<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 5151 San Felipe, Suite
700, Houston, Texas 77056-3608, and 5600 N. May Ave., Suite 200,
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., has authority to operate only in Arkansas.
Arkansas Western Gas Company and Arkansas Western Pipeline Company
are also authorized to do business in Missouri and Southwestern
Energy Pipeline Company is also authorized to do business in
Oklahoma.
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 6,233 miles of pipeline. This system includes
- 1 -
<PAGE>
in Arkansas, a gathering and storage system with 434 miles of
pipeline, 917 miles of transmission pipeline and 3,354 miles of
distribution pipeline. Additionally the system includes, in
Missouri, 431 miles of transmission pipeline and 1,097 miles of
distribution pipeline.
AWG's northwest Arkansas gas utility system gathers its gas supply
from the Arkoma Basin where it also provides 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 gathering and transmission 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, 1995, as follows:
(a) Natural gas distributed at retail:
Average
Utility Sales Consumers Mcf Sales
Residential 144,828 12,050,055 $ 59,522,563
Commercial 19,502 7,597,682 31,018,479
Industrial 342 7,749,527 22,466,121
Total 164,672 27,397,264 $113,007,163
- 2 -
<PAGE>
(b) There were 7,571,350 Mcf of natural gas distributed at retail
outside the state of Arkansas by the public utility subsidiary.
(c) There were 2,379,835 Mcf of natural gas sold to industrial
consumers outside the state or at the state line by the public
utility subsidiary.
(d) There were 4,081,611 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, 1995.
EXHIBIT B
Financial Data Schedule for the year ended December 31, 1995.
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, 1996.
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 to:
Gregory D. Kerley, Vice President - Treasurer and Secretary
Southwestern Energy Company
P. O. Box 1408
Fayetteville, Arkansas 72702-1408
- 3 -
<PAGE>
<TABLE>
SOUTHWESTERN ENERGY COMPANY AND SUBSIDIARIES
CONSOLIDATING STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 1995
(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 $ - $ 113,007 $ 43,443 $ 15,601 $ - $ -
Oil sales - - - 3,924 - -
Gas transportation - 4,102 - - - -
Other - 2,343 317 - 256 318
------------ ------------ ------------ ------------ --------- ----------
- 119,452 43,760 19,525 256 318
------------ ------------ ------------ ------------ --------- ----------
Operating Costs and Expenses:
Purchased gas costs - 67,326 - - - -
Operating and general - 33,135 4,103 8,112 224 217
Depreciation, depletion and
amortization 193 5,239 10,692 18,916 61 -
Taxes, other than income taxes 290 2,862 175 1,003 3 -
------------ ------------ ------------ ------------ --------- ----------
483 108,562 14,970 28,031 288 217
------------ ------------ ------------ ------------ --------- ----------
Operating income (483) 10,890 28,790 (8,506) (32) 101
------------ ------------ ------------ ------------ --------- ----------
Interest Expense:
Interest on long-term debt 12,984 - - - - -
Intercompany interest (8,068) 4,228 1,558 1,877 157 61
Other interest charges 192 446 - - - 1
Interest capitalized - (152) (226) (2,078) - -
------------ ------------ ------------ ------------ --------- ----------
5,108 4,522 1,332 (201) 157 62
------------ ------------ ------------ ------------ --------- ----------
Other Income (Expense) 10,739 68 (700) - 45 (694)
------------ ------------ ------------ ------------ --------- ----------
Income before provision
for income taxes and
extraordinary item 5,148 6,436 26,758 (8,305) (144) (655)
Provision (Benefit) for Income Taxes (2,088) 2,411 10,397 (3,165) (57) (261)
------------ ------------ ------------ ------------ --------- ----------
Income (loss) before
extraordinary item 7,236 4,025 16,361 (5,140) (87) (394)
Extraordinary Loss Due to Early
Retirement of Debt (Net of Tax) - - (124) (137) (14) (4)
------------ ------------ ------------ ------------ --------- ----------
Net Income (Loss) $ 7,236 $ 4,025 $ 16,237 $ (5,277) $ (101) $ (398)
============ ============ ============ ============ ========= ==========
- 4 -
<PAGE>
<CAPTION>
Arkansas
Western
Pipeline
Company Eliminations Consolidated
---------- -------------- -----------
<S> <C> <C> <C>
Operating Revenues:
Gas sales $ - $ (29,596) (b) $ 142,455
Oil sales - - 3,924
Gas transportation 403 459 (c) 4,964
Other - (1,466) (c) 1,768
---------- -------------- -----------
403 (30,603) 153,111
---------- -------------- -----------
Operating Costs and Expenses:
Purchased gas costs - (30,193) (b)(c) 37,133
Operating and general 33 (1,388) (c) 44,436
Depreciation, depletion and
amortization 98 793 (c) 35,992
Taxes, other than income taxes 29 - 4,362
---------- -------------- -----------
160 (30,788) 121,923
---------- -------------- -----------
Operating income 243 185 31,188
---------- -------------- -----------
Interest Expense:
Interest on long-term debt - - 12,984
Intercompany interest 187 - -
Other interest charges - - 639
Interest capitalized - - (2,456)
---------- -------------- -----------
187 - 11,167
---------- -------------- -----------
Other Income (Expense) - (10,685) (c)(d) (1,227)
---------- -------------- -----------
Income before provision
for income taxes and
extraordinary item 56 (10,500) 18,794
Provision (Benefit) for Income Taxes 22 - 7,259
---------- -------------- -----------
Income (loss) before
extraordinary item 34 (10,500) 11,535
Extraordinary Loss due to Early
Retirement of Debt (Net of Tax) (16) - (295)
---------- -------------- ------------
Net Income (Loss) $ 18 $ (10,500) $ 11,240
========== ============== ===========
<FN>
(b)To eliminate intercompany sales and purchases. (c)To eliminate intercompany income and expense items.
