-----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, Fy73rBV6kodR8cZ6VG1xHJXoiwd8RnXeTmaWigiWmJBepNaosIb7wOdsCojtyMbN gGksMSNUwhXlvm2khCYVBQ== 0000950152-03-004146.txt : 20030411 0000950152-03-004146.hdr.sgml : 20030411 20030411165556 ACCESSION NUMBER: 0000950152-03-004146 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20030331 ITEM INFORMATION: Other events ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030411 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: 03647474 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 l00213ae8vk.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) March 31, 2003 -------------- BELDEN & BLAKE CORPORATION -------------------------- (Exact name of registrant as specified in its charter) Ohio 0-20100 34-1686642 - ---------------------------------------------- --------------------------- --------------------------------- (State or other jurisdiction of incorporation) (Commission File Number) (IRS Employer 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 5. OTHER EVENTS DISCONTINUED OPERATIONS In December 2002, the Company disposed of all of its properties producing from the New York Medina formation. In applying the provisions of Financial Accounting Standards Board Statement of Financial Accounting Standards No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets," the Company defined a "component of an entity" as a geographical/geological pool used for depletion purposes. As such, the disposition of all of the wells in the New York Medina formation was classified as a discontinued operation. The loss on the sale of the New York Medina wells and the related results of these properties were reclassified as discontinued operations for all periods presented. See the Company's Form 10-K for the fiscal year ended December 31, 2002, as filed with the Securities and Exchange Commission. 2002 QUARTERLY RESULTS The following table sets forth certain information regarding the Company's net oil and natural gas production, margins and expenses for the four quarters of 2002, excluding discontinued operations. However, it does not exclude all properties sold in 2002.
FIRST SECOND THIRD FOURTH TOTAL ----------- ----------- ------------ ----------- ------------ (DOLLARS IN MILLIONS, EXCEPT AS NOTED) Production Gas (Mmcf) 4,213 4,069 3,978 3,622 15,882 Oil (Mbbls) 148 143 139 92 522 Total production (Mmcfe) 5,099 4,927 4,811 4,175 19,012 Production expense per Mcfe $0.96 $1.03 $1.01 $1.23 $1.05 Production taxes per Mcfe 0.09 0.10 0.08 0.11 0.09 Exploration expense excluding exploratory dry hole expense $2.1 $2.6 $3.0 $4.0 $11.7 General and administrative expense 1.2 1.2 1.1 1.1 4.6 Gas gathering, marketing and oilfield services margin 1.6 0.9 0.8 0.3 3.6 Mmcf - Million cubic feet Mmcfe - Million cubic feet of natural gas equivalent Mbbls - Thousand barrels Mcfe - Thousand cubic feet of natural gas equivalent
NATURAL GAS HEDGE POSITION The following tables reflect the natural gas volumes and the weighted average prices under financial hedges (including settled hedges) and fixed price contracts at April 8, 2003:
NATURAL GAS SWAPS NATURAL GAS COLLARS FIXED PRICE CONTRACTS ------------------------------------- ------------------------------------------ ----------------------------- ESTIMATED WELLHEAD NYMEX PRICE ESTIMATED ESTIMATED NYMEX PRICE PRICE PER MMBTU WELLHEAD PRICE ESTIMATED WELLHEAD PRICE QUARTER ENDING BBTU PER MMBTU PER MCF BBTU FLOOR/CAP (1) PER MCF (1) MMCF PER MCF - ----------------- -------- ------------ --------- ------- ----------------- --------------- ----------- ---------------- March 31, 2003 1,800 $ 3.92 $ 4.17 1,240 $ 3.40 - 5.23 $ 3.65 - 5.48 250 $ 3.78 June 30, 2003 2,660 4.21 4.36 480 3.40 - 5.23 3.55 - 5.38 120 3.42 September 30, 2003 1,800 3.92 4.07 1,290 3.40 - 5.23 3.55 - 5.38 70 2.85 December 31, 2003 1,800 3.92 4.14 1,290 3.40 - 5.23 3.62 - 5.45 60 2.56 -------- -------- -------- ------- -------------- --------------- ------- --------- 8,060 $ 4.01 $ 4.20 4,300 $ 3.40 - 5.23 $ 3.59 - 5.42 500 $ 3.42 ======== ======== ======== ======= ============== =============== ======= ========= March 31, 2004 2,040 $ 3.84 $ 4.09 1,080 $ 4.00 - 5.80 $ 4.25 - 6.05 55 $ 2.60 June 30, 2004 2,040 3.84 3.99 1,080 4.00 - 5.80 4.15 - 5.95 55 2.60 September 30, 2004 2,040 3.84 3.99 1,080 4.00 - 5.80 4.15 - 5.95 55 2.60 December 31, 2004 2,040 3.84 4.06 1,080 4.00 - 5.80 4.22 - 6.02 55 2.60 -------- -------- -------- ------- -------------- --------------- ------- --------- 8,160 $ 3.84 $ 4.03 4,320 $ 4.00 - 5.80 $ 4.19 - 5.99 220 $ 2.60 ======== ======== ======== ======= ============== =============== ======= ========= March 31, 2005 1,500 $ 3.84 $ 4.09 1,500 $ 4.00 - 5.37 $ 4.25 - 5.62 50 $ 2.60 June 30, 2005 1,500 3.73 3.88 1,500 4.00 - 5.37 4.15 - 5.52 50 2.60 September 30, 2005 1,500 3.73 3.88 1,500 4.00 - 5.37 4.15 - 5.52 50 2.60 December 31, 2005 1,500 3.73 3.95 1,500 4.00 - 5.37 4.22 - 5.59 50 2.60 -------- -------- -------- ------- -------------- --------------- ------- --------- 6,000 $ 3.76 $ 3.95 6,000 $ 4.00 - 5.37 $ 4.19 - 5.56 200 $ 2.60 ======== ======== ======== ======= ============== =============== ======= =========
Mcf - THOUSAND CUBIC FEET Mmbtu - MILLION BRITISH THERMAL UNITS Mmcf - MILLION CUBIC FEET Bbtu - BILLION BRITISH THERMAL UNITS (1) The NYMEX price per Mmbtu floor/cap and the estimated wellhead price per Mcf for the natural gas collars in 2004 assume the monthly NYMEX settles at $3.00 per Mmbtu or higher. If the monthly NYMEX settles at less than $3.00 per Mmbtu then the NYMEX price per Mmbtu will be the NYMEX settle plus $1.00 and the estimated wellhead price per Mcf will be the NYMEX settle plus $1.15 to $1.25. The NYMEX price per Mmbtu floor/cap and the estimated wellhead price per Mcf for the natural gas collars in 2005 assume the monthly NYMEX settles at $3.10 per Mmbtu or higher. If the monthly NYMEX settles at less than $3.10 per Mmbtu then the NYMEX price per Mmbtu will be the NYMEX settle plus $0.90 and the estimated wellhead price per Mcf will be the NYMEX settle plus $1.05 to $1.15. In March 2003, the Company entered into a costless collar for 4,320 Bbtu of its natural gas production in 2004 with a ceiling price of $5.80 per Mmbtu and a floor price of $4.00 per Mmbtu. The Company also sold a floor at $3.00 per Mmbtu on this volume of gas. This aggregate structure has the effect of: 1) setting a maximum price of $5.80 per Mmbtu; 2) floating at prices from $4.00 to $5.80 per Mmbtu; 3) locking in a price of $4.00 per Mmbtu if prices are between $3.00 and $4.00 per Mmbtu; and 4) receiving a price of $1.00 per Mmbtu above the price if the price is $3.00 or less. All prices are based on monthly NYMEX settle. In April 2003, the Company entered into a costless collar for 6,000 Bbtu of its natural gas production in 2005 with a ceiling price of $5.37 per Mmbtu and a floor price of $4.00 per Mmbtu. The Company also sold a floor at $3.10 per Mmbtu on this volume of gas. This aggregate structure has the effect of: 1) setting a maximum price of $5.37 per Mmbtu; 2) floating at prices from $4.00 to $5.37 per Mmbtu; 3) locking in a price of $4.00 per Mmbtu if prices are between $3.10 and $4.00 per Mmbtu; and 4) receiving a price of $0.90 per Mmbtu above the price if the price is $3.10 or less. All prices are based on monthly NYMEX settle. 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 2003 The Company's operational outlook for 2003 is based on its current productive wells and its low risk drilling plans for the remainder of 2003. Due to the uncertainty associated with exploratory drilling, acquisitions and dispositions, the Company does not include any projection of these activities in this 2003 outlook. Accordingly, actual results in 2003 may differ significantly from the outlook provided. The following table includes estimates given as of March 31, 2003, 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 sections address certain of the risks and uncertainties to which the Company is subject.
QUARTER ENDING YEAR ENDING MARCH 31, 2003 DECEMBER 31, 2003 ----------------------- ----------------------- (UNAUDITED, DOLLARS IN MILLIONS, EXCEPT AS NOTED) Production Gas (Mmcf) 3,330 - 3,480 14,400 - 14,900 Oil (Mbbls) 93 - 99 374 - 394 Total production (Mmcfe) 3,888 - 4,074 16,644 - 17,264 Production expense per Mcfe $ 1.10 - 1.13 $ 1.04 - 1.09 Production taxes per Mcfe 0.15 - 0.18 0.13 - 0.15 Exploration expense excluding exploratory dry hole expense $ 2.1 - 2.6 $ 7.0 - 8.0 General and administrative expense 1.0 - 1.1 4.2 - 4.6 Gas gathering, marketing and oilfield services margin 0.5 - 0.7 2.2 - 2.5
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: April 10, 2003 BELDEN & BLAKE CORPORATION ------------------- (Registrant) By: /s/ Robert W. Peshek ------------------------------------ Robert W. Peshek, Vice President and Chief Financial Officer -----END PRIVACY-ENHANCED MESSAGE-----