<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ending March 31, 1994
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number 1-8567-2
MAXUS ENERGY CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 75-1891531
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
717 North Harwood Street, Dallas, Texas 75201
(Address of principal executive offices) (Zip Code)
(214) 953-2000
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months, and (2) has been subject to the filing
requirements for the past 90 days.
YES (X) NO ( )
Shares of Common Stock outstanding at March 31, 1994: 134,424,136
<PAGE>
PART I. FINANCIAL INFORMATION
The accompanying consolidated financial statements have not been examined by
independent accountants, but in the opinion of the management of Maxus Energy
Corporation (the "Company"), all adjustments (consisting only of normal
accruals) necessary for a fair presentation of the consolidated results of
operations, consolidated balance sheet and consolidated cash flows at the date
and for the periods indicated have been included.
2
<PAGE>
MAXUS ENERGY CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(unaudited) (in millions, except per share)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Period Ended March 31, Three Months
1994 1993
----------------------
<S> <C> <C>
REVENUES
Sales and operating revenues $187.1 $192.0
Other revenues, net 5.3 5.4
- -------------------------------------------------------------------------------
192.4 197.4
COSTS AND EXPENSES
Operating expenses 62.1 59.6
Gas purchase costs 43.5 30.4
Exploration, including exploratory dry holes 9.3 12.7
Depreciation, depletion and amortization 38.2 37.2
General and administrative expenses 8.2 8.5
Taxes other than income taxes 4.3 4.0
Interest and debt expenses 22.5 21.9
- -------------------------------------------------------------------------------
188.1 174.3
----------------------
Income Before Income Taxes
and Cumulative Effect of Change in
Accounting Principle 4.3 23.1
Income Taxes 15.5 22.9
- -------------------------------------------------------------------------------
Loss Before Cumulative
Effect of Change in Accounting Principle (11.2) 0.2
Cumulative Effect of Change in Accounting Principle (4.4)
- -------------------------------------------------------------------------------
NET LOSS (11.2) (4.2)
Dividend requirement on preferred stock (12.3) (10.4)
- -------------------------------------------------------------------------------
Loss Applicable to Common Shares ($23.5) ($14.6)
===============================================================================
Loss before cumulative effect of change in
accounting principle ($0.17) ($0.07)
Cumulative effect of change in accounting principle (0.03)
- -------------------------------------------------------------------------------
Net Loss Per Common Share ($0.17) ($0.10)
===============================================================================
Average Common Shares Outstanding (in millions) 134.5 133.5
</TABLE>
See Notes to Consolidated Financial Statements (Unaudited).
3
<PAGE>
MAXUS ENERGY CORPORATION
CONSOLIDATED BALANCE SHEET
(in millions)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
March 31, December 31,
1994 1993
----------------------------
(Unaudited)
<S> <C> <C>
ASSETS
Current Assets
Cash and cash equivalents $ 90.7 $ 128.7
Short-term investments 32.2 33.6
Receivables, less doubtful receivables 130.2 156.8
Inventories 28.3 24.1
Restricted cash 24.4 38.4
Deferred income taxes 2.1 2.1
Prepaids and other current assets 17.0 21.0
- -------------------------------------------------------------------------------
Total Current Assets 324.9 404.7
Properties and equipment, less accumulated
depreciation and depletion of $2,099.9;
$2,063.2 in 1993 1,322.4 1,305.6
Investments and long-term receivables 97.8 94.2
Restricted cash 124.3 121.8
Intangible assets, less accumulated
amortization of $13.2; $12.9 in 1993 36.8 37.1
Deferred charges 23.8 24.0
- -------------------------------------------------------------------------------
TOTAL ASSETS $ 1,930.0 $1,987.4
===============================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Long-term debt $ 89.8 $ 39.7
Accounts payable 76.4 99.9
Accrued liabilities 110.7 107.7
Taxes payable 15.0 16.1
- -------------------------------------------------------------------------------
Total Current Liabilities 291.9 263.4
Long-term debt 1,017.0 1,015.4
Deferred income taxes 198.5 198.3
Other liabilities and deferred credits 109.0 112.4
Redeemable Preferred Stock, $1.00 par value
Authorized and issued shares--1,875,000
and 2,500,000 187.5 250.0
Stockholders' Equity
$2.50 Preferred Stock, $1.00 par value
Authorized shares--5,000,000
Issued shares--3,500,000 3.5 3.5
$4.00 Preferred Stock, $1.00 par value
Authorized shares--5,915,017
Issued shares--4,358,658 4.4 4.4
Common stock, $1.00 par value
Authorized shares--300,000,000
Issued shares--134,629,069 and 134,373,523 134.6 134.4
Paid-in capital 1,015.7 1,026.2
Accumulated deficit (1,004.9) (993.7)
Minimum pension liability (24.4) (24.4)
Common Treasury Stock, at cost--204,933
and 173,963 shares (2.8) (2.5)
- -------------------------------------------------------------------------------
Total Stockholders' Equity 126.1 147.9
- -------------------------------------------------------------------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,930.0 $1,987.4
===============================================================================
</TABLE>
See Notes to Consolidated Financial Statements (Unaudited). The Company
uses the successful efforts method to account for its oil and gas producing
activities.
