<PAGE>
<PAGE 1>
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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1995
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________ to __________
Commission file number 1-4874
COLORADO INTERSTATE GAS COMPANY
(Exact name of registrant as specified in its charter)
Delaware 84-0173305
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
Two North Nevada Avenue
Colorado Springs, Colorado 80903-1727
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (719) 473-2300
--------------------
Indicate by check mark whether the Registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months, and (2) has been
subject to such filing requirements for the past 90 days. Yes __X__ No_____
As of July 31, 1995, there were outstanding 10 shares of common
stock of the Registrant, $5.00 par value per share, its only class of common
stock. None of the voting stock of the Registrant is held by non-affiliates.
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<PAGE>
<PAGE 2>
PART I
FINANCIAL INFORMATION
Item 1. Financial Statements.
The financial statements of Colorado Interstate Gas Company and its
subsidiaries (the "Company" or "Colorado") are presented herein and are
unaudited, except for balances as of December 31, 1994, and therefore are
subject to year-end adjustments; however, all adjustments which are, in the
opinion of management, necessary for a fair statement of the results of
operations for the periods covered have been made. The adjustments which
have been made are of a normal recurring nature. Such results are not
necessarily indicative of results to be expected for the year due to
seasonal variations and market conditions affecting natural gas sales and
transportation services.
COLORADO INTERSTATE GAS COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Thousands of Dollars)
<TABLE>
<CAPTION>
June 30, December 31,
ASSETS 1995 1994
--------------- --------------
(Unaudited)
<S> <C> <C>
Plant, Property and Equipment, at cost:
Gas pipeline . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,033,824 $ 1,016,188
Gas and oil properties, at full-cost . . . . . . . . . . . . . . . . 145,735 144,442
--------------- --------------
1,179,559 1,160,630
Accumulated depreciation, depletion and amortization . . . . . . . . 651,984 635,300
--------------- --------------
527,575 525,330
--------------- --------------
Current Assets:
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 652 372
Receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,711 118,353
Receivables from affiliates . . . . . . . . . . . . . . . . . . . . 226,255 246,609
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,128 9,154
Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . . . . 520 628
Current portion of deferred income taxes . . . . . . . . . . . . . . 41,846 43,760
--------------- --------------
311,112 418,876
--------------- --------------
Other Assets:
Other deferred charges . . . . . . . . . . . . . . . . . . . . . . . 18,569 17,905
--------------- --------------
$ 857,256 $ 962,111
--------------- --------------
--------------- --------------
</TABLE>
See Notes to Consolidated Financial Statements.
- 1 -
<PAGE>
<PAGE 3>
COLORADO INTERSTATE GAS COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Thousands of Dollars)
<TABLE>
<CAPTION>
June 30, December 31,
STOCKHOLDERS' EQUITY AND LIABILITIES 1995 1994
-------------- --------------
(Unaudited)
<S> <C> <C>
Common Stock and Other Stockholders' Equity:
Common stock, $5 par value, authorized 10,000 shares; issued and
outstanding 10 shares at stated value . . . . . . . . . . . . . . $ 27,561 $ 27,561
Additional paid-in capital . . . . . . . . . . . . . . . . . . . . . 19,035 19,035
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . 388,192 364,827
------------ ------------
434,788 411,423
------------ ------------
Mandatory Redemption Preferred Stock, $100 par value, authorized
550,000 shares, outstanding 5,560 shares:
5.50% Series . . . . . . . . . . . . . . . . . . . . . . . . . . 556 556
------------ ------------
Debt:
Long-Term Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . 179,262 179,225
------------ ------------
Current Liabilities:
Accounts payable and accrued expenses . . . . . . . . . . . . . . . 141,361 248,287
Accounts payable to affiliates . . . . . . . . . . . . . . . . . . . 7,799 14,389
Taxes on income . . . . . . . . . . . . . . . . . . . . . . . . . . 2,464 19,013
------------ ------------
151,624 281,689
------------ ------------
Deferred Credits:
Deferred income taxes . . . . . . . . . . . . . . . . . . . . . . . 86,368 84,576
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,658 4,642
------------ ------------
91,026 89,218
------------ ------------
$ 857,256 $ 962,111
------------ ------------
------------ ------------
</TABLE>
See Notes to Consolidated Financial Statements.
