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<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM U-3A-2
Statement by Holding Company Claiming
Exemption Under Rule U-3A-2 from the Provisions
of the Public Utility Holding Company Act of 1935
For The Year Ended December 31, 1999
MCN ENERGY GROUP INC.
and
MICHCON HOLDINGS, INC.
hereby file jointly with the Securities and Exchange Commission (SEC), pursuant
to Rule 2, their statement claiming exemptions as holding companies from the
provisions of the Public Utility Holding Company Act of 1935 (PUHCA of 1935),
and submit the following information:
I. NATURE OF BUSINESS OF CLAIMANT AND EVERY SUBSIDIARY THEREOF
MCN ENERGY GROUP INC.: MCN Energy Group Inc. (MCN or the Corporation) is an
integrated energy company with more than $4 billion of assets and approximately
$2.5 billion of annual revenues. The company is primarily involved in natural
gas production, gathering, processing, transmission, storage and distribution,
electric power generation and energy marketing in the Midwest-to-Northeast
corridor. MCN is organized under the laws of the state of Michigan and has its
principal executive offices at 500 Griswold Street, Detroit, Michigan 48226.
Except where otherwise indicated, the Corporation owns directly all of the
outstanding common stock of MichCon Holdings, Inc., Citizens Gas Fuel Company
(Citizens), MCN Energy Enterprises Inc. (MCNEE) (formerly MCN Investment
Corporation), various MCN financing companies, and a 47.5% limited partnership
interest in Southern Missouri Gas Company, L.P. MCN's major business groups are
Gas Distribution and Diversified Energy. Except where otherwise indicated, the
companies set forth below are Michigan corporations located at 500 Griswold
Street, Detroit, Michigan 48226.
MCN and DTE Energy Company (DTE) have signed a definitive merger agreement,
dated October 4, 1999, under which DTE will acquire all outstanding shares of
MCN common stock. The board of directors and shareholders of both companies have
approved the merger agreement. The merger transaction is subject to certain
regulatory approvals and other customary merger conditions. Upon completion of
the merger, MCN will be merged with and into DTE Enterprises, Inc. (DTE
Enterprises), a subsidiary of DTE, with DTE Enterprises as the surviving
corporation. In addition, as part of the merger agreement, MCN has agreed to use
its best efforts to enter into agreements to dispose of some or all of its
interest in certain assets or facilities. The merger transaction is expected to
close in mid-2000.
GAS DISTRIBUTION
MCN, through the following subsidiaries, operates the largest natural gas
distribution and intrastate transmission system in Michigan and one of the
largest in the United States.
A. MICHCON HOLDINGS, INC. is the holding company (formed in 1998) for Michigan
Consolidated Gas Company (MichCon), MichCon Enterprises, Inc., and MichCon
Power Company, Inc. MichCon is a public utility engaged in the distribution
and transmission of natural gas in the state of Michigan. MichCon was
organized in 1898 and, with its predecessors, has been in business for 150
years. MichCon serves 1.2 million residential, commercial and industrial
customers in the Detroit, Grand Rapids, Ann Arbor, Traverse City and
Muskegon metropolitan areas as well as various other communities throughout
the state of Michigan. MichCon conducts substantially all of its business
in the state of Michigan and is subject to the jurisdiction of the Michigan
Public Service Commission (MPSC) as to various phases of its operations,
including gas sales rates, service, and
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accounting. MichCon Enterprises, Inc. (a non-regulated affiliate) was
formed in 1998 to engage in non-regulated activities. MichCon Power
Company, Inc. (formerly MichCon Guardian Corporation) was formed to
participate in power generation projects.
Except where otherwise indicated, the companies set forth below are wholly
owned subsidiaries of MichCon.
1. MichCon Development Corporation, through its various partnership
arrangements, is engaged in the design, construction and management of
Harbortown, a residential and small commercial development constructed
along the Detroit River in Detroit, Michigan.
2. Blue Lake Holdings, Inc. (Blue Lake), holds a 25% interest in Blue
Lake Gas Storage Company, a partnership that has converted a depleted
natural gas field in northern Michigan into a 46 billion cubic feet
(Bcf) natural gas storage field which it now operates.
3. MichCon Pipeline Company, through the subsidiaries below, is engaged
in pipeline and gathering projects in Michigan.
a. MichCon Gathering Company owns and operates the Antrim Expansion
Pipeline.
b. Saginaw Bay Pipeline Company is the sole general partner and owns
66% of Saginaw Bay Area Limited Partnership, a partnership that
operates a 126-mile pipeline that transports natural gas and
natural gas liquids from reserves in east-central Michigan to
natural gas processing plants in northern Michigan.
c. Saginaw Bay Lateral Company is the sole general partner and owns
46% of a partnership that owns and operates lateral pipelines
interconnecting with the 126-mile pipeline previously described.
d. Westside Pipeline Company invests in various pipeline assets in
Michigan.
e. Thunder Bay Gathering Company acquired a pipeline in December
1997, consisting of 44 miles of gathering lines situated in
Alpena and Alcona Counties in northeast Michigan.
f. MichCon Lateral Company, which is currently inactive, was
originally formed in 1997 to own, operate and construct natural
gas pipelines.
4. Huron Pipeline Company, which is currently inactive, was originally
formed in 1996 to acquire a 50% ownership interest in the ANR Link
Interstate Pipeline, which transports natural gas to Canada through a
pipeline owned by Niagara Gas Transmission Limited, a subsidiary of
The Consumers Gas Co. Ltd.
a. Huron Gas Services Company, which is currently inactive, was
originally formed in 1996 to market pipeline transportation
services.
5. Kalkaska Gas Storage Limited Partnership holds a 53.5% general
partnership interest in the Cold Springs Gas Storage Limited
Partnership which will develop and operate the Cold Springs Gas
Storage Field in Kalkaska County, Michigan.
Except where otherwise indicated, the companies set forth below are wholly
owned subsidiaries of MichCon Enterprises, Inc.:
1. MichCon Fuel Services Company markets natural gas as a vehicular fuel
and markets energy to residential and commercial customers through a
transportation brokerage pilot program.
2. MichCon Home Services Company was formed in 1998 to engage in heating,
ventilation and air conditioning activities.
a. Flame Furnace Company, is engaged in heating, ventilation and air
conditioning activities.
Except where otherwise indicated, the companies set forth below are wholly
owned subsidiaries of MichCon Power Company, Inc.
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1. Metro Energy, LLC, a Michigan limited liability company formed in June
1999 to provide energy related services, in which MichCon Power
Company holds a 50% interest.
B. CITIZENS GAS FUEL COMPANY: Citizens is a public utility engaged in the
distribution of natural gas. Citizens was organized in 1951 and, with its
predecessors, has been in business for more than 140 years. Citizens serves
approximately 15,000 residential, commercial and industrial customers in
and around Adrian, Michigan. Citizens' principal executive offices are
located at 127 N. Main Street, Adrian, Michigan 49221. Citizens conducts
all of its business in the state of Michigan, and its rates are set by the
Adrian Gas Rate Commission. Other various phases of its operations are
subject to the jurisdiction of the MPSC.
C. SOUTHERN MISSOURI GAS COMPANY, L.P.: MCN owns a 47.5% interest in Southern
Missouri Gas Company, L.P. (SMGC) which is a public utility engaged in the
distribution of natural gas. SMGC was organized in 1996, and with its
predecessors has been in business since 1995. SMGC serves approximately
7,000 residential, commercial, and industrial customers in southern
Missouri. The principal executive offices of SMGC are located at 301 East
17th Street, Mountain Grove, Missouri 65711. SMGC conducts all of its
business in the state of Missouri. Its rates and other various phases of
its operations are subject to the jurisdiction of the Missouri Public
Service Commission.
DIVERSIFIED ENERGY
D. MCN ENERGY ENTERPRISES INC.: Formerly MCN Investment Corporation, which was
organized in 1986, MCNEE is the holding company for MCN's various
diversified energy subsidiaries. MCNEE, through its subsidiaries and joint
ventures, provides gathering, processing and transmission services; invests
in electric generation facilities; engages in energy marketing activities
and storage services; engages in gas and oil exploration, development and
production; and is involved in other energy-related businesses. Except
where otherwise indicated, the companies set forth below are wholly owned
subsidiaries of MCNEE.
Pipelines & Processing
MCNEE's Pipelines & Processing businesses are involved in ventures
that gather and transport natural gas from producing fields to processing
plants and/or markets. This business also includes plants that process
natural gas to remove carbon dioxide (C02) and other impurities and recover
natural gas liquids. Additionally this segment has an investment in a
methanol production facility and other energy-related businesses.
1. MCNIC Pipeline & Processing Company engages in pipeline and processing
projects through the following subsidiaries and partnerships.
a. MCNIC Offshore Pipeline & Processing Company holds a 33% interest
in the Blue Dolphin System and 100% of MCNIC Black Marlin
Offshore Company, which holds a 33.3% interest in the Black
Marlin System.
b. MCNIC Michigan Holdings, Inc.
i. MCNIC CSG Pipeline Company holds a 50% interest in Cardinal
States Gathering Company (Cardinal States), in which an
agreement has been entered into by MCNIC CSG Pipeline
Company to sell Cardinal States during 2000.
ii. Bagley Processing Company (47% general partnership interest)
iii. Warner Treating Company (95% interest)
iv. Terra-Westside Processing Company (85% interest)
v. MCNIC Thunder Bay Processing Company, L.L.C. (90% interest)
owns two C02 Processing Plants.
c. MCNIC East Coast Pipeline Company holds a 16.4% interest in the
250-mile Portland Pipeline Project.
d. MCNIC Jonah Pipeline Company holds a 35% partnership interest in
Jonah Gas Gathering Company.
e. MCNIC Gulf Coast Gathering Corporation holds a 1% general
partnership interest in Copano Pipeline & Processing Group, L.P.
f. MCNIC Gulf Coast Limited, Inc. holds a 49% limited partnership
interest in Copano Pipeline & Processing Group, L.P., and a 90%
limited partnership interest in CFS/Upper Gulf Coast, L.P.,
Copano Pipelines/Upper Gulf Coast, L.P., and CES/Upper
Gulf Coast, L.P.
g. MCNIC Mobile Bay Gathering Company holds a 34.6% interest in
Dauphin Island Gathering Partners.
h. MCNIC Mobile Bay Processing LLC (75% interest), which holds a
28.8% interest in Mobile Bay Processing Partners which, in turn,
operates a processing facility.
i. MCNIC Mobile Bay NGL Pipeline, L.L.C. holds a 28.9% interest in
Gulf Coast NGL Pipeline LLC which, in turn, holds a 16.6%
interest in Tri-States NGL Pipeline LLC.
j. MCNIC South Texas Gathering Company holds a 1% general
partnership interest in each of CFS/Copano Bay, L.P., CFS/South
Texas, L.P. and CFS/Agua Dulce, L.P., CFS/Upper Gulf Coast, L.P.
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k. MCNIC Upper Gulf Coast Pipeline & Processing Company holds a 1%
interest in Copano Pipeline/Upper Gulf Coast, L.P.
l. MCNIC General Methanol Company holds a 1% general partnership
interest in Lyondell Petrochemical Methanol Co. L.P.
m. MCNIC Methanol Holdings Company holds a 24% limited partnership
interest in Lyondell Petrochemical Methanol Co. L.P.
n. American Central Western Oklahoma Gas Company, LLC (40% interest)
o. Crown Asphalt Ridge, L.L.C. (75% interest)
p. MCNIC East Texas Gathering Company holds a 39.9% limited
partnership interest in American Central Eastern Texas Gas
Company, L.P.
q. MCNIC East Texas Pipeline & Processing Company holds a 0.1%
general partnership interest in American Central Eastern Texas
Gas Company, L.P.
r. MCNIC CO2 Investment Company holds a 41.5% limited partnership
interest in PSCO2, L.P., a C02 pipeline project that holds a 78%
interest in PetroSource Carbon Company.
s. MCNIC Permian Basin Company holds a 0.99% general partnership
interest in PSCO2, L.P.
t. MCNIC Rodeo Gathering Inc. holds an 18.55% interest in Keyes
Helium Company, L.L.C. (Keyes Helium). This interest in Keyes
Helium is expected to be sold by mid-2000.
i. Keyes Helium Company, L.L.C. is a joint venture that processes
helium out of natural gas.
u. Crown Asphalt Distribution, L.L.C. was formed to own and operate
asphalt distribution and processing facilities.
v. MCNIC Millennium Company was formed to hold a 10.4% interest in
the Millennium Pipeline Company, L.P.
w. MCNIC LLC Millennium Company, a Michigan corporation, was formed
to hold a 10.5% interest in the Millennium Pipeline Management
Company, LLC, which holds 1% interest in the Millennium Pipeline
Company L.P.
x. MCNIC Vector Company was formed to hold a limited partnership
interest in Vector Pipeline, L.P. a Delaware Limited
Partnership, which will construct, own and operate the Vector
Pipeline Project.
y. MCNIC Vector Canada, Inc., a New Brunswick, Canada corporation,
was formed in 1998 to participate in the Vector Pipeline Limited
Partnership, which will construct and own the Canadian portion of
the Vector Pipeline project.
z. MCNIC Compression GP, Inc. was formed in March 1999 to hold the
.1% general partnership interest in the KCI Compression Company,
L.P.
aa. MCNIC Compression LP, Inc. was formed in March 1999 to hold the
42.9% limited partnership interest in the KCI Compression
Company, L.P.
bb. Coal Recovery Holdings, L.L.C. - Coal Recovery was formed as a
holding company for the following companies:
i. CRC No. 1 L.L.C., which was sold in November 1999.
ii. CRC No. 2 L.L.C.
iii. CRC No. 3 L.L.C., which was sold in November 1999.
iv. CRC No. 4 L.L.C.
v. CRC No. 5 L.L.C., which was sold in November 1999.
vi. CRC No. 6 L.L.C., which was sold in November 1999.
Electric Power
MCNEE's electric power businesses pursue power generation
opportunities.
2. MCN Power Company pursues domestic power generation related opportunities.
a. CDC Ada, Inc., is a 49% limited partner in Ada Cogeneration
Limited Partnership, which owns and operates a 30 megawatt (MW)
natural gas-fueled cogeneration facility in western Michigan,
which is expected to be sold in the second quarter of 2000.
b. MCNIC Ada GP, Inc., was formed in 1996 and holds a 1% general
partnership interest in the Ada Cogeneration Limited Partnership,
which is expected to be sold during the second quarter of 2000.
c. Ludington Cogeneration Company is the 1% general partner in
Michigan Power Limited Partnership, a joint venture that built
and operates a 123 MW natural gas-fueled cogeneration plant in
western Michigan, which is expected to be sold during the second
quarter of 2000.
d. Ludington Cogeneration Holdings, Ltd. is a 49% limited partner in
the 123 MW cogeneration plant mentioned above, which is expected
to be sold during the second quarter of 2000.