4
<PAGE>
MAXUS ENERGY CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS
(unaudited) (in millions)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
Period Ended March 31,
1994 1993
--------------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $(11.2) $ (4.2)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Cumulative effect of change in accounting principle 4.4
Depreciation, depletion and amortization 38.2 37.2
Dry hole costs (0.5)
Income taxes 0.2 2.4
Other 4.7 4.8
Changes in components of working capital:
Receivables 25.8 (9.2)
Inventories, prepaids and other current assets (0.2) (1.6)
Accounts and taxes payable (24.6) (13.7)
Accrued liabilities 1.2 10.0
--------------------
NET CASH PROVIDED BY OPERATING ACTIVITIES 34.1 29.6
- -------------------------------------------------------------------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Expenditures for properties and equipment--
including dry hole costs (55.5) (77.2)
Expenditures for investments (5.1) (5.0)
Proceeds from sale of assets 0.4
Proceeds from sale/maturity of short-term investments 4.2 46.8
Purchases of short-term investments (2.8) (72.2)
Restricted cash 11.5 (4.1)
Other (1.7) (2.7)
--------------------
NET CASH USED IN INVESTING ACTIVITIES (49.0) (114.4)
- -------------------------------------------------------------------------------
CASH FLOWS FROM FINANCE ACTIVITIES:
Net borrowings from joint venture partners 0.3
Proceeds from the issuance of short-term debt 27.5
Repayment of short-term debt (8.4)
Proceeds from issuance of long-term debt 61.3 100.5
Repayment of long-term debt (29.0) (1.3)
Redemption of preferred stock (62.5)
Dividends paid (12.3) (10.4)
--------------------
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES (23.1) (88.8)
- -------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS (38.0) 4.0
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 128.7 6.8
- -------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 90.7 $ 10.8
===============================================================================
</TABLE>
See Notes to Consolidated Financial Statements (Unaudited).
5
<PAGE>
MAXUS ENERGY CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FIRST QUARTER 1994
(UNAUDITED)
LONG-TERM DEBT
On January 10, 1994, the Company issued $60.0 million of 9 3/8% notes due 2003
pursuant to a shelf registration statement which became effective in May 1993.
The proceeds from these debt securities are being used to redeem a portion of
long-term debt maturing in 1994, including $29.0 million of the Company's
medium-term notes which were redeemed in January 1994.
SHORT-TERM DEBT
At March 31, 1994, the balance in current portion of long-term debt was $89.8
million, consisting of $25.0 million outstanding under the terms of a purchase
and sale agreement for crude oil, $4.7 million owing to joint venture partners
and $60.1 million of medium-term notes maturing in 1994.
PREFERRED STOCK
On February 1, 1994, the Company redeemed the 625,000 shares of its $9.75
Cumulative Convertible Preferred Stock which were subject to mandatory
redemption provisions for $62.5 million.
