UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
QUARTERLY REPORT
UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1998
Commission file number 0-19766
HOME-STAKE OIL & GAS COMPANY
(Exact name of small business issuer as specified in its charter)
Oklahoma 73-0288030
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
15 East 5th Street, Suite 2800
Tulsa, Oklahoma 74103
(Address of principal executive offices)
(918) 583-0178
(Registrant's telephone number)
Check whether the issuer (1) has filed all reports required to be filed
by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12
months (or for such shorter period that the Registrant was required to file such
reports), and (2) has been subject to such filing requirements for the past 90
days. Yes |X| No | |
The number of shares outstanding of the Registrant's common stock, all
of which comprise a single class with $ .01 par value, as of November 13, 1998,
the latest practicable date, was 4,295,238.
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HOME-STAKE OIL & GAS COMPANY
FORM 10-QSB
SEPTEMBER 30, 1998
TABLE OF CONTENTS
Page
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Balance Sheets -
September 30, 1998 and December 31, 1997........................ 4
Condensed Statements of Income and Retained
Earnings - nine months ended September 30, 1998 and 1997 ....... 5
Condensed Statements of Income (Loss) and Retained
Earnings - three months ended September 30, 1998 and 1997 ...... 6
Condensed Statements of Cash Flows -
nine months ended September 30, 1998 and 1997 .................. 7
Notes to Condensed Financial Statements .......................... 8
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations .......................................... 11
PART II - OTHER INFORMATION
Item 1. Legal Proceedings ................................................ 14
Item 2. Changes in Securities and Use of Proceeds ........................ 14
Item 3. Defaults upon Senior Securities .................................. 14
Item 4. Submission of Matters to a Vote of Security Holders .............. 14
Item 5. Other Information ................................................ 14
Item 6. Exhibits and Reports on Form 8-K ................................. 14
SIGNATURES ............................................................... 15
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PART I - FINANCIAL INFORMATION
Item 1. Financial Statements.
- 3 -
<PAGE>
HOME-STAKE OIL & GAS COMPANY
CONDENSED BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
1998 1997
---- ----
Current assets:
Cash and cash equivalents...................... $ 417,881 $ 1,507,782
Accounts receivable............................ 1,624,855 1,730,114
Prepaid expenses............................... 232,868 188,461
------------- ------------
Total current assets.................... 2,275,604 3,426,357
Property and equipment, at cost:................. 48,731,939 40,624,204
Less accumulated depreciation,
depletion and amortization................. 17,906,668 15,613,520
------------- ------------
Net property and equipment.............. 30,825,271 25,010,684
Other assets..................................... 236,175 246,918
------------- ------------
$ 33,337,050 $ 28,683,959
============= ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities....... $ 1,293,854 $ 1,517,932
Income taxes payable........................... - 92,822
Current note payable (Note 3).................. 1,320,000 -
------------- ------------
Total current liabilities............... 2,613,854 1,610,754
Long-term note payable (Note 3).................. 4,620,000 -
Deferred income taxes............................ 5,150,397 5,207,548
Stockholders' equity:
Preferred stock, $1 par value -
2,000,000 shares authorized; none issued
Common stock, $ .01 par value -
12,000,000 shares authorized,
4,517,363 shares issued...................... 45,174 45,174
Additional paid-in capital..................... 15,460,621 15,460,621
Retained earnings.............................. 6,098,080 6,359,862
------------- ------------
22,028,666 21,865,657
Less treasury stock, at cost - 112,140 shares.. (651,076) -
------------- ------------
Total stockholders' equity.............. 20,952,799 21,865,657
------------- ------------
$ 33,337,050 $ 28,683,959
============= ============
See accompanying notes.
