Form 8-K

 

UNITED STATES

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): December 16, 2003

 

 

SPINNAKER EXPLORATION COMPANY

(Exact Name of Registrant as Specified in Its Charter)

 

Delaware

(State or Other Jurisdiction of Incorporation)

 

001-16009

(Commission File Number)

   

76-0560101

(I.R.S. Employer Identification No.)

1200 Smith Street, Suite 800

Houston, Texas

(Address of Principal Executive Offices)

   

77002

(Zip Code)

 

Registrant’s telephone number, including area code: (713) 759-1770

 

Item 5. Other Events and Regulation FD Disclosure.

 

Derivatives and Hedging Activities

 

The Company enters into New York Mercantile Exchange (“NYMEX”) related swap contracts and collar arrangements from time to time to reduce its exposure to fluctuations in natural gas and oil prices and to achieve more predictable cash flow. These swap contracts and collar arrangements will settle based on the reported settlement price on the NYMEX for the last trading day of each month for natural gas.

 

Subsequent to filing the third quarter Form 10-Q on November 12, 2003, the Company entered into the following 2004 commodity price risk management positions. Prior to these transactions, the Company had not entered into any hedging arrangements for 2004.

 

Natural Gas Swap Contracts

 

Period

   

Average
Daily

Volume
(MMBtus)

   

Weighted
Average

Price

(Per
MMBtu)

     

First Quarter 2004

    30,000    $ 6.11     

Second Quarter 2004

    15,000    $ 4.91     

Third Quarter 2004

    15,000    $ 4.87     

Fourth Quarter 2004

    8,370    $ 4.92     

 

Natural Gas Collar Arrangements

 

Period

   

Average
Daily

Volume
(MMBtus)

   

Weighted
Average

Floor Price
(Per
MMBtu)

   

Weighted
Average

Ceiling Price
(Per MMBtu)

First Quarter 2004

    20,000    $ 5.25    $ 6.64

Second Quarter 2004

    20,000    $ 4.38    $ 5.48

Third Quarter 2004

    20,000    $ 4.38    $ 5.48

Fourth Quarter 2004

    13,370    $ 4.44    $ 5.56

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.

 

    SPINNAKER EXPLORATION COMPANY

Date:    December 16, 2003

   By:   /s/    JEFFREY C. ZARUBA
     
    Name:    Jeffrey C. Zaruba
    Title:      Vice President, Treasurer and Assistant Secretary