File No. 69-407
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
FORM U-3A-2
STATEMENT BY HOLDING COMPANY CLAIMING EXEMPTION UNDER RULE U-3A-2 FROM
THE PROVISIONS OF THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935
To Be Filed Annually Prior to March 1
ENERGY CORPORATION OF AMERICA
................................................................................
(Name of Company)
hereby files with the Securities and Exchange Commission, pursuant to Rule 2,
its statement claiming exemption as a holding company from the provisions of the
Public Utility Holding Company Act of 1935, and submits the following
information:
1. Name, State of organization, location and nature of business of claimant
and every subsidiary thereof, other than any exempt wholesale generator ("EWG")
or foreign utility company in which claimant directly or indirectly holds an
interest.
Claimant:
Energy Corporation of America
4643 South Ulster Street, Suite 1100
Denver, Colorado 80237
The Claimant is a privately held West Virginia corporation engaged in
operating a natural gas distribution system in the Mid-Atlantic area and
oil and gas operations in the Rocky Mountain and Appalachian Basins. The
Claimant also is engaged in the exploration of oil and natural gas in other
parts of the United States and New Zealand. The stockholders of Claimant
are as follows: John Mork and Julie Mork (as joint tenants with right of
survivorship), Julie Mork, F. H. McCullough, III and Kathy L. McCullough
(as joint tenants with right of survivorship), J. Michael
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Forbes (Trustee for Alison P. Mork), J. Michael Forbes (Trustee for Kyle M.
Mork), A. C. Nielsen, Jr., L. B. Curtis and Rose A. Curtis (Co-Trustees of
the Curtis Family Revocable Trust), K. W. Brill, Joseph E. Casabona, Thomas
R. Goodwin, H. Laban White, Richard E. Heffelfinger, J. Michael Forbes,
Donald C. Supcoe, Pamela Gates, J. J. Dorgan, ECA Foundation, Peter H.
Coors, David L. Curtis, Leslie McCullough Trust, Meredith McCullough Trust,
Kristin McCullough Trust and Katherine F. McCullough Trust.
Subsidiaries of the Claimant:
A. Eastern Systems Corporation
414 Summers Street
Charleston, West Virginia 25301
Eastern Systems Corporation ("ESC") is a West Virginia corporation and a
wholly owned subsidiary of Claimant. It is the holding company for
Mountaineer Gas Company.
i. Mountaineer Gas Company
414 Summers Street
Charleston, West Virginia 25301
Mountaineer Gas Company ("Mountaineer") is a West Virginia
corporation, wholly owned by ESC, engaged in the distribution of natural
gas in the State of West Virginia through a 3,600 mile distribution
system, principally in Charleston, Beckley, Huntington and Wheeling,
West Virginia. Mountaineer is a public gas utility.
1. Mountaineer Gas Services, Inc.
414 Summers Street
Charleston, West Virginia 25301
Mountaineer Gas Services, Inc. is a West Virginia
corporation, wholly owned by Mountaineer, engaged primarily in
producing and marketing natural gas to Mountaineer.
2
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2. Mapcom Systems, Inc.
7345 Whitepine Road
Richmond, Virginia 23237
Mapcom Systems, Inc. is a Virginia corporation, wholly
owned by Mountaineer, engaged in automated mapping facilities
management and geographic information systems software development
and services.
B. Eastern American Energy Corporation
501 56th Street
Charleston, West Virginia 25304
Eastern American Energy Corporation ("Eastern American") is a West
Virginia corporation, wholly owned by Claimant, primarily engaged in the
exploration, development, production, transportation and marketing of
natural gas primarily within the Appalachian Basin States of West Virginia
and Pennsylvania. Eastern American also has properties in Tennessee,
Virginia, Ohio, Illinois and New York.
i. Natural Gas Transportation Company
501 56th Street
Charleston, West Virginia 25304
Natural Gas Transportation Company ("NGT") is a West
Virginia corporation and is a wholly owned subsidiary of Eastern
American. NGT builds compressed natural gas stations and provides
compressed natural gas as an alternative motor vehicle fuel.
ii. Eastern Marketing Corporation
501 56th Street
Charleston, West Virginia 25304
Eastern Marketing Corporation is a West Virginia corporation and a
wholly owned subsidiary of Eastern American. Eastern Marketing
Corporation markets the majority of Eastern American's natural gas.
