================================================================================
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, 1999
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 of (I.R.S. Employer
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
---------------------------7
Registrant meets the conditions set forth in General Instructions H(1)(a)
and (b) of Form 10-Q and is therefore filing this Report with reduced disclosure
format.
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 30, 1999, 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.
================================================================================
<PAGE>
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, 1998, 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 1999 1998
--------------- --------------
(Unaudited)
<S> <C> <C>
Current Assets:
Cash.................................................................... $ 448 $ 109
Notes receivable from affiliates........................................ 277,618 243,049
Accounts receivable..................................................... 24,766 41,309
Accounts receivable from affiliates..................................... 32,794 43,057
Materials and supplies.................................................. 8,437 8,666
Prepaid expenses........................................................ 617 820
Current portion of deferred income taxes................................ 32,160 34,653
--------------- --------------
376,840 371,663
--------------- --------------
Plant, Property and Equipment, at cost:
Gas pipeline............................................................ 1,239,644 1,227,928
Gas and oil properties, at full-cost.................................... 137,387 136,334
--------------- --------------
1,377,031 1,364,262
Accumulated depreciation, depletion and amortization.................... 727,553 711,957
--------------- --------------
649,478 652,305
--------------- --------------
Other Assets:
Investments............................................................. 36,708 48,742
Other deferred charges.................................................. 41,287 43,557
--------------- --------------
77,995 92,299
--------------- --------------
$ 1,104,313 $ 1,116,267
=============== ==============
</TABLE>
See Notes to Consolidated Financial Statements.
- 1 -
<PAGE>
COLORADO INTERSTATE GAS COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Thousands of Dollars)
<TABLE>
<CAPTION>
June 30, December 31,
LIABILITIES AND STOCKHOLDER'S EQUITY 1999 1998
--------------- --------------
(Unaudited)
<S> <C> <C>
Current Liabilities:
Notes payable to affiliates............................................. $ 2,990 $ 2,784
Accounts payable and accrued expenses................................... 103,717 123,070
Accounts payable to affiliates.......................................... 14,993 41,147
Taxes on income......................................................... 6,692 21,565
------------- ------------
128,392 188,566
------------- ------------
Debt:
Long-term debt.......................................................... 279,557 279,520
------------- ------------
Deferred Credits:
Deferred income taxes................................................... 116,024 111,679
Other................................................................... 39,049 40,031
------------- ------------
155,073 151,710
------------- ------------
Common Stock and Other Stockholder's 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.............................................. 19,037 19,037
Retained earnings....................................................... 494,693 449,873
------------- ------------
541,291 496,471
------------- ------------
$ 1,104,313 $ 1,116,267
============= ============
</TABLE>
See Notes to Consolidated Financial Statements.
- 2 -
<PAGE>
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,
---------------------- ---------------------
1999 1998 1999 1998
---------- ---------- --------- ---------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Revenues:
Operating revenues:
Nonaffiliates............................................. $ 46,716 $ 69,877 $ 116,419 $ 171,758
Affiliates................................................ 23,460 31,427 40,816 59,040
---------- ---------- --------- ---------
70,176 101,304 157,235 230,798
Other income - net........................................... 3,648 4,003 6,977 7,693
---------- ---------- --------- ---------
73,824 105,307 164,212 238,491
---------- ---------- --------- ---------
Costs and Expenses:
Cost of gas sold:
Nonaffiliates............................................. - 27,096 - 61,156
Affiliates................................................ - 3,201 - 7,346
---------- ---------- --------- ---------
- 30,297 - 68,502
Operation and maintenance.................................... 37,859 38,909 66,904 73,688
Depreciation, depletion and amortization..................... 8,027 7,105 15,698 15,866
Interest expense............................................. 6,231 6,125 12,373 12,309
Taxes on income.............................................. 7,581 7,517 24,417 23,984
---------- ---------- --------- ---------
59,698 89,953 119,392 194,349
---------- ---------- --------- ---------
Net Earnings.................................................... $ 14,126 $ 15,354 $ 44,820 $ 44,142
========== ========== ========= =========
</TABLE>
See Notes to Consolidated Financial Statements.
