File No. 69-418
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
<PAGE>
The Claimant is a privately held West Virginia corporation formed primarily as a
holding company. The common stockholders of Claimant are as follows: Mark and
Carolyn Brewer, as joint tenants with right of survivorship; K. W. Brill; Gaston
Caperton; Joseph E. Casabona; Colorado Community Church; Peter H. Coors; L. B.
Curtis and Rose A. Curtis as Trustees of the Curtis Family Revocable Trust;
David L. Curtis; John J. Dorgan and Cynthia Dorgan as Trustees of the Dorgan
Living Trust; ECA Foundation; J. Michael Forbes; J. Michael Forbes as Trustee
for the Alison P. Mork Irrevocable Trust; J. Michael Forbes as Trustee for the
Kyle M. Mork Irrevocable Trust; Pamela T. Gates; Thomas R. Goodwin; Richard E.
Heffelfinger; F. H. and Kathy L. McCullough, III, as joint tenants with right of
survivorship; Leslie McCullough Trust; Meredith McCullough Trust; Kristin
McCullough Trust; Katherine F. McCullough Trust; John and Julie Mork, as joint
tenants with right of survivorship; Julie M. Mork; A. C. Nielsen, Jr.; Donald C.
Supcoe; Jennifer Swanson; and H. Laban White. The Claimant also has nonvoting
Class A Stock that has been issued to common stockholders and to employees of
the Claimant and its subsidiaries.
Subsidiaries of the Claimant:
- -------------------------------
A. Eastern Systems Corporation
414 Summers Street
Charleston, West Virginia 25301
Eastern Systems Corporation ("ESC") is a West Virginia corporation, wholly owned
by Claimant. It was incorporated to be a 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 West Virginia
through a 4,000 mile distribution system, principally in Charleston, Beckley,
Huntington and Wheeling, West Virginia. Mountaineer is a regulated 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. Mapcom Systems, Inc.
7345 Whitepine Road
Richmond, Virginia 23237
<PAGE>
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.
On December 20, 1999 the Claimant entered into a Stock Purchase and Sale
Agreement with Allegheny Energy, Inc., wherein the Claimant agreed to sell all
of the stock of its wholly owned subsidiary Mountaineer and its subsidiaries for
$323 million, which includes the assumption of approximately $100 million of
debt, $223 million net to the Claimant. The sale is subjected to the regulatory
approval by the Securities and Exchange Commission pursuant to the Public
Utility Holding Company Act of 1935, the West Virginia Public Service Commission
and the Federal Trade Commission. Subject to the approvals being received, the
Claimant expects that the transaction will close in the fourth quarter of the
current fiscal year. In the Claimant's most recently filed Form 10-Q, the
financial statements have been reclassified to exclude the operating results of
Mountaineer from continuing operations, effective December 31, 1999, and for
accounting purposes to classify such results as discontinued operations. For
presentation purposes of this filing, the results of Mountaineer are included
and made part of the attached Exhibits.
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 of West Virginia and Pennsylvania. Eastern
American also has properties in Virginia, Ohio 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,
wholly owned by Eastern American. NGT builds compressed natural gas stations
and provides compressed natural gas as an alternative motor vehicle fuel.
<PAGE>
ii. Eastern Marketing Corporation
501 56th Street
Charleston, West Virginia 25304
Eastern Marketing Corporation is a West Virginia corporation, wholly owned by
Eastern American. Eastern Marketing Corporation markets the majority of Eastern
American's natural gas. Eastern Marketing Corporation also, to a limited
extent, buys, sells and markets gas from other third party producers, marketers
and end users through the United States.
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 West Virginia.
<PAGE>
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 of West Virginia. Allegheny owns interests in these
properties either directly or through joint ventures or partnerships with third
parties.
C. Westech Energy Corporation
4643 South Ulster Street Suite 1190
Denver, Colorado 80237
Westech Energy Corporation, a Colorado corporation, wholly owned by Claimant, is
an oil and gas exploration and development company in the Rocky Mountains and
Australia.
i. Westech Energy Australia, LLC
4643 South Ulster Street Suite 1190
Denver, Colorado 80237
Westech Energy Australia, LLC, a Colorado limited liability corporation, was
formed in December 1999 primarily as a holding company for Australian operations
and is wholly owned by Westech Energy Corporation.
