<PAGE> 1
File Number 70-
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM U-1
APPLICATION-DECLARATION UNDER THE
PUBLIC UTILITY HOLDING COMPANY ACT OF 1935
By
CONSOLIDATED NATURAL GAS COMPANY
CNG Tower
625 Liberty Avenue
Pittsburgh, Pennsylvania 15222-3199
and its subsidiary companies:
CNG COAL COMPANY CONSOLIDATED NATURAL GAS
CNG ENERGY SERVICES CORPORATION SERVICE COMPANY, INC.
CNG PRODUCING COMPANY HOPE GAS, INC.
and its subsidiary company THE EAST OHIO GAS COMPANY
CNG PIPELINE COMPANY THE PEOPLES NATURAL GAS COMPANY
CNG RESEARCH COMPANY VIRGINIA NATURAL GAS, INC.
CNG STORAGE SERVICE COMPANY WEST OHIO GAS COMPANY
CNG TRANSMISSION CORPORATION
Consolidated Natural Gas Company,
a registered holding company,
is the parent of the other parties.
Names and addresses of agents for service:
STEPHEN E. WILLIAMS, Senior Vice N. F. CHANDLER, General Attorney
President and General Counsel Consolidated Natural Gas Service
Consolidated Natural Gas Company Company, Inc.
CNG Research Company CNG Tower
CNG Tower 625 Liberty Avenue
625 Liberty Avenue Pittsburgh, PA 15222-3199
Pittsburgh, PA 15222-3199
CORY, MEREDITH, WITTER, ROUSH &
CHENEY
Counsel for West Ohio Gas
H. E. BROWN, Vice President and Company
General Counsel P.O. Box 1217
CNG Transmission Corporation Lima, OH 45802-1217
CNG Storage Service Company
445 West Main Street W. P. BOSWELL, Vice President,
Clarksburg, WV 26301 Secretary and General Counsel
The Peoples Natural Gas Company
CNG Tower
625 Liberty Avenue
Pittsburgh, PA 15222-3199
<PAGE> 2
File Number 70-
Names and addresses of agents for service: (Continued)
D. M. JOHNS, JR., Secretary and G. A. TAAFFE, JR., General Counsel
General Counsel The East Ohio Gas Company
CNG Producing Company 1717 East Ninth Street
CNG Coal Company Cleveland, OH 44114-0759
CNG Pipeline Company
CNG Tower D. A. FICKENSCHER, Vice President,
1450 Poydras Street Secretary and General Counsel
New Orleans, LA 70112-6000 Virginia Natural Gas, Inc.
5100 East Virginia Beach
J. A. CRITTENDEN, Secretary Boulevard
CNG Energy Services Corporation Norfolk, VA 23502-3488
One Park Ridge Center
P. O. Box 15746
Pittsburgh, PA 15244-0746
MARC HALBRITTER, Secretary and
General Counsel
Hope Gas, Inc.
P.O. Box 2868
Clarksburg, WV 26301-2868
<PAGE> 3
File Number 70-
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM U-1
APPLICATION-DECLARATION UNDER THE
PUBLIC UTILITY HOLDING COMPANY ACT OF 1935
Item 1. Description of Proposed Transaction
___________________________________
(a) Furnish a reasonably detailed and precise description of the
proposed transaction, including a statement of the reasons why it is
desired to consummate the transaction and the anticipated effect thereof.
If the transaction is part of a general program, describe the program and
its relation to the proposed transaction.
Consolidated Natural Gas Company (the "Company" or
"Consolidated") is a public utility holding company registered as such
under the Public Utility Holding Company Act of 1935 (the "Act"). It is
engaged solely in the business of owning and holding all of the outstanding
securities of sixteen directly owned subsidiary companies (individually
"Subsidiary," collectively "Subsidiaries") most of which are in the natural
gas business, including a service company, research company, marketing
company and coal company. The Subsidiaries are principally engaged in
natural gas exploration, production, purchasing, gathering, transmission,
storage, distribution, marketing and by-product operations. Consolidated
and its Subsidiaries are referred to herein as the "Consolidated System."
This Application-Declaration contains the annual request of
Consolidated and its Subsidiaries for authorization of the financing
program of the Consolidated System for the period July 1, 1995, through
June 30, 1996. The request covers both the short-term external financing
by Consolidated and the intra-system short-term and long-term financing
between parent and Subsidiary companies, except as a Rule 52 exemption is
claimed. The financing program contemplates the following activities.
<PAGE> 4
I. Estimated Expenditures and Funding
________________________________________
The projected cash flows and financing requirements for Consolidated
for 1995 and 1996 are set forth in Exhibit G. Projected capital
expenditures of the Subsidiaries for 1995 and 1996 of $444,626,000 and
$470,643,000, respectively, are set forth in detail in Exhibit H.
Temporary funding of these expenditures will be obtained from
borrowings of up to $300,000,000 under a restructured credit agreement
among Consolidated and several banks, and from other short-term financing
arrangements, all of the authorizations for which are being requested
herein. Ultimately, the funds required for the capital expenditures will
be obtained from internal cash generation and, to the extent necessary,
from the sale of debentures or common stock. Currently, Consolidated is
authorized to sell up to an aggregate of $350,000,000 of debt securities,
authorized under Commission order dated March 5, 1995, HCAR No. 26245, File
No. 70-8107 (expiring June 30, 1996). Consolidated is also authorized by
various currently effective Commission orders to issue and sell its Common
Stock to employee benefit plans and a dividend reinvestment plan.
<PAGE> 5
II. Authorizations Requested
_______________________________
A. Consolidated
____________
Authorization is requested pursuant to this
Application-Declaration for Consolidated's short-term financing as follows:
(1) The sale of commercial paper by Consolidated, in domestic and/or
European markets in a principal amount not exceeding $800,000,000
outstanding at any one time;
(2) Back-up bank lines of credit in a principal amount not exceeding
$600,000,000 to support sale of commercial paper. Such lines
would be utilized if the sale of commercial paper becomes
impractical due to market conditions or otherwise. The credit
rating agencies require back-up of 100%. The additional
$200,000,000 of back-up will be provided by unused commitments
under the credit agreement referred to in (4) below.
(3) A bank line in a principal amount not exceeding $150,000,000 for
a period of up to 364 days to possibly be used to finance
acquisitions of natural gas reserves and other assets during a
temporary "black-out" period during which Consolidated may not be
able to issue most types of long-term debt due to a restrictive
indenture covenant.
(4) A restructured credit agreement allowing borrowings during the
"black-out" period of up to $300,000,000 for a term not exceeding
364 days.
<PAGE> 6
B. Subsidiary Companies
____________________
Authorization is requested for financing of the Subsidiaries by
Consolidated of an aggregate not in excess of $1,225,000,000 in the form of
open account advances, long-term loans and/or capital stock purchases. In
addition, authorization is requested herein for short-term and/or long-term
financing of CNG Pipeline Company ("CNG Pipeline") by CNG Producing Company
("CNG Producing") in an amount not exceeding $1,000,000 for capital
requirements of CNG Pipeline as explained in detail in III. C. below.
III. Detailed Description of Proposed Financing Transactions
___________________________________________________________
A detailed description of the transactions proposed in this
Application-Declaration is as follows.
A. Consolidated External Financing
___________________________________
1. Consolidated to Issue up to
$800,000,000 of Commercial Paper
________________________________
To provide financing for general corporate purposes, including
financing gas storage inventories, other working capital requirements and
construction spending until long-term financing can be obtained,
Consolidated proposes to sell commercial paper in an aggregate principal
amount not to exceed $800,000,000 outstanding at any one time, from time to
time, through June 30, 1996. Such commercial paper may be domestic
commercial paper ("DCP") and/or Euro-commercial paper ("ECP") as described
below.
<PAGE> 7
Historically, the cost of commercial paper borrowings for
companies with credit comparable to Consolidated's has been less than
commercial bank prime rates in New York City. Consolidated desires the
flexibility of using commercial paper borrowings because of the low
interest costs obtainable. Commercial paper to be sold by Consolidated, in
accordance with the customary practice in the market, will not be payable
prior to maturity. Consolidated proposes to sell DCP or ECP, whichever
provides the lower cost in a given transaction, but only so long as the
discount rate or the effective interest cost on the date of sale does not
exceed the prime rate of interest from a commercial bank.
(a) Domestic Commercial Paper
_________________________
DCP will have varying maturities of not more than 270 days after
the date of issue and will be sold directly to Merrill Lynch Money Market,
Inc. ("Merrill"), a dealer in commercial paper, at a discount not to
exceed the discount rate per annum prevailing at the date of issuance for
commercial paper of comparable quality and maturities sold to commercial
paper dealers. Consolidated may sell DCP to other commercial paper dealers
("Other Dealers") under arrangements similar to those made with Merrill.
No commission or fee will be payable in connection with the sale
of such DCP notes. Merrill or Other Dealers as principals, will reoffer
such notes at a discount in such a manner as not to constitute a public
offering. Such notes will be reoffered to corporate and institutional
investors, including commercial banks, insurance companies, pension funds,
investment trusts, foundations, colleges and universities, finance
companies and nonfinancial corporations.
<PAGE> 8
(b) Euro - Commercial Paper
________________________
The ECP would be sold to Chase Investment Bank Limited and
additional dealers Consolidated may at its option add from time to time, or
any combination of these ECP dealers (collectively, the "Dealers").
Consolidated may terminate the appointment of any Dealer upon ten days
written notice to such Dealer.
ECP will have varying maturities from 7 days to 183 days and will
be sold in bearer form in denominations of $500,000 or integral multiples
thereof, at an effective rate then prevailing for ECP of comparable quality
and maturities.
No commission or fee will be payable to the Dealers in connection
with the sale of ECP. It is expected that the Dealers will reoffer the ECP
at a discount to corporate, institutional and individual investors located
outside of the United States. Such reoffers are to be to non-United
States persons in a manner such as to not constitute an offering or sale
subject to the securities laws of the United States.
The Chase Manhattan Bank, N.A. London Branch ("Chase London")
will be the issuing and principal paying agent in connection with the
issuance and payment of the ECP. Chase London will be paid an
administration fee of $1,000 per annum for each Dealer other than Chase
Investment Bank Limited.
<PAGE> 9
2. Short-Term Bank Borrowings by Consolidated to
the Extent Impracticable to Issue Commercial Paper
__________________________________________________
Back-up bank lines of credit for 100% of the outstanding
commercial paper are required by the credit rating agencies. To satisfy
this requirement Consolidated proposes to establish back-up bank lines in
an aggregate principal amount not to exceed $600,000,000. Consolidated
proposes to borrow, repay and reborrow under these lines from time to time
through June 30, 1996, without collateral, to the extent that it becomes
impracticable to sell the aforesaid commercial paper due to market
conditions or otherwise.
The rate of interest associated with loans under these lines will
not exceed the prime commercial rate of interest of the lending bank in
effect on the date of each borrowing. A commitment fee of no more than
one-eighth of one percent (0.125%) of the principal amount of each bank's
commitment may be paid. Closing or related charges with respect to
obtaining such banks lines are not expected to exceed $50,000. Loans under
these lines shall have a maturity date not more than one year from the date
of each borrowing, and with the right of pre-payment in whole or in part of
each borrowing at any time upon not more than three prior business days
written notice and without premium.
<PAGE> 10
There will be no agreements or arrangements requiring
compensating balances with respect to any of Consolidated's bank loans and
lines of credit. Under Company policy, bank deposits are maintained for
normal operating purposes.
The remaining $200,000,000 needed to satisfy the 100% back-up
requirement will be provided by unused commitments under the restructured
$300,000,000 credit agreement.
3. $150,000,000 Revolving Credit Bank Line
__________________________________________
Consolidated proposes to borrow from a bank through June 30, 1996
up to $150,000,000 for a term not exceeding 364 days as it may deem
advisable to finance acquisitions of natural gas reserves or other assets
during a period of time during which it may not be able to sell long-term
debt securities due to its inability to satisfy an interest coverage
requirement for the issue of additional funded debt in the indenture dated
as of May 1, 1971 with Chemical Bank as trustee. Section 6.06(a) of said
indenture requires that the consolidated net income available for interest
and subsidiary preferred stock dividends of the Company and its
subsidiaries for any twelve consecutive monthes within the fifteen calendar
months immediately preceding the date on which additional funded debt is
incurred be not less than two and one-half times the sum of interest
charges and dividend requirements giving effect to the issuance of the
additional securities. Due primarily to a write-down of its gas and oil
producing assets at the end of the first quarter of 1995, it is expected
that the indenture covenant will result in the Company not being able to
issue most types of long-term debt securities during the period July 1,
1995 through March 31, 1996. It is primarily for possible financing of one
<PAGE> 11
or more acquisitions of natural gas reserves or other assets during such
"black out" period that Consolidated desires to obtain the $150,000,000
line of revolving credit.
Consolidated will have the option of borrowing at a fixed
interest rate or a variable interest rate. The fixed rate would not exceed
50 basis points over the London Interbank Offered Rate ("LIBOR"), and the
variable rate would not exceed 32.5 basis points over LIBOR or 47.5 basis
points over the certificate of deposit ("CD") margin rates at
Consolidated's option. A facility fee of not more than 12.5 basis points
per annum payable quarterly on the principal amount of the bank's
commitment may be paid. Closing or related charges with respect to
obtaining such bank line are not expected to exceed $50,000. Loans under
this line shall have a maturity date of not more than 364 days from the
date of each borrowing. There will be no right to pre-pay, and no
agreements or arrangements requiring compensating balances.
4. Restructured $300,000,000 Credit Agreement
_______________________________________________
An existing credit agreement among Consolidated and several banks
was authorized by Commission orders dated March 28, 1991 and September 9,
1992, HCAR Nos. 25283 and 25626, respectively, File No. 70-7827. This
credit agreement, which provides for term loans of up to three years, is
being restructured effective July 1, 1995 in anticipation of the "black-
out" period, and will become a one year facility allowing loans having
terms no greater than 364 days. No borrowings will be made pursuant to the
authorization under File No. 70-7877 subsequent to June 30,1995. The
details of the restructured agreement are as follows.
<PAGE> 12
Consolidated proposes to borrow, from time to time through June
30, 1996, up to an aggregate principal amount of $300 million, pursuant to
a revolving credit agreement ("Credit Agreement") with the Chase Manhattan
Bank and Mellon Bank, N.A. acting for themselves and as agents for certain
other banks. Loans made pursuant to the Credit Agreement will be evidenced
by either a syndicated promissory note ("Syndicated Note") or money market
promissory note ("Money Market Note").
Under the terms of the Credit Agreement the bank loans will be in
the form of revolving credits. Commitments under the Credit Agreement will
commence as of the date thereof and will have a 364 day term. The Credit
Agreement will also provide that Consolidated will have the right at any
time to terminate or reduce the individual commitments of the banks.
Loans made pursuant to the Credit Agreement may, at the option
of Consolidated, be either syndicated loans by a group of the participating
banks, or money market loans made by individual participating banks. Each
loan will be evidenced by either a Syndicated Note or Money Market Note,
respectively.
<PAGE> 13
At the option of Consolidated, the interest rate for the
Syndicated Note will be: (1) the higher of the Prime Rate announced by
Chase Manhattan Bank (National Corporation) as in effect from time-to-time
at its principal office in New York City or the Federal Funds Rate
published by the Federal Reserve Bank of New York plus an increment of one-
half of one percent; (2) the average of LIBOR quoted by the reference banks
specified in the Credit Agreement, divided by one minus the reserve
requirements for such deposits required by the Federal Reserve System, plus
an increment of one-quarter of one percent; or (3) the average of the CD
rate quoted to the reference banks, divided by one minus the reserve
requirements for such deposits required by the Federal Reserve System, plus
an increment of three-eighths of one percent, plus the rate payable to the
Federal Deposit Insurance Corporation for deposit insurance. The interest
rate for Money Market Notes will be such rate as the banks may bid, which
bid will, at the option of Consolidated, be expressed as an all-in rate or
as an increment above or below the average of the LIBOR rates quoted by the
reference banks divided by one minus the reserve requirements for such
deposits required by the Federal Reserve System.
The interest rate for a Syndicated Note based on the Prime Rate
or the Federal Funds Rate will be adjusted to reflect changes in such base
rates as of the date they occur from time-to-time. All other rates are
fixed for the specific time period of the loan.
<PAGE> 14
A fee of not more than 12.5 basis points per annum will be
charged on the revolving credit commitments commencing on the effective
date of the Credit Agreements.
The proceeds of Consolidated's borrowings under the Credit
Agreement will be used to provide short-term financing to its subsidiary
companies for working capital requirements and to temporarily finance
capital expenditures. The Credit Agreement is also available as commercial
paper backup.
B. Consolidated Financing of Subsidiary Companies
___________________________________________________
Consolidated proposes to provide financing to each of the
Subsidiaries listed below, from time to time through June 30, 1996, not to
exceed in each respective case the following amounts at any one time:
CNG Transmission Corporation $ 100,000,000
The East Ohio Gas Company 265,000,000
The Peoples Natural Gas Company 100,000,000
Virginia Natural Gas, Inc. 100,000,000
Hope Gas, Inc. 15,000,000
CNG Energy Services Corporation 300,000,000
CNG Storage Service Company 1,000,000
West Ohio Gas Company 25,000,000
CNG Service Company 15,000,000
CNG Producing Company 300,000,000
CNG Coal Company 3,000,000
CNG Research Company 1,000,000
______________
Total $1,225,000,000
<PAGE> 15
This financing will be in the form of open account advances,
long-term loans and/or capital stock purchases, as requested by the
Treasurer of each Subsidiary. Open account advances will provide funds for
general corporate purposes, including gas storage inventories, other
working capital requirements and temporarily for capital expenditures until
long-term financing is obtained and/or cash is generated internally.
Consolidated's long-term loans to, and purchase of capital stock from,
Subsidiaries will provide financing for capital expenditures. Consolidated
cannot ascertain with certitude at this time how much Subsidiary financing
will be in the form of long-term loans. Based on current forecasts,
however, it is estimated that aggregate long-term debt financing could
total approximately $88,100,000 for the 1995-1996 financing year.
Consolidated intends to continue to follow its policy of maintaining a
long-term debt to total capitalization ratio in CNG Transmission
Corporation and CNG Producing, its major non-utility Subsidiaries, that
approximates the long-term debt to total capitalization ratio of
Consolidated. As of December 31, 1994, the long-term debt to total
capitalization of Consolidated, CNG Transmission Corporation and CNG
Producing was 34.5%, 34.5%, and 28.9%, respectively.
<PAGE> 16
Open account advances may be made, repaid and remade on a
revolving basis, and all such open account advances will be repaid on or
before a date not more than one year from the date of the first advance to
such Subsidiary with interest at the same effective rate of interest as
Consolidated's weighted average effective rate of commercial paper and/or
revolving credit borrowings. If no such borrowings are outstanding then
the interest rate shall be predicated on the Federal Funds' effective rate
of interest as quoted daily by the Federal Reserve Bank of New York. Such
advances will be made through the CNG System money pool authorized under a
Commission order dated June 12, 1986, HCAR No. 24128, File No. 70-7258.
Long-term loans by Consolidated to Subsidiaries will be evidenced
by book entries made pursuant to letter agreements between the parties.
Long-term loans shall mature over a period of time to be determined by the
officers of Consolidated, not in excess of 30 years, with the interest rate
predicated on and substantially equal to Consolidated's cost of funds for
comparable borrowings by the parent. In the event Consolidated has not had
recent comparable borrowings, the rates will be tied to the Salomon
Brothers indicative rate for comparable debt issuances published in Salomon
Brothers, Inc. Bond Market Roundup, or to a comparable rate index, on the
date nearest to the time of takedown.
<PAGE> 17
Stock will be purchased from the Subsidiaries at the par value
thereof, except that shares of no-par stock of Virginia Natural Gas, Inc.
will be purchased at book value and shares of CNG Energy Services
Corporation may be purchased at greater than par up to a maximum of $10,000
per share. Any stock transactions between Consolidated and its utility
Subsidiaries, The East Ohio Gas Company, Hope Gas, Inc., The Peoples
Natural Gas Company, Virginia Natural Gas, Inc., and West Ohio Gas Company
would occur under an exemption pursuant to Rule 52 under the Act and are
not part of the authorization requested herein.
C. CNG Producing Financing of CNG Pipeline
___________________________________________
CNG Producing Company proposes from time to time through June 30,
1996, to provide to CNG Pipeline Company up to an aggregate of $1,000,000
of financing through short-term loans in the form of open account advances
and/or long-term loans evidenced by non-negotiable notes (documented by
book entry only) and/or the purchase of up to 10,000 shares of common
stock, $100 par value, of CNG Pipeline. The proceeds of such financing
would be used by CNG Pipeline Company to cover its financial requirements
related to its interest in the High Island Pipeline System. The open
account advances and long-term loans will bear interest at rates equal to
the cost of money to CNG Producing Company through its borrowings from
Consolidated.
<PAGE> 18
D. Changes in Capital Stock of Subsidiaries
____________________________________________
The portion of an individual Subsidiary's aggregate financing
requested herein to be effected through the sale of common stock to
Consolidated cannot be ascertained with certitude at this time, and may in
some cases exceed the currently authorized capital stock of such
Subsidiary. As needed to accommodate such proposed transactions and to
provide for future issues, request is made for authority to increase any
such Subsidiary's authorized common stock by up to a number of shares not
exceeding that calculated by dividing the aggregate financing requested for
such Subsidiary, as indicated in the table under III.B., by the par value
(approximate book value in the case of Virginia Natural Gas, Inc.) of such
Subsidiary's common stock, rounded up to the nearest hundred.