ASSET DIVESTITURES
On April 26, 1994, Maxus and its subsidiaries sold all of its partnership
interests consisting of general partners' interests and units of limited
partnership interests in Diamond Shamrock Offshore Partners Limited Partnership
("DSP") to affiliates of Burlington Resources Inc. Maxus' interest in DSP was
approximately 87.12%. On April 25, 1994, DSP sold its interests in Main Pass
Blocks 72, 73 and 74 to Pogo Producing Company. Maxus also entered into a
contract with Burlington Resources Inc. to sell certain producing oil and gas
properties in Maxus' Southern Division owned directly by Maxus. See Item 5 of
Part II of this Form 10-Q for additional information and pro forma financial
data related to these divestitures.
6
<PAGE>
MAXUS ENERGY CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL
CONDITION
FIRST QUARTER 1994
RESULTS OF OPERATIONS
Maxus reported a net loss of $11 million for the first quarter of 1994, or after
preferred dividends, a loss of 17 cents per common share, compared to a net loss
of $4 million, or after preferred dividends, a loss of 10 cents per common
share, reported in the first quarter of 1993.
Sales and operating revenues for the first quarter of 1994 were $187 million,
compared to $192 million for the same period a year ago. The decrease was
primarily due to lower crude oil prices ($24 million negative price variance),
partially offset by higher natural gas prices ($11 million positive price
variance) and sales of additional gas volumes purchased for processing and/or
resale ($6 million positive volume variance).
Net worldwide crude production was 69 thousand barrels per day ("mbpd") in first
quarter 1994, compared to 68 mbpd in the same quarter a year ago. Domestic
crude production increased slightly as did net Indonesian production. However,
the slight increase in production was largely overshadowed by the dramatic drop
in crude prices ($3.78 per barrel) from last year, which negatively impacted
earnings $24 million.
Natural gas sales for the first quarter of 1994 were 375 million cubic feet per
day ("mmcfpd"), an increase of 31 mmcfpd over the first quarter 1993. Sales of
purchased gas volumes increased significantly from 148 mmcfpd in the first
quarter of 1993 to 191 mmcfpd for the same period this year, while produced
volumes declined 12 mmcfpd. The average gas price received in the United States
was $2.24 per thousand cubic feet ("mcf") in the first quarter 1994 as compared
to $1.90 per mcf a year ago.
Natural gas liquids sales in the United States for the first quarter 1994 were
19 mbpd, a slight decrease of 1 mbpd over first quarter last year. The average
sales price for natural gas liquids in the first quarter of 1994 was $9.23 per
barrel, a decrease of $3.22 per barrel from 1993.
Gas purchase costs were $13 million higher the first quarter of 1994 as compared
to first quarter 1993 due to increased volumes and prices for purchased gas in
the United States. However, this cost increase was recovered through higher
sales volumes and prices.
Income tax expense was $16 million and $23 million in the first quarters of 1994
and 1993, respectively. The lower taxes were driven primarily by decreased
revenues in Southeast Sumatra, resulting from the drop in crude oil prices.
First quarter 1993 results included a $4 million loss due to the adoption of
Statement of Financial Accounting Standards No. 112, "Employers' Accounting for
Postemployment Benefits," which requires an accrual method of recognizing
postemployment benefits. This expense, which was recorded as a cumulative
effect of a change in accounting principle, primarily represents accrued medical
benefits for long-term disability recipients.
FINANCIAL CONDITION
The Company's net cash provided by operating activities was $34 million in the
first quarter of 1994 compared to $30 million in the first quarter of 1993. Net
cash from operating activities before working capital changes declined $12
million during 1994 as a result of the decrease in crude oil prices. Net
working capital requirements , however, provided an additional $17 million
primarily due to the settlement of Indonesian underlift receivables in the first
quarter 1994.