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HOME-STAKE OIL & GAS COMPANY
CONDENSED STATEMENTS OF INCOME
AND RETAINED EARNINGS
Nine months ended September 30, 1998 and 1997
(Unaudited)
1998 1997
---- ----
Revenues:
Oil and gas sales.............................. $ 7,473,959 $ 5,374,276
Gain on sales of assets........................ 23,342 111,073
Income from equity affiliates.................. - 333,541
Other income................................... 247,188 181,643
------------- ------------
7,749,489 6,000,533
Costs and expenses:
Production..................................... 2,481,057 1,648,867
Exploration.................................... 574,857 515,051
General and administrative..................... 1,778,646 833,264
Depreciation, depletion and amortization....... 2,410,359 914,248
Interest....................................... 256,856 37,713
Property and other taxes....................... 218,683 112,469
------------- ------------
7,742,458 4,061,612
------------- ------------
Income before provision for income taxes......... 29,031 1,938,921
Provision for (benefit from) income taxes:
Current........................................ 78,545 268,937
Deferred....................................... (57,151) 199,158
------------- ------------
21,394 468,095
------------- ------------
Net income....................................... 7,637 1,470,826
Retained earnings at beginning of year........... 6,359,862 4,385,862
Cash dividends ($ .08 per share - 1998,
$ .06 per shares - 1997).................... (269,419) (188,482)
------------- ------------
Retained earnings at end of period............... $ 6,098,080 $ 5,668,206
============= ============
Weighted average number of
common shares outstanding:
Basic.......................................... 4,517,877 3,396,857
============= ============
Diluted........................................ 4,671,127 n/a
=============
Net income per common share:
Basic.......................................... $ .00 $ .43
===== =====
Diluted........................................ $ .00 n/a
=====
See accompanying notes.
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HOME-STAKE OIL & GAS COMPANY
CONDENSED STATEMENTS OF INCOME (LOSS)
AND RETAINED EARNINGS
Three months ended September 30, 1998 and 1997
(Unaudited)
1998 1997
---- ----
Revenues:
Oil and gas sales.............................. $ 2,358,282 $ 1,498,282
Gain on sales of assets........................ 14,216 11,365
Income from equity affiliates.................. - 62,402
Other income................................... 87,760 77,876
------------- ------------
2,460,258 1,648,925
Costs and expenses:
Production..................................... 809,023 563,857
Exploration.................................... 421,571 97,789
General and administrative..................... 484,916 293,331
Depreciation, depletion and amortization....... 986,559 238,082
Interest....................................... 124,895 1,627
Property and other taxes....................... 95,294 25,272
------------- ------------
2,922,258 1,219,958
------------- ------------
Income (loss) before provision for income taxes.. (462,000) 428,967
Provision for (benefit from) income taxes:
Current........................................ (37,815) 31,927
Deferred....................................... (88,118) 17,352
------------- ------------
(125,933) 49,279
------------- ------------
Net income (loss)................................ (336,067) 379,688
Retained earnings at beginning of period......... 6,522,871 5,351,346
Cash dividends ($ .02 per share)................. (88,724) (62,828)
------------- ------------
Retained earnings at end of period............... $ 6,098,080 $ 5,668,206
============= ============
Weighted average number of
common shares outstanding:
Basic.......................................... 4,503,840 3,396,857
============= ============
Diluted........................................ 4,659,090 n/a
=============
Net income (loss) per common share:
Basic.......................................... $(.07) $ .11
===== =====
Diluted........................................ $(.07) n/a
=====
See accompanying notes.
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HOME-STAKE OIL & GAS COMPANY
CONDENSED STATEMENTS OF CASH FLOWS
Nine months ended September 30, 1998 and 1997
(Unaudited)
1998 1997
---- ----
Operating activities:
Oil and gas sales, net of production taxes..... $ 7,451,190 $ 5,054,696
Other.......................................... 247,188 238,698
------------- ------------
7,698,378 5,293,394
Cash paid to suppliers and employees........... 4,196,546 2,175,858
Interest paid.................................. 256,856 37,713
Property and other taxes....................... 218,683 112,469
Income taxes paid.............................. 284,678 337,535
------------- ------------
4,956,763 2,663,575
------------- ------------
Net cash provided by operating activities.... 2,741,615 2,629,819
Investing activities:
Proceeds from sales of property and equipment.. 118,453 509,539
Acquisition of property and equipment.......... (8,975,424) (1,465,689)
Dividends from equity affiliate................ - 45,506
------------- ------------
Net cash used in investing activities........ (8,856,971) (910,644)
Financing activities:
Loan proceeds.................................. 6,600,000 -
Note payments.................................. (660,000) (1,366,035)
Purchase of treasury stock..................... (651,076) -
Cash dividends paid............................ (263,469) (189,760)
------------- ------------
Net cash provided by (used in)
financing activities........................ 5,025,455 (1,555,795)
------------- ------------
Net increase (decrease) in cash
and cash equivalents........................ (1,089,901) 168,380
Cash and cash equivalents at beginning of year... 1,507,782 626,864
------------- ------------
Cash and cash equivalents at end of period....... $ 417,881 $ 790,244
============= ============
See accompanying notes.
