<PAGE> 1
===============================================================================
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
------------------------
FORM 11-K
ANNUAL REPORT
PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE FISCAL YEARS ENDED JUNE 30, 1996 AND 1995
------------------------
THRIFT PLANS
OF
CONSOLIDATED NATURAL GAS COMPANY
AND
ITS PARTICIPATING SUBSIDIARIES
(FULL TITLE OF THE PLAN)
------------------------
CONSOLIDATED NATURAL GAS COMPANY
(NAME OF ISSUER OF THE SECURITIES)
CNG TOWER
PITTSBURGH, PENNSYLVANIA 15222-3199
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICE)
===============================================================================
<PAGE> 2
THRIFT PLANS OF CONSOLIDATED NATURAL GAS COMPANY
AND ITS PARTICIPATING SUBSIDIARIES
FORM 11-K ANNUAL REPORT
FOR THE FISCAL YEARS ENDED JUNE 30, 1996 AND 1995
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
Report of Independent Accountants......................................................................... 1
General and Short-Term Thrift Trusts - Consolidated Statement of Financial Condition with
Fund Information...................................................................................... 2
General and Short-Term Thrift Trusts - Consolidated Statement of Income and Changes in Participants'
Equity with Fund Information.......................................................................... 3
Alternate and Long-Term Thrift Trusts - Consolidated Statement of Financial Condition with
Fund Information...................................................................................... 4
Alternate Thrift Trust - Consolidated Statement of Financial Condition
with Fund Information................................................................................. 6
Alternate and Long-Term Thrift Trusts - Consolidated Statement of Income and Changes in Participants'
Equity with Fund Information.......................................................................... 7
Alternate Thrift Trust - Consolidated Statement of Income and Changes in Participants' Equity
with Fund Information................................................................................. 9
Notes to Consolidated Financial Statements................................................................ 10
Exhibits.................................................................................................. 19
</TABLE>
<PAGE> 3
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees of the Thrift Plans of
Consolidated Natural Gas Company and Its Participating Subsidiaries
In our opinion, the consolidated financial statements listed in the
accompanying index present fairly, in all material respects, the financial
position of the General and Short-Term Thrift Trusts and Alternate and Long-Term
Thrift Trusts at June 30, 1996 and the General and Alternate Thrift Trusts at
June 30, 1995 implementing the several Thrift Plans of Consolidated Natural Gas
Company and Its Participating Subsidiaries (the "Thrift Plans"), and the income
and changes in their participants' equity for the years then ended, in
conformity with generally accepted accounting principles. These financial
statements are the responsibility of the management of Consolidated Natural Gas
Company; our responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits of these statements in
accordance with generally accepted auditing standards which require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for the opinion expressed
above.
Our audits were performed for the purpose of forming an opinion on the
basic financial statements taken as a whole. The fund information in the
statements of financial condition and statements of income and changes in
participants' equity is presented for purposes of additional analysis rather
than to present the financial position and income and changes in participants'
equity of each fund. The fund information has been subjected to the auditing
procedures applied in the audits of the basic financial statements and, in our
opinion, is fairly stated in all material respects in relation to the basic
financial statements taken as a whole.
PRICE WATERHOUSE LLP
600 Grant Street
Pittsburgh, Pennsylvania 15219
January 13, 1997
1
<PAGE> 4
CONSOLIDATED NATURAL GAS COMPANY THRIFT PLANS
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION WITH FUND INFORMATION
<TABLE>
<CAPTION>
GENERAL AND SHORT-TERM GENERAL
THRIFT TRUSTS THRIFT TRUST
AT JUNE 30, 1996 AT JUNE 30, 1995
----------------------------------------- -----------------------------------------
Consolidated Cash Consolidated
Natural Gas (General Natural Gas Cash
Company Investments Company (General
Common and Money Funds Common Investments Funds
Stock Fund Market Funds) Combined Stock Fund Fund) Combined
------------ ------------ ----------- ------------ ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
Assets:
Consolidated Natural Gas Company common
stock held for participants:
Common stock at market value,
June 30, 1996 - 31,013 shares,
June 30, 1995 - 59,943 shares
(cost, June 30, 1996 - $515,823,
June 30, 1995 - $924,538) ........... $1,620,429 $ -- $ 1,620,429 $2,247,863 $ -- $ 2,247,863
Temporary investments at cost (which
approximates market value) (Exhibit I) ... -- 13,662,754 13,662,754 -- 14,150,000 14,150,000
Interest receivable ...................... -- 33,394 33,394 -- 65 65
Cash ..................................... -- 567,090 567,090 -- 17,654 17,654
Contributions and loan deductions due
from employers ........................... -- 997,778 997,778 -- 1,469,713 1,469,713
Loans to participants (secured) .......... -- 12,665 12,665 -- 12,665 12,665
---------- ----------- ----------- ---------- ----------- -----------
TOTAL ASSETS ................ $1,620,429 $15,273,681 $16,894,110 $2,247,863 $15,650,097 $17,897,960
========== =========== =========== ========== =========== ===========
Liabilities and Participants' Equity:
Accounts payable .......................... $ -- $ 586,326 $ 586,326 $ -- $ 10,633 $ 10,633
Participants' equity (Note 8) ............ 1,620,429 14,687,355 16,307,784 2,247,863 15,639,464 17,887,327
---------- ----------- ----------- ---------- ----------- -----------
TOTAL LIABILITIES AND
PARTICIPANTS' EQUITY ........ $1,620,429 $15,273,681 $16,894,110 $2,247,863 $15,650,097 $17,897,960
========== =========== =========== ========== =========== ===========
</TABLE>
The accompanying notes and exhibits are an integral
part of the consolidated financial statements.
2
<PAGE> 5
CONSOLIDATED NATURAL GAS COMPANY THRIFT PLANS
CONSOLIDATED STATEMENT OF INCOME AND CHANGES IN PARTICIPANTS'
EQUITY WITH FUND INFORMATION
<TABLE>
<CAPTION>
GENERAL AND SHORT-TERM GENERAL
THRIFT TRUSTS THRIFT TRUST
YEAR ENDED JUNE 30, 1996 YEAR ENDED JUNE 30, 1995
----------------------------------------- -----------------------------------------
Consolidated Cash Consolidated
Natural Gas (General Natural Gas Cash
Company Investments Company (General
Common and Money Funds Common Investments Funds
Stock Fund Market Funds) Combined Stock Fund Fund) Combined
------------ ------------ ----------- ------------ ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
Contributions:
From participating employees ............. $ -- $15,493,013 $15,493,013 $ -- $18,923,240 $18,923,240
Dividend income ............................. -- 36,562 36,562 -- 79,665 79,665
Interest income from temporary investments .. -- 587,661 587,661 -- 831,141 831,141
Interfund conversions - net ................. (10,352) 10,352 -- 82,596 (82,596) --
---------- ----------- ----------- ---------- ----------- -----------
TOTAL ADDITIONS ............. (10,352) 16,127,588 16,117,236 82,596 19,751,450 19,834,046
---------- ----------- ----------- ---------- ----------- -----------
Benefits paid to participants ............... 396,641 17,079,697 17,476,338 346,399 26,556,838 26,903,237
Transfer to Alternate or Long-Term
Thrift Trust (Note 6)...................... 1,724 -- 1,724 713,566 2,013,006 2,726,572
Decrease in unrealized appreciation of
Consolidated Natural Gas Company common
stock included in participants' equity ... 218,717 -- 218,717 1,577,248 -- 1,577,248
---------- ----------- ----------- ---------- ----------- -----------
TOTAL DEDUCTIONS ........... 617,082 17,079,697 17,696,779 2,637,213 28,569,844 31,207,057
---------- ----------- ----------- ---------- ----------- -----------
Net decrease in participants' equity during
the year ................................. (627,434) (952,109) (1,579,543) (2,554,617) (8,818,394) (11,373,011)
Participants' equity at beginning of year ... 2,247,863 15,639,464 17,887,327 4,802,480 24,457,858 29,260,338
---------- ----------- ----------- ---------- ----------- -----------
Participants' equity at end of year ......... $1,620,429 $14,687,355 $16,307,784 $2,247,863 $15,639,464 $17,887,327
========== =========== =========== ========== =========== ===========
</TABLE>
The accompanying notes and exhibits are an integral
part of the consolidated financial statements.
