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SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-K
Annual Report Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
For Fiscal Year Ended December 31, 2000 Commission File Number 0-9669
CALCASIEU REAL ESTATE AND OIL CO., INC.
(Exact Name of registrant as specified in its charter)
Louisiana 72-0144530
(State of other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
One Lakeside Plaza 70601
Lake Charles, Louisiana (Zip Code)
(Address of principal executive offices)
Registrant's telephone number, including area code: (337) 494-4256
Securities registered pursuant to Section 12(b) of the Act:
Title of each Class Name of each exchange
------------------- ---------------------
on which registered
-------------------
None Not Applicable
Securities registered pursuant to Section 12(g) of the Act:
Common Stock, No Par Value
(Title of Class)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 of 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes x No_______
-------
State the aggregate market value of the voting stock held by non-affiliates of
the registrant. Trading in the Company's common stock is limited and sporadic
and its common stock has no readily established market value.
Indicate the number of shares outstanding of each of the registrant's classes of
common stock as of the latest practicable date. Common Stock, No Par Value,
1,951,446 shares outstanding at February 28, 2001.
Documents Incorporated by Reference
Document Part of Form 10K
-------- ----------------
Definitive Proxy Statement Parts I and III
Part 1
Item 1. BUSINESS
--------
The registrant, Calcasieu Real Estate and Oil Co., Inc., (the "Company")
was incorporated under Louisiana law in 1930 to hold real estate and royalty
interests located in Southwest Louisiana.
The principal office of the Company is One Lakeside Plaza, Lake Charles,
Louisiana. The business of the Company is conducted primarily at the principal
offices of its officers, who have other full-time employment.
The principal business of the Company has been the ownership and
preservation of the assets acquired at the Company's organization and
subsequently. The Company's primary activities have consisted of leasing its
properties and collecting rents and royalties derived therefrom. The mineral
interests of the Company are located in the Parishes of Calcasieu, Allen,
Acadia, Cameron, St. Landry, St. Mary, Vermilion and Jefferson Davis in
Louisiana. The Company owns approximately 12,170 acres of land in fee in the
Parishes of Allen, Beauregard, Calcasieu, Cameron, Jefferson Davis, LaFourche,
Sabine, St. Landry and Vermilion in Louisiana. Most of the Company's land and
mineral interests are located within 100 miles of the City of Lake Charles, in
southwestern and central Louisiana.
Of this total, 5,701 represents a 1/6th interest in 34,189 acres, which is
managed by Walker Louisiana Properties, a joint venture consisting of the land
owners. The Company also owns a 40% interest in 1,577 of these acres. Of the
Walker Louisiana acreage, the Company does not own minerals on the acres.
In April, 1992, the Company purchased a 100% interest in the surface rights
and a 50% interest in the mineral rights to 952 acres, consisting of mainly
timber lands located in Beauregard and Calcasieu Parishes. There is no
production on this acreage.
On October 29, 1997, Calcasieu Real Estate and Oil Co., Inc. purchased
3,496 acres of agricultural land in Cameron Parish, Louisiana, from Amoco
Production for $1,663,000. No minerals were included in the purchase.
Operations
- ----------
The Company's income is derived primarily from its oil and gas properties.
Agriculture and timber income are the next largest sources of income. Additional
oil and gas income in the future will come from discoveries on the Company's
land.
1
Industry Segments
- -----------------
The purchase of additional real estate in 1990, 1992, 1997, and 1999 has
created "Agricultural Properties" and "Timber Properties" as additional industry
segments because revenues from these properties exceed 10% of total revenues.
The Company also receives mineral rentals and royalties from some of these
properties. Note 7 to the Financial Statements on page 24 sets forth information
on the business segments.
Employees
- ---------
The Company currently employs a total of five persons in a part-time
capacity. The Company is subject to no union contracts nor does the Company have
any pension, profit sharing or deferred compensation plans.
Customers
- ---------
The Company had one customer, the sales to which equal or exceed 10% of the
Company's total revenues. In 2000, sales to Neumin Production accounted for 65%
of revenues.
Item 2. PROPERTIES
----------
Until early 1990, the Company owned 2,022 acres in fee, a 50% undivided
interest in 440 acres, and a 40% undivided interest in 1,748 acres of immovable
(real) property located in the parishes of Allen, Beauregard, Calcasieu,
Jefferson Davis, Sabine and St. Landry in Louisiana. The Company also owns a 20%
interest in the minerals under approximately 3,330 surface acres, and a 40%
interest in the minerals under approximately 160 surface acres, located in the
parishes of Acadia, Allen, Cameron, Jefferson Davis, St. Landry, St. Mary and
Vermilion in Louisiana. All of the foregoing property is located in southwestern
and central Louisiana, within approximately 100 miles of the City of Lake
Charles. Approximately half of the acreage in which only mineral interests are
held is in oil and gas production. In addition, the Company owns fractional
royalty interest in 36 properties covering 6,040 gross acres in eight parishes
in Louisiana.
In February of 1990 the Company acquired a 12.5% undivided fee interest in
34,309 acres (4,289) net acres) located in the Louisiana parishes of Allen,
Beauregard, Calcasieu, Cameron, Jefferson Davis, Sabine and Vermilion, and in
1999 the Company acquired an additional 4.17% interest in the same acreage. A
portion of these lands are the same as the 1,748 acres in which the company
owned a 40% position described in the first paragraph above. This property
consists of 17,088 gross acres of agriculture land, 7,572 acres of commercial
timber, 4,196 acres in pasture, 4,253 acres of marsh land and 1,200 acres for
future subdivision as it is contiguous to the city limits of Lake Charles. The
company participates in oil and gas production in Southeast Lunita Field, Lake
Arthur Field, Edgerly Field, Welsh Field and North Indian Village Field. The
largest oil and gas income in 2000 came from the company's 50% ownership in 443
acres that are located in the North English Bayou Field, Calcasieu Parish,
2
developed and operated by Neumin Production Company. The Company has also
participated for its 1/6th interest in the granting of oil and gas leases which
are yet to be drilled on Walker Louisiana acreage.
In April of 1992, the Company purchased 952 acres of timberland in
Calcasieu and Beauregard Parishes for $475,000.