The following chart sets forth for each Subsidiary, for which
financing is requested herein, the par value per share and the maximum
increase in authorized shares permitted under the formula in the
immediately preceding paragraph.
<PAGE> 19
Maximum Increase
Par Value in Authorized Shares
Subsidiary Per Share under Formula
_______________________________ _________ ____________________
CNG Transmission Corporation $10,000 10,000
The East Ohio Gas Company 50 5,300,000
The People Natural Gas Company 100 1,000,000
Virginia Natural Gas, Inc. (1) 2,503
Hope Gas, Inc. 100 150,000
CNG Energy Services Company 1 300,000,000
CNG Storage Service Company 10,000 100
West Ohio Gas Company 10,000 2,500
CNG Service Company 100 150,000
CNG Producing Company 10,000 30,000
CNG Coal Company 10,000 300
CNG Research Company 10,000 100
___________
(1) No par stock. Maximum increase calculated on basis of issuance for
book
value of $39,950.27 per share at December 31, 1994.
<PAGE> 20
E. Utility Company Financings
_______________________________
The following table indicates the jurisdiction of various state
utility commissions over the financings proposed for the Consolidated
utility Subsidiaries:
State
Utility Commission Transaction
_______ __________ ___________
The East Ohio Gas Company Public Utilities Long-term borrowings
and West Ohio Gas Company Commission of Ohio and capital stock
sales by the utilities
The Peoples Natural Gas Pennsylvania Public Long-term borrowings
Company Utility Commission and capital stock
sales by the utility
Virginia Natural Gas, Inc. Virginia State Short-term and long-
Corporation term borrowing and
Commission capital stock
transactions between
the utility and
Consolidated
Hope Gas, Inc. Public Service Short-term and long-
Commission of West term borrowings and
Virginia capital stock sales
by the utility
<PAGE> 21
Since Consolidated is an "affiliated interest" in relation to
Virginia Natural Gas, Inc. ("VNG") within the meaning of Chapter 4, Title
56 of the Code of Virginia ("Affiliate Act"), it is required to join in
VNG's application to the Virginia State Corporation Commission ("VSCC") for
approval under the Affiliate's Act of all financings between VNG and
Consolidated. The Affiliate's Act, therefore, may be deemed to be a State
law as may apply in respect to the acquisition by Consolidated of interests
in debt of VNG within the meaning of Section 10(f) of the Act. By order
dated January 13, 1995 of the VSCC, VNG was authorized to (1) engage in
open account advance financing through the CNG System money pool, up to a
maximum outstanding of $100,000,000 for the period April 1, 1995 through
June 30, 1997; (2) issue and sell up to $24,900,000 in long-term notes to
Consolidated on or before June 30, 1997; and (3) issue and sell up to
$53,400,000 of its common stock to CNG on or before June 30, 1997.
Consequently, request is hereby made for retention of jurisdiction over
Consolidated's acquisition of interests in, and VNG's issuance of long-term
debt in excess of $24,900,000.
All other financings of utility Subsidiaries by Consolidated will
be pursuant to either (i) the conditions of Rule 24(c)(2) under the Act,
(ii) a type not needing prior state commission approval, or (iii) Rule 52.
Copies of all applications to, and orders from, state commissions in
proceedings to which Rule 24(c)(2) applies will be filed as exhibits to the
appropriate Rule 24 certificate of notification filed pursuant to this
proceeding.
<PAGE> 22
F. Acquisition of Stock by Issuer
__________________________________
In order to maintain its debt to equity ratio in semblence to that
of Consolidated, request is made for CNG Producing to purchase at par,
during the 1995 - 1996 financing year, up to 10,000 shares of its common
stock, $10,000 par value per share, from Consolidated.
IV. Filing of Certificates of Notification
__________________________________________
Consolidated proposes to file a Certificate of Notification
within forty-five (45) days after the end of each calendar quarter,
covering those transactions for which authority will have been granted by
the Commission. Such certificates will show the dates and amounts involved
in each type of transaction and the total amounts thereof at the end of
such quarter.
In addition, the certificate will include, with respect to the
issue and sale of commercial paper, categorized by DCP and ECP, the maximum
amount outstanding at any one time and the total amount outstanding at the
end of such quarter.
Forms U-6B-2 providing information on Rule 52 transactions
occurring as part of the Consolidated intrasystem financing program will
also be filed with such quarterly certificates.
(b) Describe briefly, and where practicable state the approximate
amount of, any material interest in the proposed transaction, direct or
indirect, of any associate company or affiliate of the applicant or
declarant or any affiliate of any such associate company.
None, except as set forth in Item 1.(a) above.
<PAGE> 23
(c) If the proposed transaction involves the acquisition of
securities not listed by a registered holding company or a subsidiary
thereof, describe briefly the business and property, present or proposed,
of the issuer of such securities.
Inapplicable.
(d) If the proposed transaction involves the acquisition or
disposition of assets, describe briefly such assets setting forth original
cost, vendor's book cost (including the basis of determination) and
applicable valuation and qualifying reserves.
Inapplicable.
Item 2. Fees, Commissions and Expenses
______________________________
(a) State (1) the fees, commissions and expenses paid or incurred, or
to be paid or incurred, directly or indirectly, in connection with the
proposed transaction by the applicant or declarant or any associate company
thereof, and (2) if the proposed transaction involves the sale of
securities at competitive bidding, the fees and expenses to be paid to
counsel selected by applicant or declarant to act for the successful
bidder.
It is estimated that the expenses to be incurred in connection
with the proposed transactions will not exceed $115,000, consisting of
$100,000 in closing costs on bank lines, $12,000 payable to Consolidated
Natural Gas Service Company, Inc. ("CNG Service Company"), a subsidiary
service company, for services on a cost basis (including regularly employed
counsel), $2,000 fee for filing this application-declaration, and
miscellaneous out-of-pocket expenses estimated at $1,000. All of such fees
and expenses will be allocated in accordance with the Commission approved
CNG Service Company allocation procedure (File No. 37-62, HCAR No. 14573),
as amended.
<PAGE> 24
(b) If any person to whom fees or commissions have been or are to be
paid in connection with the proposed transaction is an associate company or
an affiliate of the applicant or declarant, or is an affiliate of an
associate company, set forth the facts with respect thereto.
Charges of CNG Service Company in connection with the preparation
of this application-declaration on Form U-1 and other related documents and
papers required to consummate the proposed transactions are as stated
above.
Item 3. Applicable Statutory Provisions
_______________________________
(a) State the sections of the Act and the rules thereunder believed
to be applicable to the proposed transaction. If any section or rule would
be applicable in the absence of a specific exemption, state the basis of
exemption.
Transactions by Consolidated Only
_________________________________
A. Short-Term Bank Borrowings
__________________________
Sections 6(a) and 7 are deemed applicable to the proposed
short-term bank borrowings to be incurred by Consolidated to the extent it
becomes impractical to issue commercial paper or long-term debt cannot be
issued during an indenture covenant "black-out" period. It is believed
that such bank borrowings are for necessary and urgent corporate purposes
of Consolidated and that the requirements of the provisions of paragraph
(1) of subsection (c) of Section 7 would impose an unreasonable financial
burden upon Consolidated and are not necessary or appropriate in the public
interest or for the protection of investors or consumers.
<PAGE> 25
Rule 70. G. A. Davidson, Jr., an officer and director of
Consolidated and CNG Service Company, and R. P. Simmons director of
Consolidated, are each directors of PNC Bank Corp. (holding company owning
PNC Bank), Pittsburgh, Pennsylvania. R. R. Gifford, an officer and
director of CNG Energy Services Corporation, is a director of National City
Bank, Cleveland, Ohio. J. W. Connolly, a director of Consolidated, is a
director of Mellon Bank Corporation and Mellon Bank, N.A., Pittsburgh,
Pennsylvania. S. A. Minter, a director of Consolidated, is a director of
KeyCorp (holding company owning Society National Bank), Cleveland, Ohio.
These persons are acting in such capacities by virtue of paragraphs (a),
(c), (e) and/or (f) of Rule 70.
All said banks are expected to participate in the aforesaid
back-up bank lines. In the opinion of counsel for Consolidated, borrowing
from any of the banks is not prohibited by the provisions of Rule 70 of the
Commission promulgated under the Act.
B. Sale of Commercial Paper
________________________
Section 6(a) and 7 of the Act are deemed to apply to the sale of
Commercial paper by Consolidated.
Transactions Between Consolidated
and Its Subsidiaries
_________________________________
It is believed that Sections 6(a), 7, 9(a), 10, and 12(b) of the
Act and Rules 43 and 45 are applicable to each of the transactions between
Consolidated and its Subsidiaries, and between CNG Producing and CNG
Pipeline.
<PAGE> 26
Sections 6(a)2 and 7(e) of the act are deemed applicable to any
changes in the authorized common stock of the Subsidiaries.
(b) If an applicant is not a registered holding company or a
subsidiary thereof, state the name of each public utility company of which
it is an affiliate, or of which it will become an affiliate as a result of
the proposed transaction, and the reasons why it is or will become such an
affiliate.
Inapplicable.
Item 4. Regulatory Approval
___________________
(a) State the nature and extent of the jurisdiction of any State
commission or any Federal commission (other than the Securities and
Exchange Commission) over the proposed transaction.
The Public Service Commission of West Virginia has jurisdiction
over the short-term and long-term borrowings and capital stock sales by
Hope Gas, Inc.
The Public Utilities Commission of Ohio has jurisdiction over the
long-term borrowings and the capital stock sales by The East Ohio Gas
Company, and West Ohio Company.
The Virginia State Corporation Commission has jurisdiction over
the short-term and long-term borrowings, and the sales of common stock, by
Virginia Natural Gas, Inc.
<PAGE> 27
The Pennsylvania Public Utility Commission has jurisdiction over
the long-term borrowings and capital stock sales by The Peoples Natural Gas
Company.
No other State commission and no Federal commission other than
the Securities and Exchange Commission has jurisdiction over any of the
proposed transactions.
(b) Describe the action taken or proposed to be taken before any
commission named in answer to paragraph (a) of this item in connection with
the proposed transaction.
Required applications as needed will be filed with the
commissions mentioned above. Debt financings subject to state commission
jurisdictions will be carried out pursuant to Rule 24(c)(2), and equity
financings will be exempt pursuant to Rule 52.
Item 5. Procedure
_________
(a) State the date when Commission action is requested. If the date
is less than 40 days from the date of the original filing, set forth the
reasons for acceleration.
It is requested that Commission action with respect to the
transaction set forth in this application-declaration become effective on
or before June 30, 1995.
(b) State (i) whether there should be a recommended decision by a
hearing officer, (ii) whether there should be a recommended decision by any
other responsible officer of the Commission, (iii) whether the Office of
Public Utility Regulation of the Division of Investment Management may
assist in the preparation of the Commission's decision, and (iv) whether
there should be a 30-day waiting period between the issuance of the
Commission's order and the date on which it is to become effective.
<PAGE> 28
It is submitted that a recommended decision by a hearing or
other responsible officer of the Commission is not needed with respect to
the proposed transactions. The Office of Public Utility Regulation of the
Division of Investment Management may assist in the preparation of the
Commission's decision. There should be no waiting period between the
issuance of the Commission's order and the date on which it is to become
effective.
Item 6. Exhibits and Financial Statements
_________________________________
The following exhibits and financial statements are filed as a
part
of this statement:
(a) Exhibits
A - Constituent Instruments Relating to the Security
(1) Transactions by Consolidated Only
Forms of Notes
A-1 Form of DCP and ECP notes.
(Incorporated by reference to Files No. 70-6153
and 70-7393, respectively.)
(2) Transactions Between Consolidated and Its Subsidiaries
Capital Stock of Subsidiaries
A-2 The capital stock to be issued by Subsidiaries to
Consolidated, as indicated in III.B. of the
response to Item 1(a)hereof, will be the
authorized form of capital stock certificate for
each such Subsidiary and such exhibits are
therefore omitted.
<PAGE> 29
(3) Transactions Between CNG Producing and CNG Pipeline
A-3 The capital stock to be issued by CNG Pipeline to
CNG Producing, as indicated in III.C. of the
response to Item 1(a) hereof, will be the
authorized form of capital stock certificate CNG
Pipeline, and such exhibit is therefore omitted.
D - Proceedings before State Commissions
D-1 Application of Virginia Natural Gas, Inc. to the
Virginia State Corporation Commission. (Incorporated by
reference to Exhibit D-1 to Post-Effective Amendment
No. 1 to Form U-1, File No. 70-8415)
D-2 Order of the Virginia State Corporation Commission to
Virginia Natural Gas, Inc. (Incorporated by reference
to Exhibit D-2 to Post-Effective Amendment No. 1 to
Form U-1, File No. 70-8415)
F - Opinion of Counsel.
F-1 Opinion of Counsel for Consolidated
(To be filed by amendment)
F-2 Combined Opinion of Counsel for CNG Coal Company, CNG
Energy Services Corporation, CNG Producing Company, CNG
Research Company, CNG Storage Service Company, CNG
Transmission Corporation, Consolidated Natural Gas
Service Company, Inc., Hope, Gas, Inc., The East Ohio
Gas Company, The Peoples Natural Gas, Virginia Natural
Gas, Inc., West Ohio Gas Company, and CNG Pipeline
Company (To be filed by amendment)
G - Estimated Monthly Cash Flow for the Years 1995 and 1996 for
Consolidated Natural Gas Company and Subsidiaries -
Consolidated.
H - Estimate of Capital Expenditures of Subsidiaries for the
Years 1995 and 1996.
O - Proposed notice pursuant to Rule 22(f).
<PAGE> 30
(b) Financial Statements
(Index included in financial statements annexed hereto.)
Item 7. Information as to Environmental Effects
_______________________________________
(a) Describe briefly the environmental affects of the proposed
transaction in terms of the standards set forth in Section 102(2)(c) of the
National Environmental Policy Act (42 U.S.C. 4332(2)(C)). If the response
to this item is a negative statement as to the applicability of Section
102(2)(C) in connection with the proposed transaction, also briefly state
the reasons for that response.
As more fully described in Item 1(a), the proposed transactions
subject to the jurisdiction of this Commission relate to financing
proposals and involve no major federal action significantly affecting the
human environment.
(b) State whether any other federal agency has prepared or is
preparing an environmental impact statement ("EIS") with respect to the
proposed transaction. If any other federal agency has prepared or is
preparing an EIS, state which agency or agencies and indicate the status of
that EIS preparation.
None.
<PAGE> 31
SIGNATURES
__________
Pursuant to the requirements of the Public Utility Holding
Company Act of 1935, the undersigned companies have duly caused this
statement to be signed on their behalf by the undersigned thereunto duly
authorized.
CONSOLIDATED NATURAL GAS COMPANY
By L. D. Johnson, Vice Chairman and
Chief Financial Officer
CNG COAL COMPANY
CNG ENERGY SERVICES CORPORATION
CNG PRODUCING COMPANY
CNG PIPELINE COMPANY
CNG RESEARCH COMPANY
CNG STORAGE SERVICE COMPANY
CNG TRANSMISSION CORPORATION
CONSOLIDATED NATURAL GAS SERVICE
COMPANY, INC.
HOPE GAS, INC.
THE EAST OHIO GAS COMPANY
THE PEOPLES NATURAL GAS COMPANY
VIRGINIA NATURAL GAS, INC.
WEST OHIO GAS COMPANY
By N. F. Chandler, Their Attorney
Dated: April 28, 1995
<PAGE> 32
ITEM 6(b) - FINANCIAL STATEMENTS
INDEX
- Page -
Explanation of proposed transactions 1-3
Consolidating Financial Statements for the Year
Ended December 31, 1994 4-28
The effects of the transactions described under
Authorizations Requested in this
Application-Declaration are set forth in the following
pro forma financial statements:
Consolidated Natural Gas Company and
Subsidiaries - Consolidated:
Balance Sheet 29-30
Schedule of Long-Term Debt 31
Income Statement 32
Consolidated Natural Gas Company:
Balance Sheet 33-34
Schedule of Long-Term Debt 35
Income Statement 36
Statement of Pro Forma Adjusting Entries 37-39
<PAGE> 33
ITEM 6(b), PAGE 1
EXPLANATION OF PRO-
POSED TRANSACTIONS
EXPLANATION OF PROPOSED TRANSACTIONS
AFFECTING THE CONSOLIDATED FINANCIAL STATEMENTS
As set forth in Item 1 herein, Consolidated Natural Gas Company
("Consolidated" or "Parent Company") proposes (1) to issue and sell, from
time to time through June 30, 1996, domestic and/or Euro-commercial paper
in an aggregate principal amount not to exceed $800,000,000 outstanding at
any one time for general corporate purposes, including financing gas
storage inventories, other working capital requirements and the temporary
financing of capital expenditures until long-term financing is obtained.
As further set forth in Item 1, the sale of commercial paper would be
supported 100 percent by back-up lines of credit in an aggregate principal
amount not to exceed $600,000,000 and up to $200,000,000 of unused
commitments under the Credit Agreement. The lines of credit would also be
utilized if the sale of commercial paper becomes impracticable due to
market conditions or otherwise. The borrowing of up to $300,000,000 under
the restructured Credit Agreement has not been reflected in the pro forma
consolidated financial statements since this Credit Agreement has been
previously authorized (File No. 70-7827) and Consolidated does not
anticipate any borrowings within the pro forma period.
The pro forma entries pertaining to Consolidated also give effect to:
(a) The repayment of $440,000,000 of commercial paper notes
outstanding at December 31, 1994, issued and sold during 1994 to
finance working capital requirements of subsidiaries.
(b) The borrowing of up to $150,000,000 under a bank line of credit
for a period not to exceed 364 days to possibly be used to
finance acquisitions of natural gas reserves and other assets
during a temporary "black-out" period during which Consolidated
may not be able to issue most types of long-term debt due to a
restrictive covenant. For sake of conservatism, the consolidated
balance sheet reflects the issuance of the entire $150,000,000
line of credit. No interest charges have been calculated for the
pro forma income statement as Consolidated does not expect to
borrow against the line of credit during the pro forma period.
(c) The issuance and sale on April 12, 1995, of $150,000,000
principal amount of 7-3/8% Debentures Due April 1, 2005
(File No. 70-8107).
<PAGE> 34
ITEM 6(b), PAGE 2
EXPLANATION OF PRO-
POSED TRANSACTIONS
EXPLANATION OF PROPOSED
TRANSACTIONS BETWEEN AFFILIATED COMPANIES
As set forth in Item 1 herein, certain subsidiaries propose:
(2) to obtain financing from the Parent Company from time to time
through June 30, 1996, in the form of open account advances, long-
term loans and/or capital stock up to the amounts set forth below.
Open account advances will provide financing for general corporate
purposes, including gas storage inventories, other working capital
requirements, and temporary financing of construction expenditures
until long-term financing is obtained and/or cash is generated
internally. Long-term loans and capital stock will provide
financing for capital expenditures. Stock transactions between the
Parent Company and its utility subsidiaries would occur under an
exemption pursuant to Rule 52 under the Act. For purposes of the
pro forma financial statements herein, it has been assumed that
financing of the subsidiary companies will be in the form of open
account advances.
Consolidated Natural Gas Service Company, Inc. $ 15,000,000
CNG Transmission Corporation 100,000,000
The East Ohio Gas Company 265,000,000
The Peoples Natural Gas Company 100,000,000
Virginia Natural Gas, Inc. 100,000,000
Hope Gas, Inc. 15,000,000
West Ohio Gas Company 25,000,000
CNG Producing Company 300,000,000
CNG Energy Services Corporation 300,000,000
CNG Storage Service Company 1,000,000
CNG Research Company 1,000,000
CNG Coal Company 3,000,000
______________
Total $1,225,000,000
==============
<PAGE> 35
ITEM 6(b), PAGE 3
EXPLANATION OF PRO-
POSED TRANSACTIONS
(CONCLUDED)
In addition to the above proposal by subsidiaries, the pro forma entries
give effect to:
(a) The repayment to the Parent Company of $133,643,000 principal
amount of open account advances at December 31, 1994, made to
subsidiaries to provide financing for general corporate purposes,
including gas storage inventories and other working capital
requirements.
(b) The issuance to the Parent Company of capital stock by the
following subsidiaries:
Amount
________
CNG Research Company $100,000 (File No. 70-8415)
CNG Power Services Corporation 85,000 (Section 32(g) exemption)
________
$185,000
========
The pro forma entries do not give effect to financing transactions of CNG
Power Company (formerly "CNG Energy Company") as authorized by the
Commission at File Nos. 70-7845, 70-7941 and 70-8285 since such
transactions are neither part of this Application-Declaration nor part of
the authorizations granted at File No. 70-8415.
Reference is made to Item 1 herein regarding the proposed financing by CNG
Producing Company of its wholly-owned subsidiary, CNG Pipeline Company.
