================================================================================
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): December 18, 2002
PLAINS RESOURCES INC.
(Exact name of registrant as specified in charter)
Delaware 13-2898764
(State of Incorporation) (I.R.S. Employer Identification No.)
0-9808
(Commission File No.)
500 Dallas Street, Suite 700
Houston, Texas 77002
(Address of Principal Executive Offices)
(Zip Code)
Registrant's telephone number, including area code: (713) 739-6700
================================================================================
Item 2. Acquisition or Disposition of Assets
On December 18, 2002 Plains Resources Inc. ("PLX") distributed 100 percent of
the common shares of its wholly-owned subsidiary Plains Exploration & Production
Company ("PXP") to the holders of record of PLX's common stock as of December
11, 2002 (the "spin-off"). Each PLX stockholder received one share of PXP common
stock for each share of PLX common stock held. Prior to the spin-off, PLX
borrowed $45.0 million under the terms of its loan facility and used a portion
of the proceeds to make a $40.0 million cash capital contribution to PXP. In
addition, prior to the spin-off PLX transferred to PXP certain assets and PXP
assumed certain liabilities of PLX, primarily related to land, unproved oil and
gas properties, office equipment and pension obligations.
PLX has outstanding 46,600 shares of Series D Cumulative Convertible Preferred
Stock, or Series D Preferred, that have an aggregate stated value of $23.3
million and are redeemable at PLX's option at 140% of stated value. If not
previously redeemed or converted, the Series D Preferred will automatically
convert into shares of PLX common stock in 2012. Each share of Series D
Preferred has a stated value of $500 and bears an annual dividend of $30.00 per
share.
As a result of the spin-off, the number of shares of PLX common stock into which
the Series D Preferred is convertible increased from 932,000 shares to 1,671,416
shares as a result of the reduction in the conversion price from $25.00 per
share of common stock to $13.94 per share. The reduction in the conversion price
of the Series D Preferred was determined by multiplying the former conversion
price of the Series D Preferred ($25.00) by a fraction, the denominator of which
was $22.27 (the closing price per share of Plains Resources common stock as of
the record date for the spin-off), and the numerator of which was $12.42 (the
closing price per share of Plains Resources common stock as of the record date
for the spin-off less the agreed on fair market value per share of the Plains
Exploration & Production common stock distributed in the spin-off). The holders
of the Series D Preferred did not receive any Plains Exploration & Production
securities as a result of the spin off.
Item 7. Financial Statements and Exhibits
(b) (1)
PLAINS RESOURCES INC.
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
On December 18, 2002 Plains Resources Inc. ("PLX") distributed all of the issued
and outstanding shares of $0.01 par value common stock of its wholly-owned
subsidiary Plains Exploration & Production Company ("PXP") to the holders of
PLX's $0.10 par value common stock on the basis of one share of PXP common stock
for every one share of PLX common stock held as of the close of business on
December 11, 2002 (the "spin-off"). Prior to the spin-off PLX borrowed $45.0
million under the terms of its loan facility and used a portion of the proceeds
to make a $40.0 million cash capital contribution to PXP. In addition, prior to
the spin-off PLX transferred to PXP certain assets and PXP assumed certain
liabilities of PLX, primarily related to land, unproved oil and gas properties,
office equipment and pension obligations.
The following financial information reflects PXP's business as discontinued
operations and reflects pro forma adjustments related to the distribution of
PXP's common stock to PLX's stockholders.
The pro forma condensed consolidated balance sheet at September 30, 2002 has
been prepared as if the spin-off and the borrowings under PLX's loan facility
occurred on that date. The pro forma condensed consolidated balance sheet has
been prepared by adjusting PLX's historical balance sheet to reflect PXP's
business as a discontinued operation and includes pro forma adjustments to
reflect the borrowings under PXP's loan facility and the effect of the spin-off.
The pro forma condensed consolidated statements of operations for the nine
months ended September 30, 2002 and 2001 and the year ended December 31, 2001
present PLX's results of operations as if the spin-off and the borrowings under
PLX's loan facility occurred on January 1, 2001. These statements of operations
have been prepared by adjusting PLX's historical operations to reflect PXP's
business as a discontinued operation and includes pro forma adjustments to
reflect the borrowings under PXP's loan facility and the effect of the spin-off
on PLX's income tax expense.