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e. Summit Computing, Inc., a Delaware corporation, holds a 99%
limited partnership interest in Source Midland Limited
Partnership. Source Midland Limited Partnership holds a 50%
partnership interest in MEI Limited Partnership which is a
partner in the Midland Cogeneration Limited Partnership. The
partnership interest was sold in January 2000. Source Midland
Limited Partnership has a 23.1% general partnership interest in
the Midland Cogeneration Venture Limited Partnership. The
partnership interest was sold in January 2000.
f. Alanna Holdings Corporation (Alanna) indirectly owns a .01%
interest in the Midland Cogeneration Limited Partnership. The
interest in Alanna was sold in January 2000.
g. Source Cogeneration Company, a Delaware corporation, held a 1%
general partnership interest in Source Midland Limited
Partnership. The partnership interest was sold in January 2000.
h. MCNIC Mobile Bay Power Company was formed in 1998 to hold a
membership interest in Mobile Bay Energy LLC, a Delaware limited
liability company formed to participate in power projects.
i. MCNIC Mobile Bay Processing LLC (25% interest), holds a 28.8%
interest in Mobile Bay Processing Partners.
j. MCNIC Person GP, Inc. was formed to hold a 94% interest in
Cobisa-Person Limited Partnership, a Delaware limited
partnership. Also, MCN Power owns a 1% interest in the
Cobisa-Person Limited Partnership.
k. Columbus Power Partners, L.L.C. is a Michigan limited liability
company that was formed in 1998.
l. MCNIC Carson Corporation holds an approximate 40% interest in
CMD Carson, L.L.C. and CMD Carson GP, L.L.C., which are both
Delaware limited liability companies that collectively own 100%
of Carson Cogeneration Company, a 42 MW power plant project in
Carson, California, which is expected to be sold in the first
quarter of 2000.
m. Power Energy Partners, L.L.C., is a Delaware limited liability
company formed in May 1999 to participate in power projects.
n. South Norwalk Power Partners, L.L.C., is a Michigan limited
liability company formed to participate in power projects.
3. MCN International Corporation was formed in 1998 as a holding company for
MCN's international subsidiaries.
a. MCNIC-GP International Holdings of Grand Cayman, Cayman Islands,
holds a 1% interest in IG-ONE Limited, of Port Louis, Mauritius.
b. MCNIC International Holdings of Grand Cayman, Cayman Islands,
holds a 99% interest in IG-ONE Limited of Port Louis, Mauritius.
c. IG-ONE Limited of Port Louis, Mauritius held a 40% interest in
Torrent Power Private Limited (TPL). In August 1999 MCN completed
the sale of its 40% interest in TPL.
d. MCNIC Nepal Limited of Grand Cayman, Cayman Island, owns 100% of
the Class B Capital Stock of Panda Bhote Koshi, which gives MCNIC
Nepal a 90% ownership interest in Panda Bhote Koshi, a Cayman
Island company that holds a 100% interest in Panda of Nepal.
Panda of Nepal holds a 75% interest in a 36 MW hydroelectric
power project in Nepal.
e. MCNIC-UAE Limited of Grand Cayman, Cayman Island, was formed to
hold a 39% interest in a U.A.E. fertilizer plant project.
Energy Marketing
MCNEE's Energy Marketing business pursues opportunities throughout the
Midwest-to-Northeast region.
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4. CoEnergy Trading Company is engaged in the purchase and sale of natural gas
to large-volume gas users and gas and electric utilities. Except where
otherwise indicated, the companies set forth below are 50% owned by
CoEnergy Trading Company:
a. U.S. CoEnergy Services, a Wisconsin general partnership formed to
market fuel oil, propane and natural gas primarily in the state
of Wisconsin.
b. Torch CoEnergy, L.L.C., a Delaware limited liability company
formed to market natural gas and natural gas liquids.
c. DTE-CoEnergy, L.L.C., which was dissolved in June 1999.
d. SEMCO Energy Services, Inc., 100% was purchased in April 1999 to
engage in the marketing of natural gas.
e. Michigan Gas Exchange, L.L.C., a Michigan limited liability
company that was formed in 1994 to engage in the purchase and
sale of natural gas, and to engage in other energy related
services. MCN sold its interest in this limited liability company
in December 1999.
f. CoEnergy Development Company is a wholly owned, inactive
subsidiary of CoEnergy Trading Company.
5. MCNIC Canadian Holdings Ltd., a New Brunswick corporation, was formed to
market and sell natural gas in Canada and the northeastern United States.
6. CoEnergy Supply Company engages in the purchase and sale of natural gas, a
portion of which is produced by subsidiaries of MCNIC Oil & Gas Company.
7. CoEnergy Sales Company was formed in 1998 to hold the membership interest
in DTE-CoEnergy, LLC, which has been dissolved.
8. MCNIC Gas Storage Company engages in the storage of natural gas.
a. South Romeo Gas Storage Company, a Michigan partnership in which
MCNIC Gas Storage Company has a 50% interest, owns and operates
the Washington 28 Gas Storage Field, a 10 Bcf storage field in
southeastern Michigan that provides storage services to MCNEE's
Energy Marketing and Electric Power operations. South Romeo Gas
Storage Company holds a 50% interest in South Romeo Gas Storage
Corporation.
b. W-10 Holdings, Inc., holds a 50% interest in Washington 10
Storage Partnership, a partnership that developed and operates
the Washington 10 Storage Field, a 42 Bcf storage field in
southeastern Michigan.
c. The Orchards Golf Limited Partnership, a Michigan partnership in
which MCNIC Gas Storage Company has a 50% interest, developed,
owns and operates a residential community and golf course on 520
acres of land above the South Romeo gas storage field in
southeastern Michigan.
Exploration & Production
9. MCNIC Oil & Gas Company (MOG) is engaged in natural gas and oil
exploration, development and production through the following subsidiaries:
a. Appalachia Acquisition Properties, Inc. During January 2000, MCN
entered into an agreement to sell Appalachia Acquisition
Properties, Inc., and all of its subsidiaries.
i. MCNIC Reid Holdings, Inc. (a Delaware corporation)
1. Appalachian Methane, Inc., a Delaware corporation,
holds a 50% interest in Buchanan Production Co., a
Virginia general partnership
2. Appalachian Operators, Inc., (a Delaware corporation)
holds a 50% interest in Buchanan Production Co., a
Virginia general partnership
3. MCNIC Oakwood Gathering, Inc. (a Delaware corporation)
b. Green Oak Development Company
c. Otsego Exploration Company, L.L.C.
d. MCNIC Enhanced Production, Inc., which has a 75% interest in
Otsego EOR, L.L.C.
e. MCNIC Oil & Gas Midcontinent, Inc.
f. MCNIC Oil & Gas Canada, Inc. (a New Brunswick corporation)
g. MCNIC Oil & Gas Properties, Inc.
h. MCNIC West Coast Company
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i. MCNIC Oil & Gas CV Company
i. Broughton Associates, L.P., a Delaware limited partnership
organized in 1993.
ii. Broughton Operating Corporation, a Delaware corporation
organized in 1997.
k. Pageant Corporation
l. Michigan Acquisition Properties, Inc., which was merged into
MOG in February 2000.
m. Elmira Antrim Company, which was merged into MOG in February
2000.
n. GeoTrend Exploration, Inc., which was merged into MOG in
February 2000.
o. Green River Antrim Company, which was merged into MOG in
February 2000.
p. Warner Antrim Company, which was merged into MOG in February
2000.
Other
10. Bridgewater Holdings, Inc. (Bridgewater) was originally formed to
hold a limited partnership interest in Bridgewater Place, a Grand
Rapids, Michigan office building. Currently, Bridgewater owns
undeveloped real property in western Michigan.
11. Combustion Concepts, Inc. holds patents for the development of
pressurized combustion technologies that provide increased fuel
efficiency, heat uniformity and compactness of equipment.
12. MCN Energy Holdings Inc. was formed in July 1999 to maximize the
value of existing ventures outside of MCN's target operating
region. It primarily consists of gas gathering and processing
investments.
13. MCN Energy Marketing, Inc. was formed in July 1999 to engage in
MCN's unregulated sales activities to industrial, commercial and
residential customers, both inside and outside the Gas
Distribution segment's service area.
14. MCN Midstream & Supply, Inc. was formed in July 1999 to develop
and manage MCN's gas producing, gathering, processing,
transmission and storage assets within MCN's target operating
region.
E. MCN MICHIGAN LIMITED PARTNERSHIP (MCN Michigan): MCN is the 1% general
partner in MCN Michigan, a Michigan limited partnership. MCN Michigan
exists for the sole purpose of issuing its limited partnership
interests in the form of preferred securities, and investing the
proceeds thereof in debt securities of MCN.
F. MCN FINANCING I: MCN is the sole owner of MCN Financing I, a Delaware
Business Trust. MCN Financing I exists for the sole purpose of issuing
preferred securities and investing the gross proceeds thereof in MCN
debt securities.
G. MCN FINANCING II: MCN is the sole owner of MCN Financing II, a
Delaware Business Trust. MCN Financing II exists for the sole purpose
of issuing preferred securities and investing the gross proceeds
thereof in MCN debt securities.
H. MCN FINANCING III: MCN is the sole owner of MCN Financing III, a
Delaware Business Trust. MCN Financing III exists for the sole purpose
of issuing preferred securities and investing the gross proceeds
thereof in MCN debt securities.
I. MCN FINANCING IV: MCN is the sole owner of MCN Financing IV, a
Delaware Business Trust. MCN Financing IV exists for the sole purpose
of issuing preferred securities and investing the gross proceeds
thereof in MCN debt securities.
J. MCN FINANCING V: MCN is the sole owner of MCN Financing V, a Delaware
Business Trust. MCN Financing V exists for the sole purpose of issuing
preferred securities and investing the gross proceeds thereof in MCN
debt securities. During 1998, MCN Financing V redeemed all outstanding
shares of the preferred securities.
K. MCN FINANCING VI: MCN is the sole owner of MCN Financing VI, a
Delaware Business Trust. MCN Financing VI exists for the sole purpose
of issuing preferred securities and investing the gross proceeds
thereof in MCN debt securities.
II. PUBLIC UTILITY PROPERTIES
A. MichCon owns the following integrated distribution, transmission,
production and storage properties and facilities, all of which
properties are located in the state of Michigan.
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At December 31, 1999, MichCon's distribution system included 16,997
miles of distribution mains, 1,096,327 service lines and 1,219,256 active
meters. MichCon owns 2,651 miles of transmission and production lines that
deliver natural gas to the distribution districts and interconnect its
storage fields with the sources of supply and the market areas. MichCon's
compressor facilities related to transmission and production have a total
rated capacity of 28,500 horsepower and 1,713 horsepower, respectively.
Properties relating to five underground natural gas storage fields with an
aggregate working gas storage capacity of approximately 124 Bcf consist
principally of 408 gas storage wells (73 of which are observation wells),
113 miles of field lines, dehydration plants and compressor facilities with
a total rated capacity of 83,200 horsepower. MichCon also owns district
office buildings, service buildings and gas receiving and metering
stations. MichCon occupies an office building in Grand Rapids under a
long-term lease. Portions of these buildings are subleased to affiliates
and others.
B. Citizens owns the following properties, all of which are located in
Michigan.
At December 31, 1999, Citizens' distribution system included 422 miles
of distribution mains, 16 miles of transmission lines, 13,917 service
lines, and 15,592 active meters. Citizens owns all of its properties used
in the conduct of the utility business. Included are a two-story office
building and a one-story service center.
C. Southern Missouri Gas Company (SMGC) owns the following properties, all of
which are located in Missouri.
At December 31, 1999, SMGC's distribution system included 305 miles of
distribution mains, 8,953 service lines, and 7,110 active meters. SMGC owns
124 miles of transmission lines and metering stations that deliver natural
gas to the various cities it serves. SMGC leases its office/service center.
III. PUBLIC UTILITY DISTRIBUTION AND PURCHASE OF NATURAL GAS
A. During the year ended December 31, 1999, MichCon distributed and purchased
the following volumes of natural gas:
1. 178,201,831 thousand cubic feet (Mcf) of natural gas was distributed
at retail within the state of Michigan. Also, 151,715,582 Mcf of
natural gas was distributed at retail under transportation contracts
within the state of Michigan.
2. No volumes of natural gas were distributed at retail outside the state
of Michigan.
3. No volumes of natural gas were distributed at wholesale outside the
state of Michigan.
4. 41,043,230 Mcf of natural gas was purchased from various suppliers in
the state of Kansas, which amounted to $92,326,000; 29,103,862 Mcf of
natural gas was purchased from various suppliers in the state of
Louisiana, which amounted to $67,460,000; and 30,214,000 Mcf of
natural gas was purchased from various suppliers in the state of
Minnesota, which amounted to $65,327,000. These volumes were
transported by interstate pipeline suppliers to points of delivery
within the state of Michigan.
B. During the year ended December 31, 1999, Citizens distributed and purchased
the following volumes of natural gas:
1. 3,076,000 Mcf of natural gas was distributed at retail within the
state of Michigan, and 280,000 Mcf of natural gas was distributed at
retail under transportation contracts within the state of Michigan.
2. No volumes of natural gas were distributed at retail outside the state
of Michigan.
3. No volumes of natural gas were distributed at wholesale outside the
state of Michigan.
4. No volumes of natural gas were purchased outside the state of
Michigan.
C. During the year ended December 31, 1999, SMGC distributed and purchased the
following volumes of natural gas:
1. 866,000 Mcf of natural gas was distributed at retail within the state
of Missouri, and 225,000 Mcf of natural gas was distributed at retail
under transportation contracts within the state of Missouri.
2. No volumes of natural gas were distributed at retail outside the state
of Missouri.
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3. No volumes of natural gas were distributed at wholesale outside the
state of Missouri.
4. 873,000 Mcf of natural gas was purchased from suppliers located in the
state of Oklahoma. The amount of such purchases was $2,021,000. These
volumes were transported by Williams Natural Gas Company to a point of
delivery within the state of Missouri.
IV. INTEREST IN EXEMPT WHOLESALE GENERATORS AND FOREIGN UTILITY COMPANIES
EXEMPT WHOLESALE GENERATORS
A. COBISA-PERSON LIMITED PARTNERSHIP (CPPL)
1. CPPL is a 140 MW gas-fired combustion power plant currently being
developed and constructed in Bernalillo County, New Mexico.
2. MCNIC Person GP, Inc. has a 94% pre-conversion sharing ratio and a 49%
post-conversion sharing ratio of CPPL. MCN Power Company also has a
1% pre- and post-conversion sharing ratio of CPPL. Conversion date is
a function of adjusted after-tax cash flows of CPPL.
3. As of December 31, 1999, MCN does not have an equity investment in
CPPL.
4. CPPL is currently financed with 100% project debt.
5. There are no service, sales or construction contracts between CPPL and
MCN or an affiliate of MCN.
FOREIGN UTILITY COMPANIES
B. BHOTE KOSHI POWER COMPANY PRIVATE LIMITED (BKPC)
1. BKPC is a 36 MW hydroelectric power project currently being developed
and constructed in the Sindhupalchok District of Nepal, at KHA 1-960
Kalimati, Tahachal Kathmandu, Nepal.
2. Panda of Nepal owns 75% of the issued shares of Bhote Koshi Power
Company Private Limited. Panda Bhote Koshi, a Cayman Islands exempted
company, wholly owns Panda of Nepal. MCNIC Nepal Limited owns 100% of
the Class B Capital Stock of Panda Bhote Koshi (giving MCNIC Nepal a
90% ownership interest in Panda Bhote Koshi).
3. As of December 31, 1999, MCN has an $18.0 million equity investment in
BKPC.
4. Capitalization and earnings information is unavailable.
5. There are no service, sales or construction contracts between BKPC and
MCN or an affiliate of MCN.
C. TORRENT POWER LIMITED (TPL). In August 1999, MCN completed the sale of its
40% interest in TPL. TPL holds minority interests in several electric
distribution companies and power generation facilities in the state of
Gujarat, India.
9
<PAGE> 10
EXHIBITS
Exhibit A - Attached hereto as Exhibit A are the unaudited Consolidating
Statements of Operations for the year ended December 31,
1999 and Consolidating Statements of Financial Position as
of December 31, 1999, for MCN Energy Group Inc., MichCon
Holdings, MichCon, MCNEE, Gas Services Level, MCNIC Pipeline
& Processing Company, CoEnergy Trading, MCNIC Oil & Gas and
MCN Financing Companies.
Exhibit B - Attached hereto as Exhibit B is the unaudited Financial Data
Schedule summarizing certain financial information for MCN
Energy Group Inc.
