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446394743
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Zapata Off-Shore Company: Long-Term Debt Repayment Program, March 1960
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446394743
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Zapata Off-Shore Company: Long-Term Debt Repayment Program, March 1960
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25849-009
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George H. W. Bush Papers
Zapata Oil Files
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446394743
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1960-03-31
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1960
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1960-03-01
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1960
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Originally Processed With FOIA(s):
foia Number:
S
S
FOIA
MARKER
This is not a textual record. This is used as an
administrative marker by the George Bush Presidential
Library Staff.
Record Group/Collection: Donated Historical Materials
Collection/Office of Origin: Bush, George H.W., Collection
Series:
Personal Papers
Subseries:
Zapata Oil File, Business Alphabetical File
OA/ID Number:
25849
Folder ID Number:
25849-009
Folder Title:
Zapata Off-Shore Company: Long-Term Debt Repayment Program, March 1960
Stack:
Row:
Section:
Shelf:
Position:
G
5
1
3
4
ZAPATA OFF-SHORE COMPANY
LONG-TERM DEBT REPAYMENT PROGRAM
MARCH, 1960
1991₦ эӏојтО
Блс 8.
MOT
ZAPATA OFF-SHORE COMPANY
INTER-OFFICE CORRESPONDENCE
TO: Mr. George H. W. Bush
FROM:
Frank M. Allen
CC:
DATE:
March 1, 1960
SUBJECT: Application of cash flow to long-term debt.
in addition to those stated on the schedules:
The attached schedules are based on the following assumptions
Loan:
$2,500,000.
Interest rate:
8 per cent
Payments (1)
$ 40,000 per month (or slightly more than
5 years)
(2)
$26,667 per month (or slightly less than
8 years)
Cash flow(1)
Break-even
(2)
(2)
Previous computations slightly adjusted.
note have been eliminated from all schedules. Our cash flow on
Insurance expenses, insurance deposits and payments insurance
putation has been reduced to allow payment of insurance note and com-
deposits along with other drilling expenses.
Assumption (1) has been changed to point out that
and Vinegarroon demonstrated the ability to generate the Scorpion income
set forth in the computation in January, 1960, and that Nola I
operating results are consistent with the estimate used.
70
FMA:ew
Frank M. Allen
FORM #128
WITH
THEMAS 159
same AMERICANS
2,5
BLVD 21
ZAPATA OFF-SHORE COMPANY
PRO FORMA BALANCE SHEET--DECEMBER 10, 1959
ASSETS
CURRENT ASSETS:
Cash
$ 260,000
Accounts receivable
950,000
Prepaid insurance
400,000
Prepayments--foreign operations
120,000
Total current assets
$ 1,730,000
PROPERTY AND EQUIPMENT
$10,550,000
Less--reserves for depreciation
3,810,000
Total property and equipment
$ 6,740,000
INVESTMENTS:
Common stock of subsidiaries
$
5,000
Advances
275,000
Total investments
$ 280,000
$ 8,750,000
LIABILITIES
CURRENT LIABILITIES:
Bank loan
$ 600,000
Current maturities on long-term debt
1,030,000
Insurance company loan
320,000
Accounts payable and accrued liabilities
630,000
Total current liabilities
2,580,000
ESTIMATED FUTURE FEDERAL INCOME TAXES PAYABLE
$ 370,000
LONG-TERM DEBT (See Notes to Pro Forma Balance
Sheet)
$ 1,220,000
STOCKHOLDERS' EQUITY:
Common stock
$ 500,000
Capital in excess of par value
3,550,000
Income retained
540,000
$ 4,590,000
Less--Common stock repurchased
10,000
Total stockholders' equity.
$ 4,580,000
$ 8,750,000
See accompanying notes to Pro Forma Balance Sheet.
