UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q/A
AMENDMENT NO. 1
/X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended JUNE 30, 1999
/ / 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 001-13171
EVERGREEN RESOURCES, INC.
(Exact name of registrant as specified in its charter)
COLORADO 84-0834147
--------------------------------- -------------------------------
(State or Other Jurisdiction (I.R.S. Employer Identification
of Incorporation or Organization) Number)
1401 17TH STREET SUITE 1200
DENVER, COLORADO 80202
--------------------------------- -------------------------------
(Address of Principal Executive (Zip Code)
Offices)
Registrant's Telephone Number, Including Area Code (303) 298-8100
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. X YES NO
----- -----
As of July 29, 1999, 14,429,971 shares of the Registrant's Common Stock, no
par value, were outstanding.
EVERGREEN RESOURCES, INC.
INDEX
Page
Number
------
PART I. FINANCIAL INFORMATION
Notes to Consolidated Financial Statements.......................... 3 - 11
Management's Discussion and Analysis of Financial
Condition and Results of Operations............................... 12
2
The Quarterly Report of Form 10-Q for the quarterly period ended June 30,
1999 of Evergreen Resources, Inc. ("the Company") is amended by this Form
10-Q/A, Amendment No. 1 to such report, by (i) adding to the end of Part I,
Item 1, Financial Statements, Note 6 to Notes to Consolidated Financial
Statements as of June 30, 1999 (Unaudited), as set forth herein, and (ii)
adding to the end of Part I, Item 2, Management's Discussion and Analysis of
Financial Condition and Results of Operations, a new paragraph under the
caption "Subsidiary Guarantors," as set forth herein.
PART I
Item 1. FINANCIAL STATEMENTS
EVERGREEN RESOURCES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 1999
(UNAUDITED)
6. Subsidiary Guarantors
In May 1999, the Company filed a Shelf Registration Statement with the
Securities and Exchange Commission with an aggregate offering amount of up
to $150 million. The Shelf Registration Statement provided for the
offering to the public from time to time of (a) debt securities of the
Company, which may be wholly and unconditionally guaranteed by certain
wholly-owned subsidiaries of the Company (the "Subsidiary Guarantors"),
(b) common stock of the Company, (c) preferred stock of the Company, (d)
depositary shares representing fractional interests in shares of the
Company's preferred stock, (e) warrants to purchase the Company's debt
securities, preferred stock or common stock and/or (f) subscription rights
to purchase any of the foregoing securities. The Company has not issued
any debt securities under the Shelf Registration Statement. However,
because of the potential for a guarantee of debt securities by the
Subsidiary Guarantors, the Company has presented the following condensed
consolidating financial data with respect to (i) the Company on a
stand-alone basis, (ii) the Subsidiary Guarantors as a group, (iii) the
non-guarantor subsidiaries of the Company as a group, (iv) elimination
entries for purposes of consolidation and (v) the Company and all of its
subsidiaries combined. The Company has not presented separate financial
statements for each of the Subsidiary Guarantors because it believes that
such information is not material to potential investors. All significant
intercompany balances and transactions have been eliminated in
consolidation. The Subsidiary Guarantors are not subject to any
restrictions on their ability to pay dividends to the Company.
