding section addresses certain of the risks and uncertainties to which the Company is subject.
ESTIMATED ----------------------------------- QUARTER ENDING ------------------------------------------------------- YEAR ENDING MARCH 31 JUNE 30 SEPTEMBER 30 DECEMBER 31 DECEMBER 31 ----------- --------- ------------ -------------- ------------------ (UNAUDITED, DOLLARS IN MILLIONS, EXCEPT AS NOTED) Production Gas (Mmcf) 4,543 4,404 4,291 4,050 - 4,350 17,288 - 17,588 Oil (Mbbls) 148 143 139 97 - 107 527 - 537 Total production (Mmcfe) 5,431 5,265 5,126 4,632 - 4,992 20,454 - 20,814 Production expense per Mcfe $ 0.95 $ 1.02 $ 1.00 $ 0.96 - 1.01 $ 0.98 - 1.01 Production taxes per Mcfe 0.09 0.10 0.08 0.08 - 0.10 0.08 - 0.10 Exploration expense excluding exploratory dry hole expense $ 2.1 $ 2.6 $ 3.0 $ 2.0 - 2.6 $ 9.7 - 10.3 General and administrative expense 1.2 1.2 1.1 1.1 - 1.3 4.6 - 4.8 Gas gathering, marketing and oilfield services margin 1.6 1.0 0.8 0.5 - 1.0 3.9 - 4.4
MMCF - MILLION CUBIC FEET MCFE - THOUSAND CUBIC FEET OF NATURAL GAS EQUIVALENT MBBLS - THOUSAND BARRELS MMCFE - MILLION CUBIC FEET OF NATURAL GAS EQUIVALENT The decrease in oil and gas volumes in the fourth quarter of 2002 is primarily due to the sale of wells in Ohio during the first and third quarters of 2002 and natural production declines partially offset by production from wells drilled in 2001 and 2002. NATURAL GAS HEDGE POSITION The following table reflects the natural gas volumes and the weighted average prices under financial hedges (including settled hedges) and fixed price contracts at November 22, 2002:
NATURAL GAS COLLARS FIXED PRICE CONTRACTS ----------------------------------------------------------------------------- ------------------------ MONTHLY NYMEX SETTLE OF $1.75 MONTHLY NYMEX SETTLE OR HIGHER LOWER THAN $1.75 ---------------------------------- ------------------------- ESTIMATED ESTIMATED NYMEX PRICE ESTIMATED NYMEX WELLHEAD WELLHEAD PER MMBTU WELLHEAD PRICE PRICE PER PRICE PER ESTIMATED PRICE PER QUARTER ENDING BBTU FLOOR/CAP PER MCF MMBTU MCF MMCF MCF ------------------ ---------- ------------- ----------------- ----------- --------- --------- --------- December 31, 2002 2,130 $ 2.25 - 4.00 $ 2.47 - 4.22 Monthly Monthly 986 $ 4.09 ---------- ------------- ----------------- NYMEX NYMEX -------- --------- 2,130 $ 2.25 - 4.00 $ 2.47 - 4.22 settle plus settle plus 986 $ 4.09 ========== ============= ================= $0.50 $0.65 to ======== ========= March 31, 2003 1,290 $ 3.40 - 5.23 $ 3.65 - 5.48 $0.75 250 $ 3.78 June 30, 2003 1,290 3.40 - 5.23 3.55 - 5.38 120 3.42 September 30, 2003 1,290 3.40 - 5.23 3.55 - 5.38 70 2.85 December 31, 2003 1,290 3.40 - 5.23 3.62 - 5.45 60 2.56 ------ ------------ ------------ -------- --------- 5,160 $ 3.40 - 5.23 $ 3.59 - 5.42 500 $ 3.42 ====== ============== ============== ======== =========
NATURAL GAS SWAPS -------------------------------------------------- ESTIMATED NYMEX PRICE WELLHEAD PRICE QUARTER ENDING BBTU PER MMBTU PER MCF ------------------ --------- ---------------- --------------- December 31, 2002 650 $ 3.77 $ 3.95 --------- ---------------- --------------- 650 $ 3.77 $ 3.95 ========= ================ =============== March 31, 2003 1,800 $ 3.92 $ 4.17 June 30, 2003 1,800 3.92 4.07 September 30, 2003 1,800 3.92 4.07 December 31, 2003 1,800 3.92 4.14 ------ ------- ------- 7,200 $ 3.92 $ 4.12 ====== ======= ======= March 31, 2004 2,040 $ 3.84 $ 4.09 June 30, 2004 2,040 3.84 3.99 September 30, 2004 2,040 3.84 3.99 December 31, 2004 2,040 3.84 4.06 ------ ------- ------- 8,160 $ 3.84 $ 4.03 ====== ======= ======= March 31, 2005 1,500 $ 3.84 $ 4.09 June 30, 2005 1,500 3.73 3.88 September 30, 2005 1,500 3.73 3.88 December 31, 2005 1,500 3.73 3.95 ------ ------- ------- 6,000 $ 3.76 $ 3.95 ====== ======= =======
BBTU - BILLION BRITISH THERMAL UNITS MMCF - MILLION CUBIC FEET MMBTU - MILLION BRITISH THERMAL UNITS MCF - THOUSAND CUBIC FEET The Company has a $100 million revolving credit facility ("the Revolver"). Up to $30 million in letters of credit may be issued pursuant to the Revolver. At November 22, 2002, the Company had $11.4 million of outstanding letters of credit. At November 22, 2002, the outstanding balance under the credit agreement was $37.0 million with $51.6 million of borrowing capacity available for general corporate purposes. 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 25, 2002 BELDEN & BLAKE CORPORATION ----------------- (Registrant) By: /s/ Robert W. Peshek -------------------------------- Robert W. Peshek, Vice President and Chief Financial Officer