UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________
FORM 10-Q
AMENDMENT #1
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1996
--------------
Commission file number 1-12634
______________
BELCO OIL & GAS CORP.
(Exact name of registrant as specified in its charter)
Nevada 13-3869719
(State or other jurisdiction (I.R.S. employer
of incorporation or organization) identification no.)
767 Fifth Avenue 10153
New York, New York (Zip code)
(Address of principal executive
offices)
(212) 644-2200
(Registrant's telephone number, including area code)
______________
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 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
-- --
As of September 30, 1996, there were 31,575,300 shares of the Registrant's
Common Stock, par value $.01 per share, outstanding.
==============================================================================
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1 - FINANCIAL STATEMENTS
BELCO OIL & GAS CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(Unaudited)
<TABLE>
<CAPTION>
September 30, 1996 December 31, 1995
------------- -----------------
<C> <C>
ASSETS
-----
<S>
CURRENT ASSETS:
Cash and cash equivalents . . . . . . . . $ 57,851 $ 1,556
Accounts receivable, oil and gas . . . . 22,700 16,979
Advances to oil and gas operators . . . . -- 45
Other current assets . . . . . . . . . . 218 401
---------- --------
Total current assets . . . . . . . . . 80,769 18,981
---------- --------
PROPERTY AND EQUIPMENT:
Oil and gas properties at cost
based on full cost accounting
Proved oil and gas properties . . . . . 200,930 152,081
Unproved oil and gas properties . . . . 74,829 19,927
Less--Accumulated depreciation,
depletion and amortization . . . . . (75,662) (45,771)
---------- --------
Net property and equipment . . . . . . 200,097 126,237
---------- --------
OTHER ASSETS . . . . . . . . . . . . . . . 232 332
---------- --------
Total assets . . . . . . . . . . . . . $ 281,098 $145,550
========== ========
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Accounts payable and accrued
liabilities . . . . . . . . . . . . . . $ 14,213 $ 8,440
Revenues and royalties payable. . . . . . 3,437 --
Income taxes payable. . . . . . . . . . . 340 --
Distribution payable . . . . . . . . . . -- 10,095
---------- ----------
Total current liabilities . . . . . . . . . 17,990 18,535
---------- ----------
LONG-TERM DEBT . . . . . . . . . . . . . . -- 22,000
DEFERRED INCOME TAXES . . . . . . . . . . . 39,625 --
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Preferred stock, $.01 par value;
10,000,000 shares authorized;
none issued or outstanding . . . . . . -- --
Common stock ($.01 par value,
120,000,000 shares authorized;
31,571,300 shares issued and
outstanding at June 30, 1996) . . . . . 315 --
Additional paid-in capital . . . . . . . . 186,441 --
Retained earnings . . . . . . . . . . . . . 38,788
Combined equity of predecessor entities . . -- 105,849
Unearned compensation . . . . . . . . . . . (1,316) --
Less: Notes receivable for equity
interest . . . . . . . . . . . . . . . . (745) (834)
--------- ---------
Total stockholders' equity . . . . . . . . 223,483 105,015
--------- ---------
Total liabilities and stockholders' equity $ 281,098 $ 145,550
========= =========
</TABLE>
The accompanying notes are an integral part of these condensed financial
statements.
- 1 -
<PAGE>
BELCO OIL & GAS CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ ----------------
<C> <C> <C> <C>
1996 1995 1996 1995
---- ---- ---- ----
<S>
REVENUES:
Oil and gas sales . . . . . . $27,284 $16,275 $83,930 $47,349
Commodity Price Risk
Management. . . . . . . . . (220) 4,445 2,413 8,507
Interest and other. . . . . . 963 8 1,849 29
------- ------- ------- -------
Total revenues 28,027 20,728 88,192 55,885
------- ------- ------- -------
COSTS AND EXPENSES:
Oil and gas operating
expenses . . . . . . . . . . 1,947 1,513 5,826 4,424
Depreciation, depletion and
amortization . . . . . . . . 10,571 6,815 29,891 19,800
General and administrative. . 688 687 2,444 1,838
------- ------- ------- -------
Total costs and expenses. . . . 13,206 9,015 38,161 26,062
------- ------- ------- -------
INCOME BEFORE INCOME TAXES. . . 14,821 11,713 50,031 29,823
PROVISION FOR INCOME TAXES. . . 5,039 0 (a) 41,143 0
------- ------- ------- -------
NET INCOME (LOSS) . . . . . . . $9,782 $ 11,713 (a) $ 8,888 $ 29,823
======= ======= ======= =======
PRO FORMA NET INCOME
Income before income taxes. . $14,821 $ 11,713 $50,031 $ 29,823
Pro forma provision for
income taxes. . . . . . . . 5,039 3,865 17,011 9,842
------- -------- ------- --------
Pro forma net income . . . . . $9,782 $ 7,848 $33,020 $ 19,981
======= ========= ======= ========
PRO FORMA NET INCOME PER
COMMON SHARE . . . . . . . . $ 0.31 $ 0.31 $ 1.12 $ 0.80
======= ========= ======= ========
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING . . . . . 31,500 25,000 29,476 25,000
======= ========= ======= ========
</TABLE>
(a) Includes a one-time non-cash deferred tax charge of $29.9 million
recognized as a result of the Combination consummated on March 29, 1996
in connection with the Company's Initial Public Offering and discussed
in the Belco Oil & Gas Corp. Prospectus dated March 25, 1996.
