<PAGE>
<PAGE> 1
- - ---------------------------------------------------------------------------
- - ---------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED]
For the fiscal year ended December 31, 1993
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
For the transition period from __________ to __________
Commission file number 2-50853
THE COASTAL CORPORATION
THRIFT PLAN
(Full title of the plan)
THE COASTAL CORPORATION
Coastal Tower
Nine Greenway Plaza
Houston, Texas 77046-0995
(Name of issuer of the securities held pursuant to the
plan and address of its principal executive office)
- - ---------------------------------------------------------------------------
- - ---------------------------------------------------------------------------
<PAGE>
<PAGE> 2
INDEPENDENT AUDITORS' REPORT
Administrator
The Coastal Corporation Thrift Plan
Houston, Texas
We have audited the accompanying statements of net assets available for plan
benefits of The Coastal Corporation Thrift Plan (the "Plan") as of December
31, 1993 and 1992, and the related statements of changes in net assets
available for plan benefits for the years then ended. These financial
statements are the responsibility of the Plan's management. Our
responsibility is to express an opinion on these financial statements based
on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, such financial statements present fairly, in all material
respects, the net assets available for benefits of the Plan as of December
31, 1993 and 1992, and the changes in net assets available for plan benefits
for the years then ended in conformity with generally accepted accounting
principles.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules 1 through
10 and Items 27a and 27d are presented for the purpose of additional
analysis and are not a required part of the basic financial statements, but
are supplementary information required by the Department of Labor's Rules
and Regulations for Reporting and Disclosure under the Employee Retirement
Income Security Act of 1974. These schedules are the responsibility of the
Plan's management. Such schedules have been subjected to the auditing
procedures applied in our audit of the basic financial statements and, in
our opinion, are fairly stated in all material respects when considered in
relation to the basic financial statements taken as a whole.
DELOITTE & TOUCHE
Houston, Texas
June 20, 1994<PAGE>
<PAGE> 3
THE COASTAL CORPORATION THRIFT PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
<TABLE>
<CAPTION>
December 31,
--------------------------------
1993 1992
-------------- --------------
<S> <C> <C>
ASSETS
Investments, at market:
Securities of The Coastal Corporation:
Common Stock . . . . . . . . . . . . . . . . . . . . . . . . . $ 240,082,133 $ 190,941,220
Class A Common Stock . . . . . . . . . . . . . . . . . . . . . 874,486 858,426
$1.83 Cumulative Convertible
Preferred Stock, Series B . . . . . . . . . . . . . . . . . . 92,353 139,685
Challenger International, Ltd. Common Stock . . . . . . . . . . . 41,876 15,550
Valero Energy Corporation Common Stock . . . . . . . . . . . . . . 1,239,579 1,626,527
Insurance Contracts . . . . . . . . . . . . . . . . . . . . . . . 86,499,782 85,372,056
Unaffiliated Stock . . . . . . . . . . . . . . . . . . . . . . . . 16,132,405 14,632,613
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,436,165 244,475
-------------- --------------
Total Investments . . . . . . . . . . . . . . . . . . . . . . . . . . 346,398,779 293,830,552
-------------- --------------
Receivables:
Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . - 1,115,560
Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . 890,263 840,474
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,581 3,268
-------------- --------------
Total Receivables . . . . . . . . . . . . . . . . . . . . . . . . . . 892,844 1,959,302
-------------- --------------
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,735 6
-------------- --------------
TOTAL ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . 347,299,358 295,789,860
-------------- --------------
LIABILITIES
Payable to employer . . . . . . . . . . . . . . . . . . . . . . . . . 22,338 29,112
Payable to participants . . . . . . . . . . . . . . . . . . . . . . . 4,460,314 1,161,565
-------------- --------------
TOTAL LIABILITIES . . . . . . . . . . . . . . . . . . . . . . 4,482,652 1,190,677
-------------- --------------
NET ASSETS AVAILABLE FOR PLAN BENEFITS . . . . . . . . . . . . . . . $ 342,816,706 $
294,599,183
-------------- --------------
-------------- --------------
</TABLE>
See Notes and Schedules to Financial Statements.
