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 June 30, 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 |
Commission File Number: 000-25717
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BETA OIL & GAS, INC. |
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(Exact name of registrant as specified in its charter) |
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Nevada |
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86-0876964 |
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6120 S. Yale, Suite 813, Tulsa, OK |
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74136 |
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(918) 495-1011 |
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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 12-b-2 of the Exchange Act).
Yes o No ý
As of August 1, 2003, the Registrant had 12,429,307 shares of Common Stock, $.001 par value, outstanding.
INDEX
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Condensed Consolidated Balance Sheets as of June 30, 2003 (unaudited) and December 31, 2002 |
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Supplemental Disclosure of Noncash Investing and Financing Activities for the six months ended June 30, 2003 and June 30, 2002 (unaudited) |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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Comparison of Results of Operations for the three months ended June 30, 2003and 2002 |
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Comparison of Results of Operations for the six months ended June 30, 2003 and 2002 |
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PART II. - OTHER INFORMATION |
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2
BETA OIL & GAS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
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JUNE 30, |
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DECEMBER 31, |
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(Unaudited) |
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Current Assets: |
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Cash |
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$ |
2,095,344 |
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$ |
927,313 |
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Accounts receivable |
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Oil and gas sales |
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1,666,798 |
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1,676,935 |
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Other |
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180,583 |
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149,243 |
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Income tax prepaid |
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65,850 |
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52,115 |
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Prepaid expenses |
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285,589 |
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187,818 |
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Total current assets |
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4,294,164 |
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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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72,567,909 |
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70,907,441 |
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Unevaluated properties |
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3,963,274 |
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4,582,605 |
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Less – accumulated amortization of full cost pool |
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(37,444,430 |
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(35,133,445 |
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Net oil and gas properties |
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39,086,753 |
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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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1,507,677 |
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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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249,681 |
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215,302 |
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Less – accumulated depreciation |
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(727,248 |
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(616,865 |
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Net other operating property and equipment |
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1,251,523 |
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1,327,027 |
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Other Assets |
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63,738 |
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76,208 |
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Total Assets |
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$ |
44,696,178 |
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$ |
44,753,260 |
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Current Liabilities: |
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Notes payable |
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$ |
91,546 |
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$ |
70,831 |
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Accounts payable, trade |
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797,303 |
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1,909,226 |
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Dividends payable |
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111,482 |
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112,707 |
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Futures transaction hedge liability |
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95,617 |
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702,417 |
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Other accrued liabilities |
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304,404 |
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275,290 |
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Total current liabilities |
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1,400,352 |
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3,070,471 |
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Long-Term Debt, less current portion (note 6) |
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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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900,062 |
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— |
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Commitments and contingencies (note 7) |
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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 June 30, 2003 and December 31, 2002. Liquidation preference at June 30, 2003 is $5,700,872. |
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604 |
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604 |
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Common stock, $.001 par value; 50,000,000 shares authorized; 12,446,072 shares issued at June 30, 2003 and December 31, 2002, 12,429,307 and 12,440,057 shares outstanding at June 30, 2003 and December 31, 2002, respectively |
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12,447 |
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12,447 |
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Additional paid-in capital |
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52,083,214 |
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51,917,235 |
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Treasury stock, at cost; 16,765 shares and 6,015 shares reacquired at June 30, 2003 and December 31, 2002, respectively |
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(36,408 |
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(28,153 |
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Accumulated other comprehensive loss |
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(95,617 |
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(702,417 |
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Accumulated deficit |
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(23,203,128 |
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(23,151,579 |
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Total stockholders’ equity |
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28,761,112 |
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28,048,137 |
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Total Liabilities and Stockholders’ Equity |
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$ |
44,696,178 |
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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 |
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for the six months ended |
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2003 |
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2002 |
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2003 |
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2002 |
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