These pro forma condensed consolidated financial statements do not necessarily
represent what PLX's results of operations or financial position would have been
if the transactions discussed above had occurred on the dates specified. Also
presented are consolidated statements of operations for the years ended December
31, 2001 and 1999 and oil and gas reserve data at December 31, 2001 that reflect
the business of PXP as a discontinued operation.
PLAINS RESOURCES INC. AND SUBSIDIARIES
PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
SEPTEMBER 30, 2002
(in thousands of dollars)
Adjustments for Discontinued Operations
------------------------------------------
Plains
Plains Exploration Plains
Resources & Production Pro Forma Resources
Historical Historical Reclassification(1) Subtotal Adjustments Pro Forma
---------- ------------ ------------------- --------- ----------- ---------
ASSETS
Current Assets $ 45,000 (2)
Cash and cash equivalents $ 1,186 $ (766) $ -- $ 420 (40,000)(3) $ 5,420
Accounts receivable--Plains All
American Pipeline, L.P. 25,927 (22,751) -- 3,176 -- 3,176
Other accounts receivable and current
assets 9,198 (4,778) 3,665 8,085 -- 8,085
Commodity hedging contracts 454 (453) (1) -- -- --
Inventory 7,793 (5,643) -- 2,150 -- 2,150
---------- --------- ------- --------- --------- ---------
44,558 (34,391) 3,664 13,831 5,000 18,831
---------- --------- ------- --------- --------- ---------
Property and Equipment
Oil and natural gas properties--full cost
method 999,578 (647,994) -- 351,584 (3,201)(4) 348,383
Other property and equipment 4,122 (1,571) -- 2,551 (2,524)(4) 27
---------- --------- ------- --------- --------- ---------
1,003,700 (649,565) -- 354,135 (5,725) 348,410
Less allowance for depreciation,
depletion and amortization (461,925) 161,858 (300,067) 1,947 (4) (298,120)
---------- --------- ------- --------- --------- ---------
541,775 (487,707) -- 54,068 (3,778) 50,290
---------- --------- ------- --------- --------- ---------
Investment in Plains All American
Pipeline, L.P. 73,677 -- -- 73,677 73,677
---------- --------- ------- --------- --------- ---------
40,000 (3)
4,528 (4)
7,200 (5)
Investment in Discontinued
Operations -- 120,127 -- 120,127 (171,855)(7) --
---------- --------- ------- --------- --------- ---------
Deferred Income Taxes -- -- -- -- 7,660 (8) 7,660
---------- --------- ------- --------- --------- ---------
(750)(4)
Other Assets 20,248 (18,958) 2,315 3,605 1,000 (6) 3,855
---------- --------- ------- --------- --------- ---------
$ 680,258 $(420,929) $ 5,979 $ 265,308 $(110,995) $ 154,313
========== ========= ======= ========= ========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
$ 636 (4)
Accounts payable and other current 7,200 (5)
liabilities $ 55,239 $ (56,143) $ 7,481 $ 6,577 1,000 (6) $ 15,413
Commodity hedging contracts 24,980 (24,880) -- 100 -- 100
Payable to Plains Resources Inc. -- (3,357) 3,357 -- -- --
Interest payable 4,859 (4,859) -- -- --
Notes payable and current portion of
long-term debt 511 (511) -- -- 18,000 (2) 18,000
---------- --------- ------- --------- --------- ---------
85,589 (84,891) 5,979 6,677 26,836 33,513
---------- --------- ------- --------- --------- ---------
Long-Term Debt 288,014 (288,014) -- -- 27,000 (2) 27,000
---------- --------- ------- --------- --------- ---------
Other Long-Term Liabilities 6,987 (3,543) -- 3,444 (636)(4) 2,808
---------- --------- ------- --------- --------- ---------
(4,819)(7)
Deferred Income Taxes 41,640 (44,481) -- (2,841) 7,660 (8) --
---------- --------- ------- --------- --------- ---------
Stockholders' Equity 258,028 -- 258,028 (167,036)(7) 90,992
---------- --------- ------- --------- --------- ---------
$ 680,258 $(420,929) $ 5,979 $ 265,308 $(110,995) $ 154,313
========== ========= ======= ========= ========= =========
(1) Reflects reclassification of certain items in PXP's balance sheet to
conform to the presentation in PLX's balance sheet.
(2) Reflects $45.0 million in borrowings under the PLX loan facility.
