--------------------------
OMB APPROVAL
--------------------------
OMB NUMBER: 3235-0145
Expires: October 31, 1997
Estimated average burden
hours per response...14.90
--------------------------
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Schedule 13D
Under the Securities Exchange Act of 1934
(Amendment No. 3)*
NATIONAL ENERGY GROUP, INC.
- --------------------------------------------------------------------------------
(Name of Issuer)
COMMON STOCK
- --------------------------------------------------------------------------------
(Title of Class of Securities)
635812100
- --------------------------------------------------------------------------------
(CUSIP Number)
ALVIN J. PORTNOY, KAYNE, ANDERSON INVESTMENT MANAGEMENT,
1800 AVENUE OF THE STARS, 2ND FLOOR, LOS ANGELES, CA 90067, (310) 556-2721
- --------------------------------------------------------------------------------
(Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communications)
August 29, 1996
- --------------------------------------------------------------------------------
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G
to report the acquisition which is the subject of this Schedule 13D, and is
filing this schedule because of Rule 13d-1(b)(3) or (4), check the following box
[ ].
Check the following box if a fee is being paid with the statement [ ].
(A fee is not required only if the reporting person: (1) has a previous
statement on file reporting beneficial ownership of more than five percent of
the class of securities described in Item 1; and (2) has filed no amendment
subsequent thereto reporting beneficial ownership of five percent or less of
such class.) (See Rule 13d-7.)
NOTE: Six copies of this statement, including all exhibits, should be
filed with the Commission. See Rule 13d-1(a) for other parties to whom copies
are to be sent.
*The remainder of this cover page shall be filled out for a reporting
person's initial filing on this form with respect to the subject class of
securities, and for any subsequent amendment containing information which would
alter disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not
be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange
Act of 1934 ("Act") or otherwise subject to the liabilities of that section of
the Act but shall be subject to all other provisions of the Act (however, see
the Notes).
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------- --------------------------------------------------
<S> <C> <C>
CUSIP NO. 635812100 13D Page 2 of 7 Pages
- ----------------------------------------------------------- --------------------------------------------------
- ----------- ------------------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
KAIM NON-TRADITIONAL, L.P., 95-4486379
- ----------- ------------------------------------------------------------------------------------------------------------------
2 CHECK APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ] (b ) [ ]
- ----------- ------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ----------- ------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
00
- ----------- ------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ]
- ----------- ------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
CALIFORNIA LIMITED PARTNERSHIP
- ----------- ------------------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER
N/A
NUMBER OF --------- ----------------------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY 6,825,104
OWNED BY EACH --------- ----------------------------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON N/A
WITH --------- ----------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
6,825,104
- ----------- ------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
6,825,104
- ----------- ------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES CERTAIN SHARES* [ ]
- ----------- ------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW
16.94%
- ----------- ------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IA
- ----------- ------------------------------------------------------------------------------------------------------------------
<FN>
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------- --------------------------------------------------
<S> <C> <C>
CUSIP NO. 635812100 13D Page 3 of 7 Pages
- ----------------------------------------------------------- --------------------------------------------------
- ----------- ------------------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
RICHARD A. KAYNE, ###-##-####
- ----------- ------------------------------------------------------------------------------------------------------------------
2 CHECK APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ] (b ) [ ]
- ----------- ------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ----------- ------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
00
- ----------- ------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ]
- ----------- ------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
U.S. CITIZEN
- ----------- ------------------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER
N/A
NUMBER OF --------- ----------------------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY 6,825,104
OWNED BY EACH --------- ----------------------------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON N/A
WITH --------- ----------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
6,825,104
- ----------- ------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
6,825,104
- ----------- ------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES CERTAIN SHARES* [ ]
- ----------- ------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW
16.94%
- ----------- ------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- ----------- ------------------------------------------------------------------------------------------------------------------
<FN>
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------- --------------------------------------------------
<S> <C> <C>
CUSIP NO. 635812100 13D Page 4 of 7 Pages
- ----------------------------------------------------------- --------------------------------------------------
- ----------- ------------------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
ARBCO ASSOCIATES, L.P., 95-3214739
