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 September 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
BETA OIL & GAS, INC.
(Exact name of registrant as specified in its charter)
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Nevada |
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86-0876964 |
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(State of Incorporation) |
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(I.R.S. Employer Identification No.) |
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6120 S. Yale, Suite 813, Tulsa, OK |
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74136 |
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(Address of principal executive offices) |
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(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 12-b-2 of the Exchange Act).
Yes o No ý
As of October 1, 2003, the Registrant had 12,429,307 shares of Common Stock, $.001 par value, outstanding.
INDEX
2
BETA OIL & GAS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
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SEPTEMBER
30, |
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DECEMBER
31, |
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(Unaudited) |
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CURRENT ASSETS: |
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Cash |
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$ |
1,867,497 |
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$ |
927,313 |
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Accounts receivable |
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Oil and gas sales |
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1,691,948 |
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1,676,935 |
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Other |
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212,373 |
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149,243 |
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Income tax prepaid |
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15,062 |
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52,115 |
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Prepaid expenses |
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278,853 |
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187,818 |
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Inventory |
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3,023 |
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— |
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Total current assets |
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4,068,756 |
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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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73,734,174 |
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70,907,441 |
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Unevaluated properties |
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3,904,157 |
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4,582,605 |
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Less – accumulated amortization of full cost pool |
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(38,589,675 |
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(35,133,445 |
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Net oil and gas properties |
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39,048,656 |
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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 and equipment |
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1,492,635 |
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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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251,866 |
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215,302 |
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Less – accumulated depreciation |
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(779,558 |
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(616,865 |
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Net other operating property and equipment |
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1,186,356 |
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1,327,027 |
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OTHER ASSETS |
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283,372 |
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76,208 |
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TOTAL ASSETS |
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$ |
44,587,140 |
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$ |
44,753,260 |
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CURRENT LIABILITIES: |
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Note payable |
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$ |
157,236 |
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$ |
70,831 |
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Accounts payable, trade |
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643,915 |
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1,909,226 |
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Dividends payable |
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112,706 |
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112,707 |
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Futures transaction hedge liability |
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— |
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702,417 |
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Other accrued liabilities |
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307,061 |
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275,290 |
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Total current liabilities |
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1,220,918 |
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3,070,471 |
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LONG-TERM DEBT, less current portion (NOTE 6) |
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13,284,652 |
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13,634,652 |
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ASSET RETIREMENT OBLIGATION (NOTE 3) |
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878,079 |
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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 September 30, 2003 and December 31, 2002. Liquidation preference at September 30, 2003 is $5,702,097 |
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604 |
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604 |
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Common stock, $.001 par value; 50,000,000 shares authorized; 12,446,072 shares issued at September 30, 2003 and December 31, 2002, 12,429,307 and 12,440,057 shares outstanding at September 30, 2003 and December 31, 2002, respectively |
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12,447 |
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12,447 |
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Additional paid-in capital |
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52,128,871 |
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51,917,235 |
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Treasury stock, at cost; 16,765 shares and 6,015 shares reacquired at September 30, 2003 and December 31, 2002, respectively |
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(36,408 |
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(28,153 |
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Accumulated other comprehensive loss |
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— |
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(702,417 |
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Accumulated deficit |
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(22,902,023 |
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(23,151,579 |
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Total stockholders’ equity |
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29,203,491 |
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28,048,137 |
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TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
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$ |
44,587,140 |
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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
NINE 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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