D. Westech Energy New Zealand, LLC
4643 South Ulster Street Suite 1190
Denver, Colorado 80237
Westech Energy New Zealand, LLC, a Colorado limited liability corporation, was
formed in August 1999 primarily as a holding company for New Zealand operations
and is wholly owned by the Claimant.
<PAGE>
i. Westech Energy New Zealand
4643 South Ulster Street Suite 1190
Denver, Colorado 80237
Westech Energy New Zealand ("WENZ") was incorporated in June, 1995 under the
laws of New Zealand and is wholly owned by the Claimant. WENZ changed its
status to an unlimited liability company during 1999. WENZ holds interests in
petroleum exploration permits covering acreage in 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 was an interest in a limited liability corporation
that has certain oil producing properties, located in Los Angeles County,
California, that has subsequently been transferred to Westech Energy
Corporation.
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
primarily 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 West Virginia and includes pipelines, regulators, meters and other equipment
needed for distribution. Gas purchased from suppliers is delivered either
directly into Mountaineer's distribution system or into its city gate via
interstate pipelines, including Columbia Gas Transmission Corporation, Tennessee
Gas Pipeline and other sources.
<PAGE>
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 and related revenue of electric energy sold (at
retail or wholesale), and Mcf and related revenue of natural and manufactured
gas distributed at retail.
22,556,792 Mcf $151,011,315
(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
(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 and related cost of electric energy and Mcf and
related cost of natural or manufactured gas purchased outside the State in which
each such company is organized or at the State line.
None
Effective November 1, 1998, Mountaineer entered into a gas supply management
agreement. As a result of this and other gas supply agreements, Mountaineer
purchased 100% of its gas supply at its city gate or directly into its
distribution system, which is located solely in West Virginia.
<PAGE>
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
(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
<PAGE>
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
<PAGE>
The above-named Claimant has caused this statement to by duly executed on
its behalf by its authorized officer on this 29th day of February, 2000.
ENERGY CORPORATION OF AMERICA
--------------------------------
(Name of claimant)
By: /S/ JOHN MORK
---------------------------------
Name: John Mork
Title: President,
Chief Executive Officer
CORPORATE SEAL
Attest:
/S/ DONALD C. SUPCOE
- -----------------------------------
Name: Donald C. Supcoe
Title: Secretary
Name, title and address of officer to whom notices and correspondence concerning
this statement should be addressed:
Michael S. Fletcher
Chief Financial Officer and Treasurer
Energy Corporation of America
4643 South Ulster Street, Suite 1100
Denver, Colorado 80237
<PAGE>
EXHIBIT A
PAGE 1 OF 4
<TABLE>
<CAPTION>
ENERGY CORPORATION OF AMERICA
CONSOLIDATING BALANCE SHEETS
AS OF DECEMBER 31, 1999
UNAUDITED
*
<S> <C> <C> <C> <C> <C> <C>
ECA EAEC WESTECH WENZL WAC ESC
------------- ------------- ------------- ------------- ------------- --------------
ASSETS
Cash. . . . . . . . . . . . . . $ 13,599,890 $ 628,555 $ (33,111) $ 112,267 $ - $ 1,494,573
Accounts receivable . . . . . . 428,703 11,487,280 552,164 578,513 - 30,256,010
Due from affiliates . . . . . . 39,752,029 3,237,658 (36,522,935) (10,651,297) $ 1,000 4,183,545
Inventory . . . . . . . . . . . - 369,210 - - - -
Income tax receivable . . . . . 1,658,576 - 1,521,329 - -
Deferred income tax . . . . . . (2,405,123) 2,566,000 29,816 - - 3,372,057
