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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 (Date of earliest event reported): MAY 21, 1996
CROSS TIMBERS OIL COMPANY
(Exact name of registrant as specified in its charter)
DELAWARE 1-10662 75-2347769
(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation) Identification No.)
810 HOUSTON STREET, SUITE 2000, FORT WORTH, TEXAS 76102
(Address of principal executive offices) (Zip Code)
(817) 870-2800
(Registrant's telephone number, including area code)
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ITEM 5. OTHER EVENTS.
On May 21, 1996, the Board of Directors of Cross Timbers Oil Company, a Delaware
corporation ("the Company"), increased the Company's 1996 development budget to
$40 million, a 60% increase over the $25 million initially budgeted. Further
increases in development expenditures to $60 to $80 million are expected in
1997, depending on drilling results in 1996 and commodity prices.
The Company plans to allocate 10% to 20% of these expenditures to higher risk
projects, including step-out development wells and exploratory drilling.
Selected projects must have the potential to add three to ten million net
equivalent barrels to the Company's proved reserves and to substantially
increase its cash flow. The Company is currently pursuing a natural gas
opportunity that meets this criteria in southeastern New Mexico.
In addition to the previously announced agreement to acquire primarily
gas-producing properties in the Green River Basin of southwestern Wyoming for a
preliminary purchase price of $40 million, the Company plans to make strategic
acquisitions totaling $120 million over the next 18 months. Such acquisitions
will include additional interests in and around the Company's current
operations, as well as purchases of the Company's common stock. The Board of
Directors has authorized the purchase of up to two million of the Company's
common shares, or about 11% of shares outstanding. The shares will be purchased
from time-to-time in open-market or negotiated transactions when management
believes the Company's stock is more attractive than other acquisition
opportunities.
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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.
CROSS TIMBERS OIL COMPANY
Date: June 7, 1996 By: /s/ LOUIS G. BALDWIN
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Louis G. Baldwin
Senior Vice President and
Chief Financial Officer
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