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HOME-STAKE OIL & GAS COMPANY
NOTES TO CONDENSED FINANCIAL STATEMENTS
(Unaudited)
Description of business
Home-Stake Oil & Gas Company ("HSOG" or the "Company") is an independent oil and
gas producer actively engaged in the acquisition, exploration, development and
production of oil and gas properties. Oil and gas exploration and production
activities are subject to numerous risks inherent in the business. These include
the volatility of oil and gas prices, environmental concerns and governmental
regulations, general business risks and hazards involving the acquisition and
operation of oil and gas properties, the ability to continue to find new
reserves to replace those being depleted and the highly competitive nature of
the business. Its principal geographic operating areas lie within the states of
Oklahoma, Montana and Texas.
Note 1 - General
The unaudited financial information provided in this report includes all normal
recurring adjustments which are, in the opinion of management, necessary to
fairly present the financial position, results of operations and cash flows of
the Company. Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally accepted accounting
principles have been omitted or condensed. The Company believes that the
disclosures herein are adequate to make the information presented not
misleading; however, these financial statements should be read in conjunction
with the audited financial statements and related notes thereto included in the
Company's Annual Report on Form 10-KSB for the year ended December 31, 1997.
The results for interim periods are not necessarily indicative of trends or of
results to be expected for the full year.
Note 2 - Merger and pro forma financial information
On March 31, 1998, the Company purchased certain natural gas producing
properties from Sid R. Bass, Inc. et al (the "Bass Properties") for a purchase
price of approximately $6.6 million, subject to certain adjustments for
operations subsequent to January 1, 1998. The third quarter 1998 condensed
financial statements include the 1998 operating results of the Bass Properties.
The following pro forma financial information reflects the combined historical
amounts of the Company and the Bass Properties as if the acquisition had
occurred on January 1, 1997:
Nine months ended
-----------------
Sept. 30, 1998 Sept. 30, 1997
-------------- --------------
Revenue........................................ $ 7,945,732 $ 5,296,717
Income (loss) before provision
for income taxes.......................... (5,907) 905,707
Net income (loss).............................. (1,554) 758,936
Basic net income per share..................... 0.00 0.22
On December 31, 1997, The Home-Stake Royalty Corporation ("HSRC") was merged
with and into the Company. This transaction was accounted for by the purchase
method of accounting for business combinations. The merged companies adopted the
name of HSOG, which was deemed to be the purchased entity for accounting
purposes since the former HSRC stockholders received approximately 61% of the
merged entity's common stock. Accordingly, the condensed statement of income and
retained earnings and statement of cash flows for the periods ended September
30, 1997, have been restated to reflect the historical operations of HSRC prior
to the merger. The balance sheets at September 30, 1998 and December 31, 1997,
reflect the assets and liabilities of the merged entities. All references to the
number of shares and per share amounts reflect the historical shares of HSRC,
adjusted for the 48.66 exchange ratio.
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HOME-STAKE OIL & GAS COMPANY
NOTES TO CONDENSED FINANCIAL STATEMENTS
(Unaudited)
Note 2 - Merger and pro forma financial information (continued)
Since the merger of the Company and HSRC was accounted for by the purchase
method of accounting, the accompanying 1997 statement of income and retained
earnings does not include any revenues or expenses of the former HSOG. Following
is summarized pro forma 1997 information for the nine months and quarter ended
September 30, 1997, assuming the acquisition had occurred on January 1, 1997.
This pro forma information reflects the combined historical amounts for the two
companies, adjusted to eliminate the income and amortization of each company
related to its ownership in the other, and the increases in depreciation,
depletion and amortization and income taxes related to the merger. Such pro
forma information is not intended to be indicative of the actual results of
operations had the transaction occurred on the date indicated.