Eastern Marketing Corporation also buys, sells and markets gas from
other third party producers, marketers and end users through the United
States.
3
<PAGE>
iii. Eastern Capital Corporation
501 56th Street
Charleston, West Virginia 25304
Eastern Capital Corporation is a West Virginia corporation, wholly
owned by Eastern American, which was incorporated in 1992 for the
purpose of encouraging and assisting in the creation, development and
expansion of West Virginia business by making available venture capital.
iv. Eastern Pipeline Corporation
501 56th Street
Charleston, West Virginia 25304
Eastern Pipeline Corporation is a West Virginia corporation,
wholly owned by Eastern American, which owns two gathering systems in
West Virginia. The largest of these systems is the Eastern Pipeline
System which consists of approximately seventy-five (75) miles of eight
(8) inch pipeline and three hundred (300) miles of gathering system.
v. Eastern Exploration Corporation
501 56th Street
Charleston, West Virginia 25304
Eastern Exploration Corporation is a West Virginia corporation,
wholly owned by Eastern American, which was incorporated primarily as a
non-recourse-financing vehicle for its annual drilling programs. The
majority of the assets of Eastern Exploration Corporation have been
conveyed to Eastern American; however, Eastern Exploration Corporation
still owns an interest in approximately forty-six (46) wells in the
state of West Virginia.
vi. Allegheny & Western Energy Corporation
501 56th Street
Charleston, West Virginia 25304
Allegheny & Western Energy Corporation ("Allegheny") is a West
Virginia corporation, wholly owned by Eastern American, primarily
engaged in the operation and management of oil and gas producing
properties located in the Appalachian Basin state of West Virginia.
Allegheny owns interests in these properties either directly or through
joint ventures or partnerships with third parties.
4
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Allegheny provides all necessary operating services either through its
employees and equipment or through subcontractors and arranges for the
sale of oil and gas produced therefrom.
1. Gas Access Systems, Inc.
501 56th Street
Charleston, West Virginia 25304
Gas Access Systems, Inc. is a West Virginia corporation
wholly owned by Allegheny, engaged in the marketing of natural gas
directly to end-users primarily in the State of West Virginia.
C. Westech Energy Corporation
4643 South Ulster Street Suite 1190
Denver, Colorado 80237
Westech Energy Corporation, a Colorado corporation that is wholly owned
by Claimant, is an oil and gas exploration and development company.
D. Westech Energy New Zealand Limited
4643 South Ulster Street Suite 1190
Denver, Colorado 80237
Westech Energy New Zealand Limited ("WENZL") was incorporated in June,
1995 under the laws of New Zealand under the name of Energy Corporation of
New Zealand Limited and is wholly owned by the Claimant. Energy Corporation
of New Zealand Limited changed its name to Westech Energy New Zealand
Limited on February 19, 1996. WENZL holds a 50 percent interest in one
petroleum prospecting license and three petroleum exploration permits
covering acreage located in the North Island, New Zealand.
E. Westside Acquisition Corporation
4643 South Ulster Street Suite 1100
Denver, Colorado 80237
Westside Acquisition Corporation is a Colorado corporation, wholly owned
by Claimant, whose primary asset is an interest in a limited liability
corporation that has certain oil producing properties (located in Los
Angeles County, California).
5
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2. A brief description of the properties of claimant and each of its
subsidiary public utility companies used for the generation, transmission, and
distribution of electric energy for sale, or for the production, transmission,
and distribution of natural or manufactured gas, indicating the location of
principal generating plants, transmission lines, producing fields, gas
manufacturing plants, and electric and gas distribution facilities, including
all such properties which are outside the state in which claimant and its
subsidiaries are organized and all transmission or pipelines which deliver or
receive electric energy or gas at the borders of such state.
