<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, 1998
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: (281) 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, 1998 and 1997 2
Statement of Changes in Net Assets Available for Benefits with Fund Information
for the years ended December 31, 1998 and 1997 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, 1998
----------------------------------------------------------------------------
Assets
----------------------------------------------------------------------------
Investments, at fair value
----------------------------------------------------------------------------
Pooled Participant
separate Common notes
accounts stock receivable Total
------------------ ---------------- ----------------- ------------------
<S> <C> <C> <C> <C>
Principal Investments:
Guaranteed Interest Accounts $ - $ - $ - $ -
Money Market Account 124,532 - - 124,532
Government Securities Account 255,653 - - 255,653
Bond & Mortgage Account 101,513 - - 101,513
Bond Emphasis Balanced Account 55,191 - - 55,191
Stock Emphasis Balanced Account 141,783 - - 141,783
Stock Index 500 Account 365,444 - - 365,444
U.S. Stock Account 321,043 - - 321,043
Medium Company Value Account 237,234 - - 237,234
Small Company Blend Account 399,349 - - 399,349
Medium Company Blend Account 201,303 - - 201,303
International Stock Account 224,063 - - 224,063
Real Estate Account 9,759 - - 9,759
Company Stock - 384,857 - 384,857
Participant Notes - - 53,798 53,798
=========== ============= ============= =============
$ 2,436,867 $ 384,857 $ 53,798 $ 2,875,522
=========== ============= ============= =============
December 31, 1998
--------------------------------------------------------------------------------------------
Assets
-------------------------------------------------------
Guaranteed
investment Net assets
contract, at available for
contract value Cash Total Liabilities benefits
---------------- --------------- ------------------ --------------- ------------------
Principal Investments:
Guaranteed Interest Accounts $ 100,775 $ - $ 100,775 $ - $ 100,775
Money Market Account - - 124,532 - 124,532
Government Securities Account - - 255,653 - 255,653
Bond & Mortgage Account - - 101,513 - 101,513
Bond Emphasis Balanced Account - - 55,191 - 55,191
Stock Emphasis Balanced Account - - 141,783 - 141,783
Stock Index 500 Account - - 365,444 - 365,444
U.S. Stock Account - - 321,043 - 321,043
Medium Company Value Account - - 237,234 - 237,234
Small Company Blend Account - - 399,349 - 399,349
Medium Company Blend Account - - 201,303 - 201,303
International Stock Account - - 224,063 - 224,063
Real Estate Account - - 9,759 - 9,759
Company Stock - - 384,857 - 384,857
Participant Notes - - 53,798 - 53,798
========= =============== ================== =============== ==================
$ 100,775 $ - $ 2,976,297 $ - $ 2,976,297
========= =============== ================== =============== ==================
December 31, 1997
-------------------------------------------------------------------------------------
Assets
-------------------------------------------------------------------------------------
Investments, at fair value
----------------------------------------------------------------------------
Pooled Participant
separate Common notes
accounts stock receivable Total
------------------ ---------------- ----------------- ------------------
Principal Investments:
Guaranteed Interest Accounts $ - $ - $ - $ -
Money Market Account 107,100 - - 107,100
Government Securities Account 170,099 - - 170,099
Bond & Mortgage Account 96,881 - - 96,881
Bond Emphasis Balanced Account 54,176 - - 54,176
Stock Emphasis Balanced Account 152,622 - - 152,622
Stock Index 500 Account 154,307 - - 154,307
U.S. Stock Account 270,414 - - 270,414
Medium Company Value Account 221,691 - - 221,691
Small Company Blend Account 489,427 - - 489,427
Medium Company Blend Account 154,028 - - 154,028
International Stock Account 197,150 - - 197,150
Real Estate Account 3,635 - - 3,635
Company Stock - 490,751 - 490,751
Participant Notes - - 60,500 60,500
============= ================ ================= =============
$ 2,071,530 $ 490,751 $ 60,500 $ 2,622,781
============= ================ ================= =============
December 31, 1997
------------------------------------------------------------------------------------------------
Assets
-------------------------------------------------------
Guaranteed
investment Net assets
contract, at available for
contract value Cash Total Liabilities benefits
---------------- --------------- ------------------ --------------- ------------------
Principal Investments:
Guaranteed Interest Accounts $ 137,258 $ - $ 137,258 $ - $ 137,258
Money Market Account - - 107,100 - 107,100
Government Securities Account - - 170,099 - 170,099
Bond & Mortgage Account - - 96,881 - 96,881
Bond Emphasis Balanced Account - - 54,176 - 54,176
Stock Emphasis Balanced Account - - 152,622 - 152,622
Stock Index 500 Account - - 154,307 - 154,307
U.S. Stock Account - - 270,414 - 270,414
Medium Company Value Account - - 221,691 - 221,691
Small Company Blend Account - - 489,427 - 489,427
Medium Company Blend Account - - 154,028 - 154,028
International Stock Account - - 197,150 - 197,150
Real Estate Account - - 3,635 - 3,635
Company Stock - - 490,751 - 490,751
Participant Notes - - 60,500 - 60,500
============ ================ ================= ================== ================
$ 137,258 $ - $ 2,760,039 $ - $ 2,760,039
============ ================ ================= ================== ================
The accompanying notes are an integral part of these financial statements.