- ----------- ------------------------------------------------------------------------------------------------------------------
2 CHECK APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ] (b ) [ ]
- ----------- ------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ----------- ------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
00
- ----------- ------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ]
- ----------- ------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
- ----------- ------------------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER
N/A
NUMBER OF --------- ----------------------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY 2,590,278
OWNED BY EACH --------- ----------------------------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON N/A
WITH --------- ----------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
2,590,278
- ----------- ------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,590,278
- ----------- ------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES CERTAIN SHARES* [ ]
- ----------- ------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW
6.43%
- ----------- ------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
- ----------- ------------------------------------------------------------------------------------------------------------------
<FN>
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------- --------------------------------------------------
<S> <C> <C>
CUSIP NO. 635812100 13D Page 5 of 7 Pages
- ----------------------------------------------------------- --------------------------------------------------
- ----------- ------------------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
KAYNE, ANDERSON NON-TRADITIONAL INVESTMENTS, L.P., 95-4198602
- ----------- ------------------------------------------------------------------------------------------------------------------
2 CHECK APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ] (b ) [ ]
- ----------- ------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ----------- ------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
00
- ----------- ------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ]
- ----------- ------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
- ----------- ------------------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER
N/A
NUMBER OF --------- ----------------------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY 1,876,047
OWNED BY EACH --------- ----------------------------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON N/A
WITH --------- ----------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
1,876,047
- ----------- ------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,876,047
- ----------- ------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES CERTAIN SHARES* [ ]
- ----------- ------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW
4.66%
- ----------- ------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
- ----------- ------------------------------------------------------------------------------------------------------------------
<FN>
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------- --------------------------------------------------
<S> <C> <C>
CUSIP NO. 635812100 13D Page 6 of 7 Pages
- ----------------------------------------------------------- --------------------------------------------------
- ----------- ------------------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
OFFENSE GROUP ASSOCIATES, L.P., 95-4111006
- ----------- ------------------------------------------------------------------------------------------------------------------
2 CHECK APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ] (b ) [ ]
- ----------- ------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ----------- ------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
00
- ----------- ------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ]
- ----------- ------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
- ----------- ------------------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER
00
NUMBER OF --------- ----------------------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY 1,916,348
OWNED BY EACH --------- ----------------------------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON N/A
WITH --------- ----------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
1,916,348
- ----------- ------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,916,348
- ----------- ------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES CERTAIN SHARES* [ ]
- ----------- ------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW
4.76%
- ----------- ------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
- ----------- ------------------------------------------------------------------------------------------------------------------
<FN>
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
</FN>
</TABLE>
<PAGE>
Item 5. Interest in Securities of the Issuer
(a) State the aggregate number and percentage of the class of securities
identified pursuant to Item 1 (which may be based on the number of
securities outstanding as contained in the most recently available filing
with the Commission by the issuer unless the filing person has reason to
believe such information is not current) beneficially owned (identifying
those shares which there is a right to acquire) by each person named in
Item 2. The above mentioned information should also be furnished with
respect to persons who, together with any of the persons named in Item 2,
comprise a group within the meaning of Section 13(d)(3) of the Act;
(b) For each person named in response to paragraph (a), indicate the number of
shares as to which there is sole power to vote or to direct the vote,
shared power to vote or to direct the vote, sole power to dispose or to
direct the disposition, or shared power to dispose or to direct the
disposition. Provide the applicable information required by Item 2 with
respect to each person with whom the power to vote or to direct the vote or
to dispose or direct the dispostion is shared;
(c) Describe any transactions in the class of securities reported on that were
effected during the past sixty days or since the most recent filing on
Schedule 13D (Sec. 240.13d-191), whichever is less, by the persons named in
response to paragraph (a).
