<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., and is currently inactive.
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 4900 Woodway Drive, Suite
1050, Houston, Texas 77056-1809, and 5600 N. May Ave., Suite 300,
Oklahoma City, Oklahoma 73112-3979. 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 5,997 miles of pipeline. This system includes
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in Arkansas, a gathering and storage system with 405 miles of
pipeline, 915 miles of transmission pipeline and 3,169 miles of
distribution pipeline. Additionally the system includes, in
Missouri, 431 miles of transmission pipeline and 1,077 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 47.93% 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.
3. Arkansas Western Gas Company made gas sales for the 12 months
ended December 31, 1994, as follows:
(a) Natural gas distributed at retail:
Average
Utility Sales Consumers Mcf Sales
Residential 140,684 11,591,708 $ 62,564,820
Commercial 18,872 7,193,536 32,251,533
Industrial 341 7,481,455 25,191,413
Total 159,897 26,266,699 $120,007,766
- 2 -<PAGE>
(b) There were 7,381,315 Mcf of natural gas distributed at retail
outside the state of Arkansas by the public utility subsidiary.
(c) There were 2,340,834 Mcf of natural gas sold to industrial
consumers outside the state or at the state line by the public
utility subsidiary.
(d) There were 5,004,364 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, 1994.
EXHIBIT B
Financial Data Schedule for the year ended December 31, 1994.
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 27th day of February, 1995.
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, 1994
(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 $ - $ 120,008 $ 53,842 $ 22,767 $ - $ -
Oil sales - - - 3,178 - -
Gas transportation - 3,912 - - - -
Other - 2,746 - - 256 388
------------ ------------ ------------ ------------ --------- ----------
- 126,666 53,842 25,945 256 388
------------ ------------ ------------ ------------ --------- ----------
Operating Costs and Expenses:
Purchased gas costs - 73,238 - - - -
Operating and general - 32,960 4,134 6,438 179 135
Depreciation, depletion and
amortization 50 4,885 10,365 19,374 61 -
Taxes, other than income taxes 265 2,427 201 724 8 -
------------ ------------ ------------ ------------ --------- ----------
315 113,510 14,700 26,536 248 135
------------ ------------ ------------ ------------ --------- ----------
Operating income (315) 13,156 39,142 (591) 8 253
------------ ------------ ------------ ------------ --------- ----------
Interest Expense:
Interest on long-term debt 9,962 - - - - -
Intercompany interest (5,546) 6,035 (686) (18) 113 (61)
Other interest charges 161 333 6 2 - 2
Interest capitalized - (37) (239) (1,323) - -
------------ ------------ ------------ ------------ --------- ----------
4,577 6,331 (919) (1,339) 113 (59)
------------ ------------ ------------ ------------ --------- ----------
Other Income (Expense) 19,211 (176) 1 2 605 (2,806)
------------ ------------ ------------ ------------ --------- ----------
Income before provision
for income taxes 14,319 6,649 40,062 750 500 (2,494)
Provision for Income Taxes (1,840) 2,496 15,684 149 196 (982)
------------ ------------ ------------ ------------ --------- ----------
Net Income (Loss) $ 16,159 $ 4,153 $ 24,378 $ 601 $ 304 $ (1,512)
============ ============ ============ ============ ========= ==========
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<CAPTION>
Arkansas
Western
Pipeline
Company Eliminations Consolidated
---------- -------------- -----------
<S> <C> <C> <C>
Operating Revenues:
Gas sales $ - $ (36,154) (b) $ 160,463
Oil sales - - 3,178
Gas transportation 393 416 (c) 4,721
Other - (1,566) (c) 1,824
---------- -------------- -----------
393 (37,304) 170,186
---------- -------------- -----------
Operating Costs and Expenses:
Purchased gas costs - (36,843) (b)(c) 36,395
Operating and general 34 (1,374) (c) 42,506
Depreciation, depletion and
amortization 97 714 (c) 35,546
Taxes, other than income taxes 32 - 3,657
---------- -------------- -----------
163 (37,503) 118,104
---------- -------------- -----------
Operating income 230 199 52,082
---------- -------------- -----------
Interest Expense:
Interest on long-term debt - - 9,962
Intercompany interest 163 - -
Other interest charges - - 504
Interest capitalized - - (1,599)
---------- -------------- -----------
163 - 8,867
---------- -------------- -----------
Other Income (Expense) - (19,199) (c)(d) (2,362)
---------- -------------- -----------
Income before provision
for income taxes 67 (19,000) 40,853
Provision for Income Taxes 26 - 15,729
---------- -------------- -----------
Net Income (Loss) $ 41 $ (19,000) $ 25,124
========== ============== ===========
<FN>
(b)To eliminate intercompany sales and purchases. (c)To eliminate intercompany income and expense items.
