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 22, 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.
OPERATIONAL OUTLOOK FOR 2002
The following table includes estimates given as of November 22, 2002,
that are based on current expectations and currently available information.
These forward-looking statements are subject to a number of risks and
uncertainties which may cause the Company's actual results to differ materially
from the following estimates. The preceding section addresses certain of the
risks and uncertainties to which the Company is subject.
ESTIMATED
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QUARTER ENDING
------------------------------------------------------- YEAR ENDING
MARCH 31 JUNE 30 SEPTEMBER 30 DECEMBER 31 DECEMBER 31
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(UNAUDITED, DOLLARS IN MILLIONS, EXCEPT AS NOTED)
Production
Gas (Mmcf) 4,543 4,404 4,291 4,050 - 4,350 17,288 - 17,588
Oil (Mbbls) 148 143 139 97 - 107 527 - 537
Total production (Mmcfe) 5,431 5,265 5,126 4,632 - 4,992 20,454 - 20,814
Production expense per Mcfe $ 0.95 $ 1.02 $ 1.00 $ 0.96 - 1.01 $ 0.98 - 1.01
Production taxes per Mcfe 0.09 0.10 0.08 0.08 - 0.10 0.08 - 0.10
Exploration expense excluding
exploratory dry hole expense $ 2.1 $ 2.6 $ 3.0 $ 2.0 - 2.6 $ 9.7 - 10.3
General and administrative expense 1.2 1.2 1.1 1.1 - 1.3 4.6 - 4.8
Gas gathering, marketing and
oilfield services margin 1.6 1.0 0.8 0.5 - 1.0 3.9 - 4.4
MMCF - MILLION CUBIC FEET MCFE - THOUSAND CUBIC FEET OF NATURAL GAS EQUIVALENT
MBBLS - THOUSAND BARRELS MMCFE - MILLION CUBIC FEET OF NATURAL GAS EQUIVALENT
The decrease in oil and gas volumes in the fourth quarter of 2002 is
primarily due to the sale of wells in Ohio during the first and third quarters
of 2002 and natural production declines partially offset by production from
wells drilled in 2001 and 2002.
NATURAL GAS HEDGE POSITION
The following table reflects the natural gas volumes and the weighted
average prices under financial hedges (including settled hedges) and fixed price
contracts at November 22, 2002:
NATURAL GAS COLLARS FIXED PRICE CONTRACTS
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MONTHLY NYMEX SETTLE OF $1.75 MONTHLY NYMEX SETTLE
OR HIGHER LOWER THAN $1.75
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ESTIMATED ESTIMATED
NYMEX PRICE ESTIMATED NYMEX WELLHEAD WELLHEAD
PER MMBTU WELLHEAD PRICE PRICE PER PRICE PER ESTIMATED PRICE PER
QUARTER ENDING BBTU FLOOR/CAP PER MCF MMBTU MCF MMCF MCF
- ------------------ ---------- ------------- ----------------- ----------- --------- --------- ---------
December 31, 2002 2,130 $ 2.25 - 4.00 $ 2.47 - 4.22 Monthly Monthly 986 $ 4.09
---------- ------------- ----------------- NYMEX NYMEX -------- ---------
2,130 $ 2.25 - 4.00 $ 2.47 - 4.22 settle plus settle plus 986 $ 4.09
========== ============= ================= $0.50 $0.65 to ======== =========
March 31, 2003 1,290 $ 3.40 - 5.23 $ 3.65 - 5.48 $0.75 250 $ 3.78
June 30, 2003 1,290 3.40 - 5.23 3.55 - 5.38 120 3.42
September 30, 2003 1,290 3.40 - 5.23 3.55 - 5.38 70 2.85
December 31, 2003 1,290 3.40 - 5.23 3.62 - 5.45 60 2.56
------ ------------ ------------ -------- ---------
5,160 $ 3.40 - 5.23 $ 3.59 - 5.42 500 $ 3.42
====== ============== ============== ======== =========
NATURAL GAS SWAPS
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ESTIMATED
NYMEX PRICE WELLHEAD PRICE
QUARTER ENDING BBTU PER MMBTU PER MCF
- ------------------ --------- ---------------- ---------------
December 31, 2002 650 $ 3.77 $ 3.95
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650 $ 3.77 $ 3.95
========= ================ ===============
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 1,500 $ 3.84 $ 4.09
June 30, 2005 1,500 3.73 3.88
September 30, 2005 1,500 3.73 3.88
December 31, 2005 1,500 3.73 3.95
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6,000 $ 3.76 $ 3.95
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BBTU - BILLION BRITISH THERMAL UNITS MMCF - MILLION CUBIC FEET
MMBTU - MILLION BRITISH THERMAL UNITS MCF - THOUSAND CUBIC FEET
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 November 22, 2002, the Company had $11.4 million of outstanding
letters of credit. At November 22, 2002, the outstanding balance under the
credit agreement was $37.0 million with $51.6 million of borrowing capacity
available for general corporate purposes.
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 25, 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