3
<PAGE> 6
CONSOLIDATED NATURAL GAS COMPANY THRIFT PLANS
ALTERNATE AND LONG-TERM THRIFT TRUSTS
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION WITH FUND INFORMATION
AT JUNE 30, 1996
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------------
Consolidated Fixed
Natural Gas Dominion Diversified Investment
Company Resources Equity Cash Stable Value
Common Stock Incoporated and (General and Fixed
and CNG Common Diversified Investments Investment S&P 500 Small Stock
Stock Funds Stock Fund Funds Fund) Funds Index Fund Fund
------------- ----------- ----------- ----------- ------------ ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Assets:
Cash ................ $ -- $ -- $ 3,018 $ 90,977 $ -- $ -- $ 116
Consolidated Natural
Gas Company common
stock, at market,
June 30, 1996 -
10,268,914 shares,
(cost June 30, 1996 -
$292,492,788)....... 541,218,931 -- -- -- -- -- --
Dominion Resources,
Incorporated common
stock, at market,
June 30, 1996 -
95,629 shares,
(cost June 30,
1996 - $2,390,555)... -- 3,825,167 -- -- -- -- --
Common stock, at
market value
(cost June 30, 1996 -
$26,368,340)
(Exhibit II) ...... -- -- 31,172,975 -- -- -- --
Temporary
investments, at
cost (which
approximates market
value)
(Exhibit III) ..... 1,483,820 -- 189,195 4,250,000 8,327,941 8 11
Insurance Company
Contracts
(Exhibit IV) ...... -- -- -- -- 253,398,283 -- --
Registered
Investment
Company Holdings .. -- -- -- -- -- 6,196,973 4,748,878
Common/Collective
Trusts ............ -- -- -- -- -- -- --
Loans to
Participants ...... -- -- -- -- -- -- --
Dividends and
interest
receivable ........ 1,756,803 -- 63,497 41,312 632,245 34,040 3,037
Receivable from
sale of common
stock ............. -- -- 10,030 -- -- -- --
Contributions and
loan deductions due
from employers .... -- -- -- (2,255) -- -- --
Interfund accounts -
receivable/
(payable) ......... (216,174) (241,670) 8,492 2,688,153 (1,898,433) -- --
------------ ---------- ----------- ----------- ------------ ---------- ----------
TOTAL ASSETS ....... $544,243,380 $3,583,497 $31,447,207 $ 7,068,187 $260,460,036 $6,231,021 $4,752,042
============ ========== =========== =========== ============ ========== ==========
Liabilities and
participants'
equity:
Accounts payable.. $ 40 $ -- $ 114,446 $ 682,784 $ 400,000 $ 20,307 $ 21,735
Participants' equity
(Note 8) .......... 544,243,340 3,583,497 31,332,761 6,385,403 260,060,036 6,210,714 4,730,307
------------ ---------- ----------- ----------- ------------ ---------- ----------
TOTAL LIABILITIES
AND PARTICIPANTS'
EQUITY ............ $544,243,380 $3,583,497 $31,447,207 $ 7,068,187 $260,460,036 $6,231,021 $4,752,042
============ ========== =========== =========== ============ ========== ==========
</TABLE>
The accompanying notes and exhibits are an integral
part of the consolidated financial statements.
4
<PAGE> 7
CONSOLIDATED NATURAL GAS COMPANY THRIFT PLANS
ALTERNATE AND LONG-TERM THRIFT TRUSTS
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION WITH FUND INFORMATION
AT JUNE 30, 1996
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
Conservative Moderate Growth
International Intermediate Balanced Balanced Balanced Participants' Funds
Equity Fund Bond Fund Fund Fund Fund Loan Fund Combined
----------- ----------- ------------ ---------- -------- ------------ --------
<S> <C> <C> <C> <C> <C> <C> <C>
Assets:
Cash .............. $ -- $ -- $ -- $ -- $ -- $ -- $ 94,111
Consolidated
Natural Gas
Company common
stock, at market,
June 30, 1996 -
10,268,914 shares,
(cost June 30, 1996 -
$292,492,788)..... -- -- -- -- -- -- 541,218,931
Dominion Resources,
Incorporated common
stock, at market,
June 30, 1996 -
95,629 shares
(cost June 30, 1996 -
$2,390,555)........ -- -- -- -- -- -- 3,825,167
Common at market
value (cost June 30,
1996 -
$26,368,340)
(Exhibit II) ...... -- -- -- -- -- -- 31,172,975
Temporary
investments, at
cost (which
approximates
market value)
(Exhibit III) ...... 8 3 71 26 17 -- 14,251,100
Insurance Company
Contracts
(Exhibit IV).. -- -- -- -- -- -- 253,398,283
Registered
Investment
Company Holdings .. 4,138,949 2,136,556 -- -- -- -- 17,221,356
Common/Collective
Trusts ........... -- -- 1,239,482 4,941,408 3,757,871 -- 9,938,761
Loans to
Participants ...... -- -- -- -- -- 9,666,500 9,666,500
Dividends and
interest
receivable ........ 390 10,702 5 -- -- -- 2,542,031
Receivable from sale
of common stock ... -- -- -- -- -- -- 10,030
Contributions and
loan deductions due
from employers .... -- -- -- -- -- 340,368 338,113
Interfund accounts -
receivable/
(payable) ......... -- -- -- -- -- (340,368) --
---------- ---------- ---------- ---------- ---------- ---------- ------------
TOTAL ASSETS ....... $4,139,347 $2,147,261 $1,239,558 $4,941,434 $3,757,888 $9,666,500 $883,677,358
========== ========== ========== ========== ========== ========== ============
Liabilities and
participants'
equity:
Accounts payable .. $ 21 $ 422 $ 8 $ 20,196 $ 36,783 $ -- $ 1,296,742
Participants' equity
(Note 8) ........... 4,139,326 2,146,839 1,239,550 4,921,238 3,721,105 9,666,500 882,380,616
---------- ---------- ---------- ---------- ---------- ---------- ------------
TOTAL LIABILITIES
AND PARTICIPANTS'
EQUITY ............. $4,139,347 $2,147,261 $1,239,558 $4,941,434 $3,757,888 $9,666,500 $883,677,358
========== ========== ========== ========== ========== ========== ============
</TABLE>
The accompanying notes and exhibits are an integral
part of the consolidated financial statements.
5
<PAGE> 8
CONSOLIDATED NATURAL GAS COMPANY THRIFT PLANS
ALTERNATE THRIFT TRUST
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION WITH FUND INFORMATION
AT JUNE 30, 1995
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
Consolidated Dominion
Natural Gas Resources Cash
Company Incorporated (General Fixed Participants'
Common Common Diversified Investments Investment Loan Funds
Stock Fund Stock Fund Fund Fund) Fund Fund Combined
------------ ------------ ----------- ----------- ------------ ------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Assets:
Consolidated Natural Gas
Company common stock, at
market, June 30,
1995 - 12,006,428 shares
(cost June 30, 1995 -
$336,262,357) ......... $450,241,050 $ -- $ -- $ -- $ -- $ -- $450,241,050
Dominion Resources, Incorporated
common stock, at market, June
30, 1995 - 147,807 shares
(cost June 30, 1995 -
$3,741,952) .................... -- 5,394,961 -- -- -- -- 5,394,961
Common and preferred stock, at
market value
(cost June 30, 1995 -
$22,308,451) ................... -- -- 25,239,585 -- -- -- 25,239,585
Temporary investments, at cost
(which approximates market
value) ......................... -- -- 1,971,232 4,970,000 -- -- 6,941,232
Fixed Investment Fund ........... -- -- -- -- 244,918,385 -- 244,918,385
Loans to Participants ........... -- -- -- -- -- 10,323,466 10,323,466
Cash ............................ -- -- 3,198 58,567 -- -- 61,765
Dividends and interest
receivable ..................... -- -- 47,415 29,048 -- -- 76,463
Receivable from sale of
common stock ................... -- -- 180,405 -- -- -- 180,405
Contributions and loan deductions
due from employers ............. -- -- -- 1,673,433 -- 680,681 2,354,114
Interfund accounts - receivable/
(payable) ...................... (784,147) (570,312) (512,201) 5,089,240 (2,541,899) (680,681) --
------------ ---------- ----------- ----------- ------------ ----------- ------------
TOTAL ASSETS .................... $449,456,903 $4,824,649 $26,929,634 $11,820,288 $242,376,486 $10,323,466 $745,731,426
============ ========== =========== =========== ============ =========== ============
Liabilities and participants'
equity:
Accounts payable ................ $ 3,997 $ -- $ 2,053,472 $ 113,645 $ -- $ -- $ 2,171,114
Participants' equity (Note 8 ) .. 449,452,906 4,824,649 24,876,162 11,706,643 242,376,486 10,323,466 743,560,312
------------ ---------- ----------- ----------- ------------ ----------- ------------
TOTAL LIABILITIES AND
PARTICIPANTS' EQUITY ........... $449,456,903 $4,824,649 $26,929,634 $11,820,288 $242,376,486 $10,323,466 $745,731,426
============ ========== =========== =========== ============ =========== ============
</TABLE>
The accompanying notes and exhibits are an integral
part of the consolidated financial statements.