3
CONSOLIDATING BALANCE SHEETS
JUNE 30, 1999
(IN 000'S)
(UNAUDITED)
COMBINED
COMBINED NON-
PARENT GUARANTOR GUARANTOR
ASSETS COMPANY SUBSIDIARIES SUBSIDIARIES ELIMINATIONS CONSOLIDATED
- ------ ------- ------------ ------------ ------------ ------------
CURRENT:
Cash and cash equivalents $ 2,553 $ 23 $ 36 $ -- $ 2,612
Accounts receivable 576 3,356 72 -- 4,004
Other current assets 534 410 20 -- 964
--------- --------- --------- --------- ---------
TOTAL CURRENT ASSETS 3,663 3,789 128 -- 7,580
--------- --------- --------- --------- ---------
PROPERTY AND EQUIPMENT 106,582 53,230 10,436 -- 170,248
Less accumulated depreciation, depletion and
amortization 18,224 3,666 1 -- 21,891
--------- --------- --------- --------- ---------
NET PROPERTY AND EQUIPMENT 88,358 49,564 10,435 -- 148,357
--------- --------- --------- --------- ---------
DESIGNATED CASH -- 1,946 -- -- 1,946
INVESTMENT IN SUBSIDIARIES 12,253 5,094 -- (17,347) --
OTHER ASSETS 1,516 53 5 -- 1,574
DUE TO (FROM) PARENT AND AFFILIATES 48,235 (37,112) (11,123) -- --
--------- --------- --------- --------- ---------
$ 154,025 $ 23,334 $ (555) $ (17,347) $ 159,457
--------- --------- --------- --------- ---------
--------- --------- --------- --------- ---------
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 687 $ 2,132 $ 58 $ -- $ 2,877
Amounts payable to oil and gas property owners -- 1,388 -- -- 1,388
Accrued expenses and other 1,091 211 57 -- 1,359
Current portion - capital leases -- -- -- -- --
--------- --------- --------- --------- ---------
TOTAL CURRENT LIABILITIES 1,778 3,731 115 -- 5,624
PRODUCTION TAXES PAYABLE -- 1,946 -- -- 1,946
DEFERRED INCOME TAX LIABILITY 4,471 -- -- -- 4,471
--------- --------- --------- --------- ---------
TOTAL LIABILITIES 6,249 5,677 115 -- 12,041
--------- --------- --------- --------- ---------
STOCKHOLDERS' EQUITY:
Common stock 144 100 -- (100) 144
Partnership capital -- 10,190 -- (10,190) --
Additional paid-in capital 144,700 -- -- 20 144,720
Retained earnings 2,932 7,367 (290) (7,077) 2,932
Foreign currency translation adjustment -- -- (380) -- (380)
--------- --------- --------- --------- ---------
TOTAL STOCKHOLDERS' EQUITY 147,776 17,657 (670) (17,347) 147,416
--------- --------- --------- --------- ---------
$ 154,025 $ 23,334 $ (555) $ (17,347) $ 159,457
--------- --------- --------- --------- ---------
--------- --------- --------- --------- ---------
4
CONSOLIDATING BALANCE SHEETS
DECEMBER 31, 1998
(IN 000'S)
(UNAUDITED)
COMBINED
COMBINED NON-
PARENT GUARANTOR GUARANTOR
ASSETS COMPANY SUBSIDIARIES SUBSIDIARIES ELIMINATIONS CONSOLIDATED
- ------ ------- ------------ ------------ ------------ ------------
CURRENT:
Cash and cash equivalents $ 1,200 $ 124 $ 10 $ -- $ 1,334
Accounts receivable 392 4,287 49 -- 4,728
Other current assets 290 3 2 -- 295
--------- --------- --------- --------- ---------
TOTAL CURRENT ASSETS 1,882 4,414 61 -- 6,357
--------- --------- --------- --------- ---------
PROPERTY AND EQUIPMENT 96,239 40,426 10,511 -- 147,176
Less accumulated depreciation, depletion and
amortization 16,724 2,676 -- -- 19,400
--------- --------- --------- --------- ---------
NET PROPERTY AND EQUIPMENT 79,515 37,750 10,511 -- 127,776
--------- --------- --------- --------- ---------
DESIGNATED CASH -- 2,782 -- -- 2,782
INVESTMENT IN SUBSIDIARIES 11,535 5,094 -- (16,629) --
OTHER ASSETS 2,437 274 -- -- 2,711
DUE TO (FROM) PARENT AND AFFILIATES 31,429 (20,737) (10,692) -- --
--------- --------- --------- --------- ---------
$ 126,798 $ 29,577 $ (120) $ (16,629) $ 139,626
--------- --------- --------- --------- ---------
--------- --------- --------- --------- ---------
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 190 $ 1,028 $ 22 $ -- $ 1,240
Amounts payable to oil and gas property owners -- 2,947 -- -- 2,947
