1
EXHIBIT 99.(b)(2)
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[LOGO]
PRINCIPAL FINANCIAL SECURITIES, INC.
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SEABOARD OIL COMPANY
MATERIALS PREPARED FOR THE
SPECIAL COMMITTEE OF THE
BOARD OF DIRECTORS
JUNE 7, 1996
PRINCIPAL FINANCIAL SECURITIES, INC.
909 FANNIN, SUITE 1900
HOUSTON, TEXAS 77010
TELEPHONE: (713) 651-1661
TELECOPIER: (713) 651-7444
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TABLE OF CONTENTS
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Section
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SUMMARY OF THE TRANSACTION ........................................... 1
- Transaction Summary
- Summary Market Data
- Summary Operating Data
HISTORICAL AND PROJECTED FINANCIAL STATEMENTS ........................ 2
PRELIMINARY SUMMARY REFERENCE VALUE ANALYSIS ......................... 3
DISCOUNTED CASH FLOW ANALYSIS ........................................ 4
COMPARABLE RESERVES ACQUISITIONS ANALYSIS ............................ 5
COMPARABLE COMPANIES TRADING ANALYSIS ................................ 6
PREMIUMS PAID FOR RESIDUAL INTEREST ANALYSIS ......................... 7
BOOK VALUE PER SHARE ................................................. 8
PRINCIPAL FINANCIAL SECURITIES
3
SECTION 1
SUMMARY OF THE ACQUISITION
PRINCIPAL FINANCIAL SECURITIES
4
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TRANSACTION SUMMARY
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Price to be paid per one share of Seaboard Oil Company Common Stock ....... $9.75
Seaboard Oil Company fully diluted shares outstanding ..................... 1,557,369 shares
Total shares owned by Seaboard Acquisition Partners ("SAP") ............... 1,055,683 shares
Total shares to be acquired by SAP ........................................ 501,686 shares
Total consideration to be paid (excluding transaction expenses) ........... $4,891,438
Estimated Effective Date .................................................. September 15, 1996
PRINCIPAL FINANCIAL SECURITIES
5
SEABOARD OIL COMPANY
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SUMMARY MARKET DATA
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Recent stock price(1) $8.00
Common shares outstanding (fully diluted) 1,557,369
Market value of common equity $12,458,952
Long-term debt (as of March 31, 1996) --
Long-term debt / total capital 0.0%
Net income (FY End 3/31/96) $1,809,000
EPS (FY End 3/31/96) $1.16
P/E Ratio 6.9x
After-Tax cash flow (FY End 3/31/96) $3,596,000
A-T cash flow per shr. (FY End 3/31/96) $2.30
Stock price / A-T cash flow per shr 3.5x
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(1) Mid-point of bid/ask on June 3, 1996.
PRINCIPAL FINANCIAL SECURITIES
6
SEABOARD OIL COMPANY
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SUMMARY OPERATING DATA
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(Amounts in thousands except per share data and where noted)
TOTAL REVENUE (FY END 3/31/96): $6,084
Oil & gas revenue $6,048
Other revenue $36
Other assets $868
% Reserves as oil (oil conv. @ 6:1) 86.0%
Proved developed reserves:
Oil (MBbls) 1,947
Gas (MMcf) 1,905
Proved developed & undeveloped reserves:
Oil (MBbls) 1,947
Gas (MMcf) 1,905
FYE 1996 production:
Oil (MBbls) 311
Gas (MMcf) 331
Oil Equivalent (MBbls) 366
Reserve Life Index - total proved:
Oil 6.26
Gas 5.75
SEC PV 10 $17,020
EQUIVALENT BBLS ANALYSIS 6 MCF TO 1 BBL
Equivalent MBbls - proved developed 2,265
Equivalent MBbls - total proved 2,265
Equivalent Bbls per share - proved developed 1.45
Equivalent Bbls per share - total proved 1.45
Market's value per equiv. Bbl $5.12
Equivalent reserve life (years) 6.19
PRINCIPAL FINANCIAL SECURITIES
7
SECTION 2
HISTORICAL AND PROJECTED FINANCIAL STATEMENTS
PRINCIPAL FINANCIAL SECURITIES
8
SEABOARD OIL COMPANY
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INCOME STATEMENT
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($ in thousands)
For the Years Ended March 31,
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1995 1996 1997E(a)
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Revenues:
Oil and gas sales $4,366 $6,048 $6,535
Interest and other income 176 203 159
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Total revenues 4,542 6,251 6,694
Expenses:
Lease operating costs 1,410 1,653 1,801
Production taxes 219 242 278
D, D & A 1,100 1,766 1,906
G & A 746 786 866
Dry hole and abandonment 283 21 --
Compression & gathering 28 28 --
Geological & geophysical -- 17 --
Total expenses 3,786 4,513 4,851
Operating income 756 1,738 1,843
Other income (expenses) 68 71 --
Net income $824 $1,809 $1,843
Net income per share (b) $0.53 $1.16 $1.18
After-Tax Cash flow $1,924 $3,575 $3,749
A-T Cash flow per share (b) $1.24 $2.30 $2.41
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(a) Based upon estimates provided by Seaboard management.