Exhibit C - Corporate Structure, Exempt Wholesale Generators and Foreign
Utility Companies
10
<PAGE> 11
SIGNATURES
The above-named claimant has caused this statement to be duly executed on
its behalf by its authorized officer on THIS 10TH DAY OF MARCH, 2000.
MCN ENERGY GROUP INC.
By: /s/ Gerard Kabzinski
-----------------------------
Gerard Kabzinski
Vice President and Controller
CORPORATE SEAL:
Attest:
/s/ Daniel L. Schiffer
-----------------------
Daniel L. Schiffer
Senior Vice President,
General Counsel and Secretary
Name, title, and address of officer to whom notices and correspondence
concerning this statement should be addressed:
Daniel L. Schiffer
Senior Vice President,
General Counsel and Secretary
MCN Energy Group Inc.
500 Griswold Street
Detroit, Michigan 48226
11
<PAGE> 12
MCN ENERGY GROUP INC. EXHIBIT A
CONSOLIDATING STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1999
(IN THOUSANDS)
<TABLE>
<CAPTION>
MICHCON FINANCING
MCN HOLDINGS CITIZENS COMPANIES
--------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATING REVENUES
Gas sales $ -- $ 908,397 $ 16,183 $ --
Transportation -- 161,339 323 --
Other -- 84,308 50 --
--------------------------------------------------------
-- 1,154,044 16,556 --
--------------------------------------------------------
OPERATING EXPENSES
Cost of sales -- 498,491 8,817 --
Operation and maintenance (14,042) 275,116 3,303 --
Depreciation, depletion and amortization 1,899 99,234 880 --
Property and other taxes 955 45,255 611 --
Property write-downs and restructuring charges -- -- -- --
Merger costs -- 25,429 371 --
--------------------------------------------------------
(11,188) 943,525 13,982 --
--------------------------------------------------------
OPERATING INCOME (LOSS) 11,188 210,519 2,574 --
--------------------------------------------------------
EQUITY IN EARNINGS OF JOINT VENTURES AND SUBSIDIARIES (30,012) 1,976 -- --
--------------------------------------------------------
OTHER INCOME AND (DEDUCTIONS)
Interest income 451 2,237 72 41,194
Interest on long-term debt 808 (47,265) -- --
Other interest expense (51,939) (8,705) (438) --
Dividends on preferred securities of subsidiaries 40,386 -- -- --
Loss on sale of E & P properties -- -- -- --
Investment and contract losses -- -- -- --
Minority interest -- (1,020) -- --
Other 1,506 (1,420) 1 --
--------------------------------------------------------
(8,788) (56,173) (365) 41,194
--------------------------------------------------------
INCOME (LOSS) BEFORE INCOME TAXES (27,612) 156,322 2,209 41,194
INCOME TAX PROVISION (BENEFIT) 3,236 54,250 826 --
--------------------------------------------------------
INCOME (LOSS) BEFORE CUMULATIVE EFFECT
OF ACCOUNTING CHANGE (30,848) 102,072 1,383 41,194
CUMULATIVE EFFECT OF ACCOUNTING CHANGE,
NET OF TAXES -- -- -- --
--------------------------------------------------------
NET INCOME (LOSS) $ (30,848) $ 102,072 $ 1,383 $ 41,194
========================================================
<CAPTION>
MCNEE ELIMINATIONS MCN
CONSOL. AND RECLASSES CONSOL.
--------------------------------------------------------
<S> <C> <C> <C>
OPERATING REVENUES
Gas sales $ 1,313,505 $ 26 $ 2,238,111
Transportation 489 (10,935) 151,216
Other 10,695 (3,312) 91,741
--------------------------------------------------------
1,324,689 (14,221) 2,481,068
--------------------------------------------------------
OPERATING EXPENSES
Cost of sales 1,118,593 (10,909) 1,614,992
Operation and maintenance 150,158 (3,312) 411,223
Depreciation, depletion and amortization 62,626 (1) 164,638
Property and other taxes 10,346 30 57,197
Property write-downs and restructuring charges 59,335 -- 59,335
Merger costs 9,055 -- 34,855
---------------------------------------------------------
1,410,113 (14,192) 2,342,240
---------------------------------------------------------
OPERATING INCOME (LOSS) (85,424) (29) 138,828
---------------------------------------------------------
EQUITY IN EARNINGS OF JOINT VENTURES 50,428 29,994 52,386
AND SUBSIDIARIES ---------------------------------------------------------
OTHER INCOME AND (DEDUCTIONS)
Interest income 4,238 (41,617) 6,575
Interest on long-term debt (42,974) -- (89,431)
Other interest expense (10,876) 41,616 (30,342)
Dividends on preferred securities of subsidiaries (40,386) (40,139) (40,139)
Loss on sale of E & P properties (81,989) -- (81,989)
Investment and contract losses (9,903) -- (9,903)
Minority interest (592) -- (1,612)
Other 18,124 (263) 17,948
---------------------------------------------------------
(164,358) (40,403) (228,893)
---------------------------------------------------------
INCOME (LOSS) BEFORE INCOME TAXES (199,354) (10,438) (37,679)
INCOME TAX PROVISION (BENEFIT) (68,015) -- (9,703)
---------------------------------------------------------
INCOME (LOSS) BEFORE CUMULATIVE EFFECT
OF ACCOUNTING CHANGE (131,339) (10,438) (27,976)
CUMULATIVE EFFECT OF ACCOUNTING CHANGE,
NET OF TAXES (2,872) -- (2,872)
---------------------------------------------------------
NET INCOME (LOSS) $ (134,211) $ (10,438) $ (30,848)
=========================================================
</TABLE>
1
<PAGE> 13
MCN ENERGY GROUP INC.
CONSOLIDATING STATEMENT OF FINANCIAL POSITION
AS OF DECEMBER 31, 1999
(IN THOUSANDS)
<TABLE>
<CAPTION>
MICHCON FINANCING
MCN HOLDINGS CITIZENS COMPANIES
----------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash and cash equivalents
at cost (which approximates market value) $ 6,727 $ 10,103 $ 38 $ -
Accounts receivable 20,550 167,717 1,284 -
Allowance for doubtful accounts - (17,777) (76) -
Accrued unbilled revenues - 98,866 1,573 -
Gas in inventory - 74,150 - -
Property taxes assessed applicable to
future periods 243 60,589 34 -
Other 6,283 34,832 1,605 1,136
----------------------------------------------------------------------
33,803 428,480 4,458 1,136
----------------------------------------------------------------------
DEFERRED CHARGES AND OTHER ASSETS
Deferred income taxes - - 280 -
Investments in debt and equity securities - 67,210 - -
Other (535) 249,675 5,381 423,007
----------------------------------------------------------------------
(535) 316,885 5,661 423,007
----------------------------------------------------------------------
INVESTMENTS IN AND ADVANCES TO JOINT
VENTURES AND SUBSIDIARIES 1,425,755 19,115 - -
----------------------------------------------------------------------
PROPERTY, PLANT AND EQUIPMENT, AT COST 16,227 2,991,382 24,849 -
Less: Accumulated depreciation and depletion 7,172 1,464,673 10,008 -
----------------------------------------------------------------------
9,055 1,526,709 14,841 -
----------------------------------------------------------------------
$1,468,078 $ 2,291,189 $ 24,960 $ 424,143
======================================================================
<CAPTION>
MCNEE ELIMINATIONS MCN
CONSOL. AND RECLASSES CONSOL.
-------------------------------------------------
<S> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash and cash equivalents
at cost (which approximates market value) $ 49,191 $ (6,693) $ 59,366
Accounts receivable 404,299 (26,441) 567,409
Allowance for doubtful accounts (2,767) (100) (20,720)
Accrued unbilled revenues - - 100,439
Gas in inventory 106,223 (1) 180,372
Property taxes assessed applicable to
future periods 1,785 - 62,651
Other
61,751 (21,786) 83,821
-------------------------------------------------
620,482 (55,021) 1,033,338
-------------------------------------------------
DEFERRED CHARGES AND OTHER ASSETS
Deferred income taxes 114,970 (100,485) 14,765
Investments in debt and equity securities 4,242 625 72,077
Other
74,554 (412,438) 339,644
-------------------------------------------------
193,766 (512,298) 426,486
-------------------------------------------------
INVESTMENTS IN AND ADVANCES TO JOINT
VENTURES AND SUBSIDIARIES 741,960 (1,422,858) 763,972
-------------------------------------------------
PROPERTY, PLANT AND EQUIPMENT, AT COST 680,011 1 3,712,470
Less: Accumulated depreciation and depletion 215,359 - 1,697,212
-------------------------------------------------
464,652 1 2,015,258
-------------------------------------------------
$ 2,020,860 $(1,990,176) $4,239,054
=================================================
</TABLE>
2
<PAGE> 14
MCN ENERGY GROUP INC.
CONSOLIDATING STATEMENT OF FINANCIAL POSITION
AS OF DECEMBER 31, 1999
(IN THOUSANDS)
<TABLE>
<CAPTION>
MICHCON FINANCING
MCN HOLDINGS CITIZENS COMPANIES
-----------------------------------------------------------------------
<S> <C> <C> <C> <C>
LIABILITIES AND CAPITALIZATION
CURRENT LIABILITIES
Accounts payable $ 8,652 $ 95,199 $ 1,535 $ -
Notes payable 200,000 238,507 6,399 -
Current portion of long-term debt and capital
lease obligations - 27,984 - -
Federal income, property and other taxes payable (4,614) 70,431 322 -
Customer deposits - 17,698 9 -
Other 18,513 68,027 886 1,136
-----------------------------------------------------------------------
222,551 517,846 9,151 1,136
-----------------------------------------------------------------------
DEFERRED CREDITS AND OTHER LIABILITIES
Deferred income taxes (6,849) 105,346 1,800 -
Unamortized investment tax credit - 27,778 244 -
Minority interest - 8,716 - -
Other 433,713 207,703 3,887 -
-----------------------------------------------------------------------
426,864 349,543 5,931 -
-----------------------------------------------------------------------
CAPITALIZATION
Long-term debt, including capital lease obligations - 680,909 - -
Redeemable preferred securities of subsidiaries - - - 402,922
Common shareholders' equity 818,663 742,891 9,878 20,085
-----------------------------------------------------------------------
818,663 1,423,800 9,878 423,007
-----------------------------------------------------------------------
$1,468,078 $2,291,189 $ 24,960 $ 424,143
=======================================================================
<CAPTION>
MCNEE ELIMINATIONS MCN
CONSOL. AND RECLASSES CONSOL.
------------------------------------------------
<S> <C> <C> <C>
LIABILITIES AND CAPITALIZATION
CURRENT LIABILITIES
Accounts payable $ 239,094 $ (48,341) $ 296,139
Notes payable 155,383 17,466 617,755
Current portion of long-term debt and capital
lease obligations 118 - 28,102
Federal income, property and other taxes payable 3,428 (1,067) 68,500
Customer deposits - - 17,707
Other 95,170 (11,925) 171,807
------------------------------------------------
493,193 (43,867) 1,200,010
------------------------------------------------
DEFERRED CREDITS AND OTHER LIABILITIES
Deferred income taxes 17,871 (118,168) -
Unamortized investment tax credit - - 28,022
Minority interest 2,380 - 11,096
Other 80,730 (405,154) 320,879
------------------------------------------------
100,981 (523,322) 359,997
------------------------------------------------
CAPITALIZATION
Long-term debt, including capital lease obligations 776,708 - 1,457,617
Redeemable preferred securities of subsidiaries - - 402,922
Common shareholders' equity 649,978 (1,422,987) 818,508
------------------------------------------------
1,426,686 (1,422,987) 2,679,047
------------------------------------------------
$2,020,860 $(1,990,176) $ 4,239,054
================================================
</TABLE>
3
<PAGE> 15
MCN ENERGY GROUP INC.
MichCon Holdings, Inc.
Consolidating Statement of Operations
For the Year Ended December 31, 1999
(in Thousands)
<TABLE>
<CAPTION>
MICHCON MICHCON MICHCON
HOLDINGS CONSOLIDATED ENTERPRISES
------------------------------------------------
<S> <C> <C> <C>
OPERATING REVENUES
Gas sales $ - $ 907,471 $ 926
Transportation - 165,245 -
Other - 63,023 17,451
------------------------------------------------
- 1,135,739 18,377
------------------------------------------------
OPERATING EXPENSES
Cost of sales - 483,925 14,613
Operation and maintenance - 266,104 9,012
Depreciation, depletion and amortization - 98,879 355
Property and other taxes - 45,230 25
Merger costs - 25,429 -
------------------------------------------------
- 919,567 24,005
------------------------------------------------
OPERATING INCOME (LOSS) - 216,172 (5,628)
------------------------------------------------
EQUITY IN EARNINGS (LOSSES) OF JOINT VENTURES AND SUBSIDIARIES 102,072 1,976 -
------------------------------------------------
OTHER INCOME AND (DEDUCTIONS)
Interest income - 2,604 44
Interest on long-term debt - (47,265) -
Other interest expense - (8,626) (457)
Minority interest - (1,020) -
Other - (1,016) (462)
------------------------------------------------
- (55,323) (875)
------------------------------------------------
INCOME (LOSS) BEFORE INCOME TAXES 102,072 162,825 (6,503)
INCOME TAX PROVISION (BENEFIT) - 56,489 (2,239)
------------------------------------------------
NET INCOME (LOSS) $ 102,072 $ 106,336 $ (4,264)
================================================
<CAPTION>
MICHCON
ELIMINATIONS HOLDINGS
AND RECLASSES CONSOL.
--------------------------------------
<S> <C> <C>
OPERATING REVENUES
Gas sales $ - $ 908,397
Transportation (3,906) 161,339
Other 3,834 84,308
--------------------------------------
(72) 1,154,044
--------------------------------------
OPERATING EXPENSES
Cost of sales (47) 498,491
Operation and maintenance - 275,116
Depreciation, depletion and amortization - 99,234
Property and other taxes - 45,255
Merger costs - 25,429
--------------------------------------
(47) 943,525
--------------------------------------
OPERATING INCOME (LOSS) (25) 210,519
--------------------------------------
EQUITY IN EARNINGS (LOSSES) OF JOINT VENTURES AND SUBSIDIARIES (102,072) 1,976
--------------------------------------
OTHER INCOME AND (DEDUCTIONS)
Interest income (411) 2,237
Interest on long-term debt - (47,265)
Other interest expense 378 (8,705)
Minority interest - (1,020)
Other 58 (1,420)
--------------------------------------
25 (56,173)
--------------------------------------
INCOME (LOSS) BEFORE INCOME TAXES (102,072) 156,322
INCOME TAX PROVISION (BENEFIT) - 54,250
--------------------------------------
NET INCOME (LOSS) $ (102,072) $ 102,072
======================================
</TABLE>
4
<PAGE> 16
MCN ENERGY GROUP INC.
MICHCON HOLDINGS, INC.
CONSOLIDATING STATEMENT OF FINANCIAL POSITION
AS OF DECEMBER 31, 1999
(IN THOUSANDS)
<TABLE>
<CAPTION>
MICHCON MICHCON MICHCON ELIMINATIONS MICHCON HOLDINGS
HOLDINGS CONSOLIDATED ENTERPRISES AND RECLASSES CONSOL.