(3) Reflects the use of a portion of the borrowings under the PLX loan facility
to make a $40.0 million cash contribution to PXP.
(4) Reflects the contribution to PXP of certain assets and the assumption by
PXP of certain liabilities, primarily related to land, unproved oil and gas
properties, office equipment and pension obligations.
(5) Reflects a $7.2 million note payable to PXP to be repaid using a portion of
a $7.5 million cash distribution received from Plains All American
Pipeline, L.P. in the fourth quarter of 2002.
(6) Reflects estimated debt issue costs related to the PLX loan facility.
(7) Reflects the spin-off.
(8) Reflects the reclassification of deferred income taxes.
PLAINS RESOURCES INC.
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
NINE MONTHS ENDED SEPTEMBER 30, 2002
(in thousands, except per share data)
Adjustments for
Discontinued Operations
-----------------------
Plains Plains
Plains Exploration Resources
Resources & Production Pro Forma Pro
Historical Historical Subtotal Adjustments Forma
---------- ------------ -------- ----------- ---------
Revenues
Crude oil and liquids $140,653 $(129,563) $ 11,090 $ -- $ 11,090
Natural gas 7,130 (7,130) -- -- --
Other operating revenues 27 (27) -- -- --
-------- --------- -------- ----- --------
147,810 (136,720) 11,090 -- 11,090
-------- --------- -------- ----- --------
Operating Costs and Expenses
Production expenses 61,501 (56,826) 4,675 -- 4,675
General and administrative 12,049 (7,362) 4,687 -- 4,687
Depreciation, depletion and amortization 24,531 (21,262) 3,269 86 (2) 3,355
-------- --------- -------- ----- --------
98,081 (85,450) 12,631 86 12,717
-------- --------- -------- ----- --------
Other Income (Expense)
Equity in earnings of Plains All American
Pipeline, L.P. 14,060 -- 14,060 -- 14,060
Gains on Plains All American Pipeline, L.P.
unit transactions 14,512 -- 14,512 -- 14,512
Loss on debt extinguishment (10,319) -- (10,319) -- (10,319)
Expenses of terminated public equity
offering (1,700) 1,700 -- -- --
Interest expense (20,228) 14,427 (5,801) (844)(3) (6,645)
Interest and other income 377 (114) 263 -- 263
-------- --------- -------- ----- --------
(3,298) 16,013 12,715 (844) 11,871
-------- --------- -------- ----- --------
Income Before Income Taxes 46,431 (35,257) 11,174 (930) 10,244
Income taxes (18,976) 13,757 (5,219) 472 (4) (4,747)
-------- --------- -------- ----- --------
Income from Continuing Operations 27,455 (21,500) 5,955 (458) 5,497
Cumulative preferred dividends (1,050) -- (1,050) -- (1,050)
-------- --------- -------- ----- --------
Income from Continuing Operations Available to
Common Stockholders $ 26,405 $ (21,500) $ 4,905 $(458) $ 4,447
======== ========= ======== ===== ========
Earnings Per Share from Continuing Operations
Basic $ 1.11 $ 0.21 $ 0.19
Diluted $ 1.08 $ 0.20 $ 0.18
Weighted Average Shares Outstanding
Basic 23,826 23,826 23,826
Diluted 25,387 (932)(1) 24,455 135 (5) 24,590
(1) After adjusting to reflect PXP as discontinued operations, Plains Resources
Series D Cumulative Convertible Preferred Stock is anti-dilutive.
(2) Reflects the effect on depletion, depreciation and amortization of (i) the
spin-off and the contribution of certain assets to PXP; and (ii) the
amortization of debt issue costs related to PLX's loan facility. The debt
issue cost is amortized over the life of the debt agreement using the
straight-line method, which approximates the interest method.
(3) Reflects interest expense for the period on borrowings under the PLX loan
facility. Interest expense is computed based on the estimated rate in
effect at the time of the borrowings. (5.0%). A 1/8 of 1% change in the
interest rate would result in a $21,000 change in interest expense.
(4) Reflects the tax effect of (i) the pro forma adjustments; and (ii) Plains
Resources effective tax rate after the spin-off.
(5) Reflects the effect of the issuance of restricted stock in connection with
the spin-off.
PLAINS RESOURCES INC.
