<PAGE> 1
================================================================================
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K/A
AMENDMENT NO. 1
[x] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE FISCAL YEAR ENDED JANUARY 31, 1995
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
COMMISSION FILE NUMBER 1-6959
MITCHELL ENERGY & DEVELOPMENT CORP.
(Exact name of registrant as specified in its charter)
TEXAS 74-1032912
(State of Incorporation) (I.R.S. Employer Identification No.)
2001 TIMBERLOCH PLACE
THE WOODLANDS, TEXAS 77380
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number including area code: (713) 377-5500
SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:
Name of each exchange
Title of each class on which registered
------------------- -------------------------
Class A Common Stock, $.10 Par Value New York and Pacific
Class B Common Stock, $.10 Par Value New York and Pacific
SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT: NONE
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or Section 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months, and (2) has
been subject to such filing requirements for the past 90
days. Yes X No
--- ---
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to
this Form 10-K. [ ]
The aggregate market value of voting stock held by nonaffiliates of the
registrant at March 31, 1995 was approximately $152,655,000.
Shares of common stock outstanding at March 31, 1995:
Class A - 23,207,425
Class B - 28,815,124
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the following documents are incorporated by reference into
the indicated parts of this report:
Annual Report to Stockholders for the fiscal year ended
January 31, 1995 - Parts I and II.
Definitive Proxy Statement to be filed within
120 days after January 31, 1995 - Part III.
================================================================================
<PAGE> 2
FORM 10-K/A
AMENDMENT NO. 1
The undersigned registrant hereby amends Exhibits No.s 99(a) and 99(b)
to its annual report on Form 10-K for the year ended January 31, 1995 as set
forth in the pages attached hereto:
Exhibit 99(a) - Form 11-K for the year ended January 31, 1995 for the
Mitchell Energy & Development Corp. Thrift and Savings Plan is
hereby amended to include the financial statements and schedules
required by that form and the related Report of Independent Public
Accountants on such statements and schedules together with their
consent to incorporate such report into previously filed Form S-8
registration statements.
Exhibit 99(b) - Form 11-K for the year ended January 31, 1995 for the
MND Hospitality, Inc. Thrift and Savings Plan is hereby amended to
include the financial statements and schedules required by that form
and the related Report of Independent Public Accountants on such
statements and schedules together with their consent to incorporate
such report into a previously filed Form S-8 registration statement.
Pursuant to the requirements of the Securities and Exchange Act of
1934, the registrant has duly caused this amendment to be signed on its behalf
by the undersigned, thereunto duly authorized.
Mitchell Energy & Development Corp.
(Registrant)
By:_____________________________________
Philip S. Smith
Senior Vice President - Administration
Chief Financial Officer and
Principal Accounting Officer
Date: June 14, 1995
<PAGE> 1
Exhibit 99(a)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE FISCAL YEAR ENDED JANUARY 31, 1995
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Commission file number 1-6959
_______________________
MITCHELL ENERGY & DEVELOPMENT CORP.
THRIFT AND SAVINGS PLAN
_______________________
MITCHELL ENERGY & DEVELOPMENT CORP.
(Name of issuer of securities held pursuant to the Plan)
P. O. Box 4000, The Woodlands, Texas 77387-4000
(Address of Plan and principal executive office of issuer)
<PAGE> 2
Mitchell Energy & Development Corp.
Thrift and Savings Plan
INDEX TO FINANCIAL STATEMENTS AND SCHEDULES
<TABLE>
<CAPTION>
Page
----
<S> <C>
Report of Independent Public Accountants . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Statement of Net Assets Available for Plan Benefits with Fund Information
January 31, 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
January 31, 1994 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Statement of Changes in Net Assets Available for
Plan Benefits with Fund Information for the Year Ended
January 31, 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
January 31, 1994 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Notes to Financial Statements--January 31, 1995 and 1994 . . . . . . . . . . . . . . . . . . . 7
Schedule I--Schedule of Assets Held for
Investment Purposes at January 31, 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Schedule II--Schedule of Reportable Transactions
for the Year Ended January 31, 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
</TABLE>
-1-
<PAGE> 3
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Administrative Committee of the Mitchell
Energy & Development Corp. Thrift and Savings Plan:
We have audited the accompanying statements of net assets available for
plan benefits of the Mitchell Energy & Development Corp. Thrift and Savings
Plan as of January 31, 1995 and 1994, and the related statements of changes in
net assets available for plan benefits for the years then ended. These
financial statements and the schedules referred to below are the responsibility
of Mitchell Energy & Development Corp.'s management. Our responsibility is to
express an opinion on these financial statements and schedules based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present
fairly, in all material respects, the net assets available for plan benefits of
the Mitchell Energy & Development Corp. Thrift and Savings Plan at January 31,
1995 and 1994, and the changes in net assets available for plan benefits for
the years then ended, in conformity with generally accepted accounting
principles.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules of assets
held for investment purposes as of January 31, 1995 and reportable transactions
for the year then ended are presented for purposes of additional analysis and
are not a required part of the basic financial statements but are supplementary
information required by the Department of Labor's Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income Security Act of
1974. The fund information in the statement of net assets available for
benefits and the statement of changes in net assets available for benefits is
presented for purposes of additional analysis rather than to present the net
assets available for plan benefits and changes in net assets available for plan
benefits of each fund. The supplemental schedules and fund information have
been subjected to the auditing procedures applied in the audit of the basic
financial statements and, in our opinion, are fairly stated, in all material
respects, in relation to the basic financial statements taken as a whole.
ARTHUR ANDERSEN LLP
Houston, Texas
May 19, 1995
-2-
<PAGE> 4
Mitchell Energy & Development Corp.
Thrift and Savings Plan
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND INFORMATION
AT JANUARY 31, 1995
<TABLE>
<CAPTION>
Mutual Funds
-------------------------------------------------------------
MEDC Merrill
Common Fixed Hancock Lynch Merrill
Stock Income AIM Franklin Emerging Basic Lynch
Fund Fund Value Income Growth Value Capital
----------- ----------- ---------- -------- -------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Investments (at current values)
MEDC Common Stock
Class A . . . . . . . . . . . . $11,174,726 $ - $ - $ - $ - $ - $ -
Class B . . . . . . . . . . . . 11,699,229 - - - - - -
Merrill Lynch Retirement
Preservation Trust . . . . . . . - 46,902,807 - - - - -
Mutual funds . . . . . . . . . . . - - 2,347,047 745,421 317,283 6,847,583 7,656,415
Participants loans . . . . . . . . - - - - - - -
Merrill Lynch CMA Money Fund . . . 52,146 343,482 9,566 1,685 2,604 33,140 27,931
----------- ----------- ---------- -------- -------- ---------- ----------
22,926,101 47,246,289 2,356,613 747,106 319,887 6,880,723 7,684,346
Due from trustee . . . . . . . . . . - 50,445 - - - - -
Cash . . . . . . . . . . . . . . . . 7,043 46,389 1,292 228 352 4,476 3,772
----------- ----------- ---------- -------- -------- ---------- ----------
Net assets available for
plan benefits . . . . . . . . . $22,933,144 $47,343,123 $2,357,905 $747,334 $320,239 $6,885,199 $7,688,118
=========== =========== ========== ======== ======== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
Mutual Funds
---------------------------------------------------------
Merrill Oppenheimer
Lynch New Main Street
Global York Income Templeton Loan
Allocation Venture & Growth Foreign Fund Total
---------- ---------- ---------- ---------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
Investments (at current values)
MEDC Common Stock
Class A . . . . . . . . . . . . $ - $ - $ - $ - $ - $ 11,174,726
Class B . . . . . . . . . . . . - - - - - 11,699,229
Merrill Lynch Retirement
Preservation Trust . . . . . . . - - - - - 46,902,807
Mutual funds . . . . . . . . . . . 2,004,776 1,434,953 2,290,632 1,280,958 - 24,925,068
Participants loans . . . . . . . . - - - - 5,487,497 5,487,497
Merrill Lynch CMA Money Fund . . . 5,264 6,656 4,257 - - 486,731
---------- ---------- ---------- ---------- ---------- ------------
2,010,040 1,441,609 2,294,889 1,280,958 5,487,497 100,676,058
Due from trustee . . . . . . . . . . - - - - - 50,445
Cash . . . . . . . . . . . . . . . . 711 899 574 - - 65,736
---------- ---------- ---------- ---------- ---------- ------------
Net assets available for
plan benefits . . . . . . . . . $2,010,751 $1,442,508 $2,295,463 $1,280,958 $5,487,497 $100,792,239
========== ========== ========== ========== ========== ============
</TABLE>
_________________________________
The accompanying notes are an integral part of this statement.