Oil and gas producing facilities at Mountaineer Gas Services, Inc.
are located in Kanawha, Cabell and Jackson Counties, West Virginia.
These facilities include wellhead equipment, gas gathering lines and
associated equipment and compression equipment.
The gas distribution facilities of Mountaineer cover the main
population centers of the state of West Virginia and includes pipelines,
regulators, meters and other equipment needed for distribution. Gas
purchased from suppliers is received from interstate pipelines,
including Columbia Gas Transmission Corporation and Tennessee Gas
Pipeline, and other sources at points within the State of West Virginia.
Suppliers include Equitable Resources Marketing Company, Coastal Gas
Marketing, Texaco Gas Marketing, Cabot Oil & Gas Corporation, Noble Gas
Marketing, Valero Gas Marketing, Eastern Marketing Corporation and
Eastern American Energy Corporation.
3. The following information for the last calendar year with respect to claimant
and each of its subsidiary public utility companies:
(a) Number of kwh of electric energy sold (at retail or wholesale), and
Mcf. of natural and manufactured gas distributed at retail.
64,560,827 Mcf of natural gas.
(b) Number of kwh of electric energy and Mcf. of natural or manufactured
gas distributed at retail outside the State in which each such company is
organized.
None
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(c) Number of kwh of electric energy and Mcf. of natural or manufactured
gas sold at wholesale outside the State in which each such company is
organized, or at the State line.
None
(d) Number of kwh of electric energy and Mcf. of natural or manufactured
gas purchased outside the State in which each such company is organized or
at the State line.
27,743,438 Mcf of natural gas.
4. The following information for the reporting period with respect to
claimant and each interest it holds directly or indirectly in an EWG or a
foreign utility company, stating monetary amounts in United States dollars:
(a) Name, location, business address and description of the facilities
used by the EWG or foreign utility company for the generation, transmission
and distribution of electric energy for sale or for the distribution at
retail of natural or manufactured gas.
Not applicable.
(b) Name of each system company that holds an interest in such EWG or
foreign utility company; and description of the interest held.
Not applicable.
(c) Type and amount of capital invested, directly or indirectly, by the
holding company claiming exemption; any direct or indirect guarantee of the
security of the EWG or foreign utility company by the holding company
claiming exemption; and any debt or other financial obligation for which
there is recourse, directly or indirectly, to the holding company claiming
exemption or another system company, other than the EWG or foreign utility
company.
Not applicable.
(d) Capitalization and earnings of the EWG or foreign utility company
during the reporting period.
Not applicable.
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(e) Identify any service, sales or construction contract(s) between the
EWG or foreign utility company and a system company, and describe the
services to be rendered or goods sold and fees or revenues under such
agreement(s).
Not applicable.
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EXHIBIT A
A consolidating statement of income and surplus of the Claimant and its
subsidiary companies for the last calendar year, together with a consolidating
balance sheet of Claimant and its subsidiary companies as of the close of such
calendar year is attached hereto as Exhibit A.
EXHIBIT B
A Financial Data Schedule is attached hereto as Exhibit B.
EXHIBIT C
Not applicable.
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The above-named Claimant has caused this statement to be duly executed on
its behalf by its authorized officer on this 26th day of February, 1998.