(d)To eliminate intercompany dividends.
</FN>
- 5 -
<PAGE>
SOUTHWESTERN ENERGY COMPANY AND SUBSIDIARIES
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1995
(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 $ 1,011 $ 476 $ - $ 11 $ - $ -
Accounts receivable 987 24,569 4,741 4,040 1 1,201
Income taxes receivable (payable) 8,023 320 (100) (26) 2 2
Inventories, at average cost - 12,177 3,216 55 - -
Other 802 1,014 1,066 294 2 -
------------ ------------ ------------ ------------ --------- ----------
Total current assets 10,823 38,556 8,923 4,374 5 1,203
------------ ------------ ------------ ------------ --------- ----------
Investments:
Investment in subsidiaries, at cost 342,198 - - - 366 -
Advances to (from) subsidiaries (13,241) - 16,611 1,925 (1,907) (1,386)
Other 28 - - - 49 9,037
------------ ------------ ------------ ------------ --------- ----------
328,985 - 16,611 1,925 (1,492) 7,651
------------ ------------ ------------ ------------ --------- ----------
Property, Plant and Equipment:
Oil and gas properties, using the
full cost method - - 176,857 341,122 - -
Gas utility system - 190,927 - - - -
Gas in underground storage - 11,841 20,775 - - -
Other 13,021 - - 1,515 5,181 -
------------ ------------ ------------ ------------ --------- ----------
13,021 202,768 197,632 342,637 5,181 -
Less - Accumulated depreciation,
depletion and amortization 6,726 63,211 87,538 119,551 502 -
------------ ------------ ------------ ------------ --------- ----------
6,295 139,557 110,094 223,086 4,679 -
------------ ------------ ------------ ------------ --------- ----------
Other Assets 7,051 3,064 11 26 - -
------------ ------------ ------------ ------------ --------- ----------
$ 353,154 $ 181,177 $ 135,639 $ 229,411 $ 3,192 $ 8,854
============ ============ ============ ============ ========= ==========
- 6 -
<PAGE>
<CAPTION>
Arkansas
Western
Pipeline
Company Eliminations Consolidated
---------- -------------- -----------
<S> <C> <C> <C>
Assets
Current Assets:
Cash $ - $ - $ 1,498
Accounts receivable 2 - 35,541
Income taxes receivable (payable) - - 8,221
Inventories, at average cost - - 15,448
Other 10 - 3,188
---------- -------------- -----------
Total current assets 12 - 63,896
---------- -------------- -----------
Investments:
Investment in subsidiaries, at cost - (342,564) (a) -
Advances to (from) subsidiaries (2,002) - -
Other - - 9,114
---------- -------------- -----------
(2,002) (342,564) 9,114
---------- -------------- -----------
Property, Plant and Equipment:
Oil and gas properties, using the
full cost method - - 517,979
Gas utility system 2,331 - 193,258
Gas in underground storage - - 32,616
Other - - 19,717
---------- -------------- -----------
2,331 - 763,570
Less - Accumulated depreciation,
depletion and amortization 223 - 277,751
---------- -------------- -----------
2,108 - 485,819
---------- -------------- -----------
Other Assets 112 - 10,264
---------- -------------- -----------
$ 230 $ (342,564) $ 569,093
========== ============== ===========
<FN>
(a)To eliminate investment in subsidiaries.
