Houston Exploration Co. plans to revise its second and third quarter cash flow statements by $60 million because it misclassified a component of its asset exchange with KeySpan Corp. in June. KeySpan announced last year it would sell its ownership stake in the producer, and last May the companies completed a $449 million share transfer exchange that reduced KeySpan’s ownership from 55% to 24% (see Daily GPI, May 26, Nov. 22).
The Houston-based exploration and production (E&P) company said the changes in the consolidated cash flow statements for the quarters ended June 30 and Sept. 30 are offsetting and will not have any impact on previously reported net cash provided by operating activities, total cash flows, net income or shareholder equity.
In the exchange earlier this year, Houston Exploration redeemed and canceled 10.8 million shares of its common stock owned by KeySpan. The E&P company then gave KeySpan all the stock of Seneca-Upshur Petroleum Inc., to which Houston Exploration had contributed all of its Appalachian Basin assets and $389 million cash.
Houston Exploration said the $60 million was misclassified as a cash item, and was included in consolidated statements of cash flow, representing the value of its Appalachian Basin assets. The $389 million in cash will remain on the consolidated cash flow statement.
©Copyright 2004 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.
© 2020 Natural Gas Intelligence. All rights reserved.
ISSN © 1532-1231 | ISSN © 2577-9877 |