On October 29, 1997, Calcasieu Real Estate and Oil Co., Inc. purchased
3,496 acres of land in Cameron Parish, Louisiana, from Amoco Production Company
for $1,663,000.
The table below shows, for the years ended December 31, 2000, December 31,
1999, and December 31, 1998, net gas produced in thousands of cubic feet (MCF)
and net oil (including condensate and natural gas liquids) produced in barrels
(Bbl), average sales prices and average production costs, relating to oil and
gas attributable to the royalty interests and working interest held by the
Company.
Year Ended Year Ended Year Ended
12/31/98 12/31/99 12/31/00
---------- ---------- ----------
Net gas produced (MCF) 169,595 364,883 338,352
Average gas sales price (Per MCF)(1) $ 2.31 $ 2.28 $ 3.56
Net Oil Produced (Bbl) 8,196 32,987 10,258
Average Oil Sales price (Per Bbl)(1) $ 13.28 $ 16.58 $ 27.55
Average sales price of oil and gas per $ 2.47 $ 3.63 $ 3.72
MCF equivalent (1)(2)
Average production cost of oil and gas
per MCF equivalent (2)
Royalty Interests .11 .13 .16
Working Interests 3.06 1.48 .81
(1) Before deduction of production
and severance taxes.
(2) Oil production is converted to
MCF equivalents at the rate of 6
MCF's per barrel, representing the
approximate relative energy content
of oil and natural gas.
Item 3. LEGAL PROCEEDINGS
-----------------
The Company is a co-defendant in a lawsuit filed by owners of eighty acres,
which the defendants owned the minerals. The landowners are asserting that the
mineral interest proscribed. Company's counsel has advised that he cannot offer
an opinion on the outcome awaiting review of the facts. The defendants intend to
defend the suit vigorously.
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
---------------------------------------------------
There were no matters submitted to security holders during the fourth
quarter.
3
PART II
-------
Item 5. MARKET FOR THE REGISTRANT'S COMMON STOCK AND RELATED
-----------------------------------------------------
SECURITY HOLDER MATTERS
------------------------
As of February 28, 2001, the common stock of Calcasieu Real Estate and
Oil Co., Inc. was owned by 724 stockholders. During the three years preceding
the date hereof, there has been only limited and sporadic trading in the
Company's Common Stock, principally among its shareholders.
In the year ended December 31, 2000, 152,500 shares were traded with a
high of 4 1/2 and a low of 2 3/4. The last trade during this period was on
December 14, 1999, for 8,000 shares at a price of 4 1/2. Below is the trading
range.
Volume High Low
------ ---- ---
01/01/99 - 03/31/99 12,900 4 1/2 4
04/01/99 - 06/30/99 58,900 6 4 1/2
07/01/99 - 09/30/99 27,100 8 5 1/4
10/01/99 - 12/31/99 53,600 6 4 1/4
Dividends were paid per share on Common Stock as follows by record date:, March
27, 1998, $.03; June 26, 1998, $.03; September 30, 1998, $.03; September 30,
1999, $.03; December 28, 1999, $.05; March 29, 2000, $.05; June 30, 2000, $.05;
September 27, 2000, $.05; December 29, 2000, $.05 regular and $.05 extra. There
are no restrictions on the paying of dividends.
Item 6. SELECTED FINANCIAL DATA
-----------------------
Ended Ended Ended Ended Ended
12/31/96 12/31/97 12/31/98 12/31/99 12/31/00
---------- ---------- ---------- ---------- ----------
Revenues $ 672,294 $ 967,632 $ 897,027 $2,646,491 $2,497,118
Income before income taxes 1,244,583 776,445 585,182 2,279,814 2,144,821
Earnings per common share (1) .40 .26 .20 .78 .73
Total assets $3,445,721 $4,307,077 $4,759,327 $5,212,540 $6,035,717
Cash Dividends declared per
common stock .09 .12 .09 .08 .25
(1) Earnings per common share presented are based on the weighted average
outstanding shares of about 1,955,000 in 2000, 1,979,000 in 1999, 1,995,000
in 1998, 1,997,000 in 1997 and 1,997,000 in 1996.
4
Item 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
-------------------------------------------------
CONDITION AND RESULTS OF OPERATIONS
-----------------------------------
Income after taxes was down 7% in 2000 from 1999. The Company had a
decrease in revenues of 6% in 2000 from 1999 and a decrease in expenses of 4%.
The increase in gas prices more than offset the decrease in gas production in
2000 from 1999. The decrease in oil production in 2000 from 1999 was not offset
by the increase in oil prices. Timber sales increased 49% in 2000 over 1999 due
in large part to cuttings to recoup timber damaged by fire.
Information on the oil and gas properties is included in the notes to
financial statements, specifically as to reserve quantities and standardized
measure of discounted net cash flows. Both of those are unaudited.
Management believes that the company's revenues will be sufficient to
meet its existing capital needs and the needs of its anticipated future
operations. Long-term trends will depend upon the ability of management to find
new production to replace the depletion of the Company's present minerals.
Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
-------------------------------------------
All Financial statements required by Regulation S-X are listed in the
Table of Contents to Financial Statements and Supplemental Schedules appearing
immediately after the signature page of this Form 10K and are included herein by
reference. See Item 14.
Item 9. DISAGREEMENTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
----------------------------------------------------
Not applicable
PART III
Item 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
--------------------------------------------------
The information required by Item 10 as to directors is included in the
Registrant's definitive proxy statement to be filed pursuant to Section 14(a) of
the Securities Exchange Act of 1934 and is included herein by reference.
Executive officer of Registrant as of February, 2001, are as follows:
Name Age Position with Registrant
---- --- ------------------------
Arthur Hollins, III 70 President & Director
William D. Blake 68 Vice President, Treasurer and Director
Charles D. Viccellio 67 Vice President, Secretary and Director
5
The occupations of such excessive officers during the last five years and other
principal affiliations are:
Name
----
Arthur Hollins, III Director of the Company since 1975; President of
the Company since 1979; Chairman of the Board at
the First National Bank of Lake Charles from 1968
to 1999; President of Bank One, Southwest
Louisiana, from 1998 to April, 1999.