(b) Based on fully diluted shares of 1,557,369.
PRINCIPAL FINANCIAL SECURITIES
9
SEABOARD OIL COMPANY
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BALANCE SHEET
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($ in thousands)
For the Years Ended March 31,
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ASSETS 1995 1996 1997E(a)
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Current assets:
Cash and equivalents $3,769 $3,827 $4,083
Accts. receivable 543 706 708
Other current assets 149 59 57
Total current assets 4,461 4,592 4,848
Property, plant & equip.:
Oil & gas properties 14,348 16,715 19,934
Other equipment 460 868 932
Less accumulated D, D & A (5,519) (7,251) (8,954)
Net P, P & E 9,289 10,332 11,912
Total assets $13,750 $14,924 $16,760
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(a) Based upon estimates provided by Seaboard management.
PRINCIPAL FINANCIAL SECURITIES
10
SEABOARD OIL COMPANY
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BALANCE SHEET
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($ in thousands)
For the Years Ended March 31,
LIABILITIES AND -----------------------------
STOCKHOLDERS' EQUITY 1995 1996 1997E(a)
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Current liabilities:
Accounts payable $783 $293 $517
Accrued liabilities and other 247 215 --
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Total current liabilities 1,030 508 517
Stockholders equity:
Common stock 16 16 16
Additional paid-in capital 9,517 9,517 9,517
Retained earnings 3,622 5,431 7,249
Less treasury stock (435) (548) (539)
Total stockholders' equity 12,720 14,416 16,243
Total liabilities and
shareholders' equity $13,750 $14,924 $16,760
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(a) Based upon estimates provided by Seaboard management.
PRINCIPAL FINANCIAL SECURITIES
11
SECTION 3
PRELIMINARY SUMMARY REFERENCE VALUE ANALYSIS
PRINCIPAL FINANCIAL SECURITIES
12
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SEABOARD OIL COMPANY
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PRELIMINARY SUMMARY REFERENCE VALUE ANALYSIS
Dollars Per Share (1) Weighting Weighted Value
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Discounted Cash Flow Analysis $8.29 - $9.99 30.0% $2.49 $3.00
Comparable Reserves Acquisitions Analysis $8.44 - $9.89 25.0% $2.11 $2.47
Comparable Companies Trading Analysis $11.79 - $13.79 25.0% $2.95 $3.45
Book Value per Share $9.06 10.0% $0.91 $0.91
Premiums Paid for Residual Interest Analysis $7.80 10.0% $0.78 $0.78
Weighted Average Total $9.23 $10.60
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Trading History (3-year Minimum, Maximum) $4.50 - $8.00
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(1) 1,557,369 Shares Outstanding as of May 6, 1996.
PRINCIPAL FINANCIAL SECURITIES
13
SECTION 4
DISCOUNTED CASH FLOW ANALYSIS
PRINCIPAL FINANCIAL SECURITIES
14
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SEABOARD OIL COMPANY
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DISCOUNTED CASH FLOW ANALYSIS
KEY ASSUMPTIONS
Production: Based on independent reserve report prepared for Seaboard Oil
Company by Joe C. Neal & Associates ("J. C. Neal") pursuant to
the requirements of The Securities and Exchange Commission.
Effective Date: March 31, 1996.