ENERGY CORPORATION OF AMERICA
-----------------------------
(Name of claimant)
By: /s/ John Mork
--------------------------
Name: John Mork
Title: President, Chief Executive Officer
CORPORATE SEAL
Attest:
/s/ Pamela T. Gates
- ---------------------------------
Name: Pamela T. Gates
Title: Secretary
Name, title and address of officer to whom notices and correspondence concerning
this statement should be addressed:
John Mork
Energy Corporation of America
4643 South Ulster Street, Suite 1100
Denver, Colorado 80237
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EXHIBIT A
<TABLE>
<CAPTION>
ENERGY CORPORATION OF AMERICA
CONSOLIDATING BALANCE SHEETS
AS OF DECEMBER 31, 1997
UNAUDITED
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ECA EAEC WESTECH WENZL WAC ESC TOTAL ELIM
--- ---- ------- ----- --- --- ----- ----
ASSETS
------
Cash $ 10,795,499 $ 2,918,699 $ 411,957 $ 391,273 $ 32,476 $ 1,596,010 $ 16,145,914
Accounts Receivable 377,130 17,424,056 263,298 314,198 28,894 35,041,868 53,449,444
Due from affiliates 21,394,961 (2,295,718) (19,478,606) (3,031,083) (773,099) 4,183,545 -
Inventory - 160,311 17,894,404 18,054,715
Income tax receivable (5,702,764) 764,405 5,132,376 194,017
Deferred income tax (2,807,000) 1,440,072 29,816 4,949,642 3,612,530
Prepaid and other 268,223 458,417 58,197 3,433,605 4,218,442
-------------------------------------------------------------------------------------------------------------
Total current assets 24,326,049 20,870,242 (18,715,338) (2,325,612) (711,729) 72,231,450 95,675,062 -
-------------------------------------------------------------------------------------------------------------
Oil and gas
properties 10,000 188,820,621 9,604,018 214,484 7,650,443 206,299,566
Utility &
transmission plant - 166,642,160 166,642,160
Other property 1,214,902 24,096,937 255,825 25,000 1,397,294 26,989,958
Pipelines - 17,215,772 17,215,772
-------------------------------------------------------------------------------------------------------------
1,224,902 230,133,330 9,859,843 239,484 - 175,689,897 417,147,456
Accumulated
depreciation (77,814) (79,212,270) (141,498) (11,805) (19,213,653) (98,657,040)
-------------------------------------------------------------------------------------------------------------
1,147,088 150,921,060 9,718,345 227,679 - 156,476,244 318,490,416
-------------------------------------------------------------------------------------------------------------
Investment in
affiliate 185,530,312 185,530,312 (185,530,312)
Deferred financing
costs 7,119,253 2,848,825 9,968,078
Notes receivable - 1,908,179 2,466,082 1,500,000 5,874,261
Notes receivable-
related party 25,000 1,210,741 1,235,741
Deferred utility
charges - 17,770,842 17,770,842
Deferred income taxes (7,119,677) 7,119,677 -
Other long-term
assets 91,965 3,887,803 73,128 5,514 131,449 4,189,859
-------------------------------------------------------------------------------------------------------------
Total other assets 185,646,854 14,126,400 2,539,210 5,514 1,631,449 20,619,667 224,569,094 (185,530,312)
-------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $211,119,990 $185,917,702 $(6,457,783) $(2,092,419) $ 919,720 $249,327,361 $638,734,571 $(185,530,312)
=============================================================================================================
</TABLE>
<PAGE>
ENERGY CORPORATION OF AMERICA
CONSOLIDATING BALANCE SHEETS
AS OF DECEMBER 31, 1997
UNAUDITED
Consolidated
-----------------
ASSETS
------
Cash $ 16,145,914
Accounts Receivable 53,449,444
Due from affiliates -
Inventory 18,054,715
Income tax receivable 194,017
Deferred income tax 3,612,530
Prepaid and other 4,218,442
-----------------
Total current assets 95,675,062
-----------------
Oil and gas
properties 206,299,566
Utility &
transmission plant 166,642,160
Other property 26,989,958
Pipelines 17,215,772
-----------------
417,147,456
Accumulated
depreciation (98,657,040)
