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) September 18, 2002
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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 (Commission File Number) (IRS Employer
of 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 Securities
Exchange Act of 1934 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 Securities Exchange Act of 1934 or incorporates it
by reference into a filing under the Securities Act of 1933 or the Securities
Exchange Act of 1934. 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.
NATURAL GAS HEDGE POSITION
From September 18, 2002 through September 20, 2002, the Company placed
additional hedge positions covering 8,130 Bbtu of its natural gas production for
the period from October 2002 through December 2004. The hedges are in the form
of swaps based on a New York Mercantile Exchange ("NYMEX") equivalent weighted
average price of $3.92 per Mmbtu.
In aggregate, since August 30, 2002, the Company has placed additional
hedge positions covering 16,860 Bbtu of its natural gas production for the
period from October 2002 through March 2005. The hedges are in the form of swaps
based on a NYMEX equivalent weighted average price of $3.88 per Mmbtu.
The Company has a $100 million revolving credit facility ("the
Revolver"). Up to $30 million in letters of credit may be issued pursuant to the
Revolver. At September 20, 2002, the Company had $10.8 million of outstanding
letters of credit of which $9.5 million was required due to the Company's hedge
positions. At September 20, 2002, the outstanding balance under the credit
agreement was $35.8 million with $53.4 million of borrowing capacity available
for general corporate purposes.
The following table reflects the natural gas volumes and the weighted
average prices under financial hedges (including settled hedges) and fixed price
contracts at September 20, 2002:
NATURAL GAS COLLARS FIXED PRICE CONTRACTS
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MONTHLY NYMEX SETTLE OF MONTHLY NYMEX SETTLE
$1.75 OR HIGHER LOWER THAN $1.75
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ESTIMATED ESTIMATED
NYMEX PRICE ESTIMATED NYMEX WELLHEAD WELLHEAD
PER MMBTU WELLHEAD PRICE PER PRICE PER ESTIMATED PRICE PER
QUARTER ENDING BBTU FLOOR/CAP PRICE PER MCF MMBTU MCF MMCF MCF
- ------------------- ------- -------------- -------------- ------------ ------------- ---------- ----------
December 31, 2002 2,130 $ 2.25 - 4.00 $ 2.47 - 4.22 Monthly Monthly 830 $ 4.12
------ -------------- -------------- NYMEX NYMEX ---- ------
2,130 $ 2.25 - 4.00 $ 2.47 - 4.22 settle plus settle plus 830 $ 4.12
====== ============== ============== $0.50 $0.65 to $0.75 ==== ======
March 31, 2003 1,650 $ 3.40 - 5.23 $ 3.65 - 5.48 180 $ 3.48
June 30, 2003 1,650 3.40 - 5.23 3.55 - 5.38 110 3.12
September 30, 2003 1,650 3.40 - 5.23 3.55 - 5.38 75 2.68
December 31, 2003 1,650 3.40 - 5.23 3.62 - 5.45 70 2.59
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6,600 $ 3.40 - 5.23 $ 3.59 - 5.42 435 $ 3.11
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NATURAL GAS SWAPS
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ESTIMATED
NYMEX PRICE WELLHEAD
QUARTER ENDING BBTU PER MMBTU PRICE PER MCF
- ------------------- ------- -------------- --------------
December 31, 2002 800 $ 3.82 $ 4.00
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800 $ 3.82 $ 4.00
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March 31, 2003 1,800 $ 3.92 $ 4.17
June 30, 2003 1,800 3.92 4.07
September 30, 2003 1,800 3.92 4.07
December 31, 2003 1,800 3.92 4.14
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7,200 $ 3.92 $ 4.12
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March 31, 2004 2,040 $ 3.84 $ 4.09
June 30, 2004 2,040 3.84 3.99
September 30, 2004 2,040 3.84 3.99
December 31, 2004 2,040 3.84 4.06
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8,160 $ 3.84 $ 4.03
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March 31, 2005 1,050 $ 3.87 $ 4.12
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1,050 $ 3.87 $ 4.12
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BBTU - BILLION BRITISH THERMAL UNITS MMCF - MILLION CUBIC FEET
MMBTU - MILLION BRITISH THERMAL UNITS MCF - THOUSAND CUBIC FEET
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: SEPTEMBER 24, 2002 BELDEN & BLAKE CORPORATION
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(Registrant)
By: /s/ Robert W. Peshek
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Robert W. Peshek, Vice President
and Chief Financial Officer