<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934 (FEE REQUIRED)
For the Fiscal Year ending December 31, 1995
OR
[_] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 (NO FEE REQUIRED)
Commission File Number 0-22650
PETROCORP INCORPORATED 401(K) RETIREMENT SAVINGS PLAN
(Full title of the plan)
PETROCORP INCORPORATED
16800 Greenspoint Park Drive
Suite 300, North Atrium
Houston, Texas 77060-2391
(Name of Issuer of the Securities Held Pursuant to the Plan and Address of
Principal Executive Offices)
Registrant's Telephone Number, Including Area Code: (713) 875-2500
<PAGE>
PETROCORP INCORPORATED
401(K) RETIREMENT SAVINGS PLAN
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE NO.
--------
<S> <C>
REPORT OF INDEPENDENT ACCOUNTANTS (Not required -- see Note 2.)
FINANCIAL STATEMENTS:
Statement of Net Assets Available for Benefits with Fund Information as of December 31,
1995 and 1994 2
Statement of Changes in Net Assets Available for Benefits with Fund Information for the
years ended December 31, 1995 and 1994 3
Notes to Financial Statements 4
SUPPLEMENTAL SCHEDULES:
Item 27a - Schedule of Assets Held for Investment (Not required -- see Note 2.)
Item 27d - Schedule of Reportable Transactions (Not required -- see Note 2.)
SIGNATURES 9
</TABLE>
<PAGE>
PETROCORP INCORPORATED 401(K) RETIREMENT SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
(UNAUDITED)
<TABLE>
<CAPTION>
December 31, 1995
----------------------------------------------------------------------------------------------
Assets
------------------------------------------------------------------------------------------
Investments, at fair value
----------------------------------------------------------- Guaranteed
Pooled Participant investment
separate Common notes contract, at
accounts stock receivable Total contract value Cash
---------- -------- ------------- ---------- ---------------- ------
<S> <C> <C> <C> <C> <C> <C>
PRINCIPAL INVESTMENTS:
Guaranteed Interest Account $ -- $ -- $ -- $ -- $111,136 $ --
U.S. Stock Account 168,427 -- -- 168,427 -- --
Money Market Account 26,668 -- -- 26,668 -- --
Real Estate Account 5,442 -- -- 5,442 -- --
Bond & Mortgage Account 72,643 -- -- 72,643 -- --
International Stock Account 167,408 -- -- 167,408 -- --
Government Securities Account 35,297 -- -- 35,297 -- --
Stock Index Account 48,234 -- -- 48,234 -- --
Value Stock Account 122,732 -- -- 122,732 -- --
Small Company Stock Account 320,327 -- -- 320,327 -- --
Growth Stock Account 67,250 -- -- 67,250 -- --
Bond Emphasis Balanced
Account 50,447 -- -- 50,447 -- --
Stock Emphasis Balanced
Account 89,242 -- -- 89,242 -- --
COMPANY STOCK -- 324,224 -- 324,224 -- 6,056
PARTICIPANT NOTES -- -- 30,002 30,002 -- --
---------- -------- ------- ---------- -------- ------
$1,174,117 $324,224 $30,002 $1,528,343 $111,136 $6,056
========== ======== ======= ========== ======== ======
December 31, 1995
---------------------------------------------
Net assets
available for
Total Liabilities benefits
---------- ----------- -------------
<S> <C> <C> <C>
PRINCIPAL INVESTMENTS:
Guaranteed Interest Account $ 111,136 $ -- $ 111,136
U.S. Stock Account 168,427 -- 168,427
Money Market Account 26,668 -- 26,668
Real Estate Account 5,442 -- 5,442
Bond & Mortgage Account 72,643 -- 72,643
International Stock Account 167,408 -- 167,408
Government Securities Account 35,297 -- 35,297
Stock Index Account 48,234 -- 48,234
Value Stock Account 122,732 -- 122,732
Small Company Stock Account 320,327 -- 320,327
Growth Stock Account 67,250 -- 67,250
Bond Emphasis Balanced
Account 50,447 -- 50,447
Stock Emphasis Balanced
Account 89,242 -- 89,242
COMPANY STOCK 330,280 -- 330,280
PARTICIPANT NOTES 30,002 -- 30,002