6
<PAGE> 9
CONSOLIDATED NATURAL GAS COMPANY THRIFT PLANS
ALTERNATE AND LONG TERM THRIFT TRUSTS
CONSOLIDATED STATEMENT OF INCOME AND CHANGES IN
PARTICIPANTS' EQUITY WITH FUND INFORMATION
YEAR ENDED JUNE 30, 1996
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------------
Consolidated Fixed
Natural Gas Dominion Diversified Investment
Company Resources Equity Cash Stable Value
Common Stock Incoporated and (General and Fixed
and CNG Common Diversified Investments Investment S&P 500 Small Stock
Stock Funds Stock Fund Funds Fund) Funds Index Fund Fund
------------- ----------- ----------- ----------- ------------ ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Contributions:
From participating
employees .......... $ -- $ -- $ -- $ -- $ -- $ -- $ --
From participating
employers .......... -- -- -- -- -- -- --
Other ............... -- -- -- -- -- -- --
------------ ----------- ----------- ----------- ------------ ---------- ----------
10,851,519 -- 2,366,866 579,456 6,972,380 1,626,775 2,027,569
Transfer from
General Thrift
Trust (Note 6) ... 1,724 -- -- -- -- -- --
Dividend Income:
Consolidated Natural
Gas Company
common stock ....... 18,037,246 -- 38,989 197,814 4,195,801 -- --
Other ............... 242,103 -- 663,415 69,403 -- -- --
Increase in unrealized
appreciation of
investments included
in participants'
equity ............... 124,382,352 -- 4,109,046 -- -- -- --
Interest income ....... 295 -- 43,298 281,725 16,206,760 1,015 35
Net gain from
registered investment
company holdings ..... -- -- -- -- -- 605,279 362,260
Realized gain on sale/
conversion of
investments .......... 33,178,273 419,590 2,132,294 -- -- -- --
Interfund
conversions - net .... (65,257,523) (1,010,993) 376,482 12,791,846 36,009,684 4,105,273 2,432,695
------------ ----------- ----------- ----------- ------------ ---------- ----------
TOTAL ADDITIONS ... 121,435,989 (591,403) 9,730,390 13,920,244 63,384,625 6,338,342 4,822,559
------------ ----------- ----------- ----------- ------------ ---------- ----------
Benefits paid to
participants ......... 26,645,555 375,189 3,273,791 19,241,484 45,701,075 127,628 92,252
Decrease in unrealized
appreciation of
investments included
in participants'
equity ............... -- 274,560 -- -- -- -- --
------------ ----------- ----------- ----------- ------------ ---------- ----------
TOTAL DEDUCTIONS .. 26,645,555 649,749 3,273,791 19,241,484 45,701,075 127,628 92,252
------------ ----------- ----------- ----------- ------------ ---------- ----------
Net increase/(decrease)
in participants'equity
during the year ...... 94,790,434 (1,241,152) 6,456,599 (5,321,240) 17,683,550 6,210,714 4,730,307
Participants' equity
at beginning
of year .............. 449,452,906 4,824,649 24,876,162 11,706,643 242,376,486 -- --
------------ ----------- ----------- ----------- ------------ ---------- ----------
Participants' equity
at end of year ....... $544,243,340 $ 3,583,497 $31,332,761 $ 6,385,403 $260,060,036 $6,210,714 $4,730,307
============ =========== =========== =========== ============ ========== ==========
</TABLE>
The accompanying notes and exhibits are an integral
part of the consolidated financial statements.
7
<PAGE> 10
CONSOLIDATED NATURAL GAS COMPANY THRIFT PLANS
ALTERNATE AND LONG-TERM THRIFT TRUSTS
CONSOLIDATED STATEMENT OF INCOME AND CHANGES IN
PARTICIPANTS' EQUITY WITH FUND INFORMATION
YEAR ENDED JUNE 30, 1996
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
Conservative Moderate Growth Participants'
International Intermediate Balanced Balanced Balanced Loan Funds
Equity Fund Bond Fund Fund Fund Fund Fund Combined
------------- ------------ ------------ -------- ------- ------------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Contributions:
From participating
employees .......... $ -- $ -- $ -- $ -- $ -- $ -- $ 914,090
From participating
employers .......... -- -- -- -- -- -- 28,531,118
Other ............... -- -- -- -- -- -- 153,051
------------ ----------- ----------- ----------- ------------ ---------- ------------
1,521,170 619,697 305,357 1,391,686 1,335,784 -- 29,598,259
Transfer from
General Thrift
Trust (Note 6) ........ -- -- -- -- -- -- 1,724
Dividend Income:
Consolidated Natural
Gas Company
common stock ....... -- -- -- -- -- -- 22,469,850
Other ............... -- -- -- -- -- -- 974,921
Increase in unrealized
appreciation of
investments included
in participants'
equity ............... -- -- 25,588 273,745 203,872 -- 128,994,603
Interest income ....... 27 114 468 509 38 636,266 17,170,550
Net gain from
registered investment
company holdings ..... 309,635 29,449 -- -- -- -- 1,306,623
Realized gain on sale/
conversion of
investments .......... -- -- 36,241 29,589 18,906 -- 35,814,893
Interfund
conversions - net .... 2,476,819 1,956,732 1,001,314 3,318,194 2,242,707 (443,230) --
------------ ----------- ----------- ------------ ----------- ----------- ------------
TOTAL ADDITIONS ... 4,307,651 2,605,992 1,368,968 5,013,723 3,801,307 193,036 236,331,423
------------ ----------- ----------- ------------ ----------- ----------- ------------
Benefits paid to
participants ......... 168,325 459,153 129,418 92,485 80,202 850,002 97,236,559
Decrease in unrealized
appreciation of
investments included
in participants'
equity ............... -- -- -- -- -- -- 274,560
------------ ----------- ----------- ------------ ----------- ----------- ------------
TOTAL DEDUCTIONS .. 168,325 459,153 129,418 92,485 80,202 850,002 97,511,119
------------ ----------- ----------- ------------ ----------- ----------- ------------
Net increase/(decrease)
in participants'equity
during the year ...... 4,139,326 2,146,839 1,239,550 4,921,238 3,721,105 (656,966) 138,820,304
Participants' equity
at beginning
of year .............. -- -- -- -- -- 10,323,466 743,560,312
------------ ----------- ----------- ------------ ----------- ----------- ------------
Participants' equity
at end of year ....... $ 4,139,326 $ 2,146,839 $ 1,239,550 $ 4,921,238 $ 3,721,105 $ 9,666,500 $882,380,616
============ =========== =========== =========== =========== =========== ============
</TABLE>
The accompanying notes and exhibits are an integral
part of the consolidated financial statements.