-3-
<PAGE> 5
Mitchell Energy & Development Corp.
Thrift and Savings Plan
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND INFORMATION
AT JANUARY 31, 1994
<TABLE>
<CAPTION>
Mutual Funds
--------------------------------------------------
MEDC Merrill
Common Fixed Lynch Merrill
Stock Income AIM Franklin Basic Lynch
Fund Fund Value Income Value Capital
----------- ----------- ---------- -------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Investments (at current values)
MEDC Common Stock
Class A . . . . . . . . . . . $10,754,950 $ - $ - $ - $ - $ -
Class B . . . . . . . . . . . 11,395,844 - - - - -
Merrill Lynch Retirement
Preservation Trust . . . . . - 40,187,394 - - - -
Group annuity contracts
Allstate Insurance Company . . - 6,278,276 - - - -
Southwestern Life
Insurance Company . . . . . - 4,801,542 - - - -
Mutual funds . . . . . . . . . . - 1,528,079 288,700 7,830,854 8,831,367
Participants loans . . . . . . . - - - - - -
Merrill Lynch CMA Money Fund . . 14,181 598,409 - - 4,021 12,852
----------- ----------- ---------- -------- ---------- ----------
22,164,975 51,865,621 1,528,079 288,700 7,834,875 8,844,219
Due from trustee . . . . . . . . . - 5,547 4,692 - - -
----------- ----------- ---------- -------- ---------- ----------
Net assets available for
plan benefits . . . . . . . . . $22,164,975 $51,871,168 $1,532,771 $288,700 $7,834,875 $8,844,219
=========== =========== ========== ======== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
Mutual Funds
----------------------------------------------------
Merrill Oppenheimer Transamerica
Lynch New Main Street Special
Global York Income Emerging Loan
Allocation Venture & Growth Growth Fund Total
---------- ---------- ---------- ----------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
Investments (at current values)
MEDC Common Stock
Class A . . . . . . . . . . . $ - $ - $ - $ - $ - $ 10,754,950
Class B . . . . . . . . . . . - - - - - 11,395,844
Merrill Lynch Retirement
Preservation Trust . . . . . - - - - - 40,187,394
Group annuity contracts
Allstate Insurance Company . . - - - - - 6,278,276
Southwestern Life
Insurance Company . . . . . - - - - - 4,801,542
Mutual funds . . . . . . . . . . 1,891,557 1,272,947 1,013,844 86,620 - 22,743,968
Participants loans . . . . . . . - - - - 3,336,972 3,336,972
Merrill Lynch CMA Money Fund . . 1,622 - 1,187 - - 632,272
---------- ---------- ---------- ------- ---------- ------------
1,893,179 1,272,947 1,015,031 86,620 3,336,972 100,131,218
Due from trustee . . . . . . . . . - - 4,854 10,787 - 25,880
---------- ---------- ---------- ------- ---------- ------------
Net assets available for
plan benefits . . . . . . . . . $1,893,179 $1,272,947 $1,019,885 $97,407 $3,336,972 $100,157,098
========== ========== ========== ======= ========== ============
</TABLE>
_________________________________
The accompanying notes are an integral part of this statement.
-4-
<PAGE> 6
Mitchell Energy & Development Corp.
Thrift and Savings Plan
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS WITH
FUND INFORMATION FOR THE YEAR ENDED JANUARY 31, 1995
<TABLE>
<CAPTION>
Mutual Funds
-------------------------------------------------------------
MEDC Merrill
Common Fixed Hancock Lynch Merrill
Stock Income AIM Franklin Emerging Basic Lynch
Fund Fund Value Income Growth Value Capital
------------ ------------ ---------- --------- --------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Investment income
Interest income . . . . . . . . . $ 16,062 $ 3,185,912 $ - $ - $ - $ - $ -
Mutual fund distributions . . . . - - 37,172 52,018 54 439,217 717,536
Cash dividends . . . . . . . . . . 582,208 - - - - - -
------------ ------------ ---------- --------- --------- ----------- -----------
598,270 3,185,912 37,172 52,018 54 439,217 717,536
Net appreciation
(depreciation) of investments . . (5,293,261) - (83,317) (81,719) (10,202) (484,943) (803,212)
Contributions
Members . . . . . . . . . . . . . 969,688 2,397,698 157,066 53,616 29,385 448,600 515,537
Company . . . . . . . . . . . . . 799,917 1,889,703 115,752 40,267 19,131 360,968 406,159
Forfeitures utilized . . . . . . . (35,445) (79,899) (43) - (3,015) (5,438) (27,661)
Participant loans
New loans made . . . . . . . . . . (728,867) (2,451,935) (49,160) (24,111) (8,405) (242,256) (313,070)
Principal payments received . . . 293,064 880,812 26,732 15,488 2,922 138,111 154,466
Loan administrative fees . . . . . (1,515) (4,968) (51) (60) (19) (690) (817)
Distributions to withdrawing
members . . . . . . . . . . . . . (956,564) (4,250,518) (8,738) (1,148) (890) (332,738) (695,911)
Transfers to MND Hospitality
Thrift and Savings Plan . . . . . (32,935) (5,540) - - - (43,564) (51,476)
Interfund transfers . . . . . . . . . 5,155,817 (6,089,310) 629,721 404,283 193,871 (1,226,943) (1,057,652)
----------- ----------- ---------- -------- --------- ---------- ----------
Increase (decrease) in net
assets . . . . . . . . . . . . . . 768,169 (4,528,045) 825,134 458,634 222,832 (949,676) (1,156,101)
Net assets available for plan
benefits, beginning of year . . . 22,164,975 51,871,168 1,532,771 288,700 97,407 7,834,875 8,844,219
----------- ----------- ---------- -------- -------- ---------- ----------
Net assets available for plan
benefits, end of year . . . . . . $22,933,144 $47,343,123 $2,357,905 $747,334 $320,239 $6,885,199 $7,688,118
=========== =========== ========== ======== ======== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
Mutual Funds
-------------------------------------------------------
Merrill Oppenheimer
Lynch New Main Street
Global York Income Templeton Loan
Allocation Venture & Growth Foreign Fund Total
------------ ---------- --------- ---------- --------- ------------
<S> <C> <C> <C> <C> <C> <C>
Investment income
Interest income . . . . . . . . . $ - $ - $ - $ - $ 373,695 $ 3,575,669
Mutual fund distributions . . . . 114,713 64,907 41,142 84,785 - 1,551,544
Cash dividends . . . . . . . . . . - - - - - 582,208
---------- ---------- ---------- ---------- ---------- ------------
114,713 64,907 41,142 84,785 373,695 5,709,421
Net appreciation
(depreciation) of investments . . (207,036) (124,482) (117,150) (144,955) - (7,350,277)
Contributions
Members . . . . . . . . . . . . . 192,302 121,367 156,012 72,008 - 5,113,279
Company . . . . . . . . . . . . . 137,913 93,150 117,088 50,719 - 4,030,767
Forfeitures utilized . . . . . . . - - - (44) - (151,545)
Participant loans
New loans made . . . . . . . . . . (118,700) (35,851) (60,662) (33,424) 4,066,441 -
Principal payments received . . . 58,597 29,751 27,238 14,023 (1,641,204) -
Loan administrative fees . . . . . (74) (58) (98) (50) - (8,400)
Distributions to withdrawing
members . . . . . . . . . . . . . (18,140) (3,204) (16,021) (5,893) (261,815) (6,551,580)
Transfers to MND Hospitality
Thrift and Savings Plan . . . . . (4,998) - - (5,114) (12,897) (156,524)
Interfund transfers . . . . . . . . . (37,005) 23,981 1,128,029 1,248,903 (373,695) -
---------- ---------- ---------- ---------- ---------- ------------
Increase (decrease) in net
assets . . . . . . . . . . . . . . 117,572 169,561 1,275,578 1,280,958 2,150,525 635,141
Net assets available for plan
benefits, beginning of year . . . 1,893,179 1,272,947 1,019,885 - 3,336,972 100,157,098
---------- ---------- ---------- ---------- ---------- ------------
Net assets available for plan
benefits, end of year . . . . . . $2,010,751 $1,442,508 $2,295,463 $1,280,958 $5,487,497 $100,792,239
========== ========== ========== ========== ========== ============
</TABLE>
___________________________________
The accompanying notes are an integral part of this statement.