---------- -------- ----------
$1,645,535 $ -- $1,645,535
========== ======== ==========
</TABLE>
<TABLE>
<CAPTION>
December 31, 1994
----------------------------------------------------------------------------------------------
Assets
------------------------------------------------------------------------------------------
Investments, at fair value
----------------------------------------------------------- Guaranteed
Pooled Participant investment
separate Common notes contract, at
accounts stock receivable Total contract value Cash
---------- -------- ------------- ---------- ---------------- ------
<S> <C> <C> <C> <C> <C> <C>
PRINCIPAL INVESTMENTS:
Guaranteed Interest Account $ -- $ -- $ -- $ -- $ 75,915 $ --
U.S. Stock Account 83,545 -- -- 83,545 -- --
Money Market Account 8,289 -- -- 8,289 -- --
Real Estate Account 6,118 -- -- 6,118 -- --
Bond & Mortgage Account 61,216 -- -- 61,216 -- --
International Stock Account 123,589 -- -- 123,589 -- --
Government Securities Account 21,978 -- -- 21,978 -- --
Stock Index Account 21,667 -- -- 21,667 -- --
Value Stock Account 64,590 -- -- 64,590 -- --
Small Company Stock Account 212,427 -- -- 212,427 -- --
Growth Stock Account 24,080 -- -- 24,080 -- --
Bond Emphasis Balanced
Account 36,502 -- -- 36,502 -- --
Stock Emphasis Balanced
Account 61,603 -- -- 61,603 -- --
COMPANY STOCK -- 264,728 -- 264,728 -- 2,779
PARTICIPANT NOTES -- -- 14,536 14,536 -- --
-------- -------- ------- ---------- ------- ------
$725,604 $264,728 $14,536 $1,004,868 $75,915 $2,779
======== ======== ======= ========== ======= ======
December 31, 1994
---------------------------------------------
Net assets
available for
Total Liabilities benefits
---------- ----------- -------------
<S> <C> <C> <C>
PRINCIPAL INVESTMENTS:
Guaranteed Interest Account $ 75,915 $ -- $ 75,915
U.S. Stock Account 83,545 -- 83,545
Money Market Account 8,289 -- 8,289
Real Estate Account 6,118 -- 6,118
Bond & Mortgage Account 61,216 -- 61,216
International Stock Account 123,589 -- 123,589
Government Securities Account 21,978 -- 21,978
Stock Index Account 21,667 -- 21,667
Value Stock Account 64,590 -- 64,590
Small Company Stock Account 212,427 -- 212,427
Growth Stock Account 24,080 -- 24,080
Bond Emphasis Balanced
Account 36,502 -- 36,502
Stock Emphasis Balanced
Account 61,603 -- 61,603
COMPANY STOCK 267,507 -- 267,507
PARTICIPANT NOTES 14,536 -- 14,536
---------- -------- ----------
$1,083,562 $ -- $1,083,562
========== ======== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
2
<PAGE>
PETROCORP INCORPORATED 401(K) RETIREMENT SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
(UNAUDITED)
<TABLE>
<CAPTION>
Year Ended December 31, 1995
------------------------------------------------------------------------------------------------
Additions
------------------------------------------------------------------------------------------------
Investment income
-----------------------------------------
Net appreciation
(depreciation)
in fair value of Contributions
investment -------------------------------------- Total
Interest (Note 3) Total Employer Participants Total additions
---------- ---------------- --------- ---------- -------------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
PRINCIPAL INVESTMENTS:
Guaranteed Interest Account $6,217 $ -- $ 6,217 $ 11,097 $ 22,658 $ 33,755 $ 39,972
U.S. Stock Account -- 36,402 36,402 19,049 30,697 49,746 86,148
Money Market Account -- 1,111 1,111 3,788 8,499 12,287 13,398
Real Estate Account -- 405 405 688 598 1,286 1,691
Bond & Mortgage Account -- 10,592 10,592 8,987 15,411 24,398 34,990
International Stock Account -- 21,596 21,596 21,327 35,331 56,658 78,254
Government Securities Account -- 4,958 4,958 4,487 6,868 11,355 16,313