7
<PAGE>
The Company began the year with $129 million of cash and cash equivalents. For
the first three months of 1994, additional cash was provided by operations ($34
million), net borrowings of $52 million and the release of $14 million in
restricted cash. In February 1994, the Company redeemed the portion of its
$9.75 Cumulative Convertible Preferred Stock subject to mandatory redemption
provisions for $63 million. After funding expenditures for properties and
equipment and paying the preferred dividends, a balance of $91 million in cash
and cash equivalents remained at March 31, 1994. In the first three months of
1993, year-end cash balances of $7 million, $30 million of cash provided by
operations and net borrowings of $99 million were used to fund expenditures for
properties and equipment and preferred dividends.
Expenditures for properties and equipment, including dry hole costs, were $56
million for the first three months of 1994 as compared to $77 million for the
same period last year. First quarter 1994 spending declined as a result of
Maxus' reduced capital program for 1994. Additionally, first-quarter 1993
spending included expenditures for the completion of the Sunray gas plant and
spending for the first phase of the Northwest Java gas project, which was
completed in late 1993.
Working capital (current assets less current liabilities) declined $108 million
from December 31, 1993. Short-term debt increased $50 million due to the
reclassification to current of $31 million of long-term debt maturing in 1994
not expected to be refinanced and $25 million outstanding under the terms of a
purchase and sales agreement for crude oil. Additionally, accounts receivable
declined $27 million, partially due to the settlement of Indonesian underlift
receivables in first quarter 1994. Cash and cash equivalents also declined $38
million from year end.
In January 1994, the Company issued $60 million of 9 3/8% notes due in 2013, the
proceeds of which will be used to redeem a portion of the medium-term notes
maturing in 1994.
OTHER EVENTS
On April 26, 1994, Maxus and its subsidiaries sold all of its partnership
interests, consisting of general partners' interests and units of limited
partnership interests, in Diamond Shamrock Offshore Partners Limited Partnership
("DSP") to affiliates of Burlington Resources Inc. for an aggregate of $291
million. Maxus' aggregate ownership interest in DSP was approximately 87.12%.
As a result of the sale, Meridian Offshore Company, a Burlington Resources Inc.
affiliate, became the managing general partner of DSP. Maxus also entered into
a contract with Burlington Resources Inc. to sell certain producing oil and gas
properties owned directly by Maxus for approximately $58 million. This sale is
expected to close during the second quarter. Prior to the sale of the DSP
units, DSP sold its interests in Main Pass Blocks 72, 73 and 74 to Pogo
Producing Company. These blocks were sold by the partnership on April 25, 1994
for $18 million, ($16 million, net to Maxus). Maxus anticipates recording a
gain of approximately $200 million ($140 million, net of tax) on these
transactions.
As previously announced, Maxus contemplated using asset sales, as well as cash
flow and project financing, to fund its 1994 spending program (originally $212
million, currently expected to be less than $200 million). The proceeds from
these asset sales will accomplish this objective as well as provide funds for
the repayment of maturing debt, preferred stock and other obligations.
Facilities testing in anticipation of production start-up in Ecuador was
initiated in April; however, due to an explosion in a crude production tank,
operations were shut-in pending repairs and design modifications to the
facility. Production is now projected to begin in late May.
Northwest Java gas volumes during the first quarter 1994 were well below our
planned volumes. While deliverability is available at or above contract
quantities, the purchaser is taking approximately one-half the contract volume
during the transition from traditional sources of fuel to natural gas for
electric power generation.
8
<PAGE>
PART II. OTHER INFORMATION
ITEM 5. OTHER INFORMATION
Effective April 26, 1994, Maxus Energy Corporation ("Maxus") and its affiliates
sold its partnership interests in Diamond Shamrock Offshore Partners Limited
Partnership ("DSP") to affiliates of Burlington Resources Inc. for approximately
$291 million. Maxus also entered into a contract with Burlington Resources to
sell certain producing oil and gas properties owned directly by Maxus for
approximately $58 million. This sale is expected to close during the second
quarter of 1994. Prior to the sale of the DSP units, DSP sold its interests in
Main Pass Blocks 72, 73 and 74 to Pogo Producing Company. These blocks were
sold by the partnership on April 25, 1994 for $18.1 million ($15.8 million, net
to Maxus). Maxus anticipates recording a gain of approximately $200 million
($140 million, net of tax) on these transactions.