</FN>
- 7 -
<PAGE>
SOUTHWESTERN ENERGY COMPANY AND SUBSIDIARIES
CONSOLIDATING BALANCE SHEET (continued)
DECEMBER 31, 1995
(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 $ 3,071 $ - $ - $ - $ - $ -
Accounts payable 8,627 7,015 3,617 4,341 - 376
Taxes payable 380 1,749 245 8 39 1
Customer deposits - 4,619 - - - -
Over-recovered purchased gas cost, net - 7,327 - - - -
Other 1,367 1,096 401 708 400 10
------------ ------------ ------------ ------------ --------- ------------
Total current liabilities 13,445 21,806 4,263 5,057 439 387
------------ ------------ ------------ ------------ --------- ------------
Long-Term Debt, less current
portion above 208,123 70,888 14,000 - - -
------------ ------------ ------------ ------------ --------- ------------
Other Liabilities:
Deferred income taxes 1,316 16,313 34,703 58,184 514 4,294
Deferred investment tax credits - 1,910 84 109 - -
Other 471 763 - 2,624 - -
------------ ------------ ------------ ------------ --------- ------------
1,787 18,986 34,787 60,917 514 4,294
------------ ------------ ------------ ------------ --------- ------------
Shareholders' Equity:
Common stock 2,774 24,214 8,244 1 1 2
Capital in excess of par 21,272 29,000 22,000 164,545 1,728 7,573
Retained earnings 139,927 16,283 52,345 (1,109) 510 (3,402)
Unamortized cost of shares issued
under stock grant plan (379) - - - - -
Common stock in treasury, at cost (33,795) - - - - -
------------ ------------ ------------ ------------ --------- ------------
129,799 69,497 82,589 163,437 2,239 4,173
------------ ------------ ------------ ------------ --------- ------------
$ 353,154 $ 181,177 $ 135,639 $ 229,411 $ 3,192 $ 8,854
============ ============ ============ ============ ========= ============
- 8 -
<PAGE>
<CAPTION>
Arkansas
Western
Pipeline
Company Eliminations Consolidated
---------- -------------- -----------
<S> <C> <C> <C>
Liabilities and Shareholders' Equity
Current Liabilities:
Current portion of long-term debt $ - $ - $ 3,071
Accounts payable 13 - 23,989
Taxes payable - - 2,422
Customer deposits - - 4,619
Over-recovered purchased gas cost, net - - 7,327
Other - - 3,982
---------- -------------- -----------
Total current liabilities 13 - 45,410
---------- -------------- -----------
Long-Term Debt, less current
portion above - (85,254) (a) 207,757
---------- -------------- -----------
Other Liabilities:
Deferred income taxes 137 - 115,461
Deferred investment tax credits - - 2,103
Other - - 3,858
---------- -------------- -----------
137 - 121,422
---------- -------------- -----------
Shareholders' Equity:
Common stock 2 (32,464) (a) 2,774
Capital in excess of par - (224,846) (a) 21,272
Retained earnings 78 - 204,632
Unamortized cost of shares issued
under stock grant plan - - (379)
Common stock in treasury, at cost - - (33,795)
---------- -------------- -----------
80 (257,310) 194,504
---------- -------------- -----------
$ 230 $ (342,564) $ 569,093
========== ============== ===========
<FN>
(a)To eliminate investment in subsidiaries.
</FN>
- 9 -
<PAGE>
SOUTHWESTERN ENERGY COMPANY AND SUBSIDIARIES
CONSOLIDATING STATEMENT OF RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 1995
(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 $ 138,729 $ 22,758 $ 36,108 $ 4,168 $ 611 $ (3,004)
Net income (loss) 7,236 4,025 16,237 (5,277) (101) (398)
Cash dividends (6,038) (10,500) - - - -
------------ ------------ ------------ ------------ --------- ------------
RETAINED EARNINGS, end of year $ 139,927 $ 16,283 $ 52,345 $ (1,109) $ 510 $ (3,402)
============ ============ ============ ============ ========= ============
<CAPTION>
Arkansas
Western
Pipeline
Company Eliminations Consolidated
------------ -------------- -----------
<S> <C> <C> <C>
RETAINED EARNINGS, beginning of year $ 60 $ - $ 199,430
Net income (loss) 18 (10,500) (d) 11,240
Cash dividends - 10,500 (d) (6,038)
------------ -------------- -----------
RETAINED EARNINGS, end of year $ 78 $ - $ 204,632
============ ============== ===========
<FN>
(d)To eliminate intercompany dividends.
</FN>
</TABLE>
- 10 -
<PAGE>
<TABLE> <S> <C>
<ARTICLE> OPUR3
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> DEC-31-1995
<BOOK-VALUE> PER-BOOK
<TOTAL-ASSETS> $569,093,000
<TOTAL-OPERATING-REVENUES> $153,111,000
<NET-INCOME> $11,240,000
<PAGE>
</TABLE>