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
NINE MONTHS ENDED SEPTEMBER 30, 2001
(in thousands, except per share data)
Adjustments for
Discontinued Operations
---------------------
Plains
Plains Exploration Plains
Resources & Production Pro Forma Resources
Historical Historical Subtotal Adjustments Pro Forma
---------- ------------ -------- ----------- ---------
Revenues
Crude oil and liquids $143,486 $(133,957) $ 9,529 $ -- $ 9,529
Natural gas 26,870 (26,870) -- -- --
Other operating revenues 468 (468) -- -- --
-------- --------- -------- ------- --------
170,824 (161,295) 9,529 -- 9,529
-------- --------- -------- ------- --------
Operating Costs and Expenses
Production expenses 53,084 (47,995) 5,089 -- 5,089
General and administrative 18,294 (7,074) 11,220 -- 11,220
Depreciation, depletion and amortization 20,547 (16,999) 3,548 (41)(1) 3,507
-------- --------- -------- ------- --------
91,925 (72,068) 19,857 (41) 19,816
-------- --------- -------- ------- --------
Other Income (Expense)
Equity in earnings of Plains All American
Pipeline, L.P. 15,798 -- 15,798 -- 15,798
Gains on Plains All American Pipeline, L.P.
unit transactions 151,089 -- 151,089 -- 151,089
Interest expense (20,136) 12,942 (7,194) (1,519)(2) (8,713)
Interest and other income 91 (459) (368) -- (368)
-------- --------- -------- ------- --------
146,842 12,483 159,325 (1,519) 157,806
-------- --------- -------- ------- --------
Income Before Income Taxes 225,741 (76,744) 148,997 (1,478) 147,519
Income taxes (89,533) 29,623 (59,910) 1,596 (3) (58,314)
-------- --------- -------- ------- --------
Income from Continuing Operations 136,208 (47,121) 89,087 118 89,205
Cumulative preferred dividends (26,896) -- (26,896) -- (26,896)
-------- --------- -------- ------- --------
Income from Continuing Operations Available
to Common Stockholders $109,312 $ (47,121) $ 62,191 $ 118 $ 62,309
======== ========= ======== ======= ========
Earnings Per Share from Continuing Operations
Basic $ 5.41 $ 3.08 $ 3.08
Diluted $ 4.03 $ 2.34 $ 2.27
Weighted Average Shares Outstanding
Basic 20,204 20,204 20,204
Diluted 27,904 27,904 874 (4) 28,778
(1) Reflects the effect on depletion, depreciation and amortization of (i) the
spin-off and the contribution of certain assets to PXP; and (ii) the
amortization of debt issue costs related to PLX's loan facility. The debt
issue cost is amortized over the life of the debt agreement using the
straight-line method, which approximates the interest method.
(2) Reflects interest expense for the period on borrowings under the PLX loan
facility. Interest expense is computed based on the estimated rate in
effect at the time of the borrowings. (5.0%). A 1/8 of 1% change in the
interest rate would result in a $38,000 change in interest expense.
(3) Reflects the tax effect of (i) the pro forma adjustments; and (ii) Plains
Resources effective tax rate after the spin-off.
(4) Reflects the effect of (i) the spin-off in accordance with the
anti-dilution provisions of Plains Resources Series D Cumulative
Convertible Preferred Stock; and (ii) the issuance of restricted stock in
connection with the spin-off.
PLAINS RESOURCES INC.