Accrued expenses and other 1,364 151 -- -- 1,515
Current portion - capital leases -- 1,123 -- -- 1,123
--------- --------- --------- --------- ---------
TOTAL CURRENT LIABILITIES 1,554 5,249 22 -- 6,825
PRODUCTION TAXES PAYABLE -- 2,782 -- -- 2,782
NOTES PAYABLE 42,400 1,739 -- -- 44,139
OBLIGATIONS UNDER CAPITAL LEASES -- 2,906 -- -- 2,906
DEFERRED INCOME TAX LIABILITY 3,295 -- -- -- 3,295
--------- --------- --------- --------- ---------
TOTAL LIABILITIES 47,249 12,676 22 -- 59,947
--------- --------- --------- --------- ---------
STOCKHOLDERS' EQUITY:
Common stock 111 100 -- (100) 111
Partnership capital -- 10,190 -- (10,190) --
Additional paid-in capital 78,360 -- -- 20 78,380
Retained earnings 1,078 6,611 (252) (6,359) 1,078
Foreign currency translation adjustment -- -- 110 -- 110
--------- --------- --------- --------- ---------
TOTAL STOCKHOLDERS' EQUITY 79,549 16,901 (142) (16,629) 79,679
--------- --------- --------- --------- ---------
$ 126,798 $ 29,577 $ (120) $ (16,629) $ 139,626
--------- --------- --------- --------- ---------
--------- --------- --------- --------- ---------
5
CONSOLIDATING STATEMENTS OF INCOME
SIX MONTHS ENDED JUNE 30, 1999
(IN 000'S)
(UNAUDITED)
COMBINED
COMBINED NON-
PARENT GUARANTOR GUARANTOR
COMPANY SUBSIDIARIES SUBSIDIARIES ELIMINATIONS CONSOLIDATED
------- ------------ ------------ ------------ ------------
REVENUES:
Natural gas revenues $ 7,414 $ 2,159 $ 139 $ -- $ 9,712
Oil and gas services -- 960 -- (960) --
Interest 65 49 -- -- 114
--------- --------- --------- --------- ---------
TOTAL REVENUES 7,479 3,168 139 (960) 9,826
--------- --------- --------- --------- ---------
EXPENSES:
Lease operating expenses 1,603 669 91 -- 2,363
Cost of oil and gas services -- 271 -- (271) --
Depreciation, depletion and amortization 1,501 838 -- (41) 2,298
General and administrative expenses 1,454 453 86 (659) 1,334
Interest expense 1,361 180 -- -- 1,541
--------- --------- --------- --------- ---------
TOTAL EXPENSES 5,919 2,411 177 (971) 7,536
--------- --------- --------- --------- ---------
INCOME FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES 1,560 757 (38) 11 2,290
Income tax provision - deferred 887 -- -- -- 887
--------- --------- --------- --------- ---------
INCOME FROM CONTINUING OPERATIONS 673 757 (38) 11 1,403
DISCONTINUED OPERATIONS
Gain from disposal of discontinued operations, net 452 -- -- -- 452
Equity in earnings of discontinued operations, net -- -- -- -- --
EQUITY IN UNDISTRIBUTED INCOME OF SUBSIDIARIES 730 -- -- (730) --
--------- --------- --------- --------- ---------
NET INCOME $ 1,855 $ 757 $ (38) $ (719) $ 1,855
--------- --------- --------- --------- ---------
--------- --------- --------- --------- ---------
6
CONSOLIDATING STATEMENTS OF INCOME
SIX MONTHS ENDED JUNE 30, 1998
(IN 000'S)
(UNAUDITED)
COMBINED COMBINED
PARENT GUARANTOR NON-GUARANTOR
COMPANY SUBSIDIARIES SUBSIDIARIES ELIMINATIONS CONSOLIDATED
------- ------------ ------------ ------------ ------------
REVENUES:
Natural gas revenues $ 7,273 $ 1,507 $ -- $ -- $ 8,780
Oil and gas services -- 465 -- (465) --
Interest 28 53 -- -- 81
-------- ---------- --------- --------- ---------
TOTAL REVENUES 7,301 2,025 -- (465) 8,861
-------- ---------- --------- --------- ---------
EXPENSES:
Lease operating expenses 985 248 -- -- 1,233
Cost of oil and gas services -- 173 -- (173) --
Depreciation, depletion and amortization 1,212 542 -- -- 1,754
General and administrative expenses 1,094 25 20 (292) 847
Interest expense 575 186 -- -- 761
Other expense 39 -- -- -- 39
-------- ---------- --------- --------- ---------
TOTAL EXPENSES 3,905 1,174 20 (465) 4,634
-------- ---------- --------- --------- ---------
INCOME FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES 3,396 851 (20) -- 4,227