Nine Three
Months Months
Ended Ended
Sept. 30, Sept. 30,
1997 1997
---- ----
Revenues:
Oil and gas sales.............................. $ 10,311,422 $ 2,871,030
Gain on sales of assets........................ 222,149 22,733
Other.......................................... 443,317 140,992
------------- ------------
10,976,888 3,034,755
Costs and expenses:
Production..................................... 3,268,797 1,110,276
Exploration.................................... 894,558 167,511
General and administrative..................... 1,666,174 589,401
Depreciation, depletion and amortization....... 1,949,611 613,063
Interest....................................... 232,878 50,874
Property and other taxes....................... 208,297 49,897
------------- ------------
8,220,315 2,581,022
------------- ------------
Income before income tax......................... 2,756,573 453,733
Income tax expense............................... 955,331 157,248
------------- ------------
Net income....................................... $ 1,801,242 $ 296,485
============= ============
Weighted average number of shares outstanding.... 4,517,363 4,517,363
============= ============
Basic net income per share....................... $ .40 $ .07
===== =====
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HOME-STAKE OIL & GAS COMPANY
NOTES TO CONDENSED FINANCIAL STATEMENTS
(Unaudited)
Note 3 - Note payable
The note payable at September 30, 1998, represents the amounts due under the
Company's financing agreement which is due May 1, 2000 and provides for monthly
maturities of $110,000, plus interest at bank prime less 1/2 %. In addition, the
Company has a line of credit in the amount of $5,000,000 available until May 1,
1999 which provides for monthly payments of interest on the outstanding
borrowings at bank prime less 1%. In connection with this line of credit, the
Company pays a commitment fee of one-half of one per cent (1/2%) per annum on
the unused portion of the line.
This note and the line of credit described above are collateralized by certain
of the Company's producing properties.
Note 4 - Stock options and net income per share
On February 12, 1998, the Board of Directors granted qualified stock options in
varying amounts to all employees totaling 155,250 shares. Such options vest over
a 5-year period. In addition, there were non-qualified options issued to all
outside directors in the aggregate amount of 100,000 shares that are currently
exercisable. The options have an exercise price of $4.50 per share which
approximated the fair value of the Company's stock at the date of grant.
In accordance with Statement of Financial Accounting Standards No. 128, "Earning
per Share", net income per common share is computed using two calculations;
basic net income per share and diluted income per share. Basic net income per
common share is calculated based on the weighted average shares outstanding
during the period. Diluted net income per common share is calculated based on
the weighted average shares outstanding including stock options which are
dilutive.
Note 5 - Contingencies
The Company is involved in various legal actions arising in the normal course of
business. In the opinion of management, the Company's liabilities, if any, in
these matters will not have a material effect on the Company's financial
position, results of operations or cash flows.
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<PAGE>
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations.
General
As further described in Note 2 to the unaudited condensed financial statements,
on December 31, 1997, The Home-Stake Royalty Corporation ("HSRC") was merged
with and into the Company. This transaction was accounted for by the purchase
method of accounting for business combinations, with the merged entity adopting
the name of Home-Stake Oil & Gas Company, which was deemed to be the purchased
entity for accounting purposes. Accordingly, the condensed statements of income
included herein reflect the historical results of operations of HSRC for 1997
and the results of operations of the merged entities for 1998.
Results of Operations - First nine months of 1998 compared with first nine
months of 1997
Net income for the nine months ended September 30 decreased $1,463,189 from
$1,470,826 in 1997 to $7,637 in 1998. The principal reasons for this decrease
are as follows:
Oil sales increased $440,567 (14%) in 1998. The Company's oil production
increased from 167,067 barrels in 1997 to 286,651 barrels in 1998. This increase
is partially offset by a decrease in the average oil price from $19.06 per
barrel in 1997 to $12.65 per barrel in 1998. The increased production volume is
primarily attributable to the merger with HSRC, partially offset by the sale in
late 1997 of the Company's interest in the Countyline Unit.
Gas sales increased 76% ($1,627,596), primarily due to the increase in sales
volumes. Gas production increased from 913,979 mcf in 1997 to 1,812,713 mcf in
1998, primarily as a result of the merger and the additional production provided
by the Bass Properties which were purchased March 31, 1998. This increase
however, was partially offset by lower average gas prices which decreased from
$2.33 in 1997 to $2.07 in 1998.
Income from equity affiliates decreased $333,541. As described above, on
December 31, 1997, HSRC was merged with and into HSOG. Consequently, there is no
comparable 1998 amount.
Production expenses increased $832,190, due primarily to the $702,747 increase
in lease operating expenses resulting from the merger. Production taxes
increased $129,443 as a result of the higher product sales described above.
Exploration costs increased $59,806 in 1998. Dry hole costs decreased $5,775 in
1998 due to a lower incidence of dry holes. This decrease was offset by an
increase in condemned and abandoned property expenses of $65,581 in 1998
resulting from the impairment of certain non-producing leases.