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash and cash equivalents
at cost (which approximates market value) $ 7 $ 9,705 $ 392 $ (1) $ 10,103
Accounts receivable 226 165,189 2,947 (645) 167,717
Allowance for doubtful accounts - (17,777) - - (17,777)
Unbilled revenue - 98,866 - - 98,866
Gas in inventory - 74,150 - - 74,150
Property taxes assessed applicable to
future periods - 60,589 - - 60,589
Other - 31,594 11,293 (8,055) 34,832
--------------------------------------------------------------------------------
233 422,316 14,632 (8,701) 428,480
--------------------------------------------------------------------------------
DEFERRED CHARGES AND OTHER ASSETS
Investment in debt and equity securities - 67,210 - - 67,210
Other - 249,475 - 200 249,675
--------------------------------------------------------------------------------
- 316,685 - 200 316,885
--------------------------------------------------------------------------------
INVESTMENTS IN AND ADVANCES TO JOINT
VENTURES AND SUBSIDIARIES 742,658 19,115 - (742,658) 19,115
-------------------------------------------------------------------------------
PROPERTY, PLANT AND EQUIPMENT, AT COST - 2,988,318 3,065 (1) 2,991,382
Less: Accumulated depreciation and depletion - 1,463,706 967 - 1,464,673
--------------------------------------------------------------------------------
- 1,524,612 2,098 (1) 1,526,709
-------------------------------------------------------------------------------
$ 742,891 $ 2,282,728 $ 16,730 $ (751,160) $ 2,291,189
================================================================================
</TABLE>
5
<PAGE> 17
MCN ENERGY GROUP INC.
MICHCON HOLDINGS, INC.
CONSOLIDATING STATEMENT OF FINANCIAL POSITION
AS OF DECEMBER 31, 1999
(IN THOUSANDS)
<TABLE>
<CAPTION>
MICHCON MICHCON MICHCON ELIMINATIONS MICHCON HOLDINGS
HOLDINGS CONSOLIDATED ENTERPRISES AND RECLASSES CONSOLIDATED
-----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
LIABILITIES AND CAPITALIZATION
CURRENT LIABILITIES
Accounts payable $ - $ 93,549 $ 1,814 $ (164) $ 95,199
Notes payable - 237,785 8,667 (7,945) 238,507
Current portion of long-term debt and capital lease
obligations - 27,984 - - 27,984
Federal income, property and other taxes payable - 71,415 (984) - 70,431
Customer deposits - 17,698 - - 17,698
Other - 68,339 81 (393) 68,027
-----------------------------------------------------------------------
- 516,770 9,578 (8,502) 517,846
-----------------------------------------------------------------------
DEFERRED CREDITS AND OTHER LIABILITIES
Deferred income taxes - 105,351 (4) (1) 105,346
Unamortized investment tax credit - 27,778 - - 27,778
Minority interest - 8,716 - - 8,716
Other - 207,702 - 1 207,703
-----------------------------------------------------------------------
- 349,547 (4) - 349,543
-----------------------------------------------------------------------
CAPITALIZATION
Long-term debt, including capital lease obligations - 680,909 - - 680,909
Common shareholders' equity 742,891 735,502 7,156 (742,658) 742,891
-----------------------------------------------------------------------
742,891 1,416,411 7,156 (742,658) 1,423,800
-----------------------------------------------------------------------
$ 742,891 $ 2,282,728 $ 16,730 $ (751,160) $ 2,291,189
=======================================================================
</TABLE>
6
<PAGE> 18
MCN ENERGY GROUP INC.
MICHIGAN CONSOLIDATED GAS COMPANY
CONSOLIDATING STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1999
(IN THOUSANDS)
<TABLE>
<CAPTION>
MICHCON MICHCON
MICHCON DEVELOPMENT PIPELINE
-------------------------------------------
<S> <C> <C> <C>
OPERATING REVENUES
Gas sales $ 907,411 $ -- $ 136
Transportation 137,978 -- 24,120
Other 51,157 -- 15,764
-----------------------------------------
1,096,546 -- 40,020
-----------------------------------------
OPERATING EXPENSES
Cost of sales 484,237 -- --
Operation and maintenance 272,327 -- 19,587
Depreciation, depletion and amortization 93,004 -- 5,875
Property and other taxes 44,209 -- 1,051
Merger costs -- -- --
-----------------------------------------
893,777 -- 26,513
-----------------------------------------
OPERATING INCOME (LOSS) 202,769 -- 13,507
-----------------------------------------
EQUITY IN EARNINGS (LOSSES) OF JOINT VENTURES AND SUBSIDIARIES 7,539 (439) --
-----------------------------------------
OTHER INCOME AND (DEDUCTIONS)
Interest income 540 154 935
Interest on long-term debt (44,796) -- (2,469)
Other interest expense (7,482) -- (194)
Minority interest -- -- (1,020)
Other 163 (89) (1,057)
-----------------------------------------
(51,575) 65 (3,805)
-----------------------------------------
INCOME (LOSS) BEFORE INCOME TAXES 158,733 (374) 9,702
INCOME TAX PROVISION (BENEFIT) 52,397 (131) 3,417
-----------------------------------------
NET INCOME (LOSS) $ 106,336 $ (243) $ 6,285
=========================================
</TABLE>
<TABLE>
<CAPTION>
BLUE LAKE ELIMINATIONS MICHCON
HOLDING CO. AND RECLASSES CONSOLIDATED
----------------------------------------------
<S> <C> <C> <C>
OPERATING REVENUES
Gas sales $ -- $ (76) $ 907,471
Transportation -- 3,147 165,245
Other -- (3,898) 63,023
-----------------------------------------
-- (827) 1,135,739
-----------------------------------------
OPERATING EXPENSES
Cost of sales -- (312) 483,925
Operation and maintenance -- (25,810) 266,104
Depreciation, depletion and amortization -- -- 98,879
Property and other taxes -- (30) 45,230
Merger costs -- 25,429 25,429
-----------------------------------------
-- (723) 919,567
-----------------------------------------
OPERATING INCOME (LOSS) -- (104) $ 216,172
-----------------------------------------
EQUITY IN EARNINGS (LOSSES) OF JOINT VENTURES AND SUBSIDIARIES 2,415 (7,539) 1,976
------------------------------------------
OTHER INCOME AND (DEDUCTIONS)
Interest income -- 975 2,604
Interest on long-term debt -- -- (47,265)
Other interest expense -- (950) (8,626)
Minority interest -- -- (1,020)
Other (112) 79 (1,016)
-----------------------------------------
(112) 104 (55,323)
-----------------------------------------
INCOME (LOSS) BEFORE INCOME TAXES 2,303 (7,539) 162,825
INCOME TAX PROVISION (BENEFIT) 806 -- 56,489
-----------------------------------------
NET INCOME (LOSS) $ 1,497 $ (7,539) $ 106,336
=========================================
</TABLE>
7
<PAGE> 19
MCN ENERGY GROUP INC.
MICHIGAN CONSOLIDATED GAS COMPANY
CONSOLIDATING STATEMENT OF FINANCIAL POSITION
AS OF DECEMBER 31, 1999
(IN THOUSANDS)
<TABLE>
<CAPTION>
MICHCON MICHCON
MICHCON DEVELOPMENT PIPELINE
-------------------------------------------------------
<S> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash and cash equivalents
at cost (which approximates market value) $ 3,704 $ 97 $ 5,895
Accounts receivable 158,311 102 9,172
Allowance for doubtful accounts (17,877) - -
Unbilled revenue 98,866 - -
Gas in inventory 74,150 - -
Property taxes assessed applicable to
future periods 60,589 - -
Other 27,123 1,082 13,007
-------------------------------------------------------
404,866 1,281 28,074
-------------------------------------------------------
DEFERRED CHARGES AND OTHER ASSETS
Investment in debt and equity securities 625 - -
Other 453,202 269 796
-------------------------------------------------------
453,827 269 796
-------------------------------------------------------
INVESTMENTS IN AND ADVANCES TO JOINT
VENTURES AND SUBSIDIARIES 52,591 9,973 -
-------------------------------------------------------
PROPERTY, PLANT AND EQUIPMENT, AT COST 2,886,650 1,931 99,736
Less: Accumulated depreciation and depletion 1,434,510 122 29,074
-------------------------------------------------------
1,452,140 1,809 70,662
-------------------------------------------------------
$ 2,363,424 $ 13,332 $ 99,532
=======================================================
<CAPTION>
BLUE LAKE ELIMINATIONS MICHCON
HOLDING CO. AND RECLASSES CONSOLIDATED
---------------------------------------------------
<S> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash and cash equivalents
at cost (which approximates market value) $ 8 $ 1 $ 9,705
Accounts receivable - (2,396) 165,189
Allowance for doubtful accounts - 100 (17,777)
Unbilled revenue - - 98,866
Gas in inventory - - 74,150
Property taxes assessed applicable to
future periods - - 60,589
Other - (9,618) 31,594
---------------------------------------------------
8 (11,913) 422,316
---------------------------------------------------
DEFERRED CHARGES AND OTHER ASSETS
Investment in debt and equity securities - 66,585 67,210
Other 117 (204,909) 249,475
---------------------------------------------------
117 (138,324) 316,685
---------------------------------------------------
INVESTMENTS IN AND ADVANCES TO JOINT
VENTURES AND SUBSIDIARIES 9,142 (52,591) 19,115
---------------------------------------------------
PROPERTY, PLANT AND EQUIPMENT, AT COST - 1 2,988,318
Less: Accumulated depreciation and depletion - - 1,463,706
---------------------------------------------------
- 1 1,524,612
---------------------------------------------------
$ 9,267 $ (202,827) $2,282,728
===================================================
</TABLE>
8
<PAGE> 20
MCN ENERGY GROUP INC.
MICHIGAN CONSOLIDATED GAS COMPANY
CONSOLIDATING STATEMENT OF FINANCIAL POSITION
AS OF DECEMBER 31, 1999
(IN THOUSANDS)
<TABLE>
<CAPTION>
MICHCON MICHCON
MICHCON DEVELOPMENT PIPELINE
-------------------------------------------------------
<S> <C> <C> <C>
LIABILITIES AND CAPITALIZATION
CURRENT LIABILITIES
Accounts payable $ 85,150 $ 40 $ 10,326
Notes payable 251,211 - 5,258
Current portion of long-term debt and capital lease
obligations 1,024 - -
Federal income, property and other taxes payable 70,608 327 456
Other 89,331 - 6,592
-------------------------------------------------------
497,324 367 22,632
-------------------------------------------------------
DEFERRED CREDITS AND OTHER LIABILITIES
Accumulated deferred income taxes 402,413 2,330 5,947
Unamortized investment tax credit - - -
Minority interest - - 8,716
Other 74,536 670 -
-------------------------------------------------------
476,949 3,000 14,663
-------------------------------------------------------
CAPITALIZATION
Long-term debt, including capital lease obligations 653,649 - 27,260
Common shareholders' equity 735,502 9,965 34,977
-------------------------------------------------------
1,389,151 9,965 62,237
-------------------------------------------------------
$ 2,363,424 $ 13,332 $ 99,532
=======================================================
<CAPTION>
BLUE LAKE ELIMINATIONS MICHCON
HOLDING CO. AND RECLASSES CONSOLIDATED
-------------------------------------------------------
<S> <C> <C> <C>
LIABILITIES AND CAPITALIZATION
CURRENT LIABILITIES
Accounts payable $ 68 $ (2,036) $ 93,549
Notes payable - (18,684) 237,785
Current portion of long-term debt and capital lease
obligations - 26,960 27,984
Federal income, property and other taxes payable 24 - 71,415
Other - (9,885) 86,037
-------------------------------------------------------
92 (3,645) 516,770
-------------------------------------------------------
DEFERRED CREDITS AND OTHER LIABILITIES
Accumulated deferred income taxes 1,526 (306,865) 105,351
Unamortized investment tax credit - 27,778 27,778
Minority interest - - 8,716
Other - 132,496 207,702
-------------------------------------------------------
1,526 (146,591) 349,547
-------------------------------------------------------
CAPITALIZATION
Long-term debt, including capital lease obligations - - 680,909
Common shareholders' equity 7,649 (52,591) 735,502
-------------------------------------------------------
7,649 (52,591) 1,416,411
-------------------------------------------------------
$ 9,267 $ (202,827) $ 2,282,728
=======================================================
</TABLE>
9
<PAGE> 21
MCN ENERGY GROUP INC.
MCN ENERGY ENTERPRISES
CONSOLIDATING STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1999
(IN THOUSANDS)
<TABLE>
<CAPTION>
COMBUSTION
MCNEE BRIDGEWATER CONCEPTS
------------------------------------------------------
<S> <C> <C> <C>
OPERATING REVENUES
Gas and oil sales $ - $ - $ -
Transportation - - -
Other - - -
------------------------------------------------------
- - -
------------------------------------------------------
OPERATING EXPENSES
Cost of sales - - -
Operation and maintenance 19,803 1 -
Depreciation, depletion and amortization 110 - -
Property and other taxes 816 1 -
Unusual charges - - -
Merger costs - - -
------------------------------------------------------
20,729 2 -
------------------------------------------------------
OPERATING INCOME (LOSS) (20,729) (2) -
------------------------------------------------------
EQUITY IN EARNINGS OF JOINT VENTURES AND SUBSIDIARIES (88,685) - -
------------------------------------------------------
OTHER INCOME AND (DEDUCTIONS)
Interest income 49,813 - -
Interest on long-term debt (48,850) - -
Other interest expense (8,705) - -
Loss on sale of E & P properties (81,989) - -
Investment and contract losses (9,903) - -
Minority interest - - -
Other 50,196 - -
------------------------------------------------------
(49,438) - -
------------------------------------------------------
INCOME (LOSS) BEFORE INCOME TAXES (158,852) (2) -
INCOME TAX PROVISION (BENEFIT) (24,641) (2) -
------------------------------------------------------
LOSS BEFORE CUMULATIVE EFFECT OF
ACCOUNTING CHANGE (134,211) - -
CUMULATIVE EFFECT OF ACCOUNTING CHANGE - - -
------------------------------------------------------
NET INCOME (LOSS) $ (134,211) $ - $ -
======================================================
<CAPTION>
TOTAL
GAS ELIMINATIONS MCNEE
SERVICES AND RECLASSES CONSOL.
--------------------------------------------------
<S> <C> <C> <C>
OPERATING REVENUES
Gas and oil sales $ 1,313,505 $ - $ 1,313,505
Transportation 489 - 489
Other 10,695 - 10,695
---------------------------------------------------
1,324,689 - 1,324,689
---------------------------------------------------
OPERATING EXPENSES
Cost of sales 1,118,593 - 1,118,593
Operation and maintenance 146,284 (15,930) 150,158
Depreciation, depletion and amortization 62,516 - 62,626
Property and other taxes 9,529 - 10,346
Unusual charges 52,460 6,875 59,335
Merger costs - 9,055 9,055
---------------------------------------------------
1,389,382 - 1,410,113
---------------------------------------------------
OPERATING INCOME (LOSS) (64,693) - (85,424)
---------------------------------------------------
EQUITY IN EARNINGS OF JOINT VENTURES AND SUBSIDIARIES 49,303 89,810 50,428
---------------------------------------------------
OTHER INCOME AND (DEDUCTIONS)
Interest income 3,828 (49,403) 4,238
Interest on long-term debt 5,876 - (42,974)
Other interest expense (51,574) 9,017 (51,262)
Loss on sale of E & P properties - - (81,989)
Investment and contract losses - - (9,903)
Minority interest (592) - (592)
Other (75,751) 43,679 18,124
---------------------------------------------------
(118,213) 3,293 (164,358)
---------------------------------------------------
INCOME (LOSS) BEFORE INCOME TAXES (133,603) 93,103 (199,354)
INCOME TAX PROVISION (BENEFIT) (44,918) 1,546 (68,015)
---------------------------------------------------
LOSS BEFORE CUMULATIVE EFFECT OF
ACCOUNTING CHANGE (88,685) 91,557 (131,339)
CUMULATIVE EFFECT OF ACCOUNTING CHANGE - (2,872) (2,872)
---------------------------------------------------
NET INCOME (LOSS) $ (88,685) $ 88,685 $ (134,211)
===================================================
</TABLE>
10
<PAGE> 22
MCN ENERGY GROUP INC.
