<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, 1999
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
6733 South Yale Avenue
Tulsa, Oklahoma 74136
(Name of Issuer of the Securities Held Pursuant to the Plan and Address of
Principal Executive Offices)
Registrant's Telephone Number, Including Area Code: (918) 491-4500
<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, 1999 and 1998 2
Statement of Changes in Net Assets Available for Benefits with Fund Information
for the years ended December 31, 1999 and 1998 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, 1999
---------------------------------------------------------------------------------------
Assets
---------------------------------------------------------------------------
Investments, at fair value Guaranteed
---------------------------------------------------------
Pooled Participant investment
separate Common notes contract, at
accounts stock receivable Total contract value
------------- ----------- ------------- ----------- ----------------
<S> <C> <C> <C> <C> <C>
Principal Investments:
Guaranteed Interest Accounts $ -- $ -- $ -- $ -- $ 107,546
Money Market Account 215,508 -- -- 215,508 --
Government Securities Account 196,924 -- -- 196,924 --
Bond & Mortgage Account 62,123 -- -- 62,123 --
Bond Emphasis Balanced Account 21,372 -- -- 21,372 --
Stock Emphasis Balanced Account 127,550 -- -- 127,550 --
Stock Index 500 Account 495,204 -- -- 495,204 --
U.S. Stock Account 292,603 -- -- 292,603 --
Medium Company Value Account 133,491 -- -- 133,491 --
Small Company Blend Account 265,913 -- -- 265,913 --
Medium Company Blend Account 155,481 -- -- 155,481 --
International Stock Account 200,105 -- -- 200,105 --
Real Estate Account 4,596 -- -- 4,596 --
Company Stock -- 98,110 -- 98,110 --
Participant Notes -- -- 22,259 22,259 --
---------- -------- -------- ----------- ----------
$2,170,870 $ 98,110 $ 22,259 $ 2,291,239 $ 107,546
========== ======== ======== =========== ==========
<CAPTION>
-------------------------------------------------------------
-------------------------
Net assets
available for
Cash Total Liabilities benefits
-------- ------------ -------------- ---------------
<S> <C> <C> <C> <C>
Principal Investments:
Guaranteed Interest Accounts $ -- $ 107,546 $ -- $ 107,546
Money Market Account -- 215,508 -- 215,508
Government Securities Account -- 196,924 -- 196,924
Bond & Mortgage Account -- 62,123 -- 62,123
Bond Emphasis Balanced Account -- 21,372 -- 21,372
Stock Emphasis Balanced Account -- 127,550 -- 127,550
Stock Index 500 Account -- 495,204 -- 495,204
U.S. Stock Account -- 292,603 -- 292,603
Medium Company Value Account -- 133,491 -- 133,491
Small Company Blend Account -- 265,913 -- 265,913
Medium Company Blend Account -- 155,481 -- 155,481
International Stock Account -- 200,105 -- 200,105
Real Estate Account -- 4,596 -- 4,596
Company Stock -- 98,110 -- 98,110
Participant Notes -- 22,259 -- 22,259
----- ----------- ---- ----------
$ -- $ 2,398,785 $ -- $2,398,785
===== =========== ==== ==========
</TABLE>
<TABLE>
<CAPTION>
December 31, 1998
---------------------------------------------------------------------------------------
Assets
---------------------------------------------------------------------------
Investments, at fair value Guaranteed
---------------------------------------------------------
Pooled Participant investment
separate Common notes contract, at
accounts stock receivable Total contract value
------------- ----------- ------------- ----------- ----------------
<S> <C> <C> <C> <C> <C>
Principal Investments:
Guaranteed Interest Accounts $ -- $ -- $ -- $ -- $ 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 --
----------- ---------- ---------- ----------- ----------
$ 2,436,867 $ 384,857 $ 53,798 $ 2,875,522 $ 100,775
=========== ========== ========== =========== ==========
<CAPTION>
-------------------------------------------------------------
---------------------------------
