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
November 18, 1999
(Date of earliest event reported)
BURLINGTON RESOURCES INC.
(Exact name of registrant as specified in its charter)
Delaware 1-9971 91-1413284
(State or other (Commission (IRS Employer
Jurisdiction of File Number) Identification
Incorporation) Number)
5051 Westheimer, Suite 1400, Houston, Texas 77056
(Address of principal executive offices, zip code)
Registrant's telephone number including area code:
(713) 624-9500
<PAGE>
Item 2. ACQUISITION OF ASSETS
On November 18, 1999, Burlington Resources Inc. (BR) and Poco Petroleums
Ltd. (Poco) announced the completion of the acquisition of Poco by Burlington.
Each company's shareholders approved the transaction at separate meetings today
and the transaction closed following approval of the plan of arrangement by the
Court of Queen's Bench of Alberta.
Under the terms of the transaction, Poco shareholders will receive 0.25 BR
common equivalent shares (exchangeable shares) for each Poco share held. The
exchangeable shares are Canadian securities, which will begin trading on the
Toronto Stock Exchange on Tuesday, November 23, 1999 under the symbol BRX. These
shares have the same voting rights, dividend entitlements and other attributes
as BR shares of common stock and are exchangeable, at each shareholder's option,
for BR common shares. BR is issuing approximately 40 million common equivalent
shares to the Poco shareholders.
On November 22, 1999, BR released detailed pro forma financial information
for the nine months ended September 30, 1999 to reflect its acquisition of Poco
Petroleums Ltd.
Copies of both Press Releases have been included as exhibits to this
report.
Item 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
Exhibit 99.1 - Press Release of BR dated November 18, 1999
Exhibit 99.2 - Press Release of BR dated November 22, 1999
FORWARD-LOOKING STATEMENTS
This report (including the exhibits) contains projections and other
forward-looking statements within the meaning of Section 21E of the Securities
Exchange Act of 1934. These projections and statements reflect BR's current
views with respect to future events and financial performance. No assurances can
be given, however, that these events will occur or that these projections will
be achieved and actual results could differ materially from those projected as a
result of certain factors. A discussion of these factors is included in the
companies' 1998 Annual Reports on Form 10-K.
2
<PAGE>
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.
BURLINGTON RESOURCES INC.
(Registrant)
By /s/Philip W. Cook
Philip W. Cook
Vice President, Controller and
Chief Accounting Officer
Date: December 2, 1999
3
<PAGE>
EXHIBIT INDEX
Exhibit
Number Exhibit Page
99.1 Press Release dated November 18, 1999 5
99.2 Press Release dated November 22, 1999 6
4
<PAGE>
EXHIBIT 99.1
BR ANNOUNCES THE COMPLETION OF ITS ACQUISITION OF POCO PETROLEUMS LTD.
Houston, Texas, November 18, 1999 - Burlington Resources Inc. (NYSE: BR)
and Poco Petroleums Ltd. (TSE & ME: POC) today announced the completion of the
acquisition of Poco by Burlington. Each company's shareholders approved the
transaction at separate meetings today and the transaction closed following
approval of the plan of arrangement by the Court of Queen's Bench of Alberta.
Under the terms of the transaction, Poco shareholders will receive 0.25 BR
common equivalent shares (exchangeable shares) for each Poco share held. The
exchangeable shares are Canadian securities, which will begin trading on the
Toronto Stock Exchange on Tuesday, November 23, 1999 under the symbol BRX. These
shares have the same voting rights, dividend entitlements and other attributes
as BR shares of common stock and are exchangeable, at each shareholder's option,
for BR common shares. BR is issuing approximately 40 million common equivalent
shares to the Poco shareholders.
Poco, headquartered in Calgary, will operate as the Canadian division of BR
North America. Terry McCoy, Poco's Vice President of Exploration, has been named
a Vice President of Burlington Resources Oil & Gas Co. and will head the
Canadian business unit.
Bobby Shackouls, Chairman, President and Chief Executive Officer of BR
stated, "the combination of these two companies creates the premier independent
North American natural gas company with almost 10 trillion cubic feet equivalent
of reserves. The financial strength of BR, combined with the extremely high
quality exploration inventory that Poco has accumulated, should provide
significant growth and value creation opportunities for our shareholders."
FORWARD-LOOKING STATEMENTS
This press release may contain projections and other forward-looking
statements within the meaning of Section 21E of the Securities Exchange Act of
1934, as amended. Any such projections or statements reflect the Company's
current views with respect to future events and financial performance. No
assurances can be given, however, that these events will occur or that such
projections will be achieved and actual results could differ materially from
those projected. A discussion of important factors that could cause actual
results to differ materially from those projected is included in the Company's
periodic reports filed with the Securities and Exchange Commission.
5
<PAGE>
EXHIBIT 99.2
BR RELEASES DETAILED PRO FORMA FINANCIAL INFORMATION FOR POCO ACQUISITION
Houston, Texas, November 22, 1999 - Burlington Resources Inc. (NYSE: BR)
today released detailed pro forma financial information for the nine months
ended September 30, 1999 to reflect its acquisition of Poco Petroleums Ltd.
Financial statements are attached.
FORWARD-LOOKING STATEMENTS
This press release may contain projections and other forward-looking
statements within the meaning of Section 21E of the Securities Exchange Act of
1934, as amended. Any such projections or statements reflect the Company's
current views with respect to future events and financial performance. No
assurances can be given, however, that these events will occur or that such
projections will be achieved and actual results could differ materially from
those projected. A discussion of important factors that could cause actual
results to differ materially from those projected is included in the Company's
periodic reports filed with the Securities and Exchange Commission.
