SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 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): July 29, 1997
PARKER & PARSLEY PETROLEUM COMPANY
(Exact name of Registrant as specified in its charter)
Delaware 1-10695 74-2570602
(State or other jurisdiction of Commission (I.R.S. Employer
incorporation or organization) File Number Identification Number)
303 West Wall, Suite 101, Midland, Texas 79701
(Address of principal executive offices) (Zip code)
Registrant's Telephone Number, including area code : (915) 683-4768
Not applicable
(Former name, former address and former fiscal year,
if changed since last report)
Page 1 of 10 pages.
Exhibit Index on Page 4.
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ITEM 5. Other Events
On July 29, 1997, the Company reported its financial results for the three
and six months ended June 30, 1997. These interim results are not necessarily
indicative of results for a full year and should be read in connection with the
consolidated financial statements and notes thereto included in the Company's
1996 Annual Report on Form 10-K. The announcement is included as Exhibit 20 to
this Report.
ITEM 7. Financial Statements and Exhibits
c) Exhibits
20. - Press Release
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PARKER & PARSLEY PETROLEUM COMPANY
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.
PARKER & PARSLEY PETROLEUM COMPANY
Date: July 30, 1997 By: /s/ Scott D. Sheffield
-----------------------------
Scott D. Sheffield, President
and Chief Executive Officer
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Exhibit Index
Exhibit No. Description
- ----------- -----------
20. Press Release
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Exhibit 20
Parker & Parsley Reports Second Quarter and Six Month Results
Midland, Texas, July 29, 1997...Parker & Parsley Petroleum Company("Parker
& Parsley") (NYSE:PDP) today announced financial and operating results for the
second quarter and six months ended June 30, 1997.
Second Quarter 1997
Parker & Parsley reported net income of $7.4 million ($.21 per share) on
revenues of $102.3 million compared to net income of $80.2 million ($2.24 per
share) on revenues of $182.5 million for the second quarter of 1996. The
decrease in net income was directly attributable to lower crude oil and natural
gas prices along with higher exploration expense associated with the Company's
expanding exploration efforts. In addition, the second quarter of 1996 included
a $68.4 million ($1.91 per share) gain on disposition of assets which primarily
resulted from the Company's divestiture of its Australasian oil and gas
properties.
Net cash provided by operations was $51.1 million and total weighted
average shares outstanding was 35.4 million for the second quarter of 1997.
For the second quarter, daily oil production increased 3,042 barrels or
10.6 percent to 31,663 barrels compared to 28,621 barrels during the second
quarter of 1996. Daily natural gas production increased 19.3 million cubic feet
or 9.5 percent to 222.2 million cubic feet from 202.9 million cubic feet during
the same period in 1996. Parker & Parsley's average crude oil price decreased
$2.00 per barrel or 9.8 percent to $18.41 per barrel compared to $20.41 per
barrel in the second quarter of 1996. The Company's average natural gas price
decreased $.14 per Mcf or 6.3 percent to $2.07 per Mcf compared to $2.21 per Mcf
for the same period in 1996.
Parker & Parsley Chairman, Scott D. Sheffield, stated "The strong increases
in oil and gas production volumes is the direct result of the Company's
extensive drilling program. The Company looks forward to the impending merger
with Mesa with great enthusiasm. The new Pioneer Natural Resources will have an
inventory of over 2,000 drilling locations, primarily located in the Spraberry,
West Panhandle and Hugoton Fields which we intend to exploit over the next three
years."
Year-to-Date 1997
For the six months ended June 30, 1997, Parker & Parsley reported net
income of $26.0 million ($.74 per share) on revenues of $215.9 million, compared
to net income of $94.9 million ($2.66 per share) on revenues of $300.8 million
for the same period in 1996. The first half of 1996 period includes a $74.8
million ($2.10 per share) gain on disposition of assets, offsetting the impact
of higher oil and gas production rates and reductions in production and interest
costs for the 1997 period.