Net assets
available for
Cash Total Liabilities benefits
-------- ------------ -------------- ---------------
<S> <C> <C> <C> <C>
Principal Investments:
Guaranteed Interest Accounts $ -- $ 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
------ ----------- ----- ------------
$ -- $ 2,976,297 $ -- $ 2,976,297
====== =========== ===== ============
</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, 1999
----------------------------------------------------------------------------------------
Additions
----------------------------------------------------------------------------------------
Investment income
-------------------------------------------
Net appreciation
(depreciation)
in fair value of
investments Contributions
--------------------------------------------
Interest (Note 3) Total Employer Participants Total
------------ ----------------- ------------ --------------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Principal Investments:
Guaranteed Interest Accounts $ 5,716 $ - $ 5,716 $ 5,809 $ 7,963 $ 13,772
Money Market Account - 9,456 9,456 11,385 11,868 23,253
Government Securities Account - (139) (139) 4,402 7,188 11,590
Bond & Mortgage Account - (348) (348) 6,173 8,813 14,986
Bond Emphasis Balanced Account - 2,187 2,187 2,577 2,154 4,731
Stock Emphasis Balanced Account - 10,622 10,622 6,945 14,795 21,740
Stock Index 500 Account - 82,223 82,223 40,326 56,920 97,246
U.S. Stock Account - 22,751 22,751 21,293 23,532 44,825
Medium Company Value Account - (11,239) (11,239) 11,109 15,327 26,436
Small Company Blend Account - 32,701 32,701 20,477 27,372 47,849
Medium Company Blend Account - 22,344 22,344 16,603 21,996 38,599
International Stock Account - 46,262 46,262 18,211 15,914 34,125
Real Estate Account - 748 748 780 599 1,379
Company Stock - 6,225 6,225 30,856 33,867 64,723
Participant Notes 4,081 - 4,081 - - -
------------ ----------------- ------------ --------------- -------------- -------------
$ 9,797 $ 223,793 $ 233,590 $ 196,946 $ 248,308 $ 445,254
============ ================= ============ =============== ============== =============
<CAPTION>
(Deductions)
-------------------------------------------------------------
Total Participant Admin. Interfund Total
additions benefits expenses transfers deductions
------------- -------------- ---------------- ------------- ---------------
<S> <C> <C> <C> <C> <C>
Principal Investments:
Guaranteed Interest Accounts $ 19,488 $ (11,901) $ (119) $ (697) $ (12,717)
Money Market Account 32,709 (234,756) (72) 293,095 58,267
Government Securities Account 11,451 (20,206) (53) (49,921) (70,180)
Bond & Mortgage Account 14,638 (27,405) (22) (26,601) (54,028)
Bond Emphasis Balanced Account 6,918 (21,178) (16) (19,543) (40,737)
Stock Emphasis Balanced Account 32,362 (31,510) (67) (15,018) (46,595)
Stock Index 500 Account 179,469 (148,356) (76) 98,723 (49,709)
U.S. Stock Account 67,576 (99,015) (45) 3,044 (96,016)
Medium Company Value Account 15,197 (49,827) (60) (69,053) (118,940)
Small Company Blend Account 80,550 (110,154) (46) (103,786) (213,986)
Medium Company Blend Account 60,943 (63,495) (51) (43,219) (106,765)
International Stock Account 80,387 (78,333) (74) (25,938) (104,345)
Real Estate Account 2,127 (6,673) (1) (616) (7,290)
Company Stock 70,948 (248,736) - (108,959) (357,695)
Participant Notes 4,081 (104,109) - 68,489 (35,620)
------------- -------------- ---------------- ------------- ---------------
$ 678,844 $ (1,255,654) $ (702) $ - $ (1,256,356)
============= ============== ================ ============= ===============
<CAPTION>
Net assets at Net assets at
Net increase beginning of end of
(decrease) year year
------------- -------------- ----------------
<S> <C> <C> <C>
Principal Investments:
Guaranteed Interest Accounts $ 6,771 $ 100,775 $ 107,546
Money Market Account 90,976 124,532 215,508
Government Securities Account (58,729) 255,653 196,924
Bond & Mortgage Account (39,390) 101,513 62,123