Instruction. The discription of a transaction required by Item 5(c) shall
include, but not necessarily be limited to: (1) the identity of the person
covered by Item 5(c) who effected the transaction; (2) the date of the
transaction; (3) the amount of securities involved; (4) the price per share
or unit; and (5) where and how the transaction was effected.
(d) If any other person is known to have the right to receive or the power to
direct the receipt of dividends from, or the proceeds from the sale of,
such securities, a statement to that effect should be included in response
to this item and, if such interest relates to more than five percent of the
class, such person should be identified. A listing of the shareholders of
an investment company registered under the Investment Company Act of 1940
or the beneficiaries of an employee benefit plan, pension fund or endowment
fund is not required.
(e) If applicable, state the date on which the reporting person ceased to be
the beneficial owner of more than five percent of the class of securities.
Instruction. For computations regarding securities which represent a right
to acquire an underlying security, see Rule 13d-3(d)(1) and the note
thereto.
Item 6. Contracts, Arrangements, Understandings or Relationships with Respect to
Securities of the Issuer.
Describe any contracts, arrangements, understandings or relationships
(legal or otherwise) among the persons named in Item 2 and between such persons
and any person with respect to any securities of the issuer, including but not
limited to transfer or voting of any of the securities, finder's fees, joint
ventures, loan or option arrangements, put or calls, guarantees of profits,
division of profits or loss, or the giving or withholding of proxies, naming the
persons with whom such contracts, arrangements, understandings or relationships
have been entered into. Include such information for any of the securities that
are pledged or otherwise subject to a contingency the occurrence of which would
give another person voting power or investment power over such securities except
that disclosure of standard default and similar provisions contained in loan
agreements need not be included.
Item 7. Material to Be Filed as Exhibits
The following shall be filed as exhibits: copies of written agreements
relating to the filing of joint acquisition statements as required by Rule
13d-1(f) (Sec. 240.13d-1(f) and copies of all written agreements, contracts,
arrangements, understandings, plans or proposals relating to (1) the borrowing
of funds to finance the acquisition as disclosed in Item 3; (2) the acquisition
of issuer control, liquidation, sale of assets, merger, or change in business or
corporate structure or any other matter as disclosed in Item 4; and (3) the
transfer or voting of the securities, finder's fees, joint ventures, options,
puts, calls, guarantees of loans, guarantees against loss or of profit, or the
giving or withholding of any proxy as disclosed in Item 6.
Signature
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
- ----------------------------------- ---------------------------------------
Date Signature
ALVIN J. PORTNOY, ON BEHALF OF THE
REPORTING PERSONS
---------------------------------------
Name/Title
7
<PAGE>
United States
Securities and Exchange Commission
Schedule 13D
*********************
Item 1. Security and Issuer
Common Stock, with $0.01 Par Value.
National Energy Group, Inc.
1400 One Energy Square
4925 Greenville Ave.
Dallas, TX 75206
Item 2. Identity and Background
a. Richard A. Kayne
1800 Avenue of the Stars, 2nd Floor
Los Angeles, CA 90067
Mr. Kayne is a U.S. Citizen
Principal occupation:
President, Chief Executive Officer and Director of KA Associates,
Inc.(KA), a registered broker/dealer, and Kayne, Anderson Investment
Management, Inc., the General Partner of KAIM Non-Traditional,
L.P.(KAIM) a registered investment adviser under the Investment
Advisers Act of 1940. KA and KAIM's principal business address is 1800
Avenue of the Stars, 2nd Floor, Los Angeles, CA 90067.
During the past five years, Mr. Kayne and KA Associates,
Inc. have not been convicted in a criminal proceeding
(excluding traffic violations or similar misdemeanors).
b. Kayne, Anderson Investment Management, Inc.