Year-to-date, net cash provided by operations was $124.6 million and total
weighted average shares outstanding was 35.4 million.
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For the first half of 1997, daily oil production, net of production
associated with assets sold during 1996, increased 3,738 barrels or 13.3 percent
to 31,787 barrels compared to 28,049 barrels during the 1996 period and daily
natural gas production, net of production associated with assets sold during
1996, increased 30.4 million cubic feet or 16.5 percent to 215.2 million cubic
feet from 184.8 million cubic feet during the same period in 1996. The Company's
average crude oil price decreased $.10 per barrel to $19.20 per barrel compared
to $19.30 in the first half of 1996. The Company's average natural gas price
increased $.12 per Mcf or 5.6 percent to $2.26 per Mcf compared to $2.14 per Mcf
for the same period in 1996.
Pioneer Natural Resources
As previously announced, Parker & Parsley and MESA Inc. have signed a
definitive agreement to merge and create Pioneer Natural Resources Company, the
third largest independent oil and gas exploration and production company in the
United States. On June 27, 1997, the Securities and Exchange Commission declared
effective the Joint Proxy Statement/Prospectus for the proposed merger. Both
companies have scheduled special meetings on August 7, 1997 for stockholders to
vote on the proposed merger.
Scott D. Sheffield, Chief Executive Officer of Pioneer Natural Resources
stated " With the recent activity in the oil and gas industry, Pioneer Natural
Resources has positioned itself as an industry leader. Pioneer's growth strategy
is based upon internal growth through development of its existing asset base,
enhancement of its exploration efforts and strategic acquisitions and mergers.
We look forward to the finalization of the merger on August 7 and Pioneer's
ability to take advantage of opportunities that will bring additional value to
our shareholders."
Parker & Parsley Petroleum Company is one of the largest public
independent oil and gas exploration and production companies in the United
States. Parker & Parsley's oil and gas properties are located in the United
States, principally in the Permian Basin of West Texas, the onshore Gulf Coast
region of South Texas and Louisiana, the Mid-Continent region and in Argentina.
#####
For Information Contact:
Lon C. Kile (915) 683-4768
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PARKER & PARSLEY PETROLEUM COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
<TABLE>
June 30, December 31,
ASSETS 1997 1996
---------- ----------
<S> <C> <C>
Current assets $ 99,412 $ 117,039
Oil & Gas Properties 1,577,736 1,426,382
Gas Processing Facilities 50,770 59,276
Accumulated DD&A (489,143) (445,238)
Other Assets, Net 44,727 42,406
--------- ----------
$1,283,502 $1,199,865
========= ==========
LIABILITIES & STOCKHOLDERS' EQUITY
Current Liabilities $ 89,178 $ 90,970
Long-Term Debt 349,457 320,908
Other Noncurrent Liabilities 27,336 8,071
Deferred Income Taxes 73,800 60,800
Preferred Stock of Subsidiary 188,820 188,820
Stockholders' Equity 554,911 530,296
--------- ----------
$1,283,502 $1,199,865
========= ==========
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</TABLE>
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<TABLE>
PARKER & PARSLEY PETROLEUM COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except for per share data)
Three Months Ended Six Months Ended
June 30, June 30,
1997 1996 1997 1996
--------- ---------- --------- ---------
<S> <C> <C> <C> <C>