The oil and gas reserves sold in these two transactions represent approximately
30% of Maxus' U.S. proved reserves (on a barrel of oil equivalent basis) and
approximately 9% of Maxus' worldwide reserves.
An unaudited pro forma balance sheet as of March 31, 1994 has been prepared as
if the divestitures had occurred at that date. The unaudited pro forma
statements of operations for the year ended December 31, 1993 and the three
months ended March 31, 1994 have been prepared as if the divestitures had
occurred at January 1, 1993 and January 1, 1994, respectively, after giving
effect to the pro forma financial adjustments described in Notes 1 and 2. The
pro forma data are not necessarily indicative of the financial results which
would have occurred had the divestitures been effective on those dates and
should not be viewed as indicative of the financial results of Maxus in future
periods.
9
<PAGE>
MAXUS ENERGY CORPORATION
UNAUDITED PRO FORMA STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1993
($ IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
Historical
Maxus Pro Forma Adjustments
Energy ---------------------------- Pro Forma
Corporation Debit Credit Results
------------- ------------- ------------- -------------
(Note 1)
<S> <C> <C> <C> <C>
REVENUES
Sales and operating revenues $786.7 $ 134.3 $652.4
Settlement of litigation 6.8 6.8
Other revenues, net 13.5 $ 3.4 16.9
------ ------- ------ ------
807.0 134.3 3.4 676.1
COSTS AND EXPENSES
Operating expenses 255.6 20.2 235.4
Gas purchase costs 155.6 43.9 111.7
Exploration, including exploratory dry holes 56.8 9.9 46.9
Depreciation, depletion and amortization 153.6 47.7 105.9
General and administrative expenses 34.8 34.8
Taxes other than income taxes 15.9 1.9 14.0
Interest and debt expenses 88.4 2.0 (b) 86.4
------ ------- ------ ------
760.7 0.0 125.6 635.1
------ ------- ------ ------
Income Before Income Taxes, Extraordinary Item
and Cumulative Effect of Change in Accounting Principle 46.3 (134.3) 129.0 41.0
Income Taxes 84.2 (9.6)(c) 74.6
------ ------- ------ ------
Net Loss Before Extraordinary Item and Cumulative Effect
of Change in Accounting Principle (37.9) $(134.3) $138.6 $(33.6)
======= ====== ======
Extraordinary item, net of tax benefit of $.1 (7.1)
Cumulative effect of change in accounting principle (4.4)
------
Net Loss (49.4)
Dividend requirement on Preferred Stock (41.7) (41.7)
------ ------
Loss Applicable to Common Shares $(91.1) $(75.3)
====== ======
Net Loss per Common Share Before Extraordinary Item
and Cumulative Effect of Change in Accounting Principle $(0.60) $(0.56)
======
Extraordinary item (0.05)
Cumulative effect of change in accounting principle (0.03)
------
Net Loss per Common Share $(0.68)
======
Average Common Shares Outstanding 133.9 133.9
</TABLE>
See notes to unaudited pro forma financial data.
10
<PAGE>
MAXUS ENERGY CORPORATION
UNAUDITED PRO FORMA STATEMENT OF OPERATIONS
For the Three Months Ended March 31, 1994
($ in millions, except per share amounts)
<TABLE>
<CAPTION>
Historical
Maxus Pro Forma Adjustments
Energy ----------------------- Pro Forma
Corporation Debit Credit Results
----------- --------- ---------- ---------
(Note 1)
<S> <C> <C> <C> <C>
REVENUES
Sales and operating revenues $187.1 $ 36.6 $150.5
Other revenues, net 5.3 0.1 5.2
----------- --------- --------- ---------
192.4 36.7 0.0 155.7
COSTS AND EXPENSES
Operating expenses 62.1 $ 4.8 57.3
Gas purchase costs 43.5 15.2 28.3
Exploration, including exploratory dry holes 9.3 1.3 8.0
Depreciation, depletion and amortization 38.2 11.3 26.9
General and administrative expenses 8.2 8.2
Taxes other than income taxes 4.3 0.4 3.9
Interest and debt expenses 22.5 0.8 (b) 21.7
----------- --------- --------- ---------
188.1 0.0 33.8 154.3
----------- --------- --------- ---------
Income Before Income Taxes 4.3 (36.7) 33.8 1.4
Income Taxes 15.5 (5.8)(c) 9.7
----------- --------- --------- ---------
Net Loss (11.2) (36.7) 39.6 (8.3)
Dividend requirement on Preferred Stock (12.3) (12.3)
----------- --------- --------- ---------
Loss Applicable to Common Shares $(23.5) $(36.7) $39.6 $(20.6)
=========== ========= ========= =========
Net Loss per Common Share $(0.17) $(0.15)
=========== =========
Average Common Shares Outstanding 134.5 134.5
See notes to unaudited pro forma financial data.
