<PAGE>
===========================================================================
UNITED STATES
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 ended September 30, 1997
------------------
or
[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the transition period from _______ to _______
Commission file number 1-8246
SOUTHWESTERN ENERGY COMPANY
(Exact name of registrant as specified in its charter)
Arkansas 71-0205415
(State of incorporation (I.R.S. Employer
or organization) Identification No.)
1083 Sain Street, P.O. Box 1408, Fayetteville, Arkansas 72702-1408
(Address of principal executive offices, including zip code)
(501) 521-1141
(Registrant's telephone number, including area code)
No Change
(Former name, former address and former fiscal year; if changed
since last report)
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 twelve months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
Yes: X No:
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date:
Class Outstanding at November 5, 1997
---------------------------- ----------------------------
Common Stock, Par Value $.10 24,741,495
===========================================================================
- 1 -
<PAGE>
PART I
FINANCIAL INFORMATION
- 2 -
<PAGE>
SOUTHWESTERN ENERGY COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
ASSETS
<TABLE>
<CAPTION>
September 30, December 31,
1997 1996
--------- ---------
($ in thousands)
<S> <C> <C>
Current Assets
Cash $ 1,727 $ 2,297
Accounts receivable 28,339 39,928
Income taxes receivable 2,388 6,623
Inventories, at average cost 21,953 17,571
Under-recovered purchased gas costs, net 10,642 3,030
Other 4,640 3,484
--------- ---------
Total current assets 69,689 72,933
--------- ---------
Investments 7,173 6,557
--------- ---------
Property, Plant and Equipment, at cost
Gas and oil properties, using the
full cost method 689,153 637,100
Gas distribution systems 211,676 203,070
Gas in underground storage 26,748 25,636
Other 23,519 22,031
--------- ---------
951,096 887,837
Less: Accumulated depreciation,
depletion and amortization 354,501 319,135
--------- ---------
596,595 568,702
--------- ---------
Other Assets 13,832 11,998
--------- ---------
Total Assets $ 687,289 $ 660,190
========= =========
</TABLE>
The accompanying notes are an integral part
of the financial statements.
- 3 -
<PAGE>
SOUTHWESTERN ENERGY COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
LIABILITIES AND SHAREHOLDERS' EQUITY
<TABLE>
<CAPTION>
September 30, December 31,
1997 1997
--------- ---------
($ in thousands)
<S> <C> <C>
Current Liabilities
Current portion of long-term debt $ 3,071 $ 3,071
Accounts payable 29,327 25,644
Taxes payable 2,470 3,290
Interest payable 6,526 1,628
Customer deposits 4,965 4,904
Other 2,655 3,285
--------- ---------
Total current liabilities 49,014 41,822
--------- ---------
Long-Term Debt, less current portion above 283,514 275,214
--------- ---------
Other Liabilities
Deferred income taxes 133,821 128,895
Deferred investment tax credits 1,701 1,791
Other 4,517 4,527
--------- ---------
140,039 135,213
--------- ---------
Commitments and Contingencies
Shareholders' Equity
Common stock, $.10 par value; authorized
75,000,000 shares, issued 27,738,084
shares 2,774 2,774
Additional paid-in capital 21,372 21,336
Retained earnings 224,519 217,889
Less: Common stock in treasury, at cost,
2,996,589 shares in 1997 and
3,019,200 shares in 1996 33,383 33,603
Unamortized cost of 54,728
restricted shares in 1997
and 40,020 restricted shares
in 1996, issued under stock
incentive plan 560 455
--------- ---------
214,722 207,941
--------- ---------
Total Liabilities and Shareholders' Equity $ 687,289 $ 660,190
========= =========
</TABLE>
The accompanying notes are an integral part
of the financial statements.