<PAGE> 36
<TABLE>
-PAGE 4
CONSOLIDATED NATURAL GAS COMPANY
CONSOLIDATING BALANCE SHEET
At December 31, 1994
(Thousands of Dollars)
<CAPTION>
REGISTERED
CONSOLIDATED HOLDING
Consolidated COMPANY
Natural Gas Eliminations Consolidated
Company and and Combined Natural Gas
Assets Subsidiaries Adjustments* Total Company
<S> <C> <C> <C> <C>
PROPERTY, PLANT AND EQUIPMENT (Note 3)
Gas utility and other plant . . . . . . . . . . . . . . . .$ 4,546,753 $ (2,099) $ 4,548,852 $ -
Accumulated depreciation and amortization . . . . . . . . . (1,686,788) 349 (1,687,137) -
Net gas utility and other plant . . . . . . . . . . . 2,859,965 (1,750) 2,861,715 -
Exploration and production properties . . . . . . . . . . . 3,130,203 - 3,130,203 -
Accumulated depreciation and amortization . . . . . . . . . (1,963,522) 32,107 (1,995,629) -
Net exploration and production properties . . . . . . 1,166,681 32,107 1,134,574 -
Net property, plant and equipment . . . . . . . . . . 4,026,646 30,357 3,996,289 -
INVESTMENTS
Stocks of subsidiary companies, at equity - consolidated . - (2,374,768) 2,374,768 2,374,768
Notes of subsidiary companies - consolidated . . . . . . . - (1,142,317) 1,142,317 1,142,317
Total investments . . . . . . . . . . . . . . . . . . - (3,517,085) 3,517,085 3,517,085
CURRENT ASSETS
Cash and temporary cash investments . . . . . . . . . . . . 31,923 - 31,923 527
Accounts receivable
Customers . . . . . . . . . . . . . . . . . . . . . . . . 407,145 - 407,145 -
Unbilled revenues and other . . . . . . . . . . . . . . . 146,653 - 146,653 81
Allowance for doubtful accounts . . . . . . . . . . . . . (7,507) - (7,507) -
Receivables from affiliated companies - consolidated . . . - (775,148) 775,148 212,719
Inventories, at cost
Gas stored - current portion (LIFO method) (Note 7) . . . 190,196 (2,144) 192,340 -
Materials and supplies (average cost method) . . . . . . 35,072 - 35,072 -
Unrecovered gas costs (Note 2) . . . . . . . . . . . . . . 13,135 - 13,135 -
Deferred income taxes - current (Note 6) . . . . . . . . . 60,103 (110) 60,213 -
Prepayments and other current assets . . . . . . . . . . . 188,019 (3,752) 191,771 48,617
Total current assets . . . . . . . . . . . . . . . . 1,064,739 (781,154) 1,845,893 261,944
REGULATORY AND OTHER ASSETS (Note 8)
Unamortized abandoned facilities . . . . . . . . . . . . . 40,955 - 40,955 -
Other investments . . . . . . . . . . . . . . . . . . . . . 54,682 - 54,682 -
Deferred charges and other assets (Notes 2, 5, 6 and 15) . 331,651 (81,212) 412,863 1,609
Total regulatory and other assets . . . . . . . . . . 427,288 (81,212) 508,500 1,609
Total assets . . . . . . . . . . . . . . . . . . . .$ 5,518,673 $(4,349,094) $ 9,867,767 $3,780,638
<FN>
* The elimination journal entries pertaining to this consolidating financial statement are prepared in detail form,
showing the amounts pertaining to the Registrant and each subsidiary company, and are preserved with the Registrant's
copy of this Form U5S.
The Notes to Consolidated Financial Statements are an integral part of this statement and appear on pages 51 to 77 of
Consolidated Natural Gas Company's Annual Report on Form 10-K for the year ended December 31, 1994, incorporated herein by
reference.
( ) denotes negative amount.
</FN>
</TABLE>
<PAGE> 37
<TABLE>
-PAGE 5
CONSOLIDATED NATURAL GAS COMPANY
CONSOLIDATING BALANCE SHEET (Continued)
At December 31, 1994
(Thousands of Dollars)
<CAPTION>
SUBSIDIARIES
Consolidated
Natural Gas CNG The East The Peoples
Service Transmission Ohio Gas Natural Gas
Assets Company, Inc. Corporation Company Company
<S> <C> <C> <C> <C>
PROPERTY, PLANT AND EQUIPMENT (Note 3)
Gas utility and other plant . . . . . . . . . . . . . . . . $ 23,601 $1,957,518 $1,230,417 $ 643,594
Accumulated depreciation and amortization . . . . . . . . . (14,651) (733,844) (518,281) (224,938)
Net gas utility and other plant . . . . . . . . . . . 8,950 1,223,674 712,136 418,656
Exploration and production properties . . . . . . . . . . . - 230,735 - -
Accumulated depreciation and amortization . . . . . . . . . - (205,753) - -
Net exploration and production properties . . . . . . - 24,982 - -
Net property, plant and equipment . . . . . . . . . . 8,950 1,248,656 712,136 418,656
INVESTMENTS
Stocks of subsidiary companies, at equity - consolidated . - - - -
Notes of subsidiary companies - consolidated . . . . . . . - - - -
Total investments . . . . . . . . . . . . . . . . . . - - - -
CURRENT ASSETS
Cash and temporary cash investments . . . . . . . . . . . . 296 6,229 8,902 3,728
Accounts receivable
Customers . . . . . . . . . . . . . . . . . . . . . . . . - 51,623 179,123 72,601
Unbilled revenues and other . . . . . . . . . . . . . . . 608 6,221 55,027 (156)
Allowance for doubtful accounts . . . . . . . . . . . . . - - (2,040) (3,535)
Receivables from affiliated companies - consolidated . . . 310,196 72,094 361 -
Inventories, at cost
Gas stored - current portion (LIFO method) (Note 7) . . . - - 104,092 43,656
Materials and supplies (average cost method) . . . . . . - 13,470 11,535 4,544
Unrecovered gas costs (Note 2) . . . . . . . . . . . . . . - 9,879 - -
Deferred income taxes - current (Note 6) . . . . . . . . . - 19,826 34,336 4,596
Prepayments and other current assets . . . . . . . . . . . 204 41,770 57,804 7,765
Total current assets . . . . . . . . . . . . . . . . 311,304 221,112 449,140 133,199
REGULATORY AND OTHER ASSETS (Note 8)
Unamortized abandoned facilities . . . . . . . . . . . . . - - - -
Other investments . . . . . . . . . . . . . . . . . . . . . - 17,165 - -
Deferred charges and other assets (Notes 2, 5, 6 and 15) . 3,031 60,078 175,919 129,404
Total regulatory and other assets . . . . . . . . . . 3,031 77,243 175,919 129,404
Total assets . . . . . . . . . . . . . . . . . . . . $323,285 $1,547,011 $1,337,195 $ 681,259
<FN>
The Notes to Consolidated Financial Statements are an integral part of this statement and appear on pages 51 to 77 of
Consolidated Natural Gas Company's Annual Report on Form 10-K for the year ended December 31, 1994, incorporated herein
by reference.
( ) denotes negative amount.
</FN>
</TABLE>
<PAGE> 38
<TABLE>
-PAGE 6
CONSOLIDATED NATURAL GAS COMPANY
CONSOLIDATING BALANCE SHEET (Continued)
At December 31, 1994
(Thousands of Dollars)
<CAPTION>
SUBSIDIARIES
Virginia Hope West Ohio CNG CNG
Natural Gas, Gas Producing Energy
Assets Gas, Inc. Inc. Company Company Company
<S> <C> <C> <C> <C> <C>
PROPERTY, PLANT AND EQUIPMENT (Note 3)
Gas utility and other plant . . . . . . . . . . . . . . . . $399,916 $164,124 $ 61,346 $ - $ 6,390
Accumulated depreciation and amortization . . . . . . . . . (96,485) (71,522) (25,272) - (1,674)
Net gas utility and other plant . . . . . . . . . . . 303,431 92,602 36,074 - 4,716
Exploration and production properties . . . . . . . . . . . - - - 2,899,468 -
Accumulated depreciation and amortization . . . . . . . . . - - - (1,789,876) -
Net exploration and production properties . . . . . . - - - 1,109,592 -
Net property, plant and equipment . . . . . . . . . . 303,431 92,602 36,074 1,109,592 4,716
INVESTMENTS
Stocks of subsidiary companies, at equity - consolidated . - - - - -
Notes of subsidiary companies - consolidated . . . . . . . - - - - -
Total investments . . . . . . . . . . . . . . . . . . - - - - -
CURRENT ASSETS
Cash and temporary cash investments . . . . . . . . . . . . 1,983 1,890 993 3,219 155
Accounts receivable
Customers . . . . . . . . . . . . . . . . . . . . . . . . 15,790 10,117 7,882 15,310 -
Unbilled revenues and other . . . . . . . . . . . . . . . 14,594 6,348 3,747 58,820 671
Allowance for doubtful accounts . . . . . . . . . . . . . (50) (350) (100) (1,000) -
Receivables from affiliated companies - consolidated . . . - 1,862 - 95,262 12,134
Inventories, at cost
Gas stored - current portion (LIFO method) (Note 7) . . . 12,388 9,980 6,367 63 -
Materials and supplies (average cost method) . . . . . . 622 1,185 658 2,733 325
Unrecovered gas costs (Note 2) . . . . . . . . . . . . . . - 2,185 1,071 - -
Deferred income taxes - current (Note 6) . . . . . . . . . 1,455 - - - -
Prepayments and other current assets . . . . . . . . . . . 272 10,194 4,059 18,997 -
Total current assets . . . . . . . . . . . . . . . . 47,054 43,411 24,677 193,404 13,285
REGULATORY AND OTHER ASSETS (Note 8)
Unamortized abandoned facilities . . . . . . . . . . . . . - - - - -
Other investments . . . . . . . . . . . . . . . . . . . . . 50 4,475 - - 32,473
Deferred charges and other assets (Notes 2, 5, 6 and 15) . 11,066 6,777 7,544 12,662 169
Total regulatory and other assets . . . . . . . . . . 11,116 11,252 7,544 12,662 32,642
Total assets . . . . . . . . . . . . . . . . . . . . $361,601 $147,265 $ 68,295 $ 1,315,658 $50,643
<FN>
The Notes to Consolidated Financial Statements are an integral part of this statement and appear on pages 51 to 77 of
Consolidated Natural Gas Company's Annual Report on Form 10-K for the year ended December 31, 1994, incorporated herein
by reference.
( ) denotes negative amount.
</FN>
</TABLE>
<PAGE> 39
<TABLE>
-PAGE 7
CONSOLIDATED NATURAL GAS COMPANY
CONSOLIDATING BALANCE SHEET (Continued)
At December 31, 1994
(Thousands of Dollars)
<CAPTION>
SUBSIDIARIES
CNG Energy CNG Power CNG Storage Consolidated CNG
Services Services Service System LNG Research
Assets Corporation Corporation Company Company Company
<S> <C> <C> <C> <C> <C>
PROPERTY, PLANT AND EQUIPMENT (Note 3)
Gas utility and other plant . . . . . . . . . . . . . . . . $ 3,687 $ 47 $21,063 $ - $ -
Accumulated depreciation and amortization . . . . . . . . . (470) - - - -
Net gas utility and other plant . . . . . . . . . . . 3,217 47 21,063 - -
Exploration and production properties . . . . . . . . . . . - - - - -
Accumulated depreciation and amortization . . . . . . . . . - - - - -
Net exploration and production properties . . . . . . - - - - -
Net property, plant and equipment . . . . . . . . . . 3,217 47 21,063 - -
INVESTMENTS
Stocks of subsidiary companies, at equity - consolidated . - - - - -
Notes of subsidiary companies - consolidated . . . . . . . - - - - -
Total investments . . . . . . . . . . . . . . . . . . - - - - -
CURRENT ASSETS
Cash and temporary cash investments . . . . . . . . . . . . 3,826 10 33 29 21
Accounts receivable
Customers . . . . . . . . . . . . . . . . . . . . . . . . 54,699 - - - -
Unbilled revenues and other . . . . . . . . . . . . . . . 660 19 - - 13
Allowance for doubtful accounts . . . . . . . . . . . . . (432) - - - -
Receivables from affiliated companies - consolidated . . . 7,932 - 665 56,682 -
Inventories, at cost
Gas stored - current portion (LIFO method) (Note 7) . . . 15,794 - - - -
Materials and supplies (average cost method) . . . . . . - - - - -
Unrecovered gas costs (Note 2) . . . . . . . . . . . . . . - - - - -
Deferred income taxes - current (Note 6) . . . . . . . . . - - - - -
Prepayments and other current assets . . . . . . . . . . . 2,087 - - 2 -
Total current assets . . . . . . . . . . . . . . . . 84,566 29 698 56,713 34
REGULATORY AND OTHER ASSETS (Note 8)
Unamortized abandoned facilities . . . . . . . . . . . . . - - - 40,955 -
Other investments . . . . . . . . . . . . . . . . . . . . . - 519 - - -
Deferred charges and other assets (Notes 2, 5, 6 and 15) . 193 - - 4,389 13
Total regulatory and other assets . . . . . . . . . . . . . 193 519 - 45,344 13
Total assets . . . . . . . . . . . . . . . . . . . . $ 87,976 $595 $21,761 $102,057 $ 47
<FN>
The Notes to Consolidated Financial Statements are an integral part of this statement and appear on pages 51 to 77 of
Consolidated Natural Gas Company's Annual Report on Form 10-K for the year ended December 31, 1994, incorporated herein
by reference.
( ) denotes negative amount.
</FN>
</TABLE>
<PAGE> 40
<TABLE>
-PAGE 8
CONSOLIDATED NATURAL GAS COMPANY
CONSOLIDATING BALANCE SHEET (Continued)
At December 31, 1994
(Thousands of Dollars)
<CAPTION>
SUBSIDIARIES
CNG CNG
Coal Financial
Assets Company Services, Inc.
<S> <C> <C>
PROPERTY, PLANT AND EQUIPMENT (Note 3)
Gas utility and other plant . . . . . . . . . . . . . . . . $ 37,149 $ -
Accumulated depreciation and amortization . . . . . . . . . - -
Net gas utility and other plant . . . . . . . . . . . . . 37,149 -
Exploration and production properties . . . . . . . . . . . - -
Accumulated depreciation and amortization . . . . . . . . . - -
Net exploration and production properties . . . . . . - -
Net property, plant and equipment . . . . . . . . . . 37,149 -
INVESTMENTS
Stocks of subsidiary companies, at equity - consolidated . - -
Notes of subsidiary companies - consolidated . . . . . . . - -
Total investments . . . . . . . . . . . . . . . . . . . - -
CURRENT ASSETS
Cash and temporary cash investments . . . . . . . . . . . . 41 41
Accounts receivable
Customers . . . . . . . . . . . . . . . . . . . . . . . . - -
Unbilled revenues and other . . . . . . . . . . . . . . . - -
Allowance for doubtful accounts . . . . . . . . . . . . . - -
Receivables from affiliated companies - consolidated . . . 5,241 -
Inventories, at cost
Gas stored - current portion (LIFO method) (Note 7) . . . - -
Materials and supplies (average cost method) . . . . . . - -
Unrecovered gas costs (Note 2) . . . . . . . . . . . . . . - -
Deferred income taxes - current (Note 6) . . . . . . . . . - -
Prepayments and other current assets . . . . . . . . . . . - -
Total current assets . . . . . . . . . . . . . . . . 5,282 41
REGULATORY AND OTHER ASSETS (Note 8)
Unamortized abandoned facilities . . . . . . . . . . . . . - -
Other investments . . . . . . . . . . . . . . . . . . . . . - -
Deferred charges and other assets (Notes 2, 5, 6 and 15) . - 9
Total regulatory and other assets. . . . . . . . . . - 9
Total assets . . . . . . . . . . . . . . . . . . . . $ 42,431 $ 50
<FN>
The Notes to Consolidated Financial Statements are an integral part of this statement and appear on pages 51 to 77 of
Consolidated Natural Gas Company's Annual Report on Form 10-K for the year ended December 31, 1994, incorporated herein
by reference.
( ) denotes negative amount.
</FN>
</TABLE>
<PAGE> 41
<TABLE>
-PAGE 9
CONSOLIDATED NATURAL GAS COMPANY
CONSOLIDATING BALANCE SHEET (Continued)
At December 31, 1994
(Thousands of Dollars)
<CAPTION>
REGISTERED
CONSOLIDATED HOLDING
Consolidated COMPANY
Natural Gas Eliminations Consolidated
Company and and Combined Natural Gas
Stockholders' Equity and Liabilities Subsidiaries Adjustments* Total Company
<S> <C> <C> <C> <C>
CAPITALIZATION
Common stockholders' equity
Common stock - par value $2.75 per share (Note 9)
200,000,000 authorized shares
Issued - 93,027,847 shares . . . . . . . . . . . $ 255,827 $(1,741,331) $ 1,997,158 $ 255,827
Capital in excess of par value (Note 9) . . . . . . . 458,628 (34,926) 493,554 418,663
Retained earnings, per accompanying statement
(Note 11) . . . . . . . . . . . . . . . . . . . . 1,469,879 (583,293) 2,053,172 1,469,879
Total common stockholders' equity . . . . . . . . 2,184,334 (2,359,550) 4,543,884 2,144,369
Long-term debt (Note 12)
Debentures . . . . . . . . . . . . . . . . . . . . . 891,738 - 891,738 891,738
Convertible subordinated debentures . . . . . . . . 244,235 - 244,235 244,235
Unsecured loan . . . . . . . . . . . . . . . . . . . 16,000 - 16,000 -
Notes payable to Registrant - consolidated . . . . . - (1,142,317) 1,142,317 -
Total long-term debt . . . . . . . . . . . . . . 1,151,973 (1,142,317) 2,294,290 1,135,973
Total capitalization . . . . . . . . . . . . . . 3,336,307 (3,501,867) 6,838,174 3,280,342
CURRENT LIABILITIES
Current maturities on long-term debt . . . . . . . . . 4,000 - 4,000 -
Commercial paper (Note 13) . . . . . . . . . . . . . . 440,000 - 440,000 440,000
Accounts payable . . . . . . . . . . . . . . . . . . . 357,611 - 357,611 159
Estimated rate contingencies and refunds (Note 2) . . 83,404 - 83,404 -
Payables to affiliated companies - consolidated . . . - (775,148) 775,148 -
Amounts payable to customers . . . . . . . . . . . . . 96,140 - 96,140 -
Taxes accrued . . . . . . . . . . . . . . . . . . . . 94,413 (3,417) 97,830 (312)
Deferred income taxes - current (Note 6) . . . . . . . - (110) 110 -
Dividends declared . . . . . . . . . . . . . . . . . . 45,119 - 45,119 45,119
Other current liabilities . . . . . . . . . . . . . . 90,061 (335) 90,396 18,442
Total current liabilities . . . . . . . . . . . 1,210,748 (779,010) 1,989,758 503,408
DEFERRED CREDITS
Deferred income taxes (Note 6) . . . . . . . . . . . . 758,633 11,094 747,539 3,188
Accumulated deferred investment tax credits . . . . . 33,229 - 33,229 -
Deferred credits and other liabilities (Note 6) . . . 179,756 (79,311) 259,067 (6,300)
Total deferred credits . . . . . . . . . . . . . . 971,618 (68,217) 1,039,835 (3,112)
COMMITMENTS AND CONTINGENCIES (Note 16)
Total stockholders' equity and liabilities . . . .$ 5,518,673 $(4,349,094) $ 9,867,767 $3,780,638
<FN>
* The elimination journal entries pertaining to this consolidating financial statement are prepared in detail form,
showing the amounts pertaining to the Registrant and each subsidiary company, and are preserved with the Registrant's
copy of this Form U5S.
The Notes to Consolidated Financial Statements are an integral part of this statement and appear on pages 51 to 77 of
Consolidated Natural Gas Company's Annual Report on Form 10-K for the year ended December 31, 1994, incorporated herein by
reference.
( ) denotes negative amount.
</FN>
</TABLE>
<PAGE> 42
<TABLE>
-PAGE 10
CONSOLIDATED NATURAL GAS COMPANY
CONSOLIDATING BALANCE SHEET (Continued)
At December 31, 1994
(Thousands of Dollars)
<CAPTION>
SUBSIDIARIES
Consolidated
Natural Gas CNG The East The Peoples
Service Transmission Ohio Gas Natural Gas
Stockholders' Equity and Liabilities Company, Inc. Corporation Company Company
<S> <C> <C> <C> <C>
CAPITALIZATION
Common stockholders' equity
Common stock - par value $2.75 per share (Note 9)
200,000,000 authorized shares
Issued - 93,027,847 shares . . . . . . . . . . . . $ 10 $ 590,000 $ 177,968 $ 165,535
Capital in excess of par value (Note 9) . . . . . . . - 2,254 4,550 -
Retained earnings, per accompanying statement
(Note 11) . . . . . . . . . . . . . . . . . . . . . - 145,469 190,002 73,427
Total common stockholders' equity . . . . . . . . 10 737,723 372,520 238,962
Long-term debt (Note 12)
Debentures . . . . . . . . . . . . . . . . . . . . . - - - -
Convertible subordinated debentures . . . . . . . . . - - - -
Unsecured loan . . . . . . . . . . . . . . . . . . . - - - -
Notes payable to Registrant - consolidated . . . . . 14,631 388,359 209,722 130,651
Total long-term debt . . . . . . . . . . . . . . 14,631 388,359 209,722 130,651
Total capitalization . . . . . . . . . . . . . . 14,641 1,126,082 582,242 369,613
CURRENT LIABILITIES
Current maturities on long-term debt . . . . . . . . . - - - -
Commercial paper (Note 13) . . . . . . . . . . . . . . - - - -
Accounts payable . . . . . . . . . . . . . . . . . . . 4,105 35,770 124,678 30,908
Estimated rate contingencies and refunds (Note 2) . . . - 52,348 19,178 2,326
Payables to affiliated companies - consolidated . . . . 300,582 45,939 240,487 79,673
Amounts payable to customers . . . . . . . . . . . . . - - 87,329 6,309
Taxes accrued . . . . . . . . . . . . . . . . . . . . . 188 38,693 38,666 5,046
Deferred income taxes - current (Note 6) . . . . . . . - - - -
Dividends declared . . . . . . . . . . . . . . . . . . - - - -
Other current liabilities . . . . . . . . . . . . . . . 1,585 18,544 17,344 8,859
Total current liabilities . . . . . . . . . . . . 306,460 191,294 527,682 133,121
DEFERRED CREDITS
Deferred income taxes (Note 6) . . . . . . . . . . . . (959) 158,070 138,243 117,828
Accumulated deferred investment tax credits . . . . . . - 205 15,823 10,252
Deferred credits and other liabilities (Note 6) . . . . 3,143 71,360 73,205 50,445
Total deferred credits . . . . . . . . . . . . . 2,184 229,635 227,271 178,525
COMMITMENTS AND CONTINGENCIES (Note 16)
Total stockholders' equity and liabilities . . . . $323,285 $1,547,011 $1,337,195 $ 681,259
<FN>
The Notes to Consolidated Financial Statements are an integral part of this statement and appear on pages 51 to 77 of
Consolidated Natural Gas Company's Annual Report on Form 10-K for the year ended December 31, 1994, incorporated herein
by reference.
