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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K/A
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) July 7, 1999
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(May 10, 1999)
WESTERN GAS RESOURCES, INC.
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(Exact name of registrant as specified in its charter)
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<CAPTION>
<S> <C> <C>
Delaware 1-10389 84-1127613
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(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation) File Number) Identification No.)
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12200 N. Pecos Street Denver, Colorado 80234-3439
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(Address of principal executive offices) (Zip Code)
(303) 452-5603
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(Registrant's telephone number, including area code)
No Changes
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(Former name or former address, if changed since last report).
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ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
The company filed a Form 8-K on May 10, 1999 regarding the sale of its wholly
owned subsidiary, Western Gas Resources Storage, Inc. At the time of the Form 8-
K filing, it was impractical to provide financial statements of the business
disposed of and pro forma financial information. This amendment to the May 10,
1999 Form 8-K sets forth the required financial information. Historical
financial statements are not required for these business dispositions.
(a) Pro Forma Financial Information
(b) Exhibits
The Exhibits to this report are listed in the Exhibit Index set forth elsewhere
herein.
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SIGNATURES
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.
WESTERN GAS RESOURCES, INC.
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(Registrant)
Date: July 7, 1999 By: /s/ William J. Krysiak
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William J. Krysiak
Vice President - Finance
(Principal Financial and Accounting Officer)
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WESTERN GAS RESOURCES, INC.
EXHIBIT INDEX
EXHIBIT
NUMBER DESCRIPTION OF EXHIBIT
- ------ ----------------------
99.1 Pro Forma Financial Information for the Quarter Ended March 31,
1999 and the Year Ended December 31, 1998
<PAGE>
EXHIBIT 99.1
INDEX TO FINANCIAL STATEMENTS
Western Gas Resources, Inc. Pro Forma Financial Statements giving effect to the
disposition of Western Gas Resources Storage, Inc., the Giddings Gathering
system and the MiVida Treating Plant and Gathering System and the private
offering of $155.0 million of senior subordinated notes.
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<CAPTION>
<S> <C>
Unaudited Pro Forma Consolidated Balance Sheet as of March 31, 1999............. F-1
Unaudited Pro Forma Consolidated Statement of Operations for the quarter ended
March 31, 1999............................................................... F-2
Unaudited Pro Forma Consolidated Statement of Operations for the fiscal year
ended December 31, 1998...................................................... F-3
Notes to Unaudited Pro Forma Consolidated Financial Statements.................. F-4
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<PAGE>
UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS
The accompanying pro forma consolidated balance sheet as of March 31, 1999
and the pro forma consolidated statements of operations for the quarter ended
March 31, 1999 and the year ended December 31, 1998 give effect to the April
1999 sales of Western Gas Resources Storage, Inc. ("the Katy facility") and a
portion of the associated natural gas inventory for gross proceeds of $111.7
million and the Giddings facility for gross proceeds of $36.0 million. In
addition, the June 1999 sale of the MiVida treating facility for gross proceeds
of $12 million and proceeds received from the June 1999 offering of $155.0
million of senior subordinated notes are included in the pro forma financial
statements. The additional transactions described above are shown in the pro
forma financial statements in order to present fairly the pro forma position of
Western Gas Resources, Inc.
The pro forma consolidated financial statements comprise historical
financial data, which have been retroactively adjusted to reflect the effect of
the above transactions on our historical consolidated financial statements. The
historical information assumes that the transactions for which pro forma effects
are shown were completed March 31, 1999 for the pro forma consolidated balance
sheet and January 1, 1999 and 1998 for the pro forma consolidated statements of
operations. Such pro forma information should be read in conjunction with the
related historical financial information and is not indicative of the results
that would actually have occurred had the transactions been in effect on the
dates or for the periods indicated or which may occur in the future.