- 4 -
<PAGE>
SOUTHWESTERN ENERGY COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
<TABLE>
<CAPTION>
Quarter Ended Nine Months Ended
September 30, September 30,
1997 1996 1997 1996
---------- ---------- ---------- ----------
($ in thousands, except per share amounts)
<S> <C> <C> <C> <C>
Operating Revenues
Gas sales $ 27,876 $ 27,177 $ 129,318 $ 119,013
Gas marketing 16,264 4,080 44,287 7,311
Oil sales 3,295 1,617 10,978 4,568
Gas transportation and other 1,209 1,550 4,224 4,778
---------- ---------- ---------- ----------
48,644 34,424 188,807 135,670
---------- ---------- ---------- ----------
Operating Costs and Expenses
Gas purchases - utility 2,773 2,490 30,049 25,607
Gas purchases - marketing 15,877 4,172 42,591 7,252
Operating and general 14,019 12,310 42,755 36,103
Depreciation, depletion and amortization 11,123 9,813 34,952 31,045
Taxes, other than income taxes 1,731 1,379 5,156 3,812
---------- ---------- ---------- ----------
45,523 30,164 155,503 103,819
---------- ---------- ---------- ----------
Operating Income 3,121 4,260 33,304 31,851
---------- ---------- ---------- ----------
Interest Expense 4,114 3,092 11,845 9,097
---------- ---------- ---------- ----------
Other Income (Expense) (1,068) (823) (3,441) (2,694)
---------- ---------- ---------- ----------
Income(Loss)Before Provision for Income Taxes (2,061) 345 18,018 20,060
---------- ---------- ---------- ----------
Income Tax Provision (Benefit)
Current (4,801) (3,431) 1,497 (710)
Deferred 4,007 3,564 5,440 8,433
---------- ---------- ---------- ----------
(794) 133 6,937 7,723
---------- ---------- ---------- ----------
Net Income (Loss) $ (1,267) $ 212 $ 11,081 $ 12,337
========== ========== ========== ==========
Weighted Average Common Shares Outstanding 24,742,129 24,707,412 24,732,972 24,703,385
========== ========== ========== ==========
Earnings(Loss)Per Share $(.05) $ .01 $ .45 $ .50
===== ===== ===== =====
Dividends Declared Per Share Payable 11/5/97
and 11/5/96 $ .06 $ .06 $ .06 $ .06
===== ===== ===== =====
</TABLE>
The accompanying notes are an integral part
of the financial statements.
- 5 -
<PAGE>
SOUTHWESTERN ENERGY COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended
September 30,
1997 1996
-------- --------
($ in thousands)
<S> <C> <C>
Cash Flows From Operating Activities
Net income $ 11,081 $ 12,337
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation, depletion and amortization 35,162 31,255
Deferred income taxes 5,440 8,433
Equity in loss of partnership 3,169 2,478
Change in assets and liabilities:
Decrease in accounts receivable 11,589 16,111
Decrease in income taxes receivable 4,235 3,809
Increase in inventories (4,382) (2,608)
Increase (decrease) in accounts payable 3,683 (7,814)
Decrease in taxes payable (820) (341)
Increase in interest payable 4,898 3,405
Increase in under-recovered
purchased gas costs (7,612) (7,426)
Net change in other current assets
and liabilities (1,726) (829)
-------- --------
Net cash provided by operating activities 64,717 58,810
-------- --------
Cash Flows From Investing Activities
Capital expenditures (64,751) (75,411)
Investment in partnership (3,726) -
Increase in gas stored underground (1,112) (3,753)
Other items 453 (832)
-------- --------
Net cash used in investing activities (69,136) (79,996)
-------- --------
Cash Flows From Financing Activities
Increase (decrease) in revolving long-term debt (66,700) 25,600
Issuance of long-term debt 75,000 -
Cash dividends (4,451) (4,447)
-------- --------
Net cash provided by financing activities 3,849 21,153
-------- --------
Decrease in cash (570) (33)
Cash at beginning of year 2,297 1,498
-------- --------
Cash at end of period $ 1,727 $ 1,465
======== ========
</TABLE>
The accompanying notes are an integral part
of the financial statements.
- 6 -
<PAGE>
SOUTHWESTERN ENERGY COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 1997
1. BASIS OF PRESENTATION
The financial statements included herein are unaudited; however, such
information reflects all adjustments (consisting solely of normal
recurring adjustments) which are, in the opinion of management,
necessary for a fair presentation of the results for the interim
periods. The Company's accounting policies are summarized in the 1996
Annual Report to Shareholders, Notes to Financial Statements.