General and administrative expenses increased $945,382, from $833,264 in 1997 to
$1,778,646 in 1998. The primary reason for this increase is the merger and
higher personnel costs.
Depreciation, depletion and amortization increased $1,496,111. This increase is
directly attributable to the increase in property and equipment following the
merger and the acquisition of the Bass Properties on March 31, 1998.
Interest expense increased $219,143 in 1998. 1997 expense included interest
attributable to certain outstanding bank debt retired during the first quarter
of 1997. 1998 expense includes interest on the March 31, 1998 bank loan wherein
the Company borrowed $6.6 million to finance the purchase of the Bass
Properties.
Results of Operations - Third quarter 1998 compared with third quarter 1997
Net income for the third quarter decreased $715,755 from $379,688 in 1997 to a
loss of $336,067 in 1998. The principal reasons for this decrease are as
follows:
Oil sales increased $110,860 (12%). The Company's oil production increased from
52,719 barrels in 1997 to 93,630 barrels in 1998. This increase was partially
offset by a decrease in the average oil price from $16.89 per barrel in 1997 to
$10.70 per barrel in 1998. The increased production volume is primarily
attributable to the merger with HSRC, partially offset by the sale in late 1997
of the Company's interest in the Countyline Unit.
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<PAGE>
Gas sales increased 117% ($712,620), primarily due to the increase in sales
volumes. Gas production increased from 289,284 mcf in 1997 to 704,240 mcf in
1998, primarily as a result of the merger and the additional production provided
by the Bass Properties which were purchased March 31, 1998. This increase was
partially offset by lower average gas prices which decreased from $2.10 in 1997
to $1.87 in 1998.
Income from equity affiliates decreased $62,402. As described above, on December
31, 1997, HSRC was merged with and into HSOG. Consequently, there is no
comparable 1998 amount.
Production expenses increased $245,166, due primarily to the $183,396 increase
in lease operating expenses resulting from the merger. Production taxes
increased $61,770 as a result of the higher product sales described above.
Exploration costs increased $323,782 in 1998. Dry hole costs increased $264,107
in 1998 due to a higher incidence of dry holes. In addition, condemned and
abandoned property expenses increased $59,675 as a result of the impairment of
certain non-producing leases.
General and administrative expenses increased $191,585, from $289,331 in 1997 to
$484,916 in 1998. The primary reason for this increase is the merger. 1998
expense also includes higher personnel costs.
Depreciation, depletion and amortization increased $748,477. This increase is
directly attributable to the increase in property and equipment following the
merger and the acquisition of the Bass Properties on March 31, 1998.
Interest expense increased $123,268 in 1998. In 1997 there were no outstanding
bank loans during the third quarter. 1998 expense includes interest on the March
31, 1998 bank loan wherein the Company borrowed $6.6 million to finance the
purchase of the Bass Properties.
Financial Condition and Liquidity
The Company's operating activities have traditionally been self-financed through
internally generated cash flows. The principal use of cash flows has generally
been to fund the Company's exploration and production activities and for the
payment of dividends to stockholders. The use of borrowed funds has generally
been limited to the acquisition of producing oil and gas properties where future
revenues from such purchases are expected to fund the debt.
The Company's capital budget for 1998, excluding acquisitions, is $2 million.
During the first nine months of the year the Company had capital expenditures of
approximately $8.7 million, which includes $6.5 million associated with the
acquisition of the Bass Properties. In addition, the Company has current
drilling commitments for 1998 of approximately $.6 million and 1999 commitments
of approximately $250,000. The Company is continuing to actively pursue other
opportunities for the acquisition of producing properties whenever possible.
At its August 1998 meeting, the Company's Board of Directors approved a stock
repurchase plan and authorized the acquisition of up to 300,000 shares of the
Company's common stock at prevailing market prices in the open market or in
privately negotiated transactions. During the third quarter, the Company
acquired 112,140 shares of its common stock at a cost of $651,076 and in early
October acquired an additional 109,985 shares at a cost of $549,925. These
purchases were funded from available cash and an advance under the Company's
line-of-credit in the amount of $625,000, which was completed in early October.
Product prices have remained depressed throughout the year. Despite this
situation, the Company expects to finance its remaining 1998 operations and
drilling through internally generated cash flows. In addition, the Company has a
$5 million line of credit available until May 1, 1999. In October, the Company
borrowed $625,000 under this line as described above.