- 2 -
<PAGE>
<PAGE 4>
COLORADO INTERSTATE GAS COMPANY AND SUBSIDIARIES
STATEMENT OF CONSOLIDATED EARNINGS
(Thousands of Dollars)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
--------------------- ---------------------
1995 1994 1995 1994
--------- --------- --------- ---------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Revenues:
Operating revenues:
Nonaffiliates . . . . . . . . . . . . . . . . . . . .
$ 76,547 $ 69,465 $ 164,665 $ 162,565
Affiliates . . . . . . . . . . . . . . . . . . . . .
12,824 25,101 27,901 41,836
--------- --------- --------- ---------
89,371 94,566 192,566 204,401
Other income - net . . . . . . . . . . . . . . . . . . .
3,470 2,172 7,102 3,448
--------- --------- --------- ---------
92,841 96,738 199,668 207,849
--------- --------- --------- ---------
Costs and Expenses:
Cost of gas sold:
Nonaffiliates . . . . . . . . . . . . . . . . . . . .
8,460 13,202 18,393 28,487
Affiliates . . . . . . . . . . . . . . . . . . . . .
1,116 1,473 2,158 1,895
--------- --------- --------- ---------
9,576 14,675 20,551 30,382
Operation and maintenance . . . . . . . . . . . . . . .
43,087 38,467 81,814 83,099
Depreciation, depletion and amortization . . . . . . . .
9,976 9,683 19,090 20,519
Interest expense . . . . . . . . . . . . . . . . . . . .
4,873 4,751 9,296 9,421
Taxes on income . . . . . . . . . . . . . . . . . . . .
8,609 9,508 23,936 21,329
--------- --------- --------- ---------
76,121 77,084 154,687 164,750
--------- --------- --------- ---------
Net Earnings . . . . . . . . . . . . . . . . . . . . . . .
$ 16,720 $ 19,654 $ 44,981 $ 43,099
--------- --------- --------- ---------
--------- --------- --------- ---------
</TABLE>
See Notes to Consolidated Financial Statements.
- 3 -
<PAGE>
<PAGE 5>
COLORADO INTERSTATE GAS COMPANY AND SUBSIDIARIES
STATEMENT OF CONSOLIDATED CASH FLOWS
(Thousands of Dollars)
<TABLE>
<CAPTION>
Six Months Ended
June 30,
--------------------------
1995 1994
---------- ----------
(Unaudited)
<S> <C> <C>
Net Cash Flow From Operating Activities:
Net earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 44,981 $ 43,099
Add (subtract) items not requiring (providing) cash:
Depreciation, depletion and amortization . . . . . . . . . . . . . . . 19,090 20,519
Deferred income taxes . . . . . . . . . . . . . . . . . . . . . . . . . 3,526 (4,028)
Producer contract reformation cost recoveries . . . . . . . . . . . . . 72 2,969
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 970 2,867
Working capital and other changes, excluding changes relating to cash
and non-operating activities:
Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . 85,642 76,749
Receivables from affiliates . . . . . . . . . . . . . . . . . . . . . 12,811 11,093
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 121
Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . . . . 108 7,603
Accounts payable and accrued expenses . . . . . . . . . . . . . . . . (106,926) (30,005)
Accounts payable to affiliates . . . . . . . . . . . . . . . . . . . (6,590) (18,280)
Taxes on income . . . . . . . . . . . . . . . . . . . . . . . . . . . (16,549) 10,499
---------- ----------
37,161 123,206
---------- ----------
Cash Flow from Investing Activities:
Purchases of plant, property and equipment . . . . . . . . . . . . . . . . (21,503) (23,410)
Proceeds from sale of plant, property and equipment . . . . . . . . . . . 114 1,023
Investments - other . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,518) 1,229
Net (increase) decrease in notes receivable from associated companies . . 7,543 (86,004)
Gas supply prepayments and settlements . . . . . . . . . . . . . . . . . . (12) (15)
Recovery of gas supply prepayments . . . . . . . . . . . . . . . . . . . . 110 150
---------- ----------
(15,266) (107,027)
---------- ----------
Cash Flow from Financing Activities:
Preferred dividends paid . . . . . . . . . . . . . . . . . . . . . . . . . (15) (10)
Common dividends paid . . . . . . . . . . . . . . . . . . . . . . . . . . (21,600) (16,400)
---------- ----------
(21,615) (16,410)
---------- ----------
Net Increase (Decrease) in Cash . . . . . . . . . . . . . . . . . . . . . . . 280 (231)
Cash at Beginning of Period . . . . . . . . . . . . . . . . . . . . . . . . . 372 704
---------- ----------
Cash at End of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 652 $ 473
---------- ----------
---------- ----------
</TABLE>
See Notes to Consolidated Financial Statements.