Bond Emphasis Balanced Account (33,819) 55,191 21,372
Stock Emphasis Balanced Account (14,233) 141,783 127,550
Stock Index 500 Account 129,760 365,444 495,204
U.S. Stock Account (28,440) 321,043 292,603
Medium Company Value Account (103,743) 237,234 133,491
Small Company Blend Account (133,436) 399,349 265,913
Medium Company Blend Account (45,822) 201,303 155,481
International Stock Account (23,958) 224,063 200,105
Real Estate Account (5,163) 9,759 4,596
Company Stock (286,747) 384,857 98,110
Participant Notes (31,539) 53,798 22,259
------------- -------------- ----------------
$ (577,512) $ 2,976,297 $ 2,398,785
============= ============== ================
</TABLE>
<TABLE>
<CAPTION>
Year ended December 31, 1998
----------------------------------------------------------------------------------------
Additions
----------------------------------------------------------------------------------------
Investment income
-------------------------------------------
Net appreciation
(depreciation)
in fair value of
investments Contributions
--------------------------------------------
Interest (Note 3) Total Employer Participants Total
------------ ----------------- ------------ --------------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Principal Investments:
Guaranteed Interest Accounts $ 6,559 $ - $ 6,559 $ 5,001 $ 8,930 $ 13,931
Money Market Account - 5,060 5,060 342 2,116 2,458
Government Securities Account - 15,794 15,794 3,365 7,634 10,999
Bond & Mortgage Account - 7,259 7,259 5,121 10,001 15,122
Bond Emphasis Balanced Account - 5,077 5,077 2,122 2,351 4,473
Stock Emphasis Balanced Account - 16,832 16,832 5,107 14,092 19,199
Stock Index 500 Account - 60,877 60,877 25,471 36,232 61,703
U.S. Stock Account - 40,152 40,152 19,046 23,553 42,599
Medium Company Value Account - 8,696 8,696 13,333 21,966 35,299
Small Company Blend Account - (43,349) (43,349) 30,187 40,969 71,156
Medium Company Blend Account - 10,976 10,976 16,495 24,602 41,097
International Stock Account - 20,985 20,985 17,611 17,586 35,197
Real Estate Account - 437 437 593 708 1,301
Company Stock - (143,065) (143,065) 48,655 40,546 89,201
Participant Notes 6,330 - 6,330 - - -
------------ ----------------- ------------ --------------- -------------- -------------
$ 12,889 $ 5,731 $ 18,620 $ 192,449 $ 251,286 $ 443,735
============ ================= ============ =============== ============== =============
<CAPTION>
(Deductions)
-------------------------------------------------------------
Total Participant Admin. Interfund Total
additions benefits expenses transfers deductions
------------- -------------- ---------------- ------------- ---------------
<S> <C> <C> <C> <C> <C>
Principal Investments:
Guaranteed Interest Accounts $ 20,490 $ (47,686) $ (137) $ (9,150) $ (56,973)
Money Market Account 7,518 (17,863) (28) 27,805 9,914
Government Securities Account 26,793 - (53) 58,814 58,761
Bond & Mortgage Account 22,381 (11,495) (46) (6,208) (17,749)
Bond Emphasis Balanced Account 9,550 (9,932) (48) 1,445 (8,535)
Stock Emphasis Balanced Account 36,031 (27,468) (72) (19,330) (46,870)
Stock Index 500 Account 122,580 (11,969) (108) 100,634 88,557
U.S. Stock Account 82,751 (18,027) (82) (14,013) (32,122)
Medium Company Value Account 43,995 (16,222) (105) (12,125) (28,452)
Small Company Blend Account 27,807 (22,423) (112) (95,350) (117,885)
Medium Company Blend Account 52,073 (2,047) (113) (2,638) (4,798)
International Stock Account 56,182 (27,043) (111) (2,115) (29,269)
Real Estate Account 1,738 (477) (5) 4,868 4,386
Company Stock (53,864) (30,909) - (21,121) (52,030)
Participant Notes 6,330 (1,516) - (11,516) (13,032)
------------- -------------- ---------------- ------------- ---------------
$ 462,355 $ (245,077) $ (1,020) $ - $ (246,097)
============= ============== ================ ============= ===============
<CAPTION>
Net assets at Net assets at
Net increase beginning of end of
(decrease) year year
------------- -------------- ----------------
