SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date or Report (Date of earliest event reported)
February 10, 1998
EEX CORPORATION
(Exact name of Registrant as specified in its charter)
Texas 1-12905 752421863
(State or other (Commission (I.R.S. Employer
jurisdiction of File Number) Identification No.)
incorporation)
2500 CityWest Boulevard, Suite 1400, Houston, Texas 77042
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including Area Code (713)243-3100
ITEM 5. OTHER EVENTS
Set forth below in their entirety are two (2) News Releases
issued by EEX Corporation on February 10, 1998:
EEX REPORTS FINANCIAL RESULTS
HOUSTON, TEXAS (February 10, 1998) -- EEX Corporation
(NYSE: EEX) reported a net loss for the fourth quarter
ending December 31, 1997 of $19 million, or $0.15 per share,
compared to a restated $10 million loss, or $0.08 per share,
for the same period a year ago. During the fourth quarter,
the Company continued its program of restructuring assets
and deploying resources from onshore U. S. into its Gulf of
Mexico and international focus areas. As part of that
program, the Company sold onshore assets in the fourth
quarter with a net book value of $24 million and realized a
gain of $45 million ($29 million after-tax). EEX's new
independent reserve engineers, Netherland, Sewell &
Associates, completed their review of the company's oil and
gas reserves begun in the third quarter of 1997. As a
result of this review, the Company reported year end
reserves of approximately 600 Bcfe net of revisions, asset
sales and reserve additions. This review resulted in
property impairment amounting to $50 million in the fourth
quarter. Excluding these non-recurring items, net income
for the fourth quarter of 1997 was break-even versus a
restated loss of $14 million in the fourth quarter of 1996.
"1997 was a year of significant transition for EEX. We
are now focused on the dramatic growth potential of our
deepwater Gulf of Mexico program as we follow up on our
recent Llano discovery," said Tom Hamilton, Chairman and
President, Chief Executive Officer.
For the twelve months ended December 31, 1997, the
Company reported a restated net loss of $216 million or
$1.71 per share, compared to a restated net loss of $37
million, or $0.29 per share, for the twelve months of 1996.
Included in 1997 results are non-recurring items including
expenses associated with the Company's restructuring
program, impairment of producing oil and gas properties
and gains on sales of property, plant and equipment. After
adjusting for these items, the twelve-month results for 1997
were a loss of $33 million versus a $56 million loss for the
full year of 1996.
(more)
Revenues of $74 million in the fourth quarter of 1997
and $314 million for the entire year were lower when
compared to the same periods in 1996, primarily due to lower
average crude oil prices and lower crude oil and natural gas
sales volumes. Lower volume resulted primarily from
property sales. However, lower revenues were offset by
lower expenses in 1997 versus 1996, primarily from reduction
in operating costs, G&A, exploration costs and DD&A
expenses.
EEX Corporation is a natural gas and oil exploration
and production company with activities currently focused in
Texas and the Gulf of Mexico.
(more)
This report includes forward-looking statements within the
meaning of Section 27A of the Securities Act of 1993 and
Section 21E of the Securities Exchange Act of 1934.
Although EEX believes that its expectations are based on
reasonable assumptions, it can give no assurance that its
goals will be achieved. Important factors that could cause
actual results to differ materially from those in the
forward-looking statements include political developments in
foreign countries, federal and state regulatory
developments, the timing and extent of changes in commodity
prices, the timing and extent of success in discovering,
developing and producing or acquiring oil and gas reserves,
and conditions of the capital and equity markets during the
periods covered by the forward-looking statements.