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2001
(in thousands, except per share data)
Adjustments for
Discontinued Operations
-----------------------
Plains Plains
Plains Exploration & Resources
Resources Production Pro Forma Pro
Historical Historical Subtotal Adjustments Forma
---------- ------------- -------- ----------- ---------
Revenues
Crude oil and liquids $ 186,476 $(174,895) $ 11,581 $ -- $ 11,581
Natural gas 28,771 (28,771) -- -- --
Other operating revenues 473 (473) -- -- --
--------- --------- -------- ------- --------
215,720 (204,139) 11,581 -- 11,581
--------- --------- -------- ------- --------
Operating Costs and Expenses
Production expenses 71,192 (63,795) 7,397 -- 7,397
General and administrative 21,293 (10,210) 11,083 -- 11,083
Depreciation, depletion and
amortization 28,921 (24,105) 4,816 204 (1) 5,020
--------- --------- -------- ------- --------
121,406 (98,110) 23,296 204 23,500
--------- --------- -------- ------- --------
Other Income (Expense)
Equity in earnings of Plains All
American Pipeline, L.P. 18,540 -- 18,540 -- 18,540
Gains on Plains All American Pipeline,
L.P. unit transactions 170,157 -- 170,157 -- 170,157
Interest expense (26,385) 17,411 (8,974) (1,913)(2) (10,887)
Interest and other income 151 (463) (312) -- (312)
--------- --------- -------- ------- --------
162,463 16,948 179,411 (1,913) 177,498
--------- --------- -------- ------- --------
Income Before Income Taxes 256,777 (89,081) 167,696 (2,117) 165,579
Income taxes (101,460) 34,388 (67,072) 1,619 (3) (65,453)
--------- --------- -------- ------- --------
Income from Continuing Operations 155,317 (54,693) 100,624 (498) 100,126
Cumulative preferred dividends (27,245) -- (27,245) -- (27,245)
--------- --------- -------- ------- --------
Income from Continuing Operations
Available to Common Stockholders $ 128,072 $ (54,693) $ 73,379 $ (498) $ 72,881
========= ========= ======== ======= ========
Earnings Per Share from Continuing
Operations
Basic $ 6.07 $ 3.48 $ 3.46
Diluted $ 4.82 $ 2.82 $ 2.71
Weighted Average Shares Outstanding
Basic 21,090 21,090 21,090
Diluted 27,244 28,244 874 (4) 28,118
(1) Reflects the effect on depletion, depreciation and amortization of (i) the
spin-off and the contribution of certain assets to PXP; and (ii) the
amortization of debt issue costs related to PLX's loan facility. The debt
issue cost is amortized over the life of the debt agreement using the
straight-line method, which approximates the interest method.
(2) Reflects interest expense for the period on borrowings under the PLX loan
facility. Interest expense is computed based on the estimated rate in
effect at the time of the borrowings. (5.0%). A 1/8 of 1% change in the
interest rate would result in a $48,000 change in interest expense.
(3) Reflects the tax effect of (i) the pro forma adjustments; and (ii) Plains
Resources effective tax rate after the spin-off.
(4) Reflects the effect of (i) the spin-off in accordance with the
anti-dilution provisions of Plains Resources Series D Cumulative
Convertible Preferred Stock; and (ii) the issuance of restricted stock in
connection with the spin-off.
PLAINS RESOURCES INC.
CONSOLIDATED STATEMENT OF OPERATIONS REFLECTING DISCONTINUED OPERATIONS
YEAR ENDED DECEMBER 31, 2000
(in thousands, except per share data)
Plains Plains
Plains Exploration & Resources
Resources Production Continuing
Historical Historical Operations
----------------------------------------------------
Revenues
Crude oil and liquids $ 133,325 $(126,434) $ 6,891
Natural gas 16,017 (16,017) -
Marketing, transportation, storage and terminalling 6,425,644 - 6,425,644
Gain on sale of assets 48,188 - 48,188
----------------------------------------------------
6,623,174 (142,451) 6,480,723
----------------------------------------------------
Costs and Expenses
Production expenses 62,140 (56,228) 5,912
General and administrative 50,776 (6,308) 44,468
Marketing, transportation, storage and terminalling 6,292,615 - 6,292,615
Unauthorized trading losses and related expenses 7,963 - 7,963
Depreciation, depletion and amortization 47,221 (18,859) 28,362
----------------------------------------------------
6,460,715 (81,395) 6,379,320
----------------------------------------------------
Income from Operations 162,459 (61,056) 101,403
Other Income (Expense)
Interest expense (55,828) 15,885 (39,943)
Interest and other income 7,411 (343) 7,068
----------------------------------------------------
Income from Continuing Operations Before Income Taxes
and Minority Interest 114,042 (45,514) 68,528
Minority interest in Plains All American Pipeline, L.P. (42,535) - (42,535)
Income taxes (25,583) 16,765 (8,818)
----------------------------------------------------
Income from Continuing Operations 45,924 (28,749) 17,175
Cumulative preferred dividends (14,725) - (14,725)
----------------------------------------------------
Income from Continuing Operations Available
to Common Stockholders $ 31,199 $ (28,749) $ 2,450
====================================================
Earnings Per Share from Continuing Operations
Basic $ 1.75 $ 0.14
Diluted $ 1.56 $ 0.58
Weighted Average Shares Outstanding
Basic 17,845 17,845
Diluted 29,373 29,373
PLAINS RESOURCES INC.