Stock Index Account -- 10,503 10,503 5,797 8,488 14,285 24,788
Value Stock Account -- 31,105 31,105 14,493 20,089 34,582 65,687
Small Company Stock Account -- 68,373 68,373 33,580 45,135 78,715 147,088
Growth Stock Account -- 14,179 14,179 9,311 15,767 25,078 39,257
Bond Emphasis Balanced
Account -- 7,703 7,703 5,407 7,188 12,595 20,298
Stock Emphasis Balanced
Account -- 15,005 15,005 9,080 22,021 31,101 46,106
COMPANY STOCK -- (96,057) (96,057) 89,350 72,095 161,445 65,388
PARTICIPANT NOTES 1,806 -- 1,806 -- -- -- 1,806
------- -------- -------- -------- -------- -------- --------
$8,023 $125,875 $133,898 $236,441 $310,845 $547,286 $681,184
======= ======== ======== ======== ======== ======== ========
Year Ended December 31, 1995
--------------------------------------------------------------------------------------------------
(Deductions)
----------------------------------------------------- Net assets at Net assets at
Participant Admin. Interfund Total Net increase beginning of end of
benefits expenses transfers deductions (decrease) year year
---------- ------------ --------- ----------- ------------ ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
PRINCIPAL INVESTMENTS:
Guaranteed Interest Account $ (1,804) $ (86) $ (2,861) $ (4,751) $ 35,221 $ 75,915 $ 111,136
U.S. Stock Account -- (71) (1,195) (1,266) 84,882 83,545 168,427
Money Market Account (3,452) (19) 8,452 4,981 18,379 8,289 26,668
Real Estate Account (2,423) (24) 80 (2,367) (676) 6,118 5,442
Bond & Mortgage Account (13,555) (22) (9,986) (23,563) 11,427 61,216 72,643
International Stock Account (29,988) (99) (4,348) (34,435) 43,819 123,589 167,408
Government Securities Account (3,300) (17) 323 (2,994) 13,319 21,978 35,297
Stock Index Account -- (29) 1,808 1,779 26,567 21,667 48,234
Value Stock Account (241) (65) (7,239) (7,545) 58,142 64,590 122,732
Small Company Stock Account (28,795) (95) (10,298) (39,188) 107,900 212,427 320,327
Growth Stock Account (6,533) (95) 10,541 3,913 43,170 24,080 67,250
Bond Emphasis Balanced
Account (3,839) (36) (2,478) (6,353) 13,945 36,502 50,447
Stock Emphasis Balanced
Account (18,532) (88) 153 (18,467) 27,639 61,603 89,242
COMPANY STOCK (5,043) -- 2,428 (2,615) 62,773 267,507 330,280
PARTICIPANT NOTES (960) -- 14,620 13,660 15,466 14,536 30,002
--------- ----- -------- --------- -------- ---------- ----------
$(118,465) $(746) $ -- $(119,211) $561,973 $1,083,562 $1,645,535
========= ===== ======== ========= ======== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
Year Ended December 31, 1994
------------------------------------------------------------------------------------------------
Additions
------------------------------------------------------------------------------------------------
Investment income
-----------------------------------------
Net appreciation
(depreciation)
in fair value of Contributions
investment -------------------------------------- Total
Interest (Note 3) Total Employer Participants Total additions
---------- ---------------- --------- ---------- -------------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
PRINCIPAL INVESTMENTS:
Guaranteed Interest Account $3,258 $ -- $ 3,258 $ 12,281 $ 16,694 $ 28,975 $ 32,233
U.S. Stock Account -- 2,766 2,766 18,810 25,323 44,133 46,899
Money Market Account 340 -- 340 22,515 20,653 43,168 43,508
Real Estate Account -- 225 225 1,145 616 1,761 1,986
Bond & Mortgage Account -- 514 514 14,879 20,189 35,068 35,582
International Stock Account -- (1,856) (1,856) 27,906 39,268 67,174 65,318
Government Securities Account -- 68 68 6,881 9,413 16,294 16,362
Stock Index Account -- 714 714 4,843 6,413 11,256 11,970
Value Stock Account -- 911 911 13,446 18,332 31,778 32,689