6
<PAGE>
Burlington Resources Inc.
Pro Forma Combined
Statement of Income
Nine Months Ended
September 30, 1999
<TABLE>
<CAPTION>
BR Pro Forma
BR Canada Combined
---------- ---------- --------------
(In Millions)
<S> <C> <C> <C>
Operating Revenues
Gas............................................$ 840 $ 201 $ 1,041
Oil............................................ 280 87 367
Processing and Other........................... 42 1 43
---------- ---------- -----------
Operating Revenues.................... 1,162 289 1,451
---------- ---------- -----------
Operating Expenses
Production Taxes............................... 71 3 74
Production and Processing...................... 275 82 357
Depreciation, Depletion and Amortization....... 387 83 470
Exploration Costs.............................. 128 21 149
Administrative................................. 102 6 108
---------- ---------- -----------
Operating Expenses.................... 963 195 1,158
---------- ---------- -----------
Operating Income..................................... 199 94 293
Interest Expense..................................... 123 40 163
Other Expense (Income) - Net......................... 1 (12) (11)
---------- ---------- -----------
Income Before Income Taxes........................... 75 66 141
Income Tax Expense................................... 28 28 56
---------- ---------- -----------
Net Income...........................................$ 47 $ 38 $ 85
========== ========== ===========
Basic Earning per Common Share.......................$ .27 $ .25 $ .39
========== ========== ===========
Diluted Earning per Common Share.....................$ .26 $ .25 $ .39
========== ========== ===========
Basic Common Shares.................................. 177 153 216
========== ========== ===========
Diluted Common Shares................................ 178 154 217
========== ========== ===========
</TABLE>
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<PAGE>
Burlington Resources Inc.
Pro Forma Combined
Balance Sheet
September 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
BR Pro Forma
BR Canada Combined
-------------- --------------- ---------------
(In Millions)
<S> <C> <C> <C>
ASSETS
Current Assets...................................................$ 467 $ 92 $ 559
-------------- --------------- ---------------
Oil & Gas Properties (Successful Efforts Method)................. 9,679 2,842 12,521
Other Properties................................................. 857 55 912
-------------- --------------- ---------------
10,536 2,897 13,433
Accumulated Depreciation, Depletion and Amortization 5,216 1,718 6,934
-------------- --------------- ---------------
Properties - Net............................................. 5,320 1,179 6,499
-------------- --------------- ---------------
Other Assets..................................................... 119 40 159
-------------- --------------- ---------------
Total Assets.................................................$ 5,906 $ 1,311 $ 7,217
============== =============== ===============
LIABILITIES
Current Liabilities..............................................$ 448 $ 85 $ 533
-------------- --------------- ---------------
Long-term Debt................................................... 1,979 776 2,755
-------------- --------------- ---------------
Deferred Income Taxes............................................ 220 - 220
-------------- --------------- ---------------
Deferred Revenue................................................. 29 - 29
-------------- --------------- ---------------
Other Liabilities and Deferred Credits........................... 222 12 234
-------------- --------------- ---------------
Commitments and Contingent Liabilities
STOCKHOLDERS' EQUITY
Common Stock..................................................... 2 - 2
Paid-in Capital.................................................. 2,992 974 3,966
Retained Earnings (Deficit)...................................... 1,013 (476) 537
-------------- --------------- ---------------
4,007 498 4,505
Cost of Treasury Stock........................................... (999) - (999)
Foreign Currency Translation..................................... - (60) (60)
-------------- --------------- ---------------
Stockholders' Equity............................................. 3,008 438 3,446
-------------- --------------- ---------------
Total Liabilities and Stockholders' Equity...................$ 5,906 $ 1,311 $ 7,217
============== =============== ===============
</TABLE>
8
<PAGE>
Burlington Resources Inc.
Pro Forma Combined
Statement of Cash Flows
Nine Months Ended
September 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
BR Pro Forma
BR Canada Combined
------------ ----------- ------------
(In Millions)
<S> <C> <C> <C>
Cash Flows From Operating Activities
Net Income..............................................................$ 47 $ 38 $ 85
Adjustments to Reconcile Net Income to Net Cash
Provided By Operating Activities
Depreciation, Depletion and Amortization............................. 399 83 482
Deferred Income Taxes................................................ 21 23 44
Exploration Costs.................................................... 128 21 149
Special Items and Other ............................................. (1) - (1)
------------ ----------- ------------
Discretionary Cash Flow..................................... 594 165 759
Working Capital and Other Changes....................................... (10) 10 -
------------ ----------- ------------
Net Cash Provided By Operating Activities................... 584 175 759
------------ ----------- ------------
Cash Flows From Investing Activities
Additions to Properties................................................. (470) (223) (693)
Proceeds from Sales and Other........................................... (81) 32 (49)
------------ ----------- ------------
Net Cash Used In Investing Activities....................... (551) (191) (742)
------------ ----------- ------------
Cash Flows From Financing Activities
Proceeds from Long-term Debt - Net...................................... 41 10 51
Dividends Paid.......................................................... (73) - (73)
Common Stock Purchases.................................................. (9) - (9)
Other................................................................... 8 8 16
------------ ----------- ------------
Net Cash Provided By (Used In) Financing Activities......... (33) 18 (15)
------------ ----------- ------------
Effect of Exchange Rate Changes on Cash and Cash Equivalents............... - (2) (2)
Increase (Decrease) in Cash and Cash Equivalents........................... - - -
Cash and Cash Equivalents
Beginning of Period..................................................... - - -
------------ ----------- ------------
End of Period...........................................................$ - $ - $ -
============ =========== ============
</TABLE>
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