Certain reclassifications have been made to the September 30, 1996,
financial statements in order to conform with the 1997 presentation.
These reclassifications had no effect on previously reported net
income.
2. DIVIDEND PAYABLE
A dividend of $.06 per share was declared October 8, 1997, payable
November 5, 1997.
3. INTEREST AND INCOME TAXES PAID
The following table provides interest and income taxes paid during each
period presented.
Three months Nine months
Periods Ended September 30 1997 1996 1997 1996
-----------------------------------------------------------------------
(in thousands)
Interest payments $431 $415 $9,276 $7,775
Income tax payments $3,025 $593 $3,409 $3,114
4. RECENT PRONOUNCEMENT
In February, 1997, the Financial Accounting Standards Board issued
Statement No. 128, Earnings Per Share (SFAS No. 128), which
establishes new standards for computing and presenting earnings per
share. The provisions of SFAS No. 128 are effective for earnings per
share calculations for periods ending after December 15, 1997. At that
time, the Company will be required to change the method currently used
to compute earnings per share. At September 30, 1997 and 1996, the
provisions of SFAS No. 128 would have had no impact on the Company's
reported earnings per share.
- 7 -
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following updates information as to the Company's financial condition
provided in the Company's Form 10-K for the year ended December 31, 1996, and
analyzes the changes in the results of operations between the three and nine
month periods ended September 30, 1997, and the comparable periods of 1996.
RESULTS OF OPERATIONS
The Company recorded a net loss for the three months ended September 30, 1997,
of $1.3 million, or $.05 per share, compared to net income of $.2 million, or
$.01 per share, for the same period in 1996. For the nine months ended September
30, 1997, net income was $11.1 million, or $.45 per share, compared to $12.3
million, or $.50 per share, for the same period in 1996. The decrease in
earnings for the three months ended September 30, 1997 was the result of higher
depreciation, depletion and amortization expense and higher interest costs. The
following tables compare operating revenues and operating income by business
segment for the three and nine month periods ended September 30, 1997 and 1996:
<TABLE>
<CAPTION>
Quarter Ended Nine Months Ended
September 30, September 30,
---------------------- -----------------------
1997 1996 1997 1996
-------- -------- -------- --------
(in thousands)
<S> <C> <C> <C> <C>
Revenues
Exploration and production $ 20,324 $ 18,328 $ 70,239 $ 62,145
Gas distribution 18,791 17,934 103,970 94,976
Energy services and other 20,779 9,446 56,315 19,369
Eliminations (11,250) (11,284) (41,717) (40,820)
-------- -------- -------- --------
$ 48,644 $ 34,424 $188,807 $135,670
======== ======== ======== ========
Operating Income
Exploration and production $ 4,942 $ 6,208 $ 22,044 $ 24,617
Gas distribution (2,021) (1,671) 10,173 7,536
Energy services and other 200 (277) 1,087 (302)
-------- -------- -------- --------
$ 3,121 $ 4,260 $ 33,304 $ 31,851
======== ======== ======== ========
</TABLE>
Revenues of the exploration and production segment were up 11% for the three
month period ended September 30, 1997, and were up 13% for the nine month period
ended September 30, 1997, both as compared to the same periods in 1996.
Operating income of this segment was down $1.3 million for the three months
ended September 30, 1997, and was down $2.6 million for the nine months ended
September 30, 1997, as compared to the same periods in 1996.
- 8 -
<PAGE>
Gas and oil production during the third quarter of 1997 was 8.7 billion cubic
feet (Bcf) equivalent, up from 8.4 Bcf equivalent for the same period in 1996.
