-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, LmmTvG7Ni+emP7PoWhMF3PTf1s1UnPRZP7MP3Yze984J8E3AS0BkqxYCya30rXB6 GAAI9ok8Mqx2VoeRq3J/VQ== 0000033213-99-000001.txt : 19990105 0000033213-99-000001.hdr.sgml : 19990105 ACCESSION NUMBER: 0000033213-99-000001 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990104 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19990104 FILER: COMPANY DATA: COMPANY CONFORMED NAME: EQUITABLE RESOURCES INC /PA/ CENTRAL INDEX KEY: 0000033213 STANDARD INDUSTRIAL CLASSIFICATION: NATURAL GAS TRANSMISSION & DISTRIBUTION [4923] IRS NUMBER: 250464690 STATE OF INCORPORATION: PA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-03551 FILM NUMBER: 99500270 BUSINESS ADDRESS: STREET 1: 420 BLVD OF THE ALLIES CITY: PITTSBURGH STATE: PA ZIP: 15219 BUSINESS PHONE: 4122613000 MAIL ADDRESS: STREET 1: 420 BOULEVARD OF THE ALLIES CITY: PITTSBURGH STATE: PA ZIP: 15219 FORMER COMPANY: FORMER CONFORMED NAME: EQUITABLE GAS CO DATE OF NAME CHANGE: 19841120 8-K 1 FORM 8-K REGARDING COST SAVINGS UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 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 reported) JANUARY 4, 1999 - -------------------------------------------------------------------------------- EQUITABLE RESOURCES, INC. (Exact name of registrant as specified in its charter) PENNSYLVANIA 1-3551 25-0464690 (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) 420 Boulevard of the Allies, Pittsburgh, Pennsylvania 15219 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (412) 261-3000 ----------------------------- NONE (Former name or former address, if changed since last report) Item 5. Other Events The registrant, Equitable Resources, Inc., announced that it expects to record up to $120 million in pretax charges related to restructuring, asset impairment, and other nonrecurring charges in the fourth quarter. Included in this number is a charge for early extinguishment of debt. Item 7. Financial Statements, Pro Forma Financial Information and Exhibits (c) A press release describing more fully the previously announced fourth quarter charges expected for restructuring, asset impairments, other nonrecurring charges and early extinguishment of debt, is filed as Exhibit 99 to this report. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereto duly authorized. EQUITABLE RESOURCES, INC. (Registrant) By /s/ David L. Porges David L. Porges Senior Vice President and Chief Financial Officer January 4, 1999 EX-99 2 NEWS RELEASE ANNOUNCING COST SAVINGS Exhibit 99 December 29, 1998 Contact: Robert Butter, Media 412/553-5911 Robert Atkinson, Analysts 412/553-5768 Equitable Resources Targets $20 Million in Cost Savings PITTSBURGH - Equitable Resources (NYSE: EQT) today announced that it expects to reduce annual operating expenses by approximately $20 million as a result of the implementation of previously announced cost savings measures, reduced interest charges, and lower depreciation and depletion expense. The company said it will record a one-time, pre-tax charge of approximately $60 million in the fourth quarter to account for severance and other costs associated with staff reductions, other restructuring charges, and the early extinguishment of debt. In addition, Equitable will record a one-time, non-cash expense of approximately $60 million, primarily for the writedown of selected natural gas and oil properties located in the Gulf region. This writedown recognizes the lower value for those properties as a result of depressed wellhead prices for oil and natural gas and dry hole costs. In total, the company will record approximately $120 million in charges related to restructuring, asset impairment, and other nonrecurring charges. Included in this number is $13 million ($8 million after-tax) for the early extinguishment of certain higher cost long-term debt, which will be accounted for as an extraordinary item. The cost savings measures were initiated by the company as part of a program to realize a more competitive cost structure in all of its core businesses. To help reduce overhead costs, the company has transferred a number of activities formerly conducted at the corporate level to the business units, reduced corporate staff positions, and streamlined management information systems throughout the corporation. Equitable Utilities is reducing its staffing level to achieve a more competitive cost structure in its distribution and interstate pipeline operations, while improving efficiency and maintaining system reliability and safety. The company has also realigned the management of its production (E&P) business under the new name, Equitable Production. Equitable Production - East Region will manage the Appalachian-area E&P, natural gas gathering, and liquids processing operations. Equitable Production - Gulf Region is responsible for all E&P activities in the offshore Gulf of Mexico. (more) Equitable Resources has combined all non-regulated marketing activities under Equitable Services. This combination brings together the commodity marketing services provided by Equitable Energy and the total energy management services offered by NORESCO. The change will allow the company to more effectively deliver these services to its customers. Equitable Services is reducing its operating expense and overhead with the closing and combining of a number of smaller offices and a reduction in staff. The company said it expects its total number of employees will be fewer than 1,600 by the first of the year, a 20 percent reduction compared to mid-year 1998. Equitable Resources is an integrated energy company, with emphasis on Appalachian area natural gas production, natural gas transmission and distribution and energy services marketing in the northeastern section of the United States. The Company also has exploration and production interests in the Gulf of Mexico and energy service management projects in selected U.S. and international markets. # # # # NOTE: This news release contains forward-looking statements related to such matters as financial performance, business prospects and operational matters. The company notes that a variety of factors could cause the actual results to differ materially from anticipated results or other expectations expressed in the company's forward-looking statements. The risks and uncertainties that may affect the operations, performance, development and results of the company business include, but are not limited to, the following: weather conditions, the pace of deregulation of retail natural gas and electricity markets, the timing and extent of changes in commodity prices for gas and oil, changes in interest rates, the timing and extent of the company's success in acquiring gas and oil properties and in discovering, developing and producing reserves, the inability of the company or others to remediate Year 2000 concerns in a timely fashion, delays in obtaining necessary governmental approvals and the impact of competitive factors on profit margins in various markets in which the company competes. -----END PRIVACY-ENHANCED MESSAGE-----