If product prices remain at their current levels through the end of the year, it
is likely that the Company will be reducing the estimated recoverable reserves
on many of its properties since such estimates are based on economic conditions
in existence in the period of assessment. If such revisions occur, it will have
the effect of increasing the rates of amortization on the affected properties,
thereby decreasing earnings through higher depreciation, depletion and
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<PAGE>
amortization expenses. In addition, they may be sufficient to trigger impairment
losses on certain properties. The Company will make such assessments at
year-end, based on economic conditions at that time.
The Company has substantially completed the internal assessment of its "Year
2000" problem. There was no disruption of operations or business activities
while addressing the situation and the Company did not incur any significant
expenses in this regard. The Company is now confirming the compliance of its
significant third-parties that affect the Company's business and expects this
process to be completed in the first quarter of 1999. In conjunction with this
third-party assessment, the Company will determine the need for a contingency
plan to deal with significant non-compliance by such third-parties. Due to the
nature of the Year 2000 problem, however, no assurance can be given that all
issues have been or will be identified and that all third-parties that affect
the Company's business will be Year 2000 compliant.
Forward-Looking Statements
Certain statements included in this report which are not historical facts are
"forward-looking statements", including statements with respect to oil and gas
reserves, the number and anticipated costs of wells to be drilled, future
capital expenditures (including the amount and nature thereof), anticipated date
of repayment of bank debt and other such matters. These forward-looking
statements are based on current expectations, estimates, assumptions and beliefs
of management; and words such as "expects", "believes", "anticipates",
"intends", "plans" and similar expressions are intended to identify such
forward-looking statements. These forward-looking statements involve risks and
uncertainties, including, but not limited to: dependence upon the prices for oil
and natural gas which prices are subject to significant fluctuations in response
to relatively minor changes in supply and demand for such products, market
uncertainty, political conditions in oil producing regions, domestic and foreign
government regulations, the price and availability of alternative fuels and a
variety of other factors; competition in the acquisition of oil and gas
properties and the development, production and marketing of oil and natural gas;
operating hazards typically associated with the exploration, development,
production and transportation of oil and natural gas; federal, state and local
laws relating to the exploration, development, production and marketing of oil
and natural gas, including environmental and safety matters; changes in laws and
regulations; and other factors, most of which are beyond the control of the
Company. Accordingly, actual results and developments may differ materially from
those expressed in the forward-looking statements. The Company assumes no
obligation to update publicly any forward-looking statements, whether as a
result of new information, future events or otherwise.
- 13 -
<PAGE>
Part II. Other Information
Item 1. Legal Proceedings.
None.
Item 2. Changes in Securities and Use of Proceeds.
None.
Item 3. Defaults Upon Senior Securities.
None.
Item 4. Submission of Matters to a Vote of Security Holders.
None.
Item 5. Other Information.
None.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits.
The following documents are included as exhibits to this Form 10-QSB.
Exhibit
Number Description
27 Financial Data Schedule.
(b) Reports on Form 8-K.
None.
- 14 -
<PAGE>
Signatures
In accordance with the requirements of the Exchange Act , the Registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
Home-Stake Oil & Gas Company
(Registrant)
Date: November 16, 1998 By: /s/ Robert C. Simpson
------------------------------
Robert C. Simpson
Chairman of the Board, C.E.O.
and President
Date: November 16, 1998 By: /s/ Chris K. Corcoran
------------------------------
Chris K. Corcoran
Executive Vice President,
Chief Financial Officer and
Corporate Secretary
- 15 -
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> SEP-30-1998
<CASH> 417,881
<SECURITIES> 0
<RECEIVABLES> 1,624,855
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 2,275,604
<PP&E> 48,731,939
<DEPRECIATION> 17,906,668
<TOTAL-ASSETS> 33,337,050
<CURRENT-LIABILITIES> 2,613,854
<BONDS> 4,620,000
0
0
<COMMON> 45,174
<OTHER-SE> 15,460,621
<TOTAL-LIABILITY-AND-EQUITY> 33,337,050
<SALES> 7,473,959
<TOTAL-REVENUES> 7,749,489
<CGS> 0
<TOTAL-COSTS> 2,481,057
<OTHER-EXPENSES> 574,857
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 256,856
<INCOME-PRETAX> 29,031
<INCOME-TAX> 21,394
<INCOME-CONTINUING> 7,637
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 7,637
<EPS-PRIMARY> .00
<EPS-DILUTED> .00
</TABLE>