- 4 -
<PAGE>
<PAGE 6>
COLORADO INTERSTATE GAS COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Summary of Significant Accounting Policies
For additional information relative to operations and financial
position, reference is made to the Company's Annual Report on Form 10-K for
the fiscal year ended December 31, 1994. Certain minor reclassifications of
prior period statements have been made to conform with current reporting
practices. The effect of the reclassifications was not material to the
Company's consolidated financial position or results of operations.
Supplemental information relative to the Statement of Consolidated Cash
Flows includes the following: The Company made cash payments for interest
and financing fees, net of amounts capitalized, of $10.4 million and $8.9
million for the six months ended June 30, 1995 and 1994, respectively. Cash
payments for income taxes amounted to $30.1 million and $13.9 million for
the six months ended June 30, 1995 and 1994, respectively.
Materials and supplies inventories are carried principally at average
cost. Gas stored underground is carried at last-in, first-out cost ("LIFO").
The excess of replacement cost over the carrying value of gas in underground
storage carried by the LIFO method, which is classified as Plant, Property
and Equipment, was $13.5 million and $31.2 million at June 30, 1995 and
December 31, 1994, respectively.
2. Income Taxes
<TABLE>
Provisions for income taxes are composed of the following (thousands of
dollars):
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
--------------------- ---------------------
1995 1994 1995 1994
--------- --------- --------- ---------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Current Income Taxes:
Federal . . . . . . . . . . . . . . . . . . . . . . .
$ 6,109 $ 13,108 $ 18,676 $ 22,716
State . . . . . . . . . . . . . . . . . . . . . . . .
195 1,461 1,734 2,641
--------- --------- --------- ---------
6,304 14,569 20,410 25,357
--------- --------- --------- ---------
Deferred Income Taxes
Federal . . . . . . . . . . . . . . . . . . . . . . .
2,038 (4,589) 3,072 (3,800)
State . . . . . . . . . . . . . . . . . . . . . . . .
267 (472) 454 (228)
--------- --------- --------- ---------
2,305 (5,061) 3,526 (4,028)
--------- --------- --------- ---------
Taxes on Income . . . . . . . . . . . . . . . . . . . .
$ 8,609 $ 9,508 $ 23,936 $ 21,329
--------- --------- --------- ---------
--------- --------- --------- ---------
</TABLE>
- 5 -
<PAGE>
<PAGE 7>
Interim period provisions for income taxes are based on estimated
effective annual income tax rates.
3. Common Stock
All of the issued and outstanding common stock of the Company is owned
by Coastal Natural Gas Company, a wholly-owned subsidiary of The Coastal
Corporation. Therefore, earnings and cash dividends per common share have no
significance and are not presented.
4. Litigation, Environmental and Regulatory Matters
Litigation Matters
In December 1992, certain of Colorado's natural gas lessors in the West
Panhandle Field filed a complaint in the U.S. District Court for the
Northern District of Texas claiming underpayment, breach of fiduciary duty,
fraud and negligent misrepresentation. Management believes that Colorado has
numerous defenses to the lessors' claims, including (i) that the royalties
were properly paid, (ii) that the majority of the claims were released by
written agreement, and (iii) that the majority of the claims are barred by
the statute of limitations. In March of 1995, the Trial Court granted a
partial summary judgment in favor of Colorado, holding that the four-year
statute of limitations had not been tolled, that the releases are valid, and
dismissing all tort claims and claims for breach of any duty of disclosure.
The remaining claim for underpayment of royalties was tried to a jury which,
in May 1995, made findings favorable to Colorado. On June 7, 1995, the Trial
Court entered a judgment that the lessors recover no monetary damages from
Colorado and permanently estopping the lessors from asserting any claim
based on an interpretation of the contract different than that asserted by
Colorado in the litigation. The lessors' motion for a new trial is pending.
Other lawsuits and other proceedings which have arisen in the ordinary
course of business are pending or threatened against the Company or its
subsidiaries.
Although no assurances can be given and no determination can be made at
this time as to the outcome of any particular lawsuit or proceeding, the
Company believes there are meritorious defenses to substantially all of the
above claims and that any liability which may finally be determined should
not have a material adverse effect on the Company's consolidated financial
position or results of operations.
