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Previous: ANDERSEN GROUP INC, S-8 POS, 1997-02-27 |
Next: SEPARATE ACCOUNT VA B OF ALLMERICA FINAN LFE INS & ANN CO, 24F-2NT, 1997-02-27 |
<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 eight 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;
Arkansas Western Pipeline Company, a corporation that operates
an 8-mile interstate pipeline in northeast Arkansas and
southeast Missouri; Southwestern Energy Services Company, an
Oklahoma based gas marketing company; and Diamond "M"
Production Company, a Texas based oil and gas exploration and
production company. 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. The
main location of Southwestern Energy Services Company is 2200
Mid-Continent Tower, 401 South Boston, Tulsa, Oklahoma 74103.
The main location of Diamond "M" Production Company is 5151 San
Felipe, Suite 700, Houston, Texas 77056-3608. All
subsidiaries, with the exception of Diamond "M" Production
Company, 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.
Southwestern Energy Services Company is also authorized to do
business in Oklahoma and Texas. Diamond "M" Production Company
is a Delaware corporation authorized to do business in New
Mexico, Oklahoma and Texas.
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 eight subsidiaries.
Arkansas Western Gas Company (AWG), Claimant's only public
utility subsidiary, operates 6,328 miles of pipeline. This
system includes, in Arkansas, a gathering and storage system
with 442 miles of pipeline, 917 miles of transmission pipeline
and 3,422 miles of distribution pipeline. Additionally the
system includes, in Missouri, 434 miles of transmission
pipeline and 1,113 miles of distribution pipeline.
AWG's northwest Arkansas gas utility system gathers its gas
supply from the Arkoma Basin where it also provides
<PAGE>
-2-
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. Attached hereto and made a
part hereof is a map indicating the Company's transmission and
distribution system.
3. Arkansas Western Gas Company made gas sales for the 12 months
ended December 31, 1996, as follows:
(a) Natural gas distributed at retail:
Average
Utility Sales Consumers Mcf Sales
Residential 148,085 13,411,498 $ 71,996,093
Commercial 20,151 8,730,985 39,178,707
Industrial 331 7,713,413 25,306,923
Total 168,567 29,855,896 $136,481,723
(b) There were 8,113,597 Mcf of natural gas distributed at
retail outside the state of Arkansas by the public utility
subsidiary.
(c) There were 2,343,304 Mcf of natural gas sold to industrial
consumers outside the state or at the state line by the
public utility subsidiary.
(d) There were 4,328,920 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, 1996.
EXHIBIT B
Financial Data Schedule for the year ended December 31, 1996.
<PAGE>
-3-
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, 1997.
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
<PAGE>
<TABLE>
SOUTHWESTERN ENERGY COMPANY AND SUBSIDIARIES
CONSOLIDATING STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 1996
(in thousands)
<CAPTION>
Southwestern Southwestern Arkansas
Southwestern Arkansas Energy A.W. Energy Western
Energy Western Gas Production Realty Pipeline Pipeline
Company Company SEECO, Inc. Company Company Company Company
------------ ----------- ----------- ------------ --------- ------------ --------
<S> <C> <C> <C> <C> <C> <C> <C>
Operating Revenues:
Gas sales $ - $ 136,482 $ 52,664 $ 25,866 $ - $ - $ -
Oil sales - - - 7,620 - - -
Gas Transportation - 3,775 - - - - 412
Other - 2,472 133 - 256 2 -
------------ ----------- ----------- ------------ --------- ------------ --------
- 142,729 52,797 33,486 256 2 412
------------ ----------- ----------- ------------ --------- ------------ --------
Operating Costs and Expenses:
Purchased gas costs - 83,641 - - - - -
Operating and general - 36,464 4,668 9,977 166 151 36
Depreciation, depletion and
amortization - 5,694 11,724 23,515 67 - 98
Taxes, other than income taxes 349 2,754 404 1,858 18 1 29
------------ ----------- ----------- ------------ --------- ------------ --------
349 128,553 16,796 35,350 251 152 163