Historical loss per share, including the deferred tax charge, was $0.30
for the nine months ended September 30, 1996. The pro forma amounts
present the Company as if a taxable corporation for all periods and is
based on the average number of shares outstanding during the period
assuming the Combination.
The accompanying notes are an integral part of these condensed financial
statements.
- 2 -
<PAGE>
BELCO OIL & GAS CORP.
CONDENSED CONSOLIDATED CHANGES IN STOCKHOLDERS' EQUITY
(in thousands)
(Unaudited)
<TABLE>
<CAPTION>
<C> <C> <C> <C> <C> <C> <C> <C>
Notes
Common Stock Additional Combined Receivable
---------------- Paid-in Unearned Retained Predecessor for Equity
Shares Amount Capital Compensation Earnings Equity Interest
Total
-------------------------------------------------------------------------------------------
<S>
BALANCE, December 31, 1995 . -- $ -- $ -- $ -- $ -- $ 105,849 $ (834) $105,015
-------------------------------------------------------------------------------------------
Exchange combination . . . . 25,000 250 71,929 -- -- (72,179) -- --
Public stock offering, net
of costs of $10.4 million. 6,500 65 113,050 -- -- -- -- 113,115
Restricted stock issued. . . 75 -- 1,462 (1,316) -- -- -- 146
Repayment of employee notes
receivable . . . . . . . . -- -- -- -- -- -- 89 89
Distributions to predecessor
owners . . . . . . . . . . -- -- -- -- -- (3,770) -- (3,770)
Net Income (loss) (a). . . . -- -- -- -- 38,788 (29,900) -- 8,888
------------------------------------------------------------------------------------------
BALANCE, September 30, 1996 31,575 $ 315 $186,441 $(1,316) $38,788 $ -- $ (745) $223,483
------------------------------------------------------------------------------------------
</TABLE>
(a) Including one-time deferred tax charge of $29.9 million upon becoming a
taxable corporation on March 29, 1996.
The accompanying notes are an integral part of these condensed financial
statements.
- 3 -
<PAGE>
BELCO OIL & GAS CORP.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)
<TABLE>
<CAPTION>
<C> <C>
Nine Months Ended
September 30,
1996 1995
----------------
<S>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) . . . . . . . . . . . . . . . .$ 8,888 $ 29,823
Adjustments to reconcile net income
(loss) to net operating cash inflows--
Depreciation, depletion and amortization. . . . 29,891 19,800
Deferred income taxes . . . . . . . . . . . . . 39,625 --
Amortization of deferred compensation . . . . . 70 --
Changes in operating assets and liabilities--
Accounts receivable . . . . . . . . . . . . . (5,721) (3,210)
Revenues and royalties payable. . . . . . . . 3,437 --
Income taxes payable. . . . . . . . . . . . . 340 --
Accounts payable and accrued liabilities. . . -- 307
Other current assets . . . . . . . . . . . . . 183 17
------- --------
Net operating cash inflows . . . . . . . . . . 76,713 46,517
CASH FLOWS FROM INVESTING ACTIVITIES:
Exploration and development expenditures. . . . . (103,751) (48,260)
Changes in accounts payable and accrued
liabilities for oil and gas expenditures. . . . 5,773 6,237
Change in advances to oil and gas operators . . . 45 1,611
Changes in other assets . . . . . . . . . . . . . 100 (110)
Other . . . . . . . . . . . . . . . . . . . . . . 76 --
------- --------
Net investing cash outflows . . . . . . . . . . . . (97,757) (40,522)
CASH FLOWS FROM FINANCING ACTIVITIES:
Long-term borrowings. . . . . . . . . . . . . . . 13,300 7,700
Long-term debt repayments . . . . . . . . . . . . (35,300) (2,100)
Net proceeds from public offering . . . . . . . . 113,115 --
Equity contributions. . . . . . . . . . . . . . . -- 4,512
Equity distributions. . . . . . . . . . . . . . . (13,865) (18,841)
Employee loans, net . . . . . . . . . . . . . . . 89 (622)
-------- -------
Net financing cash inflows (outflows) . . . . . 77,339 (9,351)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS. . 56,295 (3,356)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD. . 1,556 6,951
CASH AND CASH EQUIVALENTS AT END OF PERIOD. . . . . 57,851 3,595
</TABLE>
The accompanying notes are an integral part of these condensed financial
statements.
- 4 -
<PAGE>
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 thereunto duly authorized.
BELCO OIL & GAS CORP.,
a Nevada corporation
(REGISTRANT)
<TABLE>
<S> <C>
Date 11/12/96 /s/ LAURENCE D. BELFER
___________________ __________________________________
Laurence D. Belfer,
Executive Vice President and Chief
Operating Officer
Date 11/12/96 /s/ DOMINICK J. GOLIO
____________________ __________________________________
Dominick J. Golio,
Vice President - Finance and Chief
Financial Officer
</TABLE>
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