19 Dec 2005director interest notice● Neutral
PARALLEL PETROLEUM CORP Chief Financial Officer Steven D Foster exercised stock options for 25,000 shares and disposed of 25,000 shares.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
23 Nov 2005material agreement● Neutral
On November 21, 2005 the Compensation Committee set 2006 base salaries and 2005 cash bonuses for executive officers. For example, CEO Larry Oldham gets $300,000 salary and a $175,000 bonus, and Chairman Thomas Cambridge $135,000 and $25,000. Total 2005 bonuses are $487,500 across six officers. Routine pay decisions with no change to the company's business.
21 Nov 2005asset acquisition disposition● NeutralMajor
On November 15, 2005 Parallel closed the first part of the Lynx purchase for $20.8 million, covering about 2.9 million of the 6.4 million barrels of oil equivalent of proved reserves if everything closes, and became operator. To fund it, Parallel took a new $50 million second-lien term loan from BNP Paribas and Citibank Texas, due November 15, 2010 at LIBOR plus 4.50%, with a $750,000 arrangement fee. About $25.7 million repaid revolver debt and $24.3 million is for the remaining Lynx properties. The loan ranks behind the bank credit facility, is secured by second liens, and a default on it triggers a default on the senior facility. A fourth amendment to the credit agreement permitted this. The Lynx deal moves from signed to partly completed, and Parallel's debt rises.
20 Oct 2005material agreement● NeutralMajor
On October 14, 2005 Parallel extended its bank credit facility to October 31, 2010, raised the borrowing base from $90 million to $100 million (next redetermination about April 1, 2006) and cut the interest margin. It also agreed to buy oil and gas properties in Andrews and Gaines Counties, Texas from Lynx Production and nine other sellers for $44.5 million, with Parallel taking a 90% working interest and 67.5% net revenue interest, and becoming operator. Closings run November 15, 2005 to January 15, 2006, funded from the revolver, with the properties pledged as collateral. Parallel also spent $1.5 million on oil price collars (floor $55) covering the purchase. This continues the 2004-05 Andrews/Gaines acquisition strategy and its debt funding.
23 Sept 2005material agreement● Neutral
Nasdaq told Parallel on September 19, 2005 that anti-dilution terms in warrants issued in 2001 to Stonington Corporation (now exercisable for 285,651 shares at $2.84) breached its shareholder-approval rule. On September 20 the warrants were amended to cap exercise at 4,000,000 shares (about 19.9% of shares then outstanding), and on September 21 Nasdaq confirmed compliance and closed the matter. No listing action resulted.
29 Aug 2005material agreement▼ Bad
On August 23, 2005 Parallel's board expanded its sale-linked Incentive and Retention Plan by adding 400,000 base shares with a $8.62 base price, on top of the original 1,080,362 shares at $3.73. If the company is sold or control changes, the cash pool paid to officers and employees rises; the filing's example is $10,286,593 at a $12.00 deal price. Parallel says a sale or change of control is only 'possible' and records no liability. The same filing discloses the director option grants already reported on August 25: 50,000 shares each to Chitwood, Poage and Shrader, and 25,000 under each of two plans to Oring, all at $12.27 and vesting over five years from August 23, 2006.
25 Aug 2005director interest notice● Neutral
PARALLEL PETROLEUM CORP director Dewayne E Chitwood received a stock option grant for 50,000 shares.
25 Aug 2005director interest notice● Neutral
PARALLEL PETROLEUM CORP director Ray M Poage received a stock option grant for 50,000 shares.
25 Aug 2005director interest notice● Neutral
PARALLEL PETROLEUM CORP director Martin B Oring received a stock option grant for 50,000 shares.
25 Aug 2005director interest notice● Neutral
PARALLEL PETROLEUM CORP director Jeffrey G Shrader received a stock option grant for 50,000 shares.
10 June 2005capital raising announcement● NeutralMajor
All holders of the 950,000 outstanding 6% Convertible Preferred shares chose to convert instead of being redeemed for cash on June 6, 2005. They receive about 2.8571 common shares each, around 2,714,280 shares in total, plus $270,750 of accrued dividends. The preferred is no longer outstanding, and existing common holders are diluted by the new shares.
9 June 2005director interest notice● Neutral
PARALLEL PETROLEUM CORP Chief Financial Officer Steven D Foster bought 1,600 shares on the open market at $7.72.
9 June 2005director interest notice● Neutral
PARALLEL PETROLEUM CORP Vice President John S Rutherford exercised stock options for 40,000 shares and disposed of 40,000 shares.
6 June 2005director interest notice● Neutral
PARALLEL PETROLEUM CORP director Ray M Poage bought 3,100 shares on the open market.
3 June 2005director interest notice● Neutral
PARALLEL PETROLEUM CORP Chief Operating Officer Donald E Tiffin bought 2,850 shares on the open market.
27 Apr 2005material agreement● Neutral
On April 21, 2005 the Compensation Committee gave one-off discretionary cash bonuses of $25,000 each to Thomas R. Cambridge, Larry C. Oldham and Donald E. Tiffin. The filing ties them to recent efforts, including the completed stock offering and plans to speed up development, and says they were not under any plan or agreement.