William D. Blake Director of the Company since 1966; Secretary-
Treasurer of the Company from 1966-1979; Vice-
President and Treasurer of the Company since 1979;
President of Lacassane Co., Inc. and Howell
Industries, Inc.; Director of Sweetlake Land and
Oil Co., Inc.
Charles D. Viccellio Vice-President and Secretary of the Company since
1997 and Director of the Company since 1996.
Partner in the law firm of Stockwell, Sievert,
Viccellio, Clements & Shaddock, LLP.
Item 11. EXECUTIVE COMPENSATION
----------------------
The information required by Item 11 is included in the Registrant's
definitive proxy statement to be filed pursuant to Section 14(a) of the
Securities and Exchange Act of 1934 and is included herein by reference.
Item 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
---------------------------------------------------
MANAGEMENT
----------
The information required by Item 12 is included in the Registrant's
definitive proxy statement to be filed pursuant to Section 14(a) of the
Securities Exchange Act of 1934 and is included herein by reference.
PART IV
Item 13. EXHIBITS, FINANCIAL STATEMENTS, SCHEDULES AND REPORTS ON FORM 8-K
-----------------------------------------------------------------
(a) The following documents are filed as part of the report:
1. All Financial Statements. See Table of Contents to Financial
Statements and schedule on page 8.
2. Financial Statement Schedules. See Table of Contents to
Financial Statements and Schedules on page 8.
3. List of Exhibits - None
(b) Reports on Form 8-K - None
6
SIGNATURES
Pursuant to the requirement of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the registrant has duly caused this registration statement
to be signed on its behalf by the undersigned, thereunto duly authorized.
CALCASIEU REAL ESTATE AND OIL CO., INC.
BY: /s/ Arthur Hollins, III
-----------------------------------
Arthur Hollins, III, President
Dated March 5, 2001
Pursuant to the requirements of the Securities Act of 1934, this report has
been signed below by the following persons in the capacities with regard to
Calcasieu Real Estate and Oil Co., Inc. and on the date indicated:
President
Arthur Hollins, III (Chief Executive Officer and Director)
------------------------------
Vice President & Treasurer
William D. Blake (Principal Financial Officer and Director)
------------------------------
Charles D. Viccellio Vice President & Secretary, (Director)
------------------------------
Henry C. Alexander Director
------------------------------
Troy A. Freund Director
------------------------------
Laura A. Leach Director
------------------------------
Frank O. Pruitt Director
------------------------------
B. James Reaves, III Director
------------------------------
Mary W. Savoy Director
------------------------------
Dated: March 5, 2001
7
CALCASIEU REAL ESTATE & OIL CO., INC.
Lake Charles, Louisiana
C O N T E N T S
Page
INDEPENDENT AUDITOR'S REPORT ON THE FINANCIAL STATEMENTS
AND SUPPLEMENTARY INFORMATION 9
FINANCIAL STATEMENTS
Balance sheets 10
Statements of income 11
Statements of changes in stockholders' equity 12-13
Statements of cash flows 14-15
Notes to financial statements 16-28
SUPPLEMENTARY INFORMATION
Property, plant and equipment 29
Accumulated depreciation, depletion and amortization 30
SCHEDULE OMITTED
Schedules, other than those listed above, have been omitted
because of the absence of the conditions under which they
are required or because the required information is included
in the financial statements or notes thereto.
[LETTERHEAD OF McELROY, QUIRK & BURCH]
INDEPENDENT AUDITOR'S REPORT
To the Board of Directors
Calcasieu Real Estate & Oil Co., Inc.
Lake Charles, Louisiana
We have audited the accompanying balance sheets of Calcasieu Real Estate &
Oil Co., Inc. as of December 31, 2000 and 1999, and the related statements of
income, changes in stockholders' equity, and cash flows for the years ended
December 31, 2000, 1999 and 1998. These financial statements are the
responsibility of the Company's management. Our responsibility is to express an
opinion on these financial statements based on our audits. We did not audit the
financial statements of the Co-owners' Undivided Two-Thirds Interest in Walker
Louisiana Properties as of and for the year ending December 31, 1998, of which
Calcasieu Real Estate & Oil Co., Inc. owns a twenty-five percent undivided
interest. The twenty-five percent undivided interest consists of total assets of
$1,781,597 as of December 31, 1998, and total revenues of $443,421 for the year
then ended. Those statements were audited by other auditors whose report has
been furnished to us, and in our opinion, insofar as it relates to the amounts
included for the Co-Owners' Undivided Two-Thirds Interest in Walker Louisiana
Properties, is based solely on the report of the other auditors.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, based on our audits and the report of the other auditors,
the financial statements referred to above present fairly, in all material
respects, the financial position of Calcasieu Real Estate & Oil Co., Inc. as of
December 31, 2000 and 1999, and the results of its operations and its cash flows
for the years ended December 31, 2000, 1999 and 1998, in conformity with
generally accepted accounting principles.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplementary information on pages 31
and 32 is presented for the purposes of additional analysis and is not a
required part of the basic financial statements. Such information has been
subjected to the auditing procedures applied in the audit of the basic financial
statements and, in our opinion, is fairly stated in all material respects in
relation to the basic financial statements taken as a whole.
/S/ McElroy, Quirk & Burch
Lake Charles, Louisiana
March 2, 2001
9
CALCASIEU REAL ESTATE & OIL CO., INC.