Environmental Matters
The Company's operations are subject to extensive and evolving federal,
state and local environmental laws and regulations which may affect such
operations and costs as a result of their effect on the construction,
operation, and maintenance of its pipeline facilities. The Company
anticipates annual capital expenditures of $1 to $2 million over the next
several years aimed at maintaining compliance with such laws and
regulations. Additionally, appropriate governmental authorities may enforce
the laws and regulations with a variety of civil and criminal enforcement
measures, including monetary penalties and remediation requirements.
The Comprehensive Environmental Response, Compensation and Liability
Act, also known as "Superfund", as reauthorized, imposes liability, without
regard to fault or the legality of the original act, for disposal of a
"hazardous substance." The Company is not presently, and has not been in the
past, a potentially responsible party ("PRP") in any "Superfund" waste
disposal sites. However, the Company has received notice from a committee
- 6 -
<PAGE>
<PAGE 8>
formed from a group of 55 companies who are named as PRPs at one site
requesting the Company pay a de minimis share (approximately $36,000) of the
associated clean-up costs.
There are additional areas of environmental remediation
responsibilities which may fall upon the Company. The states have regulatory
programs that mandate waste clean-up. The Clean Air Act Amendments of 1990
include new permitting regulations which will result in increased operating
expenditures.
Future information and developments will require the Company to
continually reassess the expected impact of all applicable environmental
laws and regulations. Compliance with all applicable environmental
protection laws and regulations is not expected to have a material adverse
impact on the Company's liquidity, consolidated financial position or
results of operations.
Regulatory Matters
On March 31, 1993, Colorado filed with the Federal Energy Regulatory
Commission ("FERC") under Docket RP93-99 to increase its rates and such
filing became effective subject to refund on October 1, 1993. On November
10, 1994, the FERC approved a settlement offer submitted by the Company
which resolved all of the issues in the proceeding. The Company has
implemented the rates established in the settlement for prospective
application and was required to make refunds as a result of the approval of
the settlement. Such refunds were distributed in March and April 1995 and
totalled approximately $22 million, inclusive of interest. The Company had
fully accrued for these refunds and, therefore, such refunds did not have an
adverse effect on its consolidated financial position or results of
operations.
Certain regulatory issues remain unresolved between the Company, its
customers, its suppliers, and the FERC. The Company has made provisions
which represent management's assessment of the ultimate resolution of these
issues. While the Company estimates the provisions to be adequate to cover
potential adverse rulings on these issues, it cannot estimate when each of
these issues will be resolved.
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations.
The Notes to Consolidated Financial Statements contain information that
is pertinent to the following analysis.
Liquidity and Capital Resources
<TABLE>
The Company uses the following consolidated ratios to measure liquidity
and its ability to meet future funding needs and debt service requirements.
<CAPTION>
Twelve Months Ended
-------------------------------
June 30, December 31,
1995 1994
--------------- -------------
(Unaudited)
<S> <C> <C>
Cash flow from operating activities to capital expenditures
and debt service requirements . . . . . . . . . . . . . . . . . . . 217.8% 374.5%
Debt to total capitalization . . . . . . . . . . . . . . . . . . . . 29.2% 30.3%
Times interest earned (before tax) . . . . . . . . . . . . . . . . . 7.7 7.4
</TABLE>
- 7 -
<PAGE>
<PAGE 9>
The decrease in the cash flow from operating activities to capital
expenditures and debt service requirements ratio is due mainly to working
capital changes as a result of decreased accounts payable and accrued
expenses. The decrease in the debt to total capitalization ratio is due to
increased retained earnings resulting from first half 1995 earnings. The
increase in the times interest earned ratio can be attributed to increased
earnings before tax and reduced interest expense.
The Company's primary needs for cash are capital expenditures and debt
service requirements. Management believes that the Company's stable
financial position and earnings ability will enable it to continue to
generate and obtain capital for financing needs in the foreseeable future.
The Company is responding to the extensive changes in the natural gas
industry by continuing to take steps to operate its facilities at their
maximum efficient capacity, renegotiating the remaining gas purchase
contracts which are above market in an effort to lower its cost of gas and
reduce take-or-pay obligations, pursuing innovative marketing strategies and
applying strict cost-cutting measures.
