<PAGE>
FORM U-3A-2
File No. 69-248
SECURITIES & EXCHANGE COMMISSION
Washington, D.C.
Statement by Holding Company Claiming Exemption
Under Rule U-3A-2 from the Provisions of the
Public Utility Holding Company Act of 1935
SOUTHWESTERN ENERGY COMPANY hereby files with the Securities & Exchange
Commission, pursuant to Rule U-3A-2, its statement claiming exemption as
a holding company from the provisions of the Public Utility Holding
Company Act of 1935. In support of such claim for exemption, the
following information is submitted:
1. Southwestern Energy Company, an Arkansas corporation, is located at
1083 Sain Street, Fayetteville, Arkansas (P. O. Box 1408,
Fayetteville, Arkansas 72702-1408). Southwestern Energy Company is
a holding company with six wholly owned subsidiaries. The wholly
owned subsidiaries of the holding company are Arkansas Western Gas
Company, a gas utility; SEECO, Inc., an Arkansas based gas
exploration and production company; Southwestern Energy Production
Company (formerly Arkansas Western Production Company), an oil and
gas exploration and production company with offices in Oklahoma,
Texas and Arkansas; A. W. Realty Company, an Arkansas real estate
company which holds real estate interests; Southwestern Energy
Pipeline Company, a corporation that owns an interest in a
partnership that operates an intrastate natural gas pipeline in
Arkansas; and Arkansas Western Pipeline Company, a corporation that
operates an 8-mile interstate pipeline in northeast Arkansas and
southeast Missouri. Arkansas Gas Gathering Company is a wholly
owned subsidiary of SEECO, Inc., serving as a marketing facility for
that company. The main location of Arkansas Western Gas Company is
1001 Sain Street, Fayetteville, Arkansas 72701. SEECO, Inc.,
Arkansas Gas Gathering Company, A. W. Realty Company, Southwestern
Energy Pipeline Company and Arkansas Western Pipeline Company occupy
the same location as that of Claimant. The main locations of
Southwestern Energy Production Company are 5600 N. May Ave., Suite
300, Oklahoma City, Oklahoma 73112-3979 and 4900 Woodway Drive,
Suite 1050, Houston, Texas 77056. All subsidiaries are Arkansas
corporations with Southwestern Energy Production Company being
authorized to do business in Oklahoma, Texas, Wyoming, Louisiana,
North Dakota, South Dakota, Kansas, New Mexico, Mississippi and
Nebraska. SEECO, Inc., and Southwestern Energy Pipeline Company
have authority to operate only in Arkansas. Arkansas Western Gas
Company and Arkansas Western Pipeline Company are also authorized to
do business in Missouri.
2. Claimant, Southwestern Energy Company, is the parent company and
owns beneficially and of record 100% of the issued and outstanding
shares of stock of its six subsidiaries.
Arkansas Western Gas Company (AWG), Claimant's only public utility
subsidiary, operates 5,893 miles of pipeline. This system includes
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in Arkansas, a gathering and storage system with 398 miles of
pipeline, 909 miles of transmission pipeline and 3,090 miles of
distribution pipeline. Additionally the system includes, in
Missouri, 426 miles of transmission pipeline and 1,070 miles of
distribution pipeline.
AWG's northwest Arkansas gas utility system gathers its gas supply
from the Arkoma Basin where they also provide distribution service
to communities in that area, including the towns of Ozark and
Clarksville. AWG's transmission and distribution lines extend north
and supply communities in the northwest part of the state, including
the towns of Fayetteville, Springdale and Rogers. AWG's service
area also extends to the east to the Harrison and Mountain Home
areas. This eastern section of the AWG system receives a portion of
its gas supply from a lateral line off of the NOARK Pipeline System
(NOARK) as discussed below. Through its division, Associated
Natural Gas Company (Associated), AWG provides distribution of
natural gas to communities in northeast Arkansas and parts of
Missouri. Major communities served in northeast Arkansas include
Blytheville, Piggott and Osceola. The Associated distribution
system also serves the "bootheel" area in southeast Missouri,
including the communities of Sikeston, New Madrid and Caruthersville
and extends north to the Jackson area. In addition, Associated
provides service to Butler, Missouri, near the state's western
border and Kirksville, Missouri, near the state's northern border
through connections off of interstate pipelines in those areas.