BALANCE SHEETS
December 31, 2000 and 1999
ASSETS 2000 1999
---------- ---------
CURRENT ASSETS
Cash and cash equivalents $ 638,063 $ 471,821
Accounts receivable 129,220 452,955
Inventory-harvested crops 4,427 10,281
Prepaid income taxes 74,878 --
Prepaid expense and other 3,309 674
----------- ----------
Total current assets 849,897 935,731
----------- ----------
SECURITIES AVAILABLE-FOR-SALE 1,058,359 76,267
----------- ----------
PROPERTY AND EQUIPMENT (less accumulated depreciation,
depletion and amortization of $449,424 in 2000 and
$450,507 in 1999) 97,103 98,563
Timber (less accumulated depletion of $258,968 in 2000
and $213,876 in 1999) 414,458 486,188
Land 3,615,900 3,615,791
----------- ----------
4,127,461 4,200,542
----------- ----------
$6,035,717 $5,212,540
=========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Trade payables and accrued expenses $ 15,082 $ 11,144
Dividends payable 195,504 98,938
Income taxes payable:
Current -- 151,282
Deferred, net 30,614 20,173
----------- ----------
Total current liabilities 241,200 281,537
----------- ----------
STOCKHOLDERS' EQUITY
Common stock, no par value; 3,000,000 shares authorized;
2,100,000 shares issued 72,256 72,256
Retained earnings 6,004,642 5,059,618
Accumulated other comprehensive income 24,448 12,086
----------- ----------
6,101,346 5,143,960
Less cost of treasury stock (2000 144,956 shares and
1999 125,648 shares) 306,829 212,957
----------- ----------
5,794,517 4,931,003
----------- ----------
$6,035,717 $5,212,540
=========== ==========
See Notes to Financial Statements.
10
CALCASIEU REAL ESTATE & OIL CO., INC.
STATEMENTS OF INCOME
Years Ended December 31, 2000, 1999 and 1998
2000 1999 1998
---------- ---------- ----------
Revenues $2,497,118 $2,646,491 $ 897,027
---------- ---------- ----------
Costs and expenses:
Oil and gas production 78,176 84,605 50,511
Agricultural 10,601 12,886 10,935
Timber 61,359 45,651 17,324
Depreciation, depletion and amortization 38,490 20,484 16,817
---------- ---------- ----------
188,626 163,626 95,587
---------- ---------- ----------
Income from operations 2,308,492 2,482,865 801,440
---------- ---------- ----------
Other income (expense):
Interest income 38,907 22,508 17,022
Dividends on stock 11,402 2,159 1,799
Realized gain on sale of investments in
available-for-sale securities -- -- 13,172
Gain on sale of assets 414 31,536 --
General and administrative (214,394) (207,962) (180,381)
Interest expense -- (51,292) (67,870)
---------- ---------- ----------
(163,671) (203,051) (216,258)
---------- ---------- ----------
Income before income taxes 2,144,821 2,279,814 585,182
---------- ---------- ----------
Federal and state income taxes:
Current 706,592 732,622 180,987
Deferred 2,200 2,132 264
---------- ---------- ----------
708,792 734,754 181,251
---------- ---------- ----------
Net income (per common share):
2000 $.73; 1999 $.78; 1998
$.20 $ 1,436,029 $1,545,060 $ 403,931
=========== ========== ===========
See Notes to Financial Statements.
11
CALCASIEU REAL ESTATE & OIL CO., INC.
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
Years Ended December 31, 2000, 1999 and 1998
Accumulated
Other Capital
Comprehensive Retained Comprehensive Stock Treasury
Income Earnings Income Issued Stock
------------- --------- ------------- -------- ----------
Balance, January 1, 1998 $ -- $3,445,006 $ 7,364 $ 72,256 $ 137,703
Comprehensive income:
Net income 403,931 403,931 -- -- --
Other comprehensive income:
Unrealized gains on securities
available for sale:
Unrealized holding gains
occurring during period net
of taxes of $2,949 4,423 -- -- -- --
Less reclassification
adjustment for gains included
in net income, net of taxes
of $5,269 (7,903) -- -- -- --
----------
Other comprehensive income, net
of tax (3,480) -- (3,480) -- --
----------
Total comprehensive income $ 400,451
==========
Purchase of treasury stock -- -- -- 55,650
Dividends (179,744) -- -- --
---------- -------- ---------- ----------
Balance, December 31, 1998 3,669,193 3,884 72,256 193,353
Comprehensive income:
Net income $1,545,060 1,545,060 -- -- --
Other comprehensive income:
Unrealized gains on securities
available for sale:
Unrealized holding gains
occurring during period net
of taxes of $5,568 8,202 -- -- -- --
----------
Other comprehensive income, net
of tax 8,202 -- 8,202 -- --
----------
Total comprehensive income $1,553,262
==========
(continued on next page)
12
CALCASIEU REAL ESTATE & OIL CO., INC.
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
Years Ended December 31, 2000, 1999 and 1998
(Continued)
Accumulated
Other Capital
Comprehensive Retained Comprehensive Stock Treasury
Income Earnings Income Issued Stock
------------- ---------- -------------- -------- ---------
Purchase of treasury stock -- -- -- 19,604
Dividends (158,300) -- -- --
Refund of prior year unclaimed
dividends and other 3,665 -- -- --
----------- -------- -------- --------
Balance, December 31, 1999 5,059,619 12,086 72,256 212,957
Comprehensive income:
Net income $1,436,029 1,436,029
Other comprehensive income:
Unrealized gains on securities
available for sale:
Unrealized holding gains
occurring during period net
of taxes of $8,240 12,362
----------
Other comprehensive income, net
of tax 12,362 12,362
----------
Total comprehensive income $1,448,391
==========
Purchase of treasury stock
Dividends (492,548) 93,872
Refund of prior year unclaimed
dividends and other 1,542
----------- -------- -------- --------
Balance, December 31, 2000 $ 6,004,642 $ 24,448 $ 72,256 $306,829
=========== ======== ======== ========
See Notes to Financial Statements.
13
CALCASIEU REAL ESTATE & OIL CO., INC.
