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 reported): February 12, 1999
MARKETSPAN CORPORATION
(Exact Name of Registrant as Specified in Its Charter)
New York
(State or Other Jurisdiction of Incorporation)
1-14161 11-3431358
(Commission File Number) (IRS Employer Identification No.)
175 East Old Country Road, Hicksville, New York 11801
One MetroTech Center, Brooklyn, New York 11201
(Address of Principal Executive Offices) (Zip Code)
(516) 755-6650 (Hicksville)
(718) 403-1000 (Brooklyn)
(Registrant's Telephone Number, Including Area Code)
N/A
(Former Name or Former Address, if Changed Since Last Report)
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Item 5. Other Events.
On February 9, 1999, MarketSpan Corporation d/b/a KeySpan Energy
("the Company") issued a press release concerning, among other things, the year
end operating results reported by the Houston Exploration Company, in which the
Company has a 64% share ownership.
The Company's press release is attached hereto as Exhibit 99 and is
incorporated herein by reference.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
(c) Exhibits
(1) Press Release of the Company dated February 9, 1999.
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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.
MARKETSPAN CORPORATION
Dated: February 12, 1999 By: /s/ Craig G. Matthews
--------------------------------
Title: President and
Chief Operating Officer
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INDEX TO EXHIBITS
Exhibit No. Exhibit Page
- ----------- ------- ----
99 Press Release, dated February 9, 1999 5
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Exhibit 99
KEYSPAN SEES POSITIVE OUTLOOK FOR HOUSTON EXPLORATION
Brooklyn and Hicksville, N.Y., February 9, 1999 -- The Houston Exploration
Company (NYSE:THX), in which KeySpan Energy (NYSE:KSE) has a 64% share
ownership, today reported a total net loss for fiscal 1998 of $72.7 million,
including a non-cash charge of $84.5 million.
This after-tax charge results from the application of the full-cost "ceiling
test" accounting method for The Houston Exploration Company as required by the
Securities and Exchange Commission. Houston Exploration based its ceiling test
determination on a wellhead gas price of $1.61 per mcf. KeySpan will
consequently take an impairment charge of $54 million to earnings. Excluding the
charge, Houston Exploration's net income was $11.8 million, or $7.6 million to
the consolidated earnings of KeySpan for the 12 months ending December 1998.
"Houston Exploration continues to generate positive operating income in a
low-pricing environment, demonstrating its ability to reduce unit costs,
increase production and take advantage of its price-hedging strategy," said
Robert B. Catell, Chairman and Chief Executive Officer of KeySpan Energy. "The
carrying-value revision will significantly reduce the company's depreciation,
depletion and amortization rate."
Houston Exploration also announced that it had increased its production by 22%
during 1998, to 63 bcfe from 51.3 bcfe, and that its total net proved reserves
increased 42%, to 480 bcfe from 337 bcfe a year ago.
"Even with the negative impact of the ceiling test impairment, we believe
Houston Exploration, with its increased production and reserve base and low
per-unit operating costs is well positioned for continued growth and good
performance in the future," noted Mr. Catell.
KeySpan Energy's two principal operating subsidiaries, each doing business under
the name Brooklyn Union, distribute natural gas to nearly 1.6 million customers
in the New York City boroughs of Staten Island, Brooklyn, and Queens, and the
Long Island counties of Nassau and Suffolk. Other KeySpan subsidiaries provide
gas-marketing and energy services, including system installation and management,
primarily in the greater New York metropolitan area; generate electricity
primarily in Nassau and Suffolk Counties at five plants and 42 smaller
facilities with an aggregate-rated generating capacity of 3,978 MW; and provide
electric transmission-and-distribution operating services and customer-billing
services to the Long Island Power Authority for its one- million electric
customers. Through investments by subsidiaries, Keyspan also owns interests in
domestic and international pipeline operations and international gas-
distribution operations.
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