Prices: Pricing was established using the average closing strip prices
as quoted in the May 31, 1996 Wall Street Journal for Light
Sweet Crude Oil and Natural Gas. For the Downside Case, prices
were held constant. For the Base Case, beginning in 1998, crude
oil prices were escalated at 2.5% per year and gas prices were
escalated at 3.0% per year. For the High Case, beginning in
1998, crude oil prices were escalated at 3.5% per year and gas
prices were escalated at 5.0% per year.
Costs: Lease Operating Costs were based on the J.C. Neal reserve report
and escalated at 2.5% per year beginning in 1997. General &
Administrative expenses were assumed to be 12.5% of revenues per
year.
Tax Rate: Assumed Tax Rate was 34%.
NOLs, AMT: Net Operating Loss Carryforwards of approximately $9 million
were utilized to decrease the tax liability of the Company. In
addition to the NOLs, the Company has available Alternative
Minimum Tax Carryforwards which were utilized in conjunction
with the NOLs to further reduce the tax liability of the
Company.
PRINCIPAL FINANCIAL SECURITIES
15
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SEABOARD OIL COMPANY
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DISCOUNTED CASH FLOW ANALYSIS SUMMARY
PRESENT VALUE
($ in thousands, except per share)
Discount Rate
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Case 10.0% 12.0% 14.0% 16.0% 18.0%
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Downside $ 9,809.9 $ 9,288.3 $ 8,815.9 $ 8,386.3 $ 7,994.3
Base $ 11,476.2 $ 10,750.3 $ 10,106.6 $ 9,532.4 $ 9,017.5
High $ 12,295.7 $ 11,453.4 $ 10,715.6 $ 10,064.7 $ 9,486.5
Per Share Value(1)
Discount Rate
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Case 10.0% 12.0% 14.0% 16.0% 18.0%
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Downside $ 8.93 $ 8.60 $ 8.29 $ 8.02 $ 7.77
Base $ 10.00 $ 9.54 $ 9.12 $ 8.75 $ 8.42
High $ 10.53 $ 9.99 $ 9.51 $ 9.10 $ 8.72
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(1) Includes $4.1 million of excess cash. 1,557,369 shares outstanding as of
May 6,
PRINCIPAL FINANCIAL SECURITIES
16
SECTION 5
COMPARABLE RESERVES ACQUISITIONS ANALYSIS
PRINCIPAL FINANCIAL SECURITIES
17
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SEABOARD OIL COMPANY
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COMPARABLE RESERVES ACQUISITION ANALYSIS
Comparable Implied Corporate Implied Current
Multiple of: Seaboard Transaction Multiples Multiple Range Asset Value Adjustments Market Value ($MM)
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FYE '96 Proved Reserves
($/BOE, MMBOE) 2.26 $2.25 - $8.57 $4.00 - $5.00 $9.0 - $11.3 $4.1 $13.1 - $15.4
Per Share (1) $8.44 - $9.89
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(1) 1,557,369 shares outstanding as of May 6, 1996
PRINCIPAL FINANCIAL SECURITIES
18
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SEABOARD OIL COMPANY
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1994 & 1995 TRANSACTIONS (SORTED BY QUARTER)
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Total PROVED RESERVES ANNUAL PRODUCTION
Q Trans. ---------------------- ---------------------
t Value OIL GAS MMBO % OIL GAS MMBO
r BUYER SELLER US$MM MMbls BCF (@6:1) Gas MMbls BCF (@6:1)
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1 Devon Energy Alta Energy $64.6 24.3 26.6 28.7 15% 0.5 1.2 0.7
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1 Questar Corp. (Universal) Union Pacific Resources $94.5 1.7 81.9 15.3 89% 0.3 11.0 2.1
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1 Alexander Energy American Natural Energy $42.5 0.9 60.2 10.9 92% 0.1 2.6 0.5
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1 Arch Petroleum Inc. Chevron USA, Inc. $17.9 2.3 18.1 5.3 57%
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1 Questar Corp. (Universal) Petroleum Inc. $22.6 1.4 14.5 3.8 64%
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1 Brooklyn Union Gas Anadarko $22.8 0.1 21.6 3.7 98% 0.0 5.5 0.9
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2 MCN Investment Undisclosed $100.0 1.5 61.0 11.7 87% 0.2 10.0 1.9
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2 Coda Energy Diamond Energy/Diamond A $53.5 5.7 3.2 6.2 9% 1.0 1.1 1.2
