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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 33-21095
THE COASTAL CORPORATION
STOCK PURCHASE 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)
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INDEPENDENT AUDITORS' REPORT
Administrator
The Coastal Corporation Stock Purchase Plan
Houston, Texas
We have audited the accompanying statements of net assets available for Plan
benefits of The Coastal Corporation Stock Purchase Plan (the "Plan") as of
December 31, 1993 and 1992, and the related statements of changes in net
assets available for Plan benefits for each of the three years in the period
ended December 31, 1993. Our audits also included the financial statement
schedule on page 5. These financial statements and financial statement
schedule are the responsibility of the Plan's management. Our responsibility
is to express an opinion on these financial statements and financial
statement schedule 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, net assets available for Plan benefits as of December 31, 1993 and
1992, and the changes in net assets available for Plan benefits for each of
the three years in the period ended December 31, 1993, in conformity with
generally accepted accounting principles. Also, in our opinion, such
financial statement schedule, when considered in relation to the basic
financial statements taken as a whole, presents fairly in all material
respects the information set forth therein.
DELOITTE & TOUCHE
Houston, Texas
March 15, 1994<PAGE>
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THE COASTAL CORPORATION STOCK PURCHASE PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
<TABLE>
<CAPTION>
December 31,
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1993 1992
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<S> <C> <C>
ASSETS:
Investments, at market:
Securities of The Coastal Corporation:
Common stock (cost: 1993-$9,570,050; 1992-$9,048,439) . . . . . . . $8,049,669 $7,145,549
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Receivables:
Dividends. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28,551 27,274
Receivable from Lehman Brothers, Inc.. . . . . . . . . . . . . . . . . 589 238,923
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Total Receivables. . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,140 266,197
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Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 713 222,344
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TOTAL ASSETS. . . . . . . . . . . . . . . . . . . . . . . . . . . 8,079,522 7,634,090
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LIABILITIES:
Payable to Lehman Brothers, Inc. . . . . . . . . . . . . . . . . . . . . - 221,653
Accrued withdrawals. . . . . . . . . . . . . . . . . . . . . . . . . . . - 969
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TOTAL LIABILITIES . . . . . . . . . . . . . . . . . . . . . . . . - 222,622
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NET ASSETS AVAILABLE FOR PLAN BENEFITS . . . . . . . . . . . . . . . . . $8,079,522 $7,411,468
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/TABLE
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THE COASTAL CORPORATION STOCK PURCHASE PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
<TABLE>
<CAPTION>
For the Years Ended
December 31,
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1993 1992 1991
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<S> <C> <C> <C>
ADDITIONS:
Investment income:
Interest and dividend income . . . . . . . . . . . . . . . . . . $ 119,706 $ 104,634 $ 76,275
Net appreciation (depreciation) in fair value of investments . . 1,099,230 (239,168) (1,737,097)
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1,218,936 (134,534) (1,660,822)
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Contributions:
Employee contributions . . . . . . . . . . . . . . . . . . . . . 1,715,899 1,764,765 1,908,391
Employer contributions . . . . . . . . . . . . . . . . . . . . . 4,328 1,059,074 1,011,248
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1,720,227 2,823,839 2,919,639
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TOTAL ADDITIONS . . . . . . . . . . . . . . . . . . . . . . . 2,939,163 2,689,305 1,258,817
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DEDUCTIONS:
Withdrawal payments. . . . . . . . . . . . . . . . . . . . . . . . 2,271,109 1,428,615 1,655,738
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Increase (decrease) in net assets available for plan benefits. . . 668,054 1,260,690 (396,921)
NET ASSETS, JANUARY 1. . . . . . . . . . . . . . . . . . . . . . . 7,411,468 6,150,778 6,547,699
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NET ASSETS, DECEMBER 31. . . . . . . . . . . . . . . . . . . . . . $8,079,522 $7,411,468 $6,150,778
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/TABLE
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THE COASTAL CORPORATION STOCK PURCHASE PLAN
NOTES TO FINANCIAL STATEMENTS
1. Description of the Stock Purchase Plan
The Coastal Corporation Stock Purchase Plan (the "Plan") provides
participants with a convenient and economical way to purchase shares of
Coastal's Common Stock, par value $0.33-1/3 per share ("Common Stock"),
through payroll deductions or optional cash payments. All employees and
members of the Board of Directors of The Coastal Corporation (the "Company")
and its subsidiaries are eligible to participate in the Plan. In addition,
the Company or any subsidiary may submit optional payments (which may be in
the form of shares of Common Stock) for the account of any eligible person.
All participants are furnished a Plan prospectus which may be updated by
supplements from time to time.
2. Summary of Significant Accounting Policies
Accounting Basis
The financial statements are prepared on the accrual basis of
accounting and participants' account allocations are determined on the cash
basis. Certain reclassifications of prior years' financial statements have
been made to conform to current year reporting.
Investment Valuation
Common Stock investments are stated at quoted market prices at year
end.
Taxes
The Plan is not a deferred compensation arrangement and, therefore,
does not have to meet the requirements for qualifications as specified in
401(a) of the Internal Revenue Code of 1986, as amended, nor is it subject
to any of the provisions of the Employee Retirement Income Security Act of
1974, as amended.
3. Investments
The majority of the Plan's assets are held for investment by the
brokerage firm Lehman Brothers, Inc.
4. Plan Termination
Although it has not expressed any intent to do so, the Company reserves
the right to suspend, modify or terminate the Plan at any time. All
participants shall at all times be fully vested in their account balances.
5. Administration Costs
All costs of administering the Plan are paid by the Company.
Participants of the Plan are required to pay broker commissions.<PAGE>
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THE COASTAL CORPORATION STOCK PURCHASE PLAN
SCHEDULE I - INVESTMENTS
COASTAL COMMON STOCK
<TABLE>
<CAPTION>
Number Market
Security of Shares Cost Value
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<S> <C> <C> <C>
December 31, 1993. . . . . . . . . . . . . . . . . . . . . . 284,944 $9,570,050 $8,049,669
December 31, 1992. . . . . . . . . . . . . . . . . . . . . . 299,290 $9,048,439 $7,145,549
/TABLE
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SIGNATURES
The Plan. Pursuant to the requirements of the Securities Exchange
Act of 1934, The Coastal Corporation, as Administrator, has duly caused this
Annual Report to be signed on its behalf by the undersigned hereunto duly
authorized.
THE COASTAL CORPORATION, AS
ADMINISTRATOR OF
THE COASTAL CORPORATION
STOCK PURCHASE PLAN
Date: March 24, 1994 By: AUSTIN M. O'TOOLE
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Austin M. O'Toole
Senior Vice President and Secretary