STATEMENTS OF CASH FLOWS
Years Ended December 31, 2000, 1999 and 1998
2000 1999 1998
------------- ------------ -----------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 1,436,029 $ 1,545,060 $ 403,931
Noncash (income) expenses included in net income:
Depreciation, depletion and amortization 39,282 20,484 16,817
Realized (gains) on sale of available-for-sale
securities -- -- (13,172)
Gain on sale of assets (414) (31,536) --
Loss on asset retirement 883 926 --
Deferred income tax 2,200 2,132 264
Change in assets and liabilities:
(Increase) decrease in trade accounts and
other receivables 323,735 (301,289) (83,627)
(Increase) decrease in inventory 5,855 1,695 1,641
(Increase) decrease in prepaid income taxes (74,878) 71,882 (71,882)
Decrease in prepaid expenses (2,635) 99 989
Increase (decrease) in trade payables 3,938 3,434 (15,082)
Increase (decrease) in other liabilities (151,282) 250,221 (82,734)
------------ ------------ -----------
Net cash provided by operating activities 1,582,713 1,563,108 157,145
------------ ------------ -----------
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from rights of way 500 43,846 --
Proceeds from sale of timber and land 54,917 123,142 --
Available-for-sale securities:
Purchases (961,489) -- --
Sales -- -- 208,000
Purchase of land, property and equipment (22,087) (10,149) (625,548)
------------ ------------ -----------
Net cash provided by (used in) investing
activities (928,159) 156,839 (417,548)
------------ ------------ -----------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from long-term borrowings -- -- 450,000
Principal payments on long-term borrowing -- (1,187,064) (62,936)
Dividends paid, net of refunds (394,440) (154,635) (179,744)
Payments to acquire treasury stock (93,872) (19,604) (55,650)
------------ ------------ -----------
Net cash provided by (used in) financing
activities (488,312) (1,361,303) 151,670
------------ ------------ -----------
Net increase (decrease) in cash and
cash equivalents 166,242 (358,644) (108,733)
Cash and cash equivalents:
Beginning 471,821 113,177 221,910
------------ ----------- -----------
Ending $ 638,063 $ 471,821 $ 113,177
============ =========== ===========
(continued on next page)
14
CALCASIEU REAL ESTATE & OIL CO., INC.
STATEMENTS OF CASH FLOWS
Years Ended December 31, 2000, 1999 and 1998
(Continued)
2000 1999 1998
----------- ---------- -----------
SUPPLEMENTAL DISCLOSURES OF CASH FLOW
INFORMATION
Cash payments for:
Interest $ -- $ 53,506 $ 66,573
Income taxes 932,752 509,458 275,686
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING
AND FINANCING ACTIVITIES
Net change in unrealized and realized
gains on available-for-sale securities 12,362 8,202 (3,480)
See Notes to Financial Statements.
15
CALCASIEU REAL ESTATE & OIL CO., INC.
NOTES TO FINANCIAL STATEMENTS
Note 1. Nature of Business and Significant Accounting Policies
Nature of business:
The Company's business is the ownership and preservation of the
assets acquired at the Company's organization and subsequent
thereto. The primary activities have consisted of leasing its
properties and collecting rents and royalties derived therefrom.
In February, 1990, the Company acquired a 12.5% interest in
34,189 acres of land in Southwest Louisiana. Among other uses, a
portion of the land is devoted to agricultural purposes. In
November, 1998, the Company purchased an additional 4.2% interest
in this land, bringing its total interest to 16.7%.
In April, 1992, the Company purchased a 100% interest in the
surface rights and a 50% interest in the mineral rights to 952
acres, consisting of mainly timber land.
In October, 1997, the Company purchased approximately 3,496 acres
of agricultural property.
Significant accounting policies:
Cash and cash equivalents:
For purposes of the statement of cash flows, cash equivalents
include time deposits, certificates of deposit, and all highly
liquid debt instruments with original maturities of three months
or less.
Inventory:
Inventory consists of harvested crops valued at estimated selling
price at the date of the balance sheet.
16
NOTES TO FINANCIAL STATEMENTS
Pervasiveness of estimates:
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the
date of the financial statements and the reported amounts of revenues
and expenses during the reporting period. Actual results could differ
from those estimates.
Agricultural revenue:
Most agricultural income is derived under U.S. Government subsidy
programs. Under these programs, loans are made against crops as
harvested. However, delivery of the crops fulfills any further
obligation under the loan agreement, and thus revenues are recognized
as the harvested crops are delivered. Differences in the price at
ultimate sale of the products could result from quantity, grade, and
price, and additional revenues are derived at that time.
Investment securities:
The Company complies with the provisions of Financial Accounting
Standards Board Statement No. 115, Accounting for Certain Investments
in Debt and Equity Securities. Under the provisions of this statement,
management must make a determination at the time of acquisition
whether certain investments in debt and equity securities are to be
held as investments to maturity, held as available for sale, or held
for trading. Management, under a policy adopted by the board of
directors of the Company, made a determination that all debt and
equity securities owned at that date and subject to the provisions of
the statement would be classified as held available-for-sale.
Under the accounting policies provided for investments classified as
held available-for-sale, all such debt securities and equity
securities that have readily determinable fair value shall be measured
at fair value in the balance sheet. Unrealized holding gains and
losses for available-for-sale securities shall be excluded from
earnings and reported as a net amount (net of income taxes) as a
separate component of retained earnings until realized. Realized gains
and losses and declines in value judged to be other than temporary on
available-for-sale securities are included in income. The cost of
securities sold is based on the specific identification method.
Interest on debt securities is recognized in income as earned, and
dividends on marketable equity securities are recognized in income
when declared.
17
NOTES TO FINANCIAL STATEMENTS
Property and equipment:
Property and equipment is stated at cost. Major additions are
capitalized; maintenance and repairs are charged to income currently.
Depreciation is computed on the straight-line and accelerated methods
over the estimated useful lives of the assets.
Successful efforts accounting method:
The Company uses the successful efforts method of accounting for its
oil and gas operations. Under the successful efforts method, the costs
of acquiring mineral interest, drilling and equipping successful
exploratory wells, and all development wells and related facilities
are capitalized. All other exploration costs, including geological and
geophysical costs, lease rentals and the cost of drilling unsuccessful
exploratory wells are charged to expense. Due to the Company's small
percentage ownership (in relation to the total) of oil and gas
properties, reserve information is not available to the Company for
mineral interests acquired. Depletion of these interests is computed
on the straight-line and accelerated methods over an estimated life of
five to seven years. Acquisition costs of proved mineral interests for
which reserve information is available are depleted using the unit-of-
production method based on production and estimated proved reserves.
Related tangible and intangible costs are depreciated and amortized
using the unit-of-production method based on production and estimated
proved developed reserves.
Earnings per share:
Earnings per share is based on the weighted average number of common
shares outstanding during the years.