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3 Lomak Petroleum Red Eagle Resources $34.6 0.9 50.5 9.4 90% 0.1 1.9 0.4
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3 Abraxas Petroleum Enertex et al. $28.0 0.5 48.2 8.6 94% 0.0 2.6 0.5
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3 Alexander Energy Undisclosed $18.5 0.0 23.0 3.8 100% 0.0 1.5 0.3
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3 Tide West Oil Undisclosed $14.0 0.2 19.0 3.3 95%
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4 Coda Energy Texaco/Undisclosed $25.3 7.3 5.4 8.2 11% 0.5 0.5 0.5
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4 Southwestern Energy Natural Gas Clearinghouse $12.7 0.7 20.8 4.2 83% 0.1 2.1 0.4
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4 Alexander Energy JMC Exploration $18.2 0.0 23.0 3.8 100%
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1 Sonat Inc. Horizon Oil & Gas et al. $22.6 1.2 26.0 5.5 78%
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1 Cross Timbers Oil Apache $20.0 1.1 24.6 5.2 79% 0.1 2.1 0.5
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1 Gothic Energy Corp. Buttonwood Energy $21.0 0.5 24.6 4.6 90%
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Ener Vest Mgmt./EnCap
1 Energy Cap. Fund Union Pacific $11.0 2.5 9.3 4.1 38%
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2 Cross Timbers Oil Santa Fe Minerals $121.0 0.0 132.0 22.0 100% 0.0 11.0 1.8
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2 Louis Dreyfus Natural Gas American Exploration et al. $93.0 0.0 115.0 19.2 100% 0.0 13.1 2.2
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2 Pennzoil Oryx Energy $15.4 6.0 0% 0.7
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2 Hugoton Energy Mobil $13.0 0.1 16.5 2.8 97% 0.0 4.2 0.7
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Enron Capital & Trade
3 Resources Coda Energy $303.6 39.2 39.8 45.8 14% 3.1 4.8 3.9
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4 Texas Pacific Group Newscope Resources Ltd. $50.2 2.0 29.3 6.9 71% 0.3 2.0 0.6
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4 National Energy Group Alexander Energy $129.0 3.9 145.2 28.1 86% 0.2 8.9 1.7
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4 Vastar Resources H & H Star Energy $19.5 0.0 26.0 4.3 100% 0.0 2.2 0.4
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4 Key Production Co. Brock Exploration $20.3 2.4 11.6 4.3 45% 0.4 2.4 0.7
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0 & G Implied Implied
Q Reserve Other Reserve Reserve
t Value Assets Value Value
r BUYER SELLER US$MM US$MM ($/BOE) $/MCFE
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1 Devon Energy Alta Energy $64.6 $0.0 $2.25 $0.37
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1 Questar Corp. (Universal) Union Pacific Resources $80.0 $14.5 $5.22 $0.87
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1 Alexander Energy American Natural Energy $42.5 $0.0 $3.89 $0.65
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1 Arch Petroleum Inc. Chevron USA, Inc. $17.9 $0.0 $3.36 $0.56
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1 Questar Corp. (Universal) Petroleum Inc. $22.6 $0.0 $5.99 $1.00
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1 Brooklyn Union Gas Anadarko $18.7 $4.1 $5.08 $0.85
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2 MCN Investment Undisclosed $100.0 $0.0 $8.57 $1.43
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2 Coda Energy Diamond Energy/Diamond A $53.5 $0.0 $8.57 $1.43
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3 Lomak Petroleum Red Eagle Resources $29.7 $4.9 $3.18 $0.53
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3 Abraxas Petroleum Enertex et al. $27.9 $0.1 $3.26 $0.54
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3 Alexander Energy Undisclosed $18.5 $0.0 $4.83 $0.80
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3 Tide West Oil Undisclosed $14.0 $0.0 $4.20 $0.70
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4 Coda Energy Texaco/Undisclosed $25.3 $0.0 $3.09 $0.51
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4 Southwestern Energy Natural Gas Clearinghouse $12.7 $0.0 $3.05 $0.51