MCN ENERGY ENTERPRISES
CONSOLIDATING STATEMENT OF FINANCIAL POSITION
AS OF DECEMBER 31, 1999
(IN THOUSANDS)
<TABLE>
<CAPTION>
COMBUSTION
MCNEE BRIDGEWATER CONCEPTS
------------------------------------------------------
<S> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash and cash equivalents
at cost (which approximates market value) $ 758,549 $ 43 $ 20
Accounts receivable 4,092 - -
Allowance for doubtful accounts - - -
Gas in inventory - - -
Property taxes assessed applicable to
future periods - 5 -
Other 7,123 - -
------------------------------------------------------
769,764 48 20
------------------------------------------------------
DEFERRED CHARGES AND OTHER ASSETS
Deferred income taxes - 78 3
Investment in debt and equity securities - - -
Other 29,760 - 61
------------------------------------------------------
29,760 78 64
------------------------------------------------------
INVESTMENTS IN AND ADVANCES TO JOINT
VENTURES AND SUBSIDIARIES 816,942 - -
------------------------------------------------------
PROPERTY, PLANT AND EQUIPMENT, AT COST 450 985 -
Less: Accumulated depreciation and depletion 123 - -
------------------------------------------------------
327 985 -
------------------------------------------------------
$ 1,616,793 $ 1,111 $ 84
======================================================
<CAPTION>
TOTAL
GAS ELIMINATIONS MCNEE
SERVICES AND RECLASSES CONSOL.
---------------------------------------------------
<S> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash and cash equivalents
at cost (which approximates market value) $ 27,847 $ (737,268) $ 49,191
Accounts receivable 405,920 (5,713) 404,299
Allowance for doubtful accounts (2,767) - (2,767)
Gas in inventory 106,223 - 106,223
Property taxes assessed applicable to
future periods 1,780 - 1,785
Other (6,368) 60,996 61,751
---------------------------------------------------
532,635 (681,985) 620,482
---------------------------------------------------
DEFERRED CHARGES AND OTHER ASSETS
Deferred income taxes 86,081 28,808 114,970
Investment in debt and equity securities 4,242 - 4,242
Other 74,566 (29,833) 74,554
---------------------------------------------------
164,889 (1,025) 193,766
---------------------------------------------------
INVESTMENTS IN AND ADVANCES TO JOINT
VENTURES AND SUBSIDIARIES 738,875 (813,857) 741,960
---------------------------------------------------
PROPERTY, PLANT AND EQUIPMENT, AT COST 678,576 - 680,011
Less: Accumulated depreciation and depletion 215,236 - 215,359
---------------------------------------------------
463,340 - 464,652
---------------------------------------------------
$ 1,899,739 $ (1,496,867) $ 2,020,860
===================================================
</TABLE>
11
<PAGE> 23
MCN ENERGY GROUP INC.
MCN ENERGY ENTERPRISES
CONSOLIDATING STATEMENT OF FINANCIAL POSITION
AS OF DECEMBER 31, 1999
(IN THOUSANDS)
<TABLE>
<CAPTION>
TOTAL
COMBUSTION GAS
MCNEE BRIDGEWATER CONCEPTS SERVICES
--------------------------------------------------------------
<S> <C> <C> <C> <C>
LIABILITIES AND CAPITALIZATION
CURRENT LIABILITIES
Accounts payable $ 3,050 $ 1 $ - $ 241,752
Notes payable 159,564 - - 732,367
Current portion of long-term debt and capital lease
obligations - - - 118
Federal income, property and other taxes payable (8,578) (194) 25 (73,041)
Other 22,386 - - 55,813
--------------------------------------------------------------
176,422 (193) 25 957,009
--------------------------------------------------------------
DEFERRED CREDITS AND OTHER LIABILITIES
Deferred income taxes 1,741 218 (5) 15,916
Minority interest - - - 2,380
Other 12,386 - 37 111,286
--------------------------------------------------------------
14,127 218 32 129,582
--------------------------------------------------------------
CAPITALIZATION
Long-term debt, including capital lease obligations 776,110 - - 597
Common shareholders' equity 650,134 1,086 27 812,551
--------------------------------------------------------------
1,426,244 1,086 27 813,148
--------------------------------------------------------------
$ 1,616,793 $ 1,111 $ 84 $ 1,899,739
==============================================================
<CAPTION>
ELIMINATIONS MCNEE
AND RECLASSES CONSOL.
-----------------------------------------------
<S> <C> <C>
LIABILITIES AND CAPITALIZATION
CURRENT LIABILITIES
Accounts payable $ (5,710) $ 239,094
Notes payable (736,548) 155,383
Current portion of long-term debt and capital lease
obligations - 118
Federal income, property and other taxes payable 85,217 3,428
Other 16,971 95,170
-----------------------------------------------
(640,070) 493,193
-----------------------------------------------
DEFERRED CREDITS AND OTHER LIABILITIES
Deferred income taxes 1 17,871
Minority interest - 2,380
Other (42,979) 80,730
-----------------------------------------------
(42,978) 100,981
-----------------------------------------------
CAPITALIZATION
Long-term debt, including capital lease obligations 1 776,708
Common shareholders' equity (813,820) 649,978
-----------------------------------------------
(813,819) 1,426,686
-----------------------------------------------
$ (1,496,867) $ 2,020,860
===============================================
</TABLE>
12
<PAGE> 24
MCN ENERGY GROUP INC.
GAS SERVICES
CONSOLIDATING STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1999
(IN THOUSANDS)
<TABLE>
<CAPTION>
CONSOLIDATED MCNIC CONSOLIDATED
COENERGY COENERGY COENERGY GAS MCN
CANADIAN TRADING SUPPLY STORAGE CO. POWER CO.
----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
OPERATING REVENUES
Gas and oil sales $ - $ 1,162,169 $ 99,604 $ 6 $ 51,914
Transportation - (2) - - -
Other - (120) - 5,845 293
--------------------------------------------------------------------------
- 1,162,047 99,604 5,851 52,207
--------------------------------------------------------------------------
OPERATING EXPENSES
Cost of sales - 1,133,373 89,420 5 47,859
Operation and maintenance 77 48,660 3 4,124 8,048
Depreciation, depletion and amortization - 2,015 - 1 76
Property and other taxes 3 107 135 345 87
Property write-downs and restructuring charges - - - - -
--------------------------------------------------------------------------
80 1,184,155 89,558 4,475 56,070
--------------------------------------------------------------------------
OPERATING INCOME (LOSS) (80) (22,108) 10,046 1,376 (3,863)
--------------------------------------------------------------------------
EQUITY IN EARNINGS OF JOINT VENTURES AND SUBSIDIARIES - (2,857) - 1,923 26,330
--------------------------------------------------------------------------
OTHER INCOME AND (DEDUCTIONS)
Interest income 67 522 - 514 85
Interest on long-term debt - - - - 1,919
Other interest expense - (8,151) (854) (225) (2,318)
Investment losses - - - - -
Minority interest - - - - -
Other (1) (2,514) - (120) (669)
--------------------------------------------------------------------------
66 (10,143) (854) 169 (983)
--------------------------------------------------------------------------
INCOME (LOSS) BEFORE INCOME TAXES (14) (35,108) 9,192 3,468 21,484
INCOME TAX PROVISION (BENEFIT) (6) (12,225) 3,217 1,214 7,504
--------------------------------------------------------------------------
NET INCOME (LOSS) $ (8) $ (22,883) $ 5,975 $ 2,254 $ 13,980
===========================================================================
<CAPTION>
CONSOLIDATED
MCNIC
CONSOLIDATED CONSOLIDATED PIPELINE & CONSOLIDATED
INT'L MCNIC PROCESSING ELIMINATIONS GAS
SERVICES OIL & GAS GROUP AND RECLASSES SERVICES
-----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
OPERATING REVENUES
Gas and oil sales $ - $ 151,818 $ 16,053 $ (168,059) $ 1,313,505
Transportation - - 2,300 (1,811) 489
Other - 1,271 8,688 (5,280) 10,695
-----------------------------------------------------------------------------
- 153,089 27,041 (175,150) 1,324,689
-----------------------------------------------------------------------------
OPERATING EXPENSES
Cost of sales - 1,811 15,994 (169,869) 1,118,593
Operation and maintenance 4,746 73,639 12,268 (5,281) 146,284
Depreciation, depletion and amortization 109 57,276 3,037 2 62,516
Property and other taxes - 8,042 810 - 9,529
Property write-downs and restructuring charges - 52,000 460 - 52,460
-----------------------------------------------------------------------------
4,855 192,768 32,569 (175,148) 1,389,382
-----------------------------------------------------------------------------
OPERATING INCOME (LOSS) (4,855) (39,679) (5,528) (2) (64,693)
-----------------------------------------------------------------------------
EQUITY IN EARNINGS OF JOINT VENTURES AND SUBSIDIARIES 62 - 23,845 - 49,303
-----------------------------------------------------------------------------
OTHER INCOME AND (DEDUCTIONS)
Interest income 1,219 352 1,069 - 3,828
Interest on long-term debt 334 2,524 1,099 - 5,876
Other interest expense (976) (17,694) (21,356) - (51,574)
Investment losses - (89,447) - 2 (89,445)
Minority interest - - (592) - (592)
Other 30 11,715 5,253 - 13,694
-----------------------------------------------------------------------------
607 (92,550) (14,527) 2 (118,213)
-----------------------------------------------------------------------------
INCOME (LOSS) BEFORE INCOME TAXES (4,186) (132,229) 3,790 - (133,603)
INCOME TAX PROVISION (BENEFIT) (178) (45,066) 622 - (44,918)
-----------------------------------------------------------------------------
NET INCOME (LOSS) $ (4,008) $ (87,163) $ 3,168 $ - $ (88,685)
=============================================================================
</TABLE>
13
<PAGE> 25
MCN ENERGY GROUP INC.
GAS SERVICES
CONSOLIDATING STATEMENT OF FINANCIAL POSITION
AS OF DECEMBER 31, 1999
(IN THOUSANDS)
<TABLE>
<CAPTION>
CONSOLIDATED MCNIC CONSOLIDATED
COENERGY COENERGY COENERGY GAS MCN
CANADIAN TRADING SUPPLY CO. STORAGE CO. POWER CO.
-----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash and temporary cash investments
at cost (which approximates market value) $ 1,834 $ 5,232 $ 336 $ 5,611 $ 1,352
Accounts receivable - 210,331 18,615 1,833 12,275
Allowance for doubtful accounts - (2,767) - - -
Gas in inventory - 104,218 1,422 - 583
Property taxes assessed applicable to future periods - - - - -
Other - (16,162) - 88 16
-----------------------------------------------------------------------
1,834 300,852 20,373 7,532 14,226
-----------------------------------------------------------------------
DEFERRED CHARGES AND OTHER ASSETS
Deferred income taxes - 28 - 1,602 14,636
Investment in debt and equity securities - - - 1,250 -
Other - 68,111 35 18 3,327
-----------------------------------------------------------------------
- 68,139 35 2,870 17,963
-----------------------------------------------------------------------
INVESTMENTS IN AND ADVANCES TO JOINT
VENTURES AND SUBSIDIARIES - (1,457) - 18,986 134,904
-----------------------------------------------------------------------
PROPERTY, PLANT AND EQUIPMENT, AT COST - 4,517 - 559 52,352
Less: Accumulated depreciation and depletion - 2,352 - 1 103
-----------------------------------------------------------------------
- 2,165 - 558 52,249
-----------------------------------------------------------------------
$ 1,834 $ 369,699 $ 20,408 $ 29,946 $ 219,342
=======================================================================
</TABLE>
<TABLE>
<CAPTION>
CONSOLIDATED
MCNIC
CONSOLIDATED CONSOLIDATED PIPELINE & CONSOLIDATED
INT'L MCNIC PROCESSING ELIMINATIONS GAS
SERVICES OIL & GAS GROUP AND RECLASSES SERVICES
------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash and temporary cash investments
at cost (which approximates market value) $ 20 $ 11,122 $ 2,338 $ 2 $ 27,847
Accounts receivable -- 129,556 62,720 (29,410) 405,920
Allowance for doubtful accounts -- -- -- -- (2,767)
Gas in inventory -- -- -- -- 106,223
Property taxes assessed applicable to future periods -- 1,415 365 -- 1,780
Other 2,055 2,342 5,293 -- (6,368)
------------------------------------------------------------------------------
2,075 144,435 70,716 (29,408) 532,635
------------------------------------------------------------------------------
DEFERRED CHARGES AND OTHER ASSETS
Deferred income taxes -- 68,376 1,437 2 86,081
Investment in debt and equity securities -- -- 2,992 -- 4,242
Other (151) 2,054 1,506 (334) 74,566
------------------------------------------------------------------------------
(151) 70,430 5,935 (332) 164,889
------------------------------------------------------------------------------
INVESTMENTS IN AND ADVANCES TO JOINT
VENTURES AND SUBSIDIARIES 28,781 4 567,106 (9,449) 738,875
------------------------------------------------------------------------------
PROPERTY, PLANT AND EQUIPMENT, AT COST 1,155 573,514 46,480 (1) 678,576
Less: Accumulated depreciation and depletion 189 207,375 5,216 -- 215,236
------------------------------------------------------------------------------
966 366,139 41,264 (1) 463,340
------------------------------------------------------------------------------
$ 31,671 $ 581,008 $ 685,021 $ (39,190) $ 1,899,739
==============================================================================
</TABLE>
14
<PAGE> 26
MCN ENERGY GROUP INC.
GAS SERVICES
CONSOLIDATING STATEMENT OF FINANCIAL POSITION
AS OF DECEMBER 31, 1999
(IN THOUSANDS)
<TABLE>
<CAPTION>
CONSOLIDATED MCNIC CONSOLIDATED
COENERGY COENERGY COENERGY GAS MCN
CANADIAN TRADING SUPPLY STORAGE CO. POWER CO.
------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
LIABILITIES AND CAPITALIZATION
CURRENT LIABILITIES
Accounts payable $ 1,443 $ 155,860 $ 13,496 $ 9,759 $ 33,968
Notes payable - 136,402 6,215 - 26,514
Current portion of long-term debt and capital lease
obligations - - - - -
Federal income, property and other taxes payable (187) (11,879) (319) (1,553) 4,339
Other 12 883 26 - 142
----------------------------------------------------------------------------
1,268 281,266 19,418 8,206 64,963
----------------------------------------------------------------------------
DEFERRED CREDITS AND OTHER LIABILITIES
Accumulated deferred income taxes - (3,815) 39 3,562 9,516
Minority interest - - - - -
Other - 85,107 - 21,913 1,766
----------------------------------------------------------------------------
- 81,292 39 25,475 11,282
----------------------------------------------------------------------------
CAPITALIZATION
Long-term debt, including capital lease obligations - - - (174) 600
Common shareholders' equity 566 7,141 951 (3,561) 142,497
----------------------------------------------------------------------------
566 7,141 951 (3,735) 143,097
----------------------------------------------------------------------------
$ 1,834 $ 369,699 $ 20,408 $ 29,946 $ 219,342
============================================================================
</TABLE>
<TABLE>
<CAPTION>
CONSOLIDATED
MCNIC
CONSOLIDATED CONSOLIDATED PIPELINE & CONSOLIDATED
INT'L MCNIC PROCESSING ELIMINATIONS GAS
SERVICES OIL & GAS GROUP AND RECLASSES SERVICES
------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
LIABILITIES AND CAPITALIZATION
CURRENT LIABILITIES
Accounts payable $ 1,257 $ 41,357 $ 14,353 $ (29,741) $ 241,752
Notes payable - 216,754 346,482 - 732,367
Current portion of long-term debt and capital lease
obligations - 118 - - 118
Federal income, property and other taxes payable (838) (55,495) (7,109) - (73,041)
Other
- 5,707 49,044 (1) 55,813
----------------------------------------------------------------------------
419 208,441 402,770 (29,742) 957,009
----------------------------------------------------------------------------
DEFERRED CREDITS AND OTHER LIABILITIES
Accumulated deferred income taxes - 2,935 3,679 - 15,916
Minority interest - - 11,829 (9,449) 2,380
Other - 2,500 - - 111,286
----------------------------------------------------------------------------
- 5,435 15,508 (9,449) 129,582
----------------------------------------------------------------------------
CAPITALIZATION
Long-term debt, including capital lease obligations - 90 81 - 597
Common shareholders' equity 31,252 367,042 266,662 1 812,551
----------------------------------------------------------------------------
31,252 367,132 266,743 1 813,148
----------------------------------------------------------------------------
$ 31,671 $ 581,008 $ 685,021 $ (39,190) $ 1,899,739
============================================================================
</TABLE>
15
<PAGE> 27
MCN ENERGY GROUP INC.