8
<PAGE> 11
CONSOLIDATED NATURAL GAS COMPANY THRIFT PLANS
ALTERNATE THRIFT TRUST
CONSOLIDATED STATEMENT OF INCOME AND CHANGES IN PARTICIPANTS' EQUITY
WITH FUND INFORMATION
YEAR ENDED JUNE 30, 1995
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
Consolidated Dominion
Natural Gas Resources Cash
Company Incorporated (General Fixed Participants'
Common Common Diversified Investments Investment Loan Funds
Stock Fund Stock Fund Fund Fund) Fund Fund Combined
------------ ------------ ----------- ----------- ------------ ------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Contributions:
From participating employees .... $ -- $ -- $ -- $ -- $ -- $ -- $ 2,954,710
From participating employers .... -- -- -- -- -- -- 29,803,285
------------ -------- ---------- ---------- ----------- --------- -----------
17,281,693 -- 2,852,525 790,743 8,833,034 -- 29,737,995
Transfer from General
Thrift Trust (Note 6)............ 713,566 -- -- 2,013,006 -- -- 2,726,572
Dividend Income:
Consolidated Natural Gas Company
common stock .................. 15,036,659 -- 263,336 489,711 6,753,309 -- 22,543,015
Other ........................... 327,177 -- 799,634 30,044 -- -- 1,156,855
Increase in unrealized appreciation
of investments included in
participants' equity ............ -- -- 2,410,462 -- -- -- 2,410,462
Interest income ................... 2,085 -- 85,987 421,381 15,417,890 824,583 16,751,926
Realized gain on sale/conversion of
investments ..................... 2,301,618 88,601 1,568,553 -- -- -- 3,958,772
Interfund conversions - net ....... (3,587,928) (260,885) (1,072,633) 6,576,032 (1,780,228) 125,642 --
------------ ---------- ----------- ----------- ------------ ----------- ------------
TOTAL ADDITIONS ............ 32,074,870 (172,284) 6,907,864 10,320,917 29,224,005 950,225 79,305,597
------------ ---------- ----------- ----------- ------------ ----------- ------------
Benefits paid to participants ..... 6,262,893 105,058 452,074 5,021,552 24,543,180 384,166 36,768,923
Decrease in unrealized appreciation
of investments included in
participants' equity ............ 5,721,440 143,645 -- -- -- -- 5,865,085
------------ ---------- ----------- ----------- ------------ ----------- ------------
TOTAL DEDUCTIONS ........... 11,984,333 248,703 452,074 5,021,552 24,543,180 384,166 42,634,008
------------ ---------- ----------- ----------- ------------ ----------- ------------
Net increase/(decrease) in
participants' equity during
the year ........................ 20,090,537 (420,987) 6,455,790 5,299,365 4,680,825 566,059 36,671,589
Participants' equity at beginning
of year ......................... 429,362,369 5,245,636 18,420,372 6,407,278 237,695,661 9,757,407 706,888,723
------------ ---------- ----------- ----------- ------------ ----------- ------------
Participants' equity at end
of year ......................... $449,452,906 $4,824,649 $24,876,162 $11,706,643 $242,376,486 $10,323,466 $743,560,312
============ ========== =========== =========== ============ =========== ============
</TABLE>
The accompanying notes and exhibits are an integral
part of the consolidated financial statements.
9
<PAGE> 12
CONSOLIDATED NATURAL GAS COMPANY THRIFT PLANS
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 - BACKGROUND:
All employee and employer contributions are made pursuant to the terms of
the Consolidated Natural Gas Company (the "Corporation") Thrift Plans ("Plans")
and are held in funds administered by trustees under four declarations of trust,
i.e., the Alternate Thrift Trust, the General Thrift Trust, the Long-Term Thrift
Trust and the Short-Term Thrift Trust. Prior to July 1, 1995, the Plans, with
the exception of the Virginia Natural Gas, Inc. Employee Savings Plan and the
Virginia Natural Gas, Inc. Hourly Savings Plan ("VNG Plans"), participated in
both the Alternate Thrift Trust and General Thrift Trust. The VNG Plans
participate in only the Alternate Thrift Trust. Effective July 1, 1995, the
Short-Term Thrift Trust and the Long-Term Thrift Trust were established. At that
time, the assets of the System Thrift Plan of Consolidated Natural Gas Company
and Its Participating Subsidiaries For Employees Who Are Not Represented By A
Recognized Union ("System Thrift Plan") held under the Alternate Thrift Trust
and General Thrift Trust were transferred to the Long-Term Thrift Trust and the
Short-Term Thrift Trust, respectively. In connection with this change, the
number of investment options under the System Thrift Plan was increased from
five to eleven and the recordkeeping was transferred to a third party (see Note
6).
Under the Thrift Plans participants may elect to contribute not less than
2% nor more than 16% (15% for participants with thirty or more years of service
and participants in the Thrift Plan of The Peoples Natural Gas Company For
Employees Represented By Gas Employees' Union) of their earnings each pay
period, in multiples of 1%. If the participant elects that his employer make
pretax contributions on his behalf, such contributions must be an amount which
is not more than 6% (10% for participants in the System Thrift Plan and the VNG
Plans), in multiples of 1%, of his earnings each pay period subject to
applicable Internal Revenue Code limitations.
The employer's matching contribution, except for the VNG Plans, is based
upon the participant's contribution rate and length of service. Under the VNG
Plans, the employer's matching contribution is based only on the participant's
contribution rate.
NOTE 2 - ACCOUNTING POLICIES:
Significant accounting policies used in the preparation of the accompanying
consolidated financial statements are described below.
The accounting records of the Plans are maintained on the accrual basis.
Investments in securities are stated as follows:
1. Consolidated Natural Gas Company common stock, herein called
"Corporation common stock", which is held for the account of individual
participants, is stated at quoted market value.
2. Dominion Resources, Incorporated ("DRI") common stock, which is
held for the account of individual participants in the Virginia Natural
Gas, Inc. Employee Savings Plan and Virginia Natural Gas, Inc. Hourly
Savings Plan, successors to the Virginia Power Employee Savings Plan and
Virginia Power Hourly Savings Plan ("Predecessor Plans"), respectively, is
stated at quoted market value. The Predecessor Plans were sponsored by
Virginia Electric & Power Company, a subsidiary of DRI.
10
<PAGE> 13
CONSOLIDATED NATURAL GAS COMPANY THRIFT PLANS
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
3. Securities, registered investment company holdings,
common/collective trusts and other investments are stated at quoted
market value, except for temporary investments which are stated at cost
which approximates market value.
4. Corporation common stock has been purchased for participants on the
open market, directly from the Corporation and in certain circumstances
shares or fractional shares from terminating employees' Thrift Plan and
Employee Stock Ownership Plan accounts and other stockholders. Such shares
or fractional shares were allocated among the accounts of participants
directing the Trustees to purchase Corporation common stock.
5. The Fixed Investment Fund and Fixed Investment Stable Value
Fund are stated at contract value. Contract value represents contributions
and income earned in the fund, less withdrawals. The fair market value of
the contracts approximates the contract value.
Dividends received on all shares of Corporation common stock held in the
Alternate Thrift Trust are invested in accordance with the participant's
investment direction under the terms of the Plans. However, if any portion of a
participant's investment is directed to the purchase of Corporation common
stock, all dividends on Corporation common stock are invested in such stock.
Dividends received on all shares of DRI common stock held in the Alternate
Thrift Trust are invested in additional shares of Corporation common stock.
Dividends received on all shares of Corporation common stock held in the
Long-Term Thrift Trust are reinvested in additional units in the CNG Stock Fund.
Diversified Fund Units of the Alternate Thrift Trust are prorated to
participants on the basis of unit cost calculated at the end of each month.
Diversified Equity Fund Units of the Long-Term Thrift Trust are prorated to
participants based on the unit value calculated at the end of each day.
Realized gains and losses on the sale of investments are determined using
the average cost method.
Participants in the System Thrift Plan bear the investment management,
marketing, transfer agent and administrative expenses for each investment option
under the System Thrift Plan, except the Fixed Investment Stable Value Fund.
Administrative expenses of the VNG Plans are borne by the participants.
Participating employers bear all other administrative expenses of the Plans and
of the General, Alternate, Short-Term and Long-Term Thrift Trusts ("Trusts").
Brokerage and similar charges are included in the participants transaction
costs.