For the nine months ended September 30, 1997, gas and oil production was 27.7
Bcf equivalent, up from 27.5 Bcf equivalent for the same period in 1996. Gas
production for the three month period ended September 30, 1997 was 7.6 Bcf,
compared to 7.9 Bcf for the same period in 1996. For the nine months ended
September 30, 1997, gas production was 24.2 Bcf, down from 26.1 Bcf for the same
period in 1996. The decreases in gas production were primarily the result of
lower sales from the Company's Arkansas properties which are affected by the
demands of the Company's utility distribution systems. Sales to the utility were
10.1 Bcf during the first nine months of 1997, down from 12.0 Bcf for the same
period in 1996. The decline was the result of weather which was 10% warmer than
in 1996. In 1996, the colder weather created higher demand by the Company's
utility distribution systems and that demand continued into the summer as the
utility injected increased volumes of gas into storage. Sales of gas production
to unaffiliated purchasers were 5.1 Bcf during the third quarter of 1997
compared to 5.4 Bcf during the third quarter of 1996, and were 14.1 Bcf for both
the first nine months of 1997 and 1996.
The Company's average sales price for its gas production was $2.25 per thousand
cubic feet (Mcf) for the third quarter of 1997, up from $2.09 per Mcf for the
same period in 1996. The average price was $2.45 per Mcf for the first nine
months of 1997, up from $2.20 per Mcf for the same period of 1996. The changes
in the average sales prices received primarily reflect fluctuations in spot
market prices for natural gas.
The Company's oil production increased to 576 thousand barrels (MBbls) for the
nine months ended September 30, 1997, up from 229 MBbls for the same period in
1996. The increase was due primarily to production from properties acquired
during the fourth quarter of 1996.
Operating revenues of the gas distribution segment increased 5% in the third
quarter of 1997 and 9% in the nine months ended September 30, 1997, both as
compared to the same periods in 1996. Operating income of this segment decreased
$.4 million for the third quarter of 1997 and increased $2.6 million for the
first nine months of 1997, both as compared to the same periods in 1996. The
decrease in third quarter operating income was primarily the result of rate
design changes implemented in the 1996 rate case for the Company's northwest
Arkansas distribution system. These rate design changes had the effect of
shifting some revenues from the summer months to the winter months when most of
the volumes are used by the utility's customers. The increase in year to date
operating income primarily reflects the rate increase implemented in late 1996,
partially offset by the effect of lower weather-related deliveries to sales and
end-use transportation customers and increased operating costs. Deliveries by
the Company's utility systems to sales and end-use transportation customers were
4.3 Bcf for the third quarter of 1997 and 23.0 Bcf for the nine months ended
September 30, 1997, compared to 4.4 Bcf and 24.6 Bcf, respectively, for the same
periods in 1996.
The Company has reached stipulated settlements with the Staffs of both the
Missouri and Arkansas Public Service Commissions on most of the issues in its
pending rate cases for its southeast Missouri and northeast Arkansas utility
systems. In Missouri, the stipulation is pending approval of the Commission and
would result in a base rate increase of $1.5 million.
- 9 -
<PAGE>
Additionally, the Company would receive an increase of $.9 million in costs
which are recovered through the purchased gas adjustment clause, bringing the
total effective increase the Company would receive to $2.4 million, compared to
an original request of $3.8 million. In Arkansas, the Company stipulated to a
base rate increase of $.5 million. The Commission staff has recommended the
recovery of an additional $.4 million of costs through the purchased gas
adjustment clause while the Company has asked the Commission to allow the
recovery of an additional $.7 million through the purchased gas adjustment
clause. The stipulation is pending approval by the Arkansas Commission, but in
total the Company expects to receive an increase between $.9 million and $1.2
million, compared to an original request of $1.6 million.
The Company's average rate for its utility sales increased during the first nine
months of 1997 to $5.39 per Mcf, up from $4.38 per Mcf for the same period in
1996. The increase reflected higher prices paid for purchases of natural gas,
which are passed through to customers under automatic adjustment clauses, and
the effects of the 1996 rate increase.
Operating income for the energy services segment was $.2 million on revenues of
$20.7 million for the third quarter of 1997, compared to a loss of $.3 million
on revenues of $9.4 million for the same period in 1996. For the nine months
ended September 30, 1997, operating income for this segment was $1.1 million on
revenues of $56.1 million, compared to a loss of $.3 million on revenues of
$19.2 million for the same period in 1996. The Company marketed 9.7 Bcf and 26.1
Bcf of gas in the third quarter and the first nine months of 1997, respectively,
compared to 4.5 Bcf and 8.6 Bcf for the same periods in 1996. The Company
increased its activities in this area in mid-1996 when it formed an energy
services group to better enable the Company to capture downstream opportunities
which arise through marketing and transportation activity.