Southwestern Energy Pipeline Company owns a 47.33% general
partnership interest in NOARK, a 258-mile intrastate pipeline that
ties the Claimant's distribution and gathering pipeline systems in
northwest Arkansas to its distribution systems in northeast Arkansas
and southeast Missouri. NOARK starts near Fort Smith, at the Fort
Chaffee military reservation, and extends east through the Arkoma
Basin and across northern Arkansas. A lateral from NOARK extends
north and connects to AWG's distribution line in the Mountain Home
area. NOARK crosses three interstate pipelines in northeast
Arkansas and ends at an interconnection with Arkansas Western
Pipeline Company's 8-mile interstate pipeline at the
Arkansas/Missouri border. This pipeline transports gas from NOARK
to Associated's distribution system. Attached hereto and made a
part hereof is a map indicating the Company's transmission and
distribution system.
3. Arkansas Western Gas Company, Claimant's only public utility
subsidiary, made gas sales for the 12 months ended December 31,
1993, as follows:
(a) Natural gas distributed at retail:
Average
Utility Sales Consumers Mcf Sales
Residential 137,087 12,860,087 $ 67,501,572
Commercial 18,511 7,771,277 35,311,109
Industrial 346 6,162,559 21,757,668
Total 155,944 26,793,923 $124,570,349
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(b) There were 6,828,577 Mcf of natural gas distributed at retail
outside the state of Arkansas by the public utility subsidiary.
(c) There were 1,317,298 Mcf of natural gas sold to industrial
consumers outside the state or at the state line by the public
utility subsidiary.
(d) There were 3,227,591 Mcf of natural gas purchased outside the
state or at the state line by the public utility subsidiary.
4. The Claimant holds no direct or indirect interest in an EWG or a
foreign utility company.
EXHIBIT A
Consolidating Statements of Income and Surplus along with Consolidating
Balance Sheets for the year ended December 31, 1993.
EXHIBIT B
Financial Data Schedules were not required at the date of this filing.
EXHIBIT C
The Claimant holds no direct or indirect interest in an EWG or a foreign
utility company.
APPENDIX
A map of the Company's transmission and distribution system has been omitted
from the electronic filing. A narrative description of the system is provided
in item 2 above.
The above named Claimant has caused this statement to be duly executed on its
behalf by its authorized officer on this 25th day of February, 1994.
SOUTHWESTERN ENERGY COMPANY
By: /s/ GREGORY D. KERLEY
--------------------------
Gregory D. Kerley
Vice President - Treasurer
and Secretary
ATTEST:
/s/ JEFFREY L. DANGEAU
- -------------------------
Jeffrey L. Dangeau
Assistant Secretary
Notices and correspondence concerning this statement should be addressed:
Gregory D. Kerley, Vice President - Treasurer and Secretary
Southwestern Energy Company
P. O. Box 1408
Fayetteville, Arkansas 72702-1408
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<TABLE>
SOUTHWESTERN ENERGY COMPANY AND SUBSIDIARIES
CONSOLIDATING STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 1993
(in thousands)
<CAPTION>
Southwestern Southwestern
Southwestern Arkansas Energy A. W. Energy
Energy Western Gas Production Realty Pipeline
Company Company SEECO, Inc. Company Company Company
------------ ----------- ------------ ------------ --------- ----------
<S> <C> <C> <C> <C> <C> <C>
Operating Revenues:
Gas sales $ - $ 124,570 $ 52,960 $ 24,184 $ - $ -
Oil sales - - - 1,659 - -