<PAGE>
Pro Forma Consolidated Balance Sheet
(Unaudited)
As of March 31, 1999
(Dollars in Thousands)
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<CAPTION>
Debt Pro
Historical Giddings Katy MiVida Pro Offering Forma,
Company Adjustment(1) Adjustment(2) Adjustment(3) Forma Adjustment(4) As Adjusted
---------- ------------- ------------- ------------- -------- ------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Assets
Current Assets:
Cash and cash equivalents......... $ 12,697 $ - $ - $ - $ 12,697 $ - $ 12,697
Trade accounts receivable, net.... 185,169 - - - 185,169 - 185,169
Product Inventory................. 22,114 - (11,677) - 10,437 - 10,437
Parts Inventory................... 9,913 - - - 9,913 - 9,913
Other............................. 2,239 - - - 2,239 - 2,239
---------- ------------- ------------ ------------- -------- ------------- ----------
Total current assets 232,132 - (11,677) - 220,455 - 220,455
Property and Equipment:
Gas Gathering, processing,
storage and transmission......... 966,065 (63,382) (135,074) (14,016) 753,593 - 753,593
Oil and gas properties and
equipment........................ 114,488 - - - 114,488 - 114,488
Construction in Progress.......... 89,012 - - - 89,012 - 89,012
---------- ------------- ------------ ------------- -------- ------------- ----------
1,169,565 (63,382) (135,074) (14,016) 957,093 - 957,093
Accumulated depreciation,
depletion and amortization....... (317,388) 21,506 17,885 3,081 (274,916) - (274,916)
---------- ------------- ------------ ------------- -------- ------------- ----------
Total property and
equipment, net................... 852,177 (41,876) (117,189) (10,935) 682,177 - 682,177
Other Assets:
Gas purchase contracts............ 40,710 - - - 40,710 - 40,710
Other............................. 37,654 - - - 37,654 5,051 42,705
---------- ------------- ------------ ------------- -------- ------------- ----------
Total other assets 78,364 - - - 78,364 5,051 83,415
Total assets $1,162,673 $ (41,876) $ (128,866) $ (10,935) $980,996 $ 5,051 $ 986,047
========== ============= ============ ============= ======== ============= ==========
Liabilities and Stockholders'
Equity
Current Liabilities:
Accounts payable.................. $ 180,850 $ 654 $ 3,504 $ 595 $185,603 $ - $ 185,603
Trade accounts receivable, net.... 25,978 - - - 25,978 (540) 25,438
Other............................. 4,217 - - - ,217 - 4,217
---------- ------------- ------------ ------------- -------- ------------- ----------
Total current liabilities......... 211,045 654 3,504 595 215,798 (540) 215,258
Long-term debt (senior)........... 526,609 (36,000) (111,677) (12,000) 366,932 (148,449) 218,483
Long-term debt (subordinated)..... - - 155,000 155,000
Deferred income taxes payable..... 46,648 (2,787) (9,744) (208) 33,909 - 33,909
---------- ------------- ------------ ------------- -------- ------------- ----------
Total liabilities 784,302 (38,133) (117,917) (11,613) 616,639 6,011 622,650
Stockholders' Equity.............. 378,371 (3,743) (10,949) 678 364,357 (960) 363,397
---------- ------------- ------------ ------------- -------- ------------- ----------
Total liabilities and
Stockholders' equity $1,162,673 $ (41,876) $ (128,866) $ (10,935) $980,996 $ 5,051 $ 986,047
========== ============= ============ ============= ======== ============= ==========
</TABLE>
F-1
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Pro Forma Consolidated Statement of Operations
(Unaudited)
For the quarter ended March 31, 1999
(Dollars in Thousands)
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<CAPTION>
Debt Pro
Historical Giddings Katy MiVida Pro Offering Forma,
Company Adjustment(1) Adjustment(2) Adjustment(3) Forma Adjustment(4) As Adjusted
---------- ------------- ------------- ------------- -------- ------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Revenues:
Sale of gas................. $ 350,841 $ (6,762) $ - $ (1,775) $342,304 $ - $ 342,304
Sale of natural gas liquids. 63,648 (1,394) - (9) 62,245 - 62,245
Processing, transportation
and storage revenue........ 11,073 (201) (4,008) (339) 6,525 - 6,525
Other, net.................. 3,943 - - - 3,943 - 3,943
---------- ------------- ------------- ------------- -------- ------------- ------------
Total revenues.............. 429,505 (8,357) (4,008) (2,123) 415,017 - 415,017
Costs and Expenses:
Product purchases........... 381,365 (7,489) 67 (1,594) 372,349 - 372,349
Plant operating expense..... 19,465 (797) (1,487) (344) 16,837 - 16,837
Oil and gas exploration and
production costs........... 1,858 - 44 - 1,902 - 1,902
Depreciation, depletion and
amortization............... 13,558 (829) (856) (195) 11,678 - 11,678
Selling and administrative
expense.................... 7,815 - - - 7,815 - 7,815