( ) denotes negative amount.
</FN>
</TABLE>
<PAGE> 43
<TABLE>
-PAGE 11
CONSOLIDATED NATURAL GAS COMPANY
CONSOLIDATING BALANCE SHEET (Continued)
At December 31, 1994
(Thousands of Dollars)
<CAPTION>
SUBSIDIARIES
Virginia Hope West Ohio CNG CNG
Natural Gas, Gas Producing Energy
Stockholders' Equity and Liabilities Gas, Inc. Inc. Company Company Company
<S> <C> <C> <C> <C> <C>
CAPITALIZATION
Common stockholders' equity
Common stock - par value $2.75 per share (Note 9)
200,000,000 authorized shares
Issued - 93,027,847 shares . . . . . . . . . . . . $109,697 $ 40,900 $ 13,590 $ 470,840 $22,460
Capital in excess of par value (Note 9) . . . . . . 57,603 - 435 - -
Retained earnings, per accompanying statement
(Note 11) . . . . . . . . . . . . . . . . . . . . 4,409 16,803 9,472 152,092 2,084
Total common stockholders' equity . . . . . . . 171,709 57,703 23,497 622,932 24,544
Long-term debt (Note 12)
Debentures . . . . . . . . . . . . . . . . . . . . . - - - - -
Convertible subordinated debentures . . . . . . . . - - - - -
Unsecured loan . . . . . . . . . . . . . . . . . . . 16,000 - - - -
Notes payable to Registrant - consolidated . . . . . 73,418 38,499 12,639 253,575 13,473
Total long-term debt . . . . . . . . . . . . . . 89,418 38,499 12,639 253,575 13,473
Total capitalization . . . . . . . . . . . . . . 261,127 96,202 36,136 876,507 38,017
CURRENT LIABILITIES
Current maturities on long-term debt . . . . . . . . . 4,000 - - - -
Commercial paper (Note 12) . . . . . . . . . . . . . . - - - - -
Accounts payable . . . . . . . . . . . . . . . . . . . 23,917 9,552 4,040 89,053 551
Estimated rate contingencies and refunds (Note 2) . . 5,494 2,558 1,500 - -
Payables to affiliated companies - consolidated . . . 37,271 9,988 12,387 12,477 582
Amounts payable to customers . . . . . . . . . . . . . 2,502 - - - -
Taxes accrued . . . . . . . . . . . . . . . . . . . . 907 3,924 2,330 5,296 1,194
Deferred income taxes - current (Note 6) . . . . . . . - 67 43 - -
Dividends declared . . . . . . . . . . . . . . . . . . - - - - -
Other current liabilities . . . . . . . . . . . . . . 10,496 2,020 789 10,127 104
Total current liabilities . . . . . . . . . . . 84,587 28,109 21,089 116,953 2,431
DEFERRED CREDITS
Deferred income taxes (Note 6) . . . . . . . . . . . . (3,337) 9,292 4,835 293,918 10,195
Accumulated deferred investment tax credits . . . . . 3,436 2,851 662 - -
Deferred credits and other liabilities (Note 6) . . . 15,788 10,811 5,573 28,280 -
Total deferred credits . . . . . . . . . . . . . 15,887 22,954 11,070 322,198 10,195
COMMITMENTS AND CONTINGENCIES (Note 16)
Total stockholders' equity and liabilities . . . $361,601 $147,265 $ 68,295 $1,315,658 $50,643
<FN>
The Notes to Consolidated Financial Statements are an integral part of this statement and appear on pages 51 to 77 of
Consolidated Natural Gas Company's Annual Report on Form 10-K for the year ended December 31, 1994, incorporated herein
by reference.
( ) denotes negative amount.
</FN>
</TABLE>
<PAGE> 44
<TABLE>
-PAGE 12
CONSOLIDATED NATURAL GAS COMPANY
CONSOLIDATING BALANCE SHEET (Continued)
At December 31, 1994
(Thousands of Dollars)
<CAPTION>
SUBSIDIARIES
CNG Energy CNG Power CNG Storage Consolidated CNG
Services Services Service System LNG Research
Stockholders' Equity and Liabilities Corporation Corporation Company Company Company
<S> <C> <C> <C> <C> <C>
CAPITALIZATION
Common stockholders' equity
Common stock - par value $2.75 per share (Note 9)
200,000,000 authorized shares
Issued - 93,027,847 shares . . . . . . . . . . . . $ 1 $ 520 $13,660 $ 83,400 $ 15,340
Capital in excess of par value (Note 9) . . . . . . 10,049 - - - -
Retained earnings, per accompanying statement
(Note 11) . . . . . . . . . . . . . . . . . . . . 1,101 (455) 43 304 (15,316)
Total common stockholders' equity . . . . . . . 11,151 65 13,703 83,704 24
Long-term debt (Note 12)
Debentures . . . . . . . . . . . . . . . . . . . . . - - - - -
Convertible subordinated debentures . . . . . . . . - - - - -
Unsecured loan . . . . . . . . . . . . . . . . . . . - - - - -
Notes payable to Registrant - consolidated . . . . . - - 7,350 - -
Total long-term debt . . . . . . . . . . . . . . - - 7,350 - -
Total capitalization . . . . . . . . . . . . . . 11,151 65 21,053 83,704 24
CURRENT LIABILITIES
Current maturities on long-term debt . . . . . . . . . - - - - -
Commercial paper (Note 13) . . . . . . . . . . . . . . - - - - -
Accounts payable . . . . . . . . . . . . . . . . . . . 34,851 18 - - 9
Estimated rate contingencies and refunds (Note 2) . . - - - - -
Payables to affiliated companies - consolidated . . . 32,149 574 524 2,502 8
Amounts payable to customers . . . . . . . . . . . . . - - - - -
Taxes accrued . . . . . . . . . . . . . . . . . . . . 1,667 (78) 185 (19) 6
Deferred income taxes - current (Note 6) . . . . . . . - - - - -
Dividends declared . . . . . . . . . . . . . . . . . . - - - - -
Other current liabilities . . . . . . . . . . . . . . 2,081 1 (1) - -
Total current liabilities . . . . . . . . . . . 70,748 515 708 2,483 23
DEFERRED CREDITS
Deferred income taxes (Note 6) . . . . . . . . . . . . (685) 15 - 15,870 -
Accumulated deferred investment tax credits . . . . . - - - - -
Deferred credits and other liabilities (Note 6) . . . 6,762 - - - -
Total deferred credits . . . . . . . . . . . . . 6,077 15 - 15,870 -
COMMITMENTS AND CONTINGENCIES (Note 16)
Total stockholders' equity and liabilities . . . $87,976 $ 595 $21,761 $102,057 $ 47
<FN>
The Notes to Consolidated Financial Statements are an integral part of this statement and appear on pages 51 to 77 of
Consolidated Natural Gas Company's Annual Report on Form 10-K for the year ended December 31, 1994, incorporated herein
by reference.
( ) denotes negative amount.
</FN>
</TABLE>
<PAGE> 45
<TABLE>
-PAGE 13
CONSOLIDATED NATURAL GAS COMPANY
CONSOLIDATING BALANCE SHEET (Concluded)
At December 31, 1994
(Thousands of Dollars)
<CAPTION>
SUBSIDIARIES
CNG CNG
Coal Financial
Stockholders' Equity and Liabilities Company Services, Inc.
<S> <C> <C>
CAPITALIZATION
Common stockholders' equity
Common stock - par value $2.75 per share (Note 9)
200,000,000 authorized shares
Issued - 93,027,847 shares . . . . . . . . . . . . $ 37,360 $ 50
Capital in excess of par value (Note 9) . . . . . . - -
Retained earnings, per accompanying statement
(Note 11) . . . . . . . . . . . . . . . . . . . . 3,858 -
Total common stockholders' equity . . . . . . . 41,218 50
Long-term debt (Note 12)
Debentures . . . . . . . . . . . . . . . . . . . . - -
Convertible subordinated debentures . . . . . . . . - -
Unsecured loan . . . . . . . . . . . . . . . . . . - -
Notes payable to Registrant - consolidated . . . . - -
Total long-term debt . . . . . . . . . . . . . - -
Total capitalization . . . . . . . . . . . . . 41,218 50
CURRENT LIABILITIES
Current maturities on long-term debt . . . . . . . . - -
Commercial paper (Note 13) . . . . . . . . . . . . . - -
Accounts payable . . . . . . . . . . . . . . . . . . - -
Estimated rate contingencies and refunds (Note 2) . . . - -
Payables to affiliated companies - consolidated . . 5 -
Amounts payable to customers . . . . . . . . . . . . - -
Taxes accrued . . . . . . . . . . . . . . . . . . . . 137 -
Deferred income taxes - current (Note 6) . . . . . . - -
Dividends declared . . . . . . . . . . . . . . . . . - -
Other current liabilities . . . . . . . . . . . . . . 5 -
Total current liabilities . . . . . . . . . . . . 147 -
DEFERRED CREDITS
Deferred income taxes (Note 6) . . . . . . . . . . . . 1,066 -
Accumulated deferred investment tax credits . . . . . . - -
Deferred credits and other liabilities (Note 6) . . . . - -
Total deferred credits . . . . . . . . . . . . . 1,066 -
COMMITMENTS AND CONTINGENCIES (Note 16)
Total stockholders' equity and liabilities . . . $ 42,431 $ 50
<FN>
The Notes to Consolidated Financial Statements are an integral part of this statement and appear on pages 51 to 77 of
Consolidated Natural Gas Company's Annual Report on Form 10-K for the year ended December 31, 1994, incorporated herein
by reference.
( ) denotes negative amount.
</FN>
</TABLE>
<PAGE> 46
<TABLE>
-PAGE 14
CONSOLIDATED NATURAL GAS COMPANY
CONSOLIDATING INCOME STATEMENT
For the Year Ended December 31, 1994
(Thousands of Dollars)
<CAPTION>
REGISTERED
CONSOLIDATED HOLDING
Consolidated COMPANY
Natural Gas Eliminations Consolidated
Company and and Combined Natural Gas
Subsidiaries Adjustments* Total Company
<S> <C> <C> <C> <C>
OPERATING REVENUES
Regulated gas sales . . . . . . . . . . . . . . . . . . $1,679,235 $ (4,999) $1,684,234 $ -
Nonregulated gas sales . . . . . . . . . . . . . . . . . 723,626 (111,936) 835,562 -
Total gas sales . . . . . . . . . . . . . . . . . 2,402,861 (116,935) 2,519,796 -
Gas transportation and storage . . . . . . . . . . . . . 409,632 (107,015) 516,647 -
Other. . . . . . . . . . . . . . . . . . . . . . . . . . 223,535 (69,875) 293,410 -
Total operating revenues (Note 2) . . . . . . . . 3,036,028 (293,825) 3,329,853 -
OPERATING EXPENSES
Purchased gas . . . . . . . . . . . . . . . . . . . . . 1,424,020 (231,016) 1,655,036 -
Transport capacity and other purchased products . . . . 107,094 (5,987) 113,081 -
Operation expense . . . . . . . . . . . . . . . . . . . 600,421 (60,527) 660,948 5,727
Maintenance . . . . . . . . . . . . . . . . . . . . . . 89,154 - 89,154 -
Depreciation and amortization (Note 3) . . . . . . . . . 279,317 398 278,919 -
Taxes, other than income taxes . . . . . . . . . . . . . 192,617 - 192,617 2,655
Subtotal . . . . . . . . . . . . . . . . . . . . . 2,692,623 (297,132) 2,989,755 8,382
Operating income before income taxes . . . . . . . 343,405 3,307 340,098 (8,382)
Income taxes (Note 6) . . . . . . . . . . . . . . . . . 82,427 (149) 82,576 (7,745)
Operating income . . . . . . . . . . . . . . . . . 260,978 3,456 257,522 (637)
OTHER INCOME
Interest revenues . . . . . . . . . . . . . . . . . . . 5,006 (15) 5,021 12
Other-net . . . . . . . . . . . . . . . . . . . . . . . 4,688 - 4,688 (420)
Equity in earnings of subsidiary companies - consolidated - (193,640) 193,640 193,640
Interest revenues from affiliated companies - consolidated - (100,004) 100,004 88,484
Total other income . . . . . . . . . . . . . . . . 9,694 (293,659) 303,353 281,716
Income before interest charges . . . . . . . . . . 270,672 (290,203) 560,875 281,079
INTEREST CHARGES
Interest on long-term debt . . . . . . . . . . . . . . . 88,788 (81,769) 170,557 86,776
Other interest expense . . . . . . . . . . . . . . . . . 7,992 (14,472) 22,464 11,132
Allowance for funds used during construction . . . . . . (9,279) - (9,279) -
Total interest charges . . . . . . . . . . . . . . 87,501 (96,241) 183,742 97,908
NET INCOME . . . . . . . . . . . . . . . . . . . . . . . $ 183,171 $(193,962) $ 377,133 $183,171
Earnings per share of common stock . . . . .. . . . . . $1.97
Average common shares outstanding (thousands) . . . . . 93,000
<FN>
* The elimination journal entries pertaining to this consolidating financial statement are prepared in detail form,
showing the amounts pertaining to the Registrant and each subsidiary company, and are preserved with the Registrant's
copy of this Form U5S.
The Notes to Consolidated Financial Statements are an integral part of this statement and appear on pages 51 to 77 of
Consolidated Natural Gas Company's Annual Report on Form 10-K for the year ended December 31, 1994, incorporated herein
by reference.
( ) denotes negative amount.
</FN>
</TABLE>
<PAGE> 47
<TABLE>
-PAGE 15
CONSOLIDATED NATURAL GAS COMPANY
CONSOLIDATING INCOME STATEMENT (Continued)
For the Year Ended December 31, 1994
(Thousands of Dollars)
<CAPTION>
SUBSIDIARIES
Consolidated
Natural Gas CNG The East The Peoples
Service Transmission Ohio Gas Natural Gas
Company, Inc. Corporation Company Company
<S> <C> <C> <C> <C>
OPERATING REVENUES
Regulated gas sales . . . . . . . . . . . . . . . . . . $ - $ (9,194) $1,044,561 $318,479
Nonregulated gas sales . . . . . . . . . . . . . . . . . - 28,468 - -
Total gas sales . . . . . . . . . . . . . . . . . - 19,274 1,044,561 318,479
Gas transportation and storage . . . . . . . . . . . . . - 413,941 53,534 33,804
Other . . . . . . . . . . . . . . . . . . . . . . . . . 55,387 56,889 12,508 4,525
Total operating revenues (Note 2) . . . . .. . . 55,387 490,104 1,110,603 356,808
OPERATING EXPENSES
Purchased gas . . . . . . . . . . . . . . . . . . . . . - 30,251 707,958 167,746
Transport capacity and other purchased products . . . . - 27,071 - -
Operation expense . . . . . . . . . . . . . . . . . . . 49,802 145,585 179,700 77,675
Maintenance . . . . . . . . . . . . . . . . . . . . . . 1,089 29,979 24,964 17,666
Depreciation and amortization (Note 3) . . . . . . . . . 1,688 58,059 30,803 17,592
Taxes, other than income taxes . . . . . . . . . . . . . 1,586 39,448 94,119 24,256
Subtotal . . . . . . . . . . . . . . . . . . . . . 54,165 330,393 1,037,544 304,935
Operating income before income taxes . . . . . . . . . . 1,222 159,711 73,059 51,873
Income taxes (Note 6). . . . . . . . . . . . . . . . . . - 51,108 19,694 15,397
Operating income . . . . . . . . . . . . . . . . . 1,222 108,603 53,365 36,476
OTHER INCOME
Interest revenues . . . . . . . . . . . . . . . . . . . - 2,439 1,571 -
Other-net . . . . . . . . . . . . . . . . . . . . . . . 11 3,212 440 (491)
Equity in earnings of subsidiary companies - consolidated - - - -
Interest revenues from affiliated companies - consolidated 39 3,866 52 -
Total other income . . .. . . . . . . . . . . . . 50 9,517 2,063 (491)
Income before interest charges . . . . . . . . . . 1,272 118,120 55,428 35,985
INTEREST CHARGES
Interest on long-term debt . . . . . . . . . . . . . . . 1,168 25,194 14,133 9,762
Other interest expense . . . . . . . . . . . . . . . . . 104 6,038 42 1,978
Allowance for funds used during construction . . . . . . - (1,167) (111) (13)
Total interest charges . . . . . . . . . . . . . . 1,272 30,065 14,064 11,727
NET INCOME . . . . . . . . . . . . . . . . . . . . . . . $ - $ 88,055 $ 41,364 $ 24,258
<FN>
The Notes to Consolidated Financial Statements are an integral part of this statement and appear on pages 51 to 77 of
Consolidated Natural Gas Company's Annual Report on Form 10-K for the year ended December 31, 1994, incorporated herein
by reference.
( ) denotes negative amount.
</FN>
</TABLE>
<PAGE> 48
<TABLE>
-PAGE 16
CONSOLIDATED NATURAL GAS COMPANY
CONSOLIDATING INCOME STATEMENT (Continued)
For the Year Ended December 31, 1994
(Thousands of Dollars)
<CAPTION>
SUBSIDIARIES
Virginia Hope West Ohio CNG CNG
Natural Gas, Gas Producing Energy
Gas, Inc. Inc. Company Company Company
<S> <C> <C> <C> <C> <C>
OPERATING REVENUES
Regulated gas sales . . . . . . . . . . . . . . . . . . $158,413 $103,144 $50,833 $ - $ -
Nonregulated gas sales . . . . . . . . . . . . . . . . . - - - 348,487 -
Total gas sales . . . . . . . . . . . . . . . . . 58,413 103,144 50,833 348,487 -
Gas transportation and storage . . . . . . . . . . . . . 2,800 7,535 4,352 283 -
Other . . . . . . . . . . . . . . . . . . . . . . . . . 9,240 1,682 203 109,854 12,322
Total operating revenues (Note 2) . . . . . . . . 170,453 112,361 55,388 458,624 12,322
OPERATING EXPENSES
Purchased gas . . . . . . . . . . . . . . . . . . . . . 86,470 58,703 34,090 130,878 -
Transport capacity and other purchased products . . . . - - - 43,496 8,384
Operation expense . . . . . . . . . . . . . . . . . . . 34,638 28,808 9,881 103,779 2,379
Maintenance . . . . . . . . . . . . . . . . . . . . . . 4,396 5,293 1,395 4,372 -
Depreciation and amortization (Note 3) . . . . . . . . . 12,701 4,421 1,884 151,035 369
Taxes, other than income taxes . . . . . . . . . . . . . 8,490 8,801 4,210 7,450 303
Subtotal . . . . . . . . . . . . . . . . . . . . . 146,695 106,026 51,460 441,010 11,435
Operating income before income taxes . . . . . . . 23,758 6,335 3,928 17,614 887
Income taxes (Note 6) . . . . . . . . . . . . . . . . . 4,091 769 959 (7,660) 923
Operating income . . . . . . . . . . . . . . . . . 19,667 5,566 2,969 25,274 (36)
OTHER INCOME
Interest revenues . . . . . . . . . . . . . . . . . . . 1 430 2 518 6
Other-net . . . . . . . . . . . . . . . . . . . . . . . (179) (10) (13) 88 2,042
Equity in earnings of subsidiary companies - consolidated - - - - -
Interest revenues from affiliated companies - consolidated 22 - - 4,643 477
Total other income . . . . . . . . . . . . . . . . (156) 420 (11) 5,249 2,525
Income before interest charges . . . . . . . . . . 19,511 5,986 2,958 30,523 2,489
INTEREST CHARGES
Interest on long-term debt . . . . . . . . . . . . . . 7,463 2,424 809 21,752 620
Other interest expense . . . . . . . . . . . . . . . . 1,076 573 4 321 344
Allowance for funds used during construction . . . . . - (25) (14) (7,949) -
Total interest charges . . . . . . . . . . . . . . 8,539 2,972 799 14,124 964
NET INCOME . . . . . . . . . . . . . . . . . . . . . . $ 10,972 $ 3,014 $ 2,159 $ 16,399 $ 1,525
<FN>
The Notes to Consolidated Financial Statements are an integral part of this statement and appear on pages 51 to 77 of
Consolidated Natural Gas Company's Annual Report on Form 10-K for the year ended December 31, 1994, incorporated herein
by reference.