Income tax provision - deferred 1,631 -- -- -- 1,631
-------- ---------- --------- --------- ---------
INCOME FROM CONTINUING OPERATIONS 1,765 851 (20) -- 2,596
DISCONTINUED OPERATIONS
Gain from disposal of discontinued operations, net -- -- -- -- --
Equity in earnings of discontinued operations, net 137 -- -- -- 137
EQUITY IN UNDISTRIBUTED INCOME OF SUBSIDIARIES 831 -- -- (831) --
-------- ---------- --------- --------- ---------
NET INCOME $ 2,733 $ 851 $ (20) $ (831) $ 2,733
-------- ---------- --------- --------- ---------
-------- ---------- --------- --------- ---------
7
CONSOLIDATING STATEMENTS OF INCOME
THREE MONTHS ENDED JUNE 30, 1999
(IN 000'S)
(UNAUDITED)
COMBINED COMBINED
PARENT GUARANTOR NON-GUARANTOR
COMPANY SUBSIDIARIES SUBSIDIARIES ELIMINATIONS CONSOLIDATED
------- ------------ ------------ ------------ ------------
REVENUES:
Natural gas revenues $ 3,920 $ 1,142 $ 78 $ -- $ 5,140
Oil and gas services -- 780 -- (780) --
Interest 42 21 -- -- 63
--------- ----------- ---------- ---------- -----------
TOTAL REVENUES 3,962 1,943 78 (780) 5,203
--------- ----------- ---------- ---------- -----------
EXPENSES:
Lease operating expenses 767 367 29 -- 1,163
Cost of oil and gas services -- 219 -- (219) --
Depreciation, depletion and amortization 671 507 -- (41) 1,137
General and administrative expenses 691 438 36 (427) 738
Interest expense 700 52 -- -- 752
--------- ----------- ---------- ---------- -----------
TOTAL EXPENSES 2,829 1,583 65 (687) 3,790
--------- ----------- ---------- ---------- -----------
INCOME FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES 1,133 360 13 (93) 1,413
Income tax provision - deferred 545 -- -- -- 545
--------- ----------- ---------- ---------- -----------
INCOME FROM CONTINUING OPERATIONS 588 360 13 (93) 868
DISCONTINUED OPERATIONS
Gain from disposal of discontinued operations, net -- -- -- -- --
Equity in earnings of discontinued operations, net -- -- -- -- --
EQUITY IN UNDISTRIBUTED INCOME OF SUBSIDIARIES 280 -- -- (280) --
--------- ----------- ---------- ---------- -----------
NET INCOME $ 868 $ 360 $ 13 $ (373) $ 868
--------- ----------- ---------- ---------- -----------
--------- ----------- ---------- ---------- -----------
8
CONSOLIDATING STATEMENTS OF INCOME
THREE MONTHS ENDED JUNE 30, 1998
(IN 000'S)
(UNAUDITED)
COMBINED COMBINED
PARENT GUARANTOR NON-GUARANTOR
COMPANY SUBSIDIARIES SUBSIDIARIES ELIMINATIONS CONSOLIDATED
------- ------------ ------------ ------------ ------------
REVENUES:
Natural gas revenues $ 3,680 $ 787 $ $ -- $ 4,467
Oil and gas services -- 247 -- (247) --
Interest 14 23 -- -- 37
--------- ---------- --------- ----------- ----------
TOTAL REVENUES 3,694 1,057 -- (247) 4,504
--------- ---------- --------- ----------- ----------
EXPENSES:
Lease operating expenses 541 138 -- -- 679
Cost of oil and gas services -- 78 -- (78) --
Depreciation, depletion and amortization 630 281 -- -- 911
General and administrative expenses 603 13 1 (169) 448
Interest expense 331 85 -- -- 416
--------- ---------- --------- ----------- ----------
TOTAL EXPENSES 2,105 595 1 (247) 2,454
--------- ---------- --------- ----------- ----------
INCOME FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES 1,589 462 (1) -- 2,050
Income tax provision - deferred 791 -- -- -- 791
--------- ---------- --------- ----------- ----------
INCOME FROM CONTINUING OPERATIONS 798 462 (1) -- 1,259
DISCONTINUED OPERATIONS
Gain from disposal of discontinued operations, net -- -- -- -- --
Equity in earnings of discontinued operations, net 73 -- -- -- 73
EQUITY IN UNDISTRIBUTED INCOME OF SUBSIDIARIES 461 -- -- (461) --
--------- ---------- --------- ----------- ----------
NET INCOME $ 1,332 $ 462 $ (1) $ (461) $ 1,332
