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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): September 14, 1999
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.
Acquisition of Lehman Brothers' Interest in Spring Holding Company
As previously announced, on July 1, 1999, Cross Timbers Oil Company ("Cross
Timbers") and Lehman Brothers Holdings, Inc. ("Lehman Brothers") acquired the
common stock of Spring Holding Company ("Spring"), a private oil and gas company
with producing property interests in the Arkoma Basin of Arkansas and Oklahoma.
On September 15, 1999, Cross Timbers acquired Lehman Brothers' 50% interest in
Spring for approximately $44 million. With this purchase, Cross Timbers
increased its ownership of Spring from 50% to 100%, making Spring a wholly owned
subsidiary.
Sale of Producing Properties
On September 14, 1999, Cross Timbers completed the sale of approximately
$63.5 million in oil and gas producing properties. In two transactions, Cross
Timbers sold a total of $41 million of primarily non-operated properties in
Oklahoma, the Permian Basin of West Texas and New Mexico and the Green River
Basin of Wyoming. Additionally, Spring sold $22.5 million of properties in the
Panhandle area of Texas and in Coal County, Oklahoma. Proceeds from these sales
were used to purchase Lehman Brothers' interest in Spring, as disclosed above,
and to reduce Spring's bank debt.
Proved reserves attributable to the properties sold are 70 Bcf and 2.6
million barrels of oil and natural gas liquids. Current daily production from
these properties is approximately 18,000 Mcf and 800 barrels of oil and natural
gas liquids. Cash flow during the first half of 1999 was approximately $4.2
million. The Company's well count will be reduced by approximately 2,800 wells,
or 30%, through the sale of these properties, while decreasing reserves by less
than 5%.
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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: September 30, 1999 By: BENNIE G. KNIFFEN
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Bennie G. Kniffen
Senior Vice President
and Controller
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