8-K 1 d06503e8vk.txt FORM 8-K 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): JUNE 2, 2003 WESTPORT RESOURCES CORPORATION (Exact Name of Registrant as Specified in Charter) NEVADA 001-14256 13-3869719 (State or Other Jurisdiction (Commission (IRS Employer of Incorporation) File Number) Identification No.) 1670 BROADWAY STREET SUITE 2800 DENVER, COLORADO 80202 (Address and Zip Code of Principal Executive Offices) (303) 573-5404 (Registrant's telephone number, including area code) ITEM 5. OTHER EVENTS. SELECTED FINANCIAL DATA In June 2001, the Financial Accounting Standards Board ("FASB") issued Statement of Financial Accounting Standards ("SFAS") No. 143, "Accounting for Asset Retirement Obligations." Westport Resources Corporation ("Westport") adopted SFAS No. 143 on January 1, 2003. SFAS No. 143 requires entities to record the fair value of liabilities for retirement obligations of acquired assets. Westport's asset retirement obligations arise from plugging and abandonment liabilities for its oil and gas wells and offshore platform facilities. Pursuant to the transitional disclosure requirements of SFAS No. 143, the table below sets forth selected consolidated financial data for Westport as of the dates and for the periods indicated from Westport's historical consolidated financial statements, and as adjusted to give pro forma effect to the change in accounting principle as if Statement 143 had been in effect during Westport's three most recent fiscal years. The following data should be read in conjunction with the historical consolidated financial statements and related notes of Westport, "Management's Discussion and Analysis of Financial Condition and Results of Operations," which includes a discussion of factors materially affecting the comparability of the information presented, and other financial information included in Westport's Annual Report on Form 10-K for the fiscal year ended December 31, 2002. Future results may differ substantially from historical results because of changes in oil and natural gas prices, increases or decreases in production or other factors, many of which are beyond Westport's control.
YEAR ENDED DECEMBER 31, --------------------------------------------------------------------- 2002 2001 2000 1999 1998 ---------- ---------- ---------- ---------- ---------- (IN THOUSANDS, EXCEPT PER SHARE DATA) STATEMENTS OF OPERATIONS DATA: Operating revenues: Oil and natural gas sales ............................ $ 429,260 $ 317,278 $ 244,669 $ 83,393 $ 52,057 Hedge settlements .................................... (1,276) 2,091 (24,627) (7,905) 298 Commodity price risk management activities: Non-hedge settlements .............................. 822 15,300 -- -- -- Non-hedge change in fair value of derivatives ...... (26,723) 14,323 (739) -- -- Gain (loss) on sale of operating assets, net ......... (1,685) (132) 3,130 3,637 -- ---------- ---------- ---------- ---------- ---------- Net revenues ..................................... 400,398 348,860 222,433 79,125 52,355 ---------- ---------- ---------- ---------- ---------- Operating costs and expenses: Lease operating expenses ............................. 89,328 55,315 34,397 22,916 21,554 Production taxes ..................................... 23,954 13,407 10,631 5,742 3,888 Transportation costs ................................. 8,791 5,157 3,034 1,725 850 Exploration .......................................... 32,390 31,313 12,790 7,314 14,664 Depletion, depreciation and amortization ............. 203,093 124,059 64,856 25,210 36,264 Impairment of proved properties ...................... 19,700 9,423 2,911 3,072 8,794 Impairment of unproved properties .................... 9,961 6,974 5,124 2,273 1,898 Stock compensation expense, net ...................... 4,608 719 5,539(1) -- -- General and administrative ........................... 23,629 17,678 7,542 5,297 5,913 ---------- ---------- ---------- ---------- ---------- Total operating expenses ........................... 415,454 264,045 146,824 73,549 93,825 ---------- ---------- ---------- ---------- ---------- Operating income (loss) ............................ (15,056) 84,815 75,609 5,576 (41,470) Other income (expense): Interest expense ..................................... (34,836) (13,196) (9,731) (9,207) (8,323) Interest income ...................................... 