-5-
<PAGE> 7
Mitchell Energy & Development Corp.
Thrift and Savings Plan
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND
INFORMATION
FOR THE YEAR ENDED JANUARY 31, 1994
<TABLE>
<CAPTION>
Mutual Funds
---------------------------------------------------
MEDC Merrill
Common Fixed Lynch Merrill
Stock Income AIM Franklin Basic Lynch
Fund Fund Value Income Value Capital
------------ ----------- ---------- -------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Investment income
Interest income . . . . . . . . $ 5,255 $ 3,351,413 $ - $ - $ - $ -
Mutual fund distributions . . . - - 38,073 - 436,195 562,885
Cash dividends . . . . . . . . . 584,904 - - - - -
------------ ----------- ---------- -------- ---------- ----------
590,159 3,351,413 38,073 - 436,195 562,885
Net appreciation of
investments . . . . . . . . . . 8,934,884 - 51,928 1,402 878,978 658,612
Contributions
Members . . . . . . . . . . . . 1,159,327 2,858,062 28,791 1,468 564,291 704,030
Company . . . . . . . . . . . . 949,692 2,120,071 21,083 1,074 439,614 543,533
Forfeitures utilized . . . . . . (11,628) (17,947) - - (1,850) (10,047)
Participant loans
New loans made . . . . . . . . . (317,034) (1,421,064) (523) - (131,931) (216,074)
Principal payments received . . 240,748 578,277 3,237 203 123,501 146,047
Distributions to withdrawing
members . . . . . . . . . . . . (1,021,492) (3,056,469) - - (87,335) (115,716)
Transfers from MND Hospitality, Inc.
Thrift and Savings Plan . . . . - - - - 8,457 16,563
Interfund transfers . . . . . . . . (16,344,304) 10,783,244 1,390,182 284,553 406,405 (269,640)
------------ ----------- ---------- -------- ---------- ----------
Increase (decrease) in
net assets . . . . . . . . . . . (5,819,648) 15,195,587 1,532,771 288,700 2,636,325 2,020,193
Net assets available for plan
benefits, beginning of year . . 27,984,623 36,675,581 - - 5,198,550 6,824,026
------------ ----------- ---------- -------- ---------- ----------
Net assets available for plan
benefits, end of year . . . . . $ 22,164,975 $51,871,168 $1,532,771 $288,700 $7,834,875 $8,844,219
============ =========== ========== ======== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
Mutual Funds
------------------------------------------------------------
Merrill Oppenheimer Transamerica
Lynch New Main Street Special
Global York Income Emerging Loan
Allocation Venture & Growth Growth Fund Total
---------- ---------- ---------- ------------ ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
Investment income
Interest income . . . . . . . . $ - $ - $ - $ - $ 242,735 $ 3,599,403
Mutual fund distributions . . . 59,628 44,882 - - - 1,141,663
Cash dividends . . . . . . . . . - - - - - 584,904
---------- ---------- ---------- ------- ---------- ------------
59,628 44,882 - - 242,735 5,325,970
Net appreciation of
investments . . . . . . . . . . 37,251 18,071 21,448 2,040 - 10,604,614
Contributions
Members . . . . . . . . . . . . 31,106 26,233 2,994 242 - 5,376,544
Company . . . . . . . . . . . . 22,329 19,612 2,514 235 - 4,119,757
Forfeitures utilized . . . . . . - - - - - (41,472)
Participant loans
New loans made . . . . . . . . . (517) (7,760) - - 2,094,903 -
Principal payments received . . 6,899 3,697 215 4 (1,102,828) -
Distributions to withdrawing
members . . . . . . . . . . . . - - - - (45,462) (4,326,474)
Transfers from MND Hospitality, Inc.
Thrift and Savings Plan . . . . - - - - - 25,020
Interfund transfers . . . . . . . . 1,736,483 1,168,212 992,714 94,886 (242,735) -
---------- ---------- ---------- ------- ---------- ------------
Increase (decrease) in
net assets . . . . . . . . . . . 1,893,179 1,272,947 1,019,885 97,407 946,613 21,083,959
Net assets available for plan
benefits, beginning of year . . - - - - 2,390,359 79,073,139
---------- ---------- ---------- ------- ---------- ------------
Net assets available for plan
benefits, end of year . . . . . $1,893,179 $1,272,947 $1,019,885 $97,407 $3,336,972 $100,157,098
========== ========== ========== ======= ========== ============
</TABLE>
__________________________________
The accompanying notes are an integral part of this statement.
-6-
<PAGE> 8
Mitchell Energy & Development Corp.
Thrift and Savings Plan
NOTES TO FINANCIAL STATEMENTS
JANUARY 31, 1995 AND 1994
(1) SUMMARY OF THE PLAN
GENERAL
The Mitchell Energy & Development Corp. Thrift and Savings Plan (the
Plan) was adopted by Mitchell Energy & Development Corp. (MEDC) and certain of
its subsidiaries (collectively the Company) to encourage their employees to
provide additional security for their retirement. Full-time employees of the
Company are eligible to become members of the Plan on the first of the month
following their completion of a one-month eligibility period. Other employees
are eligible to become members after completing one year of participation
service as defined in the Plan's provisions. Members should refer to the Plan
document for a complete description of all Plan's provisions.
ADMINISTRATION
The Plan is administered by an administrative committee which has
broad responsibilities regarding the supervision and administration of the
Plan. The committee consists of seven persons appointed by the Board of
Directors of MEDC who receive no compensation from the Plan for their services.
Except for loan processing fees charged to members who have more than one loan
outstanding, administrative expenses have been paid by the Company. Should the
Company choose not to pay such expenses in the future, however, they would be
paid by the Plan and charged to the members' accounts.
TRUSTEE
Plan investments are held by Merrill Lynch Trust Company of Somerset,
New Jersey (Trustee), as trustee of the Plan. The Trustee receives
contributions, makes payments to members in accordance with the terms of the
Plan and has investment management authority where investment discretion is
placed with the Trustee.
BASIS OF ACCOUNTING
The records of the Plan are maintained on the accrual basis of
accounting for financial reporting purposes. For financial statement purposes,
Plan investments are carried at market values which are determined based upon
published market quotations or contract values supplied by the Trustee or
applicable insurance company for all investments other than participant loans.