( ) denotes negative amount.
</FN>
</TABLE>
<PAGE> 49
<TABLE>
-PAGE 17
CONSOLIDATED NATURAL GAS COMPANY
CONSOLIDATING INCOME STATEMENT (Continued)
For the Year Ended December 31, 1994
(Thousands of Dollars)
<CAPTION>
SUBSIDIARIES
CNG Energy CNG Power CNG Storage Consolidated CNG
Services Services Service System LNG Research
Corporation Corporation Company Company Company
<S> <C> <C> <C> <C> <C>
OPERATING REVENUES
Regulated gas sales . . . . . . . . . . . . . . . . . $ - $ - $ - $17,998 $ -
Nonregulated gas sales . . . . . . . . . . . . . . . . 458,607 - - - -
Total gas sales . . . . . . . . . . . . . . . . 458,607 - - 17,998 -
Gas transportation and storage . . . . . . . . . . . . 398 - - - -
Other . . . . . . . . . . . . . . . . . . . . . . . . 27,335 - 3,465 - -
Total operating revenues (Note 2) . . . . . . . 486,340 - 3,465 17,998 -
OPERATING EXPENSES
Purchased gas . . . . . . . . . . . . . . . . . . . . 438,940 - - - -
Transport capacity and other purchased products . . . 34,130 - - - -
Operation expense . . . . . . . . . . . . . . . . . . 9,471 37 7 13,180 295
Maintenance . . . . . . . . . . . . . . . . . . . . . - - - - -
Depreciation and amortization (Note 3) . . . . . . . . 367 - - - -
Taxes, other than income taxes . . . . . . . . . . . . 605 - 99 (1) -
Subtotal . . . . . . . . . . . . . . . . . . . . 483,513 37 106 13,179 295
Operating income before income taxes . . . . . . 2,827 (37) 3,359 4,819 (295)
Income taxes (Note 6). . . . . . . . . . . . . . . . . 820 (7) 1,247 3,225 (115)
Operating income . . . . . . . . . . . . . . . . 2,007 (30) 2,112 1,594 (180)
OTHER INCOME
Interest revenues . . . . . . . . . . . . . . . . . . 11 - - 28 -
Other-net . . . . . . . . . . . . . . . . . . . . . . 3 3 - - -
Equity in earnings of subsidiary companies - consolidated - - - - -
Interest revenues from affiliated companies - consolidated - - 24 2,163 1
Total other income . . . . . . . . . . . . . . . 14 3 24 2,191 1
Income before interest charges . . . . . . . . . 2,021 (27) 2,136 3,785 (179)
INTEREST CHARGES
Interest on long-term debt . . . . . . . . . . . . . . . - - 456 - -
Other interest expense . . . . . . . . . . . . . . . . . 851 - 1 - -
Allowance for funds used during construction . . . . . . - - - - -
Total interest charges . . . . . . . . . . . . . . 851 - 457 - -
NET INCOME . . . . . . . . . . . . . . . . . . . . . . . $ 1,170 $ (27) $ 1,679 $ 3,785 $ (179)
<FN>
The Notes to Consolidated Financial Statements are an integrart of this statement and appear on pages 51 to 77 of
Consolidated Natural Gas Company's Annual Report on Form 10-K for the year ended December 31, 1994, incorporated
herein by reference.
( ) denotes negative amount.
</FN>
</TABLE>
<PAGE> 50
<TABLE>
-PAGE 18
CONSOLIDATED NATURAL GAS COMPANY
CONSOLIDATING INCOME STATEMENT (Concluded)
For the Year Ended December 31, 1994
(Thousands of Dollars)
<CAPTION>
SUBSIDIARIES
CNG CNG
Coal Financial
Company Services, Inc.
<S> <C> <C>
OPERATING REVENUES
Regulated gas sales . . . . . . . . . . . . . . . . . . . $ - $ -
Nonregulated gas sales . . . . . . . . . . . . . . . . . . - -
Total gas sales . . . . . . . . . . . . . . . . . . - -
Gas transportation and storage . . . . . . . . . . . . . . - -
Other . . . . . . . . . . . . . . . . . . . . . . . . . . - -
Total operating revenues (Note 2) . . . . . . . . . - -
OPERATING EXPENSES
Purchased gas . . . . . . . . . . . . . . . . . . . . . . - -
Transport capacity and other purchased products . . . . . - -
Operation expense . . . . . . . . . . . . . . . . . . . . (16) -
Maintenance . . . . . . . . . . . . . . . . . . . . . . . - -
Depreciation and amortization (Note 3) . . . . . . . . . . - -
Taxes, other than income taxes . . . . . . . . . . . . . . 596 -
Subtotal . . . . . . . . . . . . . . . . . . . . . . 580 -
Operating income before income taxes . . . . . . . . (580) -
Income taxes (Note 6). . . . . . . . . . . . . . . . . . . (130) -
Operating income . . . . . . . . . . . . . . . . . . (450) -
OTHER INCOME
Interest revenues . . . . . . . . . . . . . . . . . . . . 3 -
Other-net . . . . . . . . . . . . . . . . . . . . . . . . 2 -
Equity in earnings of subsidiary companies - consolidated - -
Interest revenues from affiliated companies - consolidated 233 -
Total other income .. . . . . . . . . . . . . . . . 238 -
Income before interest charges . . . . . . . . . . . (212) -
INTEREST CHARGES
Interest on long-term debt . . . . . . . . . . . . . . . . - -
Other interest expense . . . . . . . . . . . . . . . . . . - -
Allowance for funds used during construction . . . . . . . - -
Total interest charges . . . . . . . . . . . . . . . . . . - -
NET INCOME . . . . . . . . . . . . . . . . . . . . . $ (212) $ -
<FN>
The Notes to Consolidated Financial Statements are an integral part of this statement and appear on pages 51 to 77 of
Consolidated Natural Gas Company's Annual Report on Form 10-K for the year ended December 31, 1994, incorporated herein by
reference.
( ) denotes negative amount.
</FN>
</TABLE>
<PAGE> 51
<TABLE>
-PAGE 19
CONSOLIDATED NATURAL GAS COMPANY
CONSOLIDATING STATEMENT OF RETAINED EARNINGS
For the Year Ended December 31, 1994
(Thousands of Dollars)
<CAPTION>
REGISTERED
CONSOLIDATED HOLDING
Consolidated COMPANY
Natural Gas Eliminations Consolidated
Company and and Combined Natural Gas
Subsidiaries Adjustments* Total Company
<S> <C> <C> <C> <C>
RETAINED EARNINGS
Balance at December 31, 1993 . . . . . . . . . . . . $1,466,783 $(595,758) $2,062,541 $1,466,783
Adjustments:
Merger of The River Gas Company
with The East Ohio Gas Company
effective July 1994 . . . . . . . . . . . . . . . - - - -
Purchase of CNG Lakewood, Inc. by
CNG Power Services Corporation
from CNG Energy Company effective
November 30, 1994 . . . . . . . . . . . . . . . . - - - -
Net income for the year 1994 per accompanying
income statement . . . . . . . . . . . . . . . . . 183,171 (193,962) 377,133 183,171
Total . . . . . . . . . . . . . . . . . . . . . 1,649,954 (789,720) 2,439,674 1,649,954
Dividends declared on common stock - cash (Note 9) . (180,461) 206,427 (386,888) (180,461)
Pension liability adjustment (Note 4) . . . . . . . . 386 - 386 386
Balance at December 31, 1994 (Note 11) . . . . . . . $1,469,879 $(583,293) $2,053,172 $1,469,879
<FN>
* The elimination journal entries pertaining to this consolidating financial statement are prepared in detail form,
showing the amounts pertaining to the Registrant and each subsidiary company, and are preserved with the Registrant's
copy of this Form U5S.
The Notes to Consolidated Financial Statements are an integral part of this statement and appear on pages 51 to 77 of
Consolidated Natural Gas Company's Annual Report on Form 10-K for the year ended December 31, 1994, incorporated herein by
reference.
( ) denotes negative amount.
</FN>
</TABLE>
<PAGE> 52
<TABLE>
-PAGE 20
CONSOLIDATED NATURAL GAS COMPANY
CONSOLIDATING STATEMENT OF RETAINED EARNINGS (Continued)
For the Year Ended December 31, 1994
(Thousands of Dollars)
<CAPTION>
SUBSIDIARIES
Consolidated
Natural Gas CNG The East The Peoples
Service Transmission Ohio Gas Natural Gas
Company, Inc. Corporation Company Company
<S> <C> <C> <C> <C>
RETAINED EARNINGS
Balance at December 31, 1993 . . . . . . . . . . . . . . $ - $147,065 $199,166 $ 76,103
Adjustments:
Merger of The River Gas Company
with The East Ohio Gas Company
effective July 1994 . . . . . . . . . . . . . . . . . - - 2,975 -
Purchase of CNG Lakewood, Inc. by
CNG Power Services Corporation
from CNG Energy Company effective
November 30, 1994 . . . . . . . . . . . . .. . . . . - - - -
Net income for the year 1994 per accompanying
income statement . . . . . . . . . . . . . . . . . . . - 88,055 41,364 24,258
Total . . . . . . . . . . . . . . . . . . . . . . . - 235,120 243,505 100,361
Dividends declared on common stock - cash (Note 9) . . . - (89,651) (53,503) (26,934)
Pension liability adjustment (Note 4) . . . . . . . . . . - - - -
Balance at December 31, 1994 (Note 11) . . . . . . . . . $ - $145,469 $190,002 $ 73,427
<FN>
The Notes to Consolidated Financial Statements are an integral part of this statement and appear on pages 51 to 77 of
Consolidated Natural Gas Company's Annual Report on Form 10-K for the year ended December 31, 1994, incorporated herein by
reference.
( ) denotes negative amount.
</FN>
</TABLE>
<PAGE> 53
<TABLE>
-PAGE 21
CONSOLIDATED NATURAL GAS COMPANY
CONSOLIDATING STATEMENT OF RETAINED EARNINGS (Continued)
For the Year Ended December 31, 1994
(Thousands of Dollars)
<CAPTION>
SUBSIDIARIES
Virginia Hope West Ohio The River CNG
Natural Gas, Gas Gas Producing
Gas, Inc. Inc. Company Company Company
<S> <C> <C> <C> <C> <C>
RETAINED EARNINGS
Balance at December 31, 1993 . . . . . . . . . . . $ 4,787 $18,016 $ 9,515 $ 2,975 $150,101
Adjustments:
Merger of The River Gas Company
with The East Ohio Gas Company
effective July 1994 . . . . . . . . . . . . . . - - - (2,975) -
Purchase of CNG Lakewood, Inc. by
CNG Power Services Corporation
from CNG Energy Company effective
November 30, 1994 . . . . . . . . . . . . .. . - - - - -
Net income for the year 1994 per accompanying
income statement . . . . . . . . . . . . . . . . 10,972 3,014 2,159 - 16,399
Total . . . . . . . . . . . . . . . . . . . . 15,759 21,030 11,674 - 166,500
Dividends declared on common stock - cash (Note 9) (11,350) (4,227) (2,202) - (14,408)
Pension liability adjustment (Note 4) . . . . . . . - - - - -
Balance at December 31, 1994 (Note 11) . . . . . . $ 4,409 $16,803 $ 9,472 $ - $152,092
<FN>
The Notes to Consolidated Financial Statements are an integral part of this statement and appear on pages 51 to 77 of
Consolidated Natural Gas Company's Annual Report on Form 10-K for the year ended December 31, 1994, incorporated herein by
reference.
( ) denotes negative amount.
</FN>
</TABLE>
<PAGE> 54
<TABLE>
-PAGE 22
CONSOLIDATED NATURAL GAS COMPANY
CONSOLIDATING STATEMENT OF RETAINED EARNINGS (Continued)
For the Year Ended December 31, 1994
(Thousands of Dollars)
<CAPTION>
SUBSIDIARIES
CNG CNG Energy CNG Power CNG Storage
Energy Services Services Service
Company Corporation Corporation Company
<S> <C> <C> <C> <C>
RETAINED EARNINGS
Balance at December 31, 1993 . . . . . . . . . . . $ 131 $ (69) $ - $ 14
Adjustments:
Merger of The River Gas Company
with The East Ohio Gas Company
effective July 1994 . . . . . . . . . . . . . . - - - -
Purchase of CNG Lakewood, Inc. by
CNG Power Services Corporation
from CNG Energy Company effective
November 30, 1994 . . . . . . . . . . . . . . . 428 - (428) -
Net income for the year 1994 per accompanying
income statement . . . . . . . . . . . . . . . . . 1,525 1,170 (27) 1,679
Total . . . . . . . . . . . . . . . . . . . . 2,084 1,101 (455) 1,693
Dividends declared on common stock - cash (Note 9) - - - (1,650)
Pension liability adjustment (Note 4). . . . . . . - - - -
Balance at December 31, 1994 (Note 11) . . . . . . $2,084 $1,101 $(455) $ 43
<FN>
The Notes to Consolidated Financial Statements are an integral part of this statement and appear on pages 51 to 77 of
Consolidated Natural Gas Company's Annual Report on Form 10-K for the year ended December 31, 1994, incorporated herein by
reference.
( ) denotes negative amount.
</FN>
</TABLE>
<PAGE> 55
<TABLE>
-PAGE 23
CONSOLIDATED NATURAL GAS COMPANY
CONSOLIDATING STATEMENT OF RETAINED EARNINGS (Concluded)
For the Year Ended December 31, 1994
(Thousands of Dollars)
<CAPTION>
SUBSIDIARIES
Consolidated CNG CNG CNG
System LNG Research Coal Financial
Company Company Company Services, Inc.
<S> <C> <C> <C> <C>
RETAINED EARNINGS
Balance at December 31, 1993 . . . . . . . . . . . . . $ (979) $(15,137) $ 4,070 $ -
Adjustments:
Merger of The River Gas Company
with The East Ohio Gas Company
effective July 1994 . . . . . . . . . . . . . . . . - - - -
Purchase of CNG Lakewood, Inc. by
CNG Power Services Corporation
from CNG Energy Company effective
November 30, 1994 . . . . . . . . . . . . . . . . . - - - -
Net income for the year 1994 per accompanying
income statement . . . . . . . . . . . . . . . . . . . 3,785 (179) (212) -
Total . . . . . . . . . . . . . . . . . . . . . . 2,806 (15,316) 3,858 -
Dividends declared on common stock - cash (Note 9) . . (2,502) - - -
Pension liability adjustment (Note 4) . . . . . . . . . - - - -
Balance at December 31, 1994 (Note 11) . . . . . . . . $ 304 $(15,316) $ 3,858 $ -
<FN>
The Notes to Consolidated Financial Statements are an integral part of this statement and appear on pages 51 to 77 of
Consolidated Natural Gas Company's Annual Report on Form 10-K for the year ended December 31, 1994, incorporated herein
by reference.
( ) denotes negative amount.
</FN>
</TABLE>
<PAGE> 56
<TABLE>
-PAGE 24
CONSOLIDATED NATURAL GAS COMPANY
CONSOLIDATING STATEMENT OF CASH FLOWS
For the Year Ended December 31, 1994
(Thousands of Dollars)
<CAPTION>
REGISTERED
CONSOLIDATED HOLDING
Consolidated COMPANY
Natural Gas Eliminations Consolidated
Company and and Combined Natural Gas
Subsidiaries Adjustments* Total Company
<S> <C> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income . . . . . . . . . . . . . . . . . . . . . . . $ 183,171 $(193,962) $ 377,133 $ 183,171
Adjustments to reconcile net income to net cash provided
by (used in) operating activities
Depreciation and amortization . . . . . . . . . . . . . 279,317 398 278,919 -
Deferred income taxes-net . . . . . . . . . . . . . . . (60,744) (149) (60,595) (1,125)
Investment tax credit . . . . . . . . . . . . . . . . . (2,567) - (2,567) -
Changes in current assets and current liabilities
Accounts receivable-net . . . . . . . . . . . . . . . 81,896 - 81,896 22
Receivables from affiliated cos. - consolidated . . . - (24,607) 24,607 (4,108)
Inventories . . . . . . . . . . . . . . . . . . . . . (48,566) 84 (48,650) -
Unrecovered gas costs . . . . . . . . . . . . . . . . 5,467 - 5,467 -
Accounts payable . . . . . . . . . . . . . . . . . . 11,198 - 11,198 (2,858)
Payables to affiliated cos. - consolidated . . . . . - 24,607 (24,607) (203)
Estimated rate contingencies and refunds . . . . . . 25,948 - 25,948 -
Amounts payable to customers . . . . . . . . . . . . 68,538 - 68,538 -
Taxes accrued . . . . . . . . . . . . . . . . . . . . (17,685) - (17,685) 725
Other-net . . . . . . . . . . . . . . . . . . . . . . (2,901) - (2,901) 170
Changes in other assets and other liabilities . . . . . 108,219 (11) 108,230 1,896
Excess of dividends received from sub. cos. over
equity in earnings thereof - consolidated . . . . . . . . - (4,175) 4,175 4,175
Other-net . . . . . . . . . . . . . . . . . . . . . . . 37 - 37 255
Net cash provided by (used in) operating activities . 631,328 (197,815) 829,143 182,120
CASH FLOWS FROM INVESTING ACTIVITIES
Plant construction and other property additions . . . . . (416,051) - (416,051) -
Proceeds from dispositions of prop., plant and equip.-net 164 - 164 -
Cost of other investments-net . . . . . . . . . . . . . . (14,902) - (14,902) -
Intrasystem money pool investments-net . . . . . . . . . - (419,539) 419,539 228,699
Intrasystem long-term financing-net . . . . . . . . . . . - 215,847 (215,847) (215,847)
Property transfers to (from) affiliates . . . . . . . . . - - - -
Net cash provided by (used in) investing activities . . . (430,789) (203,692) (227,097) 12,852
CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of common stock - Registrant . . . . . . . . . . 279 - 279 279
Commercial paper borrowings (or repayments)-net . . . . . (15,601) - (15,601) (15,601)
Dividends paid - Registrant . . . . . . . . . . . . . . . (180,415) - (180,415) (180,415)
Intrasystem long-term financing-net . . . . . . . . . . . - (215,847) 215,847 -
Intrasystem money pool borrowings (or repayments)-net . . - 419,539 (419,539) -
Dividends paid - subsidiary cos. - consolidated . . . . . - 197,815 (197,815) -
Other-net . . . . . . . . . . . . . . . . . . . . . . . . (1) - (1) (1)
Net cash provided by (used in) financing activities . . (195,738) 401,507 (597,245) (195,738)
Net increase (decrease) in cash and TCIs . . . . . . . . 4,801 - 4,801 (766)
CASH AND TCIs AT JANUARY 1, 1994 . . . . . . . . . . . . 27,122 - 27,122 1,293
CASH AND TCIs AT DECEMBER 31, 1994 . . . . . . . . . . . $ 31,923 $ - $ 31,923 $ 527
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid for
Interest (net of amounts capitalized) . . . . . . . . . $ 91,011 $ (87,630) $ 178,641 $ 95,540
Income taxes (net of refunds) . . . . . . . . . . . . . $ 154,860 $ - $ 154,860 $ (7,859)
Non-cash financing activities
Conversion of 7 1/4% Convertible Subordinated Debentures $ 3,795 $ - $ 3,795 $ 3,795
<FN>
* The eliminations and adjustments are those required to eliminate transactions among affiliated companies and
otherwise give effect to the adjusting and reclassifying entries to the consolidating balance sheets, income
statements and statements of retained earnings of the Registrant and its subsidiaries.
The Notes to Consolidated Financial Statements are an integral part of this statement and appear on pages 51 to 77 of
Consolidated Natural Gas Company's Annual Report on Form 10-K for the year ended December 31, 1994, incorporated herein
by reference.
( ) denotes negative amount.