2
</TABLE>
<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, 1998
-------------------------------------------------------------------------------------
Additions
-------------------------------------------------------------------------------------
Investment income
---------------------------------------------------
Net appreciation
(depreciation)
in fair value of Contributions
investments --------------------------------
Interest (Note 3) Total Employer Participants
------------- ------------------ --------------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
Principal Investments:
Guaranteed Interest Accounts $ 6,559 $ - $ 6,559 $ 5,001 $ 8,930
Money Market Account - 5,060 5,060 342 2,116
Government Securities Account - 15,794 15,794 3,365 7,634
Bond & Mortgage Account - 7,259 7,259 5,121 10,001
Bond Emphasis Balanced Account - 5,077 5,077 2,122 2,351
Stock Emphasis Balanced Account - 16,832 16,832 5,107 14,092
Stock Index 500 Account - 60,877 60,877 25,471 36,232
U.S. Stock Account - 40,152 40,152 19,046 23,553
Medium Company Value Account - 8,696 8,696 13,333 21,966
Small Company Blend Account - (43,349) (43,349) 30,187 40,969
Medium Company Blend Account - 10,976 10,976 16,495 24,602
International Stock Account - 20,985 20,985 17,611 17,586
Real Estate Account - 437 437 593 708
Company Stock - (143,065) (143,065) 48,655 40,546
Participant Notes 6,330 - 6,330 - -
============= ================== =============== =============== ===============
$ 12,889 $ 5,731 $ 18,620 $ 192,449 $ 251,286
============= ================== =============== =============== ===============
Year ended December 31, 1998
-------------------------------------------------------------------------------------
Additions
---------------------------------
(Deductions)
Contributions --------------------------------------------------
--------------- Total Participant Admin. Interfund
Total additions benefits expenses transfers
--------------- --------------- ----------------- -------------- ---------------
Principal Investments:
Guaranteed Interest Accounts $ 13,931 $ 20,490 $ (47,686) $ (137) $ (9,150)
Money Market Account 2,458 7,518 (17,863) (28) 27,805
Government Securities Account 10,999 26,793 - (53) 58,814
Bond & Mortgage Account 15,122 22,381 (11,495) (46) (6,208)
Bond Emphasis Balanced Account 4,473 9,550 (9,932) (48) 1,445
Stock Emphasis Balanced Account 19,199 36,031 (27,468) (72) (19,330)
Stock Index 500 Account 61,703 122,580 (11,969) (108) 100,634
U.S. Stock Account 42,599 82,751 (18,027) (82) (14,013)
Medium Company Value Account 35,299 43,995 (16,222) (105) (12,125)
Small Company Blend Account 71,156 27,807 (22,423) (112) (95,350)
Medium Company Blend Account 41,097 52,073 (2,047) (113) (2,638)
International Stock Account 35,197 56,182 (27,043) (111) (2,115)
Real Estate Account 1,301 1,738 (477) (5) 4,868
Company Stock 89,201 (53,864) (30,909) - (21,121)
Participant Notes - 6,330 (1,516) - (11,516)
=============== =============== ================= ============== ===============
$ 443,735 $ 462,355 $ (245,077) $ (1,020) $ -
=============== =============== ================= ============== ===============
Year ended December 31, 1998
--------------------------------------------------------------------------------------
(Deductions)
--------------- Net assets at Net assets at
Total Net Increase beginning of end of
deductions (decrease) year year
-------------- ------------ -------------- --------------
Principal Investments:
Guaranteed Interest Accounts $ (56,973) $ (57,483) $ 137,258 $ 100,775
Money Market Account 9,914 17,432 107,100 124,532
Government Securities Account 58,761 85,554 170,099 259,653
Bond & Mortgage Account (17,749) 4,632 96,881 101,513
Bond Emphasis Balanced Account (8,535) 1,015 54,176 55,191
Stock Emphasis Balanced Account (46,870) (10,839) 152,622 141,783
Stock Index 500 Account 88,557 211,137 154,307 365,444
U.S. Stock Account (32,122) 50,629 270,414 321,843
Medium Company Value Account (28,452) 15,543 221,691 237,234
Small Company Blend Account (117,885) (90,078) 489,427 399,349
Medium Company Blend Account (4,798) 47,275 154,028 201,303
International Stock Account (29,269) 26,913 197,150 224,063
Real Estate Account 4,386 6,124 3,635 9,759
Company Stock (52,030) (105,894) 490,751 384,857
Participant Notes (13,032) (6,702) 60,500 53,798
============== =========== =========== ===========
$ (246,097) $ 216,258 $2,760,039 $2,976,297