-2-<PAGE>
<PAGE> 4
THE COASTAL CORPORATION THRIFT PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
<TABLE>
<CAPTION>
For the Year Ended
December 31,
--------------------------------
1993 1992
-------------- --------------
<S> <C> <C>
ADDITIONS:
Investment income:
Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,006,507 $ 3,778,724
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,922,527 7,646,655
-------------- --------------
Total investment income . . . . . . . . . . . . . . . . . . . . . 10,929,034 11,425,379
-------------- --------------
Realized gains on investments (Note 6) . . . . . . . . . . . . . . . 4,045,420 1,349,604
-------------- --------------
Net change in unrealized appreciation (depreciation)
of investments (Note 7) . . . . . . . . . . . . . . . . . . . . . 33,703,833 (7,455,951)
-------------- --------------
Contributions:
Employer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,666,859 16,572,749
Forfeitures . . . . . . . . . . . . . . . . . . . . . . . . . . . (189,930) (185,507)
-------------- --------------
Net employer contributions . . . . . . . . . . . . . . . . . . 18,476,929 16,387,242
-------------- --------------
Rollover from other plans . . . . . . . . . . . . . . . . . . . . 15,078 32,016
Participants . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,943,889 18,935,793
-------------- --------------
Total contributions . . . . . . . . . . . . . . . . . . . . . . . 38,435,896 35,355,051
-------------- --------------
DEDUCTIONS:
Withdrawals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (38,896,660) (24,219,636)
-------------- --------------
Net increase . . . . . . . . . . . . . . . . . . . . . . . . . . . 48,217,523 16,454,447
-------------- --------------
NET ASSETS AVAILABLE FOR PLAN BENEFITS:
Beginning of Year . . . . . . . . . . . . . . . . . . . . . . . . 294,599,183 278,144,736
-------------- --------------
End of Year . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 342,816,706 $ 294,599,183
-------------- --------------
-------------- --------------
</TABLE>
See Notes and Schedules to Financial Statements.
-3-<PAGE>
<PAGE> 5
THE COASTAL CORPORATION THRIFT PLAN
NOTES TO FINANCIAL STATEMENTS
1. Description of the Plan
General
The Coastal Corporation Thrift Plan (the "Plan") is primarily an
employee stock purchase plan which is registered under the Securities Act of
1933, as amended and designed to provide a systematic means whereby the
contributions of eligible employees of The Coastal Corporation and
participating subsidiaries ("Coastal" or "Company") may be invested for the
benefit of the participating employees. The Plan is administered by Coastal;
and pursuant to the provisions of the Plan, an Administrative Committee
comprised of Coby C. Hesse, Ronald A. Brownlee, Austin M. O'Toole and E. C.
Simpson, all of whom are employees of Coastal, has been appointed to carry
out certain duties under the Plan. Texas Commerce Bank National Association
(the "Trustee") (formerly Ameritrust Texas, N.A.) is the Trustee of the Plan
Trust (the "Trust"). All employees eligible for participation in the Plan
receive a prospectus and an employee handbook, which may be updated by
supplements from time to time, containing a general description of the Plan.
The Trustee holds the investment assets of the Plan and executes
transactions relating thereto.
Termination of the Plan
Although it has not expressed any intent to do so, the Company has the
right under the Plan to discontinue its contributions at any time and to
terminate the Plan subject to the provisions of the Employee Retirement
Income Security Act of 1974, as amended ("ERISA"). In the event of
termination, participants will become 100 percent vested in their accounts.
Amendment
The Plan was amended to comply with Internal Revenue Code (the "Code")
Section 401(a)(17) regarding the amount of compensation and earnings that
may be taken into account; and Section 401(a)(31) to provide for eligible
rollover distributions. Also, the Plan was amended, effective January 1,
1990 to modify the definition of Employee by deleting the exclusion relating
to part time and temporary employees.
2. Summary of Significant Accounting Policies
Accounting Basis
The financial statements of the Plan are prepared on the accrual basis
of accounting.
Marketable Securities
Securities valuations are based on the last recorded sales price at
December 31, 1993 and 1992, as reported by the principal securities exchange
on which the security is traded, or the average of the bid and the asked
price if sold over the counter. Realized gains and losses reported on the
sale or withdrawal of securities by participants are based on the difference
between market values of the securities sold and/or issued at the effective
dates and the market value at the beginning of the year and cost of
securities purchased during the year.
Insurance Contracts
-4-<PAGE>
<PAGE> 6
Guaranteed investment contracts with The Travelers Insurance Company,
Provident Life & Accident Insurance Company, Pacific Mutual Life Insurance
Company and Prudential Insurance Company of America are stated at contract
value as reported by the respective insurance companies.
Federal Income Taxes
The Company received its most recent determination letter dated
November 27, 1987 from the Internal Revenue Service which states the Plan
meets the exemption requirements of Section 401(a) of the Code; and
therefore, the Trust is exempt from taxation under Section 501(a) of the
Code. Since that determination, certain amendments have been made. It is the
opinion of management that, on the basis of the Internal Revenue Service's
prior determination, and existing federal income tax laws, the Plan, as
amended, continues to be qualified. Accordingly, no provision has been made
for federal income taxes.
3. Contributions to the Plan
Employee Contributions
Upon enrollment, a participant may elect to contribute to the Plan on a
before or after tax basis, by means of regular payroll deductions, initially
two percent (2%) and increasing to eight percent (8%) over a period of
years, in increments of one percent (1%) of the participant's basic
compensation up to $200,000 as adjusted for cost of living adjustments
($235,840 for 1993) and up to $150,000 beginning in 1994 or such greater
amount as may be allowed by Section 401(a) of the Code. Generally, "basic
compensation" means fixed salaries or wages per hour, sales commissions, and
truck mileage and loading which are paid by the Company to the participant,
excluding compensation for bonuses, overtime and other incentive
compensation.
