<PAGE>
U. S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2000
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
For the transition period from
__________to __________
Commission File No. 1-4766
GATEWAY ENERGY CORPORATION
-----------------------------------------------------------------
(Exact name of small business issuer as specified in its charter)
Delaware 44-0651207
------------------------------- ------------------------------------
(State or other jurisdiction of (IRS Employer Identification Number)
incorporation or organization)
500 Dallas Street, Suite 2615
Houston, TX 77002
(Address of principal executive offices)
Issuer's telephone number: (713) 336-0844
Check whether the issuer (1) has filed all reports required to be filed
by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for
such shorter period that the registrant was required to file such reports), and
(2) has been subject to such filing requirements for the past 90 days.
Yes X No
--- ---
APPLICABLE ONLY TO CORPORATE ISSUERS
As of August 14, 2000, the Issuer had 15,312,208 shares of its common
stock outstanding.
Transitional Small Business Disclosure Format: Yes No X
--------- ---------------
<PAGE>
FORM 10-QSB
PART I
ITEM 1. FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
Page
<S> <C>
Unaudited Consolidated Balance Sheet
as of June 30, 2000. 3
Unaudited Consolidated Statements of Operations for
the three months and six months ended June 30, 2000
and June 30, 1999. 4
Unaudited Consolidated Statements of Cash Flows for
the six months ended June 30, 2000
and June 30, 1999. 5
Notes to Consolidated Financial Statements 6
</TABLE>
2
<PAGE>
GATEWAY ENERGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
JUNE 30, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
<S> <C>
ASSETS
Current Assets
Cash and cash equivalents................................................ $ 62,942
Certificates of deposit.................................................. 691,387
Trade accounts receivable................................................ 1,017,637
Inventories ............................................................. 59,707
Prepaid expenses and other assets ....................................... 230,421
------------
Total current assets.............................................. 2,062,094
------------
Property and Equipment - at cost
Gas gathering, processing and transportation............................. 8,773,646
Equipment and office furniture........................................... 664,933
------------
9,438,579
Less accumulated depreciation............................................ 3,009,215
------------
6,429,364
------------
Other Assets
Notes receivable......................................................... 119,751
Equity investment in partnership......................................... 259,124
Other.................................................................... 265,658
------------
644,533
------------
$ 9,135,991
============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable......................................................... $ 1,054,530
Current maturities of long-term debt..................................... 234,328
Accrued expenses and other liabilities................................... 59,504
------------
Total current liabilities......................................... 1,348,362
------------
Long-term Debt, less current maturities.................................... 601,522
------------
Stockholders' Equity
Preferred stock - $1.00 par value; 10,000 shares authorized; no shares
issued and outstanding................................................. -
Common stock - $0.25 par value; 17,500,000 shares
authorized; 15,312,208 shares issued and outstanding................... 3,828,050
Additional paid-in capital............................................... 15,961,401
Accumulated deficit...................................................... (12,603,344)
------------
7,186,107
------------
$ 9,135,991
============
</TABLE>
The accompanying notes are an integral part of this statement.
3
<PAGE>
GATEWAY ENERGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
---------------------------- ----------------------------
2000 1999 2000 1999
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Operating revenues
Natural gas sales.............................. $ 1,675,149 $ 1,057,767 $ 3,092,903 $ 2,238,701
Transportation and processing.................. 94,797 312,724 197,275 668,133
Other.......................................... 21,293 41,250 44,845 101,579
------------ ------------ ------------ ------------
1,791,239 1,411,741 3,335,023 3,008,413
Operating costs and expenses
Cost of natural gas purchased.................. 1,440,092 892,070 2,554,784 1,749,721
Operation and maintenance...................... 227,458 270,939 498,496 556,106
Depreciation and amortization.................. 171,231 194,621 342,537 395,523
General and administrative..................... 423,742 624,554 871,244 1,114,136
------------ ------------ ------------ ------------
2,262,523 1,982,184 4,267,061 3,815,486
------------ ------------ ------------ ------------
Operating loss................................... (471,284) (570,443) (932,038) (807,073)
Other income (expense)
Interest income................................ 14,946 19,613 30,068 40,875
Interest expense............................... (30,784) (38,930) (67,024) (78,433)
Equity in earnings of partnership.............. 22,567 19,783 42,070 40,938
Other income (expense), net.................... 106,153 4,418 275,674 9,820
------------ ------------ ------------ ------------
112,882 4,884 280,788 13,200
------------ ------------ ------------ ------------
Loss before income taxes......................... (358,402) (565,559) (651,250) (793,873)
Income taxes..................................... - - - -
------------ ------------ ------------ ------------
Net loss......................................... $ (358,402) $ (565,559) $ (651,250) (793,873)
============ ============ ============ ============
Basic and diluted loss per share................. $ (0.02) $ (0.04) $ (0.04) $ (0.05)
============ ============ ============ ============
</TABLE>
The accompanying notes are an integral part of these statements.
