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) January 8, 2003
 
 
 
VINTAGE PETROLEUM, INC.
(Exact name of registrant as specified in its charter)
 
 
 
Delaware
  
1-10578
  
73-1182669
(State or other
jurisdiction of incorporation)
  
(Commission File
Number)
  
(IRS Employer
Identification No.)
 
 
 
110 West Seventh Street, Tulsa, Oklahoma
  
74119
(Address of principal executive offices)
  
(Zip Code)
 
 
 
Registrant’s telephone number, including area code (918) 592-0101
 
 
 
Not applicable
(Former name or former address, if changed since last report)
 
 
 

 
Item 5.    Other Events.
 
The Company has previously engaged in oil and gas hedging activities and intends to continue to consider various hedging arrangements to realize commodity prices which it considers favorable. The Company has entered into various oil hedges (swap agreements) covering approximately 3.0 MMBbls at a weighted average price of $24.90 per Bbl (NYMEX reference price) for various periods in 2003. The Company has also entered into various gas hedges (swap agreements) covering approximately 20.1 million MMBtu of its gas production for calendar year 2003. The Canadian portion of the gas swap agreements (approximately 9.1 million MMBtu) is at the weighted average NYMEX reference price of 6.63 Canadian dollars per MMBtu and will be settled in Canadian dollars. The U.S. portion of the gas swap agreements (approximately 11.0 million MMBtu) is at a weighted average NYMEX reference price of $4.00 per MMBtu. Additionally, the Company has entered into basis swap agreements for approximately 8.4 million MMBtu of its U.S. gas production covered by the gas swap agreements. These basis swaps establish a differential between the NYMEX reference price and the various delivery points at levels that are comparable to the historical differentials received by the Company. The AECO gas price index is the reference price used for most of the Company’s Canadian gas spot sales. However, the Company has not yet entered into any basis swaps to fix the differential between the AECO gas price index and NYMEX reference prices.
 
The following table reflects the Bbls hedged and the corresponding weighted average NYMEX reference prices by quarter:
 
Quarter Ending
   
Barrels
     
NYMEX
Reference Price
Per Bbl
March 31, 2003
   
945,000
     
$
26.12
June 30, 2003
   
682,500
     
 
24.76
September 30, 2003
   
690,000
     
 
24.30
December 31, 2003
   
690,000
     
 
23.95
 
The following table reflects the MMBtu (million British thermal units) hedged in the U.S. and the corresponding NYMEX reference prices by quarter:
 
Quarter Ending
   
MMBtu
     
NYMEX
Reference Price
Per MMBtu
March 31, 2003
   
2,700,000
     
$
4.20
June 30, 2003
   
2,730,000
     
 
3.86
September 30, 2003
   
2,760,000
     
 
3.88
December 31, 2003
   
2,760,000
     
 
4.04
 
The following table reflects the MMBtu hedged in Canada and the corresponding NYMEX reference prices by quarter:
 
Quarter Ending
   
MMBtu
     
NYMEX
Reference Price
Per MMBtu
           
(Canadian dollars)
March 31, 2003
   
2,250,000
     
C$7.09
June 30, 2003
   
2,275,000
     
6.42
September 30, 2003
   
2,300,000
     
6.39
December 31, 2003
   
2,300,000
     
6.64
 
The counterparties to the Company’s swap agreements are commercial or investment banks. The Company continues to monitor oil and gas prices and may enter into additional oil and gas hedges or swaps in the future.

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SIGNATURES
 
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.
 
VINTAGE PETROLEUM, INC.
By:  /s/    Michael F. Meimerstorf
Michael F. Meimerstorf
Vice President and Controller
 
Date:  January 8, 2003

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