1800 Avenue of the Stars, 2nd Floor
Los Angeles, CA 90067
Principal Occupation: General Partner of two investment
advisors registered under the
Investment Advisors Act
During the past five years, Kayne, Anderson Investment Management, Inc.
has not been convicted in a criminal proceeding nor has it been a party
to a civil proceeding of a judicial or administrative body or the
subject of any judgements, decrees or final orders from the regulatory
bodies.
The officers are as follows:
<PAGE>
John E. Anderson - Director
Richard A. Kayne - Director, C.E.O. and President
0, Los Angeles, CA 90067. Mr.
Anderson is also Director of KA Associates, Inc. (KA), a registered
broker/dealer, and Kayne, Anderson Investment Management, Inc., the General
Partner of KAIM NonTraditional, L.P. (KAIM), a registered investment adviser
under the Investment Advisers Act of 1940. KA and KAIM's principal business
address is 1800 Avenue of the Stars, 2nd Floor, Los Angeles, CA 90067.
During the past five years, Mr. Anderson has not been convicted in a
criminal proceeding (excluding traffic violations or similar
misdemeanors).
Richard A. Kayne (see Item 2(a) above.)
Alvin J. Portnoy
1800 Avenue of the Stars, 2nd Floor
Los Angeles, CA 90067
Mr. Portnoy is a U.S. Citizen
Corporate Secretary of KA Associates, Inc.(KA), a registered
broker/dealer, and Executive Vice President of Kayne, Anderson
Investment Management, Inc., the General Partner of KAIM
Non-Traditional, L.P. (KAIM), a registered investment adviser under the
Investment Advisers Act of 1940. KA and KAIM's principal business
address is 1800 Avenue of the Stars, 2nd Floor, Los Angeles, CA 90067.
During the past five years, Mr. Portnoy has not been convicted in a
criminal proceeding (excluding traffic violations or similar
misdemeanors).
William T. Miller
1800 Avenue of the Stars, 2nd Floor
Los Angeles, CA 90067
Mr. Miller is a U.S. Citizen
<PAGE>
Chief Financial Officer of KA Associates, Inc.(KA), a registered
broker/dealer, and Kayne, Anderson Investment Management, Inc., the
General Partner of KAIM NonTraditional, L.P. (KAIM), a registered
investment adviser under the Investment Advisers Act of 1940. KA and
KAIM's principal business address is 1800 Avenue of the Stars, 2nd
Floor, Los Angeles, CA 90067.
During the past five years, Mr. Miller has not been convicted in a
criminal proceeding (excluding traffic violations or similar
misdemeanors).
c. KAIM Non-Traditional, L.P.
1800 Avenue of the Stars, 2nd Floor
Los Angeles, CA 90067
Principal Occupation: A Registered Investment Advisor
under the Investment Advisors Act
During the past five years, KAIM Non-Traditional, L.P. has not been
convicted in a criminal proceeding nor has it been a party to a civil
proceeding of a judicial or administrative body or the subject of any
judgements, decrees or final orders from the regulatory bodies.
d. Arbco Associates, L.P.
1800 Avenue of the Stars, 2nd Floor
Los Angeles, CA 90067
Organized as a California Limited Partnership.
e. Offense Group Associates, L.P.
1800 Avenue of the Stars, 2nd Floor
Los Angeles, CA 90067
Organized as a California Limited Partnership.
f. Kayne, Anderson Non-Traditional Investments, L.P.
1800 Avenue of the Stars, 2nd Floor
Los Angeles, CA 90067
Organized as a California Limited Partnership.
Item 3. Source and Amount of Funds or Other Consideration
Investment partnership funds were derived by a combination of cash contributions
to the partnerships by the limited partners and, additionally, from the use of
margin by certain of the partnerships.
Item 4. Purpose of Transaction
The preferred shares of the issuer were purchased for investment
purposes. Richard A. Kayne and KAIM Non-Traditional, L.P., on
<PAGE>
behalf of its managed accounts, will consider making further sales or purchases
of shares of the issuer.