For additional information, call 1-888-EEX-NEWS, or visit
our Website at http://www.eex.com
EEX CORPORATION
FINANCIAL OPERATING HIGHLIGHTS
Three Months Year Ended
Ended December December 31
31
(Unaudited)
1997 1996 1997 1996
(Resta (Resta
ted) ted)
INCOME STATEMENT DATA
(In thousands - except per
share data)
Natural gas $44,928 $56,196 $199,754 $217,968
Oil and condensate 19,799 27,945 91,029 98,529
Natural gas liquids 4,193 1,656 9,161 8,099
Cogeneration operations 4,910 3,345 13,297 11,400
Other 89 524 972 2,150
Total revenues 73,919 89,666 314,213 338,146
Production and operating
expenses 11,643 14,985 48,960 70,325
Exploration 5,386 25,209 70,599 93,544
Depreciation and amortization 32,132 48,836 144,485 169,864
Impairment of producing oil
and gas properties 49,910 - 260,112 -
Loss (Gain) on sales of
property, plant
and equipment (44,914) (5,792) (52,917) (30,175)
Unusual charges - net 693 - 27,105 -
Cogeneration operations 2,639 2,371 10,381 9,924
General, administrative and
other 6,304 10,996 28,485 34,995
Taxes, other than income and
payroll 3,732 5,497 17,356 21,715
Total expenses 67,525 102,102 554,566 370,192
Operating income (loss) 6,394 (12,436) (240,353) (32,046)
Interest and other - net (4,587) (3,818) (29,770) (24,791)
Income (loss) before income
taxes 1,807 (16,254) (270,123) (56,837)
Income tax expense (benefit) 15,720 (5,727) (58,945) (20,036)
Minority interest (4,852) - (4,925) -
Net income (loss) $(18,765) $(10,527) $(216,103) $(36,801)
Basic and diluted net income
(loss) per share (0.15) (0.08) (1.71) (0.29)
Weighted average shares
outstanding 126,641 126,632 126,641 126,557
CASH FLOW DATA (In thousands)
Cash flow from operating
activities $44,502 $21,954 $87,389 $140,011
Capital expenditures 51,625 23,837 180,147 174,349
SALES VOLUMES
Natural gas (MMcf) 20,296 24,043 84,469 100,544
Crude Oil (MBbls) 1,091 1,354 4,753 5,080
Natural gas liquids (MBbls) 299 88 664 660
Total volumes (Mmcfe) 28,636 32,695 116,911 134,984
AVERAGE SALES PRICE
Natural gas (per Mcf) $2.21 $2.34 $2.36 $2.17
Crude Oil (per Bbl) 18.15 20.64 19.19 19.40
Natural gas liquids (per Bbl) 14.02 18.82 13.80 12.27
###
EEX DOUBLES INTEREST IN TUBAN BLOCK IN INDONESIA
HOUSTON, TEXAS (February 10, 1998) -- EEX Corporation
(NYSE: EEX) has entered into an agreement with Risjad Salim
Petroleum (Tuban) Ltd. ("RSP") to acquire, as of January 1,
1998, RSP's 25% participation interest in the Tuban
Production Sharing Contract located on the island of Java in
Indonesia. This transaction will increase EEX's interest in
the Tuban block to 50%. In addition to several exploration
prospects, the Tuban block contains the Mudi field, which
began producing in late 1997 and is expected to reach a
production level of 20,000 barrels per day by the end of the
first quarter. In return for the RSP interest, EEX will pay
approximately $40 million plus a portion of future net
profits.
"This acquisition fits our strategy to redeploy
proceeds from non-core asset sales into growth areas with
greater upside potential and higher returns," said Tom
Hamilton, Chairman and President, Chief Executive Officer.
EEX Corporation is a natural gas and oil exploration
and production company with activities currently focused in
Texas and the Gulf of Mexico.
###
This report includes forward-looking statements within the
meaning of Section 27A of the Securities Act of 1993 and
Section 21E of the Securities Exchange Act of 1934.
Although EEX believes that its expectations are based on
reasonable assumptions, it can give no assurance that its
goals will be achieved. Important factors that could cause
actual results to differ materially from those in the
forward-looking statements include political developments in
foreign countries, federal and state regulatory
developments, the timing and extent of changes in commodity
prices, the timing and extent of success in discovering,
developing and producing or acquiring oil and gas reserves,
and conditions of the capital and equity markets during the
periods covered by the forward-looking statements.
For additional information, call 1-888-EEX-NEWS, or visit
our Website at http://www.eex.com
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.
EEX Corporation
By: /s/ R. E. Schmitz
-------------------
R. E. Schmitz
Vice President and
Controller
Date: February 12, 1998