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File No. ________________________
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.
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.
To Be Filed Annually Prior To March 1
NATROGAS, INCORPORATED
------------------------
(Name of Company)
hereby files with the Securities and Exchange Commission, pursuant to Rule 2,
its statement claiming exemption as a holding company from the provisions of the
Public Utility Holding Company Act of 1935, and submits the following
information:
1. Name, state of organization, location and nature of business of
claimant and every subsidiary thereof, other than any exempt wholesale generator
(EWG) or foreign utility company in which claimant directly or indirectly holds
an interest:
Natrogas, Inc. is a Minnesota corporation and has its principal office
at 3900 Washington Avenue North, Minneapolis, Minnesota 55412.
The claimant's principal businesses are the sale of liquid propane gas
in portable containers and the holding of all of the outstanding
Common Stock of Western Gas Utilities, Inc., a gas distribution
company, and North America Energy, Inc., a liquid propane wholesaler.
The claimant has two directly wholly-owned subsidiaries: Western Gas
Utilities, Inc., a Minnesota corporation, and North America Energy,
Inc., a Minnesota corporation.
2. A brief description of the properties of claimant and each of its
subsidiary public utility companies used for the generation, transmission and
distribution of electric energy for sale, or for the production, transmission
and distribution of natural or manufactured gas, including the location of
principal generating plants, transmission lines, producing fields, gas
manufacturing plants and electric and gas distribution facilities, including all
such properties which are outside the State in which claimant and its
subsidiaries are organized and all transmission or pipelines which deliver or
receive electric energy or gas at the borders of such State.
a. Description of properties of claimant: The claimant owns no such
property.
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b. The claimant's wholly owned subsidiary, Western Gas Utilities,
Inc., a gas distribution company, provides natural gas services. Its
public utility subsidiary properties consist primarily of
approximately 306 miles of distribution mains and related service
facilities located predominately in Minnesota and used to deliver
natural gas to customers in communities which have granted a franchise
to provide utility service.
3. The following information for the last calendar year with respect to
claimant and each of its subsidiary public utility companies:
a. Number of KWH of electric energy sold (at retail or wholesale),
and MCF of natural or manufactured gas distributed at retail.
Natrogas, Inc. Western Gas Utilities, Inc.
Claimant Subsidiary
NA 698,543 MCF
b. Number of KWH of electric energy and MCF of natural or
manufactured gas distributed at retail outside the state in which each
such company is organized.
Natrogas, Inc. Western Gas Utilities, Inc.
Claimant Subsidiary
NA 0 MCF
--------------------
c. Number of KWH of electric energy and MCF of natural or
manufactured gas sold at wholesale outside the state in which each
such company is organized or at the state line:
Natrogas, Inc. Western Gas Utilities, Inc.
Claimant Subsidiary
NA 0 MCF
--------------------
d. Number of KWH of electric energy and MCF of natural or
manufactured gas purchased outside the state in which each such
company is organized or at the state line:
Natrogas, Inc. Western Gas Utilities, Inc.
Claimant Subsidiary
NA 698,543 MCF
-2-
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4. The following information for the reporting period with respect to
claimant and each interest it holds directly or indirectly in an EWG or a
foreign utility company, stating monetary amounts in United States dollars:
a. Name, location, business address and description of the
facilities used by the EWG or foreign utility company for the
generation, transmission and distribution of electric energy for sale
or for the distribution at retail of natural or manufactured gas.
NA
b. Name of each system company that holds an interest in such EWG or
foreign utility company; and description of the interest held.
NA
c. Type and amount of capital invested, directly or indirectly, by
the holding company claiming exemption; and the direct or indirect
guaranty of the security of the EWG or foreign utility company by the
holding company claiming exemptions; and any debt or other financial
obligation for which there is recourse, directly or indirectly, to the
holding company claiming exemption or another system company, other
than the EWG or foreign utility company.
NA
d. Capitalization and earnings of the EWG or foreign utility company
during their reporting period.
NA
e. Identify any service, sales or construction contract(s) between
the EWG or foreign utility company and a system company, and describe
the services to be rendered or goods sold and fees or revenues under
such agreement(s).
NA
-3-
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EXHIBIT A
A consolidating statement of income and surplus of the claimant and its
subsidiary companies for the last fiscal year, together with a consolidating
balance sheet of claimant and its subsidiary companies as of the close of such
fiscal year.
See attached.
The above-named claimant has caused this statement to be duly executed on
its behalf by its authorized officer on this 25th day of February, 1998.
NATROGAS, INC.
---------------------------------
(Name of Claimant)
By /s/ Carolyn Wetterlin
------------------------------
Carolyn Wetterlin
Its Treasurer
CORPORATE SEAL
(none)
ATTEST:
/s/ Hartley Medin
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Hartley Medin, President
Name, title and address of the officer to whom notices and correspondence
concerning this statement should be addressed:
Carolyn Wetterlin, Treasurer
- ---------------------------------------------------
(name) (title)
3900 Washington Avenue North, Minneapolis, Minnesota, 55412
- -----------------------------------------------------------
(address)
WITH A COPY TO:
Stanley Efron
Henson & Efron, P.A.
1200 Title Insurance Building
400 Second Avenue South
Minneapolis, Minnesota 55401
-4-
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NATROGAS, INC. AND SUBSIDIARIES
CONSOLIDATING BALANCE SHEET
July 31, 1997
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------
Adjustments Western Gas North
and Natrogas, Utilities, America
ASSETS Consolidated Eliminations Inc. Inc. Energy, Inc.