</TABLE>
11
<PAGE>
MAXUS ENERGY CORPORATION
UNAUDITED PRO FORMA BALANCE SHEET
March 31, 1994
($ in millions)
<TABLE>
<CAPTION>
Historical
Maxus Pro Forma Adjustments
Energy ---------------------- Pro Forma
Corporation Debit Credit Results
------------ -------- --------- ---------
<S> <C> <C> <C> <C>
Assets (Note 2)
Current Assets
Cash $ 4.6 $ 4.6
Cash equivalents 81.6 $271.4(b) 357.5
Short-term investments 32.2 32.2
Receivables, less doubtful receivables 130.2 $ 9.0 121.2
Inventories 28.3 1.6 26.7
Restricted cash 24.4 24.4
Deferred income taxes 2.1 2.1
Prepaid expenses 17.0 0.2 16.8
--------- ------ ------ --------
Total current assets 324.9 271.4 10.8 585.5
Investments 97.8 97.8
Properties and Equipment, less accumulated
depreciation and depletion 1,322.4 141.3 1,181.1
Intangible Assets 36.8 36.8
Restricted Cash 124.3 124.3
Deferred Charges 23.8 23.8
--------- ------ ------ --------
$ 1,930.0 $271.4 $152.1 $2,049.3
--------- ------ ------ --------
Liabilities and Stockholders' Equity
Current Liabilities
Current portion of long-term debt $ 89.8 $ 60.5(a) $ 29.3
Accounts payable 76.4 13.0 63.4
Taxes payable 15.0 $ 31.9 46.9
Accrued liabilities 110.7 1.9 108.8
--------- ------ ------ --------
Total current liabilities 291.9 75.4 31.9 248.4
Long-Term Debt 1,017.0 0.5(a) 1,016.5
Deferred Income Taxes 198.5 31.9 230.4
Other Liabilities 109.0 7.8 101.2
Redeemable Preferred Stock - 1,875,000 shares 187.5 187.5
Stockholders' Equity
$2.50 Preferred stock - 3,500,000 shares issued 3.5 3.5
$4.00 Preferred stock - 4,358,658 shares issued 4.4 4.4
Common stock - 134,629,069 shares issued 134.6 134.6
Paid-in capital 1,015.7 1,015.7
Minimum pension liability (24.4) (24.4)
Accumulated deficit (1,004.9) 139.2 (865.7)
--------- ------ ------ --------
128.9 0.0 139.2 268.1
Treasury stock, at cost - 204,933 shares (2.8) (2.8)
--------- ------ ------ --------
Total Stockholders' Equity 126.1 0.0 139.2 265.3
--------- ------ ------ --------
$ 1,930.0 $ 83.7 $203.0 $2,049.3
--------- ------ ------ --------
</TABLE>
See notes to unaudited pro forma financial data.
12
<PAGE>
MAXUS ENERGY CORPORATION
NOTES TO UNAUDITED PRO FORMA FINANCIAL STATEMENTS
NOTE 1 - The accompanying pro forma statements of operations give effect to the
following pro forma adjustments:
(a) The elimination of the operating results before income tax and interest
expense allocation of the divested properties for the year ended December 31,
1993 of $7.3 million and the quarter ended March 31, 1994 of $3.7 million.
