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FORM 10-K FOR FISCAL YEAR ENDED DECEMBER 31, 1998NOTES TO CONSOLIDATED FINANCIAL STATEMENTS7. Related-Party Transactions
The Company is the operator of a substantial number of properties owned by its affiliated limited partnerships and joint ventures and accordingly, charges these entities and third-party joint interest owners operating fees. The Company is also reimbursed for direct, administrative, and overhead costs incurred in conducting the business of the limited partnerships, which totaled approximately $5,000,000, $6,300,000, and $6,100,000 in 1998, 1997, and 1996, respectively. The Company was also reimbursed by the limited partnerships and joint ventures for costs incurred in the screening, evaluation, and acquisition of producing oil and gas properties on their behalf. Such costs totaled approximately $490,000 and $250,000 in 1997 and 1996, respectively. The Company, with the acquisitions made in 1997, has fulfilled its responsibility of acquiring properties for such partnerships, as those partnerships are fully invested in properties. In the case where the limited partners voted to sell their remaining properties and liquidate their limited partnerships, the Company was also reimbursed for direct, administrative, and overhead costs incurred in the disposition of such properties, which costs totaled approximately $580,000, $675,000, and $805,000 in 1998, 1997, and 1996, respectively. The ESOP can borrow money from the Company to buy Company stock. This was done in September 1996 to purchase 25,000 shares (adjusted to 27,500 shares after the October 1, 1997 10% stock dividend) from the Company’s chairman. Benefits will be paid in a lump sum or installments, and the participants generally have the choice of receiving cash or stock.
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This page was last updated on Saturday, February 08, 2003 , at 07:46:30 PM . Copyright © 1994-2008 by Swift Energy Company. |
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