Operating costs and expenses increased 51% in the third quarter of 1997 and
increased 50% for the first nine months of 1997, both as compared to the
comparable periods in 1996. The increases were primarily caused by higher
purchased gas costs of the Company's gas distribution segment, increased gas
purchases for volumes marketed by the energy services segment, and increased
operating expenses and depreciation, depletion and amortization expense
primarily related to the Company's exploration and production segment. Higher
operating costs of the exploration and production segment relate to producing
properties acquired in 1996. Most of those acquisitions were oil properties
which produce through secondary recovery methods. As a result, the operating
costs are higher than those associated with the Company's average gas producing
property. The increase in depreciation, depletion and amortization expense was
primarily due to an increase in the amortization rate per unit of production.
The proved reserves owned by the Company and the costs associated with adding
those reserves are both components of the amortization rate.
Interest expense, net of capitalization, for the nine months ended September 30,
1997, was up 30% compared to the same period in 1996, due to higher average
borrowings. Interest is capitalized in the exploration and production segment on
costs that are unevaluated and excluded from amortization.
The Company's share of the NOARK Pipeline System's (NOARK) pretax loss included
in other income was $1.2 million for the third quarter of 1997 and $3.2 million
for the nine months
- 10 -
<PAGE>
ended September 30, 1997, compared to $.9 million and $2.5 million,
respectively, for the same periods in 1996. The Company, through a subsidiary,
holds a 47.93% general partnership interest in NOARK and is the pipeline's
operator.
The changes in the provisions for current and deferred income taxes recorded in
the three and nine month periods ended September 30, 1997, as compared to the
same periods in 1996, resulted primarily from the level of taxable income or
loss and from the deduction of intangible drilling costs in the year incurred
for tax purposes, netted against the turnaround of intangible drilling costs
deducted for tax purposes in prior years. Intangible drilling costs are
capitalized and amortized over future years for financial reporting purposes
under the full cost method of accounting.
CHANGES IN FINANCIAL CONDITION
Changes in the Company's financial condition at September 30, 1997, as compared
to December 31, 1996, primarily reflect the seasonal nature of the gas
distribution segment of the Company's business.
Routine capital expenditures, cash dividends and scheduled debt retirements are
predominately funded through cash provided by operations. For the first nine
months of 1997 and 1996, net cash provided by operating activities was $64.7
million and $58.8 million, respectively, and provided 94% and 90%, respectively,
of these routine requirements. The increase in net cash provided by operating
activities during the first nine months of 1997, as compared to the same period
in 1996, was primarily due to the timing of both cash receipts and expenditures.
The Company expects its total debt at year-end to remain approximately level
with the September 30, 1997 balance as cash generated from operations is
expected to meet the requirements for routine capital expenditures, cash
dividends and scheduled debt retirements during the fourth quarter of 1997.
The Company's capital expenditures for the first nine months of 1997 were $64.8
million, down from $75.4 million for the same period in 1996. Capital
expenditures during the first nine months of 1996 included $14.1 million to
purchase oil and gas producing properties in south Texas. There have been no
significant acquisitions of oil and gas producing properties in the first nine
months of 1997.
The Company has access to $80.0 million of medium to long-term capital at
current market lending rates through two floating rate credit facilities. Of
this amount, $29.8 million was outstanding at September 30, 1997, all of which
was classified as long-term debt. During the first nine months of 1997, the
Company's revolving long-term debt decreased by $66.7 million. Revolving debt
was reduced by the proceeds from the issuance of $75.0 million of Medium- Term
Notes (discussed below), and increased by cash requirements for capital
expenditures and cash dividends in excess of cash flow generated from
operations.