------------ ----------- ----------- ------------ --------- ------------ --------
Operating income (349) 14,176 36,001 (1,864) 5 (150) 249
------------ ----------- ----------- ------------ --------- ------------ --------
Interest Expense:
Interest on long-term debt 15,982 - - - - - -
Intercompany interest (5,675) 5,128 (1,483) 1,555 173 102 107
Other interest charges 637 373 180 8 - 1 4
Interest capitalized - (59) (317) (3,766) - - -
------------ ----------- ----------- ------------ --------- ------------ --------
10,944 5,442 (1,620) (2,203) 173 103 111
------------ ----------- ----------- ------------ --------- ------------ --------
Other Income (Expense) 23,225 (163) (272) 3 78 (3,777) 26
------------ ----------- ----------- ------------ --------- ------------ --------
Income before provision for income
taxes 11,932 8,571 37,349 342 (90) (4,030) 164
Provision (Benefit) for Income Taxes (4,333) 3,262 14,570 (74) (35) (1,581) 64
------------ ----------- ----------- ------------ --------- ------------ --------
Net Income (Loss) $ 16,265 $ 5,309 $ 22,779 $ 416 $ (55) $ (2,449) $ 100
============ =========== =========== ============ ========= ============ ========
<PAGE>
SOUTHWESTERN ENERGY COMPANY AND SUBSIDIARIES
CONSOLIDATING STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 1996
(in thousands)
<CAPTION>
Southwestern Diamond
Energy "M"
Services Production
Company Company Eliminations Consolidated
------------ ---------- ------------ ------------
<S> <C> <C> <C> <C>
Operating Revenues:
Gas sales $ - $ 21 $(40,295) (b) $ 174,738
Oil sales - 674 - 8,294
Gas transportation - - 23 (c) 4,210
Other 37 - (916) (c) 1,984
------------ ---------- ------------ ------------
37 695 (41,188) 189,226
------------ ---------- ------------ ------------
Operating Costs and Expenses:
Purchased gas costs - - (40,790) (b) (c) 42,851
Operating and general 412 166 (1,531) (c) 50,509
Depreciation, depletion and
amortization 7 294 995 (c) 42,394
Taxes, other than income taxes 14 49 - 5,476
------------ --------- ------------ ------------
433 509 (41,326) 141,230
------------ --------- ------------ ------------
Operating income (396) 186 138 47,996
------------ --------- ------------ ------------
Interest Expense:
Interest on long-term debt - - - 15,982
Intercompany interest 34 59 - -
Other interest charges 1 - - 1,204
Interest capitalized - - - (4,142)
------------ --------- ------------ ------------
35 59 - 13,044
------------ --------- ------------ ------------
Other Income (Expense) 3 - (23,138) (c) (d) (4,015)
------------ --------- ------------ ------------
Income before provision for income
taxes (428) 127 (23,000) 30,937
Provision (Benefit) for Income Taxes (166) 44 - 11,751
------------ --------- ------------ ------------
Net Income (Loss) $ (262) $ 83 $(23,000) $ 19,186
============ ========= ============ ============
<FN>
(b)To eliminate intercompany sales and purchases.
(c)To eliminate intercompany income and expense items.
(d)To eliminate intercompany dividends.
</FN>
</TABLE>
<PAGE>
<TABLE>
SOUTHWESTERN ENERGY COMPANY AND SUBSIDIARIES
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1996
(in thousands)
<CAPTION>
Southwestern Southwestern Arkansas
Southwestern Arkansas Energy A.W. Energy Western
Energy Western Gas Production Realty Pipeline Pipeline
Company Company SEECO, Inc. Company Company Company Company
------------ ----------- ----------- ------------ ------- ------------ --------
<S> <C> <C> <C> <C> <C> <C> <C>
Assets
Current Assets:
Cash $ 1,714 $ 446 $ - $ 124 $ - $ - $ -
Accounts receivable 1,201 26,242 1,700 7,003 1 133 4
Income taxes receivable 6,623 - - - - - -
Inventories, at average cost - 14,300 3,216 55 - - -
Under-recovered purchased gas costs - 3,030 - - - - -
Other 879 1,464 508 621 2 - 10
------------ ----------- ----------- ------------ -------- ------------ ---------
Total current assets 10,417 45,482 5,424 7,803 3 133 14
------------ ----------- ----------- ------------ -------- ------------ ---------
Investments:
Investment in subsidiaries, at cost 407,613 - - - - - -
Advances to (from) subsidiaries (3,149) - (17,035) 30,542 (2,787) (2) -