Small Company Stock Account -- 9,902 9,902 42,558 56,422 98,980 108,882
Growth Stock Account -- 977 977 6,042 8,813 14,855 15,832
Bond Emphasis Balanced
Account -- 440 440 8,001 10,117 18,118 18,558
Stock Emphasis Balanced
Account -- 954 954 10,805 29,056 39,861 40,815
COMPANY STOCK -- 11,125 11,125 50,617 39,568 90,185 101,310
PARTICIPANT NOTES 469 -- 469 -- -- -- 469
------- -------- -------- -------- -------- -------- --------
4,067 26,740 30,807 240,729 300,877 541,606 572,413
------- -------- -------- -------- -------- -------- --------
MASSMUTUAL INVESTMENTS:
Guaranteed Account 253 -- 253 -- -- -- 253
Balanced Fund Account -- (735) (735) -- -- -- (735)
Equity Fund Account -- (502) (502) -- -- -- (502)
Small Company Account -- (1,162) (1,162) -- -- -- (1,162)
------- -------- -------- -------- -------- -------- --------
253 (2,399) (2,146) -- -- -- (2,146)
------- -------- -------- -------- -------- -------- --------
$4,320 $ 24,341 $ 28,661 $240,729 $300,877 $541,606 $570,267
======= ======== ======== ======== ======== ======== ========
Year Ended December 31, 1994
--------------------------------------------------------------------------------------------------
(Deductions)
----------------------------------------------------- Net assets at Net assets at
Participant Admin. Interfund Total Net increase beginning of end of
benefits expenses transfers deductions (decrease) year year
---------- ------------ --------- ----------- ------------ ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
PRINCIPAL INVESTMENTS:
Guaranteed Interest Account $ (5,397) $ (85) $ 49,164 $ 43,682 $ 75,915 $ -- $ 75,915
U.S. Stock Account -- (19) 36,665 36,646 83,545 -- 83,545
Money Market Account -- -- (35,219) (35,219) 8,289 -- 8,289
Real Estate Account -- (6) 4,138 4,132 6,118 -- 6,118
Bond & Mortgage Account -- (20) 25,654 25,634 61,216 -- 61,216
International Stock Account -- (74) 58,345 58,271 123,589 -- 123,589
Government Securities Account -- (16) 5,632 5,616 21,978 -- 21,978
Stock Index Account -- (3) 9,700 9,967 21,667 -- 21,667
Value Stock Account -- (27) 31,928 31,901 64,590 -- 64,590
Small Company Stock Account -- (48) 103,593 103,545 212,427 -- 212,427
Growth Stock Account -- (21) 8,269 8,248 24,080 -- 24,080
Bond Emphasis Balanced
Account -- (21) 17,965 17,944 36,502 -- 36,502
Stock Emphasis Balanced
Account -- (59) 20,847 20,788 61,603 -- 61,603
COMPANY STOCK -- -- 166,197 166,197 267,507 -- 267,507
PARTICIPANT NOTES -- -- 14,067 14,067 14,536 -- 14,536
------- ----- -------- --------- ---------- ---------- ----------
(5,397) (399) 516,945 511,149 1,083,562 -- 1,083,562
------- ----- -------- --------- ---------- ---------- ----------
MASSMUTUAL INVESTMENTS:
Guaranteed Account -- -- (97,779) (97,779) (97,526) 97,526 --
Balanced Fund Account -- -- (128,390) (128,390) (129,125) 129,125 --
Equity Fund Account -- -- (87,717) (87,717) (88,219) 88,219 --
Small Company Account -- -- (203,059) (203,059) (204,221) 204,221 --
------- ----- -------- -------- ---------- -------- --------
-- -- (516,945) (516,945) (519,091) 519,091 --
------- ----- -------- -------- ---------- -------- ----------
$(5,397) $(399) $ -- $ (5,796) $ 564,471 $519,091 $1,083,562
======= ===== ======== ======== ========== ======== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
3
<PAGE>
PETROCORP INCORPORATED 401(K) RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
(unaudited)
NOTE 1 - DESCRIPTION OF PLAN:
The following description of the PetroCorp Incorporated 401(k) Retirement
Savings Plan (the Plan) provides only general information. Participants should
refer to the Plan agreement for a more complete description of the Plan's
provisions.
