SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934
Date of Report (Date of earliest event reported)
August 3, 1995
NORAM ENERGY CORP.
(Exact name of Registrant as specified in its charter)
Delaware 1-3751 72-0120530
(State or other (Commission (IRS Employer
jurisdiction File Number) Identification No.)
of incorporation)
NorAm Energy Corp.
1600 Smith
Houston, Texas 77002
(Address of principal executive offices) (Zip Code)
(713) 654-5699
(Registrant's telephone number, including area code)
Page 1 of 3 Pages<PAGE>
Item 5. Other Events
NorAm Energy Corp. hereby incorporates by reference herein
the following press release:
Press Release issued on August 3, 1995 and attached
hereto as Exhibit 99.
Item 7. Financial Statement, Pro Forma Financial Information
and Exhibits
(a) Financial Statements -- None.
(b) Pro Forma Financial Information -- None.
(c) Exhibits -- EX-99.
Page 2 of 3 Pages<PAGE>
Signature
Pursuant to the requirements of the Securities Exchange Act
of 1934, the Registrant has duly caused this report on Form 8-K
to be signed on its behalf by the undersigned hereunto duly
authorized.
NORAM ENERGY CORP.
By Jack W. Ellis
Name: Jack W. Ellis
Title: Vice President &
Controller
Date: August 3, 1995
Page 3 of 3 Pages<PAGE>
EXHIBIT 99
For more information, contact
Randy Burkhalter, NorAm Energy Corp.
(713) 654-7502
NorAm Energy Reports Second Quarter Results
Houston, TX -- August 3, 1995 -- NorAm Energy Corp. reported
a net loss of $7.1 million for the second quarter compared to a
$6.9 million loss for 1994 reflecting the normal seasonal pattern
of earnings from the residential and commercial demand for
natural gas in the Company's operating areas. After preferred
dividends, the net loss for the quarter was $9.0 million or $0.07
per share compared to a loss of $8.8 million or $0.07 per share
for the same period of 1994. Interest expense was reduced 10% to
$37.0 million from $41.3 million, primarily as a result of strong
cash flows which were used to reduce the average level of debt by
$125 million. Pre-tax income improved by $2 million over 1994,
which was offset by the effects of a lower interim effective tax
rate.
Distribution operating income was $9.3 million for the
quarter compared to $7.2 million in 1994. The Minnegasco
division, with service territories in Minnesota, had increased
margins due to colder than normal weather this Spring.
Distribution throughput increased 16 billion cubic feet due<PAGE>
primarily to increased industrial volumes at Entex as well as
commercial and residential volumes at Minnegasco.
Operating income from the Trading and Transportation group
was $20.7 million for the quarter compared to $24.1 million last
year. The majority of the variance resulted from non-recurring
income of $2.1 million in 1994, including the reversal of a
regulatory reserve on the Mississippi River Transmission system.
Other items contributing to the variance included reduced margins
from the pipeline merchant function partially offset by improved
gathering margins for NorAm Field Services (NFS) and increased
volumes marketed by NorAm Energy Services (NES) this year.
"We are steadily growing our distribution business by adding
new customers as well as providing value-added services. Each of
our distribution companies has increased its earnings base by
providing new services to meet customer needs. The Trading and
Transportation Group is also tracking our expectations and we
expect a solid performance in the second half of the year.
Additionally, the emergence of our growing non-utility energy
services offered by NFS, NES, and the distribution companies
provides a solid base for future growth. Currently, non-utility
operations contribute about 30% of total revenues and 10% of
operating income. We expect that to increase in the future",
said Milt Honea, Chairman, President and Chief Executive Officer.
Net income available to common for the first half of the
year was $41.0 million or $0.33 per share as compared to $44.7
million or $0.37 per share last year. Average common shares
outstanding were 123.4 million shares compared to 122.4 million
shares last year.<PAGE>
NorAm Energy Corp. (NYSE: NAE), is the nation's third
largest natural gas utility serving 2.7 million customers through
its Entex, Arkla and Minnegasco distribution divisions. NorAm
Energy is also a major natural gas pipeline and energy marketer
providing supply, gathering, storage, transportation and
wholesale electric services through NorAm Trading and
Transportation Group. This group includes NorAm Gas Transmission,
Mississippi River Transmission, NorAm Field Services and NorAm
Energy Services.
(###)<PAGE>
NORAM ENERGY CORP. AND SUBSIDIARIES
(Unaudited)
(millions of dollars except per share amounts)
Second Quarter Year-to-Date
1995 1994 1995 1994
OPERATING INCOME BY BUSINESS UNIT
Distribution $ 9.3 $ 7.2 $ 107.2 $ 116.0
Trading & Transportation 20.7 24.1 57.3 59.0
Other (2.7) (2.2) (2.5) (2.4)
Total Operating Income 27.3 29.1 162.0 172.6
Interest Expense, Net 37.0 41.3 76.8 83.7
Other Expense 1.7 1.2 4.4 3.3
Income(Loss) Before Income Taxes (11.4) (13.4) 80.8 85.6
Provision for Income Taxes(Benefit) (4.3) (7.0) 35.8 36.5
Income(Loss) Before Extraordinary Item (7.1) (6.4) 45.0 49.1
Extraordinary Item, Less Taxes (1) - (0.5) (0.1) (0.5)
Net Income(Loss) (7.1) (6.9) 44.9 48.6
Preferred Dividend Requirement 1.9 1.9 3.9 3.9
Balance Available to Common Stock $ (9.0)$ (8.8) $ 41.0 $ 44.7
Per Share Data:
Before Extraordinary Item $ (0.07)$ (0.07) $ 0.33 $ 0.37
Extraordinary Item, Less Taxes - 0.00 0.00 0.00
Earnings Per Common Share $ (0.07)$ (0.07) $ 0.33 $ 0.37
Average Common Shares
Outstanding (in thousands) 123,735 122,390 123,350 122,380
(1) Loss on reacquisition of debt.