- 3 -
<PAGE>
COLORADO INTERSTATE GAS COMPANY AND SUBSIDIARIES
STATEMENT OF CONSOLIDATED CASH FLOWS
(Thousands of Dollars)
<TABLE>
<CAPTION>
Six Months Ended
June 30,
---------------------------
1999 1998
----------- ----------
(Unaudited)
<S> <C> <C>
Cash Flow From Operating Activities:
Net earnings .................................................................. $ 44,820 $ 44,142
Add items not requiring cash:
Depreciation, depletion and amortization.................................... 15,698 15,866
Deferred income taxes....................................................... 6,754 7,464
Other....................................................................... 2,217 1,534
Working capital and other changes, excluding changes relating to cash and
non-operating activities:
Receivables.............................................................. 16,543 27,567
Receivables from affiliates.............................................. 10,263 6,927
Materials and supplies................................................... 229 325
Prepaid expenses......................................................... 203 (982)
Accounts payable and accrued expenses.................................... (19,353) (22,059)
Accounts payable to affiliates........................................... (26,154) 17,181
Taxes on income.......................................................... (14,873) 2,012
----------- ----------
36,347 99,977
----------- ----------
Cash Flow from Investing Activities:
Purchases of plant, property and equipment..................................... (14,114) (45,309)
Proceeds from sale of plant, property and equipment............................ 435 230
Investments in related parties................................................. 12,034 (2,368)
Net increase in notes receivable from affiliates............................... (34,569) (57,192)
----------- ----------
(36,214) (104,639)
----------- ----------
Cash Flow from Financing Activities:
Net increase in notes payable to affiliates.................................... 206 5,416
----------- ----------
206 5,416
----------- ----------
Net Increase in Cash.............................................................. 339 754
Cash at Beginning of Period....................................................... 109 3,508
----------- ----------
Cash at End of Period............................................................. $ 448 $ 4,262
=========== ==========
</TABLE>
See Notes to Consolidated Financial Statements.
- 4 -
<PAGE>
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, 1998. 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
results of operations, financial position or cash flows.
The Financial Accounting Standards Board ("FASB") has issued Statement of
Financial Accounting Standards No. 133, "Accounting for Derivative Instruments
and Hedging Activities" ("FAS 133"), as amended by Statement of Financial
Accounting Standards No. 137, to be effective for all fiscal quarters of fiscal
years beginning after June 15, 2000. FAS 133 requires that an entity recognize
all derivatives as either assets or liabilities in the statement of financial
position and measure those instruments at fair value. The accounting for changes
in the fair value of a derivative will depend on the intended use of the
derivative and the resulting designation. The Company is currently evaluating
the impact, if any, of FAS 133.
The Company adopted American Institute of Certified Public Accountants
Statement of Position 98-5, "Reporting on the Costs of Start-Up Activities"
("SOP 98-5"), in 1999. The application of SOP 98-5 did not have a material
effect on the Company's consolidated financial statements.
The Company adopted FASB Emerging Issues Task Force Issue No. 98-10,
"Accounting for Contracts in Energy Trading and Risk Management Activities," in
1999. The application of Issue No. 98-10 is not expected to have a material
effect on the Company's consolidated financial statements.
Supplemental information relative to the Statement of Consolidated Cash
Flows includes the following: cash payments the Company made for interest and
financing fees, net of amounts capitalized, were $12.4 million and $13.3 million
for the six-month periods ended June 30, 1999 and 1998, respectively. Cash
payments for income taxes amounted to $32.6 million and $14.5 million for the
six-month periods ended June 30, 1999 and 1998, respectively.
2. Income Taxes
Provisions for income taxes are composed of the following (thousands of
dollars):
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
---------------------- ---------------------
1999 1998 1999 1998
---------- ---------- --------- ---------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Current Income Taxes:
Federal................................................... $ 4,320 $ 4,926 $ 16,687 $ 14,977
State..................................................... 288 567 976 1,543
---------- ---------- --------- ---------
4,608 5,493 17,663 16,520
---------- ---------- --------- ---------
Deferred Income Taxes
Federal................................................... 2,627 1,879 6,050 6,707
State..................................................... 346 145 704 757
---------- ---------- --------- ---------
2,973 2,024 6,754 7,464
---------- ---------- --------- ---------
Taxes on Income.............................................. $ 7,581 $ 7,517 $ 24,417 $ 23,984
========== ========== ========= =========
<FN>
Interim period provisions for income taxes are based on estimated
effective annual income tax rates.