Prepaid and other . . . . . . . 105,177 276,392 14,369 108,653 - 29,629,657
------------- ------------- ------------- ------------- ------------- --------------
Total current assets. . . . . 53,139,252 18,565,095 (34,438,368) (9,851,864) 1,000 68,935,842
------------- ------------- ------------- ------------- ------------- --------------
Oil and gas properties. . . . . 2,464,000 192,102,644 14,741,607 3,017,589 - 9,057,309
Utility & transmission plant. . - - - - - 198,947,754
Other property. . . . . . . . . 3,590,814 9,710,526 435,316 117,974 - 632,752
Pipelines . . . . . . . . . . . - 19,048,246 - - - -
------------- ------------- ------------- ------------- ------------- --------------
6,054,814 220,861,416 15,176,923 3,135,563 - 208,637,815
Accumulated depreciation. . . . (729,395) (85,527,092) (953,372) (32,731) (39,891,249))
------------- ------------- ------------- ------------- ------------- --------------
5,325,419 135,334,324 14,223,551 3,102,832 - 168,746,566
------------- ------------- ------------- ------------- ------------- --------------
Investment in affiliate . . . . 155,858,591 - - - - -
Deferred financing costs. . . . 5,609,527 - - - - 2,607,101
Notes receivable. . . . . . . . 1,525,936 1,653,764 - - - 111,727
Deferred utility charges. . . . - - - - - 17,558,268
Deferred income taxes . . . . . 292,439 - - - - -
Other long-term assets. . . . . 6,934,214 7,675,493 80,097 480 - -
------------- ------------- ------------- ------------- ------------- --------------
Total other assets. . . . . . 170,220,707 9,329,257 80,097 480 - 20,277,096
------------- ------------- ------------- ------------- ------------- --------------
TOTAL ASSETS. . . . . . . . . . $228,685,378 $163,228,676 $(20,134,720) $ (6,748,552) $ 1,000 $ 257,959,504
============= ============= ============= ============= ============= ==============
LIABILITIES & EQUITY
- -------------------------------
Accounts payable . . . . . . . $ 3,563,967 $ 6,583,669 $ 503,536 $ 834,415 $ - $ 10,785,163
Current maturities - L/T debt. 2,710,152 134,251 - - - 15,000
Short-term borrowings. . . . . - - - - - 26,826,600
Funds held for future distrib. - 5,441,532 14,978 - - -
Income taxes payable . . . . . (6,671,398) 6,100,264 (2,326,269) (268,215) $ - 3,165,618
Accrued taxes payable. . . . . - 4,790,791 19,001 - - 3,137,254
Overrecovered gas costs. . . . - - - - - 2,346,513
Other current liabilities. . . - - (15,277) - - 10,901,476
------------- ------------- ------------- ------------- ------------- --------------
Total current liabilities. . (397,279) 23,050,507 (1,804,031) 566,200 - 57,177,624
------------- ------------- ------------- ------------- ------------- --------------
Long-term debt, less current . 219,000,000 631,476 - - - 100,123,750
Deferred revenue . . . . . . . 10,000,000 12,706,213 - - - -
Deferred income taxes. . . . . (8,666,031) 14,083,000 (2,890,160) - - 22,426,005
Other long-term liability. . . - 1,007,074 - - - 11,122,552
------------- ------------- ------------- ------------- ------------- --------------
Total long-term liabilities. 220,333,969 28,427,763 (2,890,160) - - 133,672,307
------------- ------------- ------------- ------------- ------------- --------------
Total liabilities. . . . . . 219,936,690 51,478,270 (4,694,191) 566,200 - 190,849,931
Stockholders equity. . . . . . 8,748,688 111,750,406 (15,440,529) (7,314,752) 1,000 67,109,573
------------- ------------- ------------- ------------- ------------- --------------
TOTAL LIABILITIES AND EQUITY. . $228,685,378 $163,228,676 $(20,134,720) $ (6,748,552) $ 1,000 $ 257,959,504
============= ============= ============= ============= ============= ==============
<S> <C> <C> <C>
TOTAL ELIM Consolidated
------------ -------------- -------------
ASSETS
Cash. . . . . . . . . . . . . . $ 15,802,174 $ - $ 15,802,174
Accounts receivable . . . . . . 43,302,670 $ - 43,302,670
