SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K/A No. 1
CURRENT REPORT
Pursuant to section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) October 3, 1996
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Seagull Energy Corporation
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(Exact name of registrant as specified in charter)
Texas
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(State or other jurisdiction of incorporation)
1-8094 74-1764876
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(Commission File Number) (IRS Employer Identification No.)
1001 Fannin, Suite 1700, Houston, Texas 77002 -6714
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(Address of principal executive offices) (Zip Code)
(713) 951-4700
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(Registrant's telephone number including area code)
Not Applicable
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(Former name or former address, if changed since last report)
<PAGE>
AMENDMENT NO. 1
The undersigned registrant hereby amends the following items,
financial statements, exhibits or other portions of its Current Report on Form
8-K dated October 3, 1996 as set forth below:
Item 7. Financial Statements and Exhibits
(c) Exhibits.
99.2 Supplemental consolidated statements of earnings and cash flows of
Seagull and Global for each of the quarters in the three quarters
ended September 30, 1996 and four quarters ended December 31, 1995
and the supplemental consolidated balance sheets of Seagull
and Global as of September 30, June 30, and March 31, 1996 and
December 31, 1995.
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<PAGE>
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 thereunto duly authorized.
Date: November 11, 1996
SEAGULL ENERGY CORPORATION
By: /s/ WILLIAM L. TRANSIER
William L. Transier
Senior Vice President and
Chief Financial Officer
(Principal Financial Officer)
By: /s/ GORDON L. MCCONNELL
Gordon L. McConnell
Vice President and
Controller
(Principal Accounting Officer)
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<PAGE>
EXHIBIT INDEX
Page
Exhibit Description Number
99.2 Supplemental consolidated statements of earnings and
cash flows of Seagull and Global for each of the
quarters in the three quarters ended September 30,
1996 and four quarters ended December 31, 1995 and
the supplemental consolidated balance sheets of
Seagull and Global as of September 30, June 30, and
March 31, 1996 and December 31, 1995.
EXHIBIT 99.2
<PAGE>
SUPPLEMENTAL FINANCIAL INFORMATION
On October 3, 1996, the shareholders of Seagull Energy Corporation, a
Texas corporation ("Seagull"), and the shareholders of Global Natural Resources
Inc., a New Jersey corporation ("Global"), approved a merger of a wholly owned
subsidiary of Seagull into Global (the "Merger"). As a result of the Merger,
Global became a wholly owned subsidiary of Seagull. The transaction will be
accounted for as a "pooling of interests." Each issued and outstanding share of
common stock of Global was converted into .88 of a share of common stock of
Seagull.
The accompanying historical consolidated balance sheets and statements
of earnings and cash flows have been restated to reflect the combined results of
operations of Seagull and Global. Certain adjustments were made to conform the
accounting policies and presentation used by Seagull and Global. The
accompanying historical consolidated balance sheets and statements of earnings
and cash flows do not include estimated merger costs of approximately $8-10
million (before tax) to be recognized in the fourth quarter of 1996.
The accompanying financial information has been prepared by Seagull,
without audit, and is provided for supplemental purposes only. Certain
information and footnote disclosures normally included in financial statements
prepared in accordance with generally accepted accounting principles have been
omitted. The financial information presented herein should be read in
conjunction with the consolidated financial statements and notes included in
Seagull's Annual Report on Form 10-K for the year ended December 31, 1995 and
Global's Annual Report on Form 10-K for the year ended December 31, 1995.
-1-
<PAGE>
SEAGULL ENERGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS (1)
(Dollars in Thousands Except Per Share Amounts)
(Unaudited)
<TABLE>
<CAPTION>
Quarter Ended Nine Months
----------------------------------------------- Ended
March 31, June 30, Sept. 30, Sept. 30,
1996 1996 1996 1996
-------------- ------------ ------------ ---------------
<S> <C> <C> <C> <C>
Revenues:
Gas and oil operations................... $101,410 $ 96,734 $98,175 $296,319
Alaska transmission and distribution..... 35,430 15,703 12,611 63,744
-------------- ------------ ------------ ---------------
136,840 112,437 110,786 360,063
Costs of Operations:
Alaska transmission and distribution
cost of gas sold....................... 16,200 6,257 4,517 26,974
Operations and maintenance............... 34,073 35,447 35,323 104,843
Exploration charges...................... 6,594 13,591 10,654 30,839
Depreciation, depletion and amortization. 37,547 37,651 36,533 111,731
-------------- ------------ ------------ ---------------
94,414 92,946 87,027 274,387
-------------- ------------ ------------ ---------------
Operating Profit........................... 42,426 19,491 23,759 85,676
Other (Income) Expense:
General and administrative............... 4,725 5,665 3,643 14,033
Interest expense......................... 11,446 11,237 10,795 33,478
Loss (gain) on sales of property,
plant and equipment, net............... (434) 53 (2,330) (2,711)
Interest income and other................ (395) (607) (1,986) (2,988)
-------------- ------------ ------------ ---------------
15,342 16,348 10,122 41,812
-------------- ------------ ------------ ---------------
Earnings Before Income Taxes............... 27,084 3,143 13,637 43,864
Income Tax Expense......................... 8,772 6,077 6,179 21,028
-------------- ------------ ------------ ---------------
Net Earnings (Loss)........................ $ 18,312 $(2,934) $ 7,458 $ 22,836
============== ============ ============ ===============
Earnings (Loss) Per Share.................. $ 0.29 $ (0.05) $ 0.12 $ 0.36
============== ============ ============ ===============
Weighted Average Number of Common Shares
Outstanding (in thousands)............... 62,972 62,592 63,934 63,828
============== ============ ============ ===============
</TABLE>
(1) Restated to include Seagull and Global combined on a pooling of interests
basis. Amounts do not include estimated merger costs to be recognized in
1996's fourth quarter of $8-10 million (before tax).
