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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM U-3A-2
FILE NO. 0-29604
STATEMENT BY HOLDING COMPANY CLAIMING EXEMPTION UNDER RULE U-3A-2
FROM THE PROVISIONS OF THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935
To Be Filed Annually Prior to March 1
ENERGYSOUTH, INC.
(Name of Company)
hereby files with the Securities and Exchange Commission (the Commission),
pursuant to Rule 2, its statement claiming exemption as a holding company from
the provisions of the Public Utility Holding Company Act of 1935 (the "Act"),
and submits the following information:
1. The Claimant ENERGYSOUTH, INC., an Alabama corporation, is a holding
company which directly or indirectly holds interests in the following
subsidiaries, each of which is also organized under the laws of the
State of Alabama:
a. Mobile Gas Service Corporation ("Mobile Gas"), a
natural gas distribution company;
b. MGS Storage Services, Inc., which owns an 87 1/2%
general partnership interest in Bay Gas Storage
Company, Ltd.;
c. Bay Gas Storage Company, Ltd. ("Bay Gas"), a limited
partnership engaged in the business of underground
natural gas storage;
d. MGS Energy Services, Inc., which is engaged in the
business of providing contract and consulting work
for utilities and industrial customers and which owns
a 51% interest in Southern Gas Transmission Company;
e. Southern Gas Transmission Company ("SGT"), a general
partnership which operates a gas pipeline; and
f. MGS Marketing Services, Inc., which was incorporated
to assist existing and potential customers of Mobile
Gas in the purchase of natural gas.
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The business address of the Claimant and each of its subsidiaries is:
2828 Dauphin Street
Mobile, Alabama 36606
2. Mobile Gas is a "gas utility company" under the provisions of Section
2(a)(4) of the Act and is regulated by the Alabama Public Service
Commission. The properties of Mobile Gas consist primarily of natural
gas distribution systems, including mains, services, meters and
regulating equipment, serving communities in southwest Alabama,
including the City of Mobile and adjacent areas, all of which is
located in Mobile County, Alabama. Mobile Gas owns office buildings
and other miscellaneous equipment and property, all of which is
located in Mobile County, Alabama.
The properties of Bay Gas consist of an underground gas storage cavern
located in McIntosh, Alabama and related compression, dehydration and
pipeline facilities, all located primarily in Washington County,
Alabama.
The properties of SGT consist of a 50-mile natural gas pipeline from
Claiborne, Alabama to near Flomaton, Alabama, all located primarily in
Monroe County, Alabama.
Neither Claimant nor any of its subsidiaries other than Mobile Gas is
a "gas utility company" under the provisions of Section 2(a)(4) of the
Act.
3. The following is information for the last calendar year with respect
to Claimant and its subsidiary public utility company, Mobile Gas:
a. Mcf of natural or manufactured gas distributed at retail:
33,324,781 Mcf
b. Mcf of natural or manufactured gas distributed at retail
outside the State in which each such company is organized:
None
c. Mcf of natural or manufactured gas sold at wholesale outside
the State in which such company is organized or at the State
line: None
d. Mcf of natural or manufactured gas purchased outside the State
in which each such company is organized or at the State line:
2,958,070 Mcf
4. The Claimant does not hold directly or indirectly any interest in an
EWG or a foreign utility company.
EXHIBIT A. A consolidating statement of income and retained earnings of the
Claimant and its subsidiary companies for the calendar year ended December 31,
1997, together with a consolidating balance sheet of Claimant and its
subsidiary companies as of the close of such calendar year is attached hereto
as Exhibit A and made a part hereof. (1)
2
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EXHIBIT B. A Financial Data Schedule is attached hereto as Exhibit B,
including the financial and other data required to be set forth therein
pursuant to the requirements of this Exhibit B to Form U-3A-2. (1)
EXHIBIT C. Not Applicable.
(1) The reorganization by which Claimant became the holding company of
Mobile Gas became effective on February 2, 1998. Accordingly, the
financial statements presented are based on the financial statements
of Mobile Gas for the calendar year ended December 31, 1997, the most
recent date for which such information is available.
The above-named Claimant has caused this statement to be duly executed on its
behalf by its authorized officer on this 27th day of February, 1998
ENERGYSOUTH, INC.
(Name of Claimant)
By /s/ Charles P. Huffman
-----------------------------------
Charles P. Huffman
Its Chief Financial Officer and Treasurer
CORPORATE SEAL
ATTEST:
By /s/ G. Edgar Downing, Jr.
-----------------------------------
G. Edgar Downing, Jr.
Its Secretary
Name, title and address of officer to whom notices and correspondence concerning
this statement should be addressed:
Charles P. Huffman
Chief Financial Officer and Treasurer
2828 Dauphin Street
Mobile, Alabama 36606
3
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ENERGYSOUTH, INC.