Employee contributions to the Plan, except those contributed pursuant
to Section 401(k) of the Code, are taxed at ordinary income tax rates as a
part of their salary. The employer contributions, investment income,
employee contributions under provisions of Section 401(k), and unrealized
appreciation are not taxable to the employee until withdrawal.
Employer Contributions
The Company will make Company matched contributions for the account of
the participant at an amount equal to the employee contributions subject to
a maximum rate of two percent (2%) of the employee's basic compensation (as
defined above) during the first and second year of active participation in
the Plan; thereafter, the Company matched contributions are increased to not
more than four percent (4%) during the third and fourth years of active
participation, six percent (6%) during the fifth and sixth years of active
participation and eight percent (8%) after six years of active participation
in the Plan. However, participants in the Company's coal and freight
operations are not eligible for Company matched contributions.
Vesting
A participant's balance in the Trust is vested in such participant at
all times, except that his interest in the Company's contributions and
appreciation and earnings thereon becomes vested at the rate of 20% upon
completion of each twelve months of Active Participation (as defined in the
Plan); such vesting continues, on a cumulative basis, until a participant
becomes fully vested. Any period of time during which a participant has
-5-<PAGE>
<PAGE> 7
declined to contribute to the Plan is not included in the determination of
vesting of Company contributions.
4. Investment Programs*
Funds in Which Current Employee Contributions Are Invested:
The Coastal Common Stock Fund is a fund invested in the common stock of
Coastal. Cash dividends thereon are reinvested in such Common Stock Fund.
The Diversified Fund is an unsegregated fund invested in capital stocks
of issuers (other than Coastal or any subsidiary thereof), notes, bonds,
debentures, and other similar types of investments. A portion of the
Diversified Fund may be retained in cash or invested temporarily in
commercial paper, certificates of deposit or savings accounts.
The Interest Income Fund is an unsegregated fund invested in interest
bearing investments such as bonds, notes, debentures, commercial paper,
savings accounts, savings certificates, deposit accounts maintained by one
or more legal reserve life insurance companies which provide for the payment
of fixed or variable rates of interest for specified periods of time, and
other similar types of investments. A portion of the Interest Income Fund
may be retained in cash.
All employer matched contributions are invested in the Coastal Common
Stock Fund only.
Funds in Which Current Employee Contributions Are Not Invested:
The Coastal Preferred Stock Fund is a fund established to hold $1.83
Cumulative Convertible Preferred Stock, Series B of Coastal. Dividends
declared on such Preferred Stock are invested in the Coastal Common Stock
Fund. Each participant may elect to convert his interest in this fund into
Coastal Common Stock.
The Valero Stock Fund is a fund established to hold the common stock of
Valero Energy Corporation ("Valero") received as a result of the spin-off of
Valero by Coastal. A participant may direct the sale of Valero Common Stock
in his account and have the proceeds invested in the Diversified Fund or in
the Coastal Common Stock Fund. In addition, the participant may direct that
the proceeds from sales of stock attributable to his contributions and
earnings thereon be invested in the Interest Income Fund. Dividends or other
cash realized from Valero Common Stock are invested in the Diversified Fund
unless the participant elects to have such cash invested in the Coastal
Common Stock Fund.
The International Stock Fund is a fund established to hold the common
stock of Challenger International, Ltd. ("Challenger"), formerly Coastal
International, Ltd., issued as a result of the spin-off of Challenger by
Coastal. A participant may direct the sale of Challenger Common Stock in his
account and have the proceeds invested in the Coastal Common Stock Fund or
the Diversified Fund or to have Challenger Common Stock, attributable to the
participant's contributions and earnings sold, and the proceeds invested in
the Interest Income Fund. Dividends or other cash realized from Challenger
Common Stock are invested in the Coastal Common Stock Fund.
* For the Statement of Changes in Net Assets Available for Plan
Benefits by Fund, refer to Schedule 10.
-6-<PAGE>
<PAGE> 8
The Coastal Class A Common Stock Fund is a fund invested in Class A
Common Stock of Coastal received as a result of a stock dividend in 1984.
Dividends declared on Coastal Class A Common Stock are invested in the
Coastal Common Stock Fund. A participant may have the Class A Common Stock
in his account converted to Coastal Common Stock. Class A Common Stock
attributable to a participant's own contributions and earnings may be
converted into Coastal Common Stock, the Common Stock sold and the proceeds
invested in the Diversified Fund or the Interest Income Fund.
The Fixed Income Fund is a fund invested in deposit accounts maintained
by one or more legal reserve life insurance companies for the benefit of
employees who had a beneficial interest, as of December 31, 1985, in the
Fixed Income Fund of the American Natural Resources System Companies
Employees' Savings Plan (the "ANR Fixed Income Fund"). Balances in the ANR
Fixed Income Fund as of December 31, 1985, were transferred to the Fixed
Income Fund of the Plan as of January 1, 1986 and no contributions to this
fund have been made since that date. A participant may elect to transfer his
account balance to either the Coastal Common Stock Fund, the Diversified
Fund, or the Interest Income Fund.