CONTRIBUTIONS AND INVESTMENT OPTIONS
Members may elect, with certain limitations, to reduce their
compensation by instructing the Company to contribute from 1% to 14% of their
base salary to the Plan on a pretax basis. Amounts so deferred, as limited by
applicable Federal income tax regulations, are not included in a member's
adjusted gross income for Federal income tax purposes in the year the income is
deferred and contributed to the Plan.
Members also may make after-tax contributions to the Plan. The total
of a member's pretax and after-tax contribution may not exceed 14% of base
salary. After-tax contributions are included in the member's adjusted gross
income for Federal income tax purposes in the year the income is earned and
contributed to the Plan.
-7-
<PAGE> 9
The Company makes contributions to the Plan of an amount equal to 100%
of a member's contributions, up to 6% of base salary.
Members may direct the Trustee to invest their contributions in one or
more of the investment funds listed below. The number of participants (some of
whom participate in more than one fund) in each investment fund at January 31,
1995 and 1994 and the investment objectives of the various funds are as
follows:
<TABLE>
<CAPTION>
1995 1994 Investment Objectives
----- ----- -------------------------------------------------
<S> <C> <C> <C>
MEDC Common Stock Fund 1,118 1,092 Invest in stock of MEDC.
Fixed Income Fund 1,469 1,592 Income investments, consisting of guaranteed
investment contracts; U.S. government
securities and money market securities.
Mutual Funds
AIM Value Fund 243 149 Capital appreciation, invests primarily in
equity securities.
Franklin Income Fund 121 44 Income, invests in equity and debt securities and cash
equivalents.
Hancock Emerging Growth Fund 70 14 Capital appreciation, invests in equity
(formerly Transamerica securities of rapidly growing small and
Special Emerging Growth) medium sized companies.
Merrill Lynch Basic 521 560 Capital appreciation, invests primarily in
Value Fund, Inc. equity securities.
Merrill Lynch 639 687 Income and capital appreciation, invests in
Capital Fund, Inc. equity, debt and convertible securities.
Merrill Lynch Global 250 172 Income and capital appreciation, invests in
Allocation Fund, Inc. United States and foreign equity, debt and money market
securities.
New York Venture Fund, Inc. 187 146 Capital appreciation, invests in equity and convertible
securities.
Oppenheimer Main Street 228 84 Income and capital appreciation, invests in
Income and Growth equity and debt securities.
Templeton Foreign Fund 161 - Capital appreciation, invests in stock and
debt securities of companies outside the
United States.
</TABLE>
VESTING
A member becomes vested in the Company's matching contributions upon
completing five years of vesting service. A year of vesting service is defined
as the completion of 365 days of service.
FORFEITURES
When a member who has not yet vested terminates employment, the value
of his/her share of Company contributions is forfeited and used to reduce
future Company contributions. If the member is re-employed before completing a
break in service, as defined by the Plan, Company contributions will be
reinstated upon the member's reinvestment of applicable amounts in the Plan.
-8-
<PAGE> 10
DISTRIBUTIONS, WITHDRAWALS AND LOANS
A withdrawing member is entitled to receive the value of his/her
contributions and, upon retirement, death, permanent disability or termination
after having completed five years of vesting service, is also entitled to
receive 100% of the value of applicable Company contributions.
Distributions of member account balances invested in the MEDC Common
Stock Fund are made in kind with fractional shares paid in cash. Distributions
from the other investment funds are paid in cash. A member may request a cash
distribution from the MEDC Common Stock Fund in lieu of stock, subject to
procedures established by the administrative committee.
Section 1.401(k)-1 of the Internal Revenue Code restricts the
withdrawals that members may make from their pretax contributions. Such
withdrawals are limited to instances of a member's death, retirement,
disability, separation from service, attainment of age 59-1/2 or conditions of
severe hardship.
The Plan prescribes that members who make specified withdrawals from
their accounts will not be permitted to make contributions to the Plan during a
six-month suspension period following the withdrawal. No such suspension
period is applicable to withdrawals of member contributions or approved,
severe-hardship withdrawals. Member account balances pledged to secure loans
may not be withdrawn from the Plan.
Withdrawals may be made on the first day of each month, but only once
during a twelve-month period. Fund balances arising from a member's rollover
of balances from other plans may be withdrawn at any time without penalty.
Amounts payable to terminated and withdrawing members totaled $476,661
and $580,867 at January 31, 1995 and 1994, respectively.
Members are eligible to borrow up to the lesser of 50% of the vested
value of their total Plan investments or $50,000. All loans are evidenced by
promissory notes, which are secured by the member's account and bear interest
at Chemical Bank's prime rate plus two percent. Participant loans are reported
as assets of the Loan Fund and payments received, including interest, are
transferred to the investment funds based on members' current contribution
elections.
TERMINATION
The Company can terminate the Plan at its option. If the Plan is
terminated, and after all expenses are paid, any unallocated contributions,
forfeitures, income and expenses will be allocated among the members' accounts.
All members would then be fully vested and would be entitled to receive all
amounts then credited to their accounts.
(2) FEDERAL INCOME TAX STATUS
The Plan obtained its latest determination letter on July 6, 1992, in
which the Internal Revenue Service stated that the Plan, as then designed, was
in compliance with the applicable requirements of the Internal Revenue Code.
The Plan has been amended since receiving the favorable determination letter,
and a request for a determination letter covering such amendments was filed on
March 31, 1995. However, management and in-house legal counsel believe that
the Plan is currently designed and being operated in compliance with the
applicable requirements of the Internal Revenue Code and accordingly that the
Plan was qualified and the related trust was tax exempt as of January 31, 1995
and 1994.
-9-
<PAGE> 11
SCHEDULE I
Mitchell Energy & Development Corp.
Thrift and Savings Plan
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AT JANUARY 31, 1995
<TABLE>
<CAPTION>
Current
Cost Value
------------ ------------
<S> <C> <C>
Mitchell Energy & Development Corp. (a)
Class A Common Stock (682,426 shares) . . . . . . . . . . . . . . . . $ 11,795,895 $ 11,174,726
Class B Common Stock (703,713 shares) . . . . . . . . . . . . . . . . 12,075,541 11,699,229
------------ ------------
23,871,436 22,873,955
------------ ------------
Merrill Lynch Retirement Preservation Trust (a)(b)(c) . . . . . . . . . . 46,902,807 46,902,807
------------ ------------
Mutual Funds
AIM Value Fund (111,024 units) . . . . . . . . . . . . . . . . . . . . 2,371,533 2,347,047
Franklin Income Fund (353,280 units) . . . . . . . . . . . . . . . . . 812,312 745,421
Hancock Emerging Growth Fund (12,462 units) . . . . . . . . . . . . . 323,005 317,283
Merrill Lynch Basic Value Fund, Inc. (301,125 units) . . . . . . . . . 6,391,126 6,847,583
Merrill Lynch Capital Fund, Inc. (291,340 units) . . . . . . . . . . . 7,598,098 7,656,415
Merrill Lynch Global Allocation Fund, Inc. (162,330 units) . . . . . . 2,160,475 2,004,776
New York Venture Fund, Inc. (124,346 units) . . . . . . . . . . . . . 1,512,302 1,434,953
Oppenheimer Main Street Income & Growth (107,896 units) . . . . . . . 2,367,006 2,290,632
Templeton Foreign Fund (147,746 units) . . . . . . . . . . . . . . . . 1,412,412 1,280,958
------------ ------------
24,948,269 24,925,068
------------ ------------
Participant Loans, at interest rates ranging from 8% to 12.5% . . . . . . 5,487,497 5,487,497
------------ ------------
Merrill Lynch CMA Money Fund . . . . . . . . . . . . . . . . . . . . . . 486,731 486,731
------------ ------------
$101,696,740 $100,676,058
============ ============
</TABLE>
__________________________________
(a) Party-in-interest to the Plan.