CONSOLIDATING BALANCE SHEET
AT DECEMBER 31, 1997
(UNAUDITED)
(DOLLARS IN THOUSANDS)
EXHIBIT A
<TABLE>
<CAPTION>
ENERGY- MOBILE MGS SOUTHERN GAS MGS BAY GAS MGS CONSOLIDATED
ACCOUNT DESCRIPTION SOUTH GAS ENERGY TRANSMISSION STORAGE STORAGE MARKETING TOTAL ELIMINATION TOTAL
---------------------------------------------------------------------------------------------------------
Assets
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Property, Plant & Equipment $ - $ 124,647 $ - $ 3,465 $ - $ 38,040 $ - $ 166,152 $ - $ 166,152
Less Accumulated Depreciation
and Amortization 38,289 504 2,840 41,633 41,633
----------------------------------------------------------------------------------------------------
Property, Plant & Equipment
- Net - 86,358 - 2,961 - 35,200 - 124,519 - 124,519
Construction Work in Progress 1,237 1,237 1,237
----------------------------------------------------------------------------------------------------
Total Property, Plant
& Equipment - 87,595 - 2,961 - 35,200 - 125,756 - 125,756
----------------------------------------------------------------------------------------------------
Current Assets:
Cash and Cash Equivalents 83 118 6 20 1,848 15 2,090 2,090
Receivables:
Gas 7,492 134 184 42 7,852 7,852
Merchandise 3,029 3,029 3,029
Other 3,569 35 383 3,987 (3,380) 607
Less Allowance for
Doubtful Accounts (606) (606) (606)
Materials, Supplies,
and Mdse (at average cost) 1,139 1,139 1,139
Gas Stored Underground For
Current Use 1,524 1,524 1,524
Deferred Purchased
Gas Adjustment 951 951 951
Deferred Gas Costs 1,492 1,492 1,492
Deferred Income Taxes 360 360 360
Prepayments 881 447 1,328 1,328
----------------------------------------------------------------------------------------------------
Total Current Assets - 19,914 118 140 55 2,862 57 23,146 (3,380) 19,766
Investment in Mobile Gas
Service Corporation - - -
Investment in MGS Energy
Services, Inc. 1,127 1,127 (1,127) -
Investment in MGS Storage
Services, Inc. 12,122 12,122 (12,122) -
Investment in MGS Marketing
Services, Inc. 8 8 (8) -
Investment in Partnerships - 1,269 13,157 14,426 (14,426) -
Regulatory Assets 1,081 1,081 1,081
Merchandise Receivables Due
After One Year 5,156 5,156 5,156
Deferred Charges 645 137 520 1,302 1,302
----------------------------------------------------------------------------------------------------
Total Assets $ - $ 127,648 $ 1,387 $ 3,238 $ 13,212 $ 38,582 $ 57 $ 184,124 $ (31,063) $ 153,061
====================================================================================================
</TABLE>
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ENERGYSOUTH, INC.
CONSOLIDATING BALANCE SHEET
AT DECEMBER 31, 1997
(UNAUDITED)
(DOLLARS IN THOUSANDS)
EXHIBIT A
<TABLE>
<CAPTION>
ENERGY- MOBILE MGS SOUTHERN GAS MGS BAY GAS MGS CONSOLIDATED
ACCOUNT DESCRIPTION SOUTH GAS ENERGY TRANSMISSION STORAGE STORAGE MARKETING TOTAL ELIMINATION TOTAL
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Capitalization and
Liabilities
Capitalization:
Stockholders' Equity $ - $ 32 $ 1 $ - $ - $ - $ - $ 33 $ (1) $ 32
Capital in Excess of
Par Value 17,851 10,491 28,342 (10,491) 17,851
Partner's Capital 785 11,996 12,781 (12,781) -
Retained Earnings 38,399 1,126 1,704 1,631 3,040 8 45,908 (7,509) 38,399
----------------------------------------------------------------------------------------------------
Total Stockholders' Equity - 56,282 1,127 2,489 12,122 15,036 8 87,064 (30,782) 56,282
Minority Interest 3,099 3,099
Long-Term Debt (Less Current
Maturities) 42,104 53 19,896 62,053 62,053
----------------------------------------------------------------------------------------------------
Total Capitalization - 98,386 1,127 2,542 12,122 34,932 8 149,117 (27,683) 121,434
----------------------------------------------------------------------------------------------------
Current Liabilities:
Current Maturities of
Long-Term Debt 1,113 626 732 2,471 2,471
Notes Payable 2,500 - 55 - - 2,555 (55) 2,500
Accounts Payable 4,632 2 - 254 2,694 43 7,625 (3,325) 4,300
Dividends Declared 972 972 972
Customer Deposits 1,460 1,460 1,460
Taxes Accrued 3,165 190 15 (831) 74 6 2,619 2,619
Interest Accrued 1,439 138 1,577 1,577
Other Liabilities 2,234 12 2,246 2,246
----------------------------------------------------------------------------------------------------
Total Current
Liabilities - 17,515 192 696 (577) 3,650 49 21,525 (3,380) 18,145
Accrued Pension Cost 1,666 1,666 1,666
Accrued Postretirement
Benefit Cost 1,061 1,061 1,061
Deferred Income Taxes 8,582 68 1,667 10,317 10,317
Deferred Investment Tax
Credits 438 - - 438 438
----------------------------------------------------------------------------------------------------
Total Capitalization
and Liabilities $ - $ 127,648 $ 1,387 $ 3,238 $ 13,212 $ 38,582 $ 57 $ 184,124 $ (31,063) $ 153,061
====================================================================================================
</TABLE>
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ENERGYSOUTH, INC.