Income taxes:
The Company complies with the provisions of FASB Statement of
Financial Accounting Standards 109, Accounting for Income Taxes
relative to the reporting of income taxes. This statement requires an
asset and liability approach for financial accounting and reporting
for income taxes. The objectives are to recognize the amount of taxes
payable or refundable for the current year, and to recognize deferred
tax liabilities and assets for the future tax consequences of events
that have been recognized in the Company's financial statements or tax
returns. The elements with different bases for financial and tax
purposes are property and equipment, investments, accounts receivable,
inventory and accounts payable.
18
NOTES TO FINANCIAL STATEMENTS
The basic principles to be applied in accounting for income taxes
at the date of the financial statements are:
1. A current tax liability or asset is recognized for the
estimated taxes payable or refundable on tax returns for the
current year.
2. A deferred tax liability or asset is recognized for the
estimated future tax effects attributable to temporary
differences and carryforwards.
3. The measurement of current and deferred tax liabilities and
assets is based on provisions of the enacted tax law; the
effects of future changes in tax laws or rates are not
anticipated.
4. The measurement of deferred tax assets is reduced, if
considered necessary, by the amount of any tax benefits
that, based on available evidence, are not expected to be
realized.
Comprehensive income:
Effective January 1, 1998, the Company adopted Statement of
Financial Accounting Standards No. 130, "Reporting Comprehensive
Income". This statement establishes standards for reporting and
displaying comprehensive income and its components in the
financial statements. Total comprehensive income and the
components of accumulated other comprehensive income are
presented in the Statements of Changes in Stockholders' Equity.
Prior periods have been reclassified to conform to the
requirements of SFAS 130. SFAS 130 had no impact on the Company's
net income or stockholders' equity.
Reclassifications:
Certain prior year balances have been reclassified in order to
conform to current year presentation.
Note 2. Securities Available-for-Sale
Debt and equity securities have been classified in the balance sheet
according to management's intent in the current and noncurrent asset
sections under the headings securities available-for-sale. The
carrying amount of securities and their approximate fair values at
December 31, 2000 and 1999 follow:
19
NOTES TO FINANCIAL STATEMENTS
Gross Gross
Amortized Unrealized Unrealized
Cost Gains Losses Fair Value
------------ ------------ ------------ ------------
December 31, 2000
Available-for-sale securities:
Equity securities $ 56,123 $ 18,706 $ -- $ 74,829
Preferred equity securities 279,257 15,619 -- 294,876
U.S. government securities 682,232 6,422 688,654
------------ ------------ ------------ ------------
$ 1,017,612 $ 40,747 $ -- $ 1,058,359
============ ============ ============ ============
December 31, 1999
Available-for-sale securities:
Equity securities $ 56,123 $ 20,144 $ -- $ 76,267
U.S. government securities -- -- -- --
------------ ------------ ------------ ------------
$ 56,123 $ 20,144 $ -- $ 76,267
============ ============ ============ ============
Gross realized gains and gross realized losses on sales of available-
for-sale securities during 1998 are presented below. There were no
gross realized gains and gross realized losses on sales of available-
for-sale securities during 1999 and 2000.
Gains Losses
--------- ----------
1998
Gross realized gains:
U.S. government and agency securities $ -- $ --
Municipal securities 13,172 --
Equity securities -- --
--------- ----------
$ 13,172 $ --
========= ==========
Note 3. Oil and Gas Properties
Results of operations for oil and gas producing activities at December
31, 2000, 1999 and 1998 is as follows:
20
NOTES TO FINANCIAL STATEMENTS
2000 1999 1998
----------- ----------- ----------
Gross revenues:
Royalty interests $ 1,555,838 $ 2,017,723 $ 563,033
Working interests 63,851 24,095 19,115
----------- ----------- ----------
1,619,689 2,041,818 582,148
Less:
Production costs 78,176 84,605 50,511
Depreciation, depletion and
amortization -- 318 580
----------- ----------- ----------
Results before income tax
expenses 1,541,513 1,956,895 531,057
Income tax expenses 509,419 630,682 164,487
----------- ----------- ----------
Results of operations from
producing activities
(excluding corporate
overhead) $ 1,032,094 $ 1,326,213 $ 366,570
=========== =========== ==========
Costs incurred in oil and gas activities:
The major costs incurred in connection with the Company's oil and gas
operations (which are conducted entirely within the United States) at
December 31, 2000, 1999 and 1998 are as follows:
2000 1999 1998
-------- -------- --------
Acquisition costs-working and
royalty interests $ -- $ -- $ --
======== ======== ========
Exploration costs $ -- $ -- $ --
======== ======== ========
Development costs $ -- $ 932 $ 3,741
======== ======== ========
Reserve quantities (unaudited):
Reserve information relating to estimated quantities of the Company's
interest in proved reserves of natural gas and crude (including condensate
and natural gas liquids) is not available. Such reserves are located
entirely within the United States. A schedule indicating such reserve
quantities is, therefore, not presented.
21
NOTES TO FINANCIAL STATEMENTS
The wells remain in production at December 31, 2000, including royalty
interests and working interests obtained through back-in provisions of
royalty agreements. Production from such royalty interests and working
interests comprises 100% of the Company's oil and gas revenues in
2000, 1999 and 1998.
Actual production has exceeded original estimates of reserves, and
remaining reserves have not been revised. Therefore, the Company is
not able to complete the computations of discounted future cash flows
and reconciliation thereof.
Note 4. Income Taxes
The Company files federal income tax returns on a calendar year basis.
