SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
Form 8-K
Current Report
Pursuant to section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of earliest event reported: May 25, 1995
SONAT INC.
(Exact name of registrant as specified in its charter)
Delaware 1-7179 63-0647939
(State of (Commission (IRS Employer
Incorporation) File Number) Identification
No.)
AmSouth-Sonat Tower
Birmingham, Alabama 35203
(Address of Principal Executive Offices) (Zip Code)
Registrants's telephone number, including area code:
205-325-3800
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Item 5. Other events
On May 25, 1995, Sonat Inc. announced its intention to dispose of
certain assets and securities as described more fully on Exhibit 99 filed
herewith, which is incorporated herein by reference.
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SIGNATURE
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 hereunto duly authorized.
SONAT INC.
By James A. Rubright
James A. Rubright
Senior Vice President and
General Counsel
Dated: June 5, 1995
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EXHIBIT INDEX
Exhibit
No. Exhibit
Ex. 99 Press Release of Sonat Inc. dated May 25, 1995
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Ex. 99
Bruce L. Connery FOR RELEASE: May 25, 1995
205 325 3898
Thomas W. Barker, Jr.
205 325 3586
SONAT ANNOUNCES INTENTION TO SELL ITS BAKER
HUGHES CONVERTIBLE PREFERRED STOCK AND CERTAIN
E&P PROPERTIES AND THAT ATLANTA GAS LIGHT
COMPANY HAS INVESTED IN SONAT MARKETING
COMPANY
BIRMINGHAM, Ala. -- Ronald L. Kuehn, Jr.,
chairman,president and chief executive officer of Sonat Inc. (NYSE:
SNT),today announced that the Board of Directors of the Company
has approved an agreement to sell back to Baker Hughes Incorporated
for $167 million the 4,000,000 shares of Baker Hughes convertible
preferred stock that Sonat received as partial consideration for its sale
of Teleco Oilfield Services Inc. to Baker Hughes in 1992. This
transaction will close on June 15, and will result in an $8 million loss
after tax.
Sonat also announced today that its Board of Directors
approved the sale by its wholly owned Sonat Exploration Company
subsidiary of producing oil and natural gas properties totaling
approximately $84 million during the second quarter. These sales are
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part of an ongoing program by Sonat Exploration to sell properties
that are no longer strategic. Sonat Exploration also expects that
certain gas sales contracts will be terminated during the second
quarter, resulting in an income gain that will substantially offset the
loss of approximately $19 million after tax from the property sales.
The cash proceeds from the sale of the Baker Hughes stock and
oil and natural gas properties will be used to reduce the level of the
Company's floating rate debt and to fund its exploration and
production acquisition and development drilling activities.
Sonat also announced that it has entered into a memorandum
of understanding with Atlanta Gas Light Company (AGL) under which
AGL would acquire a 35% interest in Sonat's wholly owned subsidiary,
Sonat Marketing Company. The acquisition price of $32 million will
result in a pretax gain to Sonat of approximately $23 million, which
Sonat will defer for a five-year period during which AGL will have
certain rights to sell its interest back to Sonat pursuant to a formula
price.
Sonat, headquartered in Birmingham, is an integrated oil and
natural gas company engaged in exploration and production of oil and
natural gas and in natural gas transmission and marketing.
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95-10
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