(b) Unit value of $1.00.
(c) The average yield for this trust was approximately
6.68% for the year ended January 31, 1995.
-10-
<PAGE> 12
SCHEDULE II
Mitchell Energy & Development Corp.
Thrift and Savings Plan
SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED JANUARY 31, 1995
<TABLE>
<CAPTION>
Purchases (a) Sales (a)
----------------------- ---------------------------------------------------
Number Total Number Total Total Cost
of Trans- Purchase of Trans- Selling of Assets Net
actions Price actions Price Sold (b) Gain
---------- ------------- ---------- ------------ ------------ ----------
<S> <C> <C> <C> <C> <C> <C>
Mitchell Energy & Development Corp.
Class A Common Stock . . . . . . . . . 419 $ 5,118,478 286 $ 2,116,488 $ 2,013,461 $103,027
Class B Common Stock . . . . . . . . . 422 5,181,179 281 2,166,747 2,025,717 141,030
Merrill Lynch Retirement
Preservation Trust . . . . . . . . . . 539 23,646,334 431 16,930,921 16,930,921 -
Allstate Insurance Company . . . . . . . 5 232,292 1 6,510,568 6,510,568 -
Southwestern Life Insurance Company . . . 11 388,587 1 5,190,129 5,190,129 -
Merrill Lynch CMA Money Fund . . . . . . 132 18,668,222 194 18,813,763 18,813,763 -
</TABLE>
__________________________________
(a) Prices for purchases and sales were equal to current market values on the
dates of the transactions and were net of expenses incurred in connection
with the transactions.
(b) Weighted average historical cost is used to determine the cost of assets
sold.
-11-
<PAGE> 13
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
As independent public accountants, we hereby consent to the incorporation
of our report dated May 19, 1995, on the financial statements of the Mitchell
Energy & Development Corp. Thrift and Savings Plan included in this Form
10-K/A, Amendment No. 1 (which relates to such Plan's Form 11-K for the year
ended January 31, 1995) into the previously filed Form S-8 Registration
Statement Numbers 33-26276 and 2-86550.
ARTHUR ANDERSEN LLP
Houston, Texas
June 14, 1995
<PAGE> 1
Exhibit 99(b)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE FISCAL YEAR ENDED JANUARY 31, 1995
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Commission file number 1-6959
_______________________
MND HOSPITALITY, INC.
THRIFT AND SAVINGS PLAN
_______________________
MITCHELL ENERGY & DEVELOPMENT CORP.
(Name of issuer of securities held pursuant to the Plan)
P. O. Box 4000, The Woodlands, Texas 77387-4000
(Address of Plan and principal executive office of issuer)
<PAGE> 2
MND Hospitality, Inc.
Thrift and Savings Plan
INDEX TO FINANCIAL STATEMENTS AND SCHEDULES
<TABLE>
<CAPTION>
Page
----
<S> <C>
Report of Independent Public Accountants . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Statement of Net Assets Available for Plan Benefits with Fund Information
January 31, 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
January 31, 1994 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Statement of Changes in Net Assets Available for
Plan Benefits with Fund Information for the Year Ended
January 31, 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
January 31, 1994 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Notes to Financial Statements--January 31, 1995 and 1994 . . . . . . . . . . . . . . . . . . . 7
Schedule I--Schedule of Assets Held for
Investment Purposes at January 31, 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Schedule II--Schedule of Reportable Transactions
for the Year Ended January 31, 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
</TABLE>
-1-
<PAGE> 3
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Administrative Committee of the
MND Hospitality, Inc. Thrift and Savings Plan:
We have audited the accompanying statements of net assets available for
plan benefits of the MND Hospitality, Inc. Thrift and Savings Plan as of
January 31, 1995 and 1994, and the related statements of changes in net assets
available for plan benefits for the years then ended. These financial
statements and the schedules referred to below are the responsibility of
Mitchell Energy & Development Corp.'s management. Our responsibility is to
express an opinion on these financial statements and schedules based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the net assets available for plan benefits of the MND
Hospitality, Inc. Thrift and Savings Plan at January 31, 1995 and 1994, and the
changes in net assets available for plan benefits for the years then ended, in
conformity with generally accepted accounting principles.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules of assets
held for investment purposes as of January 31, 1995 and reportable transactions
for the year then ended are presented for purposes of additional analysis and
are not a required part of the basic financial statements but are supplementary
information required by the Department of Labor's Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income Security Act of
1974. The fund information in the statement of net assets available for
benefits and the statement of changes in net assets available for benefits is
presented for purposes of additional analysis rather than to present the net
assets available for plan benefits and changes in net assets available for plan
benefits of each fund. The supplemental schedules and fund information have
been subjected to the auditing procedures applied in the audit of the basic
financial statements and, in our opinion, are fairly stated, in all material
respects, in relation to the basic financial statements taken as a whole.
ARTHUR ANDERSEN LLP
Houston, Texas
May 19, 1995
-2-
<PAGE> 4
MND Hospitality, Inc.
Thrift and Savings Plan
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND INFORMATION
AT JANUARY 31, 1995
<TABLE>
<CAPTION>
Mutual Funds
----------------------------------------------------------
MEDC Merrill
Common Fixed Hancock Lynch Merrill
Stock Income AIM Franklin Emerging Basic Lynch
Fund Fund Value Income Growth Value Capital
-------- --------- ------- -------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Investments (at current value)
MEDC Common Stock
Class A . . . . . . . . . . . . $200,152 $ - $ - $ - $ - $ - $ -
Class B . . . . . . . . . . . . 219,051 - - - - - -
Merrill Lynch Retirement
Preservation Trust . . . . . . . - 1,899,664 - - - - -
Mutual funds . . . . . . . . . . . - - 14,415 1,610 7,765 235,882 334,571
Participants loans . . . . . . . . - - - - - - -
Merrill Lynch CMA Money Fund . . . 9,642 19,511 36 - 47 2,023 1,076
-------- ---------- ------- ------ ------ -------- --------
428,845 1,919,175 14,451 1,610 7,812 237,905 335,647
Due from trustee . . . . . . . . . . 282 89 7 - - 192 157
Cash . . . . . . . . . . . . . . . . 2,621 5,303 10 - 12 550 293
-------- ---------- ------- ------ ------ -------- --------
Net assets available for
plan benefits . . . . . . . . . . $431,748 $1,924,567 $14,468 $1,610 $7,824 $238,647 $336,097
======== ========== ======= ====== ====== ======== ========
</TABLE>
<TABLE>
<CAPTION>
Mutual Funds
-------------------------------------------------------
Merrill Oppenheimer
Lynch New Main Street
Global York Income Templeton Loan
Allocation Venture & Growth Foreign Fund Total
------------- --------- ------------ ---------- -------- ------------
<S> <C> <C> <C> <C> <C> <C>
Investments (at current value)
MEDC Common Stock
Class A . . . . . . . . . . . . $ - $ - $ - $ - $ - $ 200,152
Class B . . . . . . . . . . . . - - - - - 219,051
Merrill Lynch Retirement
Preservation Trust . . . . . . . - - - - - 1,899,664
Mutual funds . . . . . . . . . . . 25,213 4,166 12,780 13,632 - 650,034
Participants loans . . . . . . . . - - - - 207,636 207,636
Merrill Lynch CMA Money Fund . . . 3,370 150 47 47 - 35,949
------- ------ ------- ------- -------- ----------
28,583 4,316 12,827 13,679 207,636 3,212,486
Due from trustee . . . . . . . . . . 211 7 - - - 945
Cash . . . . . . . . . . . . . . . . 916 41 13 13 - 9,772
------- ------ ------- ------- -------- ----------
Net assets available for
plan benefits . . . . . . . . . . $29,710 $4,364 $12,840 $13,692 $207,636 $3,223,203
======= ====== ======= ======= ======== ==========
</TABLE>
__________________________________
The accompanying notes are an integral part of this statement.