5. Administrative Costs
All administrative Plan expenses, including fees and Trustee expenses,
are paid by Coastal or its participating subsidiaries. Brokerage fees, taxes
and other transaction fees are paid from Plan assets.
-7-<PAGE>
<PAGE> 9
6. Realized Gain (Loss) on Investments
The following is a summary of realized gains (losses) on investments
for the years ended December 31, 1993 and 1992:
<TABLE>
<CAPTION>
1993 1992
--------------------------------------------- ---------------------------------------------
Sales Sales
Proceeds Proceeds
or Market Aggregrate Realized or Market Aggregate
Realized
Value of Carrying Gain Value of Carrying Gain
Securities Withdrawals Amount (Loss) Withdrawals Amount
(Loss)
- - -------------------------- -------------- ------------ ----------- -------------- ------------ -----------
<S> <C> <C> <C> <C> <C>
<C>
Coastal Common Stock Fund:
The Coastal Corporation
Common Stock $ 29,866,438 $ 26,650,359 $ 3,216,079 $ 19,823,450 $
18,512,950 $ 1,310,500
Diversified Fund:
Unaffiliated marketable
securities 13,126,857 12,314,214 812,643 15,731,585
15,684,198 47,387
Coastal Class A Common Stock
Fund:
The Coastal Corporation
Class A Common Stock 116,615 109,061 7,554 128,348
113,160 15,188
Coastal Preferred Stock Fund:
The Coastal Corporation
$1.83 Cumulative Convertible
Preferred Stock, Series B 57,250 53,417 3,833 6,305 5,865
440
Valero Stock Fund:
Valero Energy Corporation
Common Stock 309,341 309,750 (409) 215,289 239,220
(23,931)
International Stock Fund:
Challenger International, Ltd.
Common Stock 8,622 2,902 5,720 1,591 1,571
20
-------------- ------------ ----------- -------------- ------------ -----------
$ 43,485,123 $ 39,439,703 $ 4,045,420 $ 35,906,568 $
34,556,964 $ 1,349,604
-------------- ------------ ----------- -------------- ------------ -----------
-------------- ------------ ----------- -------------- ------------ -----------
</TABLE>
-8-<PAGE>
<PAGE> 10
7. Net Changes in Unrealized Appreciation (Depreciation) of Investments
During 1993 and 1992 the fair value of investments (including
investments bought and sold, as well as held during the year) appreciated
(depreciated) as follows:
<TABLE>
<CAPTION>
1993 1992
------------- -------------
<S> <C> <C>
Coastal Common Stock $ 32,758,988 $ (7,863,590)
Coastal Preferred Stock 9,452 9,210
Coastal Class A Common Stock 130,994 (26,966)
Valero Common Stock (92,839) (488,847)
Challenger International Common Stock 28,458 3,888
Unaffiliated Common Stock 868,780 910,354
------------- -------------
$ 33,703,833 $ (7,455,951)
------------- -------------
------------- -------------
</TABLE>
-9-<PAGE>
<PAGE> 11
8. Unit Values
For the funds which assign units to participants,
the following table sets forth the number of units and
unit values:
<TABLE>
<CAPTION>
1993 1992
---------------------------------- ----------------------------------
Employee Net Asset Employee Net Asset
Units Value Units Value
Outstanding Per Unit Outstanding Per Unit
---------------- ------------- ---------------- -------------
<S> <C> <C> <C> <C>
Diversified Fund 2,977,353 $ 5.474 3,124,329 $ 4.722
Interest Income Fund 21,739,079 $ 1.000 20,621,258 $ 1.000
Fixed Income Fund 64,184,880 $ 1.000 64,419,048 $ 1.000
</TABLE>
-10-<PAGE>
<PAGE> 12
<TABLE>
<CAPTION>
Schedule 1 - Investments *
------------------------
Coastal Common Stock Fund
-------------------------
Security Shares Cost Market Value
- - -------- --------- -------------- ---------------
<S> <C> <C> <C>
The Coastal Corporation
Common Stock:
December 31, 1993(1) 8,501,355 $ 144,927,029 $ 240,082,133
--------- -------------- ---------------
--------- -------------- ---------------
December 31, 1992 7,997,538 $ 125,591,056 $ 190,941,220
--------- -------------- ---------------
--------- -------------- ---------------
<FN>
* See also Schedule 9.
(1) Exceeds 5% of net assets.
</TABLE>
<TABLE>
<CAPTION>
Schedule 2 - Investments
------------------------
Coastal Class A Common
Stock Fund
----------------------------
Shares Cost Market Value
--------- -------------- ---------------
<S> <C> <C> <C>
The Coastal Corporation
Class A Common Stock:
December 31, 1993 31,059 $ 347,871 $ 874,486
-------------- ---------------
December 31, 1992 35,955 $ 402,635 $ 858,426
-------------- ---------------
-------------- ---------------
</TABLE>
<TABLE>
<CAPTION>
Schedule 3 - Investments *
------------------------
Valero Stock Fund
Shares Cost Market Value
--------- -------------- ---------------
<S> <C> <C> <C>
Valero Energy Corporation
Common Stock:
December 31, 1993 58,366 $ 295,785 $ 1,239,579
-------------- ---------------
-------------- ---------------
-11-<PAGE>
<PAGE> 13
December 31, 1992 71,105 $ 360,343 $ 1,626,527
-------------- ---------------
-------------- ---------------
<FN>
* See also Schedule 9.