546 1,668 1,230 489 403 Change in interest rate swap fair value .............. 226 4,960 -- -- -- Other ................................................ 1,002 211 152 16 29 ---------- ---------- ---------- ---------- ---------- Income (loss) before income taxes ................... (48,118) 78,458 67,260 (3,126) (49,361) Benefit (provision) for income taxes ................ 19,552 (28,637) (23,724) -- -- ---------- ---------- ---------- ---------- ---------- Net income (loss) .................................. (28,566) 49,821 43,536 (3,126) (49,361) Preferred stock dividends ........................... 4,762 1,587 -- -- -- ---------- ---------- ---------- ---------- ---------- Net income (loss) available to common stockholders .. $ (33,328) $ 48,234 $ 43,536 $ (3,126) $ (49,361) ========== ========== ========== ========== ========== Net income (loss) per common share: Basic ................................................ $ (0.63) $ 1.11 $ 1.54 $ (0.21) $ (4.49) ========== ========== ========== ========== ========== Diluted .............................................. $ (0.63) $ 1.09 $ 1.52 $ (0.21) $ (4.49) ========== ========== ========== ========== ==========
YEAR ENDED DECEMBER 31, ----------------------------------------------------------------------- 2002 2001 2000 1999 1998 ----------- ----------- ----------- ----------- ----------- (IN THOUSANDS, EXCEPT PER SHARE DATA) Pro forma amounts assuming the change in accounting principle is applied retrospectively: Net income (loss) available to common stockholders ... $ (33,522) $ 46,933 $ 42,220 $ -- $ -- =========== =========== =========== =========== =========== Net income (loss) per common share: Basic ................................................ $ (0.63) $ 1.08 $ 1.49 $ -- $ -- =========== =========== =========== =========== =========== Diluted .............................................. $ (0.63) $ 1.06 $ 1.47 $ -- $ -- =========== =========== =========== =========== =========== Weighted average number of common shares outstanding: Basic ................................................ 53,007 43,408 28,296 14,727 11,004 =========== =========== =========== =========== =========== Diluted .............................................. 53,007 44,168 28,645 14,727 11,004 =========== =========== =========== =========== =========== OTHER FINANCIAL DATA: Net cash provided by operating activities .............. $ 223,197 $ 195,273 $ 143,429 $ 21,279 $ 7,622 Net cash provided by (used in) investing activities .... (814,163) (188,686) (140,169) 17,981 (113,019) Net cash provided by (used in) financing activities .... 606,396 843 (2,581) (29,933) 104,667 Capital expenditures ................................... 827,502 194,244 146,086 14,005 113,008
DECEMBER 31, ----------------------------------------------------------------------- 2002 2001 2000 1999 1998 ----------- ----------- ----------- ----------- ----------- (IN THOUSANDS) BALANCE SHEET DATA (AS OF PERIOD END): Cash and cash equivalents .............................. $ 42,761 $ 27,584 $ 20,154 $ 19,475 $ 10,148 Working capital (deficit) .............................. (11,068) 13,365 20,487 12,837 (30,993) Total assets ........................................... 2,233,541 1,604,216 551,831 271,477 302,302 Total long-term debt ................................... 799,358 429,224 162 105,462 121,333 Total debt ............................................. 799,358 429,224 162 106,795 153,128 Total stockholders' equity ............................. 1,132,006 920,296 458,056 140,011 126,737 Pro forma amounts assuming the change in accounting principle is applied retrospectively: Asset retirement obligation ............................ 58,735 46,419 28,911 13,791 --
---------- (1) Includes compensation expenses of $3.4 million recorded as a result of a one-time repurchase of employee stock options in March 2000 in connection with the merger between Westport Oil and Gas Company, Inc. and Equitable Production (Gulf) Company. [SIGNATURE PAGE FOLLOWS] 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 hereunto duly authorized. WESTPORT RESOURCES CORPORATION Date: June 2, 2003 By: /s/ LON MCCAIN Name: Lon McCain Title: Vice President, Chief Financial Officer and Treasurer