4
<PAGE>
GATEWAY ENERGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
SIX MONTHS ENDED JUNE 30,
----------------------------
2000 1999
------------ ------------
<S> <C> <C>
INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS
Cash flows from operating activities
Net loss................................................................ $ (651,250) $ (793,873)
Adjustments to reconcile net loss to net cash (used in)
provided by operating activities:
Equity in undistributed earnings of partnerships...................... 5,480 (20,382)
Depreciation and amortization......................................... 342,537 395,523
Gain on sale of properties............................................ (170,034) -
Non-cash expenses..................................................... 30,875 15,215
Net change in cash and cash
equivalents, resulting from changes in:
Trade accounts receivable......................................... 5,855 387,381
Inventories....................................................... (391) 6,282
Prepaid expenses and other current assets......................... (93,779) 134,214
Accounts payable.................................................. 242,678 224,289
Accrued expenses and other liabilities............................ (299,145) (303,824)
------------ ------------
Net cash (used in) provided by operating activities............. (587,174) 44,825
------------ ------------
Cash flows from investing activities
Capital expenditures.................................................... (140,007) (203,682)
Proceeds from sale of properties........................................ 910,000 -
Collections of notes receivable......................................... - 49,412
Decrease (increase) in certificates of deposit.......................... 282,153 (28,675)
------------ ------------
Net cash provided by (used in) investing activities............. 1,052,146 (182,945)
------------ ------------
Cash flows from financing activities
Proceeds from borrowings................................................ 200,000 91,000
Payments on borrowings.................................................. (628,119) (58,538)
------------ ------------
Net cash (used in) provided by financing activities............. (428,119) 32,462
------------ ------------
Net increase (decrease) in cash and cash equivalents...................... 36,853 (105,658)
Cash and cash equivalents at beginning of period.......................... 26,089 152,174
------------ ------------
Cash and cash equivalents at end of period................................ $ 62,942 $ 46,516
============ ============
</TABLE>
The accompanying notes are an integral part of these statements.
5
<PAGE>
GATEWAY ENERGY CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(1) Principles of Consolidation and Nature of Business
The consolidated financial statements include the accounts of
Gateway Energy Corporation and its wholly owned subsidiary companies, Gateway
Pipeline Company, Gateway Offshore Pipeline Company, Gateway Energy Marketing
Company, Fort Cobb Fuel Authority, L.L.C. and Gateway Processing Company,
plus a small amount of activity in one joint venture and one partnership.
Based on its ownership, the Company proportionally consolidates its joint
venture interest, and accounts for its partnership interest on the equity
method. All significant intercompany transactions have been eliminated in
consolidation.
The accompanying consolidated financial statements have been
prepared by the Company, without audit. In the opinion of management, such
financial statements reflect all adjustments necessary for a fair
presentation of the financial position and results of operations in
accordance with generally accepted accounting principles. The financial
statements should be read in conjunction with the financial statements and
the Notes thereto included in the Company's Annual Report on Form 10-KSB for
the ten months ended December 31, 1999. Certain minor reclassifications to
the prior period statements have been made to conform with the June 30, 2000
presentation.