Interest expense............ 8,743 (558) (1,731) (186) 6,268 1,440 7,708
---------- ------------- ------------- ------------- -------- ------------- ------------
Total costs and expenses.... 432,804 (9,673) (3,963) (2,319) 416,849 1,440 418,289
Income (loss) before
income taxes............... (3,299) 1,316 (45) 196 (1,832) (1,440) (3,272)
Provision (benefit)
for income taxes........... (1,123) 474 (16) 71 (594) (518) (1,112)
---------- ------------- ------------- ------------- -------- ------------- ------------
Income (loss)............... (2,176) 842 (29) 125 (1,238) (922) (2,160)
---------- ------------- ------------- ------------- -------- ------------- ------------
Preferred stock dividend
requirements............... (2,610) - - - (2,610) - (2,610)
---------- ------------- ------------- ------------- -------- ------------- ------------
Income (loss) attributable
to common stock.......... $ (4,786) $ 842 $ (29) $ 125 $ (3,848) $ (922) $ (4,770)
========== ============= ============= ============= ======== ============= ============
Earnings (loss) per share
of common stock-basic and
diluted (5)................ $ (.15) $ (.12) $ (.15)
========== ======== ============
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F-2
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Pro Forma Consolidated Statement of Operations
(Unaudited)
For the year ended December 31, 1998
(Dollars in Thousands)
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<CAPTION>
Debt Pro
Historical Giddings Katy MiVida Pro Offering Forma,
Company Adjustment(1) Adjustment(2) Adjustment(3) Forma Adjustment(4) As Adjusted
----------- ------------- ------------- ------------- ----------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Revenues:
Sale of gas................... $1,611,521 $ (38,859) $ - $ (4,188) $ 1,568,474 $ - $ 1,568,474
Sale of natural gas liquids... 449,696 (8,134) - (28) 441,534 - 441,534
Processing, transportation
and storage revenue......... 44,743 (193) (15,980) (2,360) 26,210 - 26,210
Sale of electric power........ 20 - - - 20 - 20
Other, net.................... 27,586 - - - 27,586 - 27,586
---------- ------------- ------------- ------------- ----------- ------------ ------------
Total revenues 2,133,566 (47,186) (15,980) (6,576) 2,063,824 - 2,063,824
Costs and Expenses:
Product purchases............. 1,914,303 (40,540) (426) (3,664) 1,869,673 - 1,869,673
Plant operating expense....... 85,353 (4,485) (6,429) (1,654) 72,785 - 72,785
Oil and gas exploration and
production costs............ 7,996 - - - 7,996 - 7,996
Depreciation, depletion and
amortization................ 59,346 (3,330) (3,620) (765) 51,631 - 51,631
Selling and administrative
expense..................... 30,128 - - - 30,128 - 30,128
Interest expense.............. 33,616 (2,232) (6,924) (744) 23,716 5,759 29,475
Loss on the impairment of
property and equipment...... 108,447 - - - 108.447 - 108,447
---------- ------------- ------------- ------------- ----------- ------------ ------------
Total costs and expenses...... 2,239,189 (50,587) (17,399) (6,827) 2,164,376 5,759 2,170,135
Income (loss) before
income taxes................ (105,623) 3,401 1,419 251 (100,552) (5,759) (106,311)
Provision (benefit)
for income taxes............ (38,418) 1,224 511 90 (36,593) (2,073) (38,666)
---------- ------------- ------------- ------------- ----------- ------------ ------------
Income (loss)................. (67,205) 2,177 908 161 (63,959) (3,686) (67,645)
---------- ------------- ------------- ------------- ----------- ------------ ------------
Preferred stock dividend
requirements................. (10,439) - - - (10,439) - (10,439)
---------- ------------- ------------- ------------- ----------- ------------ ------------
Income (loss) attributable
to common stock......... $ (77,644) $ 2,177 $ 908 $ 161 $ (74,398) $ (3,686) $ (78,084)
========== ============= ============= ============= =========== ============ ============
Earnings (loss) per share of
common stock-basic
and diluted (5)......... $ (2.42) $ (2.32) $ (2.43)
========== =========== ============
</TABLE>
F-3
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NOTES TO PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(1) The actual results of operations achieved by the Giddings facility during
the year ended December 31, 1998 and the three months ended March 31, 1999 are
reversed to reflect the sale of this asset as if the sale had occurred on March
31, 1999 for the balance sheet and January 1, 1999 and 1998 for the statements
of operations. The sale of the Giddings facility for gross proceeds of $36.0
million is assumed to result in a net after-tax loss of approximately $3.7
million, subject to final accounting adjustment, in the second quarter of 1999.