</FN>
</TABLE>
- 5 -
<PAGE>
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 ("Coastal"). Therefore, earnings and cash dividends per common share
have no significance and are not presented.
4. Segment Information
The Company's operating revenues from external customers and intersegment
revenues and earnings before interest and income taxes for the three and six
months ended June 30, 1999 and 1998 are shown as follows (thousands of dollars):
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
---------------------- ---------------------
1999 1998 1999 1998
---------- ---------- --------- ---------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Operating Revenues
Natural gas.................................................. $ 65,636 $ 100,400 $ 149,337 $ 228,229
Exploration and production................................... 4,551 3,123 7,921 9,378
Exploration and production intersegment revenue
eliminations............................................... (11) (2,219) (23) (6,809)
---------- ---------- --------- ---------
Consolidated Totals....................................... $ 70,176 $ 101,304 $ 157,235 $ 230,798
========== ========== ========= =========
Earnings (Loss) Before Interest and Income Taxes
Natural gas.................................................. $ 26,939 $ 29,455 $ 80,519 $ 79,756
Exploration and production................................... 999 (459) 1,091 679
---------- ----------- --------- ---------
Consolidated Totals....................................... $ 27,938 $ 28,996 $ 81,610 $ 80,435
========== ========== ========= =========
</TABLE>
5. 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, Northern District
of Texas, claiming underpayment of royalties, 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 and 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 new trial was denied on July 18, 1997, and both parties filed appeals. On
June 7, 1996, the same plaintiffs sued Colorado in state court in Amarillo,
Texas, for underpayment of royalties. Colorado removed the second lawsuit to
federal court which granted a stay of the second lawsuit pending the outcome of
the first lawsuit. Oral arguments were heard before the Fifth Circuit Court of
Appeals on December 4, 1998 and the parties are awaiting the Court's decision.
In 1996, Jack Grynberg filed a claim under the False Claims Act on behalf
of the U.S. government in the U.S. District Court, District of Columbia, against
70 defendants, including Colorado and another subsidiary of Coastal. The suit
sought damages for the alleged underpayment of royalties due to the purported
improper measurement of gas. The 1996 suit was dismissed without prejudice in
March 1997 and the dismissal was affirmed by the D.C. Court of Appeals in
October 1998. In September 1997, Mr. Grynberg filed 77 separate, similar False
Claims Act suits against natural gas transmission companies and producers,
gatherers, and processors of natural gas, seeking unspecified damages. Colorado,
Coastal and several other Coastal subsidiaries have been included in two of the
September 1997 suits. The suits were filed in both the U.S. District Court,
District of Colorado and the U.S. District Court, Eastern District of Michigan.
In
- 6 -
<PAGE>
April 1999, the United States Department of Justice notified the Company that
the United States will not intervene in these cases. Action under these suits
has been stayed pending a determination on the motion by Mr. Grynberg to have
the suits consolidated under the federal Multidistrict Litigation rules.
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 and production facilities. Compliance with such
laws and regulations can be costly. Additionally, governmental authorities may
enforce the laws and regulations with a variety of civil and criminal
enforcement measures, including monetary penalties and remediation requirements.
Future information and developments, including legislative and enforcement
developments, will require the Company to continually reassess the expected
impact of these environmental matters. However, the Company has evaluated its
total environmental exposure based on currently available data, including its
potential joint and several liability, and believes that compliance with all
applicable laws and regulations will not have a material adverse impact on the
Company's consolidated financial position or results of operations.