Gas transportation - 5,175 - - - -
Other - 1,986 537 35 256 6
------------ ------------ ------------ ------------ --------- ----------
- 131,731 53,497 25,878 256 6
------------ ------------ ------------ ------------ --------- ----------
Operating Costs and Expenses:
Purchased gas costs - 78,641 - - - -
Operating and general - 31,151 4,749 5,628 167 56
Depreciation, depletion and
amortization 102 4,524 8,377 17,309 61 -
Taxes, other than income taxes 319 2,244 140 563 15 -
------------ ------------ ------------ ------------ --------- ----------
421 116,560 13,266 23,500 243 56
------------ ------------ ------------ ------------ --------- ----------
Operating income (421) 15,171 40,231 2,378 13 (50)
------------ ------------ ------------ ------------ --------- ----------
Interest Expense:
Interest on long-term debt 10,058 32 - - - -
Intercompany interest (5,571) 5,637 (63) (51) 97 (105)
Other interest charges 148 325 4 6 - -
Interest capitalized - (107) (155) (1,286) - -
------------ ------------ ------------ ------------ --------- ----------
4,635 5,887 (214) (1,331) 97 (105)
------------ ------------ ------------ ------------ --------- ----------
Other Income (Expense) 19,344 (267) 4 - 192 (1,777)
------------ ------------ ------------ ------------ --------- ----------
Income before provision
for income taxes 14,288 9,017 40,449 3,709 108 (1,722)
Provision for Income Taxes (1,862) 3,479 16,422 2,382 50 (652)
------------ ------------ ------------ ------------ --------- ----------
Income before change in
accounting principle 16,150 5,538 24,027 1,327 58 (1,070)
Cumulative effect of change in
accounting for income taxes 565 (291) 4,357 5,621 (128) 2
------------ ------------ ------------ ------------ --------- ----------
Net Income $ 16,715 $ 5,247 $ 28,384 $ 6,948 $ (70) $ (1,068)
============ ============ ============ ============ ========= ==========
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<CAPTION>
Arkansas
Western
Pipeline
Company Eliminations Consolidated
---------- -------------- -----------
<S> <C> <C> <C>
Operating Revenues:
Gas sales $ - $ (36,117) (b) $ 165,597
Oil sales - - 1,659
Gas transportation 160 (158) (c) 5,177
Other - (409) (c) 2,411
---------- -------------- -----------
160 (36,684) 174,844
---------- -------------- -----------
Operating Costs and Expenses:
Purchased gas costs - (35,679) (b) 42,962
Operating and general 30 (1,688) (c) 40,093
Depreciation, depletion and
amortization 41 530 (c) 30,944
Taxes, other than income taxes - - 3,281
---------- -------------- -----------
71 (36,837) 117,280
---------- -------------- -----------
Operating income 89 153 57,564
---------- -------------- -----------
Interest Expense:
Interest on long-term debt - - 10,090
Intercompany interest 56 - -
Other interest charges - - 483
Interest capitalized - - (1,548)
---------- -------------- -----------
56 - 9,025
---------- -------------- -----------
Other Income (Expense) - (19,153) (d) (1,657)
---------- -------------- -----------
Income before provision
for income taxes 33 (19,000) 46,882
Provision for Income Taxes 13 - 19,832
---------- -------------- -----------
Income before change in
accounting principle 20 (19,000) 27,050
Cumulative effect of change in
accounting for income taxes - - 10,126
---------- -------------- -----------
Net Income $ 20 $ (19,000) $ 37,176
========== ============== ===========
<FN>
(b)To eliminate intercompany sales and purchases. (c)To eliminate intercompany income and expense items.
(d)To eliminate intercompany dividends.