The Company owns and operates natural gas gathering, transportation
and distribution systems and related facilities in Texas, Oklahoma and
Louisiana, and offshore in Texas and federal waters of the Gulf of Mexico.
The Company also operates a natural gas distribution company in Oklahoma.
(2) Earnings Per Share
Basic earnings per share is computed by dividing net earnings or
loss by the weighted average number of common shares outstanding during the
period. Diluted earnings per share is computed by dividing net earnings or
loss by the weighted average number of shares outstanding, after giving
effect to potentially dilutive common share equivalents outstanding during
the period. Potentially dilutive common share equivalents are not included in
the computation of diluted earnings per share if they are anti-dilutive. For
the three-month and six-month periods ended June 30, 2000 and 1999, the
diluted loss per common share is the same as basic since the effect of
potentially dilutive common shares arising from outstanding stock options and
warrants was anti-dilutive.
The weighted average number of common shares outstanding used in the
computation of basic and diluted earnings per share for the three-month
periods ended June 30, 2000 and 1999 and the six-month periods ended June 30,
2000 and 1999 were 15,312,208, 15,242,494, 15,312,208, and 15,242,494.
(3) Notes Payable
The Company has an operating line of credit with a bank that
provides for maximum borrowings of $500,000 through June 2001. Interest is
payable monthly at 7.06% per
7
<PAGE>
GATEWAY ENERGY CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
annum and principal is due on demand, or if no demand is made, at maturity. The
line is collateralized by $500,000 of the Company's certificates of deposit.
(4) Long-term Debt
Long-term debt June 30, 2000 consists of the following:
<TABLE>
<S> <C>
Subordinated notes $ 835,850
Less current maturities 234,328
-------------
$ 601,522
=============
</TABLE>
(5) Asset Exchange
Effective May 1, 2000, the Company completed an asset exchange with
another company. The Company received 7.6 miles of six-inch pipeline that
runs from Galveston Block 227 in the Texas state waters of the Gulf of Mexico
to Galveston Island, in exchange for approximately 5 miles of three-inch
pipeline located onshore in the Texas City area plus $100,000 cash.
The pipeline acquired in this exchange has a producing well
connected to it and provided the Company approximately $18,000 of additional
operating margin in the accompanying financial statements.
(6) Supplemental Disclosures of Cash Flow Information
Cash paid during the periods is as follows:
<TABLE>
<CAPTION>
Six Months Ended June 30,
---------------------------------------
2000 1999
---------------- -----------------
<S> <C> <C>
Interest $ 55,217 $ 65,328
Income and franchise taxes 27,340 14,200
</TABLE>
7
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS.
The following management's discussion and analysis contains trend
analysis and other forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Actual results could differ
materially from those projected in the forward-looking statements throughout
this document as a result of the risk factors set forth below in the section
entitled FACTORS AFFECTING FUTURE RESULTS and elsewhere in this document.
RESULTS OF OPERATIONS
GENERAL
The Company evaluates each of its activities based on the operating
margin it produces. The Company defines operating margin as revenues, less
the cost of purchased gas and operating and maintenance expenses. Management
reviews and evaluates the operations of three main segments - Onshore
operations, Offshore operations and Fort Cobb operations. The Company
continues to actively pursue opportunities in all three segments.
THREE MONTHS ENDED JUNE 30, 2000 COMPARED TO JUNE 30, 1999
TOTAL OPERATIONS
The following table sets forth information for the three months ended
June 30, 2000 and 1999:
<TABLE>
<CAPTION>
2000 1999
------------------- -----------------
<S> <C> <C>
Revenues........................... $ 1,791,239 $ 1,411,741
Operating margins.................. 123,689 248,732
Depreciation....................... 171,231 194,621
</TABLE>
Operating margins for the three months ended June 30, 2000 decreased
$125,000 compared to the same period of the prior year. Onshore and Fort Cobb
Operations margins decreased $120,000 and $8,000, respectively, partially
offset by an increase in Offshore margins of $3,000. These segments are
discussed individually below in greater detail. In 2000 the Company continues
to focus on enhancing the profitability of its existing systems by reviewing
and renegotiating transportation agreements and purchase/sale contracts, when
appropriate, and controlling operating and maintenance costs.