Regulatory Matters
On July 29, 1998, the Federal Energy Regulatory Commission ("FERC") issued
a "Notice of Proposed Rulemaking," in which the FERC has proposed a number of
further significant changes to the industry, including, among other things,
removal of price caps in the short-term market (less than one year), capacity
auctions, changed reporting obligations, the ability to negotiate terms and
conditions of all services, elimination of the requirement of a matching term
cap on the renewal of existing contracts and a review of its policies for
approving capacity construction. On the same day, the FERC also issued a "Notice
of Inquiry" soliciting industry input on various matters affecting the pricing
of long-term service and certificate pricing in light of changing market
conditions. The FERC has indicated that it may consider both proposals together
inasmuch as they raise several common issues. Comments on both of these matters
were due on April 22, 1999, and Colorado and its affiliates filed comments with
the FERC on that date, urging the FERC, among other things, to modify its rate,
service and certification policies for such pipelines.
Certain regulatory issues remain unresolved among 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. As
a result, the Company anticipates that these regulatory matters will not have a
material adverse effect on its consolidated financial position or results of
operations. While the Company estimates the provisions to be adequate to cover
potential adverse rulings on these and other issues, it cannot estimate when
each of these issues will be resolved.
- 7 -
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations.
This report includes certain forward-looking statements. The forward-
looking statements reflect the Company's expectations, objectives and goals with
respect to future events and financial performance, and are based on assumptions
and estimates which the Company believes are reasonable. However, actual results
could differ materially from anticipated results. Important factors which may
affect the actual results include, but are not limited to, commodity prices,
political developments, market and economic conditions, industry competition,
the weather, changes in financial markets, changing legislation and regulations,
and the impact of the Year 2000 issue. The forward-looking statements contained
in this Report are intended to qualify for the safe harbor provisions of Section
21E of the Securities Exchange Act of 1934, as amended.
The Notes to Consolidated Financial Statements contain information that is
pertinent to the following analysis.
The information required by this Item is presented in a reduced disclosure
format pursuant to General Instruction (H) of Form 10-Q.
Results of Operations
The change in the Company's earnings for the three- and six-month periods
ended June 30, 1999, in comparison to the corresponding periods in 1998, is a
result of the following:
Operating Revenues. The operating revenues by segment were as follows
(thousands of dollars):
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
---------------------- ---------------------
1999 1998 1999 1998
---------- ---------- --------- ---------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Natural gas............................................. $ 65,636 $ 100,400 $ 149,337 $ 228,229
Exploration and production.............................. 4,551 3,123 7,921 9,378
Eliminations............................................ (11) (2,219) (23) (6,809)
---------- ---------- --------- ---------
$ 70,176 $ 101,304 $ 157,235 $ 230,798
========== ========== ========= =========
</TABLE>
Earnings Before Interest and Income Taxes. The earnings (loss) before
interest and income taxes by segment was as follows (thousands of dollars):
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
---------------------- ---------------------
1999 1998 1999 1998
---------- ---------- --------- ---------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Natural gas............................................. $ 26,939 $ 29,455 $ 80,519 $ 79,756
Exploration and production.............................. 999 (459) 1,091 679
---------- ---------- --------- ---------
$ 27,938 $ 28,996 $ 81,610 $ 80,435
========== ========== ========= =========
</TABLE>
Natural Gas. The decrease in operating revenues of $34.8 million for the
three months ended June 30, 1999 from the comparable 1998 period is due to a
$29.0 million decrease related to gas sales volumes and a $6.3 million decrease
related to average gas sales prices caused primarily by the assignment of the
Company's Merchant Division activity to an affiliate effective July 1, 1998, a
$4.2 million decrease related to extracted products revenue and other net
decreases of $.3 million partially offset by decreased gas sales reservation of
$3.2 million and a $1.8 million increase in gathering revenues. The decrease in
operating revenues of $78.9 million for the six months ended June 30, 1999 from
the comparable 1998 period is due to a $63.1 million decrease related to gas
sales volumes and a $13.9 million decrease related to average gas sales prices,
as referenced above, a $7.5 million decrease related to extracted products
revenue partially offset by increased gathering revenues of $4.1 million and
other net increases of $1.5 million.
- 8 -
<PAGE>
Other income decreased $.2 million for the three-month period and $.5
million for the six-month period ended June 30, 1999 from the respective periods
in 1998 due to decreased interest income from affiliates.