CONSOLIDATING INCOME STATEMENT
AND STATEMENT OF RETAINED EARNINGS
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 1997
(UNAUDITED)
(DOLLARS IN THOUSANDS)
EXHIBIT A
<TABLE>
<CAPTION>
ENERGY- MOBILE MGS SOUTHERN GAS MGS BAY GAS MGS CONSOLIDATED
ACCOUNT DESCRIPTION SOUTH GAS ENERGY TRANSMISSION STORAGE STORAGE MARKETING TOTAL ELIMINATION TOTAL
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Operating Revenues
Gas Revenues $ - $ 69,269 $ - $ 1,044 $ - $ 5,403 $ 101 $ 75,817 $ (4,147) $ 71,670
Merchandise Sales and
Jobbing 3,087 30 3,117 3,117
--------------------------------------------------------------------------------------------------
Total Operating
Revenues - 72,356 30 1,044 5,403 101 78,934 (4,147) 74,787
--------------------------------------------------------------------------------------------------
Operating Expenses
Cost of Gas 27,744 83 27,827 (4,144) 23,683
Cost of Merchandise and
Jobbing 2,278 22 2,300 2,300
Operations 17,132 30 756 6 17,924 (3) 17,921
Maintenance 1,408 16 81 1,505 1,505
Depreciation 4,848 213 963 6,024 6,024
Taxes, Other Than
Income Taxes 5,269 1 30 (7) 310 5,603 5,603
--------------------------------------------------------------------------------------------------
Total Operating Expenses - 58,679 23 289 (7) 2,110 89 61,183 (4,147) 57,036
--------------------------------------------------------------------------------------------------
Operating Income - 13,677 7 755 7 3,293 12 17,751 - 17,751
--------------------------------------------------------------------------------------------------
Other Income and (Expense)
Interest Expense (3,929) (3) (89) (35) (1,902) (5,958) 214 (5,744)
Allowance for Borrowed
Funds Used -
During Construction 151 151 151
Interest Income 1,224 3 19 55 1,301 (214) 1,087
Income From Subsidiaries/
Partnerships 1,029 669 1,446 3,144 (3,144) -
Less Minority Interest (328) - (181) - (509) - (509)
--------------------------------------------------------------------------------------------------
Total Other Income
(Expense) - (1,525) 338 (86) 1,249 (1,847) - (1,871) (3,144) (5,015)
--------------------------------------------------------------------------------------------------
Income Before Income Taxes - 12,152 345 669 1,256 1,446 12 15,880 (3,144) 12,736
--------------------------------------------------------------------------------------------------
Income Taxes - 4,076 125 - 455 - 4 4,660 - 4,660
--------------------------------------------------------------------------------------------------
Net Income $ - $ 8,076 $ 220 $ 669 $ 801 $ 1,446 $ 8 $ 11,220 $ (3,144) $ 8,076
Retained Earnings at
December 31, 1996 34,139 1,056 1,035 830 1,594 - 38,654 (4,515) 34,139
Dividends Paid/Capital
Distributions (3,816) (150) (3,966) 150 (3,816)
--------------------------------------------------------------------------------------------------
Retained Earnings at
December 31, 1997 $ - $ 38,399 $ 1,126 $ 1,704 $ 1,631 $ 3,040 $ 8 $ 45,908 $ (7,509) $ 38,399
==================================================================================================
</TABLE>
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INDEX TO EXHIBITS
EXHIBIT NO. DESCRIPTION
- ----------- -----------
27.1 -- Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> OPUR3
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> SEP-30-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> DEC-31-1997
<BOOK-VALUE> PER-BOOK
<TOTAL-ASSETS> 153,061
<TOTAL-OPERATING-REVENUES> 74,787
<NET-INCOME> 8,076
</TABLE>