Due from affiliates . . . . . . - $ - -
Inventory . . . . . . . . . . . 369,210 $ - 369,210
Income tax receivable . . . . . $ 3,179,905 - 3,179,905
Deferred income tax . . . . . . 3,562,750 $ - 3,562,750
Prepaid and other . . . . . . . 30,134,248 $ - 30,134,248
------------ -------------- -------------
Total current assets. . . . . 96,350,957 - 96,350,957
------------ -------------- -------------
Oil and gas properties. . . . . 221,383,149 - 221,383,149
Utility & transmission plant. . 198,947,754 - 198,947,754
Other property. . . . . . . . . 14,487,382 - 14,487,382
Pipelines . . . . . . . . . . . 19,048,246 - 19,048,246
------------ -------------- -------------
453,866,531 - 453,866,531
Accumulated depreciation. . . . (127,133,839) - (127,133,839)
------------ -------------- -------------
326,732,692 - 326,732,692
------------ -------------- -------------
Investment in affiliate . . . . 155,858,591 (155,858,591) -
Deferred financing costs. . . . 8,216,628 - 8,216,628
Notes receivable. . . . . . . . 3,291,427 - 3,291,427
Deferred utility charges. . . . 17,558,268 - 17,558,268
Deferred income taxes . . . . . 292,439 - 292,439
Other long-term assets. . . . . 14,690,284 - 14,690,284
------------ -------------- -------------
Total other assets. . . . . . 199,907,637 (155,858,591) 44,049,046
------------ -------------- -------------
TOTAL ASSETS. . . . . . . . . . $622,991,286 $(155,858,591) $ 467,132,695
============ ============== =============
LIABILITIES & EQUITY
- -------------------------------
Accounts payable . . . . . . . $ 22,270,750 $ - $ 22,270,750
Current maturities - L/T debt. 2,859,403 $ - 2,859,403
Short-term borrowings. . . . . 26,826,600 $ - 26,826,600
Funds held for future distrib. 5,456,510 $ - 5,456,510
Income taxes payable . . . . . - $ - -
Accrued taxes payable. . . . . 7,947,046 $ - 7,947,046
Overrecovered gas costs. . . . 2,346,513 $ - 2,346,513
Other current liabilities. . . 10,886,199 $ - 10,886,199
------------ -------------- -------------
Total current liabilities. . 78,593,021 - 78,593,021
------------ -------------- -------------
Long-term debt, less current . 319,755,226 - 319,755,226
Deferred revenue . . . . . . . 22,706,213 - 22,706,213
Deferred income taxes. . . . . 24,952,814 - 24,952,814
Other long-term liability. . . 12,129,626 - 12,129,626
------------ -------------- -------------
Total long-term liabilities. 379,543,879 - 379,543,879
------------ -------------- -------------
Total liabilities. . . . . . 458,136,900 - 458,136,900
Stockholders equity. . . . . . 164,854,386 (155,858,591) 8,995,795
------------ -------------- -------------
TOTAL LIABILITIES AND EQUITY. . $622,991,286 $(155,858,591) $ 467,132,695
============ ============== =============
<FN>
* See Energy Systems Corporation consolidating balance sheet included in the exhibits.
</TABLE>
EXHIBIT A
PAGE 2 OF 4
<TABLE>
<CAPTION>
ENERGY CORPORATION OF AMERICA
CONSOLIDATING INCOME STATEMENTS
FOR THE CALENDAR YEAR ENDED DECEMBER 31, 1999
UNAUDITED
*
<S> <C> <C> <C> <C> <C> <C>
ECA EAEC WESTECH WENZL WAC ESC
------------- ------------- ------------- ------------ ------------ -------------
REVENUES:
Utility gas sales & transportation. $ - $ - $ - $ - $ - $162,238,578
Gas marketing & pipeline sales. . . - 75,294,878 - - - 7,629,490
Oil & gas sales . . . . . . . . . . - 19,104,648 771,364 - - 3,514,321
Well operations & service . . . . . - 5,994,072 685,117 - - -
Other revenues. . . . . . . . . . . (2,307,958) - - - - 988,600
------------- ------------- ------------- ------------ ------------ -------------
Total revenues. . . . . . . . . . . (2,307,958) 100,393,598 1,456,481 - - 174,370,989
------------- ------------- ------------- ------------ ------------ -------------
COSTS AND EXPENSES:
- -----------------------------------
Utility gas purchased . . . . . . . - - - - - 74,488,074