Results of Operations
The change in the Company's earnings for the three and six month
periods ended June 30, 1995, in comparison to the corresponding periods in
1994, is a result of the following:
<TABLE>
Operating Revenues. The operating revenues by segment were as follows
(thousands of dollars):
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
--------------------- ---------------------
1995 1994 1995 1994
--------- --------- --------- ---------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Natural gas . . . . . . . . . . . . . . . . . . . . . .
$ 87,714 $ 91,336 $ 189,847 $ 196,890
Exploration and production . . . . . . . . . . . . . . .
3,456 4,775 6,362 11,717
Eliminations . . . . . . . . . . . . . . . . . . . . . .
(1,799) (1,545) (3,643) (4,206)
--------- --------- --------- ---------
$ 89,371 $ 94,566 $ 192,566 $ 204,401
--------- --------- --------- ---------
--------- --------- --------- ---------
</TABLE>
Operating revenues from natural gas operations for the three month
period ended June 30, 1995, decreased from the comparable 1994 period due to
a decrease in the average gas sales prices and reduced gas sales volumes
partially offset by increased transportation revenues. Operating revenues
for the six month period ending June 30, 1995 decreased from the comparable
1994 period due to a decrease in the average gas sales price and reduced gas
sales volumes as well as decreased average transportation rates and reduced
gathering volume, partially offset by decreased reservations.
- 8 -
<PAGE>
<PAGE 10>
The decrease in exploration and production revenues for the three month
period ended June 30, 1995 is due primarily to decreased natural gas volumes
and average prices partially offset by higher liquids prices. The decrease
in exploration and production revenue for the six month period ended June
30, 1995 is due primarily to reduced natural gas volumes and lower gas
prices.
Other Income - Net. The increases for both the three and six month
periods ended June 30, 1995 are due to increased interest income from
affiliates.
Cost of Gas Sold. The decrease in the three month period ended June
30, 1995 from the comparable 1994 period is due to decreased gas storage
withdrawals and reduced average gas purchase rates partially offset by
increased gas purchase volumes and increased transportation, gathering and
exchange gas costs-net. The decrease in the six month period ended June 30,
1995 is due primarily to decreased average gas purchase rates and an
increase in net storage injection partially offset by increased gas purchase
volumes and reduced gas used in operations.
Operation and Maintenance. The increase for the three month period
ended June 30, 1995 as compared to the 1994 period is due to increased
franchise and property taxes as well as increased professional and outside
services. The decrease for the six month period ending June 30, 1995 is due
to reduced gas used in operations partially offset by increased professional
and outside services and increased franchise and property taxes.
Depreciation, Depletion and Amortization. The slight increase for the
three month period ended June 30, 1995 as compared to the 1994 period is due
to increased depreciable plant in the natural gas segment partially offset
by lower production volumes in the exploration and production segment. The
decrease for the six month period ending June 30, 1995 is due to lower
production volumes in the exploration and production segment partially
offset by increased depreciable plant in the natural gas segment.
<TABLE>
Operating Profit (Loss). The operating profit (loss) by segment was as
follows (thousands of dollars):
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
--------------------- ---------------------
1995 1994 1995 1994
--------- --------- --------- ---------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Natural gas . . . . . . . . . . . . . . . . . . . . . .
$ 29,164 $ 32,786 $ 75,496 $ 71,295
Exploration and production . . . . . . . . . . . . . . .
(1,168) 131 (2,101) 1,294
--------- --------- --------- ---------
$ 27,996 $ 32,917 $ 73,395 $ 72,589
--------- --------- --------- ---------
--------- --------- --------- ---------
</TABLE>
The natural gas segment's operating profit for the three month period
ended June 30, 1995 decreased by $3.6 million from the comparable 1994
period as decreases in the average gas sales price and reduced gas sales
volumes and increased operation and maintenance expenses and depreciation,
depletion and amortization more than offset increased gas transportation
- 9 -
<PAGE>
<PAGE 11>
revenues and a reduction in the cost of gas sold. The increase of $4.2
million for the six month period ended June 30, 1995 over the same period in
1994 is primarily a result of decreased reservations, reduced cost of gas
sold and decreased operation and maintenance expenses partially offset by
decreases in the average gas sales price and average transportation rates
and reduced sales and gathering volumes.
