SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934*
Pogo Producing Company
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(Name of Issuer)
Common Stock, par value $1.00 per share
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(Title of Class of Securities)
730448107
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(CUSIP Number of Class of Securities)
Daniel S. Loeb
Third Point LLC
390 Park Avenue
New York, NY 10022
(212) 224-7400
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(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
Copies to:
Michael A. Schwartz, Esq.
Willkie Farr & Gallagher LLP
787 Seventh Avenue
New York, NY 10019-6099
(212) 728-8000
November 9, 2006
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(Date of Event which Requires
Filing of this Schedule)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Schedule 13D, and is filing this
schedule because of ss.ss. 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the
following box: [ ]
NOTE: Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. See Rule 240.13d-7 for other
parties to whom copies are to be sent.
* The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
SCHEDULE 13D
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CUSIP No. 730448107 Page 2 of 11 Pages
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1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Third Point LLC I.D. #13-3922602
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [ ]
(b) [X]
----------- --------------------------------------------------------------------
3 SEC USE ONLY
----------- -------------------------------------------------------------------
4 SOURCE OF FUNDS*
AF
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------- --------- ------------------------------------------------
7 SOLE VOTING POWER
0
--------- ------------------------------------------------
NUMBER OF SHARES 8 SHARED VOTING POWER
BENEFICIALLY OWNED
BY EACH REPORTING 4,200,000
PERSON WITH --------- ------------------------------------------------
9 SOLE DISPOSITIVE POWER
0
--------- ------------------------------------------------
10 SHARED DISPOSITIVE POWER
4,200,000
----------- --------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
4,200,000
----------- --------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* [ ]
----------- --------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.2%
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14 TYPE OF REPORTING PERSON*
OO
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SCHEDULE 13D
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CUSIP No. 730448107 Page 3 of 11 Pages
-------------------------------- ----------------------------------
----------- --------------------------------------------------------------------
1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Daniel S. Loeb
----------- --------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [ ]
(b) [X]
----------- --------------------------------------------------------------------
3 SEC USE ONLY
----------- -------------------------------------------------------------------
4 SOURCE OF FUNDS*
AF
----------- --------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) [ ]
----------- --------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
--------------------- --------- ------------------------------------------------
7 SOLE VOTING POWER
0
--------- ------------------------------------------------
NUMBER OF SHARES 8 SHARED VOTING POWER
BENEFICIALLY OWNED
BY EACH REPORTING 4,200,000
PERSON WITH --------- ------------------------------------------------
9 SOLE DISPOSITIVE POWER
0
--------- ------------------------------------------------
10 SHARED DISPOSITIVE POWER
4,200,000
----------- --------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
4,200,000
----------- --------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* [ ]
----------- --------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.2%
----------- --------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
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This Schedule 13D is being filed on behalf of Third Point LLC, a Delaware
limited liability company (the "Management Company"), and Daniel S. Loeb, an
individual ("Mr. Loeb", and together with the Management Company, the "Reporting
Persons"). This Schedule 13D relates to the Common Stock, par value $1.00 per
share, of Pogo Producing Company, a Delaware corporation (the "Company"). Unless
the context otherwise requires, references herein to the "Common Stock" are to
such Common Stock of the Company. The Management Company is the investment
manager or adviser to a variety of hedge funds and managed accounts (such funds
and accounts, collectively, the "Funds"). The Funds directly own the Common
Stock to which this Schedule 13D relates, and the Reporting Persons may be
deemed to have beneficial ownership over such Common Stock by virtue of the
authority granted to them by the Funds to vote and to dispose of the securities
held by the Funds, including the Common Stock.
Item 1. Security and Issuer.
This statement on Schedule 13D relates to the Common Stock of the Company
and is being filed pursuant to Rule 13d-1 under the Securities Exchange Act of
1934, as amended (the "Exchange Act"). The address of the principal executive
offices of the Company is 5 Greenway Plaza, Suite 2700, Houston, Texas 77046.
Item 2. Identity and Background.
(a) This statement is filed by the Reporting Persons. Daniel S. Loeb is the
chief executive officer of the Management Company and controls the Management
Company's business activities. The Management Company is organized as a limited
liability company under the laws of the State of Delaware.
