UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the Quarter Ended March 31, 2003 |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the Transition Period From to |
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Commission File Number: 000-25717 |
BETA OIL & GAS, INC.
(Exact name of registrant as specified in its charter)
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Nevada |
86-0876964 |
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(State of Incorporation) |
(I.R.S. Employer Identification No.) |
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6120 S. Yale, Suite 813, Tulsa, OK |
74136 |
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(Address of principal executive offices) |
(Zip Code) |
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(918) 495-1011 |
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(Registrant’s telephone number, including area code) |
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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 ý No o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes o No ý
As of May 1, 2003, the Registrant had 12,430,807 shares of Common Stock, $.001 par value, outstanding.
INDEX
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Condensed Consolidated Balance Sheets as of March 31, 2003 (unaudited) and December 31, 2002 |
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Supplemental Disclosure of Noncash Investing and Financing Activities for the three months ending March 31, 2003 and March 31, 2002 (unaudited) |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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Comparison of Results of Operations for the three months ended March 31, 2003 and 2002 |
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PART II. - OTHER INFORMATION |
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2
BETA OIL & GAS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
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MARCH 31, |
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DECEMBER
31, |
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(Unaudited) |
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CURRENT ASSETS: |
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Cash |
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$ |
866,769 |
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$ |
927,313 |
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Accounts receivable |
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Oil and gas sales |
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2,481,413 |
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1,676,935 |
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Other |
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310,304 |
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149,243 |
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Income tax prepaid |
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23,209 |
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52,115 |
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Prepaid expenses |
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116,237 |
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187,818 |
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Total current assets |
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3,797,932 |
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2,993,424 |
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OIL AND GAS PROPERTIES, at cost (full cost method) |
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Evaluated properties |
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72,093,852 |
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70,907,441 |
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Unevaluated properties |
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4,404,225 |
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4,582,605 |
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Less – accumulated amortization of full cost pool |
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(36,220,603 |
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(35,133,445 |
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Net oil and gas properties |
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40,277,474 |
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40,356,601 |
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OTHER OPERATING PROPERTY AND EQUIPMENT, at cost |
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Gas gathering system |
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1,507,177 |
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1,507,177 |
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Support equipment |
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221,413 |
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221,413 |
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Other |
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246,586 |
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215,302 |
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Less – accumulated depreciation |
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(671,106 |
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(616,865 |
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Net other operating property and equipment |
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1,304,070 |
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1,327,027 |
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OTHER ASSETS |
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10,839 |
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76,208 |
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TOTAL ASSETS |
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$ |
45,390,315 |
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$ |
44,753,260 |
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CURRENT LIABILITIES: |
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Current portion of long-term debt |
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$ |
14,251 |
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$ |
70,831 |
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Accounts payable, trade |
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1,778,769 |
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1,909,226 |
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Dividends payable |
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110,256 |
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112,707 |
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Futures transaction hedge liability |
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211,690 |
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702,417 |
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Other accrued liabilities |
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311,304 |
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275,290 |
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Total current liabilities |
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2,426,270 |
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3,070,471 |
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LONG-TERM DEBT, less current portion |
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13,634,652 |
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13,634,652 |
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ASSET RETIREMENT OBLIGATION (NOTE 3) |
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921,949 |
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— |
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COMMITMENTS AND CONTINGENCIES (NOTE 6) |
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STOCKHOLDERS’ EQUITY |
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Preferred stock, $.001 par value, 5,000,000 shares authorized; 604,272 issued and outstanding at March 31, 2003 and December 31, 2002. Liquidation preference at March 31, 2003 is $5,696,496. |
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604 |
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604 |
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Common stock, $.001 par value; 50,000,000 shares authorized; 12,446,072 issued at March 31, 2003 and December 31, 2002, 12,430,807 and 12,440,057 shares outstanding at March 31, 2003 and December 31, 2002, respectively |
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12,447 |
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12,447 |
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Additional paid-in capital |
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51,919,964 |
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51,917,235 |
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Treasury stock, at cost; 15,265 shares and 6,015 shares reacquired at March 31, 2003 and December 31, 2002, respectively |
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(35,264 |
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(28,153 |
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Accumulated other comprehensive loss |
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(211,690 |
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(702,417 |
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Accumulated deficit |
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(23,278,617 |
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(23,151,579 |
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Total stockholders’ equity |
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28,407,444 |
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28,048,137 |
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TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
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$ |
45,390,315 |
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$ |
44,753,260 |
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The accompanying notes are an integral part of these condensed consolidated financial statements
3
BETA OIL & GAS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
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FOR THE THREE MONTHS ENDED MARCH 31, |
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2003 |
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2002 |
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REVENUES: |
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Oil and gas sales |
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$ |
2,893,347 |
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$ |
2,259,513 |
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Field services |
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207,888 |
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83,739 |
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Total revenue |
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3,101,235 |
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