The Trusts are maintained in accordance with the Plans to provide for the
custody and investment of employee and employer contributions. They are
administered by individual trustees (the "Trustees") who are appointed by and
serve at the pleasure of the Corporation for a term of three years. The Trustees
are employed by and are officers of various subsidiary companies of the
Corporation. The Trustees serve without compensation from the Plans or Trusts.
NOTE 3 - DESCRIPTION OF THE THRIFT PLANS:
The following description of the Plans provides only general
information. Participants should refer to the Thrift Plans' Prospectus and
Summary Plan Descriptions for a more complete description of the Plans'
provisions.
11
<PAGE> 14
CONSOLIDATED NATURAL GAS COMPANY THRIFT PLANS
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
The participants in the Thrift Plans are eligible employees of Consolidated
Natural Gas Company and its participating subsidiaries. Each employee is
eligible to participate in his employer's thrift plan on an entirely voluntary
basis. Participation by an employee becomes effective immediately upon
completion and delivery to the employer of an authorization form furnished by
the employer. All union eligible hourly employees of Virginia Natural Gas, Inc.
("VNG") may elect to participate in the Virginia Natural Gas, Inc. Hourly
Savings Plan to be effective on the first day of any January, April, July or
October after they have attained age eighteen and have been employed for six
months.
Alternate Thrift Trust
All monies, except for monies attributable to the VNG Plans, received by
the Trustees of the Alternate Thrift Trust are invested under any one or more of
the following four options in multiples of 25%: (1) Corporation common stock,
(2) units of participation in a Diversified Fund composed of securities other
than securities of Consolidated Natural Gas Company and companies primarily
engaged in the natural gas business, (3) the Fixed Investment Fund and (4) the
General Investments Fund.
Under the VNG Plans, all company matching contributions are invested in
Corporation common stock. Employee contributions, both after-tax and elected
pre-tax, are invested under any one or more of the following two options in
multiples of 50%: (1) Corporation common stock and (2) the General Investments
Fund.
The Corporation common stock investment provision of the Alternate Thrift
Trust permits the participant to direct the Trustees to purchase shares of
Corporation common stock continuously or from cash accumulated in his account.
Corporation common stock purchased is registered in the name of the Trustees and
credited to the participant's account. Dividends on Corporation common stock
registered in the Trustees' name are received and credited to the participant's
account and invested in accordance with the Plans. Dividends on DRI common stock
registered in the Trustees' name are received and credited to the participant's
account and invested in additional shares of Corporation common stock. Except
under the VNG Plans, upon written request the participant may purchase all or
any portion of Corporation common stock credited to his account at the then
current market price and the cash proceeds of any such sale shall be credited by
the Trustees to his account.
Under the Diversified Fund investment provision of the Alternate Thrift
Trust, the participant may direct the Trustees to use all or part of the cash
credited to his account to purchase units of participation in the Diversified
Fund or he may direct them to purchase units continuously. Also, the participant
may direct the Trustees to sell any units in his account. The price at which
such units are purchased or sold is derived by dividing the month-end market
value of net assets of the Diversified Fund by the number of units then credited
to all participants' accounts.
Cash may be deposited in a Fixed Investment Fund which is invested through
group annuity contracts with one or more insurance companies. Investments under
the contracts mature at various intervals. The interest rates credited monthly
to participants' accounts represent a composite of the income earned under the
contracts with the insurance companies. The average yield for the fiscal years
ended June 30, 1996 and 1995 was 6.6% and 6.4%, respectively.
Cash deposited in the Alternate Thrift Trust which is not invested in the
Corporation's common stock, the Diversified Fund, or the Fixed Investment Fund
is invested in the General Investments Fund. This fund is invested in authorized
securities and savings accounts. The earnings thereon are credited pro rata to
participants' accounts at the end of each month.
12
<PAGE> 15
CONSOLIDATED NATURAL GAS COMPANY THRIFT PLANS
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
In addition, a participant, except for those participating in the VNG
Plans, may convert funds from the above mentioned investment options to a loan
account for the purpose of making a loan. Loan repayments, including principal
and interest, are deposited in the participant's account and invested in
accordance with the participant's then current investment direction.
General Thrift Trust
All monies received by the Trustees of the General Thrift Trust are
invested in the General Investments Fund of the General Thrift Trust and
allocated to participants' accounts. All or a portion of such monies, except
earnings on contributions made after January 1, 1987, may be used to purchase
Corporation common stock based on the direction of the participants. Such stock
acquired by the Trustees is registered in the name of the Trustees and credited
to the participant's account. Dividends received by the Trustees on such stock
are deposited in participants' accounts and are subject to the withdrawal
provisions of the General Thrift Trust. Shares purchased prior to January 1,
1982, are registered in the names of participants and are held by the Trustees.
Dividends on pre-1982 shares are paid directly to the participant.
The General Investments Fund is invested in authorized securities and
savings accounts. The earnings thereon are credited pro rata to participants'
accounts at the end of each month.
The withdrawal provision of the General Thrift Trust permits the
participant to withdraw his contributions and earnings thereon, in cash and/or
Corporation common stock, from his account. In addition, a participant may
substitute cash for stock equal to the cost of Corporation common stock held
for him by the Trustees.
The VNG Plans do not participate in the General Thrift Trust.
Long-Term Thrift Trust
All monies received by the Trustees of the Long-Term Thrift Trust are
invested in units of participation under any one or more of the following ten
options in 1% increments: (1) the CNG Stock Fund, (2) the Diversified Equity
Fund, (3) the S&P 500 Index Fund, (4) the Small Stock Fund, (5) the
International Equity Fund, (6) the Fixed Investment Stable Value Fund,
(7) the Intermediate Bond Fund, (8) the Conservative Balanced Fund,
(9) the Moderate Balanced Fund and (10) the Growth Balanced Fund.
In addition, a participant may convert funds from the above mentioned
investment options to a loan account for the purpose of making a loan. Loan
repayments, including principal and interest, are deposited in the
participant's account and invested in accordance with the participant's then
current investment direction.
Each of the investment options is valued daily. Participants may
transfer funds as often as daily among the investment options. Certain
restrictions apply to the amount of funds which can be transferred from the
CNG Stock Fund to other investment options.
The CNG Stock Fund is invested primarily in shares of Corporation common
stock. Participants may direct the Trustees to purchase units of participation
in the CNG Stock Fund continuously or from funds transferred from other
investment options. Dividends on Corporation common stock held in the CNG
Stock Fund are invested in additional units of the CNG Stock Fund and credited
to participants' accounts.
13
<PAGE> 16
CONSOLIDATED NATURAL GAS COMPANY THRIFT PLANS
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
The Fixed Investment Stable Value Fund is invested through group annuity
contracts with one or more insurance companies and other short-term fixed income
securities. Investments under the contracts mature at various intervals. The
interest rates credited daily to participants' accounts represent a composite of
the income earned under the contracts with the insurance companies and the
revenue earned from short-term fixed income securities. The average yield for
the fiscal year ended June 30, 1996 was 6.6%.
The Diversified Equity Fund is a commingled fund invested primarily in the
common stocks of large U.S. Companies.
The S&P 500 Index Fund is a fund of a registered investment company that
invests proportionately in all or nearly all of the stocks that are included in
the Standard & Poor's 500 Stock Index.
The Small Stock Fund is a fund of a registered investment company that
invests in stocks of small to mid-sized U.S. companies.
The International Equity Fund is a fund of a registered investment company
that invests in stocks of large non-U.S. companies.
The Intermediate Bond Fund is a fund of a registered investment company
that invests primarily in fixed income securities of various maturities such as
obligations of the U.S. Government, corporate debt securities, mortgage and
other asset-backed securities and money-market investments.
The Conservative Balanced Fund, the Moderate Balanced Fund and the
Growth Balanced Fund are each designed to accomplish a specific investment
objective. To accomplish this, each fund has a different diversified mix of
stock, bond and short-term investments.
Short-Term Thrift Trust
All monies received by the Trustees of the Short-Term Thrift Trust are
invested in units of participation in the Money Market Fund.
The withdrawal provision of the Trust permits the participant to withdraw
his contributions and earnings thereon in cash from his account.