(b) The address of the principal business and principal office of the
Management Company and Mr. Loeb is 390 Park Avenue, 18th floor, New York, New
York 10022.
(c) The principal business of the Management Company is to serve as
investment manager or adviser to the Funds, and to control the investing and
trading in securities of the Funds. The principal business of Mr. Loeb is to act
as the chief executive officer of the Management Company.
(d) None of the Reporting Persons, nor, to the best of their knowledge, any
of their directors, executive officers, general partners or members has, during
the last five years, been convicted in a criminal proceeding (excluding traffic
violations or similar misdemeanors).
(e) None of the Reporting Persons, nor, to the best of their knowledge, any
of their directors, executive officers, general
4
partners or members has, during the last five years, been a party to a civil
proceeding of a judicial or administrative body of competent jurisdiction and as
a result of such proceeding was or is subject to a judgment, decree or final
order enjoining future violations of, or prohibiting or mandating activities
subject to, federal or state securities laws or finding any violation with
respect to such laws.
(f) Mr. Loeb is a United States citizen.
Item 3. Source and Amount of Funds or Other Consideration.
The Funds expended an aggregate of approximately $181,481,435 of their own
investment capital to acquire the 4,000,000 shares of Common Stock held by them
and approximately $684,900 of their own investment capital to acquire options to
purchase 200,000 shares of Common Stock.
The Funds effect purchases of securities primarily through margin accounts
maintained for them with Bear, Stearns Securities Corp. and Goldman, Sachs &
Co., which may extend margin credit to the Funds as and when required to open or
carry positions in the margin accounts, subject to applicable Federal margin
regulations, stock exchange rules and the firm's credit policies. In such
instances, the positions held in the margin accounts are pledged as collateral
security for the repayment of debit balances in the accounts.
Item 4. Purpose of Transaction.
The purpose of the acquisition by the Funds of beneficial ownership of the
securities is for investment. The acquisition was effected because of the
Reporting Persons' belief that the Company represents an attractive investment
based on the Company's business prospects. The Reporting Persons are engaged in
the investment business. In pursuing this business, the Reporting Persons
analyze the operations, capital structure and markets of companies, including
the Company, on an ongoing basis through analysis of documentation and
discussions with knowledgeable industry and market observers and with
representatives of such companies (often at the invitation of management).
Depending on prevailing market, economic and other conditions, one or more of
the Reporting Persons may from time to time, among other things, hold
discussions with third parties or with management of such companies (including
the Company) in which the Reporting Persons may suggest or take a position with
respect to potential changes in the operations, strategy, management or capital
structure of such companies as a means of enhancing shareholder value. Such
suggestions or positions may relate to one or more of the transactions specified
in clauses (a) through (j) of Item 4 of Schedule 13D of the Exchange Act,
including, without limitation, such matters as disposing of or selling all or a
portion of the company or acquiring another
5
company or business, changing operating or marketing strategies, adopting or not
adopting certain types of anti-takeover measures and restructuring the company's
capitalization or dividend policy. The Reporting Persons presently do not have
any plans or proposals that relate to or would result in any of the actions
required to be described in Item 4 of Schedule 13D. Each of the Reporting
Persons may, at any time, review or reconsider its position with respect to the
Company and formulate plans or proposals with respect to any of such matters.
The Reporting Persons intend to review their investment in the Company on a
continuing basis and, depending upon the price and availability of the Company's
securities, subsequent developments concerning the Company, the Company's
business and prospects, other investment and business opportunities available to
the Reporting Persons, general stock market and economic conditions, tax
considerations and other factors considered relevant, may decide at any time
(via the Funds or otherwise) to increase or decrease the size of their
investment in the Company or to sell any or all of the securities of the Company
that they hold.
Item 5. Interest in Securities of the Issuer.
(a) As of the date of this Schedule 13D, the Management Company
beneficially owns 4,200,000 shares of Common Stock, consisting of the 4,000,000
shares of Common Stock held by the Funds (the "Shares") and 200,000 shares of
Common Stock acquirable upon exercise of options held by the Funds (the
"Options"). The Management Company shares voting and dispositive power over such
holdings with Mr. Loeb and with the Funds. The Shares and shares of Common Stock
acquirable upon exercise of the Options together represent 7.2% of the
58,389,247 shares of Common Stock outstanding as of October 24, 2006, as
reported in the Company's Quarterly Report on Form 10-Q for the quarterly period
ended September 30, 2006. The percentages used herein and in the rest of this
statement are calculated based upon this number of outstanding shares. None of
the individual Funds owns a number of shares of Common Stock representing more
than 5% of such total.
