U.S. Securities and Exchange Commission
Washington, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
For the quarterly period ended March 31, 1996
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
Commission File Number 0-14731
HALLADOR PETROLEUM COMPANY
(Exact name of small business issuer as specified in its charter)
COLORADO 84-1014610
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
1660 Lincoln St., Suite 2700, Denver, Colorado 80264
(Address of principal executive offices)
303-839-5504 FAX 303-832-3013
(Issuer's telephone number)
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months, and (2)
has been subject to such filing requirements for the past 90 days. Yes [x].
No [ ].
As of May 10, 1996 70,982,723 shares of the issuer's common stock were
outstanding.
This report contains 7 pages. The only exhibit is the Financial Data
Schedule.
<PAGE>
PART I. FINANCIAL INFORMATION:
HALLADOR PETROLEUM COMPANY
Consolidated Balance Sheet
(in thousands)
<TABLE>
<CAPTION>
March 31, December 31,
1996 1995 *
------------ -------------
ASSETS
- ------
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 3,742 $ 3,459
Accounts receivable-
Oil and gas sales 429 419
Well operations 282 331
Insurance claim received in January 114
-------- -------
Total current assets 4,453 4,323
-------- -------
Oil and gas properties (full cost
accounting), at cost:
Evaluated properties 39,645 39,562
Less - accumulated depreciation,
depletion, amortization (32,259) (32,118)
-------- -------
7,386 7,444
-------- -------
Other assets 160 159
-------- -------
$ 11,999 $ 11,926
======== =======
</TABLE>
*Derived from the Form 10-KSB.
See accompanying notes.
2
<PAGE>
HALLADOR PETROLEUM COMPANY
Consolidated Balance Sheet
(in thousands)
<TABLE>
<CAPTION>
March 31, December 31,
1996 1995 *
------------ -------------
LIABILITIES AND STOCKHOLDERS' EQUITY
- ------------------------------------
<S> <C> <C>
Current liabilities:
Accounts payable and
accrued liabilities $ 210 $ 185
Oil and gas sales payable 104 39
Debt with recourse only to
the South Cuyama Field 611 670
-------- -------
Total current liabilities 925 894
-------- -------
Debt with recourse only to the
South Cuyama Field 6,084 6,203
-------- -------
Deferred Bonus Plan 136 127
-------- -------
Other 65 65
-------- -------
Stockholders' equity:
Common stock, $.01 par value;
100,000,000 shares authorized;
70,982,723 shares issued 710 710
Preferred stock, $.10 par value;
10,000,000 shares authorized;
no shares issued
Additional paid-in capital 17,428 17,428
Accumulated deficit (13,349) (13,501)
------- -------
4,789 4,637
------- ------
$ 11,999 $ 11,926
======= =======
</TABLE>
*Derived from the Form 10-KSB.
See accompanying notes.
3
<PAGE>
HALLADOR PETROLEUM COMPANY
Consolidated Statement of Operations
(in thousands)
<TABLE>
<CAPTION>
Three months ended
March 31,
------------------
1996 1995
-------- --------
<S> <C> <C>
Revenue:
Oil $ 970 $ 884
Gas 80 150
NGLs 128 140
Interest 53 8
Other 35
------- -------
1,266 1,182
------- -------
Costs and expenses:
Lease operating 727 721
Depreciation, depletion and
amortization 141 156
General and administrative 89 88
Interest 157 237
------- -------
1,114 1,202
------- -------
Net income (loss) $ 152 $ (20)
======= =======
Per share amounts are not meaningful.
</TABLE>
See accompanying notes.
