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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
DATE OF REPORT: JULY 08, 1999
SANTA FE SNYDER CORPORATION
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
DELAWARE 1-7667 36-2722169
(STATE OR OTHER JURISDICTION (COMMISSION FILE NO.) (I.R.S. EMPLOYER
OF INCORPORATION) IDENTIFICATION NO.)
840 GESSNER
SUITE 1400
HOUSTON, TEXAS 77024
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
(713) 507-5000
(REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE)
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ITEM 5. OTHER EVENTS.
This Current Report on Form 8-K is being filed by Santa Fe Snyder
Corporation to provide unaudited historical interim financial information
for the quarter ended March 31, 1999 for Snyder Oil Corporation. Snyder Oil
Corporation's unaudited historical interim financial statements for the
quarter ended March 31, 1999 are included as Exhibit 99.1 to this Form 8-K.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(C) EXHIBITS.
Exhibit
Number Description
99.1 Financial Statements of Snyder Oil Corporation.
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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 hereunto duly authorized.
SANTA FE SNYDER CORPORATION
By: /s/ MICHAEL S. WILKES
-------------------------------
Michael S. Wilkes
Vice President and
Chief Accounting Officer
Date: July 8, 1999
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INDEX TO EXHIBITS
Exhibit
Number Description
99.1 Financial Statements of Snyder Oil Corporation.
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Exhibit 99.1
SNYDER OIL CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31,
1999 1998
------------- -------------
<S> <C> <C>
Revenues:
Oil and gas sales........................................................... $ 30.0 $ 32.8
Gas transportation, processing and marketing margin......................... 0.6 0.5
Gains on sales of properties................................................ 0.4 0.0
------------- -------------
Total revenues............................................................ 31.0 33.3
------------- -------------
Costs and expenses:
Direct operating............................................................ 9.0 8.4
Exploration................................................................. 11.9 3.2
General and administrative ................................................. 4.3 4.2
Financing costs, net........................................................ 4.2 2.8
Other....................................................................... 0.2 0.1
Depletion, depreciation and amortization.................................... 13.9 11.8
------------- -------------
Income (loss) before income taxes................................................ (12.5) 2.8
Income tax (expense) benefit................................................ 4.4 (1.0)
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Net income (loss)................................................................ $ (8.1) $ 1.8
============= =============
Net income (loss) per share, basic............................................... $ (0.24) $ 0.06
============= =============
Net income (loss) per share, diluted............................................. $ (0.24) $ 0.05
============= =============
Weighted average number of shares outstanding.................................... 33.4 33.4
============= =============
</TABLE>
The accompanying notes are an integral part of these
consolidated financial statements.
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SNYDER OIL CORPORATION
CONSOLIDATED BALANCE SHEET
(IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
MARCH 31, DECEMBER 31,
1999 1998
------------- -------------
(Unaudited)
<S> <C> <C>
ASSETS
Current Assets:
Cash and cash equivalents.................................................... $ 11.2 $ 6.2
Accounts receivable, net..................................................... 18.8 27.6
Other current assets......................................................... 2.3 1.8
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Total Current Assets....................................................... 32.3 35.6
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Investments..................................................................... 26.3 24.0
Properties, plant and equipment:
Oil and gas (successful efforts method of accounting)........................ 527.3 542.3
Accumulated depletion, depreciation, amortization and impairment............. (193.3) (189.3)
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Net oil and gas properties................................................. 334.0 353.0
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Gas facilities and other..................................................... 21.4 26.3
Accumulated depreciation and amortization.................................... (9.4) (9.4)
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Net gas facilities and other............................................... 12.0 16.9
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Total properties, plant and equipment...................................... 346.0 369.9
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Other Assets:
Other...................................................................... 4.4 4.4
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Total Other Assets......................................................... 4.4 4.4
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Total Assets.................................................................... $ 409.0 $ 433.9
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable ............................................................ $ 18.9 $ 21.4
Accrued liabilities.......................................................... 48.2 51.9
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Total Current Liabilities.................................................. 67.1 73.3
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Long-term debt.................................................................. 206.8 212.8
Other long-term obligations..................................................... 18.8 19.4
Shareholders' Equity:
Common stock, $0.01 par value, 75.0 shares authorized,
36.1 shares issued and outstanding,........................................ 0.4 0.4
Capital in excess of par value............................................... 239.0 238.7
Retained earnings............................................................ 0.6 10.9
Treasury stock, at cost, 2.7 shares.......................................... (46.2) (46.2)
Unrealized losses on investments............................................. (77.5) (75.4)
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Total Shareholders' Equity...................................................... 116.3 128.4
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Total Liabilities and Shareholders' Equity...................................... $ 409.0 $ 433.9
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</TABLE>
The accompanying notes are an integral part of these
consolidated financial statements.