8
<PAGE>
ONSHORE OPERATIONS
The following table sets forth information for the three months ended
June 30, 2000 and 1999:
<TABLE>
<CAPTION>
2000 1999
------------------ -----------------
<S> <C> <C>
Revenues........................... $ 1,602,140 $1,226,141
Operating margins.................. 198,552 318,809
Depreciation....................... 96,411 120,461
</TABLE>
Operating margins for Onshore operations decreased in the second
quarter by $120,000 from the same period of the prior year. The main decrease
was due to the termination of a short-term contract for throughput volumes on
the Company's Leleux system in Louisiana. Talks continue with the producer to
restructure and regain some of the throughput volumes. Operating margins
related to properties sold effective January 1, 2000 accounted for $39,000 of
the decrease from the prior period.
OFFSHORE OPERATIONS
The following table sets forth information for the three months
ended June 30, 2000 and 1999:
<TABLE>
<CAPTION>
2000 1999
------------------ -----------------
<S> <C> <C>
Revenues........................... $ 62,219 $ 99,027
Operating margins.................. 7,280 4,165
Depreciation....................... 33,346 32,661
</TABLE>
Operating margins for Offshore operations increased in the second
quarter by $3,000 over the same period of the prior year. The increase was
primarily due to the $18,000 of additional operating margins from the
completion of the asset exchange described in Note 5 to the financial
statements plus a reduction in operating expenses of approximately $27,000,
partially offset by the impact of lower throughput volumes on one of the
offshore systems. The Company continues to actively pursue several other
opportunities offshore in the Gulf of Mexico.
FORT COBB OPERATIONS
The following table sets forth information for the three months
ended June 30, 2000 and 1999:
<TABLE>
<CAPTION>
2000 1999
----------------- -----------------
<S> <C> <C>
Revenues........................... $ 126,880 $ 86,573
Operating margins.................. (82,143) (74,242)
Depreciation....................... 41,474 41,499
</TABLE>
9
<PAGE>
Operating margins for Fort Cobb operations decreased in the second
quarter by $8,000 from the same period of the prior year primarily due to an
increase in operating expenses. Fort Cobb's business peaks in the third and
fourth quarters because a significant portion of its load comes from
supplying irrigation and crop-drying customers.
OPERATIONS SUPPORT
The following table sets forth information for the three months
ended June 30, 2000 and 1999:
<TABLE>
<CAPTION>
2000 1999
---------------- ----------------
<S> <C> <C>
General and administrative................... $ 423,742 $ 624,554
Interest income.............................. 14,946 19,613
Interest expense............................. (30,784) (38,930)
Equity in earnings of partnership............ 22,567 19,783
Other income (expense), net.................. 106,153 4,418
</TABLE>
General and administrative expenses for the quarter are 32% lower than
for the same period of last year, due primarily to lower legal and outside
professional fees.
Interest income varies directly with the balance on deposit in the
Company's certificates of deposit and short-term money market accounts.
Interest expense fluctuates directly with the amount of outstanding
long-term debt and the amount of borrowings under the Company's operating line
of credit with a bank.
Other income for the quarter is comprised mainly of an adjustment to
legal fees recognized in prior periods.
SIX MONTHS ENDED JUNE 30, 2000 COMPARED TO JUNE 30, 1999
TOTAL OPERATIONS
The following table sets forth information for the six months ended
June 30, 2000 and 1999:
<TABLE>
<CAPTION>
2000 1999
---------------- ----------------
<S> <C> <C>
Revenues..................................... $ 3,335,023 $ 3,008,413
Operating margins............................ 281,743 702,586
Depreciation................................. 342,537 395,523
</TABLE>
Operating margins for the six months ended June 30, 2000 decreased
by $421,000 compared to the same period of the prior year. Onshore operating
margins decreased $254,000, while Offshore and Fort Cobb operating margins
declined by $155,000 and $12,000, respectively. These segments are discussed
individually below in greater detail. In 2000 the Company continues to focus
on enhancing the profitability of its existing systems by reviewing and
renegotiating transportation agreements and purchase/sale contracts, when
appropriate, and controlling operating and maintenance costs.