(b) The Management Company and Mr. Loeb share voting and dispositive power
over the 4,200,000 shares of Common Stock beneficially owned by the Funds.
(c) Schedule A hereto sets forth certain information with respect to
transactions by the Funds, at the direction of the Reporting Persons, in Common
Stock during the past 60 days.
Schedule B hereto sets forth certain information with respect to
transactions during the past 60 days by the Funds, at the direction of the
Reporting Persons, in options to purchase Common Stock.
All of the transactions set forth on Schedule A and Schedule B were
effected in open market transactions. Except as set forth above and on Schedule
A and Schedule B, during the last 60 days there were no transactions in the
Common Stock effected by the Reporting Persons nor, to the best of their
knowledge, any of their directors, executive officers, general partners or
members.
(d) Other than the Funds which directly hold the Shares, and except as set
forth in this Item 5, no person is known to have the
6
right to receive or the power to direct the receipt of dividends from, or the
proceeds from the sale of, the Shares.
(e) Not applicable.
Item 6. Contracts, Arrangements, Understandings or Relationships With Respect
to Securities of the Issuer.
Pursuant to Rule 13d-1(k) promulgated under the Exchange Act, the Reporting
Persons have entered into an agreement with respect to the joint filing of this
statement, and any amendment or amendments hereto.
For a description of certain options to purchase Common Stock acquired by
the Reporting Persons, see Item 5 and Schedule B hereto.
Except as set forth herein, there are no contracts, arrangements,
understandings or relationships among the persons named in Item 2 or between
such persons and any other person with respect to any securities of the Company.
Item 7. Material to be Filed as Exhibits.
99.1. Joint Filing Agreement, dated as of November 20, 2006, by and between
the Reporting Persons.
7
SIGNATURES
After reasonable inquiry and to the best of our knowledge and belief, the
undersigned certify that the information set forth in this statement is true,
complete and correct.
Dated: November 20, 2006
THIRD POINT LLC
By: /s/ Daniel S. Loeb
------------------------------------------
Name: Daniel S. Loeb
Title: Chief Executive Officer
/s/ Daniel S. Loeb
----------------------------------------------
Daniel S. Loeb
[SIGNATURE PAGE TO SCHEDULE 13D WITH RESPECT TO
POGO PRODUCING COMPANY]
Schedule A
Transactions by the Funds in Common Stock
during the past 60 days)
Date Transaction Shares Price Per Share($)
---- ----------- ------ ------------------
------------------------ ---------------------------- --------------------------------- -----------------------------------
11/16/06 BUY 150,000 47.601
------------------------ ---------------------------- --------------------------------- -----------------------------------
11/16/06 BUY 50,000 47.825
------------------------ ---------------------------- --------------------------------- -----------------------------------
11/16/06 BUY 150,000 47.911
------------------------ ---------------------------- --------------------------------- -----------------------------------
11/15/06 BUY 15,000 47.894
------------------------ ---------------------------- --------------------------------- -----------------------------------
11/15/06 BUY 225,000 47.866
------------------------ ---------------------------- --------------------------------- -----------------------------------
11/15/06 BUY 130,000 47.930
------------------------ ---------------------------- --------------------------------- -----------------------------------
11/14/06 BUY 50,000 46.973
------------------------ ---------------------------- --------------------------------- -----------------------------------
11/10/06 BUY 130,000 47.478
------------------------ ---------------------------- --------------------------------- -----------------------------------
11/9/06 BUY 50,000 48.301
------------------------ ---------------------------- --------------------------------- -----------------------------------
11/9/06 BUY 75,000 48.232
------------------------ ---------------------------- --------------------------------- -----------------------------------
11/9/06 BUY 75,000 48.081
------------------------ ---------------------------- --------------------------------- -----------------------------------
11/3/06 BUY 50,000 45.707
------------------------ ---------------------------- --------------------------------- -----------------------------------
11/3/06 BUY 50,000 45.708
------------------------ ---------------------------- --------------------------------- -----------------------------------
11/2/06 BUY 225,000 44.647
------------------------ ---------------------------- --------------------------------- -----------------------------------
11/1/06 BUY 330,000 44.755
------------------------ ---------------------------- --------------------------------- -----------------------------------
11/1/06 BUY 170,000 44.758