The net deferred tax liability in the accompanying balance sheet
includes the following components at December 31, 2000 and 1999:
2000 1999
-------- --------
Deferred tax assets $ -- $ 3,203
Valuation allowance --
Deferred tax liabilities (14,316) (15,318)
Deferred tax liabilities on unrealized
appreciation of securities available
for sale (16,298) (8,058)
-------- --------
Net deferred tax liability $(30,614) $(20,173)
======== ========
A reconciliation between income taxes, computed by applying statutory
tax rates to income before income taxes and income taxes provided at
December 31, 2000, 1999 and 1998 is as follows:
2000 1999 1998
--------- --------- ---------
Tax at statutory rates $ 729,239 $ 775,137 $ 198,962
Tax effect of the following:
Statutory depletion (82,145) (99,490) (27,084)
Dividend exclusion (2,714) (514) (428)
State income tax 60,375 61,094 13,126
Investment tax credit -- (167) --
Other 4,037 (1,306) (3,325)
--------- --------- ---------
$ 708,792 $ 734,754 $ 181,251
========= ========= =========
22
NOTES TO FINANCIAL STATEMENTS
Deferred income taxes result from timing differences in the
recognition of revenue and expenses for tax and financial statement
purposes. The effect of these timing differences at December 31, 2000
and 1999 is as follows:
2000 1999
---------- ----------
Conversion of investment from tax cash basis
to accrual basis for financial
reporting $ (14,304) $ (14,344)
Excess of depreciation and depletion
expensed for tax purposes (under)
amount expensed for financial
statement purposes (12) 2,229
Unrealized gain on marketable securities (16,298) (8,058)
---------- ----------
$ (30,614) $ (20,173)
========== ==========
Note 5. Line of Credit
As of December 31, 2000, the Company had available an unsecured line
of credit in the amount of $750,000. The balance on this line of
credit was $-0- at December 31, 2000.
Note 6. Company Operations
Effective January 1, 1998, the Company adopted the Financial
Accounting Standards Board Statement No. 131, "Disclosures About
Segments of an Enterprise and Related Information". This statement
replaces Statement No. 14, "Financial Reporting for Segments of a
Business Enterprise", and establishes new standards for defining the
Company's segments and disclosing information about them. It requires
that the segments be based on the internal reporting of the Company's
operations.
The Company's operations are classified into three principal operating
segments which are all located in the United States: oil and gas
properties, agricultural properties, and timber properties. The
Company's reportable business segments are strategic business units
that offer income from different products. They are managed separately
due to the unique aspects of each area.
23
NOTES TO FINANCIAL STATEMENTS
Following is a summary of segmented information for 2000, 1999 and
1998:
2000 1999 1998
------------ ------------- -------------
REVENUES
Oil and gas properties $ 1,772,148 $ 2,102,773 $ 672,497
Agricultural properties 178,897 197,719 127,832
Timber properties 460,963 308,411 64,178
All other segments 85,110 37,588 32,520
------------ ------------- -------------
$ 2,497,118 $ 2,646,491 $ 897,027
============ ============= =============
COSTS AND EXPENSES
Oil and gas properties $ 78,176 $ 84,923 $ 51,091
Agricultural properties 15,126 16,667 13,509
Timber properties 93,962 61,104 29,723
All other segments 1,362 932 1,264
------------ ------------- -------------
$ 188,626 $ 163,626 $ 95,587
============ ============= =============
INCOME FROM OPERATIONS
Oil and gas properties $ 1,693,972 $ 2,017,850 $ 621,406
Agricultural properties 163,771 181,052 114,323
Timber properties 367,000 247,307 34,455
All other segments 83,749 36,656 31,256
------------ ------------- -------------
2,308,492 2,482,865 801,440
OTHER INCOME (EXPENSE) (163,671) (203,051) (216,258)
------------ ------------- -------------
INCOME BEFORE INCOME TAXES $ 2,144,821 $ 2,279,814 $ 585,182
============ ============= =============
IDENTIFIABLE ASSETS
Oil and gas properties $ 683,952 $ 980,179 $ 694,203
Agricultural properties 2,522,280 2,530,002 2,531,025
Timber properties 964,852 1,067,912 891,510
All other segments 90,024 85,685 85,685
------------ ------------- -------------
4,261,108 4,663,778 4,202,423
GENERAL AND CORPORATE ASSETS 1,699,731 548,762 556,904
------------ ------------- -------------
TOTAL ASSETS $ 5,960,839 $ 5,212,540 $ 4,759,327
============ ============= =============
24
NOTES TO FINANCIAL STATEMENTS
2000 1999 1998
------------ ------------- -------------
CAPITAL EXPENDITURES
Oil and gas properties $ 633 $ 2,947 $ 96,320
Agricultural properties 10,479 -- 222,789
Timber properties 19,294 3,453 220,754
All other segments 5,443 3,749 85,685
------------ ------------- -------------
$ 35,849 $ 10,149 $ 625,548
============ ============= =============
DEPRECIATION, DEPLETION AND
AMORTIZATION
Oil and gas properties $ -- $ 318 $ 580
Agricultural properties 4,525 3,781 2,574
Timber properties 32,604 15,453 12,399
All other segments 2,153 932 1,264
------------ ------------- -------------
$ 39,282 $ 20,484 $ 16,817
============ ============= =============
There are no intersegment sales reported in the accompanying income
statements. The accounting policies of the segments are the same as those
described in the summary of significant accounting policies. The Company
evaluates performance based on profit or loss from operations before income
taxes excluding nonrecurring gains and losses on securities held available
for sale. Income before income tax represents net sales less operating
expenses and other income and expenses of a general corporate nature.
Identifiable assets by segment are those assets that are used in the
Company's operations within that industry. General corporate assets consist
principally of cash and cash items, accounts receivable, and marketable
equity and debt securities.
The following summarizes major customer information at December 31, 2000,
1999 and 1998 from oil and gas revenues:
Sales to Purchaser as a
Percentage of Total Revenues
------------------------------------
Purchaser 2000 1999 1998
--------- ----------- ---------- -----------
Riceland Petroleum Company 4% 2% 10%
Mitchell Energy 6% 12% 34%
Neumin Production 65% 78% 34%
25
NOTES TO FINANCIAL STATEMENTS
Note 7. Related Party Transactions
As of April 1, 1999, the President of the Company is serving as Chairman
of the advisory board of Bank One, Southwest Louisiana (the Bank).
Formerly, he was the President of the Bank. At December 31, 2000 and
1999, the Company had $638,063 and $471,821, respectively, deposited in
money-market and noninterest bearing checking accounts with the Bank.
During 2000, 1999 and 1998, some board members entered into leases with
the Company for water fowl hunting on property acquired during 1998.
Lease income from these leases amounted to $3,200 for the year 2000 and
$4,800 for each of the years ended December 31, 1999 and 1998.
