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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
February 4, 1999
NUEVO ENERGY COMPANY
(Exact name of registrant as specified in its charter)
DELAWARE 0-10537 76-0304436
(State or other jurisdiction of (Commission File Number) (I.R.S. Employer
Incorporation or organization) Identification
Number)
1331 LAMAR, SUITE 1650
HOUSTON, TEXAS 77010
(Address of principal executive offices)
(713) 652-0706
(Registrant's telephone number, including are code)
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ITEM 1. CHANGES IN CONTROL OF REGISTRANT
Not applicable
ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS
Nuevo Energy Company announced the completion of the January 6, 1999 sale
of its East Texas natural gas assets in the press release attached as Exhibit
99.1 (see Item 7).
ITEM 3. BANKRUPTCY OR RECEIVERSHIP
Not applicable
ITEM 4. CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANTS
Not applicable
ITEM 5. OTHER EVENTS
Not applicable
ITEM 6. RESIGNATION OF REGISTRANT'S DIRECTORS
Not applicable
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(a) Financial Statements
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ITEM 7. FINANCIAL STATEMENTS
NUEVO ENERGY COMPANY
PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
September 30, 1998
(Amounts in Thousands)
<TABLE>
<CAPTION>
As Pro Forma
Reported Adjustments Pro Forma
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ASSETS
<S> <C> <C> <C>
Cash and cash equivalents 3,883 45,163 (b) 49,046
Current assets 153,381 (107,548) (a) 45,833
Net property and equipment 691,366 -- 691,366
Deferred tax assets 12,968 (12,968) (c) --
Other assets 13,141 -- 13,141
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874,739 (75,353) 799,386
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LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities 48,306 48,306
Long-term debt, net of current maturities 408,125 (147,000) (b) 261,125
Deferred tax liabilities -- 8,719 (c) 8,719
Other long-term liabilities 2,597 2,597
Company-obligated mandatorily
redeemable convertible preferred
securities of Nuevo Financing I 115,000 -- 115,000
Stockholders' equity 300,711 62,928 (a) 363,639
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874,739 (75,353) 799,386
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</TABLE>
(a) To reflect the sale of the East Texas properties as follows:
Total proceeds 192,163
Book Basis (107,548)
---------
Gain 84,615
Taxes (21,687)
---------
After tax gain 62,928
=========
(b) Represents the assumed application of the proceeds to pay down the balance
of $147 million outstanding on the Company's bank line of credit at
September 30, 1998. Of the actual proceeds received in January, a portion
was set aside to fund an escrow account to provide "like-kind exchange" tax
treatment in the event Nuevo acquires domestic producing oil and gas
properties in the first half of 1999. The remainder of the proceeds was used
to pay down outstanding borrowings on the Company's bank line of credit.
(c) Represents the after-tax gain on the sale of the assets using an effective
tax rate of 25.63%
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ITEM 7. FINANCIAL STATEMENTS
NUEVO ENERGY COMPANY
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
For the Nine Months Ended September 30, 1998
(Amounts in Thousands, except per Share Data)
<TABLE>
<CAPTION>
As Pro Forma
Reported Adjustments Pro Forma
--------------------------------------------------------------
<S> <C> <C> <C>
Oil and gas revenues................................ 183,815 (25,898) (a) 157,917
Gain on sale of assets, net......................... 5,768 - 5,768
Other revenues...................................... 5,556 - 5,556
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195,139 (25,898) 169,241
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Lease operating expense............................. 99,796 (7,520) (a) 92,276
Other operating expense............................. 4,265 - 4,265
Exploration costs................................... 15,985 - 15,985
Depreciation, depletion and
amortization..................................... 66,817 (3,340) (a) 63,477
General and administrative expense.................. 15,478 - 15,478
Outsourcing fees.................................... 7,200 (1,301) (b) 5,899
Interest expense.................................... 23,325 (7,124) (c) 16,201
Dividends on Guaranteed Preferred
Beneficial Interests in Company's
Convertible Debentures (TECONS).................. 4,959 - 4,959
Other expense....................................... 137 - 137
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237,962 (19,285) 218,677
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Loss before income taxes............................ (42,823) (6,613) (49,436)
Income tax benefit.................................. (17,374) (1,695) (d) (19,069)
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Net loss............................................ (25,449) (4,918) (30,367)
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Basic:
Loss per Common share - Basic.................... ($1.29) ($0.25) ($1.54)
==============================================================
Weighted average Common shares outstanding....... 19,781 19,781 19,781
==============================================================
Diluted:
Loss per Common share - Diluted.................. ($1.29) ($0.25) ($1.54)
==============================================================
Weighted average Common shares outstanding....... 19,781 19,781 19,781
==============================================================
</TABLE>
(a) To reflect the actual revenues, direct operating expenses and depletion,
respectively, associated with the East Texas Properties that were sold.
(b) To reflect the reduction in outsourcing fees attributable to the reduction
in total assets and cash flows associated with the East Texas Properties.
(c) To reflect the reduction of interest expense for the assumed pay down on
the Company's bank line of credit.
(d) Represents the pro forma adjustment for income taxes at the Company's
effective income tax rate of 25.63%.
