SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event) November 13, 2001
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BELDEN & BLAKE CORPORATION
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(Exact name of registrant as specified in its charter)
Ohio 0-20100 34-1686642
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(State or other jurisdiction of (Commission File Number) (IRS Employer
incorporation) Identification No.)
5200 Stoneham Road, North Canton, Ohio 44720
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(Address of principal executive offices) (Zip Code)
(330) 499-1660
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Registrant's telephone number, including area code
Item 9. Regulation FD Disclosure
Belden & Blake Corporation ("Belden & Blake" or the "Company") is
furnishing the following information under Item 9 of this Current Report on Form
8-K.
The information in this report is furnished pursuant to Item 9 and
shall not be deemed to be "filed" for purposes of Section 18 of the Exchange Act
or otherwise subject to the liabilities of that section, except if the Company
specifically states that the information is to be considered "filed" under the
Exchange Act or incorporates it by reference into a filing under the Securities
Act of the Exchange Act. This report will not be deemed an admission as to the
materiality of any information in the report that is required to be disclosed
solely by Regulation FD.
The information in this document includes forward-looking statements
that are made pursuant to Safe Harbor Provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements, and the business
prospects of Belden & Blake are subject to a number of risks and uncertainties
which may cause the Company's actual results in future periods to differ
materially from the forward-looking statements contained herein. These risks and
uncertainties include, but are not limited to, the Company's access to capital,
the market demand for and prices of oil and natural gas, the Company's oil and
gas production and costs of operation, results of the Company's future drilling
activities, the uncertainties of reserve estimates and environmental risks.
These and other risks are described in the Company's 10-K and 10-Q reports and
other filings with the Securities and Exchange Commission.
2001 OPERATIONAL OUTLOOK
QUARTER ENDING
---------------------------------------------------------- YEAR ENDING
MARCH 31 JUNE 30 SEPTEMBER 30 DECEMBER 31 DECEMBER 31
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(UNAUDITED) (ESTIMATED RANGES)
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(Dollars in millions, except as noted)
PRODUCTION
Gas (Mmcf) 4,483 4,551 4,680 4,700 - 4,900 18,414 - 18,614
Oil (Mbbls) 156 162 173 158 - 164 649 - 655
Total production (Mmcfe) 5,416 5,520 5,717 5,648 - 5,884 22,301 - 22,537
Production expense per Mcfe $ 1.01 $ 1.03 $ 1.06 $ 0.98 - 1.03 $ 1.01 - 1.04
Production taxes per Mcfe 0.13 0.14 0.10 0.08 - 0.10 0.11 - 0.12
Exploration expense $ 1.4 $ 2.2 $ 2.3 $ 2.0 - 2.5 $ 7.9 - 8.4
General and administrative 1.1 1.0 1.1 1.1 - 1.3 4.3 - 4.5
Gas gathering, marketing and
oilfield services margin 0.5 1.6 1.3 1.3 - 1.6 4.7 - 5.0
To manage its exposure to natural gas price volatility, the Company may
partially hedge its physical gas sales prices by selling futures contracts on
the New York Mercantile Exchange ("NYMEX") or by selling NYMEX based commodity
derivative contracts which are placed with major financial institutions that the
Company believes are minimal credit risks. The contracts may take the form of
futures contracts, swaps, collars or options. The Company's financial results
and cash flows can be significantly impacted as commodity prices fluctuate
widely in response to changing market conditions. Accordingly, the Company may
modify its fixed price contract and financial hedging positions by entering into
new transactions or terminating existing
contracts. The following table reflects the natural gas volumes and the weighted
average prices under financial hedges (including settled hedges), fixed price
contracts and costless collars at September 30, 2001:
NATURAL GAS SWAPS FIXED PRICE CONTRACTS
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ESTIMATED ESTIMATED
NYMEX PRICE WELLHEAD ESTIMATED WELLHEAD
QUARTER ENDING BBTU PER MMBTU PRICE PER MCF MMCF PRICE PER MCF
- -------------------- -------------- --------------- --------------- ---------- -------------
December 31, 2001 2,400 $ 4.77 $ 4.99 1,000 $ 4.42
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March 31, 2002 2,550 $ 4.95 $ 5.20 1,050 $ 4.57
June 30, 2002 2,550 4.61 4.76 780 4.25
September 30, 2002 2,550 4.61 4.76 630 4.30
December 31, 2002 2,550 4.63 4.84 560 4.45
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10,200 $ 4.70 $ 4.89 3,020 $ 4.41
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March 31, 2003 960 $ 3.79 $ 4.04 65 $ 2.50
June 30, 2003 960 3.79 3.94 65 2.50
September 30, 2003 960 3.79 3.94 65 2.50
December 31, 2003 960 3.79 3.99 65 2.50
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3,840 $ 3.79 $ 3.98 260 $ 2.50
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NATURAL GAS COLLARS
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NYMEX PRICE ESTIMATED
PER MMBTU WELLHEAD
QUARTER ENDING BBTU FLOOR/CAP PRICE PER MCF
- ---------------------- -------------- -------------- ---------------
March 31, 2003 1,650 $ 3.40 - 5.23 $ 3.60 - 5.43
June 30, 2003 1,650 3.40 - 5.23 3.60 - 5.43
September 30, 2003 1,650 3.40 - 5.23 3.60 - 5.43
December 31, 2003 1,650 3.40 - 5.23 3.60 - 5.43
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6,600 $ 3.40 - 5.23 $ 3.60 - 5.43
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BBTU - BILLION BRITISH THERMAL UNITS MMCF - MILLION CUBIC FEET
MMBTU - MILLION BRITISH THERMAL UNITS MCF - THOUSAND CUBIC FEET
At September 30, 2001, the natural gas swaps and collars above
represented approximately $28.0 million in unrealized gains.
The Company currently expects to spend approximately $41 million during
2001 on its drilling activities, acquisitions and other capital expenditures.
The Company currently expects to spend $26 million to drill 175 gross (152.4
net) wells in 2001. The Company's actual drilling activity in 2001 will be
impacted by the availability of drilling rigs, other oil field goods and
services and changes in commodity prices.
The Company intends to finance its planned capital expenditures through
its available cash flow, available revolving credit line and the sale of
non-strategic assets. At September 30, 2001, the Company had approximately $42.6
million available under its existing revolving credit line.
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 hereunto duly authorized.
Date: November 13, 2001 BELDEN & BLAKE CORPORATION
----------------- (Registrant)
By: /s/ Robert W. Peshek
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Robert W. Peshek, Vice President
and Chief Financial Officer