-3-
<PAGE> 5
MND Hospitality, Inc.
Thrift and Savings Plan
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND INFORMATION
AT JANUARY 31, 1994
<TABLE>
<CAPTION>
Mutual Funds
------------------------------------
MEDC Merrill
Common Fixed Lynch Merrill
Stock Income AIM Basic Lynch
Fund Fund Value Value Capital
----------- ---------- --------- ---------- ------------
<S> <C> <C> <C> <C> <C>
Investments (at current values)
MEDC Common Stock
Class A . . . . . . . . . . . . . . $203,363 $ - $ $ - $ -
Class B . . . . . . . . . . . . . . 228,814 - - - -
Merrill Lynch Retirement
Preservation Trust . . . . . . . . - 1,259,229 - - -
Group annuity contracts
Allstate Insurance Company . . . . - 197,241 - - -
Southwestern Life
Insurance Company . . . . . . . . - 160,221 - - -
Mutual funds . . . . . . . . . . . . . - - 373 161,303 297,371
Participant loans . . . . . . . . . . - - - - -
Merrill Lynch CMA Money Fund . . . . . 399 1,003 - 13,068 9
-------- ---------- ----- -------- --------
Net assets available for
plan benefits . . . . . . . . . . . $432,576 $1,617,694 $ 373 $174,371 $297,380
======== ========== ===== ======== ========
</TABLE>
<TABLE>
<CAPTION>
Mutual Funds
-----------------------
Merrill
Lynch New
Global York Loan
Allocation Venture Fund Total
---------- -------- --------- ----------
<S> <C> <C> <C> <C>
Investments (at current values)
MEDC Common Stock
Class A . . . . . . . . . . . . . . $ - $ $ - $ 203,363
Class B . . . . . . . . . . . . . . - - - 228,814
Merrill Lynch Retirement
Preservation Trust . . . . . . . . - - - 1,259,229
Group annuity contracts
Allstate Insurance Company . . . . - - - 197,241
Southwestern Life
Insurance Company . . . . . . . . - - - 160,221
Mutual funds . . . . . . . . . . . . . 4,761 342 - 464,150
Participant loans . . . . . . . . . . - - 123,160 123,160
Merrill Lynch CMA Money Fund . . . . . - - - 14,479
------ ----- -------- ----------
Net assets available for
plan benefits . . . . . . . . . . . $4,761 $ 342 $123,160 $2,650,657
====== ===== ======== ==========
</TABLE>
__________________________________
The accompanying notes are an integral part of this statement.
-4-
<PAGE> 6
MND Hospitality, Inc.
Thrift and Savings Plan
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND
INFORMATION
FOR THE YEAR ENDED JANUARY 31, 1995
<TABLE>
<CAPTION>
Mutual Funds
--------------------------------------------------
MEDC Merrill
Common Fixed Hancock Lynch
Stock Income AIM Franklin Emerging Basic
Fund Fund Value Income Growth Value
------------ -------------- ----------- ---------- --------- ------------
<S> <C> <C> <C> <C> <C> <C>
Investment income
Interest income . . . . . . . . $ 772 $ 114,888 $ - $ - $ - $ -
Mutual fund distributions . . . - - 214 66 2 10,766
Cash dividends . . . . . . . . . 10,660 - - - - -
---------- ----------- --------- -------- -------- -----------
11,432 114,888 214 66 2 10,766
Net appreciation
(depreciation) of investments . (108,280) - (569) (68) 358 (8,380)
Contributions
Members . . . . . . . . . . . . 63,718 203,166 6,740 1,330 11,019 43,689
Company . . . . . . . . . . . . 34,659 140,984 2,653 459 489 15,923
Forfeitures utilized . . . . . . (1,966) (9,340) (53) - (113) (14,097)
Participants loans
New loans made . . . . . . . . . (19,707) (87,768) (5,006) - (4,540) (12,181)
Principal payments received . . 13,304 41,690 151 6 270 5,397
Loan administrative fees . . . . (87) (507) - - - (79)
Distributions to withdrawing
members . . . . . . . . . . . . (52,258) (120,246) (1,002) (122) - (6,072)
Transfers from Mitchell Energy &
Development Corp. Thrift
and Savings Plan . . . . . . . . 32,935 5,540 - - - 43,564
Interfund transfers . . . . . . . . 25,422 18,466 10,967 (61) 339 (14,254)
---------- ----------- --------- -------- -------- -----------
Increase (decrease) in net assets . (828) 306,873 14,095 1,610 7,824 64,276
Net assets available for plan
benefits, beginning of year . . 432,576 1,617,694 373 - - 174,371
---------- ----------- --------- -------- -------- -----------
Net assets available for plan
benefits, end of year . . . . . $ 431,748 $ 1,924,567 $ 14,468 $ 1,610 $ 7,824 $ 238,647
========== =========== ========= ======== ======== ===========
</TABLE>
<TABLE>
<CAPTION>
Mutual Funds
--------------------------------------------------------------------
Merrill Oppenheimer
Merrill Lynch New Main Street
Lynch Global York Income Templeton Loan
Capital Allocation Venture & Growth Foreign Fund Total
----------- ----------- ------------ ------------- ----------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Investment income
Interest income . . . . . . . . $ - $ - $ - $ - $ - $ 12,430 $ 128,090
Mutual fund distributions . . . 25,532 1,114 154 271 631 - 38,750
Cash dividends . . . . . . . . . - - - - - - 10,660
-------- ------- ------- ------- ------- -------- ----------
25,532 1,114 154 271 631 12,430 177,500
Net appreciation
(depreciation) of investments. . (26,357) (2,023) (366) (817) (1,496) - (147,998)
Contributions
Members . . . . . . . . . . . . 42,937 24,293 3,323 5,243 3,276 - 408,734
Company . . . . . . . . . . . . 23,663 5,582 1,503 1,456 1,322 - 228,693
Forfeitures utilized . . . . . . (1,733) (172) (379) - - - (27,853)
Participants loans
New loans made . . . . . . . . . (13,096) (8,677) (57) (4,914) (3,108) 159,054 -
Principal payments received . . 9,065 1,513 21 137 78 (71,632) -
Loan administrative fees . . . . (79) (48) - - - - (800)
Distributions to withdrawing
members . . . . . . . . . . . . (20,896) (4,413) (1,163) (119) (120) (15,843) (222,254)
Transfers from Mitchell Energy &
Development Corp. Thrift
and Savings Plan . . . . . . . . 51,476 4,998 - - 5,114 12,897 156,524
Interfund transfers . . . . . . . . (51,795) 2,782 986 11,583 7,995 (12,430) -
-------- ------- ------- ------- ------- -------- ----------
Increase (decrease) in net assets . 38,717 24,949 4,022 12,840 13,692 84,476 572,546
Net assets available for plan
benefits, beginning of year . . 297,380 4,761 342 - - 123,160 2,650,657
-------- ------- ------- ------- ------- -------- ----------
Net assets available for plan
benefits, end of year . . . . . $336,097 $29,710 $ 4,364 $12,840 $13,692 $207,636 $3,223,203
======== ======= ======= ======= ======= ======== ==========
</TABLE>
___________________________________
The accompanying notes are an integral part of this statement.
-5-
<PAGE> 7
MND Hospitality, Inc.