</TABLE>
<TABLE>
<CAPTION>
Schedule 4 - Investments *
------------------------
International Stock Fund
------------------------
Shares Cost Market Value
--------- -------------- ---------------
<S> <C> <C> <C>
Challenger International,
Ltd. Common Stock:
December 31, 1993 12,910 $ 4,373 $ 41,876
-------------- ---------------
-------------- ---------------
December 31, 1992 15,550 $ 5,267 $ 15,550
-------------- ---------------
-------------- ---------------
<FN>
* See also Schedule 9.
</TABLE>
-12-<PAGE>
<PAGE> 14
<TABLE>
<CAPTION>
Schedule 5 - Investments *
------------------------
Coastal Preferred Stock Fund
----------------------------
Shares Cost Market Value
--------- -------------- ---------------
<S> <C> <C> <C>
The Coastal Corporation
$1.83 Cumulative Convertible
Preferred Stock, Series B:
December 31, 1993 911 $ 25,847 $ 92,353
-------------- ---------------
-------------- ---------------
December 31, 1992 1,535 $ 43,551 $ 139,685
-------------- ---------------
-------------- ---------------
<FN>
* See also Schedule 9.
</TABLE>
<TABLE>
<CAPTION>
Schedule 6 - Investments *
------------------------
Interest Income Fund
------------------------
Shares Cost Market Value
--------- -------------- ---------------
<S> <C> <C> <C>
December 31, 1993:
Insurance Contracts:
Pacific Mutual Life Insurance Company(1) N/A $ 4,041,174 $ 4,041,174
Provident Life & Accidental Insurance Company(1) N/A 4,625,065 4,625,065
Travelers Insurance Company(1) N/A 13,246,083 13,246,083
-------------- ---------------
$ 21,912,322 $ 21,912,322
-------------- ---------------
-------------- ---------------
December 31, 1992:
Insurance Contracts:
Provident Life & Accident Insurance Company N/A $ 5,076,002 $ 5,076,002
-------------- ---------------
Travelers Insurance Company N/A 15,588,297 15,588,297
-------------- ---------------
$ 20,664,299 $ 20,664,299
-------------- ---------------
-------------- ---------------
<FN>
* See also Schedule 9.
(1) Exceeds 5% of net assets.
</TABLE>
-13-<PAGE>
<PAGE> 15
<TABLE>
<CAPTION> Schedule 7 - Investments *
------------------------
Fixed Income Fund
------------------------
Shares Cost Market Value
--------- -------------- ---------------
<S> <C> <C> <C>
December 31, 1993: Insurance Contracts:
Pacific Mutual Life Insurance Company(1) N/A $ 13,171,399 $ 13,171,399
Provident Life & Accidental Insurance Company(1) N/A 14,156,452 14,156,452
Prudential Insurance Company of America N/A 8,077,756 8,077,756
Travelers Insurance Company(1) N/A 29,181,853 29,181,853
-------------- ---------------
$ 64,587,460 $ 64,587,460
-------------- ---------------
-------------- ---------------
December 31, 1992:
Insurance Contracts:
Provident Life & Accident Insurance Company N/A $ 14,937,323 $
14,937,323
Prudential Insurance Company of America N/A 16,968,223 16,968,223
Travelers Insurance Company N/A 32,802,211 32,802,211
-------------- ---------------
$ 64,707,757 $ 64,707,757
-------------- ---------------
-------------- ---------------
<FN>
* See also Schedule 9.
(1) Exceeds 5% of net assets.