10
<PAGE>
ONSHORE OPERATIONS
The following table sets forth information for the six months ended
June 30, 2000 and 1999:
<TABLE>
<CAPTION>
2000 1999
------------------ -----------------
<S> <C> <C>
Revenues................................ $ 2,771,834 $ 2,332,557
Operating margins....................... 391,743 645,400
Depreciation............................ 192,742 248,384
</TABLE>
Operating margins for onshore operations decreased in the first half
of the year by $254,000 from the same period of the prior year. The main
decrease was due to the termination of a short-term contract for throughput
volumes on the Company's Leleux system in Louisiana. Talks continue with the
producer to restructure and regain some of the throughput volumes. Operating
margins related to properties sold effective January 1, 2000 accounted for
$67,000 of the decrease from the prior period.
OFFSHORE OPERATIONS
The following table sets forth information for the six months ended
June 30, 2000 and 1999:
<TABLE>
<CAPTION>
2000 1999
------------------ ---------------------
<S> <C> <C>
Revenues................................ $ 112,556 $ 265,846
Operating margins....................... (69,163) 85,888
Depreciation............................ 66,100 65,322
</TABLE>
Operating margins for Offshore operations decreased $155,000 in the
six months ended June 30, 2000 from the same period of the prior year. The
decrease was primarily due to the impact of lower throughput volumes on one
of the offshore systems and a first quarter 2000 non-recurring maintenance
expenditure totaling $62,000, partially offset by the $18,000 of additional
operating margins from the completion of the asset exchange described in Note
5 to the financial statements and second quarter reductions in other
operating costs. The Company continues to actively pursue several other
opportunities offshore in the Gulf of Mexico.
FORT COBB OPERATIONS
The following table sets forth information for the six months ended
June 30, 2000 and 1999:
<TABLE>
<CAPTION>
2000 1999
------------------ ---------------------
<S> <C> <C>
Revenues................................ $ 450,633 $ 410,010
Operating margins....................... (40,837) (28,702)
Depreciation............................ 83,695 81,817
</TABLE>
11
<PAGE>
Operating margins for Fort Cobb operations decreased in the first
half of the year by $12,000 from the same period of the prior year primarily
due to decreases in volumes delivered to local farmers for crop irrigation
fuel.
OPERATIONS SUPPORT
The following table sets forth information for the six months ended
June 30, 2000 and 1999:
<TABLE>
<CAPTION>
2000 1999
----------------- ------------------
<S> <C> <C>
General and administrative............... $ 871,244 $ 1,114,136
Interest income.......................... 30,068 40,875
Interest expense......................... (67,024) (78,433)
Equity in earnings of partnership........ 42,070 40,938
Other income (expense), net.............. 275,674 9,820
</TABLE>
General and administrative expenses for the six months ended June
30, 2000 declined by 22% compared to the same period of the prior year. The
decline was primarily due to lower legal and outside professional fees.
Interest income varies directly with the balance on deposit in the
Company's certificates of deposit and short-term money market accounts.
Interest expense fluctuates directly with the amount of outstanding
long-term debt and the amount of borrowings under the Company's operating
line of credit with a bank.
Other income for the first six months of the year includes gain on
the sales of Catarina and Zwolle systems and an adjustment to legal fees
recognized in prior periods.
LIQUIDITY AND CAPITAL RESOURCES
Net cash used in operating activities totaled $587,000 for the six
months ended June 30, 2000, compared to $45,000 provided by operating
activities for the same period last year. Changes in current asset and
liability accounts accounted for $593,000 of the decrease between the periods.