Gas marketing & pipeline cost . . . - 72,118,591 - - - 7,296,723
Field & lease operating . . . . . . - 7,866,763 221,310 345,964 - 1,207,591
Utility operations & maintenance. . - - - - - 22,829,931
General and administrative. . . . . 3,947,007 4,929,075 1,431,976 238,383 - 15,716,804
Taxes other than income . . . . . . 59,217 1,284,619 46,534 - (25) 14,005,625
Depletion, depr., amortiz.-O&G. . . - 7,727,634 526,192 - - 507,409
Depletion, depr., amortiz.-other. . 357,882 2,658,114 72,755 15,909 - 10,900,845
Impairment & exploratory costs. . . - 2,639,399 9,294,917 7,496,371 - -
------------- ------------- ------------- ------------ ------------ -------------
Total operating expenses. . . . . . 4,364,106 99,224,195 11,593,684 8,096,627 (25) 146,953,002
------------- ------------- ------------- ------------ ------------ -------------
INCOME (LOSS) FROM OPERATIONS . . . (6,672,064) 1,169,403 (10,137,203) (8,096,627) 25 27,417,987
OTHER (INCOME) EXPENSE:
- -----------------------------------
Interest. . . . . . . . . . . . . . 21,504,437 80,547 - - - 7,065,976
Gain on sale of property. . . . . . - 1,169,646 (169,518) - - 1,000,128
Other (income) expense. . . . . . . (589,958) (123,417) (7,020) 16,498 - (250,077)
------------- ------------- ------------- ------------ ------------ -------------
INCOME (LOSS) FROM OPERATIONS
BEFORE INCOME TAXES. . . . . . . (27,586,543) 42,627 (9,960,665) (8,113,125) 25 20,602,088
Provision for income taxes. . . . . (11,486,664) 524,769 (2,763,284) (268,214) - 8,105,637
------------- ------------- ------------- ------------ ------------ -------------
NET INCOME (LOSS) . . . . . . . . . $(16,099,879) $ (482,142) $ (7,197,381) $(7,844,911) $ 25 $ 12,496,451
============= ============= ============= ============ ============ =============
<S> <C> <C> <C>
TOTAL ELIMS CONSOLIDATED
------------- ------------ --------------
REVENUES:
Utility gas sales & transportation. $162,238,578 $ - $ 162,238,578
Gas marketing & pipeline sales. . . 82,924,368 - 82,924,368
Oil & gas sales . . . . . . . . . . 23,390,333 - 23,390,333
Well operations & service . . . . . 6,679,189 (324,948) 6,354,241
Other revenues. . . . . . . . . . . (1,319,358) 2,307,958 988,600
------------- ------------ --------------
Total revenues. . . . . . . . . . . 273,913,110 1,983,010 275,896,120
------------- ------------ --------------
COSTS AND EXPENSES:
- -----------------------------------
Utility gas purchased . . . . . . . 74,488,074 - 74,488,074
Gas marketing & pipeline cost . . . 79,415,314 - 79,415,314
Field & lease operating . . . . . . 9,641,628 (282,448) 9,359,180
Utility operations & maintenance. . 22,829,931 - 22,829,931
General and administrative. . . . . 26,263,245 (720,000) 25,543,245
Taxes other than income . . . . . . 15,395,970 - 15,395,970
Depletion, depr., amortiz.-O&G. . . 8,761,235 - 8,761,235
Depletion, depr., amortiz.-other. . 14,005,505 - 14,005,505
Impairment & exploratory costs. . . 19,430,687 (42,500) 19,388,187
------------- ------------ --------------
Total operating expenses. . . . . . 270,231,589 (1,044,948) 269,186,641
------------- ------------ --------------
INCOME (LOSS) FROM OPERATIONS . . . 3,681,521 3,027,958 6,709,479
OTHER (INCOME) EXPENSE:
- -----------------------------------
Interest. . . . . . . . . . . . . . 28,650,960 - 28,650,960
Gain on sale of property. . . . . . 1,000,128 - 1,000,128
Other (income) expense. . . . . . . (953,974) - (953,974)
------------- --------------
INCOME (LOSS) FROM OPERATIONS
BEFORE INCOME TAXES. . . . . . . (25,015,593) 3,027,958 (21,987,635)
Provision for income taxes. . . . . (5,887,756) - (5,887,756)
------------- ------------ --------------
NET INCOME (LOSS) . . . . . . . . . $(19,127,837) $ 3,027,958 $ (16,099,879)
============= ============ ==============
<FN>
* See Energy Systems Corporation consolidating income statement included in the exhibits.