-----------------
318,490,416
-----------------
Investment in
affiliate -
Deferred financing
costs 9,968,078
Notes receivable 5,874,261
Notes receivable-
related party 1,235,741
Deferred utility
charges 17,770,842
Deferred income taxes -
Other long-term
assets 4,189,859
-----------------
Total other assets 39,038,781
-----------------
TOTAL ASSETS $ 453,204,259
==================
<PAGE>
<TABLE>
<CAPTION>
ENERGY CORPORATION OF AMERICA
CONSOLIDATING BALANCE SHEETS
AS OF DECEMBER 31, 1997
UNAUDITED
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ECA EAEC WESTECH WENZL WAC ESC TOTAL ELIM
--- ---- ------- ----- --- --- ----- ----
LIABILITIES & EQUITY
Accounts Payable $ 2,851,240 $ 13,232,093 $ 918,439 $ 94,456 $ 30,000 $ 16,058,203 $ 33,184,431
Current maturities -
L/T debt 52,972 52,972
Short-term borrowings 43,086,000 43,086,000
Funds held for
future distrib. 6,479,564 7,756 6,487,320
Income taxes payable (1,295,634) (1,704,855) (1,169,989) 4,170,478 -
Accrued taxes payable 2,646 5,120,868 15,431 4,359,911 9,498,856
Overrecovered gas
costs 8,171,886 8,171,886
Other current
liabilities (69,961) 8,098,202 8,028,241
-------------------------------------------------------------------------------------------------------------
Total current
liabilities 1,558,252 23,180,642 (298,324) 94,456 4,200,478 79,774,202 108,509,706
-------------------------------------------------------------------------------------------------------------
Long-term debt,
less current 200,000,000 68,034 60,000,000 260,068,034
Deferred revenue 17,305,740 17,305,740
Deferred income
taxes (13,538,579) 18,265,067 (690,617) 1,821,173 23,140,943 28,997,987
Other long-term
liability 1,212,855 12,485,391 13,698,246
-------------------------------------------------------------------------------------------------------------
Total long-term
liabilities 186,461,421 36,851,696 (690,617) - 1,821,173 95,626,334 320,070,007
-------------------------------------------------------------------------------------------------------------
Total liabilities 188,019,673 60,032,338 (988,941) 94,456 6,021,651 175,400,536 428,579,713
Minority Interest - - - - - - - 1,677,192
Stockholders' equity 23,100,317 125,885,364 (5,468,842) (2,186,875) (5,101,931) 73,926,825 210,154,858 (187,207,504)
-------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES
AND EQUITY $211,119,990 $185,917,702 $(6,457,783) $(2,092,419) $ 919,720 $249,327,361 $638,734,571 $(185,530,312)
=============================================================================================================
</TABLE>
<PAGE>
CONSOLIDATED
------------
LIABILITIES & EQUITY
Accounts Payable $ 33,184,431
Current maturities -
L/T debt 52,972
Short-term borrowings 43,086,000
Funds held for
future distrib. 6,487,320
Income taxes payable -
Accrued taxes payable 9,498,856
Overrecovered gas
costs 8,171,886
Other current
liabilities 8,028,241
-------------
Total current
liabilities 108,509,706
-------------
Long-term debt,
less current 260,068,034
Deferred revenue 17,305,740
Deferred income
taxes 28,997,987
Other long-term
liability 13,698,246
-------------
Total long-term
liabilities 320,070,007
-------------
Total liabilities 428,579,713
Minority Interest 1,677,192
Stockholders' equity 22,947,354
-------------
TOTAL LIABILITIES
AND EQUITY $453,204,259
=============
<PAGE>
<TABLE>
<CAPTION>
ENERGY CORPORATION OF AMERICA
CONSOLIDATING BALANCE SHEETS
AS OF DECEMBER 31, 1997
UNAUDITED
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ECA EAEC WESTECH WENZL WAC ESC TOTAL ELIM
--- ---- ------- ----- --- --- ----- ----
REVENUES:
- ---------
Utility gas sales &
transportation $ - $ - $ 47,981 $ - $ $173,396,655 $173,444,636
Gas marketing &
pipeline sales 144,953,861 - - - - 144,953,861 -
Oil & gas sales 21,766,056 174,175 - 2,609,848 3,782,580 28,332,659 -
Well operations &
service - 6,379,232 392,382 - - 7,616,688 14,388,302 -