MCNIC PIPELINE & PROCESSING COMPANY
CONSOLIDATING STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1999
(IN THOUSANDS)
<TABLE>
<CAPTION>
PIPELINE & OFFSHORE
PROCESSING PIPELINE MICHIGAN MOBILE BAY
COMPANY JONAH AND PROC. HOLDINGS GATHERING
PARENT PIPELINE COMPANY INC. COMPANY
-----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
OPERATING REVENUES
Gas sales $ 16,053 $ - $ - $ - $ -
Transportation - - - 2,247 -
Other 52 - - 8,396 -
-----------------------------------------------------------------------
16,105 - - 10,643 -
-----------------------------------------------------------------------
OPERATING EXPENSES
Cost of sales 15,994 - - - -
Operation and maintenance 6,730 1 59 2,817 (4)
Depreciation, depletion and amortization 606 5 1 1,475 82
Property and other taxes 28 - 37 431 185
Unusual charges (270) - - - -
-----------------------------------------------------------------------
23,088 6 97 4,723 263
-----------------------------------------------------------------------
OPERATING INCOME (6,983) (6) (97) 5,920 (263)
-----------------------------------------------------------------------
EQUITY IN EARNINGS OF JOINT VENTURES AND SUBSIDIARIES 14,498 2,837 (330) 3,153 5,538
-----------------------------------------------------------------------
OTHER INCOME AND (DEDUCTIONS)
Interest income 6,557 - - 90 -
Interest on long-term debt 829 - - 222 48
Other interest expense (21,334) - (10) (2,494) (3,325)
Other 3,155 - - (215) 37
-----------------------------------------------------------------------
(10,793) - (10) (2,397) (3,240)
-----------------------------------------------------------------------
INCOME BEFORE INCOME TAXES (3,278) 2,831 (437) 6,676 2,035
INCOME TAX PROVISION (BENEFIT) (6,446) 991 (155) 2,451 679
-----------------------------------------------------------------------
NET INCOME (LOSS) $ 3,168 $ 1,840 $ (282) $ 4,225 $ 1,356
=======================================================================
</TABLE>
<TABLE>
<CAPTION>
MCNIC
INDIANA METHANOL RODEO KCI MOBILE BAY
GATHERING COMPANIES GATHERING COMPANIES NGL PIPELINE
----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
OPERATING REVENUES
Gas sales $ - $ - $ - $ - $ -
Transportation 53 - - - -
Other 29 - - - -
--------------------------------------------------------------------
82 - - - -
--------------------------------------------------------------------
OPERATING EXPENSES
Cost of sales - - - - -
Operation and maintenance 24 - 187 - -
Depreciation, depletion and amortization 20 9 - - -
Property and other taxes 5 12 - - -
Unusual charges - - 730 - -
--------------------------------------------------------------------
49 21 917 - -
--------------------------------------------------------------------
OPERATING INCOME 33 (21) (917) - -
--------------------------------------------------------------------
EQUITY IN EARNINGS OF JOINT VENTURES AND SUBSIDIARIES - (665) 1,074 (425) 168
--------------------------------------------------------------------
OTHER INCOME AND (DEDUCTIONS)
Interest income - - - - -
Interest on long-term debt - - - - -
Other interest expense - - - - -
Other - - (325) - 173
--------------------------------------------------------------------
- - (325) - 173
--------------------------------------------------------------------
INCOME BEFORE INCOME TAXES 33 (686) (168) (425) 341
INCOME TAX PROVISION (BENEFIT) - (240) (73) (149) -
--------------------------------------------------------------------
NET INCOME (LOSS) $ 33 $ (446) $ (95) $ (276) $ 341
====================================================================
</TABLE>
16-a
<PAGE> 28
MCN ENERGY GROUP INC.
MCNIC PIPELINE & PROCESSING COMPANY
CONSOLIDATING STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1999
(IN THOUSANDS)
<TABLE>
<CAPTION>
MCNIC PSCO2
EAST COAST MCNIC VECTOR PETRO-
PIPELINE COPANO/KCS MILLENNIUM COMPANY SOURCE
--------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
OPERATING REVENUES
Gas sales $ - $ - $ - $ - $ -
Transportation - - - - -
Other - - - - -
--------------------------------------------------------------------
- - - - -
--------------------------------------------------------------------
OPERATING EXPENSES
Cost of sales - - - - -
Operation and maintenance 4 - - - -
Depreciation, depletion and amortization 1 6 - - 21
Property and other taxes - 7 - - -
Unusual charges - - - - -
--------------------------------------------------------------------
5 13 - - 21
--------------------------------------------------------------------
OPERATING INCOME (5) (13) - - (21)
--------------------------------------------------------------------
EQUITY IN EARNINGS OF JOINT VENTURES AND SUBSIDIARIES (1,089) 2,784 445 1,483 3,213
--------------------------------------------------------------------
OTHER INCOME AND (DEDUCTIONS)
Interest income - - - - -
Interest on long-term debt - - - - -
Other interest expense - - - - -
Other - - - - -
--------------------------------------------------------------------
- - - - -
--------------------------------------------------------------------
INCOME BEFORE INCOME TAXES (1,094) 2,771 445 1,483 3,192
INCOME TAX PROVISION (BENEFIT) (642) 970 - - 1,117
--------------------------------------------------------------------
NET INCOME (LOSS) $ (452) $ 1,801 $ 445 $ 1,483 $ 2,075
====================================================================
</TABLE>
<TABLE>
<CAPTION>
AMERICAN PIPELINE & PIPELINE &
CENTRAL MOBILE PROCESSING PROCESSING
EASTERN BAY PROC COAL FINES COMPANY COMPANY
TEXAS COMPANY CONSOL ELIMINATIONS CONSOL.
----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
OPERATING REVENUES
Gas sales $ - $ - $ - $ - $ 16,053
Transportation - - - - 2,300
Other - - 211 - 8,688
----------------------------------------------------------------------
- - 211 - 27,041
----------------------------------------------------------------------
OPERATING EXPENSES
Cost of sales - - - - 15,994
Operation and maintenance - - 2,450 - 12,268
Depreciation, depletion and amortization - 812 - (1) 3,037
Property and other taxes - - 105 - 810
Unusual charges - - - - 460
----------------------------------------------------------------------
- 812 2,555 (1) 32,569
----------------------------------------------------------------------
OPERATING INCOME - (812) (2,344) 1 (5,528)
----------------------------------------------------------------------
EQUITY IN EARNINGS OF JOINT VENTURES AND SUBSIDIARIES 6,440 2,375 - (17,654) 23,845
----------------------------------------------------------------------
OTHER INCOME AND (DEDUCTIONS)
Interest income - - 228 (5,806) 1,069
Interest on long-term debt - - - - 1,099
Other interest expense - - - 5,807 (21,356)
Other - 1,035 1,449 (648) 4,661
----------------------------------------------------------------------
- 1,035 1,677 (647) (14,527)
----------------------------------------------------------------------
INCOME BEFORE INCOME TAXES 6,440 2,598 (667) (18,300) 3,790
INCOME TAX PROVISION (BENEFIT) 2,254 10 (145) - 622
----------------------------------------------------------------------
NET INCOME (LOSS) $ 4,186 $ 2,588 $ (522) $ (18,300) $ 3,168
======================================================================
</TABLE>
16-b
<PAGE> 29
MCN ENERGY GROUP INC.
MCNIC PIPELINE & PROCESSING COMPANY
CONSOLIDATING STATEMENT OF FINANCIAL POSITION
AS OF DECEMBER 31, 1999
(IN THOUSANDS)
<TABLE>
<CAPTION>
PIPELINE & OFFSHORE
PROCESSING PIPELINE MICHIGAN
COMPANY JONAH AND PROC. HOLDINGS
PARENT PIPELINE COMPANY INC.
------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash and temporary cash investments
at cost (which approximates market value) $ 92,326 $ -- $ -- $ 736
Accounts receivable 47,354 -- -- 12,272
Property taxes assessed applicable to
future periods -- -- -- 332
Other 1,723 -- -- 3,984
------------------------------------------------
141,403 -- -- 17,324
------------------------------------------------
DEFERRED CHARGES AND OTHER ASSETS
Investment in debt and equity securities 2,992 -- -- --
Other (8) -- 115 302
------------------------------------------------
2,984 -- 115 302
------------------------------------------------
INVESTMENTS IN AND ADVANCES TO JOINT
VENTURES AND SUBSIDIARIES 465,876 18,697 10,340 59,614
------------------------------------------------
PROPERTY, PLANT AND EQUIPMENT, AT COST 8,269 155 34 33,035
Less: Accumulated depreciation and depletion 532 14 1 4,589
------------------------------------------------
7,737 141 33 28,446
------------------------------------------------
$ 618,000 $ 18,838 $ 10,488 $ 105,686
================================================
</TABLE>
<TABLE>
<CAPTION>
MOBILE BAY MCNIC
GATHERING METHANOL RODEO KCI MOBILE BAY
COMPANY COMPANIES GATHERING COMPANIES NGL PIPELINE
---------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash and temporary cash investments
at cost (which approximates market value) $ 2 $ -- $ -- $ -- $ --
Accounts receivable 1,566 -- -- -- --
Property taxes assessed applicable to
future periods -- -- -- -- --
Other -- -- -- -- --
--------------------------------------------------------------
1,568 -- -- -- --
--------------------------------------------------------------
DEFERRED CHARGES AND OTHER ASSETS
Investment in debt and equity securities -- -- -- -- --
Other 332 200 -- 1,488 --
--------------------------------------------------------------
332 200 -- 1,488 --
--------------------------------------------------------------
INVESTMENTS IN AND ADVANCES TO JOINT
VENTURES AND SUBSIDIARIES 95,644 56,720 4,877 22,075 5,932
--------------------------------------------------------------
PROPERTY, PLANT AND EQUIPMENT, AT COST 47 256 -- -- --
Less: Accumulated depreciation and depletion (35) 24 -- -- --
--------------------------------------------------------------
82 232 -- -- --
--------------------------------------------------------------
$ 97,626 $ 57,152 $ 4,877 $ 23,563 $ 5,932
==============================================================
</TABLE>
17-a
<PAGE> 30
MCN ENERGY GROUP INC.
MCNIC PIPELINE & PROCESSING COMPANY
CONSOLIDATING STATEMENT OF FINANCIAL POSITION
AS OF DECEMBER 31, 1999
(IN THOUSANDS)
<TABLE>
<CAPTION>
MCNIC PSCO2
EAST COAST MCNIC VECTOR PETRO-
PIPELINE COPANO/KCS MILLENNIUM COMPANY SOURCE
----------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash and temporary cash investments
at cost (which approximates market value) $ -- $ -- $ -- $ -- $ --
Accounts receivable -- -- -- -- --
Property taxes assessed applicable to
future periods -- -- -- -- --
Other -- -- -- -- --
-----------------------------------------------------------------
-- -- -- -- --
-----------------------------------------------------------------
DEFERRED CHARGES AND OTHER ASSETS
Investment in debt and equity securities -- -- -- -- --
Other -- 5 -- -- --
-----------------------------------------------------------------
-- 5 -- -- --
-----------------------------------------------------------------
INVESTMENTS IN AND ADVANCES TO JOINT
VENTURES AND SUBSIDIARIES 30,024 49,447 4,131 22,438 25,122
-----------------------------------------------------------------
PROPERTY, PLANT AND EQUIPMENT, AT COST 114 189 21 8 610
Less: Accumulated depreciation and depletion 1 17 -- -- 21
-----------------------------------------------------------------
113 172 21 8 589
-----------------------------------------------------------------
$ 30,137 $ 49,624 $ 4,152 $ 22,446 $ 25,711
=================================================================
</TABLE>
<TABLE>
<CAPTION>
AMERICAN PIPELINE & PIPELINE &
CENTRAL MOBILE PROCESSING PROCESSING
EASTERN BAY PROC COAL FINES COMPANY COMPANY
TEXAS COMPANY CONSOL ELIMINATIONS CONSOL.
---------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash and temporary cash investments
at cost (which approximates market value) $ -- $ -- $ -- $ (90,726) $ 2,338
Accounts receivable -- -- 1,730 (202) 62,720
Property taxes assessed applicable to
future periods -- -- 33 -- 365
Other -- -- 66 (480) 5,293
----------------------------------------------------------------
-- -- 1,829 (91,408) 70,716
----------------------------------------------------------------
DEFERRED CHARGES AND OTHER ASSETS
Investment in debt and equity securities -- -- -- -- 2,992
Other -- -- 496 13 2,943
----------------------------------------------------------------
-- -- 496 13 5,935
----------------------------------------------------------------
INVESTMENTS IN AND ADVANCES TO JOINT
VENTURES AND SUBSIDIARIES 71,983 36,327 -- (412,141) 567,106
----------------------------------------------------------------
PROPERTY, PLANT AND EQUIPMENT, AT COST -- 1,668 2,073 1 46,480
Less: Accumulated depreciation and depletion -- 49 3 -- 5,216
----------------------------------------------------------------
-- 1,619 2,070 1 41,264
----------------------------------------------------------------
$ 71,983 $ 37,946 $ 4,395 $(503,535) $ 685,021
================================================================
</TABLE>
17-b
<PAGE> 31
MCN ENERGY GROUP INC.
MCNIC PIPELINE & PROCESSING COMPANY
CONSOLIDATING STATEMENT OF FINANCIAL POSITION
AS OF DECEMBER 31, 1999
(IN THOUSANDS)
<TABLE>
<CAPTION>
PIPELINE & OFFSHORE
PROCESSING PIPELINE MICHIGAN MOBILE BAY
COMPANY JONAH AND PROC. HOLDINGS GATHERING
PARENT PIPELINE COMPANY INC. COMPANY
-------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
LIABILITIES AND CAPITALIZATION
CURRENT LIABILITIES
Accounts payable $ 6,803 $ - $ 4 $ 6,282 $ -
Notes payable 346,482 - - 39,772 50,954
Federal income, property and other taxes
payable (3,601) (61) 35 128 (1,262)
Other 48,312 - - 206 232
-------------------------------------------------------------------------
397,996 (61) 39 46,388 49,924
-------------------------------------------------------------------------
DEFERRED CREDITS AND OTHER LIABILITIES
Accumulated deferred income taxes (46,659) 794 1,285 11,926 15,047
Minority interest - - - 2,341 -
-------------------------------------------------------------------------
(46,659) 794 1,285 14,267 15,047
-------------------------------------------------------------------------
CAPITALIZATION
Long-term debt, including capital lease obligations - - 81 - -
Common shareholders' equity 266,663 18,105 9,083 45,031 32,655
-------------------------------------------------------------------------
266,663 18,105 9,164 45,031 32,655
-------------------------------------------------------------------------
$618,000 $18,838 $10,488 $105,686 $97,626
=========================================================================
<CAPTION>
MCNIC
METHANOL RODEO KCI MOBILE BAY
COMPANIES GATHERING COMPANIES NGL PIPELINE
----------------------------------------------------------------
<S> <C> <C> <C> <C>
LIABILITIES AND CAPITALIZATION
CURRENT LIABILITIES
Accounts payable $ - $ - $ - $ -
Notes payable - - - -
Federal income, property and other taxes
payable (1,504) (337) (48) -
Other - 706 - -
---------------------------------------------------------------
(1,504) 369 (48) -
---------------------------------------------------------------
DEFERRED CREDITS AND OTHER LIABILITIES
Accumulated deferred income taxes 13,979 411 - -
Minority interest - - - -
---------------------------------------------------------------
13,979 411 - -
---------------------------------------------------------------
CAPITALIZATION
Long-term debt, including capital lease obligations - - - -
Common shareholders' equity 44,677 4,097 23,611 5,932
---------------------------------------------------------------
44,677 4,097 23,611 5,932
---------------------------------------------------------------
$57,152 $4,877 $23,563 $5,932
===============================================================
</TABLE>
18-a
<PAGE> 32
MCN ENERGY GROUP INC.