------------------------ ---------------------------- --------------------------------- -----------------------------------
10/31/06 BUY 100,000 44.553
------------------------ ---------------------------- --------------------------------- -----------------------------------
10/31/06 BUY 8,100 44.750
------------------------ ---------------------------- --------------------------------- -----------------------------------
10/31/06 SELL (8,100) 44.750
------------------------ ---------------------------- --------------------------------- -----------------------------------
10/30/06 BUY 75,000 44.449
------------------------ ---------------------------- --------------------------------- -----------------------------------
10/30/06 BUY 250,000 44.422
------------------------ ---------------------------- --------------------------------- -----------------------------------
10/27/06 BUY 175,000 44.961
------------------------ ---------------------------- --------------------------------- -----------------------------------
10/26/06 BUY 150,000 44.985
------------------------ ---------------------------- --------------------------------- -----------------------------------
10/26/06 BUY 15,000 45.024
------------------------ ---------------------------- --------------------------------- -----------------------------------
10/26/06 BUY 5,000 44.939
------------------------ ---------------------------- --------------------------------- -----------------------------------
10/25/06 BUY 35,000 45.066
------------------------ ---------------------------- --------------------------------- -----------------------------------
10/24/06 BUY 70,000 46.296
------------------------ ---------------------------- --------------------------------- -----------------------------------
10/20/06 BUY 50,000 46.600
------------------------ ---------------------------- --------------------------------- -----------------------------------
10/19/06 BUY 150,000 46.730
------------------------ ---------------------------- --------------------------------- -----------------------------------
10/18/06 SELL (150,000) 45.954
------------------------ ---------------------------- --------------------------------- -----------------------------------
10/12/06 BUY 125,000 44.557
------------------------ ---------------------------- --------------------------------- -----------------------------------
10/11/06 BUY 225,000 43.938
------------------------ ---------------------------- --------------------------------- -----------------------------------
10/10/06 BUY 200,000 43.852
------------------------ ---------------------------- --------------------------------- -----------------------------------
10/9/06 BUY 60,000 43.627
------------------------ ---------------------------- --------------------------------- -----------------------------------
10/9/06 BUY 265,000 43.553
------------------------ ---------------------------- --------------------------------- -----------------------------------
10/9/06 BUY 75,000 43.592
------------------------ ---------------------------- --------------------------------- -----------------------------------
10/6/06 BUY 50,000 42.315
------------------------ ---------------------------- --------------------------------- -----------------------------------
10/6/06 BUY 150,000 42.208
------------------------ ---------------------------- --------------------------------- -----------------------------------
Schedule B
(Transactions by the Funds during the past 60
days in options to purchase Common Stock,
each with a strike price of $45.00 per
share)
Option Price
Date Transaction Shares Acquirable Upon Exercise Per Share($)
---- ----------- ------------------------------- ------------
------------------------ ---------------------------- --------------------------------- -----------------------------------
11/20/06 BUY 18,200 3.700
------------------------ ---------------------------- --------------------------------- -----------------------------------
11/20/06 BUY 2,500 3.600
------------------------ ---------------------------- --------------------------------- -----------------------------------
11/20/06 BUY 45,200 3.500
------------------------ ---------------------------- --------------------------------- -----------------------------------
11/17/06 BUY 7,500 3.500
------------------------ ---------------------------- --------------------------------- -----------------------------------
11/17/06 BUY 26,600 3.453
------------------------ ---------------------------- --------------------------------- -----------------------------------
11/17/06 BUY 36,100 3.400
------------------------ ---------------------------- --------------------------------- -----------------------------------
11/17/06 BUY 13,900 3.300
------------------------ ---------------------------- --------------------------------- -----------------------------------
11/17/06 BUY 50,000 3.273
------------------------ ---------------------------- --------------------------------- -----------------------------------