NOTE 4 - TAX STATUS OF THE PLANS:
Tax counsel for the Corporation is of the opinion that the Plans, as
amended, meet the requirements for qualification under Section 401(a) of the
Internal Revenue Code. Determination letters in effect for periods prior to
January 1, 1995 (July 2, 1995 for the System Thrift Plan) have been received
with respect to all the Thrift Plans. Under present Federal income tax law, the
Trusts are believed to be exempt from taxation on earnings. As a result,
employer contributions and the earnings credited to a participant's account are
not subject to Federal income taxes until distribution of such amounts upon
termination of employment or earlier withdrawal.
14
<PAGE> 17
CONSOLIDATED NATURAL GAS COMPANY THRIFT PLANS
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
NOTE 5 - UNITS OF PARTICIPATION AND RELATED MARKET VALUE:
The number of units and market value of funds held by Diversified Equity
and Diversified Funds, registered investment company holdings and
common/collective trusts are as follows:
<TABLE>
<CAPTION>
June 30, 1996 June 30, 1995
-------------------------------- -----------------------------
Units Market Value Units Market Value
---------- ---------------- --------- ----------------
<S> <C> <C> <C> <C>
Diversified Equity and Diversified Equity Funds ........ 207,676 $31,172,975 210,669 $25,239,585
Registered Investment Company Holdings:
S&P 500 Index Fund ..................................... 423,580 $ 6,196,973 -- $ --
Small Stock Fund ....................................... 283,346 $ 4,748,878 -- $ --
International Equity Fund .............................. 307,958 $ 4,138,949 -- $ --
Intermediate Bond Fund ................................. 209,261 $ 2,136,556 -- $ --
Common/Collective Trusts:
Conservative Balanced Fund ............................ 100,039 $ 1,239,482 -- $ --
Moderate Balanced Fund ................................ 373,215 $ 4,941,408 -- $ --
Growth Balanced Fund .................................. 275,291 $ 3,757,871 -- $ --
</TABLE>
NOTE 6 - PLAN AMENDMENTS:
The following amendments were made to the Thrift Plan of West Ohio
Gas Company for Employees Represented by Local Union No. 308 effective
January 19, 1995:
1. The Plan Administrator was identified as the person responsible
for the day-to-day administration of the Plan.
2. Technical changes were made regarding the amount of funds that may
be withdrawn in accordance with the Hardship provisions of the Plan
and the circumstances which may qualify for a hardship withdrawal.
On September 13, 1994, the Board of Directors of Consolidated Natural
Gas Company approved the following changes to the System Thrift Plan effective
April 1, 1995:
1. The Consolidated Natural Gas Company Common Stock investment option
under the General Thrift Trust was eliminated. All shares credited
to participants' accounts, at that time, were automatically
transferred to the CNG Stock Fund under the Alternate Thrift Trust.
2. All cash credited to participants' accounts, at that time, in the
General Investments Fund under the General Thrift Trust relating to
company matching contributions was automatically transferred to
the General Investments Fund under the Alternate Thrift Trust.
15
<PAGE> 18
CONSOLIDATED NATURAL GAS COMPANY THRIFT PLANS
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
3. All participants were eligible to make a one-time election to transfer
all or a part of their balance in the General Investments Fund under
the General Thrift Trust to the General Investments Fund under the
Alternate Thrift Trust.
On September 13, 1994, the Board of Directors of Consolidated Natural Gas
Company approved the following changes to the System Thrift Plan that became
effective July 1, 1995:
1. Funds in the Alternate Thrift Trust were transferred to the
Long-Term Thrift Trust, while funds in the General Thrift Trust
were transferred to the Short-Term Thrift Trust.
2. The Long-Term Thrift Trust offers ten investment choices,
including five stock funds, two fixed income funds and three
balanced funds. The Consolidated Natural Gas Company Common
Stock Fund and the Fixed Investment Fund continue to be options
but were redesignated as the CNG Stock Fund and Fixed Investment
Stable Value Fund, respectively.
3. Contributions can be invested in any one or more of the ten
investment options in multiples of one percent.
4. The General Investments Fund under the Alternate Thrift Trust
was eliminated. Participants with balances in this Fund were
required to reinvest such amounts in the investment options
available at that time.
5. Investment options are valued daily and transfers among
options are permitted daily.
6. Participants pay investment management, marketing, transfer
agent and administrative expenses for each investment option,
except the Fixed Investment Stable Value Fund.
7. Participants must pay a $25 loan origination fee.
8. Participants may gradually transfer their balances in the
CNG Stock Fund to any of the other available investment options.
9. Participants are permitted to contribute up to ten percent of
their regular earnings on a pretax basis, subject to
applicable Internal Revenue Code limitations.
The following amendment was made to the Thrift Plan of Consolidated Natural
Gas Service Company, Inc. for Employees of the Computer Operations Department
Represented by the Natural Gas Workers Union, the Thrift Plan of West Ohio Gas
Company for Employees Represented by Local Union No. 308-C and the Thrift Plan
of the River Gas Division of The East Ohio Gas Company For Employees Represented
by Allegheny Mountain Gas Workers' Union effective August 19, 1995, September
16, 1995 and November 1, 1995, respectively:
1. Technical changes were made regarding the amount of funds that
may be withdrawn in accordance with the Hardship provisions of
the Plan and the circumstances which may qualify for a hardship
withdrawal.
During December 1994, each of the Thrift Plans was amended to provide for
technical changes to comply with qualification requirements of the Internal
Revenue Code.
The System Thrift Plan was amended effective August 13, 1996 to exclude
from participation in the Plan nonresident aliens working outside the United
States who are employed by the Corporation.
16
<PAGE> 19
CONSOLIDATED NATURAL GAS COMPANY THRIFT PLANS
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
NOTE 7 - TRANSACTIONS WITH PARTIES-IN-INTEREST:
Shares of Corporation common stock may be purchased directly from the
Corporation or on the open market. During the fiscal years ended June 30, 1996
and 1995, 7,264 and 17,817 shares at a cost of $322,776 and $639,681,
respectively, were purchased directly from the Corporation.
NOTE 8-BENEFIT OBLIGATIONS:
Benefit obligations being processed for distribution to persons who have
withdrawn from participation in the Plans are as follows:
<TABLE>
<CAPTION> GENERAL AND GENERAL
SHORT-TERM TRUSTS TRUST
------------------------------------------------
JUNE 30, 1996 JUNE 30, 1995
------------- --------------
<S> <C> <C>
Corporation Common Stock Fund ........................... $ 30,514 $ 750
Cash (General Investments and
money market Funds) .................................... 64,563 229,694
------------- --------------
Funds Combined $ 95,077 $ 230,444
============= ==============
</TABLE>
<TABLE>
<CAPTION> ALTERNATE AND ALTERNATE
LONG-TERM TRUSTS TRUST
-------------------------------------------------
JUNE 30, 1996 JUNE 30, 1995
-------------- --------------
<S> <C> <C>
Consolidated Natural Gas
Company Common Stock and CNG Stock Funds ............... $ 2,060,970 $ 3,593,352
Dominion Resources, Incorporated
Common Stock Fund .................................... - 130,926
Diversified Equity and Diversified FundS ................. 10,198 295,872
Cash (General Investments Fund) ......................... 194,241 642,339
Fixed Investment Stable Value and
Fixed Investment Fund ................................. 188,429 1,577,626
Participants' Loan Fund ................................. 84,278 161,146
S & P 500 Index Fund ..................................... 18,657 -
Small Stock Fund ......................................... 5,382 -
International Equity Fund ................................ 2,289 -
Intermediate Bond Fund ................................... 2,676 -
Conservative Balanced Fund ............................... 508 -
Growth Balanced Fund ..................................... 1,079 -
------------- --------------
Funds Combined ............................................ $ 2,568,707 $ 6,401,261
============= ==============
</TABLE>
17
<PAGE> 20
CONSOLIDATED NATURAL GAS COMPANY THRIFT PLANS
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
NOTE 9 - INVESTMENTS
The following investments represent 5% or more of the Plans' net assets
available for benefits:
<TABLE>
<CAPTION>
GENERAL AND GENERAL
SHORT-TERM TRUSTS TRUST
-------------------------------------------------
JUNE 30, 1996 JUNE 30, 1995
---------------- ----------------
<S> <C> <C>
Corporation Common Stock............................... $ 1,620,429 $ 2,247,863
Temporary Investments:
Associates Corporation of North
America Note ................................. - 4,050,000
Prudential Funding Corporation Notes ............ 10,925,000 10,100,000
Mellon Bank, N.A. EB Temporary Investment
Fund ......................................... $ 2,737,754 -
---------------- ----------------
Funds Combined ............................... $ 13,662,754 $ 16,397,863
================ ================
</TABLE>
<TABLE>
ALTERNATE AND ALTERNATE
LONG-TERM TRUSTS TRUST
-------------------------------------------------
JUNE 30, 1996 JUNE 30, 1995
------------------ -----------------
<S> <C> <C>
Corporation Common Stock Fund ........................ $ 541,218,931 $ 450,241,050
Insurance Company Contracts:
Aetna Life Insurance Company #010463 ............. 79,238,611 69,122,119
Connecticut General Life Insurance
Company #16355 ................................. 47,143,910 43,962,274
Continental Assurance Company
#GP30001-101 ................................... 41,757,432 42,245,216
John Hancock Mutual Life Insurance Company
#6325-GAC ...................................... 36,918,288 42,305,296
Metropolitan Life Insurance Company
#013582-000 .................................... 42,840,537 40,470,946
------------------ -----------------
$ 789,117,709 $ 688,346,901
================== =================
</TABLE>
18
<PAGE> 21
EXHIBIT I
CONSOLIDATED NATURAL GAS COMPANY THRIFT PLANS
GENERAL AND SHORT-TERM THRIFT TRUSTS
TEMPORARY INVESTMENTS
JUNE 30, 1996
<TABLE>
<CAPTION>
PAR MARKET
VALUE COST VALUE
------------ ------------ ------------
<S> <C> <C> <C>
Mellon Bank, N.A.