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SOUTHWESTERN ENERGY COMPANY AND SUBSIDIARIES
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1993
(in thousands)
<CAPTION>
Southwestern Southwestern
Southwestern Arkansas Energy A. W. Energy
Energy Western Gas Production Realty Pipeline
Company Company SEECO, Inc. Company Company Company
------------ ------------ ------------ ------------ --------- ----------
<S> <C> <C> <C> <C> <C> <C>
Assets
Current Assets:
Cash $ 333 $ 490 $ - $ 11 $ - $ -
Accounts receivable 665 26,123 2,518 5,113 1 445
Inventories, at average cost - 9,528 - 52 - -
Other 705 641 67 111 1 -
------------ ------------ ------------ ------------ --------- ----------
Total current assets 1,703 36,782 2,585 5,287 2 445
------------ ------------ ------------ ------------ --------- ----------
Investments:
Investment in subsidiaries, at cost 267,182 - - - 366 -
Advances to (from) subsidiaries (12,542) - 14,424 (78) (2,037) 2,581
Other 347 - - - 49 5,265
------------ ------------ ------------ ------------ --------- ----------
254,987 0 14,424 (78) (1,622) 7,846
------------ ------------ ------------ ------------ --------- ----------
Property, Plant and Equipment:
Oil and gas properties, using the
full cost method - - 138,162 237,119 - -
Gas utility system - 163,161 - - - -
Gas in underground storage - 37,171 - - - -
Other 9,171 - - 1,058 4,455 -
------------ ------------ ------------ ------------ --------- ----------
9,171 200,332 138,162 238,177 4,455 -
Less - Accumulated depreciation,
depletion and amortization 4,015 54,236 66,019 81,261 380 -
------------ ------------ ------------ ------------ --------- ----------
5,156 146,096 72,143 156,916 4,075 -
------------ ------------ ------------ ------------ --------- ----------
Other Assets 4,741 1,441 19 17 - -
------------ ------------ ------------ ------------ --------- ----------
$ 266,587 $ 184,319 $ 89,171 $ 162,142 $ 2,455 $ 8,291
============ ============ ============ ============ ========= ==========
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<CAPTION>
Arkansas
Western
Pipeline
Company Eliminations Consolidated
---------- -------------- -----------
<S> <C> <C> <C>
Assets
Current Assets:
Cash $ - $ - $ 834
Accounts receivable 1 - 34,866
Inventories, at average cost - - 9,580
Other - - 1,525
---------- -------------- -----------
Total current assets 1 - 46,805
---------- -------------- -----------
Investments:
Investment in subsidiaries, at cost - (267,548) (a) -
Advances to (from) subsidiaries (2,348) - -
Other - - 5,661
---------- -------------- -----------
(2,348) (267,548) 5,661
---------- -------------- -----------
Property, Plant and Equipment:
Oil and gas properties, using the
full cost method - - 375,281
Gas utility system 2,282 - 165,443
Gas in underground storage - - 37,171
Other - - 14,684
---------- -------------- -----------
2,282 - 592,579
Less - Accumulated depreciation,
depletion and amortization 38 - 205,949
---------- -------------- -----------
2,244 - 386,630
---------- -------------- -----------
Other Assets 140 - 6,358
---------- -------------- -----------
$ 37 $ (267,548) $ 445,454
========== ============== ===========
<FN>
(a)To eliminate investment in subsidiaries.
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SOUTHWESTERN ENERGY COMPANY AND SUBSIDIARIES
CONSOLIDATING BALANCE SHEET (continued)
DECEMBER 31, 1993
(in thousands)
<CAPTION>
Southwestern Southwestern
Southwestern Arkansas Energy A. W. Energy
Energy Western Gas Production Realty Pipeline
Company Company SEECO, Inc. Company Company Company
------------ ------------ ------------ ------------ --------- ------------
<S> <C> <C> <C> <C> <C> <C>
Liabilities and Shareholders' Equity
Current Liabilities:
Current portion of long-term debt $ 3,000 $ - $ - $ - $ - $ -
Accounts payable 3,918 7,491 3,342 1,101 - 200
Taxes payable (726) 3,044 4,361 (65) 83 (238)
Interest payable 1,298 147 - - - -
Customer deposits - 3,927 - - - -
Current portion of deferred
income taxes (64) 899 747 (151) - (5)
Over-recovered purchased gas cost, net - 4,187 - - - -
Other 185 1,190 115 708 - 13