Other (17) - - - 49 6,525 -
----------- ------------ ----------- ------------ -------- ------------ --------
404,447 - (17,035) 30,542 (2,738) 6,523 0
----------- ------------ ----------- ------------ -------- ------------ --------
Property, Plant and Equipment:
Oil and gas properties, using the
full cost method - - 219,292 411,132 - - -
Gas utility system - 200,646 - - - 97 2,327
Gas in underground storage - 12,432 13,204 - - - -
Other 13,969 - - 2,036 5,914 - -
----------- ----------- ----------- ------------ -------- ----------- --------
13,969 213,078 232,496 413,168 5,914 97 2,327
Less - Accumulated depreciation,
depletion and amortization 8,252 67,382 99,261 143,053 569 - 317
----------- ----------- ----------- ------------ -------- ----------- --------
5,717 145,696 133,235 270,115 5,345 97 2,010
----------- ----------- ----------- ------------ -------- ----------- --------
Other Assets 6,967 4,539 43 308 - - 140
----------- ----------- ----------- ------------ -------- ----------- --------
$ 427,548 $ 195,717 $ 121,667 $ 308,768 $ 2,610 $ 6,753 $ 2,164
=========== =========== =========== ============ ======== =========== ========
<PAGE>
SOUTHWESTERN ENERGY COMPANY AND SUBSIDIARIES
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1996
(in thousands)
<CAPTION>
Southwestern Diamond
Energy "M"
Services Production
Company Company Eliminations Consolidated
------------ ---------- ------------ ------------
<S> <C> <C> <C> <C>
Assets
Current Assets:
Cash $ 3 10 $ - $ 2,297
Accounts receivable 3,644 - - 39,928
Income taxes receivable - - - 6,623
Inventories, at average cost - - - 17,571
Under-recovered purchased gas costs - - - 3,030
Other - - - 3,484
------------ ---------- ------------ ------------
Total current assets 3,647 10 - 72,933
------------ ---------- ------------ ------------
Investments:
Investment in subsidiaries, at cost - - (407,613) (a) -
Advances to (from) subsidiaries (1,211) (6,358) - -
Other - - - 6,557
------------ ---------- ------------ ------------
(1,211) (6,358) (407,613) 6,557
------------ ---------- ------------ ------------
Property, Plant and Equipment:
Oil and gas properties, using the
full cost method - 6,676 - 637,100
Gas utility system - - - 203,070
Gas in underground storage - - - 25,636
Other 112 - - 22,031
----------- ---------- ------------ ------------
112 6,676 - 887,837
Less - Accumulated depreciation,
depletion and amortization 7 294 - 319,135
----------- ---------- ------------ ------------
105 6,382 - 568,702
----------- ---------- ------------ ------------
Other Assets - 1 - 11,998
----------- ---------- ------------ ------------
$ 2,541 $ 35 $(407,613) $ 660,190
=========== ========== ============= ============
<FN>
(a)To eliminate investment in subsidiaries.
</FN>
</TABLE>
<PAGE>
<TABLE>
CONSOLIDATING BALANCE SHEET (continued)
DECEMBER 31, 1996
(in thousands)
<CAPTION>
Southwestern Southwestern Arkansas
Southwestern Arkansas Energy A.W. Energy Western
Energy Western Gas Production Realty Pipeline Pipeline
Company Company SEECO, Inc. Company Company Company Company
------------ ----------- ----------- ------------ ------- ------------ --------
<S> <C> <C> <C> <C>
Liabilities and Shareholders' Equity
Current Liabilities:
Current portion of long-term debt $ 3,071 $ - $ - $ - $ - $ - $ -
Accounts payable 7,743 8,148 3,917 3,124 - 3 12
Taxes payable 494 2,264 381 62 6 (5) (1)
Customer deposits - 4,904 - - - - -
Other (1,087) 4,937 113 934 - - -
------------ ----------- ----------- ------------ ------- ------------ --------
Total current liabilities 10,221 20,253 4,411 4,120 6 (2) 11
------------ ----------- ----------- ------------ ------- ------------ --------
Long-Term Debt, less current
portion above 275,214 78,512 - - - - 890
------------ ----------- ----------- ------------ ------- ------------ --------
Other Liabilities:
Deferred income taxes 1,217 19,369 34,888 67,836 419 5,032 183
Deferred investment tax credits - 1,791 - - - - -
Other 582 985 - 2,960 - - -
------------ ----------- ----------- ------------ ------- ------------ --------
1,799 22,145 34,888 70,796 419 5,032 183