General
The Plan is a defined contribution 401(k) retirement savings plan, adopted
January 1, 1993. Employees of PetroCorp Incorporated and Fidelity Gas Systems,
Inc., a wholly owned subsidiary, (the Company) become eligible to participate in
the Plan after six months of service with the Company. The entry dates are
January 1 and July 1 of each year. The Plan is subject to the provisions of the
Employee Retirement Income Security Act of 1974 (ERISA).
Effective January 1, 1994, all Plan contributions are invested in separate
pooled accounts under an annuity contract with Principal Mutual Life Insurance
Company (Principal) or in common stock of the Company. Previously, all Plan
contributions were invested in separate pooled accounts under an annuity
contract with Massachusetts Mutual Life Insurance Company (MassMutual). On
March 23, 1994, the total Plan net assets under contract with MassMutual were
transferred to investments with Principal or to common stock of the Company.
Contributions
Participants may contribute to the Plan subject to certain Internal Revenue Code
limitations. The Company may match up to 100 percent of each participant's
contributions not to exceed six (6) percent of each participant's annual
compensation. Additionally, the Company may make discretionary contributions on
behalf of the participants. In any event, total contributions by the
participant and the Company may not exceed 20 percent of the participant's
annual compensation. During 1995 and 1994, each participant could contribute up
to 14 percent of his annual compensation with the Company matching up to six (6)
percent, except in certain cases subject to Internal Revenue Code limitations.
The Plan also allows participants to "rollover" contributions that have been
made to other qualified plans.
Participant accounts
Each participant's account is credited with the participant's contributions, the
Company's contributions and a pro rata share of the earnings of each fund in
which the participant has invested. The benefit to which a participant is
entitled is the benefit that can be provided from the participant's account.
Vesting
Participants are fully vested at all times in their individual contributions and
"rollover" contributions plus actual earnings thereon. Vesting in employer
contributions and related earnings is based on the participant's employment
commencement date and years of continuous service as follows:
4
<PAGE>
If the participant's employment commencement date occurred before January 1,
1994:
Vesting Service Vesting
(whole years) Percentage
- --------------- ----------
Less than 1 year 33%
1 year 66%
2 or more years 100%
If the participant's employment commencement date occurred on or after January
1, 1994:
Vesting Service Vesting
(whole years) Percentage
- --------------- ----------
Less than 1 year 0%
1 year 25%
2 years 50%
3 years 75%
4 or more years 100%
In addition, participants also become fully vested in their employer
contributions and related earnings upon retirement, at or after age 65, or upon
death or total disability of the participant.
Investment options
Effective January 1, 1994, upon enrollment in the Plan, a participant may direct
contributions in any of fourteen investment options as follows:
Guaranteed Interest Account - Funds are invested in a guaranteed investment
contract (GIC) with Principal.
U.S. Stock Account - This is a separate pooled account with Principal in
which the funds are invested in various stocks of U.S. companies with the
intent to earn higher long-term rates of return.
Money Market Account - This is a separate pooled account with Principal in
which the funds are invested in high quality commercial paper with average
maturities kept under 30 days to ensure current money market rates.