</FN>
</TABLE>
<PAGE> 57
<TABLE>
-PAGE 25
CONSOLIDATED NATURAL GAS COMPANY
CONSOLIDATING STATEMENT OF CASH FLOWS (Continued)
For the Year Ended December 31, 1994
(Thousands of Dollars)
<CAPTION>
SUBSIDIARIES
Consolidated
Natural Gas CNG The East The Peoples
Service Transmission Ohio Gas Natural Gas
Company, Inc. Corporation Company Company
<S> <C> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income . . . . . . . . . . . . . . . . . . . . . . . $ - $ 88,055 $ 41,364 $ 24,258
Adjustments to reconcile net income to net cash provided
by (used in) operating activities
Depreciation and amortization . . . . . . . . . . . . . 1,688 58,059 30,803 17,592
Deferred income taxes-net . . . . . . . . . . . . . . . (220) (17,995) (36,630) (5,834)
Investment tax credit . . . . . . . . . . . . . . . . . - (438) (1,284) (502)
Changes in current assets and current liabilities
Accounts receivable-net . . . . . . . . . . . . . . . 115 5,483 39,472 6,383
Receivables from affiliated cos. - consolidated . . . (2,003) 20,236 100 -
Inventories . . . . . . . . . . . . . . . . . . . . . - 1,605 (27,752) (11,412)
Unrecovered gas costs . . . . . . . . . . . . . . . . - (9,879) - 13,483
Accounts payable . . . . . . . . . . . . . . . . . . 1,649 (7,884) 9,537 1,460
Payables to affiliated cos. - consolidated . . . . . 119 2,364 (9,311) (9,364)
Estimated rate contingencies and refunds . . . . . . - 35,302 6,328 (9,291)
Amounts payable to customers . . . . . . . . . . . . - (5,942) 70,308 6,309
Taxes accrued . . . . . . . . . . . . . . . . . . . . (312) 7,480 (20,755) 1,617
Other-net . . . . . . . . . . . . . . . . . . . . . . (3) (9,556) 8,606 1,121
Changes in other assets and other liabilities . . . . 226 84,385 (1,123) 4,650
Excess of dividends received from sub. cos. over
equity in earnings thereof - consolidated . . . . . . - - - -
Other-net . . . . . . . . . . . . . . . . . . . . . . (9) (196) (12) -
Net cash provided by (used in) operating activities . 1,250 251,079 109,651 40,470
CASH FLOWS FROM INVESTING ACTIVITIES
Plant construction and other property additions . . . . . (1,005) (106,737) (61,509) (37,595)
Proceeds from dispositions of prop., plant and equip.-net 9 1,882 (897) (1,331)
Cost of other investments-net . . . . . . . . . . . . . . - (2,322) - -
Intrasystem money pool investments-net . . . . . . . . . 209,455 - - -
Intrasystem long-term financing-net . . . . . . . . . . . - - - -
Property transfers to (from) affiliates . . . . . . . . . (4) 2,677 - (5)
Net cash provided by (used in) investing activities 208,455 (104,500) (62,406) (38,931)
CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of common stock - Registrant . . . . . . . . . . - - - -
Commercial paper borrowings (or repayments)-net . . . . . - - - -
Dividends paid - Registrant . . . . . . . . . . . . . . . - - - -
Intrasystem long-term financing-net . . . . . . . . . . . - 117,000 38,100 18,000
Intrasystem money pool borrowings (or repayments)-net . . (210,084) (168,465) (44,150) 5,335
Dividends paid - subsidiary cos. - consolidated . . . . . - (91,281) (40,911) (26,040)
Other-net . . . . . . . . . . . . . . . . . . . . . . . . - - - -
Net cash provided by (used in) financing activities (210,084) (142,746) (46,961) (2,705)
Net increase (decrease) in cash and TCIs . . . . . (379) 3,833 284 (1,166)
CASH AND TCIs AT JANUARY 1, 1994 . . . . . . . . . . . . 675 2,396 8,618 4,894
CASH AND TCIs AT DECEMBER 31, 1994 . . . . . . . . . . . $ 296 $ 6,229 $ 8,902 $ 3,728
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid for
Interest (net of amounts capitalized) . . . . . . . . . $ 1,256 $ 28,769 $ 13,161 $ 11,191
Income taxes (net of refunds) . . . . . . . . . . . . . $ 508 $ 66,744 $ 63,749 $ 20,143
Non-cash financing activities
Conversion of 7 1/4% Convertible Subordinated Debentures $ - $ - $ - $ -
<FN>
The Notes to Consolidated Financial Statements are an integral part of this statement and appear on pages 51 to 77 of
Consolidated Natural Gas Company's Annual Report on Form 10-K for the year ended December 31, 1994, incorporated herein by
reference.
( ) denotes negative amount.
</FN>
</TABLE>
<PAGE> 58
<TABLE>
-PAGE 26
CONSOLIDATED NATURAL GAS COMPANY
CONSOLIDATING STATEMENT OF CASH FLOWS (Continued)
For the Year Ended December 31, 1994
(Thousands of Dollars)
<CAPTION>
SUBSIDIARIES
Virginia Hope West Ohio CNG CNG
Natural Gas, Gas Producing Energy
Gas, Inc. Inc. Company Company Company
<S> <C> <C> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income . . . . . . . . . . . . . . . . . . . . . . . $ 10,972 $ 3,014 $ 2,159 $ 16,399 $ 1,525
Adjustments to reconcile net income to net cash provided
by (used in) operating activities
Depreciation and amortization . . . . . . . . . . . . . 12,701 4,421 1,884 151,035 369
Deferred income taxes-net . . . . . . . . . . . . . . . 2,622 82 1,011 909 1,558
Investment tax credit . . . . . . . . . . . . . . . . . (152) (137) (54) - -
Changes in current assets and current liabilities
Accounts receivable-net . . . . . . . . . . . . . . . 7,073 2,996 1,660 4,769 6
Receivables from affiliated cos. - consolidated . . . - 4,747 - 3,555 (529)
Inventories . . . . . . . . . . . . . . . . . . . . . (559) (3,553) (140) 894 (109)
Unrecovered gas costs . . . . . . . . . . . . . . . . - 2,934 (1,071) - -
Accounts payable . . . . . . . . . . . . . . . . . . 8,162 (2,101) (632) 12,923 (115)
Payables to affiliated cos. - consolidated . . . . . (687) (4,863) (88) 1,965 383
Estimated rate contingencies and refunds . . . . . . 1,966 (7,904) (453) - -
Amounts payable to customers . . . . . . . . . . . . (1,964) - (173) - -
Taxes accrued . . . . . . . . . . . . . . . . . . . . (1,695) (4,612) 55 (1,076) 1,049
Other-net . . . . . . . . . . . . . . . . . . . . . . 2,158 (1,487) (672) (6,148) 89
Changes in other assets and other liabilities . . . . . 1,257 2,230 185 (6,427) 1,166
Excess of dividends received from sub. cos. over
equity in earnings thereof - consolidated . . . . . . - - - - -
Other-net . . . . . . . . . . . . . . . . . . . . . . . - - - (1) -
Net cash provided by (used in) operating activities 41,854 (4,233) 3,671 178,797 5,392
CASH FLOWS FROM INVESTING ACTIVITIES
Plant construction and other property additions . . . . . (32,040) (9,560) (4,675) (160,466) (17)
Proceeds from dispositions of prop., plant and equip.-net (233) (22) (171) 927 -
Cost of other investments-net . . . . . . . . . . . . . . - - - - (12,580)
Intrasystem money pool investments-net . . . . . . . . . - - - 4,500 (11,605)
Intrasystem long-term financing-net . . . . . . . . . . . - - - - -
Property transfers to (from) affiliates . . . . . . . . . - (4) - (2,772) 510
Net cash provided by (used in) investing activities (32,273) (9,586) (4,846) (157,811) (23,692)
CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of common stock - Registrant . . . . . . . . . . - - - - -
Commercial paper borrowings (or repayments)-net . . . . . - - - - -
Dividends paid - Registrant . . . . . . . . . . . . . . . - - - - -
Intrasystem long-term financing-net . . . . . . . . . . . - 20,901 7,152 (4,326) 18,450
Intrasystem money pool borrowings (or repayments)-net . . 5,100 (2,990) (3,980) - (365)
Dividends paid - subsidiary cos. - consolidated . . . . . (13,250) (5,653) (2,396) (16,636) -
Other-net . . . . . . . . . . . . . . . . . . . . . . . . - - - - -
Net cash provided by (used in) financing activities (8,150) 12,258 776 (20,962) 18,085
Net increase (decrease) in cash and TCIs . . . . . 1,431 (1,561) (399) 24 (215)
CASH AND TCIs AT JANUARY 1, 1994 . . . . . . . . . . . . 552 3,451 1,392 3,195 370
CASH AND TCIs AT DECEMBER 31, 1994 . . . . . . . . . . . $ 1,983 $ 1,890 $ 993 $ 3,219 $ 155
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid for
Interest (net of amounts capitalized) . . . . . . . . . $ 8,235 $ 3,002 $ 684 $ 14 652 $ 897
Income taxes (net of refunds) . . . . . . . . . . . . . $ 3,167 $ 6,495 $ 256 $ (7,064) $ (1,609)
Non-cash financing activities
Conversion of 7 1/4% Convertible Subordinated Debentures $ - $ - $ - $ - $ -
<FN>
The Notes to Consolidated Financial Statements are an integral part of this statement and appear on pages 51 to 77 of
Consolidated Natural Gas Company's Annual Report on Form 10-K for the year ended December 31, 1994, incorporated herein
by reference.
( ) denotes negative amount.
</FN>
</TABLE>
<PAGE> 59
<TABLE>
-PAGE 27
CONSOLIDATED NATURAL GAS COMPANY
CONSOLIDATING STATEMENT OF CASH FLOWS (Continued)
For the Year Ended December 31, 1994
(Thousands of Dollars)
<CAPTION>
SUBSIDIARIES
CNG Energy CNG Power CNG Storage Consolidated CNG
Services Services Service System LNG Research
Corporation Corporation Company Company Company
<S> <C> <C> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income . . . . . . . . . . . . . . . . . . . . . . . $ 1,170 $ (27) $ 1,679 $ 3,785 $ (179)
Adjustments to reconcile net income to net cash provided
by (used in) operating activities
Depreciation and amortization . . . . . . . . . . . . . 367 - - - -
Deferred income taxes-net . . . . . . . . . . . . . . . (126) 3 - (4,850) -
Investment tax credit . . . . . . . . . . . . . . . . . - - - - -
Changes in current assets and current liabilities
Accounts receivable-net . . . . . . . . . . . . . . . 13,917 - - - -
Receivables from affiliated cos. - consolidated . . . 2,483 - (1) 109 27
Inventories . . . . . . . . . . . . . . . . . . . . . (7,624) - - - -
Unrecovered gas costs . . . . . . . . . . . . . . . . - - - - -
Accounts payable . . . . . . . . . . . . . . . . . . (8,879) 18 - - (3)
Payables to affiliated cos. - consolidated . . . . . (4,994) 66 - - 8
Estimated rate contingencies and refunds . . . . . . - - - - -
Amounts payable to customers . . . . . . . . . . . . - - - - -
Taxes accrued . . . . . . . . . . . . . . . . . . . . 286 (10) (285) (205) (35)
Other-net . . . . . . . . . . . . . . . . . . . . . . 2,820 - (1) 1 -
Changes in other assets and other liabilities . . . 6,622 (3) - 13,166 -
Excess of dividends received from sub. cos. over
equity in earnings thereof - consolidated . . . . . . - - - - -
Other-net . . . . . . . . . . . . . . . . . . . . - - - - -
Net cash provided by (used in) operating activities 6,042 47 1,392 12,006 (182)
CASH FLOWS FROM INVESTING ACTIVITIES
Plant construction and other property additions . .. . . (2,400) (47) - - -
Proceeds from dispositions of prop., plant and equip.-net - - - - -
Cost of other investments-net . . . . . . . . . . . . . . - - - - -
Intrasystem money pool investments-net . . . . . . . . . - - 240 (12,025) 55
Intrasystem long-term financing-net . . . . . . . . . . . - - - - -
Property transfers to (from) affiliates . . . . . . . . . 108 (510) - - -
Net cash provided by (used in) investing activities (2,292) (557) 240 (12,025) 55
CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of common stock - Registrant . . . . . . . . . . - - - - -
Commercial paper borrowings (or repayments)-net . . . . . - - - - -
Dividends paid - Registrant . . . . . . . . . . . . . . . - - - - -
Intrasystem long-term financing-net . . . . . . . . . . . - 520 - - 50
Intrasystem money pool borrowings (or repayments)-net . . 60 - - - -
Dividends paid - subsidiary cos. - consolidated . . . . . - - (1,648) - -
Other-net . . . . . . . . . . . . . . . . . . . . . . . . - - - - -
Net cash provided by (used in) financing activities 60 520 (1,648) - 50
Net increase (decrease) in cash and TCIs . . . . . 3,810 10 (16) (19) (77)
CASH AND TCIs AT JANUARY 1, 1994 . . . . . . . . . . . . 16 - 49 48 98
CASH AND TCIs AT DECEMBER 31, 1994 . . . . . . . . . . . $ 3,826 $ 10 $ 33 $ 29 $ 21
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid for
Interest (net of amounts capitalized) . . . . . . . . .$ 797 $ - $ 457 $ - $ -
Income taxes (net of refunds) . . . . . . . . . . . . .$ 840 $ - $ 1,482 $ 8,280 $ (80)
Non-cash financing activities
Conversion of 7 1/4% Convertible Subordinated Debentures $ - $ - $ - $ - $ -
<FN>
The Notes to Consolidated Financial Statements are an integral part of this statement and appear on pages 51 to 77 of
Consolidated Natural Gas Company's Annual Report on Form 10-K for the year ended December 31, 1994, incorporated herein
by reference.
( ) denotes negative amount.
</FN>
</TABLE>
<PAGE> 60
<TABLE>
-PAGE 28
CONSOLIDATED NATURAL GAS COMPANY
CONSOLIDATING STATEMENT OF CASH FLOWS (Concluded)
For the Year Ended December 31, 1994
(Thousands of Dollars)
<CAPTION>
SUBSIDIARIES
CNG CNG
Coal Financial
Company Services, Inc.
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income . . . . . . . . . . . . . . . . . . . . . . . . $ (212) $ -
Adjustments to reconcile net income to net cash provided
by (used in) operating activities
Depreciation and amortization . . . . . . . . . . . . . . - -
Deferred income taxes-net . . . . . . . . . . . . . . . . - -
Investment tax credit . . . . . . . . . . . . . . . . . . - -
Changes in current assets and current liabilities
Accounts receivable-net . . . . . . . . . . . . . . . . - -
Receivables from affiliated cos. - consolidated . . . . (9) -
Inventories . . . . . . . . . . . . . . . . . . . . . . - -
Unrecovered gas costs . . . . . . . . . . . . . . . . . - -
Accounts payable . . . . . . . . . . . . . . . . . . . (79) -
Payables to affiliated cos. - consolidated . . . . . . (2) -
Estimated rate contingencies and refunds . . . . . . . - -
Amounts payable to customers . . . . . . . . . . . . . - -
Taxes accrued . . . . . . . . . . . . . . . . . . . . . 8 -
Other-net . . . . . . . . . . . . . . . . . . . . . . . 1 -
Changes in other assets and other liabilities . . . . . . - -
Excess of dividends received from sub. cos. over
equity in earnings thereof - consolidated . . . . . . . - -
Other-net . . . . . . . . . . . . . . . . . . . . . . . . - -
Net cash provided by (used in) operating activities . (213) -
CASH FLOWS FROM INVESTING ACTIVITIES
Plant construction and other property additions . . . . . . - -
Proceeds from dispositions of prop., plant and equip.-net . - -
Cost of other investments-net . . . . . . . . . . . . . . . - -
Intrasystem money pool investments-net . . . . . . . . . . 220 -
Intrasystem long-term financing-net . . . . . . . . . . . . - -
Property transfers to (from) affiliates . . . . . . . . . . - -
Net cash provided by (used in) investing activities . 220 -
CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of common stock - Registrant . . . . . . . . . . . - -
Commercial paper borrowings (or repayments)-net . . . . . . - -
Dividends paid - Registrant . . . . . . . . . . . . . . . . - -
Intrasystem long-term financing-net . . . . . . . . . . . . - -
Intrasystem money pool borrowings (or repayments)-net . . . - -
Dividends paid - subsidiary cos. - consolidated . . . . . . - -
Other-net . . . . . . . . . . . . . . . . . . . . . . . . . - -
Net cash provided by (used in) financing activities . - -
Net increase (decrease) in cash and TCIs . . . . . . 7 -
CASH AND TCIs AT JANUARY 1, 1994 . . . . . . . . . . . . . 34 41
CASH AND TCIs AT DECEMBER 31, 1994 . . . . . . . . . . . . $ 41 $ 41
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid for
Interest (net of amounts capitalized) . . . . . . . . . . $ - $ -
Income taxes (net of refunds) . . . . . . . . . . . . . . $ (192) $ -
Non-cash financing activities
Conversion of 7 1/4% Convertible Subordinated Debentures $ - $ -
<FN>
The Notes to Consolidated Financial Statements are an integral part of this statement and appear on pages 51 to 77
of Consolidated Natural Gas Company's Annual Report on Form 10-K for the year ended December 31, 1994, incorporated
herein by reference.
( ) denotes negative amount.
</FN>
</TABLE>
<PAGE> 61
<TABLE>
ITEM 6(b), PAGE 29
BALANCE SHEET
CONSOLIDATED
CONSOLIDATED NATURAL GAS COMPANY
AND SUBSIDIARIES - CONSOLIDATED
BALANCE SHEET AT DECEMBER 31, 1994
(In thousands of dollars)
ASSETS
<CAPTION>
Pro Forma Entries
(Page 37)
_______________________________
Per File No. This Pro
Books 70-8107 Application Forma
___________ _______________ ______________ ___________
<S> <C> <C> <C> <C>
PROPERTY, PLANT AND EQUIPMENT
Gas utility and other plant $ 4,546,753 $ 4,546,753
Accumulated depreciation and
amortization (1,686,788) (1,686,788)
___________ _________ _________ ___________
Net gas utility and other plant 2,859,965 - - 2,859,965
___________ _________ _________ ___________
Exploration and production properties 3,130,203 3,130,203
Accumulated depreciation and
amortization (1,963,522) (1,963,522)
___________ _________ _________ ___________
Net exploration and
production properties 1,166,681 - - 1,166,681
___________ _________ _________ ___________
Net property, plant and
equipment 4,026,646 - - 4,026,646
___________ _________ _________ ___________
CURRENT ASSETS
Cash and temporary cash investments 31,923 (3)$ 148,699 (SP)$ 510,000 690,622
Accounts receivable
Customers 407,145 407,145
Unbilled revenues and other 146,653 146,653
Allowance for doubtful accounts (7,507) (7,507)
Inventories, at cost
Gas stored - current portion
(LIFO method) 190,196 190,196
Materials and supplies
(average cost method) 35,072 35,072
Unrecovered gas costs 13,135 13,135
Deferred income taxes - current 60,103 60,103
Prepayments and other current assets 188,019 188,019
___________ _________ _________ ___________
Total current assets 1,064,739 148,699 510,000 1,723,438
___________ _________ _________ ___________
REGULATORY AND OTHER ASSETS
Unamortized abandoned facilities 40,955 40,955
Other investments 54,682 54,682
Deferred charges and other
assets 331,651 (3) 200 - 331,851
___________ _________ _________ ___________
Total regulatory and
other assets 427,288 200 - 427,488
___________ _________ _________ ___________
Total assets $ 5,518,673 $ 148,899 $ 510,000 $ 6,177,572
=========== ========= ========= ===========
<FN>
(SP) refers to summary posting.
( ) denotes negative amount.
</TABLE>
<PAGE> 62
<TABLE>
ITEM 6(b), PAGE 30
BALANCE SHEET
CONSOLIDATED
CONSOLIDATED NATURAL GAS COMPANY
AND SUBSIDIARIES - CONSOLIDATED
BALANCE SHEET AT DECEMBER 31, 1994
(In thousands of dollars)
STOCKHOLDER'S EQUITY AND LIABILITIES
<CAPTION>
Pro Forma Entries
(Page 37)
_______________________________
Per File No. This Pro
Books 70-8107 Application Forma
___________ _______________ ______________ ___________
<S> <C> <C> <C> <C>
CAPITALIZATION
Common stockholders' equity
Common stock, par value $2.75 per share
Authorized - 200,000,000 shares
Issued - 93,027,847 shares $ 255,827 $ 255,827
Capital in excess of par value 458,628 458,628
Retained earnings 1,469,879 1,469,879
___________ _________ _________ ___________
Total common stockholders' equity 2,184,334 - - 2,184,334
___________ _________ _________ ___________
Long-term debt (Schedule, next page)
Debentures 891,738 (3)$ 148,899 - 1,040,637
Convertible subordinated debentures 244,235 244,235
Unsecured loan 16,000 16,000
___________ _________ _________ ___________
Total long-term debt 1,151,973 148,899 - 1,300,872
___________ _________ _________ ___________
Total capitalization 3,336,307 148,899 - 3,485,206
___________ _________ _________ ___________
CURRENT LIABILITIES
Current maturities on long-term debt 4,000 4,000
Commercial paper 440,000 - (1)$ 360,000 800,000
Bank line of credit - - (2) 150,000 150,000
Accounts payable 357,611 357,611
Estimated rate contingencies and refunds 83,404 83,404
Amounts payable to customers 96,140 96,140
Taxes accrued 94,413 94,413
Dividends declared 45,119 45,119
Other current liabilities 90,061 90,061
___________ _________ _________ ___________
Total current liabilities 1,210,748 - 510,000 1,720,748
___________ _________ _________ ___________
DEFERRED CREDITS
Deferred income taxes 758,633 758,633
Accumulated deferred investment tax
credits 33,229 33,229
Deferred credits and other liabilities 179,756 179,756
___________ _________ _________ ___________
Total deferred credits 971,618 - - 971,618
___________ _________ _________ ___________
COMMITMENTS AND CONTINGENCIES
___________ _________ _________ ___________
Total stockholders' equity and
liabilities $ 5,518,673 $ 148,899 $ 510,000 $ 6,177,572
=========== ========= ========= ===========
<FN>
</TABLE>
<PAGE> 63
<TABLE>
ITEM 6(b), PAGE 31
SCHEDULE OF LONG-
TERM DEBT
CONSOLIDATED
CONSOLIDATED NATURAL GAS COMPANY
AND SUBSIDIARIES - CONSOLIDATED
SCHEDULE OF LONG-TERM DEBT AT DECEMBER 31, 1994
(In thousands of dollars)
<CAPTION>
Pro Forma Entries
(Page 37)
_________________
Per File No. Pro
Books 70-8107 Forma
___________ _______________ ______________
<S> <C> <C> <C>
LONG-TERM DEBT
Debentures
Parent Company:
7-3/8% Debentures Due April 1, 2005 $ - (3)$ 150,000 $ 150,000
6-5/8% Debentures Due December 1, 2013 150,000 150,000
5-3/4% Debentures Due August 1, 2003 150,000 150,000
5-7/8% Debentures Due October 1, 1998 150,000 150,000
8-3/4% Debentures Due October 1, 2019 150,000 150,000
8-3/4% Debentures Due June 1, 1999 100,000 100,000
9-3/8% Debentures Due February 1, 1997 100,000 100,000
8-5/8% Debentures Due December 1, 2011 100,000 100,000
Unamortized debt discount (8,262) (3) (1,101) (9,363)
___________ _________ ___________
891,738 148,899 1,040,637
___________ _________ ___________
7-1/4% Convertible Subordinated Debentures
Due December 15, 2015 - Parent Company 246,205 246,205
Unamortized debt discount (1,970) (1,970)
___________ _________ ___________
244,235 - 244,235
___________ _________ ___________
9.94% Unsecured loan due January 1, 1999
Subsidiary Company 16,000 - 16,000
___________ _________ ___________
Total long-term debt $ 1,151,973 $ 148,899 $ 1,300,872
=========== ========= ===========
<FN>
( ) denotes negative amount.
