KELLEY OIL & GAS CORPORATION ANNOUNCES RESULTS OF PREFERRED STOCK ELECTION IN CONSOLIDATION; Elections for Fewer Preferred Shares Reduce Dividend Requirements.HOUSTON--(BUSINESS WIRE)--KELLEY OIL & GAS CORPORATION (Nasdaq NM:KOGC KOGC Kimberley Oaks Golf Course (St. Charles, Michigan) ) announced today that 74 percent in interest of the former public unitholders of Kelley Oil & Gas Partners, Ltd. ("Kelley Partners") elected to receive all common stock rather than a combination of common and preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. in the consolidation with Kelley Oil Corporation ("Kelley Oil"). As a result, the company issued 649,807 shares of its $2.625 convertible exchangeable preferred stock Convertible exchangeable preferred stock Convertible preferred stock that may be exchanged, at the issuer's option, into convertible bonds that have the same conversion features as the convertible preferred stock. to the unitholders rather than the maximum 2,470,112 preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. they were otherwise entitled to receive. Combined with the preferred shares issued to holders of Kelley Oil's equivalent preferred stock in the consolidation, the company has a total of 2,442,323 shares of its $2.625 convertible exchangeable preferred stock currently outstanding, together with approximately 43.7 million common shares. David Kelley, Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , said "We are pleased that so many unitholders elected common stock in the consolidation because it lowers our annual dividend requirements by $4.8 million and shows confidence in our growth potential. With the ability to retain more of our combined cash flow for drilling activities, a major goal of the consolidation has been achieved." Kelley Oil & Gas Corporation is an independent exploration and production company with oil and gas properties located primarily in Louisiana. A subsidiary of the company is the managing general partner of Kelley Partners and separate development partnerships in which it owns controlling interests controlling interest The ownership of a quantity of outstanding corporate stock sufficient to control the actions of the firm. Controlling interest often involves ownership of significantly less than 51% of a firm's outstanding stock because many owners fail . The company's common and preferred stock are traded on the Nasdaq National Market under the symbols KOGC and KOGCP. CONTACT: Kelley Oil & Gas Corporation, Houston Frances Gomulka, (713) 652-5200 |
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