Real Estate Account - This is a separate pooled account with Principal in
which the funds are invested in equity investments in modern, developed,
income-producing warehouses, office buildings and retail centers in major
U.S. metropolitan areas. Earnings consist of property value changes and
net rental income.
Bond & Mortgage Account - This is a separate pooled account with Principal
in which the funds are invested in investment grade private placement
bonds, commercial mortgages, public corporate bonds and mortgage-backed
securities, all generally mature within five to 10 years.
International Stock Account - This is a separate pooled account with
Principal in which the funds are invested in stocks of non-U.S. companies
located primarily in Europe and Southeast Asia.
Government Securities Account - This is a separate pooled account with
Principal in which the funds are invested primarily in very high quality
government mortgage-backed securities.
5
<PAGE>
Stock Index Account - This is a separate pooled account with Principal in
which the funds are invested in the same stocks and in the same proportions
as those stocks included in the Standard & Poor's 500 Stock Index.
Value Stock Index - This is a separate pooled account with Principal in
which the funds are invested in primarily income-producing common stocks
that are under valued in the marketplace according to traditional measures
of value.
Small Company Stock - This is a separate pooled account with Principal in
which funds are invested in stocks of smaller, fast-growing companies.
Growth Stock Account - This is a separate pooled account with Principal in
which funds are invested in stocks of large, established companies whose
earnings are expected to grow faster than the average company.
Bond Emphasis Balanced Account - This is a separate pooled account with
Principal in which funds are invested in many asset classes, but emphasizes
fixed income. This account invests 50 to 100 percent of the funds in
Principal fixed-income separate pooled accounts, with the remainder in
Principal equity separate pooled accounts.
Stock Emphasis Balanced Account - This is a separate pooled account with
Principal in which funds are invested in many asset classes, but emphasizes
equities. This account invests 50 to 100 percent of the funds in Principal
equity separate pooled accounts, with the remainder in Principal fixed-
income separate pooled accounts.
Company Stock - Funds are invested in the common stock of the Company.
Payment of benefits
Distribution of the participant's entire account balance becomes due and payable
upon retirement, at or after age 65, or upon death or total disability of the
participant. Such account balances may be distributed either in a lump-sum
distribution or in installments, as described in the Plan agreement. Upon
termination of employment, a participant may elect to receive a lump-sum
distribution equal to the vested balance of the participant's account or
continue to participate in the Plan investments. If the vested balance is less
than $3,500, payment is made as soon as administratively practicable after
termination. Additionally, participants may make hardship withdrawals from
their individual contribution accounts at specified times during the Plan year,
subject to certain restrictions.
Participants' notes receivable
Under the terms of the Plan, with certain restrictions, participants may borrow
from their accounts a minimum of $1,000 up to a maximum of the lessor of $50,000
or 50 percent of their vested account balances. A loan is secured by the vested
balance in the participant's account and bears interest at the prime interest
rate plus two (2) percent. During 1995, the interest rates ranged from 9.75
percent to 11.00 percent. During 1994, the interest rates ranged from 8.75
percent to 9.75 percent.
NOTE 2 - SUMMARY OF ACCOUNTING POLICIES:
Under the Department of Labor Rules and Regulations for Reporting and Disclosure
under ERISA, the Plan files Form 5500-C/R which is required for employee benefit
plans with fewer than 100 participants. Employee benefit plans with 100 or more
participants are required to file Form 5500. Those plans filing Form 5500 are
required to prepare audited financial statements as well as all applicable
schedules required by Section 2520.103-10 of the Department of Labor's Rules and
Regulations for Reporting and Disclosure under ERISA.
6
<PAGE>
Such requirements are not mandated for those plans filing Form 5500-C/R.
Accordingly, the attached financial statements are unaudited and the above
mentioned schedules are not presented.
Method of accounting
The Plan's financial statements are prepared on the accrual basis of accounting.