-2-
<PAGE>
SEAGULL ENERGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS (1)
(Dollars in Thousands Except Per Share Amounts)
(Unaudited)
<TABLE>
<CAPTION>
Quarter Ended
------------------------------------------------------------------ Year Ended
March 31, June 30, Sept. 30, Dec. 31, Dec. 31,
1995 1995 1995 1995 1995
-------------- -------------- ------------ ------------- -------------
<S> <C> <C> <C> <C> <C>
Revenues:
Gas and oil operations................... $ 76,137 $ 81,035 $73,026 $80,458 $310,656
Alaska transmission and distribution..... 36,290 17,560 12,355 31,565 97,770
-------------- -------------- ------------ ------------- -------------
112,427 98,595 85,381 112,023 408,426
Costs of Operations:
Alaska transmission and distribution
cost of gas sold....................... 18,565 7,923 4,779 15,061 46,328
Operations and maintenance............... 35,978 35,208 33,058 31,959 136,203
Exploration charges...................... 12,238 8,251 9,750 9,984 40,223
Depreciation, depletion and amortization. 40,284 38,434 35,668 33,024 147,410
Impairment of gas and oil properties..... 48,842 - - - 48,842
-------------- -------------- ------------ ------------- -------------
155,907 89,816 83,255 90,028 419,006
-------------- -------------- ------------ ------------- -------------
Operating Profit (Loss).................... (43,480) 8,779 2,126 21,995 (10,580)
Other (Income) Expense:
General and administrative............... 3,989 10,893 3,601 4,815 23,298
Interest expense......................... 14,049 13,959 13,605 11,365 52,978
Loss (gain) on sales of property,
plant and equipment, net............... (419) 66 (81,963) (1,072) (83,388)
Interest income and other................ (634) (600) (1,665) (1,613) (4,512)
-------------- -------------- ------------ ------------- -------------
16,985 24,318 (66,422) 13,495 (11,624)
-------------- -------------- ------------ ------------- -------------
Earnings (Loss) Before Income Taxes........ (60,465) (15,539) 68,548 8,500 1,044
Income Tax Expense (Benefit) .............. (17,699) (5,476) 24,856 1,101 2,782
-------------- -------------- ------------ ------------- -------------
Net Earnings (Loss)........................ $(42,766) $(10,063) $43,692 $ 7,399 $ (1,738)
============== ============== ============ ============= =============
Earnings (Loss) Per Share.................. $ (0.69) $ (0.16) $ 0.70 $ 0.12 $ (0.03)
============== ============== ============ ============= =============
Weighted Average Number of Common Shares
Outstanding (in thousands)............... 62,012 62,048 62,752 62,767 62,674
============== ============== ============ ============= =============
</TABLE>
(1) Restated to include Seagull and Global combined on a pooling of interests
basis. Amounts do not include estimated merger costs to be recognized
in 1996's fourth quarter of $8-10 million (before tax).