</TABLE>
-14-<PAGE>
<PAGE> 16
<TABLE>
<CAPTION>
Schedule 8 - Investments *
------------------------
Diversified Fund
------------------------
Security - December 31, 1993 Shares Cost Market Value
- - -------- --------- -------------- ---------------
<S> <C> <C> <C>
Preferred stock
American Express Company 4,100 $ 150,675 $ 162,975
Delta Airline 5,425 275,990 290,238
Ford Motor Company 2,300 232,439 249,550
Freeport McMoran Incorporated 5,900 154,986 182,900
General Motors Corporation 3,900 212,189 213,525
Kmart Corporation 1,800 81,333 80,100
Sears Roebuck & Company 2,400 128,962 135,000
Tenneco Incorporated 3,300 136,261 138,187
-------- -------------- ---------------
29,125 1,372,835 1,452,475
-------- -------------- ---------------
Common stock
Aetna Life & Casualty Company 5,600 273,325 338,100
Alexander & Alexander SRV 8,800 220,963 171,600
Alltel Corporation 3,000 80,430 88,500
American Cyanamid Company 4,400 225,053 221,100
American Express Company 7,960 206,945 245,765
American General Corporation 4,270 104,852 122,229
Aon Corporation 5,270 239,603 254,936
Amoco Corporation 3,510 178,071 185,591
Atlantic Richfield Company 3,090 340,973 325,223
Avon Products Incorporated 5,800 291,680 282,025
Bankers Trust New York Corporation 2,035 138,421 161,019
Baxter International Incorporated 4,000 91,053 97,500
BCE Inc. 4,800 168,966 167,400
British Telecommunications 3,825 241,699 272,053
Chemical Banking Corporation 2,900 104,407 116,362
Cigna Corporation 1,600 103,248 100,400
Corestate Financial Corporation 8,450 207,983 220,756
DANA Corporation 2,920 108,014 174,835
Dow Chemical Company 1,200 63,604 68,100
Dupont E. I. de Nemours & Company 5,825 242,138 281,056
Dun & Bradstreet Corporation 2,300 114,574 141,738
Eastman Kodak Company 5,325 253,754 299,531
Entergy Corporation 2,700 98,537 97,200
Exxon Corporation 5,040 305,119 318,150
First Union Corporation 6,485 258,674 267,506
Freeport McMoran Incorporated 12,920 269,753 255,170
GTE Corporation 5,360 151,374 187,600
Grace W. R. & Company 11,900 444,799 483,437
Hubbel Harvey Incorporated 3,100 163,385 167,788
Imperial Chemical Industries 6,600 332,790 311,850
Kmart Corporation 4,100 105,531 88,150
Keycorp 7,190 248,136 254,346
Kimberly Clark Corporation 500 25,758 25,937
-15-<PAGE>
<PAGE> 17
Lincoln National Corporation 7,530 218,006 327,555
Marsh & McLennan Cos Inc 3,000 252,317 243,750
McDermott International Inc. 11,400 272,667 302,100
McGraw Hill Incorporated 5,060 281,632 342,183
Meridian Bancorp Incorporated 6,000 184,677 171,000
Minnesota Mining & Manufacturing 2,670 263,458 290,362
Monsanto Company 1,240 81,183 90,985
NationsBank Corporation 4,955 226,845 242,795
Niagara Mohawk Power Corporation 4,000 82,240 81,000
Occidental Petroleum Corporation 9,750 182,903 165,750
PNC Bank Corporation 8,000 239,812 232,000
PPG Industries Incorporated 1,400 93,278 106,225
Pacific Telesis Group 4,810 228,069 260,942
Penney J C Incorporated 4,290 124,060 225,761
Public Service Enterprises 2,500 75,795 80,000
Royal Dutch Petroleum Company 2,600 235,069 271,375
Saint Paul Companies Incorporated 2,930 197,937 263,334
Simon PPTY Group Incorporated 6,300 140,175 142,538
Sundstrand Corporation 2,900 113,913 121,800
Teledyne Incorporated 6,900 177,150 179,400
Tenneco Incorporated 7,400 297,040 389,425
Texaco Incorporated 3,630 225,630 235,043
Texas Utilities Company 2,400 103,461 103,800
Thomas & Betts Corporation 5,885 321,140 344,273
Times Mirror Company 4,000 121,458 133,500
Timken Company 2,500 81,088 84,063
Transcanada Pipelines LTD 15,500 229,421 238,313
Ultramar Corporation 7,525 113,983 190,947
Union Camp Corporation 3,415 155,788 162,639
United Technologies Corporation 3,475 179,738 215,450
USX Marathon Group 14,095 271,195 232,568
Warner Lambert Company 3,800 252,127 256,500
Witco Corporation 9,700 252,315 309,188
Woolworth Corporation 10,275 277,315 260,728
Xerox Corporation 3,670 271,736 328,006
YPF SCOIEDAD ANONIMA 4,000 79,240 104,000
Zeneca Group PLC 4,233 118,442 157,679
-------- -------------- ---------------
366,513 13,425,915 14,679,930
-------- -------------- ---------------
-------- -------------- ---------------
GRAND TOTAL 395,638 $ 14,798,750 $ 16,132,405
-------- -------------- ---------------
-------- -------------- ---------------
<FN>
* See also Schedule 9.
(1) Exceeds 5% of net assets.