In May, 1997, the Company issued $60.0 million of 7.625% Medium-Term Notes due
2027. The notes may be repaid prior to maturity on May 1, 2009, at the
noteholder's option. In
- 11 -
<PAGE>
September, 1997, the Company issued $15.0 million of 7.35% Medium-Term Notes due
2017. Subsequent to September 30, 1997, the Company issued an additional $25.0
million of 7.125% Medium-Term Notes, also due 2017. All of these notes were
issued under a supplement to the Company's $250.0 million shelf registration
statement filed with the Securities and Exchange Commission in February, 1997,
for the issuance of up to $125.0 million of Medium-Term Notes. The Company has
$25.0 million of remaining capacity under the shelf registration statement.
Long-term debt at both September 30, 1997 and December 31, 1996, accounted for
57% of the Company's capitalization.
Accounts receivable has declined since December 31, 1996, due primarily to
seasonally lower deliveries of the gas distribution segment. The decrease in
income taxes receivable resulted primarily from the receipt of federal income
tax refunds related to a 1996 tax net operating loss. Inventories have increased
since December 31, 1996 due to gas injected into storage facilities for use
during the upcoming heating season. Accounts payable has increased since
December 31, 1996 as the seasonal decrease related to gas purchases for the gas
distribution segment was more than offset by increased gas purchases for the
energy services segment and by the timing of expenditures. Other changes in
current assets and current liabilities between periods resulted primarily from
the timing of expenditures and receipts.
The Company had under-recovered $10.6 million of purchased gas costs at
September 30, 1997, which will be collected from its utility customers through
automatic cost of gas adjustment clauses included in its filed rate tariffs. At
December 31, 1996, the Company had net under- recovered purchased gas costs in
the amount of $3.0 million. These amounts are classified as current assets.
- 12 -
<PAGE>
PART II
OTHER INFORMATION
Items 1 - 4
- -----------
No developments required to be reported under Items 1 - 4 occurred during the
quarter ended September 30, 1997.
Item 5
- ------
As a result of its previously announced internal investigation, the Company,
through one of its subsidiaries, filed suit on October 31, 1997, in the United
States District Court for the Western District of Oklahoma against two former
employees and various corporations and individuals who participated in providing
land brokerage services to the Company in connection with its 3-D seismic
operations in southern Louisiana. The complaint filed by the Company seeks
compensatory and punitive damages against the defendants and alleges fraud,
breach of contract, breach of fiduciary duty, negligence, interference with
business relationships, and violations of the Racketeer Influenced and Corrupt
Organizations Act ("RICO").
Item 6(a)
- ---------
No exhibits are required to be filed for the quarter ended September 30, 1997.
Item 6(b)
- ---------
On August 27, 1997 the Company filed a current report on Form 8-K dated August
27, 1997, referencing its press release announcing the Company's plans to
commence civil litigation against certain former employees and independent
contractors (see Item 5 for a discussion of the suit filed on October 31, 1997).
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.
SOUTHWESTERN ENERGY COMPANY
---------------------------
Registrant
DATE: November 14, 1997 /s/ GREGORY D. KERLEY
----------------------- --------------------------------
Gregory D. Kerley
Vice President - Treasurer and Secretary,
and Chief Accounting Officer
- 13 -
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> SEP-30-1997
<CASH> 1,727
<SECURITIES> 0
<RECEIVABLES> 28,339
<ALLOWANCES> 0
<INVENTORY> 21,953
<CURRENT-ASSETS> 69,689
<PP&E> 951,096
<DEPRECIATION> (354,501)
<TOTAL-ASSETS> 687,289
<CURRENT-LIABILITIES> 49,014
<BONDS> 283,514
0
0
<COMMON> 2,774
<OTHER-SE> 211,948
<TOTAL-LIABILITY-AND-EQUITY> 687,289
<SALES> 184,583
<TOTAL-REVENUES> 188,807
<CGS> 0
<TOTAL-COSTS> 155,503
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 11,845
<INCOME-PRETAX> 18,018
<INCOME-TAX> 6,937
<INCOME-CONTINUING> 11,081
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 11,081
<EPS-PRIMARY> .45
<EPS-DILUTED> 0
</TABLE>