-3-
<PAGE>
SEAGULL ENERGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (1)
(Dollars in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
December 31, March 31, June 30, September 30,
1995 1996 1996 1996
---------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
ASSETS
Current Assets:
Cash and cash equivalents......................... $ 21,477 $ 38,044 $ 31,205 $ 32,937
Short-term liquid investments..................... 5,004 - - -
Accounts receivable, net.......................... 131,709 139,778 120,982 107,232
Inventories....................................... 6,969 6,618 6,806 14,080
Prepaid expenses and other........................ 16,272 14,861 9,240 11,106
---------------- -------------- -------------- --------------
Total Current Assets............................ 181,431 199,301 168,233 165,355
Property, Plant and Equipment - at cost (successful
efforts method for gas and oil properties)........ 1,783,163 1,807,328 1,862,023 1,973,664
Accumulated Depreciation, Depletion and Amortization 652,985 689,218 717,319 751,857
---------------- -------------- -------------- --------------
1,130,178 1,118,110 1,144,704 1,221,807
Other Assets........................................ 47,516 47,101 45,955 45,221
---------------- -------------- -------------- --------------
Total Assets........................................ $1,359,125 $1,364,512 $1,358,892 $1,432,383
================ ============== ============== ==============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable................................... $ 94,318 $ 94,602 $ 90,616 $ 84,945
Accrued expenses................................... 50,224 39,468 44,904 39,334
Current maturities of long-term debt............... 1,650 2,464 2,464 8,914
---------------- -------------- -------------- --------------
Total Current Liabilities........................ 146,192 136,534 137,984 133,193
Long-Term Debt....................................... 557,107 546,535 538,882 604,583
Other Noncurrent Liabilities......................... 53,237 53,066 54,205 53,620
Deferred Income Taxes................................ 29,586 34,408 35,300 40,665
Redeemable Bearer Shares............................. 16,591 16,462 16,265 16,103
Shareholders' Equity:
Common Stock...................................... 6,256 6,280 6,296 6,298
Additional paid-in capital........................ 477,018 479,481 481,304 481,667
Retained earnings................................. 80,635 98,947 96,013 103,471
Foreign currency translation adjustment........... 389 685 529 669
Less - note receivable from employee stock
ownership plan.................................. (4,922) (4,922) (4,922) (4,922)
Less - shares of Common Stock held in
Treasury, at cost............................... (2,964) (2,964) (2,964) (2,964)
---------------- -------------- -------------- --------------
Total Shareholders' Equity...................... 556,412 577,507 576,256 584,219
Commitments and Contingencies.......................
---------------- -------------- -------------- --------------
Total Liabilities and Shareholders' Equity.......... $1,359,125 $1,364,512 $1,358,892 $1,432,383
================ ============== ============== ==============
</TABLE>
(1) Restated to include Seagull and Global combined on a pooling of interests
basis. Amounts do not include estimated merger costs to be recognized
in 1996's fourth quarter of $8-10 million (before tax).
-4-
<PAGE>
SEAGULL ENERGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Nine Months
-------------------------------------- Ended
March 31, June 30, Sept. 30, Sept. 30,
1996 1996 1996 1996
--------- --------- --------- -------------
<S> <C> <C> <C> <C>
Operating Activities:
Net earnings (loss).......................................... $ 18,312 $ (2,934) $ 7,458 $ 22,836
Adjustments to reconcile net earnings (loss) to net cash
provided by operating activities:
Depreciation, depletion and amortization................... 38,294 38,577 37,389 114,260
Amortization of deferred financing costs................... 876 879 607 2,362
Deferred income taxes...................................... 4,762 921 5,337 11,020
Dry hole expense........................................... 754 8,554 4,829 14,137
Loss (gain) on sales of property, plant and equipment, net. (434) 53 (2,330) (2,711)
Other...................................................... (26) 159 64 197
--------- --------- --------- -------------
62,538 46,209 53,354 162,101
Changes in operating assets and
liabilities, net of acquisitions:
Decrease in short-term liquid investments................ 5,010 - - 5,010
Decrease (Increase) in accounts receivable............... (8,034) 18,799 20,715 31,480
Decrease (Increase) in inventories, prepaid
expenses and other...................................... 1,200 4,580 (1,038) 4,742
Increase (Decrease) in accounts payable.................. 8 (4,019) (6,948) (10,959)
Increase (Decrease) in accrued expenses and other........ (8,933) 6,723 (7,149) (9,359)
--------- --------- --------- -------------
Net Cash Provided By Operating Activities............. 51,789 72,292 58,934 183,015
Investing Activities:
Capital expenditures......................................... (25,916) (49,352) (60,678) (135,946)
Acquisitions, net of cash acquired........................... (877) (24,792) (74,484) (100,153)
Proceeds from sales of property, plant and equipment......... 875 207 4,797 5,879
Other........................................................ 344 962 591 1,897
--------- --------- --------- -------------
Net Cash Used In Investing Activities................. (25,574) (72,975) (129,774) (228,323)
Financing Activities:
Proceeds from revolving lines of credit and other borrowings. 91,750 43,810 136,999 272,559
Principal payments on revolving lines of credit and
other borrowings............................................ (100,027) (48,455) (62,536) (211,018)
Principal payments on monetary production payment liability.. (1,697) (2,953) (2,438) (7,088)
Proceeds from sales of common stock.......................... 2,347 1,501 152 4,000
Other........................................................ (2,031) (187) 541 (1,677)
--------- --------- --------- -------------
Net Cash Provided by (Used in) Financing Activities... (9,658) (6,284) 72,718 56,776
Effect of Exchange Rate Changes on Cash........................ 10 128 (146) (8)
--------- --------- --------- -------------
Increase (Decrease) In Cash And Cash Equivalents...... 16,567 (6,839) 1,732 11,460
Cash And Cash Equivalents At Beginning Of Period............... 21,477 38,044 31,205 21,477
--------- --------- --------- -------------
Cash And Cash Equivalents At End Of Period..................... $ 38,044 $ 31,205 $ 32,937 $ 32,937
========= ========= ========= =============
</TABLE>
(1) Restated to include Seagull and Global combined on a pooling of interests
basis. Amounts do not include estimated merger costs to be recognized
in 1996's fourth quarter of $8-10 million (before tax).