Thrift and Savings Plan
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND
INFORMATION
FOR THE YEAR ENDED JANUARY 31, 1994
<TABLE>
<CAPTION>
Mutual Funds
----------------------
MEDC Merrill
Common Fixed Lynch
Stock Income AIM Basic
Fund Fund Value Value
----------- ---------- --------- -----------
<S> <C> <C> <C> <C>
Investment income
Interest income . . . . . . . . . . . $ 343 $ 104,379 $ - $ -
Mutual fund distributions . . . . . . - - - 8,705
Cash dividends . . . . . . . . . . . . 9,262 - - -
-------- ---------- ---- --------
9,605 104,379 - 8,705
Net appreciation of investments . . . . . 88,861 - 20 18,322
Contributions
Members . . . . . . . . . . . . . . . 66,348 223,814 249 22,458
Employer . . . . . . . . . . . . . . . 29,248 145,245 104 10,811
Forfeitures utilized . . . . . . . . . (1,968) (9,328) - (539)
Participant loans
New loans made . . . . . . . . . . . . (10,800) (79,098) - (3,400)
Principal payments received . . . . . 6,672 39,608 - 4,242
Distributions to
withdrawing members . . . . . . . . . (21,822) (187,014) - (51,127)
Transfers to Mitchell Energy &
Development Corp. Thrift
and Savings Plan . . . . . . . . . . . - - - (8,457)
Interfund transfers . . . . . . . . . . . (27,580) (18,908) - 24,520
-------- ---------- ---- --------
Increase in net assets . . . . . . . . . 138,564 218,698 373 25,535
Net assets available for plan
benefits, beginning of year . . . . . 294,012 1,398,996 - 148,836
-------- ---------- ---- --------
Net assets available for plan
benefits, end of year . . . . . . . . $432,576 $1,617,694 $373 $174,371
======== ========== ==== ========
</TABLE>
<TABLE>
<CAPTION>
Mutual Funds
-------------------------------------
Merrill
Merrill Lynch New
Lynch Global York Loan
Capital Allocation Venture Fund Total
-------- ---------- ------- -------- ----------
<S> <C> <C> <C> <C> <C>
Investment income
Interest income . . . . . . . . . . . $ - $ - $- $ 8,547 $ 113,269
Mutual fund distributions . . . . . . 16,752 120 - - 25,577
Cash dividends . . . . . . . . . . . . - - - - 9,262
-------- ------ ---- -------- ----------
16,752 120 - 8,547 148,108
Net appreciation of investments . . . . . 17,866 84 16 - 125,169
Contributions
Members . . . . . . . . . . . . . . . 47,893 874 236 - 361,872
Employer . . . . . . . . . . . . . . . 24,373 478 90 - 210,349
Forfeitures utilized . . . . . . . . . (1,982) - - - (13,817)
Participant loans
New loans made . . . . . . . . . . . . (6,750) - - 100,048 -
Principal payments received . . . . . 6,659 75 - (57,256) -
Distributions to
withdrawing members . . . . . . . . . (25,955) - - (10,478) (296,396)
Transfers to Mitchell Energy &
Development Corp. Thrift
and Savings Plan . . . . . . . . . . . (16,563) - - - (25,020)
Interfund transfers . . . . . . . . . . . 27,385 3,130 - (8,547) -
-------- ------ ---- -------- ----------
Increase in net assets . . . . . . . . . 89,678 4,761 342 32,314 510,265
Net assets available for plan
benefits, beginning of year . . . . . 207,702 - - 90,846 2,140,392
-------- ------ ---- -------- ----------
Net assets available for plan
benefits, end of year . . . . . . . . $297,380 $4,761 $342 $123,160 $2,650,657
======== ====== ==== ======== ==========
</TABLE>
__________________________________
The accompanying notes are an integral part of this statement.
-6-
<PAGE> 8
MND Hospitality, Inc.
Thrift and Savings Plan
NOTES TO FINANCIAL STATEMENTS
JANUARY 31, 1995 AND 1994
(1) SUMMARY OF THE PLAN
GENERAL
Mitchell Energy & Development Corp. (the Company), a large independent
oil and gas company in the United States and a leading real estate developer in
the Houston-Galveston area, also engages in certain hospitality industry
activities. The Company's hospitality industry employees are employed by a
separate subsidiary, MND Hospitality, Inc. The MND Hospitality, Inc. Thrift
and Savings Plan (the Plan) was adopted to encourage hospitality industry
employees to provide additional security for their retirement. Full-time
employees of MND Hospitality, Inc. (the Employer) are eligible to become
members of the Plan on the first of the month following their completion of a
one-month eligibility period. Other employees are eligible to become members
after completing one year of participation service as defined in the Plan's
provisions. Members should refer to the Plan document for a complete
description of the Plan's provisions.
ADMINISTRATION
The Plan is administered by an administrative committee which has broad
responsibilities regarding the supervision and administration of the Plan. The
committee consists of seven persons appointed by the Board of Directors of MEDC
who receive no compensation from the Plan for their services. Except for loan
processing fees charged to members who have more than one loan outstanding,
administrative expenses have been paid by the Company. Should the Company
choose not to pay such expenses in the future, however, they would be paid by
the Plan and charged to the members' accounts.
TRUSTEE
Plan investments are held by Merrill Lynch Trust Company of Somerset,
New Jersey (Trustee), as trustee of the Plan. The Trustee receives
contributions, makes payments to members in accordance with the terms of the
Plan and has investment management authority where investment discretion is
placed with the Trustee.
BASIS OF ACCOUNTING
The records of the Plan are maintained on the accrual basis of
accounting for financial reporting purposes. For financial statement purposes,
Plan investments are carried at fair values which are determined based upon
published market quotations or contract values supplied by the Trustee or
applicable insurance company for all investments other than participant loans.
CONTRIBUTIONS AND INVESTMENT OPTIONS
Members may elect, with certain limitations, to reduce their
compensation by instructing the Employer to contribute from 1% to 14% of their
base salary to the Plan on a pretax basis. Amounts so deferred, as limited by
applicable Federal income tax regulations, are not included in a member's
adjusted gross income for Federal income tax purposes in the year the income is
deferred and contributed to the Plan.
-7-
<PAGE> 9
Members also may make after-tax contributions to the Plan. The total of
a member's pretax and after-tax contributions may not exceed 14% of base
salary. After-tax contributions are included in the member's adjusted gross
income for Federal income tax purposes in the year the income is earned and
contributed to the Plan.
For members who have completed less than five years of vesting service,
the Employer contributes an amount equal to 50% of a member's contributions, up
to 6% of base salary. For members with five or more years of vesting service,
Employer contributions are equal to 100% of a member's contributions, up to 6%
of base salary.
Members may direct the Trustee to invest their contributions in one or
more of the investment funds listed below. The number of participants (some of
whom participate in more than one fund) in each investment fund at January 31,
1995 and 1994 and the investment objectives of the various funds are as
follows:
<TABLE>
<CAPTION>
1995 1994 Investment Objectives
----- ----- --------------------------------------------------
<S> <C> <C> <C>
MEDC Common Stock Fund 123 116 Invest in stock of MEDC.
Fixed Income Fund 260 248 Income investments, consisting of guaranteed
investment contracts; U.S. government securities
and money market securities.
Mutual Funds
AIM Value Fund 23 8 Capital appreciation, invests primarily in
equity securities.
Franklin Income Fund 8 - Income, invests in equity and debt securities and cash
equivalents.
Hancock Emerging Growth Fund 6 - Capital appreciation, invests in equity
(formerly Transamerica securities of rapidly growing small and
Special Emerging Growth) medium sized companies.
Merrill Lynch Basic 87 80 Capital appreciation, invests primarily in
Value Fund, Inc. equity securities.