------------ ------------ ------------ ------------ --------- ------------
Total current liabilities 7,611 20,885 8,565 1,593 83 (30)
------------ ------------ ------------ ------------ --------- ------------
Long-Term Debt, less current
portion above 124,366 75,373 14,000 - - -
------------ ------------ ------------ ------------ --------- ------------
Other Liabilities:
Deferred income taxes 1,456 11,599 29,442 48,497 336 2,238
Deferred investment tax credits 11 2,150 190 266 - -
Other 349 494 - 1,174 - -
------------ ------------ ------------ ------------ --------- ------------
1,816 14,243 29,632 49,937 336 2,238
------------ ------------ ------------ ------------ --------- ------------
Shareholders' Equity:
Common stock 2,774 24,214 8,244 1 1 2
Capital in excess of par 21,231 29,000 - 107,044 1,728 7,573
Retained earnings 128,734 20,604 28,730 3,567 307 (1,492)
Unamortized cost of shares issued
under stock grant plan (228) - - - - -
Common stock in treasury, at cost (19,717) - - - - -
------------ ------------ ------------ ------------ --------- ------------
132,794 73,818 36,974 110,612 2,036 6,083
------------ ------------ ------------ ------------ --------- ------------
$ 266,587 $ 184,319 $ 89,171 $ 162,142 $ 2,455 $ 8,291
============ ============ ============ ============ ========= ============
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<CAPTION>
Arkansas
Western
Pipeline
Company Eliminations Consolidated
---------- -------------- -----------
<S> <C> <C> <C>
Liabilities and Shareholders' Equity
Current Liabilities:
Current portion of long-term debt $ - $ - $ 3,000
Accounts payable - - 16,052
Taxes payable (10) - 6,449
Interest payable - - 1,445
Customer deposits - - 3,927
Current portion of deferred
income taxes - - 1,426
Over-recovered purchased gas cost, net - - 4,187
Other - - 2,211
---------- -------------- -----------
Total current liabilities (10) - 38,697
---------- -------------- -----------
Long-Term Debt, less current
portion above - (89,739) (a) 124,000
---------- -------------- -----------
Other Liabilities:
Deferred income taxes 25 - 93,593
Deferred investment tax credits - - 2,617
Other - - 2,017
---------- -------------- -----------
25 - 98,227
---------- -------------- -----------
Shareholders' Equity:
Common stock 2 (32,464) (a) 2,774
Capital in excess of par - (145,345) (a) 21,231
Retained earnings 20 - 180,470
Unamortized cost of shares issued
under stock grant plan - - (228)
Common stock in treasury, at cost - - (19,717)
---------- -------------- -----------
22 (177,809) 184,530
---------- -------------- -----------
$ 37 $ (267,548) $ 445,454
========== ============== ===========
<FN>
(a)To eliminate investment in subsidiaries.
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SOUTHWESTERN ENERGY COMPANY AND SUBSIDIARIES
CONSOLIDATING STATEMENT OF RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 1993
(in thousands)
<CAPTION>
Southwestern Southwestern
Southwestern Arkansas Energy A. W. Energy
Energy Western Gas Production Realty Pipeline
Company Company SEECO, Inc. Company Company Company
------------ ------------ ------------ ------------ --------- ------------
<S> <C> <C> <C> <C> <C> <C>
RETAINED EARNINGS, beginning of year $ 117,670 $ 15,357 $ 17,346 $ (1,381) $ 377 $ (424)
Net income 16,715 5,247 28,384 6,948 (70) (1,068)
Cash dividends (5,651) - (17,000) (2,000) - -
------------ ------------ ------------ ------------ --------- ------------
RETAINED EARNINGS, end of year $ 128,734 $ 20,604 $ 28,730 $ 3,567 $ 307 $ (1,492)
============ ============ ============ ============ ========= ============
<CAPTION>
Arkansas
Western
Pipeline
Company Eliminations Consolidated
------------ -------------- -----------
<S> <C> <C> <C>
RETAINED EARNINGS, beginning of year $ - $ - $ 148,945
Net income 20 (19,000) (d) 37,176
Cash dividends - 19,000 (d) (5,651)
------------ -------------- -----------
RETAINED EARNINGS, end of year $ 20 $ - $ 180,470
============ ============== ===========
<FN>
(d)To eliminate intercompany dividends.
</TABLE>
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