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: January 7, 1999
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)
Registrant's telephone number, including area code:
(205) 325-3800
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Item 5. Other Events
Effective with the third quarter of 1998, Sonat Inc. (the "Company") adopted the
full cost method of accounting for its exploration and production business
segment. The Company's financial statements for the nine and three months ended
September 30, 1998 and 1997 included in the Company's Quarterly Report on Form
10-Q for the quarter ended September 30, 1998 (the "3rd Quarter Form 10-Q")
reflect such method of accounting. The Company has restated prior financial
statements as a result of the conversion to full cost accounting. For the
convenience of investors, set forth below are selected consolidated financial
data of the Company for each of the years 1997, 1996 and 1995, restated to
reflect the adoption of full cost accounting. As described in the Company's 3rd
Quarter Form 10-Q, under the full cost method a "ceiling test" was applied for
each quarter of 1998, which resulted in a reduction in the book value of certain
oil and gas assets and a related charge to income. Under the full cost method,
the "ceiling test" was not applied to restated financial information for years
prior to 1998.
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SELECTED CONSOLIDATED FINANCIAL DATA
Sonat Inc. and Subsidiaries
1997 1996 1995
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(In Millions,
Except Per-Share Amounts)
<S> <C> <C> <C>
Revenues $4,372.5 $3,203.6 $1,902.4
Costs and Expenses 4,000.5 2,771.5 1,626.7
- ---------------------------------------------------------------------------------
Operating Income 372.0 432.1 275.7
Other Income, Net 48.9 35.8 226.1
Interest Expense, Net (97.2) (88.9) (97.1)
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Income before Income Taxes 323.7 379.0 404.7
Income Tax Expense 105.7 123.2 136.2
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Net Income $ 218.0 $ 255.8 $ 268.5
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Earnings Per Share $ 1.98 $ 2.32 $ 2.43
Earnings Per Share-Assuming Dilution $ 1.95 $ 2.29 $ 2.41
Weighted Average Shares
Outstanding (thousands) 110,099 110,370 110,428
Weighted Average Shares Outstanding-
Assuming Dilution (thousands) 111,669 111,722 111,261
Dividend Rate $ 1.08 $ 1.08 $ 1.08
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Assets $5,252.1 $4,362.8 $4,013.3
Debt Maturing within One Year $ 461.2 $ 215.7 $ 241.7
Long-Term Debt 1,236.0 979.7 804.6
Stockholders' Equity 1,961.8 1,887.5 1,736.4
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Total Capitalization $3,659.0 $3,082.9 $2,782.7
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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 hereunto duly authorized.
SONAT INC.
By: /s/ John M. Musgrave
---------------------------------
Name: John M. Musgrave
Title: Treasurer
Dated: January 7, 1999
