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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): APRIL 17, 1998
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 April 17, 1998, Cross Timbers Oil Company issued news release number
98-08 (Exhibit 99.1) announcing results for the quarter ended March 31, 1998.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits
Exhibit Number
and Description Page
--------------- ----
99.1 Cross Timbers Oil Company News Release Number 98-08
dated April 17, 1998.
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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: April 17, 1998 By: BENNIE G. KNIFFEN
----------------------------------------
Bennie G. Kniffen
Senior Vice President and Controller
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EXHIBIT 99.1
[CROSS TIMBERS OIL COMPANY NEWS RELEASE LETTERHEAD]
FOR IMMEDIATE RELEASE
NUMBER: 98-08
CROSS TIMBERS OIL ANNOUNCES FIRST QUARTER RESULTS
AND RECORD PRODUCTION
FORT WORTH, TX (APRIL 17, 1998) -- Cross Timbers Oil Company (NYSE-XTO)
today reported record daily production in the first quarter and net income of
$261,000 compared to first quarter 1997 results of $11.1 million. After giving
effect to the preferred dividend, earnings available to common stock were $0.00
per share, compared to first quarter 1997 results of $0.26 per share (adjusted
for the February 1998 3-for-2 stock split).
First quarter daily gas production averaged a record 176.7 million cubic
feet, a 41% increase compared to first quarter 1997 production of 125.2 million
cubic feet. Daily oil production for the quarter increased 15% to 11,959
barrels, also a record. This compares to 10,359 barrels per day for the prior
year quarter. During the quarter, production of natural gas liquids was 2,332
barrels per day. Increased production is primarily attributable to the
Company's 1997 property acquisitions and 1997 and 1998 development activity.
Cash flow from operations, before changes in working capital, was $16.8
million or 43 cents per share, compared to first quarter 1997 cash flow of $27.2
million or 67 cents per share. Total revenues for the quarter were $50.6
million, 5% below first quarter 1997 revenues of $53.5 million.
The average gas price for the first quarter decreased 25% to $1.96 per
thousand cubic feet (Mcf) from $2.62 per Mcf in first quarter 1997. The first
quarter average oil price was $13.99 per barrel, a 35% decrease from last year's
first quarter average price of $21.36. Natural gas liquids
(more)
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PAGE 2 - CROSS TIMBERS OIL - FIRST QUARTER RESULTS
prices averaged $8.47 for the quarter.
"The Company achieved record production during the first quarter," stated
Bob R. Simpson, Chairman and Chief Executive Officer. "Gas prices have
rebounded sharply from their first quarter lows. The East Texas acquisition,
expected to close later this month, will increase gas production by about 80
million cubic feet per day, resulting in a production mix of approximately 75%
gas. We anticipate record cash flow and production for 1998."
Cross Timbers Oil Company is engaged in the acquisition, exploitation and
development of quality, long-lived producing oil and gas properties. The
Company, whose predecessor companies were established in 1986, completed its
initial public offering in May 1993. Its properties are concentrated in Texas,
Oklahoma, Kansas, New Mexico and Wyoming.
CONTACT: LOUIS G. BALDWIN
SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER
CROSS TIMBERS OIL COMPANY
817/870-2800
Statements concerning future financial results, production, development
expenditures and future acquisitions and debt levels are forward-looking
statements. These statements are based on assumptions concerning commodity
prices, drilling results and production costs that management believes are
reasonable based on currently available information; however, management's
assumptions and the Company's future performance are both subject to a wide
range of business risks, and there is no assurance that these goals and
projections can or will be met. Further information is available in the
Company's filings with the Securities and Exchange Commission, which are
incorporated by this reference as though fully set forth herein.
(table follows)
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<TABLE>
<CAPTION>
CROSS TIMBERS OIL COMPANY THREE MONTHS ENDED
(in thousands, except production, per share and per unit data) MARCH 31,
--------------------
1998 1997
--------- ---------
<S> <C> <C>
(Unaudited)
CONSOLIDATED STATEMENTS OF OPERATIONS
- ----------------------------------------------------------------
REVENUES
Oil and condensate............................................. $ 15,062 $ 19,914
Gas and natural gas liquids.................................... 32,992 29,524
Gas gathering, processing and marketing........................ 1,652 2,733
Other.......................................................... 915 1,323
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Total Revenues................................................ 50,621 53,494
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EXPENSES
Production..................................................... 12,508 10,343
Exploration (a)................................................ 1,368 -
Taxes on production and property............................... 5,104 4,177
Depreciation, depletion and amortization....................... 15,582 10,969
General and administrative..................................... 2,014 3,535
Gas gathering and processing................................... 2,132 2,098
Interest....................................................... 11,251 5,275
Trust development costs........................................ 267 74
-------- --------
Total Expenses................................................ 50,226 36,471
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INCOME BEFORE INCOME TAX........................................ 395 17,023
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INCOME TAX
Current........................................................ - 256
Deferred....................................................... 134 5,672
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Total Income Tax.............................................. 134 5,928
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NET INCOME...................................................... 261 11,095
Preferred stock dividends...................................... 445 445
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EARNINGS AVAILABLE TO COMMON STOCK.............................. $ (184) $ 10,650
======== ========
EARNINGS PER COMMON SHARE (b)
Basic.......................................................... $ 0.00 $ 0.26
======== ========
Diluted........................................................ $ 0.00 $ 0.25
======== ========
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING (b).................. 39,046 40,395
======== ========
CONSOLIDATED STATEMENT OF CASH FLOWS DATA
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Cash Flow from Operations, before changes in working capital.. $ 16,804 $ 27,201
======== ========
AVERAGE DAILY PRODUCTION
- ---------------------------------------------------------------
OIL (Bbls)................................................... 11,959 10,359
GAS (Mcf).................................................... 176,675 125,245
NATURAL GAS LIQUIDS (Bbls) (c)............................... 2,332 -
AVERAGE SALES PRICES
- ---------------------------------------------------------------
OIL (per Bbl)................................................ $ 13.99 $ 21.36
GAS (per Mcf)................................................ $ 1.96 $ 2.62
NATURAL GAS LIQUIDS (per Bbl) (c)............................. $ 8.47 -
<CAPTION>
MARCH 31, December 31,
1998 1997
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CONSOLIDATED BALANCE SHEET DATA
- ---------------------------------------------------------------
Total Assets.................................................. $841,546 $788,455
======== ========
Long-term Debt................................................ $605,000 $539,000
======== ========
Total Stockholders' Equity.................................... $159,818 $170,243
======== ========
</TABLE>
(footnotes follow)
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(a) Primarily includes geological and geophysical costs related to the 1998
exploration program.
(b) Adjusted for the three-for-two stock split effected on February 25, 1998.
(c) Natural gas liquids production is attributable to San Juan Basin producing
properties acquired on December 1, 1997.
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