PENN VIRGINIA CORP
8-K, 2001-01-12
CRUDE PETROLEUM & NATURAL GAS
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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): December 29, 2000

Penn Virginia Corporation
(Exact name of registrant as specified in its charter)

Virginia
(Name or other jurisdiction of incorporation)

0-753
(Commission File Number)

23-1184320
(IRS Employer Identification No.)


One Radnor Corporate Center, Suite 200, 100 Matsonford Road, Radnor, PA 19087
(Address of principal executive offices) (zip code)

Registrant's telephone number, including area code (610) 687-8900

Item 2. Acquisition or Disposition of Assets.

On December 29, 2000, Registrant's indirectly wholly owned subsidiary, Penn Virginia Oil & Gas Corporation, sold natural gas properties located primarily in Kentucky and West Virginia to Eastern American Energy Corporation, a wholly owned subsidiary of Energy Corporation of America. The sale was effective as of October 1, 2000. The purchase price paid for the properties was a total of $59.4 million, subject to adjustments for production and expenses after October 1, 2000, preferential rights exercised by third parties and other customary adjustments. Of the $59.4 million paid, $58.6 million was paid in cash and the balance in assumption of certain payment obligations of Registrant.

The properties sold contained an estimated 70 billion cubic feet equivalent of proved reserves and, at the time of the sale, produced, net to Registrant, seven million cubic feet per day.

1

Item 7. Financial Statements and Exhibits.

(b) Pro Forma Financial Information. See "Index to Financial Statements" on page F-1.

(c) Exhibits.

Exhibit 10. Asset Purchase and Sale Agreement dated November 22, 2000, as amended by letter agreement dated December 29, 2000, between Penn Virginia Oil & Gas Corporation and Eastern American Energy Corporation (designated assignee of Energy Corporation of America) (Schedules deleted).

Exhibit 99. Press Release dated January 3, 2001.

SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: January 12, 2001

Penn Virginia Corporation

 

 Nancy M. Snyder

 

By: /s/ Nancy M. Snyder
Vice President










2

 

INDEX TO FINANCIAL STATEMENTS

 

Page

Pro Forma Consolidated Balance Sheet as of September 30, 2000 (Unaudited)

F-2

 

 

Pro Forma Consolidated Income Statement for the Year Ended December 31, 1999 (Unaudited)

F-3

 

 

Pro Forma consolidated Income Statement for the Nine Months Ended September 30, 2000 (Unaudited)

F-4

 

 

Notes to Unaudited Pro Forma Consolidated Financial Statements

F-5

 

Unaudited Pro Forma Consolidated Financial Statements of Penn Virginia Corporation


The unaudited pro forma consolidated financial information of Penn Virginia Corporation (the "Company" or "Penn Virginia") is based on the Company's historical financial statements, adjusted to give effect to (1) the divestiture of certain oil and gas properties located primarily in Kentucky and West Virginia (the "Divestiture") and (2) the reduction of long-term debt with the proceeds from the Divestiture. The pro forma consolidated balance sheet as of September 30, 2000 assumes that the Divestiture and the related reduction of long-term debt occurred as of September 30, 2000. The pro forma consolidated income statements for the year ended December 31, 1999 and the nine-months ended September 30, 2000 assume that the Divestiture and the related reduction of long-term debt occurred on January 1, 1999.

The unaudited pro forma consolidated financial statements included herein are not necessarily indicative of the results that might have occurred had the transactions taken place at the date specified and are not intended to be a projection of future results. In addition, future results may vary significantly from the results reflected in the accompanying unaudited pro forma consolidated financial statements because of normal production declines, changes in product prices, future acquisitions and divestitures, and other factors.

The following unaudited pro forma consolidated financial statements should be read in conjunction with the consolidated financial statements and the related notes of the Company.

F-1

 

 

Penn Virginia Corporation and Subsidiaries
Unaudited Pro Forma Consolidated Balance Sheet
September 30, 2000
(in thousands, except share data)


Assets

 

The Company

 

The Divestiture

 

 

Pro Forma Consolidated

 

Current Assets

$

11,082 

$

(2,409)

(a)

$

8,673 

 

 

 

 

 

 

 

 

Investments

 

47,984 

 

-

 

 

47,984 

Long-term notes receivable

 

2,798 

 

-

 

 

2,798 

 

Oil and gas properties, wells and equipment, using the successful efforts method of accounting

 



236,567 

 



(69,414)



(a)

 



167,153 

Other property and equipment

 

83,677 

 

-

 

 

83,677 

Accumulated depreciation and depletion

 


(84,857)

 


40,550 


(a)

 


(44,307)

Net property, plant and equipment

 

235,387

 

(28,864)

 

 

206,523 

 

 

 

 

 

 

 

 

Other assets

 

1,846 

 

(101) 

(a)

 

1,745 

 

Total assets

$

299,097 

$

(31,374)

 

$

267,723 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities

$

8,577 

$

3,047 

(a)

$

11,624 

 

 

 

 

 

 

 

 

Other liabilities

 

5,321 

 

-

 

 

5,321 

Deferred income taxes

 

23,758 

 

4,790 

(a)

 

28,548 

Long-term debt, net of current installments

 


108,300 

 


(54,681)


(b)

 


53,619 

 

 

 

 

 

 

 

 

Shareholders' equity

 

153,141 

 

15,470 

(d)

 