MCNIC PIPELINE & PROCESSING COMPANY
CONSOLIDATING STATEMENT OF FINANCIAL POSITION
AS OF DECEMBER 31, 1999
(IN THOUSANDS)
<TABLE>
<CAPTION>
MCNIC PSC02
EAST COAST MCNIC VECTOR PETRO-
PIPELINE COPANO/KCS MILLENNIUM COMPANY SOURCE
---------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
LIABILITIES AND CAPITALIZATION
CURRENT LIABILITIES
Accounts payable $ - $ - $ - $ - $ -
Notes payable - - - - -
Federal income, property and other taxes
payable (281) (737) - (461) (308)
Other - - - - -
---------------------------------------------------------------------------
(281) (737) - (461) (308)
---------------------------------------------------------------------------
DEFERRED CREDITS AND OTHER LIABILITIES
Accumulated deferred income taxes (3) 3,137 - - 768
Minority interest - - - - -
---------------------------------------------------------------------------
(3) 3,137 - - 768
---------------------------------------------------------------------------
CAPITALIZATION
Long term debt, including capital lease obligations - - - - -
Common shareholders' equity 30,421 47,224 4,152 22,907 25,251
---------------------------------------------------------------------------
30,421 47,224 4,152 22,907 25,251
---------------------------------------------------------------------------
$30,137 $49,624 $4,152 $22,446 $25,711
===========================================================================
<CAPTION>
AMERICAN PIPELINE & PIPELINE &
CENTRAL MOBILE PROCESSING PROCESSING
EASTERN BAY PROC COAL FINES COMPANY COMPANY
TEXAS COMPANY CONSOL ELIMINATIONS CONSOL.
----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
LIABILITIES AND CAPITALIZATION
CURRENT LIABILITIES
Accounts payable $ - $ - $1,466 $ (202) $ 14,353
Notes payable - - - (90,726) 346,482
Federal income, property and other taxes
payable 80 38 1,212 (2) (7,109)
Other - - 66 (478) 49,044
----------------------------------------------------------------------------
80 38 2,744 (91,408) 402,770
----------------------------------------------------------------------------
DEFERRED CREDITS AND OTHER LIABILITIES
Accumulated deferred income taxes 1,259 (3) 1,738 - 3,679
Minority interest - - 8 9,480 11,829
----------------------------------------------------------------------------
1,259 (3) 1,746 9,480 15,508
----------------------------------------------------------------------------
CAPITALIZATION
Long-term debt, including capital lease obligations - - - - 81
Common shareholders' equity 70,644 37,911 (95) (421,607) 266,662
----------------------------------------------------------------------------
70,644 37,911 (95) (421,607) 266,743
----------------------------------------------------------------------------
$71,983 $37,946 $4,395 $(503,535) $685,021
============================================================================
</TABLE>
18-b
<PAGE> 33
MCN ENERGY GROUP INC.
COENERGY TRADING COMPANY
CONSOLIDATING STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1999
(IN THOUSANDS)
<TABLE>
<CAPTION>
COENERGY COENERGY
COENERGY SALES & TRADING
TRADING COENERGY COMPANY
COMPANY DEV. CO. ELIMINATIONS CONSOL.
------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATING REVENUES
Gas sales $1,232,993 $ - $(70,824) $1,162,169
Transportation (2) - - (2)
Other (120) - - (120)
------------------------------------------------------------------------
1,232,871 - (70,824) 1,162,047
------------------------------------------------------------------------
OPERATING EXPENSES
Cost of sales 1,133,373 - - 1,133,373
Operation and maintenance 119,484 - (70,824) 48,660
Depreciation, depletion and amortization 2,015 - - 2,015
Property and other taxes 107 - - 107
------------------------------------------------------------------------
1,254,979 - (70,824) 1,184,155
------------------------------------------------------------------------
OPERATING INCOME (22,108) - - (22,108)
------------------------------------------------------------------------
EQUITY IN EARNINGS OF JOINT VENTURES AND SUBSIDIARIES (1,763) (3,125) 2,031 (2,857)
------------------------------------------------------------------------
OTHER INCOME AND (DEDUCTIONS)
Interest income 522 - - 522
Other interest expense (8,151) - - (8,151)
Other (2,514) - - (2,514)
------------------------------------------------------------------------
(10,143) - - (10,143)
------------------------------------------------------------------------
INCOME BEFORE INCOME TAXES (34,014) (3,125) 2,031 (35,108)
INCOME TAX PROVISION (BENEFIT) (11,131) (1,094) - (12,225)
------------------------------------------------------------------------
NET INCOME (LOSS) $ (22,883) $(2,031) $ 2,031 $ (22,883)
========================================================================
</TABLE>
19
<PAGE> 34
MCN ENERGY GROUP INC.
COENERGY TRADING COMPANIES
CONSOLIDATING STATEMENT OF FINANCIAL POSITION
AS OF DECEMBER 31, 1999
(IN THOUSANDS)
<TABLE>
<CAPTION>
COENERGY COENERGY
COENERGY SALES & TRADING
TRADING COENERGY COMPANY
COMPANY DEV. CO. ELIMINATIONS CONSOL.
------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash and temporary cash investments
at cost (which approximates market value) $ 5,232 $ - $ - $ 5,232
Accounts receivable 207,564 - - 207,564
Other 88,056 - - 88,056
------------------------------------------------------------------------
300,852 - - 300,852
------------------------------------------------------------------------
DEFERRED CHARGES AND OTHER ASSETS
Deferred income taxes 28 - - 28
Other 68,111 - - 68,111
------------------------------------------------------------------------
68,139 - - 68,139
------------------------------------------------------------------------
INVESTMENTS IN AND ADVANCES TO JOINT
VENTURES AND SUBSIDIARIES 276 (3,490) 1,757 (1,457)
------------------------------------------------------------------------
PROPERTY, PLANT AND EQUIPMENT, AT COST 4,517 - - 4,517
Less: Accumulated depreciation and depletion 2,352 - - 2,352
------------------------------------------------------------------------
2,165 - - 2,165
------------------------------------------------------------------------
$371,432 $(3,490) $1,757 $369,699
========================================================================
</TABLE>
20
<PAGE> 35
MCN ENERGY GROUP INC.
COENERGY TRADING COMPANY
CONSOLIDATING STATEMENT OF FINANCIAL POSITION
AS OF DECEMBER 31, 1999
(IN THOUSANDS)
<TABLE>
<CAPTION>
COENERGY COENERGY
COENERGY SALES & TRADING
TRADING COENERGY COMPANY
COMPANY DEV. CO. ELIMINATIONS CONSOL.
--------------------------------------------------------------
<S> <C> <C> <C> <C>
LIABILITIES AND CAPITALIZATION
CURRENT LIABILITIES
Accounts payable $ 155,860 $ - $ - $ 155,860
Notes payable 136,402 - - 136,402
Federal income, property and other taxes
payable (10,611) (1,268) - (11,879)
Other 883 - - 883
--------------------------------------------------------------
282,534 (1,268) - 281,266
--------------------------------------------------------------
DEFERRED CREDITS AND OTHER LIABILITIES
Deferred income taxes (3,350) (465) - (3,815)
Other 85,107 - - 85,107
--------------------------------------------------------------
81,757 (465) - 81,292
--------------------------------------------------------------
CAPITALIZATION
Common shareholders' equity 7,141 (1,757) 1,757 7,141
--------------------------------------------------------------
$ 371,432 $ (3,490) $ 1,757 $ 369,699
==============================================================
</TABLE>
21
<PAGE> 36
MCN ENERGY GROUP INC.
MCNIC OIL & GAS COMPANY
CONSOLIDATING STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1999
(IN THOUSANDS)
<TABLE>
<CAPTION>
MCNIC GREEN GREEN
OIL & GAS ELMIRA WARNER RIVER OAK
-------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
OPERATING REVENUES
Gas and oil sales $ 11,415 $ 734 $ 701 $ 22 $ -
Other (555) (62) - - -
-------------------------------------------------------------
10,860 672 701 22 -
-------------------------------------------------------------
OPERATING EXPENSES
Operation and maintenance 15,540 143 351 126 23
Depreciation, depletion and amortization 5,100 200 287 14 -
Property and other taxes 51 (42) 18 1 -
Property write-downs 52,000 - - - -
-------------------------------------------------------------
72,691 301 656 141 23
-------------------------------------------------------------
OPERATING INCOME (61,831) 371 45 (119) (23)
-------------------------------------------------------------
EQUITY IN EARNINGS OF JOINT VENTURES AND SUBSIDIARIES 7,301 - - - -
-------------------------------------------------------------
OTHER INCOME AND (DEDUCTIONS)
Interest income 15,192 - - - -
Interest on long-term debt 2,524 - - - -
Other interest expense (17,660) - - - -
Other (83,366) - - - -
-------------------------------------------------------------
(83,310) - - - -
-------------------------------------------------------------
INCOME (LOSS) BEFORE INCOME TAXES (137,840) 371 45 (119) (23)
INCOME TAX PROVISION (BENEFIT) (50,676) 75 (293) 196 (8)
-------------------------------------------------------------
NET INCOME (LOSS) $ (87,164) $ 296 $ 338 $ (315) $ (15)
=============================================================
<CAPTION>
MCNIC MOG MOG REID
GEOTREND ENHANCED PROPERTIES PROPERTIES
-----------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATING REVENUES
Gas and oil sales $ 355 $ 1,079 $ 3,382 $ 49,128
Other (7) - (758) 602
-----------------------------------------------------------
348 1,079 2,624 49,730
-----------------------------------------------------------
OPERATING EXPENSES
Operation and maintenance 741 524 707 24,441
Depreciation, depletion and amortization 175 319 951 17,085
Property and other taxes (54) 324 142 1,475
Property write-downs - - - -
-----------------------------------------------------------
862 1,167 1,800 43,001
-----------------------------------------------------------
OPERATING INCOME (514) (88) 824 6,729
-----------------------------------------------------------
EQUITY IN EARNINGS OF JOINT VENTURES AND SUBSIDIARIES - - - -
-----------------------------------------------------------
OTHER INCOME AND (DEDUCTIONS)
Interest income - 25 - -
Interest on long-term debt - - - -
Other interest expense - (202) (1,797) (7,834)
Other - - - -
-----------------------------------------------------------
- (177) (1,797) (7,834)
-----------------------------------------------------------
INCOME (LOSS) BEFORE INCOME TAXES (514) (265) (973) (1,105)
INCOME TAX PROVISION (BENEFIT) (176) 6 (267) (102)
-----------------------------------------------------------
NET INCOME (LOSS) $ (338) $ (271) $ (706) $ (1,003)
===========================================================
</TABLE>
22-a
<PAGE> 37
MCN ENERGY GROUP INC.
MCNIC OIL & GAS COMPANY
CONSOLIDATING STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1999
(IN THOUSANDS)
<TABLE>
<CAPTION>
MCNIC PAGEANT MICHIGAN APPALACHIAN
MIDCONTINENT CORP ACQUISITION ACQUISITION
------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATING REVENUES
Gas and oil sales $ (119) $ - $ 43,434 $ 4,086
Other 1,182 - 320 -
------------------------------------------------------------
1,063 - 43,754 4,086
------------------------------------------------------------
OPERATING EXPENSES
Operation and maintenance 1,968 - 16,693 1,605
Depreciation, depletion and amortization (195) - 15,578 1,420
Property and other taxes (103) - 3,538 276
Property write-downs - - - -
------------------------------------------------------------
1,670 - 35,809 3,301
------------------------------------------------------------
OPERATING INCOME (607) - 7,945 785
------------------------------------------------------------
EQUITY IN EARNINGS OF JOINT VENTURES AND SUBSIDIARIES - - - -
------------------------------------------------------------
OTHER INCOME AND (DEDUCTIONS)
Interest income 8 - - -
Interest on long-term debt - - - -
Other interest expense (5,019) (35) (19) -
Other - (7,456) 92 -
------------------------------------------------------------
(5,011) (7,491) 73 -
------------------------------------------------------------
INCOME (LOSS) BEFORE INCOME TAXES (5,618) (7,491) 8,018 785
INCOME TAX PROVISION (BENEFIT) (2,109) (2,622) 3,643 291
------------------------------------------------------------
NET INCOME (LOSS) $ (3,509) $ (4,869) $ 4,375 $ 494
============================================================
<CAPTION>
MIDCONTINENT ROCKIES GULF COAST MIDCONTINENT
ACQUISITION ACQUISITION ACQUISITION ACQ RICKS
-----------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATING REVENUES
Gas and oil sales $ 66 $ 6,996 $ 6,632 $ 7,643
Other - 570 2 (23)
-----------------------------------------------------------------
66 7,566 6,634 7,620
-----------------------------------------------------------------
OPERATING EXPENSES
Operation and maintenance 8 1,235 1,854 1,905
Depreciation, depletion and amortization - 3,182 3,466 3,462
Property and other taxes 2 656 391 639
Property write-downs - - - -
-----------------------------------------------------------------
10 5,073 5,711 6,006
-----------------------------------------------------------------
OPERATING INCOME 56 2,493 923 1,614
-----------------------------------------------------------------
EQUITY IN EARNINGS OF JOINT VENTURES AND SUBSIDIARIES - - - -
-----------------------------------------------------------------
OTHER INCOME AND (DEDUCTIONS)
Interest income - - - -
Interest on long-term debt - - - -
Other interest expense - - (1) -
Other - - - -
-----------------------------------------------------------------
- - (1) -
-----------------------------------------------------------------
INCOME (LOSS) BEFORE INCOME TAXES 56 2,493 922 1,614
INCOME TAX PROVISION (BENEFIT) 20 820 356 628
-----------------------------------------------------------------
NET INCOME (LOSS) $ 36 $ 1,673 $ 566 $ 986
=================================================================
<CAPTION>
MCNIC
GULF COAST MICH ACQ OIL & GAS
ACQ RICKS 1ST CHICAGO ELIMINATIONS CONSOL.
