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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
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DATE OF EARLIEST EVENT REPORTED: APRIL 20, 1995
SANTA FE ENERGY RESOURCES, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
DELAWARE 1-7667 36-2722169
(STATE OR OTHER JURISDICTION (COMMISSION (I.R.S. EMPLOYER
OF INCORPORATION FILE NUMBER) IDENTIFICATION NO.)
1616 SOUTH VOSS ROAD, SUITE 1000, HOUSTON, TEXAS 77057
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (713) 507-5000
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ITEM 5. OTHER EVENTS.
On April 20, 1995, Santa Fe Energy Resources, Inc. ("SFR" or the "Company")
announced operating results for the quarter ended March 31, 1995 as follows:
Santa Fe Energy Resources (NYSE:SFR) today reported first quarter 1995 net
income of $3.6 million with break even results attributable to common
shareholders of $0.00 per share. For the comparable period in 1994, the Company
recorded a net loss of $2.5 million with a loss attributable to common
shareholders of $0.05 per share. Operating income for the period improved to
$12.5 million, compared with break even for the period in 1994.
Crude oil prices recognized by SFR in the quarter averaged $13.85 per
barrel, up from $10.00 per barrel reported in the same period last year. Oil
prices increased each month during the quarter, and have continued that positive
trend into the second quarter with postings for California's heavy crude
currently at $14.25 -- $14.50 per barrel. Natural gas prices averaged $1.31 per
thousand cubic feet (mcf), compared with $2.07 per mcf in the first quarter of
1994. The Company had no oil or gas hedged during the 1995 period.
Crude oil production in the quarter averaged 64,200 barrels per day, down
from 66,000 barrels per day in the 1994 period. This reduction was primarily due
to the April 1994 sale of properties having production of approximately 1,200
barrels a day and, to a lesser extent, production curtailments due to mechanical
and weather related difficulties experienced by the Company in the first two
months of 1995. Natural gas production averaged 130.5 million cubic feet per
day, compared with an average of 155.5 million cubic feet per day in the first
quarter of 1994. The reduction in natural gas production in the 1995 period was
principally the result of the sale, in April 1994, of properties having
production of about 13.5 million cubic feet per day; the decrease of
approximately 6 million cubic feet per day from the loss of a well on the
Company's Ship Shoal 299 Block which will be redrilled in June of this year; and
price related curtailments in the first quarter of 1995 of approximately 4
million cubic feet per day. The Company's current oil production approximates
65,000 barrels per day with current gas production continuing to exceed 130
million cubic feet per day.
Revenues for the quarter totaled $98.6 million, up from $90.3 million in
the period last year, principally due to improved oil prices but offset by
substantially lower gas prices. Total costs and expenses were $86.1 million in
the first quarter of 1995 compared with $90.3 million in the 1994 period.
Production and operating costs per unit of production were $4.99, compared with
$4.91 per unit of production in the period last year, principally due to weather
related expenses and accelerated maintenance activities in preparation for
expanded field operations in the San Joaquin Valley.
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SANTA FE ENERGY RESOURCES, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(IN MILLION OF DOLLARS, EXCEPT AS NOTED)
THREE MONTHS
ENDED
MARCH 31,
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1995 1994
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REVENUES
Crude oil and liquids sales................................................ 79.0 58.6
Natural gas sales.......................................................... 15.0 28.1
Crude oil marketing and trading............................................ 2.9 2.7
Other...................................................................... 1.7 0.9
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TOTAL REVENUES..................................................... 98.6 90.3
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COSTS AND EXPENSES
Production and operating................................................... 38.6 40.6
Exploration, including dry hole costs...................................... 6.0 5.0
Depletion, depreciation and amortization................................... 31.3 32.1
General and administrative................................................. 5.9 7.6
Taxes (other than income).................................................. 4.3 7.4
Restructuring charges...................................................... -- 7.0
Loss (gain) on disposition of properties................................... -- (9.4)
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TOTAL COSTS AND EXPENSES........................................... 86.1 90.3
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INCOME FROM OPERATIONS....................................................... 12.5 --
Interest income............................................................ 0.8 0.2
Interest expense........................................................... (10.1) (10.3)
Interest capitalized....................................................... 0.9 0.9
Other income............................................................... 2.2 0.9
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Income (Loss) Before Income Taxes............................................ 6.3 (8.3)
Income taxes............................................................... (2.7) 5.8
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NET INCOME (LOSS)............................................................ 3.6 (2.5)
Preferred dividend requirement............................................. (3.7) (1.8)
EARNINGS (LOSS) TO COMMON SHARES............................................. (0.1) (4.3)
EARNINGS (LOSS) PER SHARE.................................................... -- (0.05)
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Average Shares Outstanding (in millions)..................................... 90.1 89.9
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SIGNATURE
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.
SANTA FE ENERGY RESOURCES, INC.
By: /s/ DAVID L. HICKS
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David L. Hicks
Vice President - Law
and General Counsel
Date: April 28, 1995
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