(d)To eliminate intercompany dividends.
- 5 -<PAGE>
SOUTHWESTERN ENERGY COMPANY AND SUBSIDIARIES
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1994
(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 $ 714 $ 427 $ - $ 11 $ - $ -
Accounts receivable 577 22,321 1,319 5,232 272 2,602
Inventories, at average cost - 12,141 4 54 - -
Other 933 1,059 215 144 2 -
------------ ------------ ------------ ------------ --------- ----------
Total current assets 2,224 35,948 1,538 5,441 274 2,602
------------ ------------ ------------ ------------ --------- ----------
Investments:
Investment in subsidiaries, at cost 264,708 - - - 366 -
Advances to (from) subsidiaries (16,513) - (10,362) (2,774) (2,239) 1,039
Other 62 - - - 49 4,766
------------ ------------ ------------ ------------ --------- ----------
281,283 - (10,362) (2,774) (1,824) 5,805
------------ ------------ ------------ ------------ --------- ----------
Property, Plant and Equipment:
Oil and gas properties, using the
full cost method - - 160,233 275,337 - -
Gas utility system - 174,397 - - - -
Gas in underground storage - 15,854 20,775 - - -
Other 12,177 - - 1,184 5,180 -
------------ ------------ ------------ ------------ --------- ----------
12,177 190,251 181,008 276,521 5,180 -
Less - Accumulated depreciation,
depletion and amortization 5,172 58,622 77,007 100,636 441 -
------------ ------------ ------------ ------------ --------- ----------
7,005 131,629 104,001 175,885 4,739 -
------------ ------------ ------------ ------------ --------- ----------
Other Assets 4,505 1,572 6 16 - -
------------ ------------ ------------ ------------ --------- ----------
$ 295,017 $ 169,149 $ 95,183 $ 178,568 $ 3,189 $ 8,407
============ ============ ============ ============ ========= ==========
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<CAPTION>
Arkansas
Western
Pipeline
Company Eliminations Consolidated
---------- -------------- -----------
<S> <C> <C> <C>
Assets
Current Assets:
Cash $ - $ - $ 1,152
Accounts receivable 2 - 32,325
Inventories, at average cost - - 12,199
Other - - 2,353
---------- -------------- -----------
Total current assets 2 - 48,029
---------- -------------- -----------
Investments:
Investment in subsidiaries, at cost - (265,074) (a) -
Advances to (from) subsidiaries (2,177) - -
Other - - 4,877
---------- -------------- -----------
(2,177) (265,074) 4,877
---------- -------------- -----------
Property, Plant and Equipment:
Oil and gas properties, using the
full cost method - - 435,570
Gas utility system 2,331 - 176,728
Gas in underground storage - - 36,629
Other - - 18,541
---------- -------------- -----------
2,331 - 667,468
Less - Accumulated depreciation,
depletion and amortization 130 - 242,008
---------- -------------- -----------
2,201 - 425,460
---------- -------------- -----------
Other Assets 117 - 6,216
---------- -------------- -----------
$ 143 $ (265,074) $ 484,582
========== ============== ===========
<FN>
(a)To eliminate investment in subsidiaries.