Investments
Plan investments, other than the GIC's, are stated at fair value. The Company
stock is valued at its quoted market price. Separate pooled accounts are valued
at net asset value representing the value at which units of the account may be
purchased or redeemed.
The Plan's GIC's are valued at contract value. Contract value represents
contributions made under the contract plus interest at the guaranteed rate.
Contributions
Participant contributions are recorded in the period during which the Company
makes payroll deductions from the Plan participants' earnings. Matching Company
contributions are recorded in the same period.
NOTE 3 - INVESTMENTS:
Individual investments representing five (5) percent or more of the Plan's net
assets are as follows:
<TABLE>
<CAPTION>
December 31,
--------------------
1995 1994
--------------------
<S> <C> <C>
INVESTMENTS AT FAIR VALUE AS DETERMINED BY QUOTED
MARKET PRICE:
Pooled separate accounts:
Principal:
U.S. Stock Account $168,427 $ 83,545
Bond & Mortgage Account - 61,216
International Stock Account - 123,589
Value Stock Account 167,408 64,590
Small Company Stock Account 122,732 212,427
Stock Emphasis Balanced Account 320,327 61,603
Company Stock:
PetroCorp Incorporated Common Shares $324,224 $264,728
INVESTMENTS AT CONTRACT VALUE:
Guaranteed Investment Contracts with Principal $111,136 $ 75,915
</TABLE>
7
<PAGE>
The net realized and unrealized appreciation (depreciation) in fair value of
investments included in the statements of changes in net assets available for
Plan benefits were $125,875 and $24,341 for the years ended December 31, 1995
and 1994, respectively, and consisted of the following:
<TABLE>
<CAPTION>
Year ended
December 31,
---------------------
1995 1994
---------------------
<S> <C> <C>
NET APPRECIATION (DEPRECIATION) IN INVESTMENTS AT FAIR VALUE AS
DETERMINED BY QUOTED MARKET PRICE:
Pooled separate accounts:
Principal:
U.S. Stock Account $ 36,402 $ 2,766
Money Market Account 1,111 -
Real Estate Account 405 225
Bond & Mortgage Account 10,592 514
International Stock Account 21,596 (1,856)
Government Securities Account 4,958 68
Stock Index Account 10,503 714
Value Stock Account 31,105 911
Small Company Stock Account 68,373 9,902
Growth Stock Account 14,179 977
Bond Emphasis Balanced Account 7,703 440
Stock Emphasis Balanced Account 15,005 954
MassMutual:
Balanced Fund Account - (735)
Equity Fund Account - (502)
Small Company Account - (1,162)
Company Stock (96,057) 1,125
-------- -------
$125,875 $24,341
======== =======
</TABLE>
NOTE 4 - GUARANTEED INVESTMENT CONTRACTS:
The Plan entered into five-year GIC's with Principal in 1995 and 1994. The
GIC's provide for guaranteed returns of 6.30% and 6.99% on contributions
invested over the five-year terms of the contracts. The GIC's are included in
the financial statements at contract value as reported to the Plan by Principal.
NOTE 5 - PLAN TERMINATION:
Although it has not expressed any intent to do so, the Company has the right
under the Plan to discontinue its contributions at any time and to terminate the
Plan subject to the provisions of ERISA. In the event of Plan termination,
participants will become fully vested in their accounts.
NOTE 6 - INCOME TAX STATUS OF PLAN:
The Company had requested the Internal Revenue Service to determine and inform
the Company that the Plan is designed in accordance with applicable sections of
the Internal Revenue Code. On December 14, 1995, the Internal Revenue Service
notified the Company that they had made a favorable determination on the Plan.
8
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
trustees (or other persons who administer the employee benefit plan) have duly
caused this report to be signed on its behalf by the undersigned thereunto duly
authorized.
PETROCORP INCORPORATED 401(k) RETIREMENT
SAVINGS PLAN
Date: June 27, 1996 /s/ W. N. McBean
---------------------------------------
W. N. McBean
President & CEO of PetroCorp Incorporated
and Trustee
9