</TABLE>
<PAGE> 64
<TABLE>
ITEM 6(b), PAGE 32
INCOME STATEMENT
CONSOLIDATED
CONSOLIDATED NATURAL GAS COMPANY
AND SUBSIDIARIES - CONSOLIDATED
INCOME STATEMENT FOR THE YEAR 1994
(In thousands of dollars)
<CAPTION>
Per Pro Forma Entries Pro
Books (Page 38) Forma
___________ _________________ ______________
<S> <C> <C> <C>
OPERATING REVENUES
Regulated gas sales $ 1,679,235 $ 1,679,235
Nonregulated gas sales 723,626 723,626
___________ ________ ___________
Total gas sales 2,402,861 - 2,402,861
Gas transportation and storage 409,632 409,632
Other 223,535 223,535
___________ ________ ___________
Total operating revenues 3,036,028 - 3,036,028
___________ ________ ___________
OPERATING EXPENSES
Purchased gas 1,424,020 1,424,020
Transport capacity and other
purchased products 107,094 107,094
Operation expense 600,421 600,421
Maintenance 89,154 89,154
Depreciation and amortization 279,317 279,317
Taxes, other than income taxes 192,617 192,617
___________ ________ ___________
Subtotal 2,692,623 - 2,692,623
___________ ________ ___________
Operating income before
income taxes 343,405 343,405
Income taxes 82,427 (4)$(10,563) 71,864
___________ ________ ___________
Operating income 260,978 10,563 271,541
___________ ________ ___________
OTHER INCOME
Interest revenues 5,006 5,006
Other-net 4,688 4,688
___________ ________ ___________
Total other income 9,694 - 9,694
___________ ________ ___________
Income before interest charges 270,672 10,563 281,235
___________ ________ ___________
INTEREST CHARGES
Interest on long-term debt 88,788 (4) 11,193 99,981
Other interest expense 7,992 (4) 18,987 26,979
Allowance for funds used during
construction (9,279) (9,279)
___________ ________ ___________
Total interest charges 87,501 30,180 117,681
___________ ________ ___________
NET INCOME $ 183,171 $(19,617) $ 163,554
=========== ======== ===========
<FN>
( ) denotes negative amount.
</TABLE>
<PAGE> 65
<TABLE>
ITEM 6(b), PAGE 33
BALANCE SHEET
PARENT COMPANY
CONSOLIDATED NATURAL GAS COMPANY
BALANCE SHEET AT DECEMBER 31, 1994
(In thousands of dollars)
ASSETS
<CAPTION>
Pro Forma Entries
(Pages 37 and 39)
________________________________
Previous
Authorizations*/
Per Section 32(g) This Pro
Books exemption Application Forma
___________ _______________ ________________ ___________
<S> <C> <C> <C> <C>
INVESTMENTS
Investments in subsidiaries -
consolidated
Common stock, at equity $ 2,374,768 (7) $ 185 - $ 2,374,953
Long-term notes 1,142,317 1,142,317
___________ _________ __________ ___________
Total investments 3,517,085 185 - 3,517,270
___________ _________ __________ ___________
CURRENT ASSETS
Cash 527 (SP) 148,514 (SP)$ (581,357) (432,316)**
Accounts receivable
Receivables from subsidiaries -
consolidated 212,719 - (SP) 1,091,357 1,304,076
Other 81 81
Prepayments and other current assets 48,617 48,617
___________ _________ __________ ___________
Total current assets 261,944 148,514 510,000 920,458
___________ _________ __________ ___________
DEFERRED CHARGES 1,609 (3) 200 - 1,809
___________ _________ __________ ___________
Total assets $ 3,780,638 $ 148,899 $ 510,000 $ 4,439,537
=========== ========= ========== ===========
<FN>
(SP) refers to summary posting.
( ) denotes negative amount.
*File Nos. 70-8107 and 70-8415.
**The indicated net deficiency in funds available for financing the transactions set forth herein
is expected to be met from internal cash generation.
</TABLE>
<PAGE> 66
<TABLE>
ITEM 6(b), PAGE 34
BALANCE SHEET
PARENT COMPANY
CONSOLIDATED NATURAL GAS COMPANY
BALANCE SHEET AT DECEMBER 31, 1994
(In thousands of dollars)
STOCKHOLDERS' EQUITY AND LIABILITIES
<CAPTION>
Pro Forma Entries
(Page 37)
_______________________________
Per File No. This Pro
Books 70-8107 Application Forma
___________ _______________ ______________ ___________
<S> <C> <C> <C> <C>
CAPITALIZATION
Common stockholders' equity
Common stock, par value $2.75 per share
Authorized - 200,000,000 shares
Issued - 93,027,847 shares $ 255,827 $ 255,827
Capital in excess of par value 418,663 418,663
Retained earnings 1,469,879 1,469,879
___________ _________ _________ ___________
Total common stockholders' equity 2,144,369 - - 2,144,369
___________ _________ _________ ___________
Long-term debt (Schedule, next page)
Debentures 891,738 (3)$ 148,899 - 1,040,637
Convertible subordinated debentures 244,235 244,235
___________ _________ _________ ___________
Total long-term debt 1,135,973 148,899 - 1,284,872
___________ _________ _________ ___________
Total capitalization 3,280,342 148,899 - 3,429,241
___________ _________ _________ ___________
CURRENT LIABILITIES
Commercial paper 440,000 - (1)$ 360,000 800,000
Bank line of credit - - (2) 150,000 150,000
Payables to subsidiaries - consolidated 159 159
Dividends declared 45,119 45,119
Other accruals and current liabilities 18,130 18,130
___________ _________ _________ ___________
Total current liabilities 503,408 - 510,000 1,013,408
___________ _________ _________ ___________
DEFERRED CREDITS
Deferred income taxes 3,188 3,188
Other deferred credits (6,300) (6,300)
___________ _________ _________ ___________
Total deferred credits (3,112) - - (3,112)
___________ _________ _________ ___________
COMMITMENTS AND CONTINGENCIES
___________ _________ _________ ___________
Total stockholders' equity and
liabilities $ 3,780,638 $ 148,899 $ 510,000 $ 4,439,537
=========== ========= ========= ===========
<FN>
( ) denotes negative amount.
</TABLE>
<PAGE> 67
<TABLE>
ITEM 6(b), PAGE 35
SCHEDULE OF LONG-
TERM DEBT
PARENT COMPANY
CONSOLIDATED NATURAL GAS COMPANY
SCHEDULE OF LONG-TERM DEBT AT DECEMBER 31, 1994
(In thousands of dollars)
<CAPTION>
Pro Forma Entries
(Page 37)
_________________
Per File No. Pro
Books 70-8107 Forma
___________ _______________ ______________
<S> <C> <C> <C>
LONG-TERM DEBT
Debentures
7-3/8% Debentures Due April 1, 2005 $ - (3)$ 150,000 $ 150,000
6-5/8% Debentures Due December 1, 2013 150,000 150,000
5-3/4% Debentures Due August 1, 2003 150,000 150,000
5-7/8% Debentures Due October 1, 1998 150,000 150,000
8-3/4% Debentures Due October 1, 2019 150,000 150,000
8-3/4% Debentures Due June 1, 1999 100,000 100,000
9-3/8% Debentures Due February 1, 1997 100,000 100,000
8-5/8% Debentures Due December 1, 2011 100,000 100,000
Unamortized debt discount (8,262) (3) (1,101) (9,363)
___________ _________ ___________
891,738 148,899 1,040,637
___________ _________ ___________
7-1/4% Convertible Subordinated Debentures
Due December 15, 2015 246,205 246,205
Unamortized debt discount (1,970) (1,970)
___________ _________ ___________
244,235 - 244,235
___________ _________ ___________
Total long-term debt $ 1,135,973 $ 148,899 $ 1,284,872
=========== ========= ===========
<FN>
( ) denotes negative amount.
</TABLE>
<PAGE> 68
ITEM 6(b), PAGE 36
INCOME STATEMENT
PARENT COMPANY
CONSOLIDATED NATURAL GAS COMPANY
INCOME STATEMENT FOR THE YEAR 1994 (NOTE)
(In thousands of dollars)
INCOME
Equity in earnings of subsidiaries - consolidated $193,640
Interest income from subsidiaries - consolidated 88,484
Other interest income 12
________
Total income 282,136
________
DEDUCTIONS FROM INCOME
Operation expense 5,727
Income taxes (7,745)
Interest expense 97,908
Other deductions 3,075
________
Total deductions from income 98,965
________
NET INCOME $183,171
========
Note: A pro forma income statement for the Parent Company has not been
included inasmuch as interest expense on the additional long- and
short-term debt to be incurred would be offset by income from the
related ultimate investments in the subsidiaries.
<PAGE> 69
ITEM 6(b), PAGE 37
STATEMENT OF
PRO FORMA ADJUSTING
ENTRIES
STATEMENT OF PRO FORMA ADJUSTING ENTRIES
CONSOLIDATED NATURAL GAS COMPANY
AND SUBSIDIARIES - CONSOLIDATED
BALANCE SHEET
(1) Issuance and sale of commercial paper which would not exceed
$800,000,000 aggregate principal amount outstanding at any one
time. The foregoing amount has been reduced in this entry to
reflect the repayment of $440,000,000 of commercial paper notes
outstanding at December 31, 1994.
Debit Credit
____________ ____________
Cash $360,000,000
Commercial paper $360,000,000
(2) Issuance of $150,000,000 principal amount of short-term notes to a
bank under a line of credit.
Debit Credit
____________ ____________
Cash $150,000,000
Bank line of credit $150,000,000
(3) Issuance and sale on April 12, 1995, of $150,000,000 principal
amount of 7-3/8% Debentures Due April 1, 2005 (File No. 70-8107).
Debit Credit
____________ _____________
Cash $148,699,000
Deferred charges 200,000
Unamortized debt discount 1,101,000
7-3/8% Debentures Due
April 1, 2005 $150,000,000
<PAGE> 70
ITEM 6(b), PAGE 38
STATEMENT OF
PRO FORMA ADJUSTING
ENTRIES
(CONTINUED)
STATEMENT OF PRO FORMA ADJUSTING ENTRIES
CONSOLIDATED NATURAL GAS COMPANY
AND SUBSIDIARIES - CONSOLIDATED
INCOME STATEMENT
(4) Adjustment to reflect interest charges resulting from the
transactions set forth in Entries (1) and (3) above.
Increase
(Decrease)
____________
Interest on Long-Term Debt
Initial annual interest requirement,
including amortization of debt
discount and estimated expenses, on
the $150,000,000 principal amount of
7-3/8% Debentures Due April 1, 2005
sold on April 12, 1995 $ 11,193,000
Other Interest Expense
Estimated interest expense resulting
from estimated average $498,000,000
principal amount of commercial paper
notes to be outstanding during 1995
at an assumed average interest
rate of 6.0% $29,880,000
Less actual 1994 interest expense 10,893,000 18,987,000
___________ ____________
Total Interest Expense 30,180,000
Income Taxes
Estimated reduction in federal income
taxes resulting from increased
interest expense of $30,180,000 (10,563,000)
____________
Net Income (Decrease) $(19,617,000)
============
<PAGE> 71
ITEM 6(b), PAGE 39
STATEMENT OF
PRO FORMA ADJUSTING
ENTRIES
(CONTINUED)
CONSOLIDATED NATURAL GAS COMPANY
BALANCE SHEET
Entries (1), (2) and (3) above are also applicable to the balance sheet
of the Parent Company.
(5) Open account advances to be made to subsidiaries by the Parent
Company to provide financing for general corporate purposes,
including gas storage inventories, other working capital
requirements, and temporary financing of construction expenditures
until long-term financing is obtained and/or cash is generated
internally.
Debit Credit
______________ ______________
Receivables from subsidiaries -
consolidated $1,225,000,000
Cash $1,225,000,000
(6) Repayments to the Parent Company of amounts at December 31, 1994,
of open account advances made to subsidiaries to provide financing
for general corporate purposes, including gas storage inventories
and other working capital requirements.
Debit Credit
______________ ______________
Cash $ 133,643,000
Receivables from subsidiaries -
consolidated $ 133,643,000
(7) Issuance of capital stock to the Parent Company ($100,000 previously
authorized by the Commission at File No. 70-8415; $85,000 issued
under Section 32(g) exemption).
Debit Credit
______________ ______________
Common stock, at equity $ 185,000
Cash $ 185,000
<PAGE> 1 Exhibit G
Estimated Cash Flow for the Year 1995
For Consolidated Natural Gas Company and
Subsidiary Companies - Consolidated Basis
(000) Omitted
___________________________________________
Jan Feb
Cash Available
Cash and Temporary Cash Investments
Beginning Balance 31,923 29,609
Cash from retained earnings, depreciation
and change in working capital, etc. 112,928 146,272
_______ _______
Total cash available 144,851 175,881
Cash Requirements
Plant spending 33,742 31,961
Dividends 45,117
Sinking Fund Requirements & Other
_______ _______
Total cash requirements 33,742 77,078
_______ _______
Exess or deficit 111,109 98,803
_______ _______
Financing Activity
Proceeds from bank loans and commercial paper 358,500 313,500
Proceeds from debenture sales or stock issuance
Repayment of bank loans and commercial paper 440,000 358,500
_______ _______
Net additions (repayments) (81,500) (45,000)
Cash & temporary cash investments
Ending balance 29,609 53,803
======= =======
Month End Bank Loans and Commerical Paper Balances 358,500 313,500
<PAGE> 2
Estimated Cash Flow for the Year 1995
For Consolidated Natural Gas Company and
Subsidiary Companies - Consolidated Basis
(000) Omitted (Continued)
___________________________________________
March April
Cash Available
Cash and Temporary Cash Investments
Beginning Balance 53,803 128,898
Cash from retained earnings, depreciation
and change in working capital, etc. 134,406 73,085
_______ _______
Total cash available 188,209 201,983
Cash Requirements
Plant spending 30,811 42,485
Dividends
Sinking Fund Requirements & Other
_______ _______
Total cash requirements 30,811 42,485
_______ _______
Exess or deficit 157,398 159,498
_______ _______
Financing Activity
Proceeds from bank loans and commercial paper 285,000 295,000
Proceeds from debenture sales or stock issuance
Repayment of bank loans and commercial paper 313,500 285,000
_______ _______
Net additions (repayments) (28,500) 10,000
Cash & temporary cash investments
Ending balance 128,898 169,498
======= =======
Month End Bank Loans and Commerical Paper Balances 285,000 295,000
<PAGE> 3
Estimated Cash Flow for the Year 1995
For Consolidated Natural Gas Company and
Subsidiary Companies - Consolidated Basis
(000) Omitted (Continued)
___________________________________________
May June
Cash Available
Cash and Temporary Cash Investments
Beginning Balance 169,498 142,402
Cash from retained earnings, depreciation
and change in working capital, etc. 135,453 (57,990)
_______ _______
Total cash available 304,951 84,412
Cash Requirements
Plant spending 42,432 44,327
Dividends 45,117
Sinking Fund Requirements & Other
_______ _______
Total cash requirements 87,549 44,327
_______ _______
Exess or deficit 217,402 40,085
_______ _______
Financing Activity
Proceeds from bank loans and commercial paper 220,000 230,000
Proceeds from debenture sales or stock issuance
Repayment of bank loans and commercial paper 295,000 220,000
_______ _______
Net additions (repayments) (75,000) 10,000
Cash & temporary cash investments
Ending balance 142,402 50,085
======= =======
Month End Bank Loans and Commerical Paper Balances 220,000 230,000
<PAGE> 4
Estimated Cash Flow for the Year 1995
For Consolidated Natural Gas Company and
Subsidiary Companies - Consolidated Basis
(000) Omitted (Continued)
___________________________________________
July August
Cash Available
Cash and Temporary Cash Investments
Beginning Balance 50,085 51,220
Cash from retained earnings, depreciation
and change in working capital, etc. (154,737) (82,156)
_______ _______
Total cash available (104,652) (30,936)
Cash Requirements
Plant spending 44,961 39,188
Dividends 45,117
Sinking Fund Requirements & Other
_______ _______
Total cash requirements 44,961 84,305
_______ _______
Exess or deficit (149,613) (115,241)
_______ _______
Financing Activity
Proceeds from bank loans and commercial paper 430,833 593,666
Proceeds from debenture sales or stock issuance
Repayment of bank loans and commercial paper 230,000 430,833
_______ _______
Net additions (repayments) 200,833 162,833
Cash & temporary cash investments
Ending balance 51,220 47,592
======= =======
Month End Bank Loans and Commerical Paper Balances 430,833 593,666
<PAGE> 5
Estimated Cash Flow for the Year 1995
For Consolidated Natural Gas Company and
Subsidiary Companies - Consolidated Basis
(000) Omitted (Continued)
___________________________________________
Sept Oct
Cash Available
Cash and Temporary Cash Investments
Beginning Balance 47,592 45,590
Cash from retained earnings, depreciation
and change in working capital, etc. (52,848) (48,320)
_______ _______
Total cash available (5,256) (2,730)
Cash Requirements
Plant spending 36,987 35,448
Dividends
Sinking Fund Requirements & Other
_______ _______
Total cash requirements 36,987 35,448
_______ _______
Exess or deficit (42,243) (38,178)
_______ _______
Financing Activity
Proceeds from bank loans and commercial paper 681,499 763,332
Proceeds from debenture sales or stock issuance
Repayment of bank loans and commercial paper 593,666 681,499
_______ _______
Net additions (repayments) 87,833 81,833
Cash & temporary cash investments
Ending balance 45,590 43,655
======= =======
Month End Bank Loans and Commerical Paper Balances 681,499 763,332
<PAGE> 6
Estimated Cash Flow for the Year 1995
For Consolidated Natural Gas Company and
Subsidiary Companies - Consolidated Basis
(000) Omitted (Continued)
___________________________________________
Nov Dec
Cash Available
Cash and Temporary Cash Investments
Beginning Balance 43,655 39,021
Cash from retained earnings, depreciation
and change in working capital, etc. (15,203) (80,294)
_______ _______
Total cash available 28,452 (41,273)
Cash Requirements
Plant spending 29,147 33,137
Dividends 45,117
Sinking Fund Requirements & Other
_______ _______
Total cash requirements 74,264 33,137
_______ _______
Exess or deficit (45,812) (74,410)
_______ _______
Financing Activity
Proceeds from bank loans and commercial paper 848,165 955,000
Proceeds from debenture sales or stock issuance
Repayment of bank loans and commercial paper 763,332 848,165
_______ _______
Net additions (repayments) 84,833 106,835
Cash & temporary cash investments
Ending balance 39,021 32,425
======= =======
Month End Bank Loans and Commerical Paper Balances 848,165 955,000
<PAGE> 7
Estimated Cash Flow for the Year 1995
For Consolidated Natural Gas Company and
Subsidiary Companies - Consolidated Basis
(000) Omitted (Continued)
___________________________________________
Total
Cash Available
Cash and Temporary Cash Investments
Beginning Balance 31,923
Cash from retained earnings, depreciation
and change in working capital, etc. 110,596
__________
Total cash available 142,519
Cash Requirements
Plant spending 444,626
Dividends 180,468
Sinking Fund Requirements & Other 0
_________
Total cash requirements 625,094
_________
Exess or deficit (482,575)
_________
Financing Activity
Proceeds from bank loans and commercial paper 5,974,495
Proceeds from debenture sales or stock issuance
Repayment of bank loans and commercial paper 5,459,495
_________
Net additions (repayments) 515,000
Cash & temporary cash investments
Ending balance 32,425
=========
<PAGE> 8 Exhibit G
Estimated Cash Flow for the Year 1996
For Consolidated Natural Gas Company and
Subsidiary Companies - Consolidated Basis
(000) Omitted
___________________________________________
Jan Feb
Cash Available
Cash and Temporary Cash Investments
Beginning Balance 32,425 32,425
Cash from retained earnings, depreciation
and change in working capital, etc. 88,154 128,635
_______ _______
Total cash available 120,579 161,060
Cash Requirements
Plant spending 38,154 33,518
Dividends 45,117
Sinking Fund Requirements & Other
_______ _______
Total cash requirements 38,154 78,635
_______ _______
Exess or deficit 82,425 82,425
_______ _______
Financing Activity
Proceeds from bank loans and commercial paper 905,000 855,000
Proceeds from debenture sales or stock issuance
Repayment of bank loans and commercial paper 955,000 905,000
_______ _______
Net additions (repayments) (50,000) (50,000)
Cash & temporary cash investments
Ending balance 32,425 32,425
======= =======
Month End Bank Loans and Commerical Paper Balances 905,000 855,000
<PAGE> 9
Estimated Cash Flow for the Year 1996
For Consolidated Natural Gas Company and
Subsidiary Companies - Consolidated Basis
(000) Omitted (Continued)
___________________________________________
March April
Cash Available
Cash and Temporary Cash Investments
Beginning Balance 32,425 32,425
Cash from retained earnings, depreciation
and change in working capital, etc. 84,593 85,288
_______ _______
Total cash available 117,018 117,713
Cash Requirements
Plant spending 34,593 35,288
Dividends
Sinking Fund Requirements & Other
_______ _______
Total cash requirements 34,593 35,288
_______ _______
Exess or deficit 82,425 82,425
_______ _______
Financing Activity
Proceeds from bank loans and commercial paper 805,000 755,000
Proceeds from debenture sales or stock issuance
Repayment of bank loans and commercial paper 855,000 805,000
_______ _______
Net additions (repayments) (50,000) (50,000)
Cash & temporary cash investments
Ending balance 32,425 32,425
======= =======
Month End Bank Loans and Commerical Paper Balances 805,000 755,000
<PAGE> 10
Estimated Cash Flow for the Year 1996
For Consolidated Natural Gas Company and
Subsidiary Companies - Consolidated Basis
(000) Omitted (Continued)
___________________________________________
May June
Cash Available