EB Temporary Investment Fund ................... $ 2,737,754 $ 2,737,754 $ 2,737,754
Prudential Funding Corporation Notes ............. 10,925,000 10,925,000 10,925,000
------------ ------------ ------------
Total .................................... $ 13,662,754 $ 13,662,754 $ 13,662,754
============ ============ ============
</TABLE>
19
<PAGE> 22
EXHIBIT II
CONSOLIDATED NATURAL GAS COMPANY THRIFT PLANS
ALTERNATE AND LONG-TERM THRIFT TRUSTS
COMMON STOCK INVESTMENTS DIVERSIFIED EQUITY AND DIVERSIFIED FUNDS
JUNE 30, 1996
<TABLE>
<CAPTION>
NO. OF MARKET
NAME OF ISSUER SHARES COST VALUE
-------------- ------ ----------- -------------
<S> <C> <C> <C>
Abbott Laboratories 2,650 $ 105,060 $ 115,275
Abertsons Inc. 9,000 294,707 372,374
Allied Signal Inc. 3,000 141,718 171,375
Aluminum Co. of America 1,700 94,547 97,538
American Express Co. 5,900 206,964 263,288
American International Group Inc. 900 61,069 88,763
Amgen Inc. 400 21,050 21,600
Amoco Corp. 3,300 216,339 238,013
Andarko Petroleum Corp. 4,200 194,586 243,600
Analog Devices Inc. 3,750 89,040 95,155
Applied Materials Inc. 2,200 94,229 67,100
Astra AB Sponsored ADR 300 11,650 13,125
Atlantic Richfield Co. 200 22,104 23,650
AT&T Corp. 19,800 1,139,794 1,227,600
Avery Dennison Corp. 800 44,624 43,900
Avon Products Inc. 1,200 39,103 54,150
Baker Hughes Inc. 2,100 54,934 69,037
Banc One Corp. 3,960 116,325 134,640
Bankamerica Corp. 2,400 156,948 181,800
Barnett Banks Inc. 1,800 92,147 109,800
Baxter International Inc. 3,800 138,244 179,550
Block H & R Inc. 500 20,895 16,375
Boeing Co. 4,600 327,340 400,774
Bristol Myers Squibb Co. 10,800 738,969 972,000
British Petroleum Co. PLC 1,000 89,670 106,874
British Steel PLC ADR Final Installment 4,500 123,711 114,188
CPC International Inc. 1,900 117,885 136,800
Cabletron Systems Inc. 300 15,926 20,587
Centocor Inc. 400 13,258 11,950
Chase Manhattan Corp. 3,500 169,301 247,187
Chevron Corp. 4,300 259,872 253,700
Chrysler Corp. 5,900 338,603 368,750
Cigna Corp. 6,200 658,420 730,825
Cisco Systems Inc. 3,200 158,925 181,200
Citicorp 1,600 123,344 132,400
Coca-Cola Co. 400 5,867 19,600
Colgate-Palmolive Co. 2,800 201,654 237,300
Columbia / HCA Healthcare Corp. 2,000 85,551 107,250
Compaq Computer Corp. 1,600 74,894 78,600
Computer Sciences Corp. 250 18,971 18,719
Conagra Inc. 2,300 86,286 104,363
Cooper Industries Inc. 2,200 83,901 91,300
CSX Corp. 1,500 76,603 72,375
Dana Corp. 3,500 102,556 108,500
</TABLE>
20
<PAGE> 23
EXHIBIT II-(CONTINUED)
CONSOLIDATED NATURAL GAS COMPANY THRIFT PLANS
ALTERNATE AND LONG-TERM THRIFT TRUSTS
COMMON STOCK INVESTMENTS DIVERSIFIED EQUITY AND DIVERSIFIED FUNDS
JUNE 30, 1996
<TABLE>
<CAPTION>
NO. OF MARKET
NAME OF ISSUER SHARES COST VALUE
-------------- ------ ------------ -------------
<S> <C> <C> <C>
Danka Business Sys. PLC Sponsored ADR 400 $ 14,138 $ 11,700
Dean Witter, Discover & Co. 5,600 262,797 319,900
Digital Equipment Corp. 2,500 155,374 112,813
Dover Corp. 7,200 283,050 331,200
Eastman Kodak Co. 5,200 318,145 404,300
Entergy Corp. 3,900 101,478 110,663
Equifax Inc. 3,500 56,284 91,875
Ericsson (L M) Telecom. Co. ADR Class B 500 10,563 10,750
Exxon Corp. 5,500 387,372 477,813
Federal National Mortgage Association 5,900 141,744 197,650
Federated Department Stores Inc. 3,550 105,977 121,144
First Bank System Inc. 4,100 206,539 237,800
Fleet Financial Group Inc. 6,400 252,992 278,400
Ford Motor Co. 12,200 428,289 394,974
General Electric Co. 10,700 586,621 928,225
General Motors Corp. 4,800 249,945 251,400
General Reinsurance Corp. 200 23,489 30,450
General Signal Corp. 800 31,401 30,300
Goodyear Tire & Rubber Co. 3,600 153,522 172,800
Grace W R & Co. 350 23,511 24,806
Great Lakes Chemical Corp. 1,300 86,801 80,925
GTE Corp. 14,100 480,930 630,975
Guidant Corp. 250 4,730 12,313
Halliburton Co. 1,900 74,588 105,450
Hasbro Inc. 500 18,078 17,875
Hercules Inc. 4,700 237,460 260,263
Hewlett-Packard Co. 200 10,519 19,925
Home Depot Inc. 7,600 326,082 410,400
Host Marriot Corp. 3,000 36,752 39,000
Intel Corp. 3,275 211,168 240,509
International Business Machines Corp. 150 11,030 14,850
Invesco Trust Co. Equity Fund 81,020 1,639,983 1,961,497
ITT Hartford Group Inc. 100 5,215 5,325
Johnson & Johnson 15,500 506,885 767,250
Kerr-McGee Corp. 1,100 66,838 66,963
Kimberly Clark Corp. 4,850 325,393 374,663
Komag Inc. 2,400 78,080 63,300
Lam Research Corp. 800 48,919 20,800
Lilly (Eli) & Co. 1,400 55,654 91,000
Lincoln National Corp. 1,500 69,231 69,375
Lockheed Martin Corp. 4,700 292,556 394,800
Manpower Inc. 200 5,337 7,850
Marriott International Inc. 2,200 74,420 118,250
Marsh & McLennan Companies Inc. 6,900 587,580 665,850
</TABLE>
21
<PAGE> 24
EXHIBIT II-(CONTINUED)
CONSOLIDATED NATURAL GAS COMPANY THRIFT PLANS
ALTERNATE AND LONG-TERM THRIFT TRUSTS
COMMON STOCK INVESTMENTS DIVERSIFIED EQUITY AND DIVERSIFIED FUNDS
JUNE 30, 1996
<TABLE>
<CAPTION>
NO. OF MARKET
NAME OF ISSUER SHARES COST VALUE
-------------- ------ ------------ ------------
<S> <C> <C> <C>
Maxim Integrated Products Inc. 3,100 $ 82,257 $ 84,670
McDonald's Corp. 350 10,386 16,363
Medtronic Inc. 3,000 131,292 168,000
Mentor Graphics Corp. 2,100 37,949 34,125
Merck And Co. Inc. 6,500 309,461 420,062
MFS Communications Inc. 400 13,314 15,050
Microsoft Corp. 2,750 259,813 330,344
Millipore Corp. 2,800 100,598 117,250
