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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF
SECURITIES EXCHANGE ACT OF 1934
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DATE OF EARLIEST EVENT REPORTED: JANUARY 24, 1996
SANTA FE ENERGY RESOURCES, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
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<S> <C> <C>
DELAWARE 1-7667 36-2722169
(STATE OR OTHER JURISDICTION (COMMISSION FILE NO.) (I.R.S. EMPLOYER
OF INCORPORATION) IDENTIFICATION NO.)
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1616 SOUTH VOSS ROAD, SUITE 1000, HOUSTON, TEXAS 77057
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (713) 507-5000
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ITEM 5. OTHER EVENTS
On January 24, 1996, the Company reported 1995 net income of $26.6
million, with income to common stock of $11.8 million (or approximately $0.13
per share), compared with 1994 net income of $17.1 million and income to common
stock of $5.4 million (or approximately $0.06 per share). Revenues for 1995
totaled $442.0 million, compared with $391.4 million in 1994. For the fourth
quarter of 1995, the Company reported net income of $8.4 million, with income
attributable to common stock of $4.7 million (or approximately $0.05 per
share), compared with net income of $4.5 million and income attributable to
common stock of $0.8 million (or approximately $0.01 per share) for the same
period in 1994. Revenues for the quarter totaled $122.6 million compared with
$97.8 million in the fourth quarter of 1994, primarily due to increased
production of both oil and gas and to the recognition of the settlement of a
disputed gas sales contract during the quarter.
Total production in 1995 was 33.3 million oil equivalent barrels
compared to 32.3 million oil equivalent barrels in 1994. Oil production for
1995 averaged 66,300 barrels per day compared to 65,700 barrels per day in
1994. Natural gas production in 1995 averaged 150.0 million cubic feet per day
compared to 136.6 million cubic feet per day in 1994. Oil production in the
fourth quarter of 1995 averaged 68,400 barrels per day compared to 64,800
barrels per day in the fourth quarter of 1994. Natural gas production in the
fourth quarter of 1995 averaged 160.2 million cubic feet per day compared to
125.1 million cubic feet per day in the fourth quarter of 1994.
Oil prices recognized by the Company in 1995 averaged $14.15 per
barrel, including a $0.10 per barrel benefit from oil price hedging, compared
with $12.41 per barrel recognized in 1994 without any price hedging. Natural
gas prices recognized by the Company during 1995 averaged $1.43 per thousand
cubic feet ("Mcf"), net of a $0.01 per Mcf hedging expense, compared with $1.73
Mcf in 1994, net of $0.02 per Mcf hedging expense. In the fourth quarter of
1995, crude oil prices recognized by the Company averaged $13.43 per barrel,
net of a $0.10 per barrel hedging expense, compared with $13.22 per barrel in
the 1994 period without any oil price hedging. Natural gas prices recognized
during the fourth quarter of 1995 averaged $1.64 per Mcf, net of a $0.02 per
Mcf hedging expense, compared with $1.43 during the 1994 period without any
natural gas price hedging.
Costs and expenses in 1995 totaled $388.1 million, compared with
$343.2 million in 1994, with the increase primarily due to a $30.2 million
impairment charge against producing properties in the fourth quarter of 1995
that was associated with adoption of a new accounting standard. Costs and
expenses totaled $123.5 million in the 1995 fourth quarter compared with $81.5
million in the fourth quarter of 1994.
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SANTA FE ENERGY RESOURCES, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(IN MILLIONS OF DOLLARS, EXCEPT AS NOTED)
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<CAPTION>
Three Months Ended Year Ended
December 31, December 31,
--------------------- ---------------------
1995 1994 1995 1994
---- ---- ---- ----
(unaudited) (unaudited) (unaudited)
<S> <C> <C> <C> <C>
REVENUES
Crude oil and liquids sales 83.4 77.9 337.9 293.7
Natural gas sales 23.6 16.2 77.1 83.4
Crude oil marketing and trading 4.1 2.6 14.4 11.3
Other 11.5 1.1 12.6 3.0
----- ---- ----- -----
TOTAL REVENUES 122.6 97.8 442.0 391.4
----- ---- ----- -----
COSTS AND EXPENSES
Production and operating 40.7 36.1 154.9 150.0
Exploration, including dry hole costs 5.7 4.9 23.4 20.4
Depletion, depreciation and amortization 35.9 28.6 133.2 121.3
Impairment of oil and gas properties 30.2 -- 30.2 --
General and administrative 7.0 6.3 26.9 27.3
Taxes (other than income 4.0 5.7 19.2 25.8
Restructuring charges -- -- -- 7.0
Loss (gain) on disposition of properties -- (0.1) 0.3 (8.6)
---- ---- ----- -----
TOTAL COSTS AND EXPENSES 123.5 81.5 388.1 343.2
----- ---- ----- -----
Income from Operations (0.9) 16.3 53.9 48.2
Interest income 8.7 1.0 10.7 2.8
Interest expense (4.5) (8.3) (32.5) (27.5)
Interest capitalized 1.5 0.8 5.8 3.6
Other income (0.9) (4.1) (1.6) (4.0)
----- ---- ----- -----
Income (Loss) Before Income Taxes 3.9 5.7 36.3 23.1
Income taxes 4.5 (1.2) (9.7) (6.0)
----- ---- ----- -----
Net Income (Loss) 8.4 4.5 26.6 17.1
Preferred dividend requirement (3.7) (3.7) (14.8) (11.7)
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Earnings (Loss) to Common Shares 4.7 0.8 11.8 5.4
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Earnings (Loss) per Share 0.05 0.01 0.13 0.06
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Average Shares Outstanding (in millions) 90.3 90.0 90.2 89.9
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SANTA FE ENERGY RESOURCES, INC.
CONSOLIDATED BALANCE SHEETS
(IN MILLIONS OF DOLLARS)
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<CAPTION>
December 31, December 31,
1995 1994
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(unaudited)
<S> <C> <C>
ASSETS
Cash 42.6 53.7
Other Current Assets 116.7 103.5
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159.3 157.2
Investment in Hadson Corporation -- 57.0
Property and Equipment, net 889.5 843.0
Other Assets 16.0 14.2
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1,064.8 1,071.4
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current Portion of Long-Term Debt -- 3.9
Other Current Liabilities 109.6 122.1
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109.6 126.0
Long-Term Debt 344.4 350.4
Deferred Income Taxes 64.0 56.3
Other Long-Term Obligations 29.1 35.4
Convertible Preferred Stock 80.0 80.0
Shareholders' Equity 437.7 423.3
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1,064.8 1,071.4
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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.
SANTA FE ENERGY RESOURCES, INC.
By: /s/ DAVID L. HICKS
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David L. Hicks
Vice President - Law and
General Counsel
Date: February 6, 1996
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