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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 10-Q

 

 

(Mark one)

 

x   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                   OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended March 31, 2003

 

OR

 

¨   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
                   OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from              to             

 

Commission file number 1-14344

 

 

PATINA OIL & GAS CORPORATION

(Exact name of registrant as specified in its charter)

 

 

Delaware

  

75-2629477

(State or other jurisdiction of
incorporation or organization)

  

(IRS Employer
Identification No.)

1625 Broadway Denver, Colorado

  

80202

(Address of principal executive offices)

  

(zip code)

 

Registrant’s telephone number, including area code (303) 389-3600

 

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of class

  

Name of exchange on which listed

Common Stock, $.01 par value

  

New York Stock Exchange

 

Securities registered pursuant to Section 12(g) of the Act:

 

None

 

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨.

 

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).    Yes  x    No  ¨.

 

There were 27,337,117 shares of common stock outstanding on May 1, 2003, exclusive of 1,093,113 common shares held in treasury stock.

 

 

PART I. FINANCIAL INFORMATION

 

The financial statements included herein have been prepared in conformity with generally accepted accounting principles. The statements are unaudited but reflect all adjustments, which, in the opinion of management, are necessary to fairly present the Company’s financial position and results of operations. All such adjustments are of a normal recurring nature.

 

2

PATINA OIL & GAS CORPORATION

 

CONSOLIDATED BALANCE SHEETS

(In thousands except share data)

 

    

December 31, 2002

     

March 31, 2003

  
           

(Unaudited)

  

ASSETS

                  

Current assets

                  

Cash and equivalents

   

$

1,920

 

   

$

1,705

 

Accounts receivable

   

 

33,555

 

   

 

50,124

 

Inventory and other

   

 

5,453

 

   

 

9,304

 

Deferred income taxes

   

 

—  

 

   

 

8,803

 

Unrealized hedging gains

   

 

8,294

 

   

 

5,011

 

    
  
    

 

49,222

 

   

 

74,947

 

    
  

Unrealized hedging gains

   

 

15,558

 

   

 

11,822

 

Oil and gas properties, successful efforts method

   

 

1,104,205

 

   

 

1,223,750

 

Accumulated depletion, depreciation and amortization

   

 

(466,947

)

   

 

(486,482

)

    
  
    

 

637,258

 

   

 

737,268

 

    
  

Field equipment and other

   

 

12,194

 

   

 

13,611

 

Accumulated depreciation

   

 

(5,087

)

   

 

(5,495

)

    
  
    

 

7,107

 

   

 

8,116

 

    
  

Other assets

   

 

9,945

 

   

 

6,918

 

    
  
    

$

719,090

 

   

$

839,071

 

    
  

LIABILITIES AND STOCKHOLDERS’ EQUITY

                  

Current liabilities

                  

Accounts payable

   

$

41,773

 

   

$

54,548

 

Accrued liabilities

   

 

14,298

 

   

 

12,233

 

Unrealized hedging losses

   

 

13,001

 

   

 

28,176

 

    
  
    

 

69,072

 

   

 

94,957

 

    
  

Senior debt

   

 

200,000

 

   

 

246,000

 

Deferred income taxes

   

 

96,569

 

   

 

104,751

 

Other noncurrent liabilities

   

 

15,012

 

   

 

37,675

 

Unrealized hedging losses

   

 

1,787

 

   

 

6,441

 

Deferred compensation liability

   

 

38,070

 

   

 

41,885

 

Commitments and contingencies

                  

Stockholders’ equity

                  

Preferred Stock, $.01 par, 5,000,000 shares authorized, none issued

   

 

—  

 

   

 

—  

 

Common Stock, $.01 par, 125,000,000 shares authorized, 28,129,786 and 28,379,160 shares issued

   

 

281

 

   

 

284

 

Less Common Stock Held in Treasury, at cost, 1,036,271 and 1,093,113 shares

   

 

(6,817

)

   

 

(8,757

)

Capital in excess of par value

   

 

175,608

 

   

 

180,876

 

Retained earnings

   

 

123,707

 

   

 

145,986

 

Accumulated other comprehensive income (loss)

   

 

5,801

 

   

 

(11,027

)

    
  
    

 

298,580

 

   

 

307,362

 

    
  
    

$

719,090

 

   

$

839,071

 

    
  

 

The accompanying notes are an integral part of these financial statements.

 

3

PATINA OIL & GAS CORPORATION

 

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands except per share data)

 

    

Three Months  Ended March 31,

  
    

2002

   

2003

  
    

(Unaudited)

  

Revenues

                

Oil and gas sales

   

$

48,008

   

$

89,530

 

Other

   

 

3,878

   

 

437

 

    
  
    

 

51,886

   

 

89,967

 

    
  

Expenses

                

Lease operating

   

 

7,154

   

 

10,698

 

Production taxes

   

 

2,056

   

 

6,485

 

Exploration

   

 

164

   

 

1,133

 

General and administrative

   

 

2,593

   

 

4,446

 

Interest and other

   

 

634

   

 

2,165

 

Deferred compensation adjustment

   

 

4,317

   

 

1,058

 

Depletion, depreciation and amortization

   

 

14,795

   

 

21,087

 

    
  
    

 

31,713

   

 

47,072

 

    
  

Pre-tax income

   

 

20,173

   

 

42,895

 

    
  

Provision for income taxes

                

Current

   

 

2,745

   

 

6,113

 

Deferred

   

 

4,351

   

 

10,187

 

    
  
    

 

7,096

   

 

16,300

 

    
  

Net income before change in accounting principle

   

 

13,077

   

 

26,595

 

Cumulative effect of change in accounting principle, net of tax

   

 

—  

   

 

(2,613

)

    
  

Net income

   

$

13,077

   

$

23,982

 

    
  

Net income per share before change in accounting principle

                

Basic

   

$

0.51

   

$

0.98

 

    
  

Diluted

   

$

0.48

   

$

0.94

 

    
  

Net loss per share from cumulative effect of change in accounting principle

                

Basic

   

$

—  

   

$

(0.10

)

    
  

Diluted

   

$

—  

   

$

(0.10

)

    
  

Net income per share

                

Basic

   

$

0.51

   

$

0.88

 

    
  

Diluted

   

$

0.48

   

$

0.84

 

    
  

Weighted average shares outstanding

                

Basic

   

 

25,812

   

 

27,155

 

    
  

Diluted

   

 

27,098

   

 

28,421

 

    
  

 

The accompanying notes are an integral part of these financial statements.

 

4

PATINA OIL & GAS CORPORATION

 

CONSOLIDATED STATEMENTS OF CHANGES IN

STOCKHOLDERS’ EQUITY AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

(In thousands)

(Unaudited)

 

    

Preferred Stock Amount

   

Common Stock

     

Treasury Stock

     

Capital in Excess of Par Value

     

Retained Earnings

     

Accumulated Other Comprehensive Income
(Loss)

     

Total

  
     

Shares

     

Amount

                 

Balance, December 31, 2001

   

$

—  

   

26,553

 

   

$

266

 

   

$

(5,866

)

   

$

146,300

 

   

$

71,513

 

   

$

37,361

 

   

$

249,574

 

Repurchase of common

   

 

—  

   

—  

 

   

 

—  

 

   

 

—  

 

   

 

(9

)

   

 

—  

 

   

 

—  

 

   

 

(9

)

Issuance of common stock

   

 

—  

   

1,577