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SNYDER OIL CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS
(IN MILLIONS)
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31,
1999 1998
------------- -------------
<S> <C> <C>
Operating activities:
Net income (loss)............................................................ $ (8.1) $ 1.8
Adjustments to reconcile net income (loss) to
net cash provided by operating activities:
Depletion, depreciation and amortization................................... 13.9 11.8
Deferred income taxes...................................................... (4.4) 1.0
Gains on sales of properties............................................... (0.4) -
Exploration expense........................................................ 11.9 3.2
Changes in operating assets and liabilities:
Decrease (increase) in accounts receivable................................. 8.8 1.6
Decrease (increase) in inventory and other................................. (0.5) (0.7)
Increase (decrease) in accounts payable.................................... (2.5) (2.6)
Increase (decrease) in accrued liabilities................................. (4.3) 5.5
Net change in other liabilities............................................ (0.7) (0.3)
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Net cash provided by operating activities....................................... 13.7 21.3
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Investing activities:
Acquisition, exploration and development..................................... (26.2) (37.5)
Proceeds from sales of properties............................................ 25.5 -
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Net cash used in investing activities........................................... (0.7) (37.5)
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Financing activities:
Issuance of common stock..................................................... 0.2 2.1
Increase in long term debt................................................... (6.0) -
Dividends.................................................................... (2.2) (2.2)
Repurchase of common stock................................................... - (0.8)
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Net cash used in financing activities........................................... (8.0) (0.9)
-------------- ------------
Increase (decrease) in cash..................................................... 5.0 (17.1)
Cash and equivalents at beginning of period .................................... 6.2 89.4
------------- ------------
Cash and equivalents at end of period .......................................... $ 11.2 $ 72.3
============= ============
Non cash investing and financing activities:
Exchange of company stock to retire notes receivable......................... $ - $ 0.6
</TABLE>
The accompanying notes an are integral part of these
consolidated financial statements.
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NOTE 1 . BASIS OF FINANCIAL STATEMENT PRESENTATION
These unaudited consolidated financial statements have been prepared by Santa Fe
Snyder Corporation, the successor to Snyder Oil Corporation (the "Company"),
pursuant to the rules and regulations of the Securities and Exchange Commission,
and reflect all adjustments which are, in the opinion of management, necessary
for a fair statement of the results for the interim periods, on a basis
consistent with the annual audited financial statements. All such adjustments
are of a normal recurring nature. Certain information, accounting policies, and
footnote disclosures normally included in financial statements prepared in
accordance with generally accepted accounting principles have been omitted
pursuant to such rules and regulations, although the Company believes that the
disclosures are adequate to make the information presented not misleading.
Certain amounts in the prior periods' consolidated financial statements have
been reclassified to conform with current classification. These consolidated
financial statements should be read in conjunction with the financial statements
and the summary of significant accounting policies and notes thereto included in
the Company's most recent Annual Report on Form 10-K/A.
NOTE 2. INVESTMENTS
The Company held marketable securities of two foreign energy companies
accounted for using the cost method. The Company follows Statement of
Financial Accounting Standards No. 115 ("SFAS 115"), "Accounting for
Certain Investments in Debt and Equity Securities," which requires that
such investments be adjusted to their fair value with a corresponding
increase or decrease to stockholders' equity. The following table sets
forth the book/fair values and carrying costs of the investments (in
thousands):
<TABLE>
<CAPTION>
March 31, 1999 December 31, 1998
------------------------------------ -----------------------------------
Book/Fair Carrying Book/Fair Carrying
Value Cost Value Cost
------------- -------------- ------------- -------------
<S> <C> <C> <C> <C>
Cairn $ 21,274 $ 73,140 $ 17,231 $ 73,140
SOCI plc 5,044 30,923 6,752 30,923
------------- -------------- ------------- -------------
$ 26,318 $ 104,063 $ 23,983 $ 104,063
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</TABLE>
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NOTE 3. EARNINGS PER SHARE
Effective December 31, 1997, the Company adopted Statement of Financial
Accounting Standards No. 128 ("SFAS 128"), "Earning per Share", which
prescribes standards for computing and presenting earnings per share and
supersedes APB Opinion No. 15, "Earnings per Share." In accordance with
SFAS 128, income applicable to common has been calculated based on the
weighted average shares outstanding during the year and income applicable
to common-assuming dilution has been calculated assuming the exercise of
conversion of all dilutive securities as of January 1, 1999 and 1998, or as
of the date of issuance if later. The following table illustrates the
calculation of earnings per share.
<TABLE>
<CAPTION>
INCOME SHARE PER-SHARE
----------- ----------- ---------
<S> <C> <C> <C>
FOR THE THREE MONTHS ENDED MARCH 31, 1999
Loss applicable to common shareholders $ (8.1) 33.4 $ (.24)
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FOR THE THREE MONTHS ENDED MARCH 31, 1998
Income available to common shareholders $ 1.8 33.4 $ .06
Effect of dilutive securities
Stock options - .2
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Income available common-assuming dilution $ 1.8 33.6 $ .05
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</TABLE>
As of March 31, 1999, the only potentially dilutive securities outstanding
were stock options that have yet to be exercised.
NOTE 4. MERGER
On May 5, 1999, the merger of Snyder Oil Corporation with and into
Santa Fe Energy Resources, Inc. ("Santa Fe") was completed forming Santa Fe
Snyder Corporation. Under the agreement, Snyder shareholders received 2.05
shares of Santa Fe common stock for each share of Snyder common stock.