In 1990, the Company purchased interests in properties managed by Walker
Louisiana Properties (WLP), such properties being subject to a
management agreement described at Note 9. In 1998, the Company purchased
an additional interest in this property.
Note 8. Supplementary Income Statement Information
Taxes, other than income taxes, of $109,569, $117,129 and $65,154, were
charged to expense during 2000, 1999 and 1998, respectively.
Note 9. Management Agreement
During 1990, the Company purchased an undivided interest in numerous
parcels of land and other properties as described at Note 7. The
Company's interest, along with the interests of other co-owners, is
managed by an entity under a management agreement whereby costs are
shared based on the percent of ownership.
26
NOTES TO FINANCIAL STATEMENTS
Note 10. Operating Leases
The Company leases agricultural land to a third party. This agreement,
with an original expiration date of September 30, 2002, was extended
during year 2000 to September 30, 2004. The annual lease rental is
$40,000. The lease requires payment of normal maintenance and
insurance. The lease also requires the lessee to construct specific
improvements to the property at an expenditure of at least $60,000 as
additional consideration during the original term of the contract. In
the event the lessee fails to spend $60,000 on the above mentioned
improvements prior to September 30, 2002, the amounts unspent will be
due and payable to the Company on September 30, 2002. As a condition
of extending the lease contract for an additional two year period, the
lessee is required to spend $40,000 each year for additional
improvements to the properties, in addition to the annual lease
payments.
Total future minimum rental income under operating leases as of
December 31, 2000 for the next five years is as follows:
Years Ending December 31,
-------------------------
2001 $ 40,000
2002 40,000
2003 40,000
2004 40,000
2005 -
Note 11. Concentration of Credit Risk
The Company maintains its cash balances in one financial institution.
The amount on deposit in the financial institution is insured by the
Federal Deposit Insurance Corporation up to $100,000.
Note 12. Disclosures About Fair Value of Financial Instruments
The following methods and assumptions were used to estimate the fair
value of each class of financial instruments for which it was
practical to estimate that value:
Cash and cash equivalents:
For these short-term instruments, the carrying amount is a
reasonable estimate of fair value.
27
NOTES TO FINANCIAL STATEMENTS
Securities available-for-sale:
Debt and equity securities were valued at fair value, which equals
quoted market price.
The estimated fair value of the Company's financial instruments at
December 31, 2000 and 1999 are as follows. Amounts are presented in
thousands.
2000 1999
---------------------------------
Carrying Fair Carrying Fair
Financial Assets Value Value Value Value
-------- ------ -------- ------
Cash and cash equivalents $ 638 $ 638 $ 472 $ 472
Securities available for sale 1,058 1,058 76 76
-------- ------ -------- ------
$1,696 $1,696 $ 548 $ 548
======== ====== ======== ======
Note 13. Commitments and Contingencies
The Company is a co-defendant in a lawsuit filed by previous owners of
property that is now partially owned by the Company. In this suit, the
Plaintiffs assert that the sale of a strip of property in 1914 created
two servitudes, one of which, the co-defendants claim ownership,
expired by liberative prescription in 1940. The Company has indicated
that it will defend the suit vigorously, and it is anticipated that a
motion for summary judgment in favor of the defendants will be filed
in the near future.
28
CALCASIEU REAL ESTATE & OIL CO., INC.
PROPERTY, PLANT AND EQUIPMENT
Years Ended December 31, 2000, 1999 and 1998
Balance, Adjustments Balance,
Beginning and End of
2000 of Period Additions Retirements Period
---- ---------- ---------- ----------- ----------
Oil and gas properties-proved $ 458,185 $ -- $ 1,435 $ 456,751
Other property:
Buildings and equipment 90,885 15,922 17,031 89,776
Timber 715,064 19,295 60,933 673,426
Land 3,615,791 632 522 3,615,900
---------- ---------- ----------- ----------
$4,879,925 $ 35,849 $ 79,921 $4,835,853
========== ========== =========== ==========
1999
----
Oil and gas properties-proved $ 444,236 $ 2,947 $ (11,002) $ 458,185
Other property:
Buildings and equipment 87,136 3,749 -- 90,885
Timber 803,086 3,453 91,475 715,064
Land 3,660,478 -- 44,687 3,615,791
---------- ---------- ----------- ----------
$4,994,936 $ 10,149 $ 125,160 $4,879,925
========== ========== =========== ==========
1998
----
Oil and gas properties-proved $ 377,666 $ 80,521 $ 13,951 $ 444,236
Other property:
Buildings and equipment 90,941 9,251 13,056 87,136
Timber 575,785 227,301 -- 803,086
Land 3,352,003 308,475 -- 3,660,478
---------- ---------- ----------- ----------
$4,396,395 $ 625,548 $ 27,007 $4,994,936
========== ========== =========== ==========
29
CALCASIEU REAL ESTATE & OIL CO., INC.
ACCUMULATED DEPRECIATION, DEPLETION AND AMORTIZATION
Years Ended December 31, 2000, 1999 and 1998
Balance, Adjustments Balance,
Beginning and End of
2000 of Period Additions Retirements Period
---- --------- --------- ----------- --------
Oil and gas properties-proved $ 377,039 $ 2,496 $ -- $ 379,535
Other property:
Buildings and equipment 73,468 4,525 8,104 69,889
Timber 228,876 32,261 2,169 258,968
---------- ---------- -------- ---------
$ 679,383 $ 39,282 $ 10,273 $ 708,392
========== ========== ======== =========
1999
----
Oil and gas properties-proved $ 362,770 $ 3,050 $(11,219) $ 377,039
Other property:
Buildings and equipment 71,487 1,981 -- 73,468
Timber 213,423 15,453 -- 228,876
---------- ---------- -------- ---------
$ 647,680 $ 20,484 $(11,219) $ 679,383
========== ========== ======== =========
1998
----
Oil and gas properties-proved $ 376,141 $ 580 $ 13,951 $ 362,770
Other property:
Buildings and equipment 80,706 3,837 13,056 71,487
Timber 201,023 12,400 -- 213,423
---------- ---------- -------- ---------
$ 657,870 $ 16,817 $ 27,007 $ 647,680
========== ========== ======== =========
30