</TABLE>
EXHIBIT A
PAGE 3 OF 4
<TABLE>
<CAPTION>
EASTERN SYSTEMS CORPORATION
CONSOLIDATING BALANCE SHEETS
AS OF DECEMBER 31, 1999
UNAUDITED
<S> <C> <C> <C> <C> <C>
EASTERN MOUNTAINEER MOUNTAINEER MAPCOM
SYSTEMS GAS GAS SERVICES SYSTEMS, CONSOLIDATING
CORPORATION COMPANY INC. INC. ENTRIES
------------ ------------- ------------- --------- --------------
ASSETS
CURRENT ASSETS
Cash . . . . . . . . . . . . . . . . . . . . . . . . 50,835 (852,676) 1,342,040 101,698 852,676
Accounts receivable
Utility gas and transportation. . . . . . . . . . 0 28,720,146 0 0 0
Gas marketing & pipeline. . . . . . . . . . . . . 0 0 0 0 0
Oil and gas . . . . . . . . . . . . . . . . . . . 0 0 539,534 0 0
Other . . . . . . . . . . . . . . . . . . . . . . 0 0 0 144,643 0
Allowance for doubtful accounts. . . . . . . . 0 (701,479) 0 0 0
Due from (to) affiliates . . . . . . . . . . . . . . 4,183,545 1,142,830 410,336 0 0
Inventory. . . . . . . . . . . . . . . . . . . . . . 0 0 0 0 0
Income tax receivable. . . . . . . . . . . . . . . . 0 0 0 0 0
Deferred income tax. . . . . . . . . . . . . . . . . 0 3,370,943 0 (32,135) 33,249
Prepaid and other. . . . . . . . . . . . . . . . . . 0 27,180,209 84,872 18,063 2,346,513
------------ ------------- ------------- --------- --------------
Total current assets. . . . . . . . . . . . . . . 4,234,380 58,859,973 2,376,782 232,269 3,232,438
------------ ------------- ------------- --------- --------------
PROPERTY, PLANT AND EQUIPMENT
Oil and gas property . . . . . . . . . . . . . . . . 0 0 9,195,704 0 (138,395)
Utility and transmission plants. . . . . . . . . . . 0 272,901,525 4,827,066 0 (78,780,837)
Other property . . . . . . . . . . . . . . . . . . . 0 0 353,563 279,189 0
Pipeline . . . . . . . . . . . . . . . . . . . . . . 0 0 0 0 0
------------ ------------- ------------- --------- --------------
0 272,901,525 14,376,333 279,189 (78,919,232)
Accumulated depreciation, depletion and amortization 0 (129,300,212) (4,317,791) (123,340) 93,850,094
------------ ------------- ------------- --------- --------------
Property, plant & equipment, net. . . . . . . . . 0 143,601,313 10,058,542 155,849 14,930,862
------------ ------------- ------------- --------- --------------
OTHER ASSETS
Investment in affiliate. . . . . . . . . . . . . . . 64,091,184 10,689,384 0 0 (74,780,568)
Deferred financing costs . . . . . . . . . . . . . . 0 2,607,101 0 0 0
Notes receivable . . . . . . . . . . . . . . . . . . 0 0 0 0 0
Notes receivable-related party . . . . . . . . . . . 0 111,727 0 0 0
Deferred utility charges . . . . . . . . . . . . . . 0 0 0 0 0
Deferred income taxes. . . . . . . . . . . . . . . . 0 0 0 0 0
Other long-term assets . . . . . . . . . . . . . . . 0 18,958,148 10,115 0 (1,409,995)
------------ ------------- ------------- --------- --------------
Total other assets. . . . . . . . . . . . . . . . 64,091,184 32,366,360 10,115 0 (76,190,563)
------------ ------------- ------------- --------- --------------
TOTAL ASSETS. . . . . . . . . . . . . . . . . . . 68,325,564 234,827,646 12,445,439 388,118 (58,027,263)
============ ============= ============= ========= ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable . . . . . . . . . . . . . . . . . . 301,906 8,260,461 1,283,732 86,388 852,676
Current maturities of long-term debt . . . . . . . . 0 15,000 0 0 0
Short-term borrowings. . . . . . . . . . . . . . . . 0 26,826,600 0 0 0
Funds held for future distribution . . . . . . . . . 0 0 0 0 0
Income tax payable . . . . . . . . . . . . . . . . . (713,526) 3,107,314 664,763 (63,196) 170,263
Accrued taxes payable. . . . . . . . . . . . . . . . 0 2,858,257 278,997 0 0
Overrecovered gas costs. . . . . . . . . . . . . . . 0 0 0 0 2,346,513
Other current liabilities. . . . . . . . . . . . . . 0 10,974,738 (106,511) 0 33,249
------------ ------------- ------------- --------- --------------
Total current liabilities . . . . . . . . . . . . (411,620) 52,042,370 2,120,981 23,192 3,402,701
------------ ------------- ------------- --------- --------------
LONG-TERM AND OTHER LIABILITIES
Long-term debt . . . . . . . . . . . . . . . . . . . 0 100,123,750 0 0 0
Gas dev obl & def trust revenue. . . . . . . . . . . 0 0 0 0 0
Deferred income taxes. . . . . . . . . . . . . . . . 0 19,883,925 0 0 2,542,080
Other long-term liabilities. . . . . . . . . . . . . 0 6,667,987 0 0 4,454,565
------------ ------------- ------------- --------- --------------
Total long-term liabilities . . . . . . . . . . . 0 126,675,662 0 0 6,996,645
------------ ------------- ------------- --------- --------------
Minority Interest. . . . . . . . . . . . . . . . . . . 0 0 0 0 0
Stockholders' Equity . . . . . . . . . . . . . . . . . 68,737,184 56,109,614 10,324,458 364,926 (68,426,609)
------------ ------------- ------------- --------- --------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY . . . . . . 68,325,564 234,827,646 12,445,439 388,118 (58,027,263)
============ ============= ============= ========= ==============
<S> <C>
EASTERN
SYSTEMS CORP.