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4 Alexander Energy JMC Exploration $18.2 $0.0 $4.75 $0.79
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1 Sonat Inc. Horizon Oil & Gas et al. $22.6 $0.0 $4.08 $0.68
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1 Cross Timbers Oil Apache $20.0 $0.0 $3.85 $0.64
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1 Gothic Energy Corp. Buttonwood Energy $20.5 $0.5 $4.51 $0.75
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Ener Vest Mgmt./EnCap
1 Energy Cap. Fund Union Pacific $11.0 $0.0 $2.72 $0.45
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2 Cross Timbers Oil Santa Fe Minerals $91.0 $30.0 $4.14 $0.69
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2 Louis Dreyfus Natural Gas American Exploration et al. $91.9 $1.1 $4.79 $0.80
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2 Pennzoil Oryx Energy $15.4 $0.0 $2.55 $0.42
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2 Hugoton Energy Mobil $13.0 $0.0 $4.59 $0.77
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Enron Capital & Trade
3 Resources Coda Energy $272.8 $30.8 $5.95 $0.99
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4 Texas Pacific Group Newscope Resources Ltd. $40.3 $9.8 $5.88 $0.98
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4 National Energy Group Alexander Energy $126.3 $2.7 $4.49 $0.75
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4 Vastar Resources H & H Star Energy $19.5 $0.0 $4.50 $0.75
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4 Key Production Co. Brock Exploration $18.8 $1.5 $4.37 $0.73
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Minimum $2.25
Maximum $8.57
Average $4.49
PRINCIPAL FINANCIAL SECURITIES
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SECTION 6
COMPARABLE COMPANIES TRADING ANALYSIS
PRINCIPAL FINANCIAL SECURITIES
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SEABOARD OIL COMPANY
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COMPARABLE COMPANIES TRADING ANALYSIS
Implied
Comparable Company Total Current Corporate Implied Current
Seaboard Multiples Multiple Range Market Capitalization Adjustments Market Value ($MM)
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Market Capitalization To:
FYE '96 Proved Reserves 2.26 $2.73 - $9.96 $4.75 - $5.25 $10.7 - $11.9 $4.1 $14.8 - $16.0
($/BOE, MMBOE)
FYE '96 Pretax SEC PV 10% $17.0 0.7x - 2.0x 0.9x - 1.0x $14.5 - $17.0 $4.1 $18.6 - $21.1
FY 1996 Operating
Cash Flows $3.3 3.9x - 34.3x 5.0x - 6.0x $16.5 - $19.8 $4.1 $20.6 - $23.9
FY 1997 Operating
Cash Flows $3.7 4.3x - 5.1x $15.7 - $18.9 $4.1 $19.8 - $23.0
Market Value To:
FY 1996 After-Tax
Cash Flow $3.6 3.4x - 41.6x 5.0x - 6.5x $18.0 - $23.4
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Average $13.9 $16.2 $18.4 $21.5
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Value Per Share
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Per Share (1,557,369 shares outstanding) $11.79 $13.79
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PRINCIPAL FINANCIAL SECURITIES
21
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SEABOARD OIL COMPANY
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SELECTED COMPARABLE COMPANIES
Abraxas Petroleum
Primary areas of operations are in the Permian Basin in west Texas, onshore in
the South Texas Gulf Coast Region, and recently expanded to include western
Canada. As of Fiscal Year Ended December 31, 1995, approximately 98% of the
company's revenues were generated by oil & gas sales. Proved developed reserves
accounted for approximately 77% of total reserves.
Alamco Inc.
Primary areas of operations are in the Appalachian Basin in West Virginia,
Tennessee and Kentucky. As of Fiscal Year Ended December 31, 1995,
approximately 88% of the company's revenues were generated by oil & gas sales
(excluding settlement of gas contract litigation). Proved developed reserves
accounted for approximately 77% of total reserves.
Bellwether Exploration Company
Primary areas of operations are in Texas, Louisiana and the Gulf of Mexico. As
of Fiscal Year Ended December 31, 1995, approximately 56% of the company's
revenues were generated by oil & gas sales. Proved developed reserves accounted
for approximately 76% of total reserves.