</TABLE>
-16-<PAGE>
<PAGE> 18
<TABLE>
<CAPTION>
Schedule 8a - Investments *
-------------------------
Diversified Fund
-------------------------
Security - December 31, 1992 Shares Cost Market Value
- - -------- --------- -------------- ---------------
<S> <C> <C> <C>
Preferred stock
Delta Airlines 2,925 $ 146,250 $ 154,659
Freeport-McMoran Incorporated 7,900 202,699 225,150
-------- -------------- --------------
10,825 348,949 379,809
-------- -------------- --------------
Common stock
American Brands Incorporated 3,555 137,663 143,978
American Express Company 5,360 119,353 133,330
American General Corporation 4,385 215,353 249,945
American Home Products Corp. 3,170 124,481 213,975
Amoco Corporation 3,510 178,071 171,112
AON Corporation 3,970 172,087 214,380
Armstrong World Industries 3,000 86,952 95,625
Atlantic Richfield Company 1,190 140,604 136,552
B.A.T. Industries Limited 9,750 140,211 143,813
Bankers Trust New York Corp. 1,935 123,819 132,547
Bell Atlantic Corporation 1,950 92,249 99,938
Bowater Incorporated 1,500 38,340 36,187
Bristol Myers Squibb Company 5,070 400,170 342,225
British Telecommunications Plc 2,925 185,883 179,522
Burlington Northern Incorporated 1,900 70,342 82,650
Cigna Corporation 100 5,293 5,863
Chemical Banking Corporation 3,900 140,410 150,637
Comerica Incorporated 2,630 146,809 168,320
Continental Corporation 5,700 152,514 153,188
Corestates Financial Corp. 2,825 125,713 161,378
Dana Corporation 5,920 190,798 278,240
Deere & Company 2,100 101,341 91,875
Dow Chemical Company 2,900 159,006 166,025
Dresser Industries Incorporated 10,775 200,120 193,950
Du Pont E. I. de Nemours & Company 6,725 279,550 316,916
Dun & Bradstreet Corporation 4,875 238,137 281,531
Eastman Kodak Company 6,725 282,580 272,363
Exxon Corporation 2,340 135,798 143,032
Federal Paper Board Inc. 2,700 72,034 66,488
First Union Corporation 4,485 164,396 195,658
Ford Motor Company Delaware 5,680 223,802 243,530
Freeport-McMoran Incorporated 10,920 230,633 189,735
GTE Corporation 5,360 151,374 185,590
General Electric Company 3,200 240,778 273,600
Goodrich B F Company 3,485 164,458 170,329
Grace W R & Company 3,900 140,260 156,975
Hong Kong Telec ADR 1,755 58,678 64,716
Integra Financial Corporation 4,000 152,567 166,500
Kmart Corporation 9,000 237,665 220,500
-17-<PAGE>
<PAGE> 19
Keycorp 4,190 131,793 161,839
Lincoln National Corporation 2,615 118,969 193,510
Maytag Corporation 4,600 65,568 68,425
McDermott International Inc. 12,700 300,152 293,687
McGraw Hill Incorporated 5,360 288,990 328,970
Minnesota Mining & Manufacturing 3,120 291,289 313,950
Monsanto Company 2,340 153,201 134,843
National City Corporation 4,070 129,316 201,974
National Medical Enterprises Inc. 4,300 54,257 53,212
Nationsbank Corp. 5,555 251,045 285,388
Nynex Corporation 1,755 142,388 147,201
Occidental Petroleum Corporation 9,750 181,839 165,750
PNC Financial Corporation 5,950 147,957 169,575
PPG Industries Incorporated 170 10,145 11,199
Pacific Telesis Group 3,510 146,062 155,756
Penney J C Incorporated 4,095 218,533 318,386
Public SVC Enterprises Group, Inc. 5,000 149,810 154,375
Purolator Products Company 11,500 174,375 184,000
Royal Dutch Petroleum Company 1,500 131,715 121,500
Saint Paul Companies Incorporated 2,730 179,789 210,210
Sears Roebuck & Company 7,580 267,711 344,890
Society Corp. 2,435 139,104 156,449
Sonat Incorporated 3,410 145,898 164,106
Southtrust Corp. 1,100 25,992 27,775
Spring Corporation 3,000 76,262 76,500
Stanley Works 1,950 71,292 82,875
TRW Incorporated 2,800 148,145 161,000
Taubman Centers Incorporated 6,700 73,700 77,888
Tenneco Incorporated 4,700 163,919 190,937
Texaco Incorporated 2,730 166,466 163,118
Texas Utilities Company 3,705 149,349 157,462
Thomas & Betts Corporation 5,085 274,692 333,068
Times Mirror Company 2,500 75,921 78,125
Transamerica Corporation 4,190 174,136 201,120
USX-Marathon Group 12,095 248,323 208,639
Ultramar Corporation 10,725 162,455 202,434
Union Camp Corporation 1,415 68,144 65,267
United Technologies Corporation 4,875 256,029 234,609
Warner Lambert Company 2,400 155,094 165,900
Weyerhaeuser Company 6,240 206,301 230,100
Williams Companies 1,910 64,100 74,967
Woolworth Corporation 8,775 239,350 277,509
Xerox Corporation 2,670 190,004 211,598
-------- -------------- --------------
362,970 13,029,872 14,252,804
-------- -------------- --------------
373,795 $ 13,378,821 $ 14,632,613
-------- --------------- ----------------
-------- --------------- ----------------
<FN>
* See also Schedule 9.