<PAGE>
ITEM 7. FINANCIAL STATEMENTS
NUEVO ENERGY COMPANY
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
For the Year Ended December 31, 1997
(Amounts in Thousands, except per Share Data)
<TABLE>
<CAPTION>
As Pro Forma
Reported Adjustments Pro Forma
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(Restated)
<S> <C> <C> <C>
Oil and gas revenues................................. 335,202 (30,820) (a) 304,382
Gain on sale of assets, net.......................... 1,372 - 1,372
Other revenues....................................... 20,704 - 20,704
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357,278 (30,820) 326,458
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Lease operating expense.............................. 123,178 (6,568) (a) 116,610
Other operating expense.............................. 15,463 - 15,463
Exploration costs.................................... 11,082 - 11,082
Provision for impairment on assets held for sale..... 23,942 - 23,942
Provision for impairment of oil and gas properties... 30,000 - 30,000
Depreciation, depletion and amortization............. 102,158 (6,296) (a) 95,862
General and administrative expense................... 19,822 - 19,822
Outsourcing fees..................................... 11,984 (1,340) (b) 10,644
Interest expense..................................... 27,357 (5,808) (c) 21,549
Dividends on Guaranteed Preferred
Beneficial Interests in Company's
Convertible Debentures (TECONS)................... 6,613 - 6,613
Other expense........................................ 3,011 - 3,011
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374,610 (20,012) 354,598
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Loss before income taxes and extraordinary item...... (17,332) (10,808) (28,140)
Income tax benefit................................... (6,656) (4,151) (d) (10,807)
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Loss before extraordinary item....................... (10,676) (6,657) (17,333)
Extraordinary loss on early extinguishment of
debt, net of income tax benefit of $2,037......... 3,024 - 3,024
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Net loss............................................. (13,700) (6,657) (20,357)
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Loss per Common share - Basic:
Loss before extraordinary item.................... $(0.54) $ (0.34) $ (0.88)
Extraordinary loss on early extinguishment of
debt, net of income tax benefit................. $(0.15) $ - $ (0.15)
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Net loss.......................................... $(0.69) $ (0.34) $ (1.03)
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Weighted average Common shares outstanding........... 19,796 19,796 19,796
=========================================================
Loss per Common share - Diluted:
Loss before extraordinary item.................... $(0.54) $ (0.34) $ (0.88)
Extraordinary loss on early extinguishment of
debt, net of income tax benefit................. $(0.15) $ - $ (0.15)
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Net loss.......................................... $(0.69) $ (0.34) $ (1.03)
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Weighted average Common shares outstanding........... 19,796 19,796 19,796
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</TABLE>
(a) To reflect the actual revenues, direct operating expenses and depletion,
respectively, associated with the East Texas Properties that were sold.
(b) To reflect the reduction in outsourcing fees attributable to the reduction
in total assets and cash flows associated with the East Texas Properties.
(c) To reflect the reduction of interest expense for the assumed pay down on
the Company's bank line of credit.
(d) Represents the pro forma adjustment for income taxes at the Company's
effective income tax rate of 38.4%.
<PAGE>
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS (CONTINUED)
(c) Exhibits
EX-99.1 Press Release dated January 8, 1999
ITEM 8. CHANGE IN FISCAL YEAR
Not applicable
ITEM 9. SALES OF EQUITY SECURITIES PURSUANT TO REGULATION S
Not applicable
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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 hereunto duly authorized.
NUEVO ENERGY COMPANY
February 4, 1999 By: /s/ Robert M. King
-------------------------
Robert M. King
Senior Vice President &
Chief Financial Officer
<PAGE>
EXHIBIT 99.1
[LETTERHEAD OF NUEVO ENERGY APPEARS HERE]
____________________________________________________________________NEWS RELEASE
FOR IMMEDIATE RELEASE Contact:
January 8, 1999 Barbara B. Forbes
Director of Investor Relations
(713) 756-1652
NUEVO ENERGY COMPANY CLOSES SALE
OF EAST TEXAS ASSETS FOR AN ADJUSTED $192 MILLION
HOUSTON -- Nuevo Energy Company (NYSE:NEV) announced today that it has completed
the previously announced sale of its East Texas natural gas assets to an
affiliate of Samson Resources Company for an adjusted purchase price of $192
million. This does not include a $5 million realized gain on completed hedge
transactions related to the sale. The East Texas assets accounted for
approximately 275 billion cubic feet equivalent (Bcfe) of Nuevo's January 1,
1998, proved reserves. The sale of the assets was effective July 1, 1998.
A portion of the proceeds has been set aside to fund an escrow account to
provide "like-kind exchange" tax treatment in the event Nuevo acquires domestic
producing oil and gas properties in the first half 1999. The balance of the
proceeds has been used to reduce outstanding senior bank debt. Following these
transactions, Nuevo's debt to total capitalization is 36%.
Following the sale, Nuevo's pro forma production breakdown is as follows:
California, 85%; onshore Gulf Coast, 8%; and international, 7%. In addition,
Nuevo's aggregate production is approximately 85% oil and 15% natural gas.
Nuevo Energy Company is a Houston, Texas-based Company primarily engaged in the
exploration for, and the acquisition, exploitation, development and production
of crude oil and natural gas. Nuevo's principal domestic properties are located
onshore and offshore California and onshore the Gulf Coast region. Nuevo is the
largest independent producer of oil and gas in California. The Company's
international properties are located offshore the Republics of Congo and Ghana
in West Africa.
This press release includes "forward-looking" statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. All statements other than
statements of historical facts included in this press release, including without
limitation, business strategies, plans and objectives of management of Nuevo for
future operations, and capital expenditures are forward-looking statements.
There can be no assurances that such forward-looking statements will prove to be
correct. Important factors that could cause actual results to differ materially
from the forward-looking statements ("Cautionary Statements") include volatility
in oil and gas prices, operating risks, the risks associated with reserve
replacement, competition from other companies and other factors set forth in the
Company's Annual Report on Form 10-K filed with the SEC and incorporated herein.
All subsequent written and oral forward-looking statements attributable to the
Company or to persons acting on its behalf are expressly qualified by the
Cautionary Statements.