The operating profit for the exploration and production segment
decreased by $1.3 million for the three month period ended June 30, 1995,
compared with 1994 as a result of decreased natural gas volumes and gas
prices more than offsetting higher liquids prices and lower depreciation,
depletion and amortization expense. The operating profit for the six month
period ended June 30, 1995 decreased from the comparable 1994 period by $3.4
million as a result of reduced natural gas volumes and lower gas prices
exceeding the reduction in depreciation, depletion and amortization expense.
Taxes on Income. The decrease in the three month period ended June 30,
1995 from the comparable 1994 period is due primarily to reduced earnings
before taxes. The increase for the six month period ended June 30, 1995 is
due primarily to increased earnings before taxes.
Environmental Matters
The Company's operations are subject to extensive and evolving federal,
state and local environmental laws and regulations which may affect such
operations and costs as a result of their effect on the construction,
operation and maintenance of its pipeline facilities. The Company
anticipates annual capital expenditures of $1 to $2 million over the next
several years aimed at maintaining compliance with such laws and
regulations. Additionally, appropriate governmental authorities may enforce
the laws and regulations with a variety of civil and criminal enforcement
measures, including monetary penalties and remediation requirements.
The Comprehensive Environmental Response, Compensation and Liability
Act, also known as "Superfund," as reauthorized, imposes liability, without
regard to fault or the legality of the original act, for disposal of a
"hazardous substance." The Company is not presently, and has not been in the
past, a potentially responsible party ("PRP") in any "Superfund" waste
disposal sites. However, the Company has received notice from a committee
formed from a group of 55 companies who are named as PRPs at one site
requesting the Company pay a de minimis share (approximately $36,000) of the
associated clean-up costs.
There are additional areas of environmental remediation
responsibilities which may fall upon the Company. The states have regulated
programs that mandate waste clean-up. The Clean Air Act Amendments of 1990
include new permitting regulations which will result in increased operating
expenditures.
Future information and developments will require the Company to
continually reassess the expected impact of all applicable environmental
laws and regulations. Compliance with all applicable environmental
protection laws and regulations is not expected to have a material adverse
impact on the Company's liquidity, consolidated financial position or
results of operations.
- 10 -
<PAGE>
<PAGE 12>
PART II
OTHER INFORMATION
Item 1. Legal Proceedings.
The information required hereunder is incorporated by reference
into Part II of this Report from Note 4 of the Notes to Consolidated
Financial Statements set forth in Part I of this Report and from Item 2.,
"Management's Discussion and Analysis of Financial Condition and Results of
Operations - Environmental Matters," set forth in Part I of this Report.
Item 2. Changes in Securities.
None.
Item 3. Defaults Upon Senior Securities.
None.
Item 4. Submission of Matters to a Vote of Security Holders.
None.
Item 5. Other Information.
None.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits.
(27) Financial Data Schedule.
(b) Reports on Form 8-K.
No reports on Form 8-K were filed during the quarter ended
June 30, 1995.
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 thereunto duly authorized.
COLORADO INTERSTATE GAS COMPANY
(Registrant)
Date: August 11, 1995 By: DAN A. HOMEC
-------------------------
Dan A. Homec
Assistant Vice President
and Controller
(As Authorized Officer and
Chief Accounting Officer)
- 11 -
<PAGE>
<PAGE 13>
INDEX TO EXHIBITS
<TABLE>
<CAPTION>
Exhibit
Number Description
- ------------------------------------------------------------------------------------------------------------
<S> <C>
27 Financial Data Schedule
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM COLORADO
INTERSTATE GAS COMPANY FORM 10-Q QUARTERLY REPORT FOR THE PERIOD ENDED JUNE 30,
1995 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<CASH> 652
<SECURITIES> 0
<RECEIVABLES> 258,966
<ALLOWANCES> 0
<INVENTORY> 9,128
<CURRENT-ASSETS> 311,112
<PP&E> 1,179,559
<DEPRECIATION> 651,984
<TOTAL-ASSETS> 857,256
<CURRENT-LIABILITIES> 151,624
<BONDS> 179,262
<COMMON> 27,561
556
0
<OTHER-SE> 407,227
<TOTAL-LIABILITY-AND-EQUITY> 857,256
<SALES> 192,566
<TOTAL-REVENUES> 199,668
<CGS> 20,551
<TOTAL-COSTS> 121,455
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 9,296
<INCOME-PRETAX> 68,917
<INCOME-TAX> 23,936
<INCOME-CONTINUING> 44,981
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 44,981
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