</TABLE>
-18-<PAGE>
<PAGE> 20
<TABLE>
<CAPTION>
Schedule 9 - Investments
------------------------
Short Term Investments
----------------------
December 31, 1993
Texas Commerce Bank December 31, 1992
Short Term Money Ameritrust Cash
Market Group Fund Management Fund
---------------------- ----------------------
<S> <C> <C>
Coastal Common Stock Fund $ 995,069 $ 71,240
Diversified Fund 347,023 153,525
Interest Income Fund 80,709 114
Coastal Preferred Stock Fund 2 112
Valero Stock Fund 8,565 18,924
Fixed Income Fund 4,794 291
International Stock Fund 3 269
----------- -----------
Total $ 1,436,165 $ 244,475
----------- -----------
----------- -----------
</TABLE>
<TABLE>
<CAPTION>
Schedule 10 - Statement of Changes
in Net Assets Available For Plan
Benefits by Fund
------------------------------------------
Beginning of Year Change 1993 End of Year
----------------- ----------- -----------
<S> <C> <C> <C>
Coastal Common Stock Fund $ 191,988,194 $ 46,377,473 $
238,365,667
Diversified Fund 14,801,948 1,539,386 16,341,334
Interest Income Fund 20,625,472 1,113,607 21,739,079
Coastal Preferred Stock Fund 136,493 (44,138) 92,355
Valero Stock Fund 1,627,441 (420,729) 1,206,712
International Stock Fund 14,697 26,266 40,963
Coastal Class A Stock Fund 859,090 (13,374) 845,716
Fixed Income Fund 64,545,848 (360,968) 64,184,880
-------------- -------------- --------------
Total $ 294,599,183 $ 48,217,523 $ 342,816,706
-------------- -------------- --------------
-------------- -------------- --------------
</TABLE>
-19-<PAGE>
<PAGE> 21
<TABLE>
<CAPTION>
Item 27a - Schedule of Assets Held For Investment Purposes
Employer Identification No.: 74-1734212; Plan No. 003
Form 5500: Year Ended December 31, 1993
(c)
(b) Description of Investment
including Maturity Date, Rate (d) (e)
(a) Identity of Issue, Borrower, of Interest, Collateral, Par Cost of
Market
Lessor or Similar Party or Maturity Value Acquisition Value
- - ------ ----------------------------------- ------------------------------------- ------------- -------------
<S> <C> <C> <C> <C>
* The Coastal Corporation (1) 8,501,355 shares common stock $
144,927,029 $ 240,082,133
31,059 shares Class A common stock (2) 347,871
874,486
911 shares $1.83 convertible preferred
stock, Series B 25,847 92,353
Valero Energy Corporation 58,366 shares common stock 295,785
1,239,579
Challenger International, Ltd. 12,910 shares common stock 4,373
41,876
Pacific Mutual Life Insurance
Company (1) Guaranteed Investment contract 17,212,573
17,212,573
Travelers Insurance Co. (1) Guaranteed Investment contract 42,427,936
42,427,936
Provident Life & Accident Insurance
Co. (1) Guaranteed Investment contract 18,781,517
18,781,517
Prudential Insurance Co. of America Guaranteed Investment contract 8,077,756
8,077,756
Texas Commerce Bank Short Term Money
Market Group Fund Money Market 1,436,165
1,436,165
See Schedule 8 for list of See Schedule 8 for list of
publicly traded companies. Investments 14,798,750
16,132,405
------------- -------------
$ 248,335,602 $ 346,398,779
------------- -------------
------------- -------------
<FN>
* Party-In-Interest.
(1) Exceeds 5% of net assets.
(2) Class A Common Stock may be distributed to employee participants, but
cannot be transferred to other individuals or organizations.
</TABLE>
-20-<PAGE>
<PAGE> 22
<TABLE>
<CAPTION> Item 27d - Schedule of Reportable Transactions
Series Transactions, When Aggregated, Involving an Amount in Excess of
Five Percent of the Current Value of Plan Assets
Employer Identification No.: 74-1734212; Plan No. 003
Form 5500: Year Ended December 31, 1993
(b)
Description of Asset
(a) (including interest (c) (d) (e) (f) (g)
Identity of rate and maturity Purchase Selling Cost of Current
Net Gain
Party Involved in case of loan) Price Price Asset Value Or
(Loss)
- - ------------------------- ----------------------------- ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
<C>
* The Coastal Corporation Common Stock:
Purchases (1,101,994 shares) $29,233,045 $31,131,330
Sales & distributions
(1,105,275 shares) $29,866,438 $26,650,359 $
3,216,079
<FN>
* Party-In-Interest
</TABLE>
-21-<PAGE>
<PAGE> 23
SIGNATURES
The Plan. Pursuant to the requirements of the Securities Exchange Act
of 1934, the Administrative Committee has duly caused this annual report to
be signed on its behalf by the undersigned hereunto duly authorized.
THE COASTAL CORPORATION
THRIFT PLAN
Date: June 28, 1994 By: AUSTIN M. O'TOOLE
--------------------------------------
Austin M. O'Toole
Member of the Administrative Committee
-22-<PAGE>
<PAGE> 24