8 Apr 2005material agreement▲ GoodMajor
On April 5, 2005 Parallel and its lenders amended the credit agreement again. The borrowing base is set at $90 million, with the next redetermination around October 1, 2005. The interest margin is reset to 2.25%-2.75% depending on usage, and the cap on certain other investments in 2005 is raised to $4.25 million. This follows the 2004 acquisitions and the earlier December covenant amendment.
14 Feb 2005substantial holder notice● Neutral
Wellington Management Company, LLP reported a PARALLEL PETROLEUM CORP shareholding of 3,555,800 shares (13.98% of votes) in a periodic institutional filing.
4 Feb 2005material agreement● NeutralMajor
On February 3, 2005 Parallel agreed to sell 5,000,000 new common shares through underwriters Jefferies and Sterne Agee at $4.9538 per share to the underwriters, with an initial public price of $5.27. The underwriters have an option on 750,000 more shares. This adds to the share count and so dilutes existing holders. The filing does not say how the proceeds will be used.
4 Feb 2005securities registration● Neutral
PARALLEL PETROLEUM CORP filed a prospectus supplement for an offering off its existing shelf.
19 Jan 2005securities registration● Neutral
PARALLEL PETROLEUM CORP filed the final prospectus for a registered offering.
7 Jan 2005material agreement▲ Good
Parallel closed 10 more of the follow-on Caprock-area purchases on January 4-5, 2005, for a net price of about $1.52 million (gross $1.71 million), funded from the revolver and pledged as collateral. Its average working interest rises from about 69.8% to about 76.9%, adding roughly 268,000 boe of proved reserves and about 27 boe/d. One of the 28 agreements is still not reported as closed.
4 Jan 2005material agreement▲ Good
Parallel closed 17 of the 27 follow-on purchases of remaining Caprock-area interests on December 30-31, 2004, for a net price of $2.85 million (gross $3.49 million), funded from the revolver. Its average working interest in the properties rises from about 56.6% to about 69.8%, adding roughly 500,000 boe of proved reserves and about 50 boe/d. A 28th agreement was signed December 15, and 11 remaining deals are due to close by January 31, 2005.
30 Dec 2004material agreement● NeutralMajor
Parallel and its lenders loosened the debt-to-EBITDA limit in the September 2004 credit agreement from 3.00 to 3.70 for the quarters through the end of 2005, then 3.60 during 2006 and 3.50 from 2007. The filing gives no reason for the change. (Inference: the limit was relaxed after the debt-funded acquisitions of fall 2004, but the filing does not say so.) The lenders did not waive any default, and the filing says no default exists.
10 Dec 2004substantial holder notice● Neutral
Wellington Management Company, LLP disclosed a new substantial PARALLEL PETROLEUM CORP shareholding (13.08% of votes).
6 Dec 2004material agreement▲ GoodMajor
On November 30, 2004 Parallel agreed to buy the remaining interests in the same Andrews and Gaines County properties bought from Caprock and Bunn, from 27 unaffiliated working interest owners, for $5,661,108 before adjustments. If all close, its average working interest rises from about 56.6% to about 80.55%. The interests carry an estimated 909,000 barrels of oil equivalent of proved reserves and about 90 barrels of oil equivalent a day. Closings are due by December 31, 2004, except two by January 31, 2005, subject to conditions. The price is to be funded from the revolver, with the properties pledged as collateral. This extends the Caprock purchase and adds to the debt-funded acquisitions.
5 Nov 2004securities registration● Neutral
PARALLEL PETROLEUM CORP amended a filing by which it registered a securities offering with the SEC using its shelf eligibility.
20 Oct 2004asset acquisition disposition▲ GoodMajor
Parallel completed the Caprock and Bunn purchases on October 14, 2004, the day before the scheduled closing. Net prices were about $12.87 million for Caprock's properties and about $746,000 for Bunn's, funded from the revolver and pledged as collateral. The properties in Andrews and Gaines Counties, Texas cover about 3,109 net acres and 39 net producing wells, with estimated proved reserves of 2.0 million barrels of oil equivalent and about 200 barrels of oil equivalent a day of production. Parallel's average working interest is 56.6%, and it becomes operator. This resolves the Caprock deal agreed on September 16.
14 Oct 2004material agreement▲ GoodMajor
On October 8, 2004 Parallel bought more Fullerton Field interests in Andrews County, Texas from Kaiser-Francis Oil Company for a net price of about $5.63 million, funded from the revolver and pledged as collateral. The deal covers the Lineberry and Grogan leases and lifts Parallel's average working interest in them from 35.3% to 76.5%. It adds about 100 barrels of oil equivalent a day, unhedged, and an estimated 540,000 barrels of oil equivalent of proved reserves. This is a further debt-funded addition to the Fullerton position built since the 2002 acquisition.
13 Oct 2004securities registration● Neutral
PARALLEL PETROLEUM CORP registered a securities offering with the SEC using its shelf eligibility.