This loss is only reflected on the Pro Forma Consolidated Balance Sheet. The
proceeds received from the sale of this facility were used to reduce long-term
debt and interest expense at our weighted average interest rate on the Revolving
Credit Facility of 6.2% for the year ended December 31, 1998 and the three
months ended March 31, 1999, respectively.
(2) The actual results of operations achieved by the Katy facility during the
year ended December 31, 1998 and the three months ended March 31, 1999 are
reversed to reflect the sale of this asset as if the sale had occurred on March
31, 1999 for the balance sheet and January 1, 1999 and 1998 for the statements
of operations. The sale of the Katy facility for gross proceeds of $100.0
million is assumed to result in a net after-tax loss of approximately $10.9
million, subject to final accounting adjustment, in the second quarter of 1999.
This loss is only reflected on the Pro Forma Consolidated Balance Sheet. In
conjunction with this sale, we sold approximately 5.1 Bcf of stored gas in the
Katy facility for approximately $11.7 million which approximated our cost of the
inventory. The combined proceeds received from the sale of this facility and the
inventory were used to reduce long-term debt and interest expense at our
weighted average interest rate on the Revolving Credit Facility of 6.2% for the
year ended December 31, 1998 and the three months ended March 31, 1999,
respectively.
(3) The actual results of operations achieved by the MiVida facility during
the year ended December 31, 1998 and the three months ended March 31, 1999 are
reversed to reflect the sale of this asset as if the sale had occurred on March
31, 1999 for the balance sheet and January 1, 1999 and 1998 for the statements
of operations. The sale of the MiVida facility for gross proceeds of $12.0
million is assumed to result in a net after-tax gain of approximately $680,000,
subject to final accounting adjustment, in the second quarter of 1999. This gain
is only reflected on the Pro Forma Consolidated Balance Sheet. The proceeds
received from the sale of this facility will be used to reduce long-term debt
and interest expense at our weighted average interest rate on the Revolving
Credit Facility of 6.2% for the year ended December 31, 1998 and the three
months ended March 31, 1999, respectively.
(4) The estimated net proceeds of the sale of $155.0 million aggregate
principal amount of senior subordinated notes maturing in 2009 ("Notes") of
$150.0 million are assumed to be used in part to repay $33.3 million of
indebtedness under the Master Shelf agreement. The pro formas assume the sale of
the Notes had occurred on March 31, 1999 for the balance sheet and January 1,
1999 and 1998 for the statements of operations and reflect interest on the Notes
at the rate of 10% per annum. In connection with the prepayment of this
indebtedness, we will incur an extraordinary loss on the early extinguishment of
debt of approximately $1.5 million, or $960,000 after-tax. This loss is only
reflected on the Pro Forma Consolidated Balance Sheet. The remaining proceeds
from the offering of Notes of $115.1 million will be used to repay a portion of
the outstanding indebtedness under the Revolving Credit Facility.
(5) The calculation of earnings (loss) per share of common stock-basic and
diluted excludes the gains and losses on the sales of Giddings, Katy and MiVida
facilities and any extraordinary loss on the early extinguishment of debt. The
weighted average shares of common stock outstanding for the quarter ended March
31, 1999 and the year ended December 31, 1998 were 32,147,993 and 32,147,354,
respectively.
F-4