Merrill Lynch 97 96 Income and capital appreciation, invests in
Capital Fund, Inc. equity, debt and convertible securities.
Merrill Lynch Global 38 13 Income and capital appreciation, invests in
Allocation Fund, Inc. United States and foreign equity, debt and money market
securities.
New York Venture Fund, Inc. 17 9 Capital appreciation, invests in equity and convertible
securities.
Oppenheimer Main Street 16 - Income and capital appreciation, invests in
Income and Growth equity and debt securities.
Templeton Foreign Fund 13 - Capital appreciation, invests in stock and
debt securities of companies outside the
United States.
</TABLE>
-8-
<PAGE> 10
VESTING
A member becomes vested in the Employer's matching contributions upon
completing five years of vesting service. A year of vesting service is defined
as the completion of 365 days of service. Where applicable, vesting service
includes applicable periods of service to the Company prior to the
establishment of the Plan.
FORFEITURES
When a member who has not yet vested terminates employment, the value of
his/her share of Employer contributions is forfeited and used to reduce future
Employer contributions. If the member is re-employed before completing a break
in service, as defined by the Plan, Employer contributions will be reinstated
upon the member's reinvestment of applicable amounts in the Plan.
DISTRIBUTIONS, WITHDRAWALS AND LOANS
A withdrawing member is entitled to receive the value of his/her
contributions and, upon retirement, death, permanent disability or termination
after having completed five years of vesting service, is also entitled to
receive 100% of the value of applicable Employer contributions.
Distributions of member account balances invested in MEDC Common Stock
Fund are made in kind with fractional shares paid in cash. Distributions from
the other investment funds are paid in cash. A member may request a cash
distribution from the MEDC Common Stock Fund in lieu of stock, subject to
procedures established by the administrative committee.
Section 1.401(k)-1 of the Internal Revenue Code restricts the
withdrawals that members may make from their pretax contributions. Such
withdrawals are limited to instances of a member's death, retirement,
disability, separation from service, attainment of age 59-1/2 or conditions of
severe hardship.
The Plan prescribes that members who make specified withdrawals from
their accounts will not be permitted to make contributions to the Plan during a
six-month suspension period following the withdrawal. No such suspension
period is applicable to withdrawals of member contributions or approved,
severe-hardship withdrawals. Member account balances pledged to secure loans
may not be withdrawn from the Plan.
Withdrawals may be made on the first day of each month, but only once
during a twelve-month period. Fund balances arising from a member's rollover
of balances from other plans may be withdrawn at any time without penalty.
Amounts payable to terminated and withdrawing members totaled $37,560 at
January 31, 1995. No such amounts were payable at January 31, 1994.
Members are eligible to borrow up to the lesser of 50% of the vested
value of their total Plan investments or $50,000. All loans are evidenced by
promissory notes, which are secured by the member's account and bear interest
at Chemical Bank's prime rate plus two percent. Participant loans are reported
as assets of the Loan Fund and payments received, including interest, are
transferred to the investment funds based on members' current contribution
elections.
-9-
<PAGE> 11
TERMINATION
The Employer can terminate the Plan at its option. If the Plan is
terminated, and after all expenses are paid, any unallocated contributions,
forfeitures, income and expenses will be allocated among the members' accounts.
All members would then be fully vested and would be entitled to receive all
amounts then credited to their accounts.
(2) FEDERAL INCOME TAX STATUS
The Plan obtained its latest determination letter on October 5, 1992, in
which the Internal Revenue Service stated that the Plan, as then designed, was
in compliance with the applicable requirements of the Internal Revenue Code.
The Plan has been amended since receiving the favorable determination letter,
and a request for a determination letter covering such amendments was filed on
March 31, 1995. However, management and in-house legal counsel believe that
the Plan is currently designed and being operated in compliance with the
applicable requirements of the Internal Revenue Code and accordingly that the
Plan was qualified and the related trust was tax exempt as of January 31, 1995
and 1994.
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<PAGE> 12
SCHEDULE I
MND Hospitality, Inc.
Thrift and Savings Plan
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AT JANUARY 31, 1995
<TABLE>
<CAPTION>
Fair
Cost Value
----------- -----------
<S> <C> <C>
Mitchell Energy & Development Corp. (a)
Class A Common Stock (12,223 shares) . . . . . . . . . . . . . . . . . $ 223,928 $ 200,152
Class B Common Stock (13,176 shares) . . . . . . . . . . . . . . . . . 237,315 219,051
---------- ----------
461,243 419,203
---------- ----------
Merrill Lynch Retirement Preservation Trust (a)(b)(c) . . . . . . . . . . 1,899,664 1,899,664
---------- ----------
Mutual Funds
AIM Value Fund (682 units) . . . . . . . . . . . . . . . . . . . . . . 14,822 14,415
Franklin Income Fund (763 units) . . . . . . . . . . . . . . . . . . . 1,669 1,610
Hancock Emerging Growth Fund (305 units) . . . . . . . . . . . . . . . 7,471 7,765
Merrill Lynch Basic Value Fund, Inc. (10,373 units) . . . . . . . . . 223,800 235,882
Merrill Lynch Capital Fund, Inc. (12,731 units) . . . . . . . . . . . 335,752 334,571
Merrill Lynch Global Allocation Fund, Inc. (2,042 units) . . . . . . . 26,694 25,213
New York Venture Fund, Inc. (361 units) . . . . . . . . . . . . . . . 4,231 4,166
Oppenheimer Main Street Income & Growth (602 units) . . . . . . . . . 13,218 12,780
Templeton Foreign Fund (1,572 units) . . . . . . . . . . . . . . . . . 14,950 13,632
---------- ----------
642,607 650,034
---------- ----------
Participant Loans, at interest rates ranging from 8% to 12.5% . . . . . . 207,636 207,636
---------- ----------
Merrill Lynch CMA Money Fund . . . . . . . . . . . . . . . . . . . . . . 35,949 35,949
---------- ----------
$3,247,099 $3,212,486
========== ==========
</TABLE>
_______________________________
(a) Party-in-interest to the Plan.
(b) Unit value of $1.00.
(c) The average yield for this trust was approximately
6.68% for the year ended January 31, 1995.
-11-
<PAGE> 13
SCHEDULE II
MND Hospitality, Inc.
Thrift and Savings Plan
SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED JANUARY 31, 1995
<TABLE>
<CAPTION>
Purchases (a) Sales (a)
-------------------------- ------------------------------------------------
Number Total Number Total Total Cost
of Trans- Purchase of Trans- Selling of Assets Net
actions Price actions Price Sold (b) Gain
---------- ------------ ---------- --------- ------------ -------
<S> <C> <C> <C> <C> <C> <C>
Merrill Lynch Retirement
Preservation Trust . . . . . . . . . . 167 $967,970 89 $327,535 $327,535 $ -
Merrill Lynch Capital Fund, Inc . . . . . 112 160,565 49 97,008 94,353 2,655
Merrill Lynch CMA Money Fund . . . . . . 101 998,793 136 977,323 977,323 -
</TABLE>
__________________________________
(a) Prices for purchases and sales were equal to current market values on the
dates of the transactions and were net of expenses incurred in connection
with the transactions.
(b) Weighted average historical cost is used to determine the cost of assets
sold.
-12-
<PAGE> 14
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
As independent public accountants, we hereby consent to the incorporation
of our report dated May 19, 1995, on the financial statements of the MND
Hospitality, Inc. Thrift and Savings Plan included in this Form 10-K/A,
Amendment No. 1 (which relates to such Plan's Form 11-K for the year ended
January 31, 1995) into the previously filed Form S-8 Registration Statement
Number 33-2716.
ARTHUR ANDERSEN LLP
Houston, Texas
June 14, 1995
-13-
