| Petroglyph Energy, Inc. | |||
| Proposed Ticker: | PGEI | 6209 North Highway 61 | |
| Exchange: | NASDAQ-National Market | Hutchinson, KS 67502 | |
| Industry: | Natural Resources (SIC Code 1311) | (316) 665-8500 | |
| # of Employees: | 35 | ||
| Type of Shares: | Common Shares | Filing Date: | 8/22/97 | |
| U.S. Shares Filed: | 2,333,333 | Filing Range: | $14.00 - $16.00 | |
| Non-U.S. Shares Filed: | 0 | Offering Amount: | $34,999,995 | |
| Primary Shares: | 2,333,333 | Expenses: | - | |
| Secondary Shares: | 0 | Shares Out After: | 5,166,666 |
| Manager | Tier | Phone |
| Prudential Securities Incorporated | Lead Manager | (212) 778-5420 |
| Johnson Rice & Company | Co-manager | (504) 525-3767 |
| Oppenheimer & Company, Inc. | Co-manager | (212) 667-7400 |
| Issuer's Law Firm: | Thompson & Knight |
| Bank's Law Firm: | Baker & Botts |
| Auditor: | Arthur Andersen |
Dollar amounts in U.S. millions except for per share data | |||||
| 6 Month Ending Financials | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 12/31/96 | 6/30/97 | 6/30/96 | 6/30/97 | ||
| Revenue: | $5.46 | $2.31 | $3.14 | Assets: | $23.55 |
| Net Income: | $0.30 | -$0.17 | $0.59 | Curr Assets: | $4.99 |
| EPS: | Liabilities: | $11.02 | |||
| Prior EPS: | $0.09 | $0.91 | Curr Liabilities: | $5.99 | |
| Cash Flow/Oper: | $4.13 | $4.33 | -$0.10 | Equity: | $12.52 |
| Cash Flow/Fin: | -$3.93 | -$5.63 | $2.82 | Cash: | $0.37 |
| Cash Flow/Inv: | $0.30 | -$5.63 | Working Cap: | -$1.00 | |
| Business Description |
| The company is an independent energy company engaged in the exploration, development and acquisition of crude oil and natural gas reserves. Since its inception in 1993, the Company has grown through leasehold acquisitions which, together with associated development drilling, have increased the Company's proved reserves, production, revenue and cash flow. The Company seeks to develop properties in regions with known producing horizons, significant available undeveloped acreage and considerable opportunities to increase reserves, production and ultimate recoveries through development drilling and enhanced oil recovery techniques. The Company's primary activities are focused in the Uinta Basin in Utah, where it is implementing enhanced oil recovery projects in the Lower Green River formation of the Greater Monument Butte Region. The Company anticipates spending approximately $35 million in 1997 and 1998 in connection with these projects. The Company has identified several other formations in the Uinta Basin above and below the Lower Green River formation that it believes have the potential to be commercially productive. The Company recently acquired 56,000 gross and net acres in the Raton Basin in Colorado. The Company plans to spend up to approximately $3 million to initiate a pilot coalbed methane project to determine the commercial viability of development of this area. |
| Competition |
| The Company operates in the highly competitive areas of oil and natural gas exploration, exploitation, acquisition and production with other companies, many of which have substantially larger financial resources, operations, staffs and facilities. In seeking to acquire desirable producing properties or new leases for future exploration and in marketing its oil and natural gas production, the Company faces intense competition from both major and independent oil and natural gas companies. In addition to the development of its existing proved reserves, the Company expects that its inventory of unproved drilling locations will be the primary source of new reserves, production and cash flow over the next few years. The Company's properties in the Uinta Basin constitute the majority of the Company's existing inventory. Approximately 82% of the Company's fiscal year 1997 capital expenditure budget is expected to be associated with drilling and acreage acquisition activity in the Uinta Basin. There can be no assurance that the Uinta Basin will yield substantial economic returns. Failure of the Uinta Basin to yield significant quantities of economically attractive reserves in production could have a material adverse impact on the Company's future financial condition and results of operations and could result in a write-off of a significant portion of its investment in the Uinta Basin. In addition, recent heavy drilling activity by a number of operators in the Uinta Basin may reduce or limit the availability of equipment and supplies or reduce demand for the Company's production, either of which would impact the Company more adversely than if the Company were geographically diversified. The Company's competitors include major integrated oil and natural gas companies and numerous independent oil and natural gas companies, individuals and drilling and income programs. Many of itscompetitors are large, well established companies with substantially larger operating staffs and greater capital resources than the Company's and which, in many instances, have been engaged in the energy business for a much longer time than the Company. Such companies may be able to pay more for productive oil and natural gas properties and exploratory prospects and to define, evaluate, bid for and purchase a greater number of properties and prospects than the Company's financial or human resources permit. The Company's ability to acquire additional properties and to discover reserves in the future will be dependent upon its ability to evaluate and select suitable properties and to consummate transactions in a highly competitive environment. |
| Business Plan |
| The company's strategy, which includes the following key elements, is to increase its oil and natural gas reserves, oil and natural gas production and cash flow per share: (I) Develop Drillsite Inventory, (ii) Exploit Existing Reserve Base, (iii) Control of Operations and (iv) Acquire Additional Property Interests. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to fund capital expenditures relating to the company's development programs, to repay existing indebtedness and for general corporate purposes. |
| Name of Shareholder | % Owned Before | % Owned After |
| David R. Albin | 49.85% | 27.34% |
| Kenneth A. Hersh | 48.48% | 26.59% |
| R. Gamble Baldwin | 40.29% | 22.09% |
| Natural Gas Partners, L.P. | 39.68% | 21.76% |
| Natural Gas Partners III, L.P. | 25.40% | 13.93% |
| Natural Gas Partners II, L.P. | 22.63% | 12.41% |
| Officer Name | Title | Age |
| Sidney Kennard Smith | Executive Vice President and Chief Operating Officer | 53 |
| Robert A. Christensen | Executive Vice President, Chief Technical Officer and Director | 51 |
| Robert C. Murdock | President, Chief Executive Officer and Chairman of the Board | 40 |
| Tim A. Lucas | Vice President and Chief Financial Officer | 33 |