UNITED STATES
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): March 30, 1999
HOWELL CORPORATION
(Exact name of registrant as specified in its charter)
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Delaware 1-8704 74-1223027
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
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1111 Fannin, Suite 1500, Houston, Texas 77002
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: (713)658-4000
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Item 5. Other Events.
On March 30, 1999, Howell Corporation ("Howell") issued the
press release filed herewith.
Item 7. Financial Statements and Exhibits.
(c) Exhibits.
The following materials are filed as exhibits to this
Current Report on Form 8-K.
Exhibit
Number Description
99.1 Press release of Howell Corporation dated
March 30, 1999.
<PAGE>
S I G N A T U R E
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.
HOWELL CORPORATION
Dated: April 1, 1999 By:
Robert T. Moffett
Vice President, General Counsel and
Secretary
<PAGE>
EXHIBIT INDEX
Exhibit
Number Description
99.1 Press release of Howell Corporation dated
March 30, 1999.
EXHIBIT NO. 99.1
Press Release
For Immediate Release Contact: John E. Brewster, Jr.
Vice President, Corporate
Development & Planning
(713) 658-4084
HOWELL RETIRES TERM LOAN
HOUSTON, TEXAS, MARCH 30, 1999 - HOWELL CORPORATION
(HWL:NYSE; HWLLP:NASDAQ) completed the previously announced sale
of the Grass Creek Unit in Hot Springs County, Wyoming, and the
Pitchfork Unit in Park County, Wyoming, to Marathon Oil Company
for a $12,375,000 purchase price. Marathon operates both
properties. The proceeds of the sale were used to pay off the
remaining balance of a term loan which was due on May 30, 1999.
Since mid-December, Howell has reduced its debt by approximately
$53 million, including the $30 million term loan which bore
interest at almost 11% (Libor plus 600 basis points). By paying
off the term loan early, Howell will achieve savings in interest
expense. Total net indebtedness has been reduced to
approximately $84 million today. Only fully conforming,
long-term debt now remains outstanding. The current interest
rate is approximately 7.5% (Libor plus 250 basis points).
The Grass Creek and Pitchfork fields produce approximately 1,500
net barrels of oil per day from over 280 wells producing in
multiple horizons. The crude oil is low gravity (18-24 degree),
sour crude which typically sells at a discount to West Texas
Intermediate crude oil.
Howells President, Richard K. Hebert commented, "When oil prices
dropped to historic low levels during the past twelve months, it
caused Howell to re-direct its focus to strengthening our balance
sheet, preserving cash flow, and meeting our short-term financial
obligations. The completion of the Grass Creek and Pitchfork
property sale allowed us to retire the remainder of our term loan
which represents a significant milestone for Howell. The Company
will continue to consider sales of other non-core assets in those
situations where it can realize attractive values as well as
continue to strengthen the balance sheet. In addition to asset
rationalization, Howell has revised its capital budget consistent
with current market conditions, and eliminated selected jobs,
where appropriate.
Despite the property sales completed during the last three
months, Howell's current daily production is approximately 7,100
barrels of oil, 450 barrels of NGLs, and 8.8 million cubic feet
of natural gas. We have retained the Company's key operated
assets in Wyoming, the Salt Creek and Elk Basin fields, which
were acquired from Amoco Production Company in December of 1997.
Together those fields represent approximately 69% of the
company's oil production and about 64% of its total proved
reserves. As prices improve, we feel that these properties
provide a quality core asset base around which to grow the
Company."
Howell Corporation, based in Houston, Texas, is an independent
energy company engaged in the acquisition, exploitation, and
exploration of producing oil and gas properties.
This press release includes forward-looking statements within the
meaning of Section 27 A of the Securities Exchange Act of 1934.
Although Howell believes that its expectations are based upon
reasonable assumptions, it can give no assurance that its goals
will be achieved. Important factors that could cause actual
results to differ materially from those in the forward looking
statements herein include the timing and extent of changes in
commodity prices for oil and gas, the need to develop and replace
reserves, uninsured risks, environmental risks, drilling and
operating risks, risks related to exploration and development,
the availability of capital resources, uncertainties about the
estimates of reserves, competition, and government regulation.
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