168,611 

 

 

 

 

 

 

 

 

Total liabilities and shareholders' equity


$


299,097 


$


(31,374)

 


$


267,723 

F-2

 

 

Penn Virginia Corporation and Subsidiaries
Unaudited Pro Forma Consolidated Income Statement
Year Ended December 31, 1999
(in thousands, except per share data)


 

The Company

 

The Divestiture

 

 

Pro Forma Consolidated

 

Revenue

 

 

 

 

 

 

 

Oil sales

$

463 

$

(424)

(a)

$

39

Natural gas sales

 

21,384 

 

(5,857)

(a)

 

15,527

Royalties - coal

 

17,624 

 

-

 

 

17,624

Timber

 

1,667 

 

-

 

 

1,667

Dividends

 

2,646 

 

-

 

 

2,646

Gain on sale of property

 

280 

 

-

 

 

280

Other income

 

3,071 

 

(487)

(a)

 

2,584

Total revenues

 

47,135 

 

(6,768)

 

 

40,367

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

Operating expenses

 

4,311 

 

(1,536)

(a)

 

2,775

Exploration and development

 

2,146 

 

(184)

(a)

 

1,962

Taxes other than income

 

2,795 

 

(500)

(a)

 

2,295

General and administrative

 

8,775 

 

-

 

 

8,775

Depreciation and depletion

 

8,393 

 

(1,635)

(a)

 

6,758

Total expenses

 

26,420 

 

(3,855)

 

 

22,565

 

 

 

 

 

 

 

 

Operating income, (loss)

 

20,715 

 

((2,913)

 

 

17,802

 

 

 

 

 

 

 

 

Interest expense

 

(3,298)

 

3,298 

(b)

 

-

Interest income and other

 

1,417 

 

-

 

 

1,417

Income before taxes

 

18,834 

 

385 

 

 

19,219

 

 

 

 

 

 

 

 

Income tax expense

 

4,330 

 

77 

(c)

 

4,407

 

 

 

 

 

 

 

 

Net income

$

14,504 

$

308 

 

$

14,812

 

 

 

 

 

 

 

 

Net income per share, basic

$

1.73

 

 

 

$

1.76

Net income per share, diluted

$

1.71

 

 

 

$

1.75

 

 

 

 

 

 

 

 

Weighted average shares outstanding, basic

 

8,406

 

 

 

 

8,406

Weighted average shares outstanding, diluted

 

8,480

 

 

 

 

8,480

F-3

 

Penn Virginia Corporation and Subsidiaries
Unaudited Pro Forma Consolidated Income Statement
Nine Months Ended September 30, 2000
(in thousands, except per share data)


 

The Company

 

The Divestiture

 

 

Pro Forma Consolidated

 

Revenue

 

 

 

 

 

 

 

Oil sales

$

615 

$

(507)

(a)

$

108 

Natural gas sales

 

30,495 

 

(6,999)

(a)

 

23,496 

Royalties - coal

 

16,815 

 

-

 

 

16,815 

Timber

 

1,812 

 

-

 

 

1,812 

Dividends

 

1,984 

 

-

 

 

1,984 

Gain on sale of property

 

899 

 

-

 

 

899 

Other income

 

3,596 

 

(265)

(a)

 

3,331 

Total revenues

 

56,216 

 

(7,771)

 

 

48,445 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

Operating expenses

 

3,614 

 

(1,129)

(a)

 

2,485 

Exploration and development

 

2,653 

 

(183)

(a)

 

2,470 

Taxes other than income

 

2,800 

 

(636)

(a)

 

2,164 

General and administrative

 

7,641 

 

-

 

 

7,641 

Depreciation and depletion

 

8,659 

 

(1,370)

(a)

 

7,289 

Total expenses

 

25,367 

 

(3,318)

 

 

22,049 

 

 

 

 

 

 

 

 

Operating income, (loss)

 

30,849 

 

(4,453)

 

 

26,396 

 

 

 

 

 

 

 

 

Interest expense

 

(5,643)

 

3,294 

(b)

 

(2,349)

Interest income and other

 

1,097 

 

-

 

 

1,097 

Income before taxes

 

26,303 

 

(1,159)

 

 

25,144 

 

 

 

 

 

 

 

 

Income tax expense

 

7,576 

 

(332)

(c)

 

7,244 

 

 

 

 

 

 

 

 

Net income

$

18,727 

$

(827)

 

$

17,900 

 

 

 

 

 

 

 

 

Net income per share, basic

$

2.28

 

 

 

$

2.18

Net income per share, diluted

$

2.25

 

 

 

$

2.15

 

 

 

 

 

 

 

 

Weighted average shares outstanding, basic

 

8,203

 

 

 

 

8,203

Weighted average shares outstanding, diluted

 

8,312

 

 

 

 

8,312

F-4

 

 

 

Penn Virginia Corporation

Notes to Unaudited Pro Forma Consolidated Financial Statements


(a)

Reflects the reduction to oil and gas properties and related worked capital, deferred taxes and revenues and expenses as a result of the Divestiture.

(b)

To reflect the reduction in long-term debt and related interest expense from the use proceeds from the Divestiture.

(c)

To adjust income tax expense to reflect the Divestiture and related reduction in long-term debt.

(d)

To adjust equity to reflect the Divestiture (including a realized gain on the Divestiture and the repayment of long-term debt.)








F-5

 



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