<S> <C> <C> <C>
Principal Investments:
Guaranteed Interest Accounts $ (36,483) $ 137,258 $ 100,775
Money Market Account 17,432 107,100 124,532
Government Securities Account 85,554 170,099 255,653
Bond & Mortgage Account 4,632 96,881 101,513
Bond Emphasis Balanced Account 1,015 54,176 55,191
Stock Emphasis Balanced Account (10,839) 152,622 141,783
Stock Index 500 Account 211,137 154,307 365,444
U.S. Stock Account 50,629 270,414 321,043
Medium Company Value Account 15,543 211,691 237,234
Small Company Blend Account (90,078) 489,427 399,349
Medium Company Blend Account 47,275 154,028 201,303
International Stock Account 26,913 197,150 224,063
Real Estate Account 6,124 3,635 9,759
Company Stock (105,894) 490,751 384,857
Participant Notes (6,702) 60,500 53,798
------------- -------------- ----------------
$ 216,258 $ 2,760,039 $ 2,976,297
============= ============== ================
</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 (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 1999 and 1998, 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.
Participants whose employment commencement date occurred before
4
<PAGE>
January 1, 1994 are 100% vested. Participants whose employment commencement
date occurred on or after January 1, 1994 are vested as follows:
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.
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
5
<PAGE>
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.
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 1999, the interest rate for new borrowings
ranged from 9.75 percent to 10.00 percent. During 1998, interest rates were
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.
6
<PAGE>
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:
December 31,
--------------------
1999 1998
--------------------
Investments at fair value as determined by quoted
Market price:
Pooled separate accounts:
Principal:
Government Securities Account $196,924 $255,653
Stock Emphasis Balanced 127,550 141,783
Stock Index 500 Account 495,204 365,444
U.S. Stock Account 292,603 321,043
Medium Company Value Account 133,491 237,234
Small Company Blend Account 265,913 399,349
Medium Company Blend Account 155,481 201,303
International Stock Account 200,105 224,063
Company Stock:
PetroCorp Incorporated Common Shares $ - * $384,857
Investments at contract value:
Guaranteed Investment Contracts with Principal - * - *
* 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 $223,793 and $5,731 for the years ended December 31, 1999 and
1998, respectively, and consisted of the following:
<TABLE>
<CAPTION>
Year ended
December 31,
-------------------------
1999 1998
-------------------------
<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 $ 22,751 $ 40,152
Money Market Account 9,456 5,060
Real Estate Account 748 437
Bond & Mortgage Account (348) 7,259
International Stock Account 46,262 20,985
Government Securities Account (139) 15,794
Stock Index 500 Account 82,223 60,877
Medium Company Value Account (11,239) 8,696
Small Company Blend Account 32,701 (43,349)
Medium Company Blend Account 22,344 10,976
Bond Emphasis Balanced Account 2,187 5,077
Stock Emphasis Balanced Account 10,622 16,832
Company Stock 6,225 (143,065)
--------- ---------
$ 223,793 $ 5,731
========= =========
</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 4.9% to 6.3% 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:
The Company plans to terminate the Plan effective May 31, 2000, subject to the
provisions of ERISA. At the time of Plan termination, participants will become
fully vested in their accounts. During the winding up phase, anticipated to be
12 months, Plan assets will be distributed to participants at their election.
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 28, 2000 /s/ STEVEN R. BERLIN
------------------- ------------------------------------
Steven R. Berlin
Chief Financial Officer of PetroCorp Incorporated
and Trustee
9