ZAPATA OFF-SHORE COMPANY
BALANCE SHEET
OCTOBER 31, 1959 AND SEPTEMBER 30, 1959
OCTOBER 31, SEPTEMBER 30,
ASSETS
1959
1959
CURRENT ASSETS:
Cash
$ 443,068
$ 824,540
Accounts receivable
1,057,027
784,704
Prepaid expenses:
Insurance
47,627
65,913
Foreign operations
92,526
88,456
Total current assets
$1,640,248
$1,763,613
PROPERTY AND EQUIPMENT, at cost
(substantially all pledged to secure
mortgage notes payable):
Mobile offshore drilling platforms,
drilling vessels and equipment
$8,805,965
$8,896,477
Offshore oil and gas property. interests,
wells and equipment
671,396
685,335
Automobiles and office equipment
53,700
52,265
$9,531,061
$9,634,077
Less--Reserves for depreciation
3,645,227
3,620,569
Total property and equipment
$5,885,834
$6,013,508
INVESTMENTS:
Common stocks of Zapata International
Corp. and Zapata de Mexico, S.A.
$ 1,000
$ 1,000
Advances
150,531
-o-
Total investments
$ 151,531
$ 1,000
$7,677,613
$7,778,121
ZAPATA OFF-SHORE COMPANY
BALANCE SHEET, PAGE 2.
OCTOBER 31, SEPTEMBER 30,
LIABILITIES
1959
1959
CURRENT LIABILITIES:
Current maturities on long-term debt
$ 794,379
$1,002,000
Accounts payable and accrued liabilities
1,252,581
742,940
Total current liabilities
$2,046,960
$1,744,940
ESTIMATED FUTURE FEDERAL INCOME TAXES
PAYABLE, resulting from use of accelerated
depreciation for tax reporting
$ 343,000
$ 379,000
LONG TERM DEBT:
Mortgage note payable, less current
maturities of $506,379
$ 724,621
$ 786,000
Advances by supplier, less estimated
current maturities of $180,000 (reversed
at October 31; pending closing of loan)
-0-
221,529
Without recourse notes issued to vendor of
drilling tenders, less current maturities
of $288,000
15,000
63,000
Total long-term debt
$ 739,621
$1,070,529
STOCKHOLDERS' EQUITY:
Common stock, 50c par value--authorized,
1,500,000 shares; issued, 1,006,337
shares; reserved for employee stock
option, 14,000 shares
$ 503,169
$ 503,169
Capital in excess of par value
3,546,074
3,546,074
Income retained, end of period (under
loan agreement dividends may not be
paid)
511,224
546,844
$4,560,467
$4,596,087
Less--common stock repurchased, 2,500
shares at cost (reserved for employee
stock option)
12,435
12,435
Total stockholders' equity
$4,548,032
$4,583,652
$7,677,613
$7,778,121
ZAPATA OFF-SHORE COMPANY
FMA
REPAYMENT PROGRAM FOR LONG-TERM DEBT
JULY, 1959
Schedule I
ZAPATA OFF-SHORE COMPANY
MAJOR CASH EXPENDITURES NOT CHARGEABLE TO OPERATIONS--1959
Bank Supply House
Loan
Advance
Purchase 15,000 feet of 4-1/2" drill pipe from
Bahama California Oil Company
$ 92,000
Outfit and transport the Nola I to the Gulf of
Paria (Venezuela) in a condition ready to
commence drilling
250,000
First and second Magnolia YFs-
Down payments at $30,000 each
60,000
Cost to convert to over-the-side floating
drilling vessels @ $300,000
$600,000
Installment note payments during conversion and
initial month's operations - both vessels
48,000
Drill pipe at $40,000 each
80,000
Platform and production facilities for Block 86
producing gas property
100,000
Extend legs of mobile barge
200,000
Supply house down payment
60,000
(60,000)
Total cash expenditures to be financed
$ 890,000 $540,000
Balance, August 1, 1959
600,000
Total bank loan
$1,490,000
Note: No provision has been made for increased working capital
needed to operate the two Magnolia YFs. This is
expected to be provided from cash flow in excess of
debt servicing.