Schedule of Debt: June 30 June 30 December 31
1995 1994 1994
Short-Term (including current maturities $ 284.0 $ 97.4 $ 274.6
Long-Term 1,323.7 1,604.1 1,414.4
Total $ 1,607.7 $ 1,701.5 $ 1,689.0
NORAM ENERGY CORP. AND SUBSIDIARIES
Operating Statistics
NATURAL GAS THROUGHPUT Second Quarter Year-to-Date
1995 1994 1995 1994
^(million MMBtu)
TRADING & TRANSPORTATION
NGT
Sales 12.7 10.6 24.1 23.7
Transportation 147.0 135.2 314.5 308.5
Less: Elimination (11.0) (9.7) (21.8) (21.8)
Total Throughput 148.7 136.1 316.8 310.4
MRT
Sales 8.1 4.9 16.4 11.5
Transportation 84.5 71.4 194.8 181.2
Less: Elimination (8.1) (4.9) (16.4) (11.5)
Total Throughput 84.5 71.4 194.8 181.2
NES
Sales 113.3 72.9 212.2 162.5
Transportation - - - -
Total Throughput 113.3 72.9 212.2 162.5
TRADING & TRANSPORTATION
GROUP CONSOLIDATED
Sales 98.2 50.3 183.9 108.4
Transportation 220.5 197.4 488.9 470.0
Less: Elimination (19.1) (14.6) (38.2) (33.3)
Total Throughput 299.6 233.1 634.6 545.1
DISTRIBUTION ^(BCF)
ARKLA
Sales 11.7 11.7 47.4 51.0
Transportation 7.1 7.7 15.3 16.7
Total Throughput 18.8 19.4 62.7 67.7
ENTEX
Sales 64.9 50.8 152.1 128.8
Transportation 6.1 6.9 14.7 16.3
Total Throughput 71.0 57.7 166.8 145.1
MINNEGASCO
Sales 21.5 18.9 73.8 78.9
Transportation 1.9 1.2 6.5 1.9
Total Throughput 23.4 20.1 80.3 80.8
CONTACT INVESTOR RELATIONS
Randy Burkhalter (713) 654-7502
NORAM ENERGY CORP. AND SUBSIDIARIES
(Unaudited)
(in thousands of dollars except per share amounts)
QUARTER ENDED JUNE 30 1995 1994
Operating Revenues $565,842 $547,146 (1)
Loss Before Income Taxes $(11,323) $(13,325)
Loss Before Extraordinary Item $ (7,072) $ (6,375)
Extraordinary Item, Less Taxes (2) - (517)
Net Loss (7,072) (6,892)
Preferred Dividend Requirement 1,950 1,950
Balance Available to Common Stock $ (9,022) $ (8,842)
Per Share Data:
Loss Before Extraordinary Item $ (0.07) $ (0.07)
Extraordinary Item, Less Taxes - 0.00
Net Loss $ (0.07) $ (0.07)
Weighted Average Common Shares
Outstanding (000's) 123,735 122,390
SIX MONTHS ENDED JUNE 30
Operating Revenues $1,453,990 $1,648,015(1)
Income Before Income Taxes $ 80,757 $ 85,652
Income Before Extraordinary Item $ 44,924 $ 49,112
Extraordinary Item, Less Taxes (2) (52) (517)
Net Income 44,872 48,595
Preferred Dividend Requirement 3,900 3,900
Balance Available to Common Stock $ 40,972 $ 44,695
Per Share Data:
Income Before Extraordinary Item $ 0.33 $ 0.37
Extraordinary Item, Less Taxes 0.00 0.00
Net Income $ 0.33 $ 0.37
Weighted Average Common Shares
Outstanding (000's) 123,350 122,380
TWELVE MONTHS ENDED JUNE 30
Operating Revenues $2,664,301 $2,994,586(1)
Income From Continuing Operations
Before Income Taxes $ 80,768 $ 48,252
Income From Continuing Operations $ 47,103 $ 20,333
Loss from Discontinued Operations,
Less Taxes (3) (2,102) -
Income Before Extraordinary Item 45,001 20,333
Extraordinary Item, Less Taxes (2) (658) (954)
Net Income 44,343 19,379
Preferred Dividend Requirement 7,800 7,800
Balance Available to Common Stock $ 36,543 $ 11,579
Per Share Data:
Income From Continuing Operations $ 0.32 $ 0.10
Loss from Discontinued Operations,
Less Taxes (0.02) -
Extraordinary Items, Less Taxes 0.00 (0.01)
Net Income $ 0.30 $ 0.09
Weighted Average Common Shares
Outstanding (000's) 122,905 122,366
(1) Operating revenues for 1994 have been restated to include certain
nonregulated revenues which previously were presented net of related
expenses and reported below the operating income line.
(2) Loss on reacquisition of debt.
(3) Principally settlement of litigation related to University Savings
Association brought against the Company by the Resolution Trust
Corporation.