------------ ----------- ----------- ------------ ------- ------------ --------
Shareholders' Equity:
Common stock 2,774 24,214 8,244 1 1 2 2
Capital in excess of par 21,336 29,000 22,000 234,544 1,728 7,573 900
Retained earnings 150,262 21,593 52,124 (693) 456 (5,852) 178
Common stock in treasury, at cost (33,603) - - - - - -
Unamortized cost of shares issued
under stock grant plan (455) - - - - - -
------------ ----------- ----------- ----------- ------- ------------ --------
140,314 74,807 82,368 233,852 2,185 1,723 1,080
------------ ----------- ----------- ----------- ------- ------------ --------
$ 427,548 $ 195,717 $ 121,667 $ 308,768 $2,610 $ 6,753 $ 2,164
============ =========== =========== =========== ======= ============ ========
<PAGE>
SOUTHWESTERN ENERGY COMPANY AND SUBSIDIARIES
CONSOLIDATING BALANCE SHEET (continued)
DECEMBER 31, 1996
(in thousands)
<CAPTION>
Southwestern Diamond
Energy "M"
Services Production
Company Company Eliminations Consolidated
------------ ----------- ------------ ------------
<S> <C> <C> <C> <C>
Liabilities and Shareholders' Equity
Current Liabilities:
Current portion of long-term debt $ - $ - $ - $ 3,071
Accounts payable 2,697 - - 25,643
Taxes payable 82 7 - 3,290
Customer deposits - - - 4,904
Other 16 - - 4,913
------------ ----------- ----------- ------------
Total current liabilities 2,795 7 - 41,822
------------ ----------- ----------- ------------
Long-Term Debt, less current
portion above - - (79,402) (a) 275,215
----------- ----------- ----------- ------------
Other Liabilities:
Deferred income taxes 6 (55) - 128,895
Deferred investment tax credits - - - 1,791
Other - - - 4,527
----------- ---------- ----------- ------------
6 (55) - 135,213
----------- ---------- ----------- ------------
Shareholders' Equity:
Common stock 2 - (32,466) (a) 2,774
Capital in excess of par - - (295,745) (a) 21,336
Retained earnings (262) 83 - 217,889
Common stock in treasury, at cost - - - (33,603)
Unamortized cost of shares issued
under stock grant plan - - - (455)
---------- ---------- ----------- ------------
(260) 83 (328,211) 207,940
---------- ---------- ----------- ------------
$ 2,541 $ 35 $ (407,613) $ 660,190
========== ========== =========== ============
<FN>
(a)To eliminate investment in subsidiaries.
</FN>
</TABLE>
<PAGE>
<TABLE>
SOUTHWESTERN ENERGY COMPANY AND SUBSIDIARIES
CONSOLIDATING STATEMENT OF RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 1996
(in thousands)
<CAPTION>
Southwestern Southwestern Arkansas
Southwestern Arkansas Energy A.W. Energy Western
Energy Western Gas Seeco, Inc. Production Realty Pipeline Pipeline
------------ ----------- ----------- ------------ ------- ------------ --------
<S> <C> <C> <C> <C> <C> <C> <C>
RETAINED EARNINGS, beginning of year $ 139,926 $ 16,284 $ 52,345 $ (1,109) $ 511 $ (3,403) $ 78
Net income (loss) 16,265 5,309 22,779 416 (55) (2,449) 100
Cash dividends (5,929) - (23,000) - - - -
------------ ----------- ----------- ------------ ------- --------- ----------
RETAINED EARNINGS, end of year $ 150,262 $ 21,593 $ 52,124 $ (693) $ 456 $ (5,852) $ 178
============ =========== =========== ============ ======= ========= ==========
<PAGE>
SOUTHWESTERN ENERGY COMPANY AND SUBSIDIARIES
CONSOLIDATING STATEMENT OF RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 1996
(in thousands)
<CAPTION>
Southwestern Diamond
Energy "M"
Services Production
Company Company Eliminations Consolidated
------------ ----------- ------------ ------------
<S> <C> <C> <C> <C>
RETAINED EARNINGS, beginning of year $ - - $ - $ 204,632
Net income (loss) (262) 83 (23,000) (d) 19,186
Cash dividends - - (23,000) (d) (5,929)
------------ ----------- ------------ ------------
RETAINED EARNINGS, end of year $ (262) $ 83 $ - $ 217,889
============ =========== ============ ============
<FN>
(d)To eliminate intercompany dividends.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> OPUR3
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> DEC-31-1996
<BOOK-VALUE> PER-BOOK
<TOTAL-ASSETS> $660,190,000
<TOTAL-OPERATING-REVENUES> $189,226,000
<NET-INCOME> $19,186,000
</TABLE>
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