CONSOLIDATED
--------------
ASSETS
CURRENT ASSETS
Cash . . . . . . . . . . . . . . . . . . . . . . . . 1,494,573
Accounts receivable
Utility gas and transportation. . . . . . . . . . 28,720,146
Gas marketing & pipeline. . . . . . . . . . . . . 0
Oil and gas . . . . . . . . . . . . . . . . . . . 539,534
Other . . . . . . . . . . . . . . . . . . . . . . 144,643
Allowance for doubtful accounts. . . . . . . . (701,479)
Due from (to) affiliates . . . . . . . . . . . . . . 5,736,711
Inventory. . . . . . . . . . . . . . . . . . . . . . 0
Income tax receivable. . . . . . . . . . . . . . . . 0
Deferred income tax. . . . . . . . . . . . . . . . . 3,372,057
Prepaid and other. . . . . . . . . . . . . . . . . . 29,629,657
--------------
Total current assets. . . . . . . . . . . . . . . 68,935,842
--------------
PROPERTY, PLANT AND EQUIPMENT
Oil and gas property . . . . . . . . . . . . . . . . 9,057,309
Utility and transmission plants. . . . . . . . . . . 198,947,754
Other property . . . . . . . . . . . . . . . . . . . 632,752
Pipeline . . . . . . . . . . . . . . . . . . . . . . 0
--------------
208,637,815
Accumulated depreciation, depletion and amortization (39,891,249)
--------------
Property, plant & equipment, net. . . . . . . . . 168,746,566
--------------
OTHER ASSETS
Investment in affiliate. . . . . . . . . . . . . . . 0
Deferred financing costs . . . . . . . . . . . . . . 2,607,101
Notes receivable . . . . . . . . . . . . . . . . . . 0
Notes receivable-related party . . . . . . . . . . . 111,727
Deferred utility charges . . . . . . . . . . . . . . 0
Deferred income taxes. . . . . . . . . . . . . . . . 0
Other long-term assets . . . . . . . . . . . . . . . 17,558,268
--------------
Total other assets. . . . . . . . . . . . . . . . 20,277,096
--------------
TOTAL ASSETS. . . . . . . . . . . . . . . . . . . 257,959,504
==============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable . . . . . . . . . . . . . . . . . . 10,785,163
Current maturities of long-term debt . . . . . . . . 15,000
Short-term borrowings. . . . . . . . . . . . . . . . 26,826,600
Funds held for future distribution . . . . . . . . . 0
Income tax payable . . . . . . . . . . . . . . . . . 3,165,618
Accrued taxes payable. . . . . . . . . . . . . . . . 3,137,254
Overrecovered gas costs. . . . . . . . . . . . . . . 2,346,513
Other current liabilities. . . . . . . . . . . . . . 10,901,476
--------------
Total current liabilities . . . . . . . . . . . . 57,177,624
--------------
LONG-TERM AND OTHER LIABILITIES
Long-term debt . . . . . . . . . . . . . . . . . . . 100,123,750
Gas dev obl & def trust revenue. . . . . . . . . . . 0
Deferred income taxes. . . . . . . . . . . . . . . . 22,426,005
Other long-term liabilities. . . . . . . . . . . . . 11,122,552
--------------
Total long-term liabilities . . . . . . . . . . . 133,672,307
--------------
Minority Interest. . . . . . . . . . . . . . . . . . . 0
Stockholders' Equity . . . . . . . . . . . . . . . . . 67,109,573
--------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY . . . . . . 257,959,504
==============
</TABLE>
EXHIBIT A
PAGE 4 OF 4
<TABLE>
<CAPTION>
EASTERN SYSTEMS CORPORATION
CONSOLIDATING INCOME STATEMENTS
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 1999
UNAUDITED
<S> <C> <C> <C> <C> <C> <C>
EASTERN MOUNTAINEER MOUNTAINEER MAPCOM EASTERN
SYSTEMS GAS GAS SERVICES SYSTEMS, CONSOLIDATING SYSTEMS CORP.