Mobil Corp. 4,250 415,794 477,594
Morgan J P & Co. Inc. 5,600 458,411 473,900
Morgan Stanley Group Inc. 4,500 221,237 221,063
Morton International Inc. 8,400 300,661 312,900
Nine West Group Inc. 300 12,728 15,337
Nokia Corp. Sponsored ADR 500 17,173 18,500
Norfolk Southern Corp. 400 26,950 33,900
Northwest Airlines Corp. 1,200 54,000 47,400
Nynex Corp. 4,800 197,818 228,000
Ogden Corp. 1,428 31,531 25,883
Olsten Corp. 800 16,520 23,500
Oracle Systems Corp. 1,100 35,896 43,382
Outback Steakhouse Inc. 1,600 49,200 55,174
Pepsico Inc. 25,400 582,412 901,700
Pfizer Inc. 550 37,652 39,256
Pharmacia & Upjohn Inc. 11,000 455,354 488,125
Philip Morris Companies Inc. 4,700 346,868 488,800
Phillips Petroleum Co. 15,600 521,549 653,250
Pitney Bowes Inc. 3,900 158,404 186,225
Price/Costco Inc. 11,100 179,590 240,038
Procter & Gamble Co. 300 20,957 27,187
Raychem Corp. 1,500 105,537 107,812
Raytheon Co. 6,000 227,725 309,750
RCM Growth Equity Fund Inc. 36,036 328,121 362,163
Sara Lee Corporation 4,800 135,921 156,000
Schering-Plough Corp. 2,300 99,910 144,325
Schlumberger Limited 250 14,447 21,062
Sigma Aldrich Corp. 1,000 49,318 53,500
Smithkline Beecham PLC ADR 1,000 42,648 54,250
Sprint Corp. 2,000 55,209 84,000
Staples Inc. 5,175 66,428 100,913
Sundstrand Corp. 500 14,407 18,313
Tenneco Inc. 6,400 294,571 327,200
Teradyne Inc. 3,700 109,494 63,825
Texaco Inc. 2,900 238,971 243,237
Texas Utilities Co. 7,300 288,290 312,075
</TABLE>
22
<PAGE> 25
EXHIBIT II-(CONTINUED)
CONSOLIDATED NATURAL GAS COMPANY THRIFT PLANS
ALTERNATE AND LONG-TERM THRIFT TRUSTS
COMMON STOCK INVESTMENTS DIVERSIFIED EQUITY AND DIVERSIFIED FUNDS
JUNE 30, 1996
<TABLE>
<CAPTION>
NO. OF MARKET
NAME OF ISSUER SHARES COST VALUE
-------------- ------ ------------ ------------
<S> <C> <C> <C>
Textronix Inc. 1,300 $ 72,488 $ 58,175
Toys R Us Inc. 11,000 304,444 313,500
Tyco International Ltd. 250 9,767 10,188
Unicom Inc. 6,400 172,308 178,400
United Healthcare Corp. 2,600 147,972 131,300
United Technologies Corp. 3,300 350,252 379,500
Unocal 3,900 120,674 131,138
UST Inc. 5,200 153,711 178,100
Wal-Mart Stores Inc. 20,800 495,954 527,800
Warner-Lambert Co. 800 37,348 44,000
Westvaco Corp. 4,550 131,151 135,931
Whitman Corp. 1,800 34,211 43,425
Worldcom Inc. 250 10,725 13,844
Xerox Corp. 21,700 895,519 1,160,950
------------ ------------
Total $ 26,368,340 $ 31,172,975
============ ============
</TABLE>
23
<PAGE> 26
EXHIBIT III
CONSOLIDATED NATURAL GAS COMPANY THRIFT PLANS
ALTERNATE AND LONG-TERM THRIFT TRUSTS
TEMPORARY INVESTMENTS
JUNE 30, 1996
<TABLE>
<CAPTION>
PAR MARKET
VALUE COST VALUE
----------- ----------- -----------
<S> <C> <C> <C>
Consolidated Natural Gas Company
and CNG Stock Funds:
Mellon Bank, N.A.
EB Temporary Investment Fund ............... $ 1,483,820 $ 1,483,820 $ 1,483,820
Diversified Equity and Diversified Funds:
The Chase Manhattan Bank, N.A.
Domestic Liquidity Fund ................... 100,802 100,802 100,802
Mellon Bank, N.A.
EB Temporary Investment Fund .............. 88,393 88,393 88,393
----------- ----------- -----------
189,195 189,195 189,195
----------- ----------- -----------
Fixed Investment Stable Value and
Fixed Investment Funds:
Mellon Bank, N.A.
EB Temporary Investment Fund .............. 8,327,941 8,327,941 8,327,941
General Investments Fund:
Prudential Funding Corporation Notes ......... 800,000 800,000 800,000
American Express Credit Company
Notes ...................................... 3,450,000 3,450,000 3,450,000
----------- ----------- -----------
4,250,000 4,250,000 4,250,000
----------- ----------- -----------
Other Funds:
Mellon Bank, N.A.
EB Temporary Investment Fund .............. 144 144 144
----------- ----------- -----------
TOTAL ................................... $14,251,100 $14,251,100 $14,251,100
=========== =========== ===========
</TABLE>
24
<PAGE> 27
EXHIBIT IV
CONSOLIDATED NATURAL GAS COMPANY THRIFT PLANS
ALTERNATE AND LONG-TERM THRIFT TRUSTS
INSURANCE COMPANY CONTRACTS
JUNE 30, 1996
<TABLE>
<CAPTION>
CONTRACT VALUE
(WHICH APPROXIMATES
INSURANCE COMPANY FAIR MARKET VALUE)
----------------- -------------------
<S> <C>
Aetna Life Insurance Company $ 79,238,611
Connecticut General Life Insurance Company 47,143,910
Continental Assurance Company 41,757,432
John Hancock Mutual Life Insurance Company 36,918,288
Pacific Mutual Life Insurance Company 5,499,507
Metropolitan Life Insurance Company 42,840,535
-------------
TOTAL INSURANCE COMPANY CONTRACTS $ 253,398,283
=============
</TABLE>
25
<PAGE> 28
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Trustees have duly caused this annual report to be signed by the undersigned
thereunto duly authorized.
THRIFT PLANS OF CONSOLIDATED NATURAL GAS
COMPANY AND ITS PARTICIPATING SUBSIDIARIES
(Name of Plan)
By Donald W. Borneman
--------------------------------------
(DONALD W. BORNEMAN, Trustee)
Dated: January 13, 1997
26
<PAGE> 29
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the incorporation by reference in the Registration
Statement on Form S-8 (Nos. 2-77204, 2-97948, 33-40478, 33-44892 and
333-18783) and Form S-3 (Nos. 33-1040, 33-52585, 33-63931 and 333-10869) of
Consolidated Natural Gas Company of our report dated January 13, 1997,
appearing on page 1 of this Form 11-K.
PRICE WATERHOUSE LLP
600 Grant Street
Pittsburgh, PA 15219
January 13, 1997
27