============== =========== =========== ===========
<PAGE>
Year ended December 31, 1997
--------------------------------------------------------------------------------------
Additions
--------------------------------------------------------------------------------------
Investment income
---------------------------------------------------
Net appreciation
(depreciation)
in fair value of Contributions
investments --------------------------------
Interest (Note 3) Total Employer Participants
------------- ------------------ --------------- --------------- ---------------
Principal Investments:
Guaranteed Interest Accounts $ 8,642 $ - $ 8,642 $ 9,010 $ 16,163
Money Market Account - 5,026 5,026 (132) 3,118
Government Securities Account - 8,265 8,265 2,756 9,024
Bond & Mortgage Account - 8,737 8,737 6,809 11,270
Bond Emphasis Balanced Account - 6,235 6,235 2,283 2,875
Stock Emphasis Balanced Account - 20,899 20,899 4,794 14,233
Stock Index 500 Account - 29,377 29,377 10,823 16,121
U.S. Stock Account - 55,133 55,133 17,085 21,937
Medium Company Value Account - 56,196 56,196 11,176 18,589
Small Company Blend Account - 84,569 84,569 28,427 37,653
Medium Company Blend Account - 29,454 29,454 11,230 18,013
International Stock Account - 23,400 23,400 15,955 16,559
Real Estate Account - 380 380 - -
Company Stock - (46,508) (46,508) 67,691 50,528
Participant Notes 6,892 - 6,892 - -
============= ================== =============== =============== ===============
$ 15,534 $ 281,163 $ 296,697 $ 187,907 $ 236,083
============= ================== =============== =============== ===============
Year ended December 31, 1997
--------------------------------------------------------------------------------------
Additions
----------------------------------
(Deductions)
Contributions ---------------------------------------------------
----------------- Total Participant Admin. Interfund
Total additions benefits expenses transfers
--------------- --------------- ----------------- -------------- ---------------
Principal Investments:
Guaranteed Interest Accounts $ 25,173 $ 33,815 $ (7,902) $ (128) $ (17,043)
Money Market Account 2,986 8,012 (1,093) (25) 8,019
Government Securities Account 11,780 20,045 (6,444) (37) 109,202
Bond & Mortgage Account 18,079 26,816 (1,138) (50) (9,103)
Bond Emphasis Balanced Account 5,158 11,393 - (37) 789
Stock Emphasis Balanced Account 19,027 39,926 (1,566) (56) 17,471
Stock Index 500 Account 26,944 56,321 - (54) 20,671
U.S. Stock Account 39,022 94,155 - (69) (28,146)
Medium Company Value Account 29,765 85,961 (1,768) (82) (8,139)
Small Company Blend Account 66,080 150,649 (1,633) (153) (14,810)
Medium Company Blend Account 29,243 58,697 - (81) (8,486)
International Stock Account 32,514 55,914 (10,128) (120) (31,209)
Real Estate Account - 380 - (4) -
Company Stock 118,219 71,711 (1,025) - (76,231)
Participant Notes - 6,892 - - (12,985)
=============== =============== ================= ============== ===============
$ 423,990 $ 720,687 $ (32,697) $ (896) $ -
=============== =============== ================= ============== ===============
Year ended December 31, 1998
---------------------------------------------------------------------------------------
(Deductions)
--------------- Net assets at Net assets at
Total Net increase beginning of end of
deductions (decrease) year year
-------------- ------------- ------------- --------------
Principal Investments:
Guaranteed Interest Accounts $ (25,073) $ 8,742 $ 128,516 $ 137,258
Money Market Account 6,901 14,913 92,187 107,100
Government Securities Account 102,721 122,766 47,333 170,099
Bond & Mortgage Account (10,291) 16,525 80,356 96,881
Bond Emphasis Balanced Account 752 12,145 42,031 54,176
Stock Emphasis Balanced Account 15,849 55,775 96,847 152,622
Stock Index 500 Account 20,617 76,938 77,369 154,307
U.S. Stock Account (28,215) 65,940 204,474 270,414
Medium Company Value Account (9,989) 75,972 145,719 221,691
Small Company Blend Account (16,596) 134,053 355,374 489,427
Medium Company Blend Account (8,567) 50,130 103,989 154,028
International Stock Account (41,457) 14,457 182,693 197,150
Real Estate Account (3) 377 3,258 3,635
Company Stock (27,256) 44,455 446,296 490,751
Participant Notes (12,985) (6,093) 66,593 60,500
============== ========== =========== ==========
$ (33,592 $ 687,095 $2,077,944 $2,760,039
============== ========== =========== ==========
The accompanying notes are an integral part of these financial statements.