Cost of gas sold decreased by $32.5 million for the three-month period and
$75.3 million for the six-month period ended June 30, 1999 from the comparable
periods in 1998 as a result of the decrease in gas purchase volumes caused by
the assignment of the Company's Merchant Division activity to an affiliate
effective July 1, 1998.
Operation and maintenance expenses decreased by $.5 million for the three
months ended June 30, 1999 from the comparable period in 1998 due primarily to a
$1.8 million increase in administrative expense transfers, a $.8 million
decrease in gas transportation expenses and other miscellaneous decreases of $.5
million partially offset by a $2.6 million increase in net system balancing
requirements. Operation and maintenance expenses decreased by $5.8 million for
the six months ended June 30, 1999 from the comparable period in 1998 due
primarily to a $3.7 million increase in administrative expense transfers, a $2.6
million decrease in employee benefits, a $2.4 million decrease in gas
transportation expense, a $1.2 million decrease in property tax expenses, a $.8
million decrease in materials and supplies and other net decreases of $.5
million partially offset by a $5.4 million increase in net system balancing
requirements.
Depreciation, depletion and amortization increased $.5 million for the
three-month period and $.9 million for the six-month period ended June 30, 1999
from the comparable periods in 1998 due primarily to increased depreciable
plant.
Exploration and Production. The increase in operating revenues of $1.4
million for the three months ended June 30, 1999 from the comparable 1998 period
is primarily due to a $.9 million increase related to gas sales volumes, a $.4
million increase related to average natural gas sales prices and a $.1 million
increase related to condensate and natural gas liquids sales volumes. The
decrease in operating revenues of $1.5 million for the six months ended June 30,
1999 from the comparable 1998 period is primarily due to a $1.6 million decrease
related to gas sales volumes partially offset by a $.1 million increase in
average natural gas sales prices.
Other income decreased by $.1 million for the three-month period and $.2
million for the six-month period ended June 30, 1999 from the respective 1998
periods as a result of decreased interest income from affiliates.
Operation and maintenance expenses decreased by $.5 million for the
three-month period and $1.0 for the six-month period ended June 30, 1999 from
the respective 1998 periods primarily as a result of lower management service
fees.
Depreciation, depletion and amortization expenses increased by $.4 million
for the three-month period ended June 30, 1999 from the comparable 1998 period
due to higher production volumes partially offset by a lower depreciation rate.
Depreciation, depletion and amortization expenses decreased by $1.1 million for
the six-month period ended June 30, 1999 from the comparable 1998 period due to
lower production volumes and a lower depreciation rate.
- 9 -
<PAGE>
PART II
OTHER INFORMATION
Item 1. Legal Proceedings.
The information required hereunder is incorporated by reference into
Part II of this Report from Note 5 of the Notes to Consolidated Financial
Statements 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, 1999.
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, 1999 By: DAN A. HOMEC
-----------------------------
Dan A. Homec
Assistant Vice President
and Controller
(As Authorized Officer and
Chief Accounting Officer)
- 10 -
<PAGE>
INDEX TO EXHIBITS
Exhibit
Number Description
- --------------------------------------------------------------------------------
27 Financial Data Schedule
- 11 -
<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,
1999 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-31-1999
<PERIOD-END> JUN-30-1999
<CASH> 448
<SECURITIES> 0
<RECEIVABLES> 335,178
<ALLOWANCES> 0
<INVENTORY> 8,437
<CURRENT-ASSETS> 376,840
<PP&E> 1,377,031
<DEPRECIATION> 727,553
<TOTAL-ASSETS> 1,104,313
<CURRENT-LIABILITIES> 128,392
<BONDS> 279,557
0
0
<COMMON> 27,561
<OTHER-SE> 513,730
<TOTAL-LIABILITY-AND-EQUITY> 1,104,313
<SALES> 157,235
<TOTAL-REVENUES> 164,212
<CGS> 0
<TOTAL-COSTS> 82,602
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 12,373
<INCOME-PRETAX> 69,237
<INCOME-TAX> 24,417
<INCOME-CONTINUING> 44,820
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 44,820
<EPS-BASIC> 0
<EPS-DILUTED> 0
</TABLE>
