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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 June 30, 1995
(Date of earliest event reported)
__________________________
HAWKINS ENERGY CORPORATION
(Exact Name of registrant as specified in its charter)
OKLAHOMA
(State or other jurisdiction of incorporation)
0-18205 73-1345732
(Commission File Number) (IRS Employer Identification No.)
400 S. Boston, Suite 800, Tulsa, Oklahoma 74103
(Address of Principal Executive Offices) (Zip Code)
(918) 587-5815
(Registrant's telephone number, including area code)
Not applicable
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(Former name or former address, if changed since last report
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ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS.
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On December 30, 1994, the Company sold interests in 57 wells
("Arkansas Properties") located in the Arkoma Basin of northwest Arkansas
resulting in a pre-tax gain of $1,880,000. The natural gas reserves
attributable to the properties sold represented approximately one-third of the
total equivalent natural gas reserves owned by the Company. The proceeds from
the sale were placed in trust to purchase oil and gas properties in 1995
resulting in a "like kind exchange" for tax purposes, with the gain on sale
being deferred for tax purposes.
The Company closed a series of production acquisitions during the
second quarter of 1995 involving interests in twelve gas and fourteen oil wells
in Arkansas, Oklahoma and Texas ("Acquired Properties"). The Company estimates
the Acquirred Properties contain proved reserves of approximately 330,000
barrels of oil and 2,889,000 Mcf of gas which were added to the Company's year-
end 1994 proved reserve base of 18,000 barrels of oil and 2,501,000 Mcf of gas.
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TABLE OF CONTENTS
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Item 7. Financial Statements and Exhibits
(b) Pro Forma Financial Information
Pro Forma Consolidated Statement of Operations - Unaudited
For the Six Months Ended June 30, 1995.......................... P-1
Pro Forma Consolidated Statement of Operations - Unaudited
For the Year Ended December 31, 1994............................ P-2
Notes to Unaudited Pro Forma Consolidated Statement of Operations P-3
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HAWKINS ENERGY CORPORATION
_____________________________________________
PRO FORMA CONSOLIDATED
FINANCIAL STATEMENTS - UNAUDITED
FOR THE SIX MONTHS ENDED JUNE 30, 1995
AND THE YEAR ENDED DECEMBER 31, 1994
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HAWKINS ENERGY CORPORATION
7(b) PRO FORMA FINANCIAL INFORMATION
UNAUDITED PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
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SIX MONTHS ENDED JUNE 30, 1995
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ACQUIRED
HAWKINS PROPERTIES PRO FORMA
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(In thousands, except for per share amounts)
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Revenues:
Oil and gas sales..................... $ 728 $ 173 (a) $ 901
Compressor sales...................... 1,139 -- 1,139
Compressor rentals and service fees... 3,555 -- 3,555
Interest and other income............. 71 (38) (b) 33
Gain (loss) on sale of assets......... 7 -- 7
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Total revenues....................... 5,500 135 5,635
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Expenses:
Operating costs-oil and gas........... 271 39 (a) 310
Cost of compressor sales.............. 930 -- 930
Operating costs-compressors........... 1,770 -- 1,770
Depreciation, depletion and amortization 1,162 46 (c) 1,208
General and administrative............ 940 -- 940
Interest.............................. 522 -- 522
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Total expenses....................... 5,595 85 5,680
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Income (loss) before income taxes....... (95) 50 (45)
Income tax benefit (expense)............ 33 (25) (d) 8
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Net income (loss)....................... $ (62) $ 25 $ (37)
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Income (loss) per common share.......... $ -- $ --
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Weighted average number of
shares outstanding...................... 12,907 12,907
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The accompanying notes are an integral part of the
pro forma consolidated financial statements.
P-1
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HAWKINS ENERGY CORPORATION
7(B) PRO FORMA FINANCIAL INFORMATION
UNAUDITED PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
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YEAR ENDED DECEMBER 31, 1994
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ARKANSAS ACQUIRED
HAWKINS PROPERTIES PROPERTIES PRO FORMA
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(In thousands, except for per share amounts)
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Revenues:
Oil and gas sales..................... $ 1,850 $ (650) (a) $ 604 (a) $ 1,804
Compressor sales...................... 2,209 -- -- 2,209
Compressor rentals and service fees... 7,706 -- -- 7,706
Interest and other income............. 79 -- -- 79
Gain on sale of oil and gas properties 1,880 -- -- 1,880
Gain (loss) on sale of assets......... 31 -- -- 31
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Total revenues....................... 13,755 (650) 604 13,709
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Expenses:
Operating costs-oil and gas........... 636 (197) (a) 179 (a) 618
Cost of compressor sales.............. 1,687 -- -- 1,687
Operating costs-compressors........... 3,687 -- -- 3,687
Depreciation, depletion and amortization 2,474 (174) (c) 148 (c) 2,448
General and administrative............ 2,590 -- -- 2,590
Interest.............................. 842 -- -- 842
Other................................. 91 -- -- 91
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Total expenses....................... 12,007 (371) 327 11,963
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Income before income taxes.............. 1,748 (279) 277 1,746
Income tax expense...................... (699) 106 (d) (90) (d) (683)
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Net income.............................. $ 1,049 $ (173) $ 187 $ 1,063
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Income per common share................. $ .08 $ .08
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Weighted average number of
shares outstanding..................... 12,826 12,826
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The accompanying notes are an integral part of the
pro forma consolidated financial statements.
P-2
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HAWKINS ENERGY CORPORATION
Notes to Unaudited Pro Forma Consolidated Statements of Operations
The pro forma statements of operations, which have been prepared
utilizing the historical statements of operations of Hawkins Energy Corporation
and the Acquired Properties for the year ended December 31, 1994 and the six
months ended June 30, 1995, are based upon the assumption that the acquisition
of the Acquired Properties by the Company and the sale of the Arkansas
Properties occurred as of January 1, 1994 and include the following pro forma
adjustments:
a) Adjustment to reflect an increase (decrease) in oil and gas sales
and related expenses due to the property sale and acquisition, as
the case may be.
b) Adjustment to eliminate interest earned on funds placed in escrow
from the sale of the Arkansas properties on December 30, 1994.
c) Adjustment to depreciation, depletion and amortization of the
full cost pool due to the change in the recorded value of the
full cost pool and related oil and gas reserves.
d) Adjustment of income tax benefit (expense) recognized to reflect
benefit (expense) associated with consolidated results of
operations.
The pro forma financial statements should be read in conjunction with
the financial statements and notes of the Company for the year ended December
31, 1994 and the six months ended June 30, 1995. These pro forma statements may
not be indicative of the results that actually would have occurred if the
acquisition had been in effect on the date indicated or which may be realized in
the future.
P-3
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SIGNATURES
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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.
HAWKINS ENERGY CORPORATION
Dated: August 21, 1995 By: /s/Thomas F. Ostrye
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Thomas F. Ostrye
President
Dated: August 21, 1995 By: /s/Clifford S. Lewis
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Clifford S. Lewis
Vice President, Secretary
and Treasurer
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