The Company has cash and cash equivalents and certificates of
deposit totaling $754,000 at June 30, 2000. The Company's operating line of
credit agreement with a bank provides for maximum borrowings of $500,000,
through June 2001, and is collateralized with a certificate of deposit for
the same amount. There were no borrowings outstanding as of June 30, 2000.
The Company's long-term debt to total capitalization was approximately 7%,
which should provide opportunity for the Company to utilize conventional
long-term financing to fund acquisitions or construction projects.
Absent acquisitions or significant development projects, the Company
will continue to fund its operations through internally generated funds and
available cash and the certificates of deposit. The Company believes its cash
flows from operations and available cash and certificates of deposit will be
sufficient to fund its ongoing operations for the foreseeable future. Any
significant property acquisitions or development projects will require
outside project financing.
12
<PAGE>
During the second quarter of 2000, the Company filed an Application for
General Rate Increase with the Oklahoma Corporation Commission (the
"Commission") on behalf of Fort Cobb. Fort Cobb is entitled under the Commission
rules and guidelines to earn additional annual revenues to cover the costs of
service and to provide a reasonable return on the assets employed to serve its
customers. Under Oklahoma law, the Commission has complete discretion over the
amount and timing of any rate increase granted. If any rate increase is granted,
the Company expects that it would not be effective before December 2000.
FACTORS AFFECTING FUTURE RESULTS
The Company's strategies for enhancing stockholder value include, among
other things: (i) focusing on gathering, processing, transporting and marketing
of natural gas; (ii) expanding the Company's asset base in core geographic
areas; (iii) developing a niche that will create demand for our services, and;
(iv) acquiring or constructing properties in one or more new core areas.
The Company must provide services to its customers, primarily
producers, at competitive prices. Therefore, in order to be successful the
Company must contain its costs in line with industry competitors. The Company's
access to reasonably priced long-term capital will have a significant effect on
its ability to acquire additional properties to increase operating margins
sufficiently to cover its fixed overhead costs. The Company believes that its
low debt, available cash reserves and experienced operating management will
allow the Company to access capital and find properties which can provide
attractive returns. However, there can be no assurance that the Company will be
successful in this endeavor.
The Company's ability to generate long-term value for the common
stockholder is dependent upon the enhancement of its core assets and the
successful acquisition of additional midstream assets. There are many companies
participating in the midstream segment of the natural gas industry, many with
resources greater than the Company. Greater competition for profitable
operations can increase prices and make it more difficult to acquire assets at
reasonable multiples of cash flow. The Company believes that it will be able to
compete in this environment and will be able to find attractive investments
which compliment its existing properties; however, it is not possible to predict
competition or the effect this will have on the Company's operations.
The Company's operations are also significantly affected by factors
which are outside the control of the Company. Gas gathering and processing is
dependent on throughput volume. Throughput on the Company's systems is
significantly dependent on natural gas production which is affected by natural
gas prices as prices affect the willingness of producers to invest the required
capital to obtain geological and geophysical information, drill development or
exploratory wells, and to rework or maximize production on existing wells.
Natural gas prices are at levels which should provide adequate incentive to
producers; however, there is no assurance that such prices will remain at
current levels, and that producers will continue to react positively to the
current prices.
The Company's revenues, particularly from its retail operations, are
also affected by weather. Much of the retail demand is for crop irrigation and
drying. Heavy precipitation in the spring and summer growing season and hot, dry
weather in the fall can significantly reduce demand for natural gas in the
Company's retail service areas.
13
<PAGE>
PART II
ITEM 1. LEGAL PROCEEDINGS
None
ITEM 2. CHANGES IN SECURITIES
None
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None
ITEM 5. OTHER INFORMATION
None
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
a) Exhibits:
27 Financial Data Schedule.
b) Reports on Form 8-K:
None
14
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15 (d) of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
GATEWAY ENERGY CORPORATION
/s/ Michael T. Fadden
------------------------------------------
President and Chief Executive Officer
/s/ Scott D. Heflin
------------------------------------------
Chief Financial Officer and Treasurer
August 14, 2000
---------------------------
(Date)
15