--------- ---------- --------- ----------- ----------
--------- ---------- --------- ----------- ----------
9
CONSOLIDATING STATEMENTS OF CASH FLOWS
SIX MONTHS ENDED JUNE 30, 1999
(IN 000'S)
(UNAUDITED)
COMBINED COMBINED
PARENT GUARANTOR NON-GUARANTOR
COMPANY SUBSIDIARIES SUBSIDIARIES ELIMINATIONS CONSOLIDATED
------- ------------ ------------ ------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 1,855 $ 757 $ (38) $ (719) $ 1,855
Adjustments to reconcile net income to cash
provided by (used in) operating activities:
Equity in undistributed income of subsidiaries (719) -- -- 719 --
Depreciation, depletion and amortization 1,577 854 -- -- 2,431
Deferred income taxes 887 -- -- -- 887
Gain on disposal of discontinued operations, net (452) -- -- -- (452)
Other 241 -- -- -- 241
Changes in operating assets and liabilities:
Accounts receivable (183) 931 (26) -- 722
Other current assets (230) (407) (18) -- (655)
Accounts payable 849 (637) 38 -- 250
Accrued expenses (618) 60 -- -- (558)
------------ ---------- ----------- ------------ -----------
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 3,207 1,558 (44) -- 4,721
------------ ---------- ----------- ------------ -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Intercompany (advances) proceeds (16,851) 16,375 476 -- --
Investment in property and equipment (8,648) (12,566) (408) -- (21,622)
Proceeds from the sale of investment 2,259 -- -- -- 2,259
Designated cash -- 835 -- -- 835
Change in production taxes payable -- (835) -- -- (835)
Other assets (461) 119 9 -- (333)
------------ ---------- ----------- ------------ -----------
NET CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES (23,701) 3,928 77 -- (19,696)
------------ ---------- ----------- ------------ -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from (payments on) notes payable (44,139) -- -- -- (44,139)
Proceeds from sale of common stock, net 66,043 -- -- -- 66,043
Principal payments on capital lease obligations -- (4,028) -- -- (4,028)
Debt issue costs (57) -- -- -- (57)
Cash held from operating oil and gas properties -- (1,560) -- -- (1,560)
------------ ---------- ----------- ------------ -----------
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 21,847 (5,588) -- -- 16,259
------------ ---------- ----------- ------------ -----------
EFFECT OF EXCHANGE RATE CHANGES ON CASH -- -- (6) -- (6)
------------ ---------- ----------- ------------ -----------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 1,353 (102) 27 -- 1,278
CASH AND CASH EQUIVALENTS, BEGINNING OF THE PERIOD 1,200 124 10 -- 1,334
------------ ---------- ----------- ------------ -----------
CASH AND CASH EQUIVALENTS, END OF THE PERIOD $ 2,553 $ 22 $ 37 $ -- $ 2,612
------------ ---------- ----------- ------------ -----------
------------ ---------- ----------- ------------ -----------
10
CONSOLIDATING STATEMENTS OF CASH FLOWS
SIX MONTHS ENDED JUNE 30, 1998
(IN 000'S)
(UNAUDITED)
COMBINED COMBINED
PARENT GUARANTOR NON-GUARANTOR
COMPANY SUBSIDIARIES SUBSIDIARIES ELIMINATIONS CONSOLIDATED
------- ------------ ------------ ------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 2,732 $ 851 $ (20) $ (831) $ 2,732
Adjustments to reconcile net income to cash
provided by (used in) operating activities:
Equity in undistributed income of subsidiaries (831) -- -- 831 --
Depreciation, depletion and amortization 1,290 540 -- -- 1,830
Deferred income taxes 1,631 -- -- -- 1,631
Equity in earnings of discontinued operations, net (137) -- -- -- (137)
Other 128 -- -- -- 128
Changes in operating assets and liabilities:
Accounts receivable (970) 495 1 -- (474)
Other current assets (122) 43 1 -- (78)
Accounts payable (1,103) 1,237 -- -- 134
Accrued expenses 116 6 -- -- 122
------------ ---------- ----------- ------------ -----------