4
<PAGE>
HALLADOR PETROLEUM COMPANY
Consolidated Statement of Cash Flows
(in thousands)
<TABLE>
<CAPTION>
Three months ended
March 31,
------------------
1996 1995
-------- --------
<S> <C> <C>
Cash flows from operating activities $ 544 $ 369
------- -------
Cash flows used in investing activities:
Additions to oil and gas properties (30) (33)
Unproved properties (53)
------- -------
Net cash (used in) investing activities (83) (33)
------- -------
Cash flows used in financing activities:
Repayments of debt (178) (137)
------- -------
Net increase in cash and cash equivalents 283 199
Cash and cash equivalents, beginning of period 3,459 438
------- -------
Cash and cash equivalents, end of period $ 3,742 $ 637
======= =======
</TABLE>
NOTES TO FINANCIAL STATEMENTS
1. The interim financial data is unaudited; however, in the opinion
of management, the interim data includes all adjustments,
consisting only of normal recurring adjustments necessary for a
fair statement of the results for the interim periods. The
financial statements included herein have been prepared by the
Company pursuant to the rules and regulations of the Securities
and Exchange Commission. Certain information and footnote
disclosures normally included in financial statements prepared
in accordance with generally accepted accounting principals have
been condensed or omitted pursuant to such rules and regulations,
although the Company believes that the disclosures included
herein are adequate to make the information presented not
misleading.
The organization and business of the Company, accounting policies
followed by the Company and other information are contained in
the notes to the Company's financial statements filed as part of
the Company's December 31, 1995 Form 10-KSB. This quarterly
report should be read in conjunction with such annual report.
5
<PAGE>
HALLADOR PETROLEUM COMPANY
MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
RESULTS OF OPERATIONS
Properties Sold in July
-----------------------
In July 1995, the Company sold substantially all its Texas properties
for $354,000. LOE for these properties in the first quarter of 1995 was
$30,000. Oil and gas revenue for these properties in the first quarter of
1995 were $26,000 and $29,000, respectively. Oil and gas sales volume for
these properties for the period were 1,589 barrels and 17,757 MCF.
Average product prices and volumes are set forth in the following table:
1996 1995
-------------------------- -------------------------
Sales Volume Average Price Sales Volume Average Price
------------ ------------- ------------ -------------
Oil - barrels 55,696 $17.41 56,505 $15.64
Gas - MCF 52,945 1.51 102,271 1.46
NGLs- barrels 9,549 13.35 11,270 12.43
Revenue increased due to higher interest income and nonrecurring
refunds. Higher prices more than offset the decline in gas sales resulting
from lower production levels and property sales.
Interest expense decreased due to the conversion of the convertible debt
in November 1995.
OUTLOOK FOR REMAINDER OF 1996
Hedging
-------
The Company continues to evaluate hedging strategies for its oil
production but has never entered into such actions and at this time does not
expect to. As of May 9, 1996, the Company is receiving $19.00 per barrel for
its California production as compared to an average price of $15.62 during
the first quarter of 1995.
Liquidity and Capital Resources
-------------------------------
Cash from operations is expected to enable the Company to meet its
obligations as they become due through the next 12 months.
Future Results of Operations
----------------------------
Assuming stable production and prices, a profit is expected for the
remaining nine months.
6
<PAGE>
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
(27) Financial Data Schedule.
(b) No reports on Form 8-K were filed by the Company during the quarter
ended March 31, 1996.
SIGNATURE
In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
HALLADOR PETROLEUM COMPANY
Date: May 10, 1996 By: /s/ VICTOR P. STABIO
---------------------
Victor P. Stabio
Chief Executive Officer and
Chief Financial Officer
Signing on behalf of the
registrant and as principal
financial and accounting officer.
7
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
consolidated balance sheets and consolidated statement of operations found
on
pages 2 and 4 of the Company's Form 10-QSB for the year-to-date, and is
qualified in its entirety by reference to such financial statements.
</LEGEND>
<CIK> 0000788965
<NAME> HALLADOR PETROLEUM COMPANY
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> MAR-31-1996
<CASH> 3,742
<SECURITIES> 0
<RECEIVABLES> 711
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 4,453
<PP&E> 39,645
<DEPRECIATION> 32,259
<TOTAL-ASSETS> 11,999
<CURRENT-LIABILITIES> 925
<BONDS> 6,084
0
0
<COMMON> 710
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 11,999
<SALES> 0
<TOTAL-REVENUES> 1,266
<CGS> 0
<TOTAL-COSTS> 1,114
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 157
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 152
<EPS-PRIMARY> 0<F1>
<EPS-DILUTED> 0<F1>
<FN>
<F1>Per share amounts are not meaningful.
</FN>
</TABLE>