- 7 -<PAGE>
SOUTHWESTERN ENERGY COMPANY AND SUBSIDIARIES
CONSOLIDATING BALANCE SHEET (continued)
DECEMBER 31, 1994
(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 $ 6,071 $ - $ - $ - $ - $ -
Accounts payable 6,616 5,184 3,393 2,759 - 718
Taxes payable 189 1,532 (273) (787) 55 -
Interest payable 1,146 151 - - - -
Customer deposits - 4,232 - - - -
Current portion of deferred
income taxes (71) 1,202 683 (328) - (4)
Over-recovered purchased gas cost, net - 3,627 - - - -
Other 206 1,320 137 974 400 11
------------ ------------ ------------ ------------ --------- ------------
Total current liabilities 14,157 17,248 3,940 2,618 455 725
------------ ------------ ------------ ------------ --------- ------------
Long-Term Debt, less current
portion above 136,596 60,397 14,000 - - -
------------ ------------ ------------ ------------ --------- ------------
Other Liabilities:
Deferred income taxes 1,207 12,900 32,723 49,872 394 3,111
Deferred investment tax credits - 2,030 168 218 - -
Other 302 602 - 2,146 - -
------------ ------------ ------------ ------------ --------- ------------
1,509 15,532 32,891 52,236 394 3,111
------------ ------------ ------------ ------------ --------- ------------
Shareholders' Equity:
Common stock 2,774 24,214 8,244 1 1 2
Capital in excess of par 21,231 29,000 - 119,545 1,728 7,573
Retained earnings 138,729 22,758 36,108 4,168 611 (3,004)
Unamortized cost of shares issued
under stock grant plan (262) - - - - -
Common stock in treasury, at cost (19,717) - - - - -
------------ ------------ ------------ ------------ --------- ------------
142,755 75,972 44,352 123,714 2,340 4,571
------------ ------------ ------------ ------------ --------- ------------
$ 295,017 $ 169,149 $ 95,183 $ 178,568 $ 3,189 $ 8,407
============ ============ ============ ============ ========= ============
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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 $ - $ - $ 6,071
Accounts payable - - 18,670
Taxes payable - - 716
Interest payable - - 1,297
Customer deposits - - 4,232
Current portion of deferred
income taxes - - 1,482
Over-recovered purchased gas cost, net - - 3,627
Other - - 3,048
---------- -------------- -----------
Total current liabilities - - 39,143
---------- -------------- -----------
Long-Term Debt, less current
portion above - (74,764) (a) 136,229
---------- -------------- -----------
Other Liabilities:
Deferred income taxes 81 - 100,288
Deferred investment tax credits - - 2,416
Other - - 3,050
---------- -------------- -----------
81 - 105,754
---------- -------------- -----------
Shareholders' Equity:
Common stock 2 (32,464) (a) 2,774
Capital in excess of par - (157,846) (a) 21,231
Retained earnings 60 - 199,430
Unamortized cost of shares issued
under stock grant plan - - (262)
Common stock in treasury, at cost - - (19,717)
---------- -------------- -----------
62 (190,310) 203,456
---------- -------------- -----------
$ 143 $ (265,074) $ 484,582
========== ============== ===========
<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, 1994
(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 $ 128,734 $ 20,605 $ 28,730 $ 3,567 $ 307 $ (1,492)
Net income (loss) 16,159 4,153 24,378 601 304 (1,512)
Cash dividends (6,164) (2,000) (17,000) - - -
------------ ------------ ------------ ------------ --------- ------------
RETAINED EARNINGS, end of year $ 138,729 $ 22,758 $ 36,108 $ 4,168 $ 611 $ (3,004)
============ ============ ============ ============ ========= ============
<CAPTION>
Arkansas
Western
Pipeline
Company Eliminations Consolidated
------------ -------------- -----------
<S> <C> <C> <C>
RETAINED EARNINGS, beginning of year $ 19 $ - $ 180,470
Net income (loss) 41 (19,000) (d) 25,124
Cash dividends - 19,000 (d) (6,164)
------------ -------------- -----------
RETAINED EARNINGS, end of year $ 60 $ - $ 199,430
============ ============== ===========
<FN>
(d)To eliminate intercompany dividends.
</TABLE>
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<TABLE> <S> <C>
<ARTICLE> OPUR3
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> DEC-31-1994
<BOOK-VALUE> PER-BOOK
<TOTAL-ASSETS> $484,582,000
<TOTAL-OPERATING-REVENUES> $170,186,000
<NET-INCOME> $25,124,000
</TABLE>