-5-
<PAGE>
SEAGULL ENERGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (1)
(Dollars in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
-------------------------------------------------- Year Ended
March 31, June 30, Sept. 30, Dec. 31, Dec. 31,
1995 1995 1995 1995 1995
---------- --------- --------- -------- ---------
<S> <C> <C> <C> <C> <C>
Operating Activities:
Net earnings (loss).......................................... $ (42,766) $ (10,063) $ 43,692 $ 7,399 $ (1,738)
Adjustments to reconcile net earnings (loss) to net cash
provided by operating activities:
Depreciation, depletion and amortization................... 41,128 39,242 36,423 34,968 151,761
Impairment of gas and oil properties....................... 48,842 - - - 48,842
Amortization of deferred financing costs................... 852 864 854 859 3,429
Deferred income taxes...................................... (20,481) (8,011) 18,033 (5,833) (16,292)
Dry hole expense........................................... 6,106 3,630 6,689 5,728 22,153
(Loss) gain on sales of property, plant and equipment, net. (419) 66 (81,963) (1,072) (83,388)
Other...................................................... 32 (957) 486 494 55
---------- --------- --------- -------- ---------
33,294 24,771 24,214 42,543 124,822
Changes in operating assets and
liabilities, net of acquisitions:
Decrease in short-term liquid investments................ 12,832 5,974 3,278 6,454 28,538
Decrease (Increase) in accounts receivable............... 21,345 3,798 2,824 (48,207) (20,240)
Decrease (Increase) in inventories, prepaid
expenses and other...................................... (1,983) 368 9,993 (8,066) 312
Increase (Decrease) in accounts payable.................. (6,696) (30,918) (1,349) 23,412 (15,551)
Increase (Decrease) in accrued expenses and other........ (13,298) 14,536 (17,001) 15,916 153
---------- ---------- --------- -------- ---------
Net Cash Provided By Operating Activities............. 45,494 18,529 21,959 32,052 118,034
Investing Activities:
Capital expenditures......................................... (27,933) (30,739) (35,523) (49,906) (144,101)
Proceeds from sales of property, plant and equipment......... 675 194 102,432 4,659 107,960
Other........................................................ (667) (2) 92 270 (307)
---------- ---------- --------- -------- ---------
Net Cash Provided By (Used In) Investing Activities... (27,925) (30,547) 67,001 (44,977) (36,448)
Financing Activities:
Proceeds from revolving lines of credit and other borrowings. 180,683 149,828 227,485 64,577 622,573
Principal payments on revolving lines of credit and
other borrowings............................................ (186,957) (139,342) (358,545) (50,243) (735,087)
Proceeds from monetary production payment liability.......... - - 46,242 - 46,242
Principal payments on monetary production payment liability.. - - - (2,386) (2,386)
Proceeds from sales of common stock.......................... 34 519 909 832 2,294
Other........................................................ (2,229) 75 (429) (1,427) (4,010)
---------- ---------- --------- -------- ---------
Net Cash Provided by (Used in) Financing Activities... (8,469) 11,080 (84,338) 11,353 (70,374)
Effect of Exchange Rate Changes on Cash........................ (1,104) 1,188 (304) 172 (48)
---------- ---------- --------- -------- ---------
Increase (Decrease) In Cash And Cash Equivalents...... 7,996 250 4,318 (1,400) 11,164
Cash And Cash Equivalents At Beginning Of Period............... 10,313 18,309 18,559 22,877 10,313
---------- ---------- --------- -------- ---------
Cash And Cash Equivalents At End Of Period..................... $ 18,309 $ 18,559 $ 22,877 $ 21,477 $ 21,477
========== ========== ========= ======== =========
</TABLE>
(1) Restated to include Seagull and Global combined on a pooling of interests
basis. Amounts do not include estimated merger costs to be recognized
in 1996's fourth quarter of $8-10 million (before tax).
-6-