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 2,734 3,172 (18) -- 5,888
------------ ---------- ----------- ------------ -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Intercompany (advances) proceeds (4,895) 4,245 650 -- --
Investment in property and equipment (7,338) (7,210) (636) -- (15,184)
Designated cash -- 155 -- -- 155
Change in production taxes payable -- (155) -- -- (155)
Increase in other assets 25 8 -- -- 33
------------ ---------- ----------- ------------ -----------
NET CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES (12,208) (2,957) 14 -- (15,151)
------------ ---------- ----------- ------------ -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from (payments on) notes payable 10,416 -- -- -- 10,416
Proceeds from sale of common stock, net 815 -- -- -- 815
Principal payments on capital lease obligations -- (519) -- -- (519)
Cash held from operating oil and gas properties -- (70) -- -- (70)
------------ ---------- ----------- ------------ -----------
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 11,231 (589) -- -- 10,642
------------ ---------- ----------- ------------ -----------
EFFECT OF EXCHANGE RATE CHANGES ON CASH -- -- 17 -- 17
------------ ---------- ----------- ------------ -----------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 1,757 (374) 13 -- 1,396
CASH AND CASH EQUIVALENTS, BEGINNING OF THE PERIOD 419 1,681 3 -- 2,103
------------ ---------- ----------- ------------ -----------
CASH AND CASH EQUIVALENTS, END OF THE PERIOD $ 2,176 $ 1,307 $ 16 $ -- $ 3,499
------------ ---------- ----------- ------------ -----------
------------ ---------- ----------- ------------ -----------
11
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
SUBSIDIARY GUARANTORS
In May 1999, the Company filed a Shelf Registration Statement with the
Securities and Exchange Commission with an aggregate offering amount of up
to $150 million. The Shelf Registration Statement provided for the
offering to the public from time to time of (a) debt securities of the
Company, which may be wholly and unconditionally guaranteed by certain
wholly-owned subsidiaries of the Company (the "Subsidiary Guarantors"),
(b) common stock of the Company, (c) preferred stock of the Company, (d)
depositary shares representing fractional interests in shares of the
Company's preferred stock, (e) warrants to purchase the Company's debt
securities, preferred stock or common stock and/or (f) subscription rights
to purchase any of the foregoing securities. The Company has not issued
any debt securities under the Shelf Registration Statement. However,
because of the potential for a guarantee of debt securities by the
Subsidiary Guarantors, the Company has presented the following condensed
consolidating financial data with respect to (i) the Company on a
stand-alone basis, (ii) the Subsidiary Guarantors as a group, (iii) the
non-guarantor subsidiaries of the Company as a group, (iv) elimination
entries for purposes of consolidation and (v) the Company and all of its
subsidiaries combined. The Company has not presented separate financial
statements for each of the Subsidiary Guarantors because it believes that
such information is not material to potential investors. All significant
intercompany balances and transactions have been eliminated in
consolidation. The Subsidiary Guarantors are not subject to any
restrictions on their ability to pay dividends to the Company.
12
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 thereunto duly authorized.
EVERGREEN RESOURCES, INC.
(Registrant)
DATE: October 22, 1999 By: /S/ KEVIN R. COLLINS
--------------------------------------------
Kevin R. Collins
VP - Finance, Chief Financial Officer
(Principal Financial and Accounting Officer)
13