CONSOLIDATED STATEMENT OF OPERATIONS REFLECTING DISCONTINUED OPERATIONS
YEAR ENDED DECEMBER 31, 1999
(in thousands, except per share data)
Plains Plains
Plains Exploration & Resources
Resources Production Continuing
Historical Historical Operations
----------- ------------- -----------
Revenues
Crude oil and liquids $ 111,128 $(102,390) $ 8,738
Natural gas 5,095 (5,095) --
Marketing, transportation, storage and terminalling 10,796,998 -- 10,796,998
Gain on sale of assets 16,457 -- 16,457
----------- --------- -----------
10,929,678 (107,485) 10,822,193
----------- --------- -----------
Costs and Expenses
Production expenses 55,645 (50,527) 5,118
General and administrative 31,402 (4,367) 27,035
Marketing, transportation, storage and terminalling 10,689,308 -- 10,689,308
Unauthorized trading losses and related expenses 166,440 -- 166,440
Depreciation, depletion and amortization 36,998 (13,329) 23,669
----------- --------- -----------
10,979,793 (68,223) 10,911,570
----------- --------- -----------
Loss from Operations (50,115) (39,262) (89,377)
Other Income (Expense)
Gains on Plains All American Pipeline, L.P. unit transactions 9,787 -- 9,787
Interest expense (46,378) 14,912 (31,466)
Interest and other income 1,237 (87) 1,150
----------- --------- -----------
Loss from Continuing Operations Before Income Taxes and
Minority Interest (85,469) (24,437) (109,906)
Minority interest in Plains All American Pipeline, L.P. 40,203 -- 40,203
Income taxes 20,479 5,332 25,811
----------- --------- -----------
Loss from Continuing Operations (24,787) (19,105) (43,892)
Cumulative preferred dividends (10,026) -- (10,026)
----------- --------- -----------
Loss from Continuing Operations Available to Common
Stockholders $ (34,813) $ (19,105) $ (53,918)
=========== ========= ===========
Earnings (Loss) Per Share from Continuing Operations
Basic $ (2.02) $ (3.12)
Diluted $ (2.02) $ (3.12)
Weighted Average Shares Outstanding
Basic 17,262 17,262
Diluted 17,262 17,262
PLAINS RESOURCES INC.
PRO FORMA OIL AND GAS RESERVE DATA
Adjustments for
Discontinued Operations
------------------------
Plains
Plains Exploration Plains
Resources & Production Pro forma Resources
Historical Historical Adjustments Proforma
----------- ------------ ----------- ---------
Estimated Quantities of Oil & Gas Reserves at
December 31, 2001
Proved Reserves
Oil (MBbl) 240,636 (223,293) -- 17,343
Gas (MMcf) 96,217 (96,217) -- --
Proved Developed Reserves
Oil (MBbl) 134,704 (119,248) -- 15,456
Gas (MMcf) 59,101 (59,101) -- --
Standardized Measure of Discounted Future Net Cash
Flows at December 31, 2001
Future cash inflows $ 3,833,456 $(3,662,137) $ -- $ 171,319
Future development costs (329,393) 305,261 -- (24,132)
Future production expense (1,826,634) 1,714,132 -- (112,502)
Future income tax expense (511,040) 537,252 (26,212)(1) --
----------- ----------- -------- ---------
Future net cash flows 1,166,389 (1,105,492) (26,212) 34,685
Discounted at 10% per year (742,981) 721,025 13,815 (2) (8,141)
----------- ----------- -------- ---------
Standardized measure of discounted future net cash
flows $ 423,408 $ (384,467) $(12,397) $ 26,544
=========== =========== ======== =========
(1) Estimated future income taxes for PLX and PXP are calculated on a
consolidated basis for each entity. The pro forma adjustment reflects the
effect of calculating estimated future income taxes for PLX after the
spin-off.
(2) Reflects the effect of the pro forma adjustment to estimated future income
taxes.
(c) Exhibits
10.1 Secured Term Loan Agreement dated as of December 6, 2002, by and among
Plains Resources Inc., Bank of Montreal as Administrative Agent, Bank
One, NA, as Syndication Agent, Wells Fargo Bank Texas, NA, as Collateral
Agent and Documentation Agent, and the Lenders named within.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Company has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
PLAINS RESOURCES INC.
Date: January 2, 2003 /s/ John T. Raymond
--------------------------------------
John T. Raymond
President and Chief Executive Officer