Other revenues (3,098,289) 935,526 - - (164,599) 646,614 (1,680,748) 3,098,289
-------------------------------------------------------------------------------------------------------------
Total revenues (3,098,289) 174,034,675 614,538 - 2,445,249 185,442,537 359,438,710 3,098,289
-------------------------------------------------------------------------------------------------------------
COSTS AND EXPENSES:
- -------------------
Utility gas purchased - - - - - 93,438,142 93,438,142 -
Gas marketing &
pipeline cost - 142,969,542 - - - - 142,969,542 -
Field & lease
operational - 8,481,841 198,397 250,624 1,127,785 8,019,918 18,078,565 -
Utility operations &
maintenance - - - - - 21,531,097 21,531,097 -
General and
administrative 3,057,112 4,665,041 804,925 124,545 189,393 15,560,044 24,401,060 (720,000)
Taxes other than
income 14,323 1,742,087 19,476 - 81,276 14,795,687 16,652,849 -
Depletion, depr.,
amortiz.-O&G - 7,520,598 38,521 - 218,229 - 7,777,348 -
Depletion, depr.,
amortiz.-Other 49,999 2,722,689 37,709 10,522 112,548 8,253,373 11,186,840 -
Impairment &
exploratory costs - 4,975,938 5,014,385 1,506,218 - - 11,496,541 -
-------------------------------------------------------------------------------------------------------------
Total operating
expenses 3,121,434 173,077,736 6,133,413 1,891,910 1,729,231 161,598,261 347,531,985 (720,000)
-------------------------------------------------------------------------------------------------------------
INCOME FROM
OPERATIONS (6,219,723) 956,939 (5,498,875) (1,891,910) 716,018 23,844,276 11,906,725 3,818,289
OTHER (INCOME) EXPENSE:
- -----------------------
Interest 12,142,517 8,906,917 - (489) 374,556 16,168,233 37,591,734 -
Gain on sale of
property - (197,104) (260,302) (4,155) (7,767,815) - (8,229,376) -
Other (income)
expense (861,245) (3,076,351) 6,150 (28,807) (83,975) 43,216 (4,001,012) -
-------------------------------------------------------------------------------------------------------------
INCOME BEFORE INC.
TAXES & MIN. INT. (17,500,995) (4,676,523) (5,244,723) (1,858,458) 8,193,252 7,632,827 (13,454,620) 3,818,289
Provision for
income taxes (6,651,508) (2,218,028) (1,649,322) - 4,830,766 2,121,803 (3,566,289) -
Minority Interest - - - - 95,006 - 95,006 (122,926)
-------------------------------------------------------------------------------------------------------------
NET INCOME (LOSS) $(10,849,487) $(2,458,495) $(3,595,401) (1,858,458) $3,267,480 $ 5,511,024 $ (9,983,337) $3,941,215
=============================================================================================================
</TABLE>
<PAGE>
CONSOLIDATED
------------
REVENUES:
- ---------
Utility gas sales & 173,444,636
transportation
Gas marketing &
pipeline sales 144,953,861
Oil & gas sales 28,332,659
Well operations &
service 14,388,302
Other revenues 1,417,541
-------------
Total revenues 362,536,999
-------------
COSTS AND EXPENSES:
- -------------------
Utility gas purchased 93,438,142
Gas marketing &
pipeline cost 142,969,542
Field & lease
operational 18,078,565
Utility operations &
maintenance 21,531,097
General and
administrative 23,681,060
Taxes other than
income 16,652,849
Depletion, depr.,
amortiz.-O&G 7,777,348
Depletion, depr.,
amortiz.-Other 11,186,840
Impairment &
exploratory costs 11,496,541
-------------
Total operating
expenses 346,811,985
-------------
INCOME FROM
OPERATIONS 15,725,014
OTHER (INCOME) EXPENSE:
- -----------------------
Interest 37,591,734
Gain on sale of
property (8,229,376)
Other (income)
expense (4,001,012)
-------------
INCOME BEFORE INC.
TAXES & MIN. INT. (9,636,331)
Provision for
income taxes (3,566,289)
Minority Interest (27,920)
-------------
NET INCOME (LOSS) (6,042,122)
=============
<PAGE>
EXHIBIT B
FINANCIAL DATA SCHEDULE
Period-Type Year
Fiscal-Year-End Jun-30-1998
Period-Start Jan-01-1997
Period-End Dec-31-1997
Book-Value Per-Book
Total-Assets 453,204,258
Total-Operating-Revenue 362,536,999
Net-Income (6,042,122)