Coho Energy
Primary areas of operations are in Louisiana and Mississippi. As of Fiscal Year
Ended December 31, 1995, approximately 100% of the company's revenues were
generated by oil & gas sales. Proved developed reserves accounted for
approximately 81% of total reserves.
PRINCIPAL FINANCIAL SECURITIES
22
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SEABOARD OIL COMPANY
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SELECTED COMPARABLE COMPANIES
Columbus Energy
Primary areas of operations are in Texas, North Dakota, Oklahoma and Montana.
As of Fiscal Year Ended December 31, 1995, approximately 84% of the company's
revenues were generated by oil & gas sales. Proved developed reserves accounted
for approximately 72% of total reserves. As of February 29, 1996, approximately
58% of the common shares outstanding were held by two individuals and two
institutions.
Mallon Resources
Primary areas of operations are in the San Juan Basin in New Mexico. As of
Fiscal Year Ended December 31, 1995, approximately 93% of the company's
revenues were generated by oil & gas sales (excluding deferred revenues).
Proved developed reserves accounted for approximately 72% of total reserves.
Maynard Oil
Primary areas of operations are in Texas and Oklahoma. As of Fiscal Year Ended
December 31, 1995, approximately 93% of the company's revenues were generated
by oil & gas sales. Proved developed reserves accounted for approximately 98%
of total reserves. As of May 21, 1996, approximately 63% of the common shares
outstanding were held by one individual and one institution.
Unit Corporation
Primary areas of operations are in Oklahoma, Texas, Kansas and Arkansas. As of
Fiscal Year Ended December 31, 1995, approximately 59% of the company's
revenues were generated by oil & gas sales. Proved developed reserves accounted
for approximately 87% of total reserves.
Wiser Oil
Primary areas of operations are in Texas, Louisiana, New Mexico and western
Canada. As of Fiscal Year Ended December 31, 1995, approximately 76% of the
company's revenues were generated by oil & gas sales. Proved developed reserves
accounted for approximately 76% of total reserves.
PRINCIPAL FINANCIAL SECURITIES
23
SECTION 7
PREMIUMS PAID FOR RESIDUAL INTEREST ANALYSIS
PRINCIPAL FINANCIAL SECURITIES
24
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SEABOARD OIL COMPANY
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PREMIUMS PAID FOR RESIDUAL INTEREST ANALYSIS
Seaboard Average Implied
Trading Price Premium Transaction Price
------------- ------- -----------------
Premium to Price
(four weeks prior to announcement) $6.00(1) 30% $7.80
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(1) Mid-Point of Bid/Ask.
PRINCIPAL FINANCIAL SECURITIES
25
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SEABOARD OIL COMPANY
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PREMIUMS PAID FOR RESIDUAL INTEREST ACQUISITION
PRICE
DATE % HELD AT % PER
ANNOUNCED TARGET NAME ACQUIROR NAME DATE ANN SOUGHT SHARE
- --------- ----------- ------------- --------- ------ ------
03/26/87 Standard Oil Co(British Petroleum Co PLC) BP America Inc(British
Petroleum Co PLC) 54.8 45.2 $73.50
12/06/88 Sage Energy Co Investor 69.0 31.0 $6.50
01/27/89 Ensource Inc(United Meridian Corp) United Meridian Corp 60.2 39.8 $10.50
02/15/89 Enserch Exploration Partners Ltd
(ENSERCH Corp) ENSERCH Corp 87.4 12.6 $13.53