-------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATING REVENUES
Gas and oil sales $ 201 $ 16,063 $ - $ 151,818
Other - - - 1,271
-------------------------------------------------------------------
201 16,063 - 153,089
-------------------------------------------------------------------
OPERATING EXPENSES
Operation and maintenance 75 7,511 - 75,450
Depreciation, depletion and amortization 81 6,150 1 57,276
Property and other taxes 16 714 (2) 8,042
Property write-downs - - - 52,000
-------------------------------------------------------------------
172 14,375 (1) 192,768
-------------------------------------------------------------------
OPERATING INCOME 29 1,688 1 (39,679)
-------------------------------------------------------------------
EQUITY IN EARNINGS OF JOINT VENTURES AND SUBSIDIARIES - - (7,301) -
-------------------------------------------------------------------
OTHER INCOME AND (DEDUCTIONS)
Interest income - - (14,874) 352
Interest on long-term debt - - - 2,524
Other interest expense - - 14,873 (17,694)
Other - 12,999 - (77,732)
-------------------------------------------------------------------
- 12,999 (1) (92,550)
-------------------------------------------------------------------
INCOME (LOSS) BEFORE INCOME TAXES 29 14,687 (7,301) (132,229)
INCOME TAX PROVISION (BENEFIT) 10 5,140 2 (45,066)
-------------------------------------------------------------------
NET INCOME (LOSS) $ 19 $ 9,547 $ (7,303) $ (87,163)
===================================================================
</TABLE>
22-b
<PAGE> 38
MCN ENERGY GROUP INC.
MCNIC OIL & GAS COMPANY
CONSOLIDATING STATEMENT OF FINANCIAL POSITION
AS OF DECEMBER 31, 1999
(IN THOUSANDS)
<TABLE>
<CAPTION>
MCNIC GREEN GREEN
OIL & GAS ELMIRA WARNER RIVER OAK
-------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash and temporary cash investments
at cost (which approximates market value) $ 94,964 $ - $ - $ - $ -
Accounts receivable 110,263 244 - - -
Other 822 - (204) - -
-------------------------------------------------------------
206,049 244 (204) - -
-------------------------------------------------------------
DEFERRED CHARGES AND OTHER ASSETS
Other 14,749 14,190 16,146 3,277 123
-------------------------------------------------------------
INVESTMENTS IN AND ADVANCES TO JOINT
VENTURES AND SUBSIDIARIES 297,947 - - - -
-------------------------------------------------------------
PROPERTY, PLANT AND EQUIPMENT, AT COST (12,552) 79 16,808 64 20
Less: Accumulated depreciation and depletion 62,164 200 287 14 -
-------------------------------------------------------------
(74,716) (121) 16,521 50 20
-------------------------------------------------------------
$444,029 $ 14,313 $ 32,463 $ 3,327 $ 143
=============================================================
<CAPTION>
MCNIC MOG MCNIC
GEOTREND ENHANCED PROPERTIES WEST COAST
---------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash and temporary cash investments
at cost (which approximates market value) $ - $ 536 $ 56 $ -
Accounts receivable 5 485 919 -
Other 21 97 112 -
---------------------------------------------------------
26 1,118 1,087 -
---------------------------------------------------------
DEFERRED CHARGES AND OTHER ASSETS
Other 6,425 1,703 3,767 4
---------------------------------------------------------
INVESTMENTS IN AND ADVANCES TO JOINT
VENTURES AND SUBSIDIARIES - - 4 -
---------------------------------------------------------
PROPERTY, PLANT AND EQUIPMENT, AT COST 6,563 7,341 29,037 -
Less: Accumulated depreciation and depletion 1,521 1,798 10,098 -
---------------------------------------------------------
5,042 5,543 18,939 -
---------------------------------------------------------
$ 11,493 $ 8,364 $ 23,797 $ 4
=========================================================
</TABLE>
23-a
<PAGE> 39
MCN ENERGY GROUP INC.
MCNIC OIL & GAS COMPANY
CONSOLIDATING STATEMENT OF FINANCIAL POSITION
AS OF DECEMBER 31, 1999
(IN THOUSANDS)
<TABLE>
<CAPTION>
MCNIC PAGEANT MCNIC MICHIGAN MICH ACQ
MIDCONTINENT CORP CANADIAN ACQUISITION 1ST CHICAGO
-------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash and temporary cash investments
at cost (which approximates market value) $ - $ 1 $ - $ - $ -
Accounts receivable 740 - 1,391 10,402 5,387
Other 54 - - 3,293 -
-------------------------------------------------------------------------
794 1 1,391 13,695 5,387
-------------------------------------------------------------------------
DEFERRED CHARGES AND OTHER ASSETS
Other 1,747 4,757 (1) 51 3,489
-------------------------------------------------------------------------
INVESTMENTS IN AND ADVANCES TO JOINT
VENTURES AND SUBSIDIARIES - - - - -
-------------------------------------------------------------------------
PROPERTY, PLANT AND EQUIPMENT, AT COST (702) - - 525,781 1,075
Less: Accumulated depreciation and depletion (195) - - 125,337 6,150
-------------------------------------------------------------------------
(507) - - 400,444 (5,075)
-------------------------------------------------------------------------
$ 2,034 $ 4,758 $ 1,390 $ 414,190 $ 3,801
=========================================================================
<CAPTION>
CONSOLIDATED
MCNIC
ELIMINATIONS OIL & GAS
---------------------------------
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash and temporary cash investments
at cost (which approximates market value) $ (84,435) $ 11,122
Accounts receivable (280) 129,556
Other (438) 3,757
---------------------------------
(85,153) 144,435
---------------------------------
DEFERRED CHARGES AND OTHER ASSETS
Other 3 70,430
---------------------------------
INVESTMENTS IN AND ADVANCES TO JOINT
VENTURES AND SUBSIDIARIES (297,947) 4
---------------------------------
PROPERTY, PLANT AND EQUIPMENT, AT COST - 573,514
Less: Accumulated depreciation and depletion 1 207,375
---------------------------------
(1) 366,139
---------------------------------
$(383,098) $ 581,008
=================================
</TABLE>
23-b
<PAGE> 40
MCN ENERGY GROUP INC.
MCNIC OIL & GAS COMPANY
CONSOLIDATING STATEMENT OF FINANCIAL POSITION
AS OF DECEMBER 31, 1999
(IN THOUSANDS)
<TABLE>
<CAPTION>
MCNIC GREEN GREEN
OIL & GAS ELMIRA WARNER RIVER OAK
-------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
LIABILITIES AND CAPITALIZATION
CURRENT LIABILITIES
Accounts payable $ 37,662 $ 488 $ - $ - $ -
Notes payable 216,754 - - - -
Current portion of long-term debt and capital lease
obligations - - - - -
Federal income, property and other taxes payable (19,064) 7,828 2,168 875 (157)
Other 5,710 - - - -
-------------------------------------------------------------------------
241,062 8,316 2,168 875 (157)
-------------------------------------------------------------------------
DEFERRED CREDITS AND OTHER LIABILITIES
Accumulated deferred income taxes (166,678) 2,669 3,851 2,129 698
Other 2,500 - - - -
-------------------------------------------------------------------------
(164,178) 2,669 3,851 2,129 698
-------------------------------------------------------------------------
CAPITALIZATION
Long-term debt, including capital lease obligations - - - - -
Common shareholders' equity 367,145 3,328 26,444 323 (398)
-------------------------------------------------------------------------
367,145 3,328 26,444 323 (398)
-------------------------------------------------------------------------
$ 444,029 $ 14,313 $ 32,463 $ 3,327 $ 143
=========================================================================
</TABLE>
<TABLE>
<CAPTION>
MCNIC MOG MCNIC
GEOTREND ENHANCED PROPERTIES WEST COAST
-----------------------------------------------------------
<S> <C> <C> <C> <C>
LIABILITIES AND CAPITALIZATION
CURRENT LIABILITIES
Accounts payable $ - $ 77 $ 90 $ -
Notes payable - - - -
Current portion of long-term debt and capital lease
obligations - - - -
Federal income, property and other taxes payable (7,502) (54) (95,283) 54,562
Other - - (3) -
----------------------------------------------------------
(7,502) 23 (95,196) 54,562
----------------------------------------------------------
DEFERRED CREDITS AND OTHER LIABILITIES
Accumulated deferred income taxes 6,765 4,071 133,504 (929)
Other - - - -
----------------------------------------------------------
6,765 4,071 133,504 (929)
----------------------------------------------------------
CAPITALIZATION
Long-term debt, including capital lease obligations - - - -
Common shareholders' equity 12,230 4,270 (14,511) (53,629)
----------------------------------------------------------
12,230 4,270 (14,511) (53,629)
----------------------------------------------------------
$ 11,493 $ 8,364 $ 23,797 $ 4
==========================================================
</TABLE>
24-a
<PAGE> 41
MCN ENERGY GROUP INC.
MCNIC OIL & GAS COMPANY
CONSOLIDATING STATEMENT OF FINANCIAL POSITION
AS OF DECEMBER 31, 1999
(IN THOUSANDS)
<TABLE>
<CAPTION>
MCNIC PAGEANT MCNIC MICHIGAN
MIDCONTINENT CORP CANADIAN ACQUISITION
----------------------------------------------------
<S> <C> <C> <C> <C>
LIABILITIES AND CAPITALIZATION
CURRENT LIABILITIES
Accounts payable $ 708 $ -- $ -- $ 2,611
Notes payable 84,434 -- -- --
Current portion of long-term debt and capital lease
obligations -- -- -- 118
Federal income, property and other taxes
payable (1,417) (6) 57 (2,595)
Other 438 -- -- --
-----------------------------------------------------
84,163 (6) 57 134
-----------------------------------------------------
DEFERRED CREDITS AND OTHER LIABILITIES
Accumulated deferred income taxes 16,530 -- -- 326
Other -- -- -- --
-----------------------------------------------------
16,530 -- -- 326
-----------------------------------------------------
CAPITALIZATION
Long-term debt, including capital lease obligations -- -- -- 90
Common shareholders' equity (98,659) 4,764 1,333 413,640
-----------------------------------------------------
(98,659) 4,764 1,333 413,730
-----------------------------------------------------
$ 2,034 $ 4,758 $ 1,390 $ 414,190
=====================================================
</TABLE>
<TABLE>
<CAPTION>
CONSOLIDATED
MICH ACQ MCNIC
1ST CHICAGO ELIMINATIONS OIL & GAS
----------------------------------------
<S> <C> <C> <C>
LIABILITIES AND CAPITALIZATION
CURRENT LIABILITIES
Accounts payable $ -- $ (279) $ 41,357
Notes payable -- (84,434) 216,754
Current portion of long-term debt and capital lease
obligations -- -- 118
Federal income, property and other taxes
payable 5,092 1 (55,495)
Other -- (438) 5,707
-------------------------------------
5,092 (85,150) 208,441
-------------------------------------
DEFERRED CREDITS AND OTHER LIABILITIES
Accumulated deferred income taxes -- (1) 2,935
Other -- -- 2,500
-------------------------------------
-- (1) 5,435
-------------------------------------
CAPITALIZATION
Long-term debt, including capital lease obligations -- -- 90
Common shareholders' equity (1,291) (297,947) 367,042
-------------------------------------
(1,291) (297,947) 367,132
-------------------------------------
$ 3,801 $(383,098) $ 581,008
=====================================
</TABLE>
24-b
<PAGE> 42
MCN ENERGY GROUP INC.
Financing Companies
Consolidating Statement of Operations
For the Year Ended December 31, 1999
(in Thousands)
<TABLE>
<CAPTION>
FINANCING
MCN MCN MCN MCN MCN COMPANIES
MICHIGAN FIN. I FIN. II FIN. III FIN. VI CONSOL.
-----------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATING REVENUES
Gas sales $ -- $ -- $ -- $ -- $ -- $ --
Transportation -- -- -- -- -- --
Other -- -- -- -- -- --
-----------------------------------------------------------------
-- -- -- -- -- --
-----------------------------------------------------------------
OPERATING EXPENSES
Cost of sales -- -- -- -- -- --
Operation and maintenance -- -- -- -- -- --
Depreciation, depletion and amortization -- -- -- -- -- --
Property and other taxes -- -- -- -- -- --
-----------------------------------------------------------------
-- -- -- -- -- --
-----------------------------------------------------------------
OPERATING INCOME (LOSS) -- -- -- -- -- --
-----------------------------------------------------------------
EQUITY IN EARNINGS OF JOINT VENTURES AND SUBSIDIARIES -- -- -- -- -- --
-----------------------------------------------------------------
OTHER INCOME AND (DEDUCTIONS)
Interest income 9,478 7,113 8,892 9,885 5,826 41,194
Interest on long-term debt -- -- -- -- -- --
Other interest expense -- -- -- -- -- --
Other -- -- -- -- -- --
-----------------------------------------------------------------
9,478 7,113 8,892 9,885 5,826 41,194
-----------------------------------------------------------------
NET INCOME $ 9,478 $ 7,113 $ 8,892 $ 9,885 $ 5,826 $41,194
=================================================================
</TABLE>
25
<PAGE> 43
MCN ENERGY GROUP INC.
FINANCING COMPANIES
CONSOLIDATING STATEMENT OF FINANCIAL POSITION
AS OF DECEMBER 31, 1999
(IN THOUSANDS)
<TABLE>
<CAPTION>
FINANCING
MCN MCN MCN MCN COMPANIES
MICHIGAN FIN. I FIN. II FIN. III CONSOL.
--------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash and temporary cash investments
at cost (which approximates market value) $ -- $ -- $ -- $ -- $ --
Accounts receivable -- -- -- -- --
Property taxes assessed applicable to
future periods -- -- -- -- --
Interest Receivable -- -- 1,136 -- 1,136
----------------------------------------------------------
-- -- 1,136 -- 1,136
----------------------------------------------------------
DEFERRED CHARGES AND OTHER ASSETS
Other 101,100 82,474 103,093 136,340 423,007
----------------------------------------------------------
101,100 82,474 103,093 136,340 423,007
----------------------------------------------------------
INVESTMENTS IN AND ADVANCES TO JOINT
VENTURES AND SUBSIDIARIES -- -- -- -- --
----------------------------------------------------------
PROPERTY, PLANT AND EQUIPMENT, AT COST -- -- -- -- --
Less: Accumulated depreciation and depletion -- -- -- -- --
----------------------------------------------------------
- - - - -
$101,100 $ 82,474 $104,229 $136,340 $424,143
==========================================================
</TABLE>
26
<PAGE> 44
MCN ENERGY GROUP INC.
FINANCING COMPANIES
CONSOLIDATING STATEMENT OF FINANCIAL POSITION
AS OF DECEMBER 31, 1999
(IN THOUSANDS)
<TABLE>
<CAPTION>
FINANCING
MCN MCN MCN MCN COMPANIES
MICHIGAN FIN. I FIN. II FIN. III CONSOL.
--------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
LIABILITIES AND CAPITALIZATION
CURRENT LIABILITIES
Accounts payable $ -- $ -- $ -- $ -- $ --
Notes payable -- -- -- -- --
Current portion of long-term debt and capital lease
obligations -- -- -- -- --
Federal income, property and other taxes
payable -- -- -- -- --
Dividends Payable -- -- 1,136 -- 1,136
--------------------------------------------------------
-- -- 1,136 -- 1,136
--------------------------------------------------------
DEFERRED CREDITS AND OTHER LIABILITIES
CAPITALIZATION
Preferred Securities 96,942 77,145 96,585 132,250 402,922
Common shareholders' equity 4,158 5,329 6,508 4,090 20,085
--------------------------------------------------------
101,100 82,474 103,093 136,340 423,007
--------------------------------------------------------
$101,100 $ 82,474 $104,229 $136,340 $424,143
========================================================
</TABLE>
27
<PAGE> 45
EXHIBIT B
MCN Energy Group Inc.
Financial Data Schedule
This schedule summarizes certain financial information for MCN Energy Group Inc.
<TABLE>
<CAPTION>
1999
MCN Energy Group Inc.
Item No. Caption Heading Consolidated (000s)
<S> <C> <C>
1 Total Assets $4,239,054
2 Total Operating 2,481,068
Revenues
3 Net Income (Loss) (30,848)
</TABLE>
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