Cash and Temporary Cash Investments
Beginning Balance 32,425 32,425
Cash from retained earnings, depreciation
and change in working capital, etc. 133,988 102,338
_______ _______
Total cash available 166,413 134,763
Cash Requirements
Plant spending 38,871 52,338
Dividends 45,117
Sinking Fund Requirements & Other
_______ _______
Total cash requirements 83,988 52,338
_______ _______
Exess or deficit 82,425 82,425
_______ _______
Financing Activity
Proceeds from bank loans and commercial paper 705,000 655,000
Proceeds from debenture sales or stock issuance
Repayment of bank loans and commercial paper 755,000 705,000
_______ _______
Net additions (repayments) (50,000) (50,000)
Cash & temporary cash investments
Ending balance 32,425 32,425
======= =======
Month End Bank Loans and Commerical Paper Balances 705,000 655,000
<PAGE> 11
Estimated Cash Flow for the Year 1996
For Consolidated Natural Gas Company and
Subsidiary Companies - Consolidated Basis
(000) Omitted (Continued)
___________________________________________
July August
Cash Available
Cash and Temporary Cash Investments
Beginning Balance 32,425 32,425
Cash from retained earnings, depreciation
and change in working capital, etc. 9,712 38,891
_______ _______
Total cash available 42,137 71,316
Cash Requirements
Plant spending 34,712 38,774
Dividends 45,117
Sinking Fund Requirements & Other
_______ _______
Total cash requirements 34,712 83,891
_______ _______
Exess or deficit 7,425 (12,575)
_______ _______
Financing Activity
Proceeds from bank loans and commercial paper 680,000 725,000
Proceeds from debenture sales or stock issuance
Repayment of bank loans and commercial paper 655,000 680,000
_______ _______
Net additions (repayments) 25,000 45,000
Cash & temporary cash investments
Ending balance 32,425 32,425
======= =======
Month End Bank Loans and Commerical Paper Balances 680,000 725,000
<PAGE> 12
Estimated Cash Flow for the Year 1995
For Consolidated Natural Gas Company and
Subsidiary Companies - Consolidated Basis
(000) Omitted (Continued)
___________________________________________
Sept Oct
Cash Available
Cash and Temporary Cash Investments
Beginning Balance 32,425 32,425
Cash from retained earnings, depreciation
and change in working capital, etc. (1,562) (6,435)
_______ _______
Total cash available 30,863 25,990
Cash Requirements
Plant spending 43,438 37,565
Dividends
Sinking Fund Requirements & Other
_______ _______
Total cash requirements 43,438 37,565
_______ _______
Exess or deficit (12,575) (11,575)
_______ _______
Financing Activity
Proceeds from bank loans and commercial paper 770,000 814,000
Proceeds from debenture sales or stock issuance
Repayment of bank loans and commercial paper 725,000 770,000
_______ _______
Net additions (repayments) 45,000 44,000
Cash & temporary cash investments
Ending balance 32,425 32,425
======= =======
Month End Bank Loans and Commerical Paper Balances 770,000 814,000
<PAGE> 13
Estimated Cash Flow for the Year 1996
For Consolidated Natural Gas Company and
Subsidiary Companies - Consolidated Basis
(000) Omitted (Continued)
___________________________________________
Nov Dec
Cash Available
Cash and Temporary Cash Investments
Beginning Balance 32,425 32,425
Cash from retained earnings, depreciation
and change in working capital, etc. 33,068 12,691
_______ _______
Total cash available 65,493 45,116
Cash Requirements
Plant spending 32,951 50,441
Dividends 45,117
Sinking Fund Requirements & Other 6,250
_______ _______
Total cash requirements 78,068 56,691
_______ _______
Exess or deficit (12,575) (11,575)
_______ _______
Financing Activity
Proceeds from bank loans and commercial paper 859,000 903,000
Proceeds from debenture sales or stock issuance
Repayment of bank loans and commercial paper 814,000 859,000
_______ _______
Net additions (repayments) 45,000 44,000
Cash & temporary cash investments
Ending balance 32,425 32,425
======= =======
Month End Bank Loans and Commerical Paper Balances 859,000 903,000
<PAGE> 14
Estimated Cash Flow for the Year 1996
For Consolidated Natural Gas Company and
Subsidiary Companies - Consolidated Basis
(000) Omitted (Continued)
___________________________________________
Total
Cash Available
Cash and Temporary Cash Investments
Beginning Balance 32,425
Cash from retained earnings, depreciation
and change in working capital, etc. 709,361
__________
Total cash available 741,786
Cash Requirements
Plant spending 470,643
Dividends 180,468
Sinking Fund Requirements & Other 6,250
_________
Total cash requirements 657,361
_________
Exess or deficit 84,425
_________
Financing Activity
Proceeds from bank loans and commercial paper 9,431,000
Proceeds from debenture sales or stock issuance
Repayment of bank loans and commercial paper 9,483,000
_________
Net additions (repayments) (52,000)
Cash & temporary cash investments
Ending balance 32,425
=========
<PAGE> 1 Exhibit H
CONSOLIDATED NATURAL GAS SYSTEM
Estimate of Capital Expenditures of Subsidiaries (U-1)
(In Thousands)
For the year 1995
Subsidiary
Companies CNG CNG
Plant Total Corporate Transmission EOG
_____ _________ _________ ____________ ________
Production $174,834 $ 3,405 $ 1,903
By-Products 530 530
Storage and Processing 28,911 25,010 1,956
Transmission 76,799 51,410 1,779
Distribution 106,161 38,936
Generals 40,461 2,101 11,045 14,770
Non-Utility 16,930 400
________ ______ _______ _______
Total Approved Budget $444,626 $2,101 $91,800 $59,344
<PAGE> 2 Exhibit H
CONSOLIDATED NATURAL GAS SYSTEM
Estimate of Capital Expenditures of Subsidiaries (U-1)
(In Thousands) (Continued)
For the year 1995
Plant PNG VNG WOG Hope
_____ ________ _______ _______ _______
Production $ 2,685 $ 43 $ $ 398
By-Products
Storage and Processing 1,945
Transmission 2,120 19,765 235 1,490
Distribution 24,090 32,551 2,495 8,089
Generals 4,607 2,085 1,770 1,083
Non-Utility
________ _______ _______ _______
Total Approved Budget $ 35,447 $54,444 $ 4,500 $11,060
<PAGE> 3 Exhibit H
CONSOLIDATED NATURAL GAS SYSTEM
Estimate of Capital Expenditures of Subsidiaries (U-1)
(In Thousands) (Continued)
For the year 1995
CNG Energy CNG Power
Plant CNGP Services Co. Company
_____ _________ ____________ __________
Production $166,400
By-Products
Storage and Processing
Transmission
Distribution
Generals 3,000
Non-Utility 10,000 6,530
________ _______ ______
Total Approved Budget $169,400 $10,000 $6,530
<PAGE> 4 Exhibit H
CONSOLIDATED NATURAL GAS SYSTEM
Estimate of Capital Expenditures of Subsidiaries (U-1)
(In Thousands)
For the year 1996
Subsidiary
Companies CNG CNG
Plant Total Corporate Transmission EOG
_____ _________ _________ ____________ ________
Production $202,403 $ 4,355 $ 1,958
By-Products 975 975
Storage and Processing 30,940 25,875 2,825
Transmission 63,223 48,445 2,126
Distribution 103,335 36,875
Generals 48,432 1,800 11,040 16,020
Non-Utility 21,335 355
________ ______ _______ _______
Total Approved Budget $470,643 $1,800 $91,045 $59,804
<PAGE> 5 Exhibit H
CONSOLIDATED NATURAL GAS SYSTEM
Estimate of Capital Expenditures of Subsidiaries (U-1)
(In Thousands) (Continued)
For the year 1996
Plant PNG VNG WOG Hope
_____ ________ _______ _______ _______
Production $ 1,390 $ 0 $ $ 300
By-Products
Storage and Processing 2,240
Transmission 6,200 6,069 283 100
Distribution 29,710 24,907 3,303 8,540
Generals 7,668 5,244 1,753 1,636
Non-Utility
________ _______ _______ _______
Total Approved Budget $ 47,208 $36,220 $ 5,339 $10,576
<PAGE> 6 Exhibit H
CONSOLIDATED NATURAL GAS SYSTEM
Estimate of Capital Expenditures of Subsidiaries (U-1)
(In Thousands) (Continued)
For the year 1996
CNG Energy CNG Power
Plant CNGP Services Co. Company
_____ _________ ____________ __________
Production $194,400
By-Products
Storage and Processing
Transmission
Distribution
Generals 3,271
Non-Utility 950 $20,030
________ _______ _______
Total Approved Budget $197,671 $ 950 $20,030
<PAGE> 7 Exhibit H
Explanation of Use of Proceeds of Consolidated Natural Gas
Service Company, Inc., CNG Research Company and CNG Coal Company
for the Period July 1, 1995 through June 30, 1996
The requested authorization of Consolidated Natural Gas Service
Company, Inc. ("Service Company") is designed to accommodate plant
expenditures, as detailed below, provide working capital and provide for
contngencies. The working capital requirements stem from the timing difference
between when Service Company incurs costs associated with performing services
on behalf of the other subsidiary companies of Consolidated and when it
receives reimbursement from such subsidiaries. Generally, such other
subsidiaries are billed by the fifteenth of the month following the month of
service and make payment to Service Company on the next to last business day of
that month. The result is a lag of from 30 to 60 days.
1995 January to June 1996 Total
____ ____________________ _____
(000) (000) (000)
Computer Hardware $1,887 $808 $2,695
Furniture & Equipment 159 68 227
Others 55 24 79
______ ____ ______
Total $2,101 $900 $3,001
====== ==== ======
CNG Research Company current has no operating revenues. The
financing authorizations requested is to accommodate miscellaneous expenses
associated with various research projects.
CNG Coal Company also currently has no operating revenues. The
financing requested is to accommodate miscellaneous expenses, including
property taxes, associated with the coal properties owned by the Company.
<PAGE> 1
EXHIBIT O
Proposed Notice
Pursuant to Rule 22(f)
SECURITIES AND EXCHANGE COMMISSION
(Release No. 35- )
Filings Under the Public Utility Holding Company Act of 1935
("Act")
May , 1995
Notice is hereby given that the following filing(s) has/have been
made with the Commission pursuant to provisions of the Act and rules
promulgated thereunder. All interested persons are referred to the
application(s) and/or declaration(s) for complete statements of the proposed
transaction(s) summarized below. The application(s) and/or declaration(s) and
any amendments thereto is/are available for public inspection through the
Commission's Office of Public Reference.
Interested persons wishing to comment or request a hearing on the
application(s) and/or declaration(s) should submit their views in writing by
May , 1995 to the Secretary, Securities and Exchange Commission, Washington,
D.C. 20549, and serve a copy on the relevant applicant(s) and/or declarant(s)
at the address(es) specified below. Proof of service (by affidavit or, in case
of an attorney at law, by certificate) should be filed with the request. Any
request for hearing shall identify specifically the issues of fact or law that
are disputed. A person who so requests will be notified of any hearing, if
ordered, and will receive a copy of any notice or order issued in the matter.
After said date, the application(s) and/or declaration(s), as filed or as
amended, may be granted and/or permitted to become effective.
_____________________________
<PAGE> 2
Consolidated Natural Gas Company, Et Al. (70- )
________________________________________
Consolidated Natural Gas Company ("Consolidated"), a registered
holding company, CNG Tower, Pittsburgh, Pennsylvania 15222-3199, and its wholly
owned nonutility subsidiary companies, CNG Research Company ("Research") and
Consolidated Natural Gas Service Company, Inc. ("Service"), located at CNG
Tower, Pittsburgh, Pennsylvania 15222-3199; CNG Coal Company ("Coal"), CNG
Producing Company ("Producing"), and its subsidiary CNG Pipeline Company
("Pipeline"), CNG Tower, 1450 Poydras Street, New Orleans, Louisiana
70112-6000; CNG Transmission Corporation ("Transmission") and CNG Storage
Service Company ("Storage"), 445 West Main Street, Clarksburg, West Virginia
26301; CNG Energy Services Corporation ("Energy Services"), One Park Ridge
Center, P.O. Box 15746, Pittsburgh, PA 15244-0746; and Consolidated's wholly
owned public-utility subsidiary companies, The Peoples Natural Gas Company
("Peoples"), CNG Tower, Pittsburgh, Pennsylvania 15222-3199; The East Ohio Gas
Company ("East Ohio"), 1717 East Ninth Street, Cleveland, Ohio 44115; Virginia
Natural Gas, Inc. ("Virginia Gas"), 5100 East Virginia Beach Boulevard,
Norfolk, Virginia 23501-3488; Hope Gas, Inc. ("Hope Gas"), P.O. Box 2868
Clarksburg, West Virginia 26302-2868; and West Ohio Gas Company ("West Ohio"),
319 West Market Street, Lima Ohio 45802 ("Subsidiaries"), have filed an
application-declaration under Sections 6(a), 7, 9(a), 10, 12(b) and 12(c) of
the Act and Rules 43 and 45 thereunder.
Consolidated proposes to issue and sell commercial paper pursuant to
an exception from competitive bidding, in an aggregate principal amount not to
<PAGE> 3
exceed $800 million outstanding at any one time, from time-to-time through June
30, 1996 ("Commercial Paper"). Such Commercial Paper may be domestic
commercial paper ("Domestic Paper") and/or European commercial paper ("Euro
Paper"). Domestic Paper will have varying maturities of not more than 270 days
and Euro Paper will have maturities from 7 to 183 days. Consolidated proposes
to sell Domestic Paper or Euro Paper, whichever provides the lower cost in a
given transaction, but only so long as the discount rate or the effective
interest cost on the date of sale does not exceed the prime rate of interest
from a commercial bank.
To the extent that it becomes impractical to sell the Commercial
Paper due to market conditions or otherwise, Consolidated proposed to borrow,
repay and reborrow, without collateral under back-up lines of credit, in an
aggregate principal amount not to exceed $600 million through June 30, 1996
("Loans"). The Loans will mature not more than 364 days from the date of each
borrowing, will be prepayable in whole or part at any time, and will bear
interest at a rate not to exceed the prime commercial rate of interest of the
lending bank in effect on the date of each borrowing.
Consolidated also proposes to obtain a $150,000,000 bank line of
credit under which it could obtain loans for a term not exceeding 364 days.
Consolidated will have the option of borrowing at a fixed interest rate or a
variable interest rate. The fixed rate would not exceed 50 basis points over
the London Interbank Offered Rate ("LIBOR"), and the variable rate would not
exceed 32.5 basis points over LIBOR or 47.5 basis points over certificate of
deposit ("CD") margin rates at Consolidated's option. A facility fee of not
more than 12.5 basis points per annum payable quarterly on the principal amount
of the bank's commitment may be paid.
<PAGE> 4
Consolidated additionally proposes to borrow up to $300 million,
through June 30, 1996, pursuant to a revolving credit agreement ("Credit
Agreement") with the Chase Manhattan Bank and Mellon Bank, N.A. acting for
themselves and as agents for certain other banks. Any loans made pursuant to
the Credit Agreement will be evidenced by either a syndicated promissory note
("Syndicated Note") or money market promissory note ("Money Market Note").
Under the terms of the Credit Agreement the bank loans will be in the form of
revolving credits. Commitments under the Credit Agreement will commence as of
the date thereof and will have a 364 day term. The Credit Agreement will also
provide that Consolidated will have the right at any time to terminate or
reduce the individual commitments of the banks. Loans made pursuant to the
Credit Agreement may, at the option of Consolidated, be either syndicated by a
group of the participating banks, or money market loans made by individual
participating banks. Each loan will be evidenced by either a Syndicated Note
or Money Market Note.
<PAGE> 5
At the option of Consolidated, the interest rate for the Syndicated
Note will be: (1) the higher of the Prime Rate announced by Manhattan Bank as
in effect from time-to-time at its principal office in New York City or the
Federal Funds Rate published by the Federal Reserve Bank of New York plus an
increment of one-half of one percent; (2) the average of LIBOR quoted by the
reference banks specified in the Credit Agreements, divided by one minus the
reserve requirements for such deposits required by the Federal Reserve System,
plus an increment of one-quarter of one percent; (3) the average of the CD rate
quoted to the reference banks, divided by one minus the reserve requirements
for such deposits required by the Federal Reserve System, plus an increment of
three-eights of one percent, plus the rate payable to the Federal Deposit
Insurance Corporation for deposit insurance. The interest rate for Money
Market Notes will be such rate as the banks may bid, which bid will, at the
option of Consolidated, be expressed as all-in rate or as an increment above or
below the average of the LIBOR rates quoted by the reference banks divided by
one minus the reserve requirements for such deposits required by the Federal
Reserve System. A fee of not more than 12.5 basis points per annum will be
charged on the revolving credit commitments commencing on the effective date of
the Credit Agreement.
<PAGE> 6
It is also proposed that through June 30, 1996, Consolidated provide
financing to the Subsidiaries in an aggregate amount not exceeding $1,225
million in the form of open account advances, long-term loans and/or capital
stock purchases. Individual Subsidiary financing by Consolidated would not
exceed the following amounts: (1) Transmission, $100 million; (2) East Ohio,
$265 million; (3) Peoples, $100 million; (4) Virginia Gas, $100 million; (5)
Hope Gas, $15 million; (6) Energy Services, $300 million; (7) Storage, $1
million; (8) West Ohio, $25 million; (9) Service, $15 million; (10) Producing,
$300 million; (11) Coal, $3 million; and (12) Research, $1 million.
Open account advances ("Advances"), may be made, repaid and remade on
a revolving basis, and all such Advances will be repaid within one year from
the date of the first Advance to the borrowing Subsidiary with interest at the
same effective rate of interest as Consolidated's weighted average effective
rate of commercial paper and/or revolving credit borrowings. If no such
borrowings are outstanding, the interest rate shall be predicated on the
Federal Funds' effective rate of interest as quoted by the Federal Reserve Bank
of New York. Advances will be made through the CNG System money pool
authorized under a Commission order dated June 12, 1986, (HCAR No. 24128).
Long term loans will mature over a period of time not in excess of 30
years with the interest rate predicated on and substantially equal to
Consolidated's cost of funds for comparable borrowings by the parent. In the
event Consolidated has not had recent comparable borrowings, the rates will be
tied to the Salomon Brothers indicative rate for comparable debt issuances
published in Salomon Brothers, Inc. Bond Market Roundup, or to a comparable
rate index, on the date nearest to the time of takedown.
Capital stock will be purchased from the Subsidiaries at its par
value (book value in the case of Virginia Gas). Capital stock transactions
<PAGE> 7
between Consolidated and its utility Subsidiaries, Hope Gas, Peoples, Virginia
Gas, West Ohio Company, and East Ohio, would occur under an exemption pursuant
to Rule 52 and are not part of the authorization requested herein.
Producing proposes from time to time through June 30, 1996, to
provide to Pipeline up to an aggregate of $1 million of financing through
short-term loans in the form of open account advances and/or long-term loans
evidenced by non-negotiable notes (documented by book entry only) and/or the
purchase of up to 10,000 shares of common stock $100 par value of Pipeline.
The open account advances and long-term loan will bear interest at rates equal
to the cost of money to Producing through its borrowing from Consolidated.
Further, Producing requests authority to purchase and retire up to 10,000
shares of its common stock, $10,000 par value, from Consolidated so that
Producing's debt to equity ratio would resemble more closely that of
Consolidated.
Authority is also requested to increase any Subsidiary's authorized
common stock as needed to accommodate proposed stock sales and to provide for
future issues, any such increase being limited to a number of shares calculated
by dividing the aggregate financing proposed for such Subsidiary in the
application-declaration by the par value (book value in the case of Virginia
Gas) of such Subsidiary's common stock rounded up to the near hundred.
_____________________________
For the Commission, by the Division of Investment Management,
pursuant to delegated authority.
Jonathan G. Katz
Secretary