REVENUES:
Oil & Gas $ 94,847 $ 93,989 $ 198,626 $ 192,014
Natural Gas Processing 4,954 5,685 11,819 11,104
Interest & Other 680 1,256 2,833 2,423
Gain on Disposition of Assets, Net 1,862 81,578 2,637 95,249
-------- --------- -------- --------
102,343 182,508 215,915 300,790
COSTS AND EXPENSES:
Oil & Gas Production 22,397 22,042 44,208 47,841
Production Taxes 4,914 4,868 11,184 9,563
Natural Gas Processing 2,601 2,837 6,098 6,035
DD&A - Oil & Gas 28,491 26,177 54,860 54,773
DD&A - Gas Plants & Other 2,388 2,282 4,649 4,865
Exploration & Abandonments 10,800 5,775 18,415 10,761
G&A 8,270 6,630 14,990 12,990
Interest 10,259 11,370 20,154 26,052
Other 410 971 831 1,344
-------- --------- -------- --------
90,530 82,952 175,389 174,224
-------- --------- -------- --------
Income Before Income Taxes 11,813 99,556 40,526 126,566
Income Tax Provision (4,400) (19,400) (14,500) (31,700)
-------- --------- -------- --------
Net Income $ 7,413 $ 80,156 $ 26,026 $ 94,866
======== ========= ======== ========
Net Income Per Share:
Primary $ 0.21 $ 2.24 $ 0.74 $ 2.66
======== ========= ======== ========
Fully Diluted $ 0.21 $ 1.93 $ 0.71 $ 2.32
======== ========= ======== ========
Dividends Declared Per Share $ - $ - $ 0.05 $ 0.05
======== ========= ======== ========
Weighted Average Shares Outstanding 35,363 35,803 35,364 35,700
======== ========= ======== ========
</TABLE>
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<TABLE>
PARKER & PARSLEY PETROLEUM COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Three Months Ended Six Months Ended
June 30, June 30,
1997 1996 1997 1996
--------- --------- ----------- -----------
<S> <C> <C> <C> <C>
CASH FLOWS FROM OPERATIONS:
Net Income $ 7,413 $ 80,156 $ 26,026 $ 94,866
Depletion, Depreciation & Amortization 30,879 28,459 59,509 59,638
Exploration Expenses, including dry holes 8,168 4,339 14,191 8,247
Deferred Income Taxes 2,600 19,400 11,400 31,700
Gain on Disposition of Assets, Net (1,862) (81,578) (2,637) (95,249)
Other Noncash Items 1,733 1,417 2,180 1,677
Net Changes in Operating Assets & Liabilities 2,199 1,654 13,924 19,692
-------- -------- ---------- ----------
Net Cash Provided by Operations 51,130 53,847 124,593 120,571
Net Cash Provided by (Used in) Investing (90,096) 78,920 (157,972) 147,699
Net Cash Provided by (Used in) Financing 39,384 (98,999) 24,511 (228,434)
-------- -------- ---------- ----------
Effect of Exchange Rate Changes
on Cash & Cash Equivalents - - - 290
Net Increase (Decrease) in Cash &
Cash Equivalents 418 33,768 (8,868) 39,836
Cash & Cash Equivalents,
Beginning of Period 9,425 26,298 18,711 19,940
-------- -------- ---------- ----------
Cash & Cash Equivalents,
End of Period $ 9,843 $ 60,066 $ 9,843 $ 60,066
======== ======== ========== ==========
</TABLE>
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PARKER & PARSLEY PETROLEUM COMPANY
SUMMARY PRODUCTION, PRICE AND COST DATA
<TABLE>
Three Months Ended Six Months Ended
June 30, June 30,
1997 1996 1997 1996
------- ------- ------- -------
<S> <C> <C> <C> <C>
Average Daily Production:
Oil (Bbls) 31,663 28,621 31,787 31,432
Gas (Mcf) 222,210 202,862 215,230 209,866
Total Production:
Oil (MBBLS) 2,881 2,604 5,753 5,721
Gas (MMCF) 20,221 18,460 38,957 38,196
Equivalent Barrels (MBOE) 6,251 5,681 12,246 12,087
Average Price:
Oil $18.41 $20.41 $19.20 $19.30
Gas $2.07 $2.21 $2.26 $2.14
Production Costs Per BOE:
Operating Expenses $3.58 $3.88 $3.61 $3.96
Production Taxes $0.79 $0.86 $0.91 $0.79
------- ------- ------- -------
Total $4.37 $4.74 $4.52 $4.75
</TABLE>
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