CORPORATION COMPANY INC. INC. ENTRIES CONSOLIDATED
------------ ------------ ------------- ---------- -------------- --------------
REVENUES
Utility gas sales and transportation. 0 162,238,578 0 0 0 162,238,578
Gas marketing & pipeline. . . . . . . 0 0 7,629,490 0 0 7,629,490
Oil and gas sales . . . . . . . . . . 0 0 3,514,321 0 0 3,514,321
Well & service operations . . . . . . 0 0 0 0 0 0
Other revenues. . . . . . . . . . . . 0 0 0 988,600 0 988,600
------------ ------------ ------------- ---------- -------------- --------------
Total revenues . . . . . . . . . . 0 162,238,578 11,143,811 988,600 0 174,370,989
------------ ------------ ------------- ---------- -------------- --------------
COSTS AND EXPENSES
Utility gas purchased . . . . . . . . 0 74,488,074 0 0 0 74,488,074
Gas marketing & pipeline cost . . . . 0 0 7,296,723 0 0 7,296,723
Field & lease operating . . . . . . . 0 0 1,207,591 0 0 1,207,591
Utility operations & maintenance. . . 0 22,829,931 0 0 0 22,829,931
General & administrative. . . . . . . 63,002 14,278,410 918,505 1,087,696 (630,810) 15,716,803
Taxes, other than income. . . . . . . 0 13,542,706 462,919 0 0 14,005,625
Depletion, deprec., amortiz.-O&G. . . 0 0 507,409 0 0 507,409
Depletion, deprec., amortiz.-other. . 0 9,590,509 210,579 56,662 1,043,094 10,900,844
Impairment & exploratory costs. . . . 0 0 0 0 0 0
------------ ------------ ------------- ---------- -------------- --------------
Total operating expenses . . . . . 63,002 134,729,630 10,603,726 1,144,358 412,284 146,953,000
------------ ------------ ------------- ---------- -------------- --------------
OPERATING INCOME. . . . . . . . . . . . (63,002) 27,508,948 540,085 (155,758) (412,284) 27,417,989
OTHER (INCOME) EXPENSE
Interest. . . . . . . . . . . . . . . 0 7,217,248 0 0 (151,272) 7,065,976
Gain on sale of properties. . . . . . 0 0 0 0 0 0
Other (income) & expense. . . . . . . (3,070) (195,550) (51,456) 0 0 (250,076)
------------ ------------ ------------- ---------- -------------- --------------
INCOME BEFORE INCOME TAXES. . . . . . (59,932) 20,487,250 591,541 (155,758) (261,012) 20,602,089
Income tax expense (benefit) . . . . (77,204) 8,109,290 236,259 (58,314) (104,394) 8,105,637
------------ ------------ ------------- ---------- -------------- --------------
INCOME BEFORE MINORITY INTEREST . . . 17,272 12,377,960 355,282 (97,444) (156,618) 12,496,452
Minority interest . . . . . . . . . . 0 0 0 0 0 0
------------ ------------ ------------- ---------- -------------- --------------
NET INCOME (LOSS) . . . . . . . . . . 17,272 12,377,960 355,282 (97,444) (156,618) 12,496,452
============ ============ ============= ========== ============== ==============
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
[/LEGEND]
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUN-30-2000
<PERIOD-START> JAN-01-1999
<PERIOD-ED> DEC-31-1999
<BOOK-VALUE> PER-BOOK
<TOTAL-ASSETS> 467,132,695
<TOTAL-OPERATING-REVENUES> 275,896,120
<NET-INCOME> (16,099,879)
</TABLE>