------------ ------------ ----------- ----------- ------------
<S> <C> <C> <C> <C> <C>
CURRENT ASSETS
Cash $ 712,290 $ 0 $ 521,736 $ 112,930 $ 77,624
Accounts receivable 1,212,214 (13,867) 932,833 129,436 163,812
Inventories 674,229 0 495,670 61,117 117,442
Other 242,164 0 242,164 0 0
Income tax refunds receivable 76,110 (1,280) 74,939 2,451 0
Deferred income taxes 18,000 0 15,000 3,000 0
----------- ----------- ----------- ----------- -----------
TOTAL CURRENT ASSETS 2,935,007 (15,147) 2,282,342 308,934 358,878
PROPERTY AND EQUIPMENT 19,912,424 0 12,302,516 6,704,220 905,688
Less accumulated depreciation 10,056,325 0 8,234,019 1,539,071 283,235
----------- ----------- ----------- ----------- -----------
9,856,099 0 4,068,497 5,165,149 622,453
OTHER ASSETS
Receivable from subsidiaries 0 (2,564,552) 2,564,552 0 0
Investment in subsidiaries 0 (1,755,134) 1,755,134 0 0
Deferred income taxes 80,000 (169,000) 92,000 0 157,000
Other 47,007 0 46,531 0 476
----------- ----------- ----------- ----------- -----------
127,007 (4,488,686) 4,458,217 0 157,476
----------- ----------- ----------- ----------- -----------
$12,918,113 $(4,503,833) $10,809,056 $ 5,474,083 $ 1,138,807
----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- -----------
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Current maturities of long-term
debt $ 1,189,665 $ 0 $ 919,830 $ 256,000 $ 13,835
Accounts payable 1,356,644 (13,867) 773,977 247,926 348,608
Customer advances 1,336,662 0 1,078,552 258,110 0
Accrued expense 642,274 0 502,333 138,169 1,772
Income taxes payable 0 (1,280) 0 0 1,280
----------- ----------- ----------- ----------- -----------
TOTAL CURRENT LIABILITIES 4,525,245 (15,147) 3,274,692 900,205 365,495
OTHER LIABILITIES
Long-term debt 4,399,805 0 3,526,976 848,000 24,829
Payable to parent company 0 (2,564,552) 0 1,860,937 703,615
Deferred investment tax credits 14,675 0 0 14,675 0
Deferred income taxes 160,000 (169,000) 189,000 140,000 0
----------- ----------- ----------- ----------- -----------
4,574,480 (2,733,552) 3,715,976 2,863,612 728,444
COMMITMENTS AND CONTINGENCIES 0 0 0 0 0
STOCKHOLDERS' EQUITY
Common stock 23,623 (12,100) 23,623 12,000 100
Additional paid-in capital 0 (1,544,650) 0 994,650 550,000
Retained earnings (accumulated
deficit) 3,794,765 (198,384) 3,794,765 703,616 (505,232)
----------- ----------- ----------- ----------- -----------
3,818,388 (1,755,134) 3,818,388 1,710,266 44,868
----------- ----------- ----------- ----------- -----------
$12,918,113 $(4,503,833) $10,809,056 $ 5,474,083 $ 1,138,807
----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- -----------
</TABLE>
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NATROGAS, INC. AND SUBSIDIARIES
CONSOLIDATING STATEMENT OF INCOME AND RETAINED EARNINGS
Year Ended July 31, 1997
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
Adjustments Western Gas North
and Natrogas, Utilities, America
ASSETS Consolidated Eliminations Inc. Inc. Energy, Inc.
------------ ------------ ------------ ----------- ------------
<S> <C> <C> <C> <C> <C>
SALES $ 28,136,563 $ (173,415) $ 19,772,131 $ 4,262,192 $ 4,275,655
COST OF SALES 19,812,609 (173,415) 13,167,642 2,623,459 4,194,923
------------ ------------ ------------ ------------ ------------
GROSS PROFIT 8,323,954 0 6,604,489 1,638,733 80,732
OPERATING EXPENSE
Selling 3,625,330 0 3,213,928 172,334 239,068
General and administrative 3,576,267 0 2,653,280 879,897 43,090
------------ ------------ ------------ ------------ ------------
7,201,597 0 5,867,208 1,052,231 282,158
------------ ------------ ------------ ------------ ------------
OPERATING INCOME (LOSS) 1,122,357 0 737,281 586,502 (201,426)
OTHER INCOME (EXPENSE)
Equity in earnings of subsidiaries 0 (14,027) 14,027 0 0
Income from officer's life insurance 0 0 0 0
Interest expense (660,799) 255,847 (528,172) (318,383) (70,091)
Other 141,613 (255,847) 374,035 20,995 2,430
------------ ------------ ------------ ------------ ------------
(519,186) (14,027) (140,110) (297,388) (67,661)
------------ ------------ ------------ ------------ ------------
INCOME (LOSS) BEFORE INCOME TAXES 603,171 (14,027) 597,171 289,114 (269,087)
INCOME TAX EXPENSE (BENEFIT)
Current 65,000 0 60,000 4,000 1,000
Deferred 100,000 0 99,000 63,000 (62,000)
------------ ------------ ------------ ------------ ------------
165,000 0 159,000 67,000 (61,000)
------------ ------------ ------------ ------------ ------------
NET INCOME (LOSS) 438,171 (14,027) 438,171 222,114 (208,087)
RETAINED EARNINGS - BEGINNING OF YEAR 3,369,994 (184,357) 3,369,994 481,502 (297,145)
PURCHASE OF STOCK (13,400) 0 (13,400) 0 0
------------ ------------ ------------ ------------ ------------
RETAINED EARNINGS - END OF YEAR $ 3,794,765 $ (198,384) $ 3,794,765 $ 703,616 $ (505,232)
------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------
</TABLE>