3
</TABLE>
<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 (the Company) become
eligible to participate in the Plan after six months of service with the
Company. The entry date for each employee is the first day of the month
following the sixth month of service. The Plan is subject to the provisions of
the Employee Retirement Income Security Act of 1974 (ERISA).
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.
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 1998 and 1997, 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.
Participant's whose employment commencement date occurred before
4
<PAGE>
January 1, 1994 are 100% vested. Participant's whose employment commencement
date occurred on or after January 1, 1994 are vested as follows:
<TABLE>
<CAPTION>
Vesting Service Vesting
(whole years) Percentage
------------- ----------
<S> <C>
Less than 1 year 0%
1 year 25%
2 years 50%
3 years 75%
4 or more years 100%
</TABLE>
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.
Stock Index 500 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.
Medium Company Value Account - 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 Blend Account - This is a separate pooled account with
Principal in which funds are invested in stocks of smaller, fast-growing
companies.
5
<PAGE>
Medium Company Blend 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 1998, the interest rate for new borrowings
was 10.50 percent. During 1997, the interest rates ranged from 10.25 percent to
10.50 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. 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.
6
<PAGE>
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,
-----------------------------
1998 1997
------- --------
<S> <C> <C>
Investments at fair value as determined by quoted
market price:
Pooled separate accounts:
Principal:
Government Securities Account $ 255,653 $170,099
Stock Emphasis Balanced Account - * 152,622
Stock Index 500 Account 365,444 154,307
U.S. Stock Account 321,043 270,414
Medium Company Value Account 237,234 221,691
Small Company Blend Account 399,349 489,427
Medium Company Blend Account 201,303 154,028
International Stock Account 224,063 197,150
Company Stock:
PetroCorp Incorporated Common Shares $ 384,857 $490,751
Investments at contract value:
Guaranteed Investment Contracts with Principal - * - *
</TABLE>
* less than five (5) percent
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 $5,731 and $281,163 for the years ended December 31, 1998 and
1997, respectively, and consisted of the following:
<TABLE>
<CAPTION>
Year ended
December 31,
----------------------------
1998 1997
------ ------
<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 $ 40,152 $ 55,133
Money Market Account 5,060 5,026
Real Estate Account 437 380
Bond & Mortgage Account 7,259 8,737
International Stock Account 20,985 23,400
Government Securities Account 15,794 8,265
Stock Index 500 Account 60,877 29,377
Medium Company Value Account 8,696 56,196
Small Company Blend Account (43,349) 84,569
Medium Company Blend Account 10,976 29,454
Bond Emphasis Balanced Account 5,077 6,235
Stock Emphasis Balanced Account 16,832 20,899
Company Stock (143,065) (46,508)
---------- --------
$ 5,731 $281,163
========== ========
</TABLE>
NOTE 4 - GUARANTEED INVESTMENT CONTRACTS:
The Plan entered into five-year GIC's with Principal in each of the last five
years. The GIC's provide for guaranteed returns ranging from 6.10% to 7.30% 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 18, 1999 /s/ CRAIG K. TOWNSEND
- ----------------------- --------------------------------------------------
Craig K. Townsend
Vice President - Finance of PetroCorp Incorporated
and Trustee
9