(b) The reduction of interest expense of $2.0 million and $.8 million for the
year ended December 31, 1993 and quarter ended March 31, 1994, respectively, due
to the assumed repayment of $61 million of long-term debt.
(c) The allocation of U.S. federal income tax expense ($9.6 million for the
year ended December 31, 1993 and $5.8 million for the quarter ended March 31,
1994).
NOTE 2 - The accompanying pro forma balance sheet excludes the assets and
liabilities related to the divested properties. For purposes of the pro forma
balance sheet, a March 31, 1994 sale date is assumed.
(a) Assumes the repayment of approximately $61 million of long-term debt from
the proceeds of the divestiture transactions.
(b) Proceeds have been reduced to reflect the repayment of intercompany debt.
13
<PAGE>
PART II. OTHER INFORMATION
Item 5. Other Information.
The ratio of earnings to fixed charges and the ratio of earnings to
combined fixed charges and preferred stock dividends for the three-month period
ended March 31, 1994 have been computed on a consolidated basis to be 1.06 and
less than one, respectively. Earnings were inadequate to cover combined fixed
charges and preferred stock dividends for such quarter by $17.0 million.
For the purposes of these computations, earnings consist of income before
income taxes and fixed charges (excluding interest capitalized, net of
amortization). Fixed charges represent interest incurred, amortization of debt
expense nd that portion of rental expense deemed to be the equivalent of
interest.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits.
12.1 --Statement re Computation of Ratios.
(b) Reports on Form 8-K
Date of Report Items Reported
-------------- --------------
January 10, 1994 5 and 7
January 12, 1994 5 and 7
January 24, 1994 5 and 7
SIGNATURE
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.
MAXUS ENERGY CORPORATION
By: G. R. Brown
G. R. Brown, Vice President
and Controller, on behalf of
the registrant and as its
chief accounting officer
May 9, 1994
14
<PAGE>
Exhibit Index
Exhibit Title Exhibit No.
Statement re Computation of Ratios 12.1
<PAGE>
Exhibit 12.1
MAXUS ENERGY CORPORATION
STATEMENT COMPUTATION OF RATIOS
(in millions, except ratios)
<TABLE>
<CAPTION>
Three Months
Ended
Mar. 31,
1994
------------
<S> <C>
Earnings:
Net loss ................................................ $(11.2)
Add:
Provision for income taxes ........................... 15.5
Interest and debt expenses ........................... 22.5
Other fixed charges (a) .............................. 0.8
Rentals (b) .......................................... 7.3
------------
Total earnings .................................... $ 34.9
============
Fixed Charges:
Interest and debt expenses .............................. $ 22.5
Rentals ................................................. 7.3
Capitalized interest .................................... 3.0
Proportionate share of fixed charges of
unconsolidated associated companies 50% owned ........ 0.2
------------
Total fixed charges ............................... $ 33.0
------------
Preferred stock dividend requirement (c) ................ 18.9
------------
Combined fixed charges and preferred stock dividend $ 51.9
============
Ratio of earnings to fixed charges ......................... 1.06
Ratio of earnings to combined fixed charges and preferred
stock dividends ......................................... (d)
</TABLE>
(a) Other fixed charges include amortization of capitalized interest and the
proportionate share of fixed charges of unconsolidated associated companies
50% owned.
(b) The amount shown above for rentals represents that portion of rental expense
representative of the interest factor (which approximates 45%).
(c) The preferred stock dividend requirement was increased by the amount
representing pre-tax earnings which would be required to cover such dividend
requirement. Due to the mix of foreign and domestic income and losses, use
of the Company's effective tax rate per the consolidated financial
statements yielded meaningless results. Accordingly, the Company chose the
U.S. statutory federal income tax rate to better reflect the pre-tax
earnings necessary to cover the preferred stock dividend requirement.
(d) Earnings were inadequate to cover combined fixed charges and preferred stock
dividends for the quarter ended March 31, 1994 by $17.0 million.