01/06/89 Ocean Drilling & Exploration Co
(Odeco)(Murphy Oil Corp) Murphy Oil Corp 61.2 38.8 $18.00
07/31/90 Freeport-McMoRan Oil and Gas Co
(Freeport-McMoRan Inc) Freeport-McMoRan Inc 81.5 18.5 $10.88
01/03/91 Ocean Drilling & Exploration Co
(Odeco)(Murphy Oil Corp) Murphy Oil Corp 61.1 38.9 $19.39
02/06/91 Hamilton Oil Corp(BHP Holdings(USA)
Inc/Broken Hill Proprietary) BHP Holdings(USA)Inc(Broken Hill
Proprietary Co) 51.7 48.3 $10.00
09/18/91 Arkla Exploration Co(Arkla Inc) Arkla Inc 82.0 18.0 $15.44
02/24/92 Unocal Exploration Corp(Unocal Corp) Unocal Corp 96.0 4.0 $11.68
03/02/92 Grace Energy Corp(WR Grace & Co) WR Grace & Co 83.4 16.6 $19.00
10/09/92 Avalon Corp(Corona Corp) Dundee Bancorp International Inc
(Dundee Bancorp Inc) 83.5 16.5 $3.75
06/17/93 Hodson Energy Resources Corp(Apache Corp) Apache Corp 61.8 38.2 $15.00
04/26/94 Diamond Shamrock Offshore Partners LP
(Maxus Energy) Burlington Resources Inc 87.1 12.9 $1.48
PREMIUM OVER
PRICE
PRIOR TO
ANNOUNCEMENT
VALUE OF -----------------
DATE TRANSACTION ONE ONE FOUR
ANNOUNCED TARGET NAME ACQUIROR NAME ($ MIL) DAY WEEK WEEKS ATTITUDE STATUS
- --------- ----------- ------------- -------- ---- ---- ----- -------- ------
03/26/87 Standard Oil Co(British Petroleum Co PLC) BP America Inc(British
Petroleum Co PLC) $7,857.7 13.3 14.4 33.3 Friendly Completed
12/06/88 Sage Energy Co Investor $22.2 2.0 6.1 4.0 Friendly Completed
01/27/89 Ensource Inc(United Meridian Corp) United Meridian Corp $28.0 71.4 78.7 82.6 Friendly Completed
02/15/89 Enserch Exploration Partners Ltd
(ENSERCH Corp) ENSERCH Corp $162.3 20.2 21.6 40.5 NtAppl Completed
01/06/89 Ocean Drilling & Exploration Co
(Odeco)(Murphy Oil Corp) Murphy Oil Corp $300.0 8.3 2.9 Unlic Withdrawn
07/31/90 Freeport-McMoRan Oil and Gas Co
(Freeport-McMoRan Inc) Freeport-McMoRan Inc $16.2 36.0 42.7 47.5 Friendly Completed
01/03/91 Ocean Drilling & Exploration Co
(Odeco)(Murphy Oil Corp) Murphy Oil Corp $391.8 14.0 24.1 9.2 Hostile Completed
02/06/91 Hamilton Oil Corp(BHP Holdings(USA)
Inc/Broken Hill Proprietary) BHP Holdings(USA)Inc
(Broken Hill Proprietary Co) $524.3 18.5 21.2 31.1 Friendly Completed
09/18/91 Arkla Exploration Co(Arkla Inc) Arkla Inc $92.6 8.3 28.6 30.0 Friendly Completed
02/24/92 Unocal Exploration Corp(Unocal Corp) Unocal Corp $117.5 18.3 18.3 22.9 Friendly Completed
03/02/92 Grace Energy Corp(WR Grace & Co) WR Grace & Co $77.3 24.6 21.6 7.8 Friendly Completed
10/09/92 Avalon Corp(Corona Corp) Dundee Bancorp International Inc
(Dundee Bancorp Inc) $7.8 42.9 42.9 50.0 Friendly Completed
06/17/93 Hodson Energy Resources Corp(Apache Corp) Apache Corp $39.3 26.3 27.7 25.0 Friendly Completed
04/26/94 Diamond Shamrock Offshore Partners LP
(Maxus Energy) Burlington Resources Inc $42.6 -3.1 -0.4 5.4 Friendly Completed
Source: Securities Data Company, Inc. (201) 622-3100 Average [30%]
Principal Financial Securities
26
SECTION 8
BOOK VALUE PER SHARE
PRINCIPAL FINANCIAL SECURITIES
27
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SEABOARD OIL COMPANY
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BOOK VALUE ANALYSIS
$MM Per Share(1)
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FYE '96 Book Value $14.4 $9.25
FYE '97 Book Value Estimate(2) $13.8 $8.87
Average $9.06
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(1) 1,557,369 shares outstanding as of May 6, 1996.
(2) Company Prepared Forecast - Discounted at 15%.
PRINCIPAL FINANCIAL SECURITIES