Item 5. Interest in Securities of the Issuer
a. - b. Richard A. Kayne has shared dispositive power and shared voting power
with KAIM Non-Traditional, L.P. of 6,825,104 shares representing 16.94% of the
issuer (created from the potential conversion of the Series B, C and E
Convertible Preferred Stock and the exercise of Warrants). Arbco Associates has
shared dispositive power and shared voting power with Richard A. Kayne and KAIM
Non-Traditional, L.P. of 2,590,278 shares representing 6.43% of the issuer.
Offense Group Associates has shared dispositive power and shared voting power
with Richard A. Kayne and KAIM Non-Traditional, L.P. of 1,916,348 shares
representing 4.76% of the issuer. Kayne, Anderson Non-Traditional Investments
has shared dispositive power and shared voting power with Richard A. Kayne and
KAIM Non-Traditional, L.P. of 1,876,047 shares representing 4.66% of the issuer.
c. The Series E Convertible Preferred Stock and Warrants were acquired through a
private placement in a transaction between the issuer and four investment
partnerships managed by KAIM NonTraditional, L.P. Purchases of the shares were
made as follows:
Where/how
Date Type # of shares # of warrants Price transaction effected
- ---- ---- ----------- ------------- ----- --------------------
08/29/96 Buy 31,000(1) 217,000(2) $3,100,000 Private Placement
(1) Convertible into 44.44 shares of Common Stock for each
share of Convertible Preferred Series "E."
(2) Exercisable into 1 share of Common stock for each
warrant.
d. Not applicable
e. Not applicable
Item 6. Contracts, Arrangements, Understandings or
Relationships with Respect to Securities of the Issuer.
Not applicable
Item 7. Materials to be Filed as Exhibits
Exhibit 1 - Joint Filing Agreement
Exhibit 2 - Power of Attorney
Exhibit 3 - Schedule of Shares Owned
EXHIBIT 1
JOINT FILING AGREEMENT PURSUANT TO RULE 13d-1(f)(1)
This agreement is made pursuant to Rule 13d-1(f)(1) under the Securities
Exchange Act of 1934 (the "Act") by and between [among] the parties listed
below, each referred to herein as a "Joint Filer." The Joint Filers agree that a
statement of beneficial ownership as required by Section 13(d) of the Act and
the Rules thereunder may be filed on each of their behalf on Schedule 13D or
Schedule 13G, as appropriate, and that said joint filing may thereafter be
amended by further joint filings. The Joint Filers state that they each satisfy
the requirements for making a joint filing under Rule 13d-1.
--------------------------------
Richard A. Kayne, by
Alvin J. Portnoy (see attached Power of Attorney)
--------------------------------
Kayne, Anderson Investment
Management, Inc., by
Alvin J. Portnoy, Executive Vice President
--------------------------------
KAIM Non-Traditional, L.P., by
Alvin J. Portnoy, E.V.P. of the Corporate General Partner
--------------------------------
Arbco Associates, L.P.
Kayne, Anderson Non-Traditional Investments, L.P.
Offense Group Associates, by
Alvin J. Portnoy, Executive Vice President of the Corporate
General Partner,
Kayne, Anderson Investment Management, Inc.
POWER OF ATTORNEY FOR
SCHEDULES 13D AND 13G AND FORMS 13F
I, Richard A. Kayne, in my individual capacity and as the principal
executive officer of KA Associates, Inc. and Kayne, Anderson Investment
Management, Inc. hereby appoint Alvin J. Portnoy as attorney-in-fact and agent,
in all capacities, to execute, on my behalf and on behalf of the above-listed
corporations for which I serve as the principal executive officer, and to file
with the appropriate issuers, exchanges and regulatory authorities, any and all
Schedules 13D, Schedules 13G and Forms 13F and documents relating thereto and
requests for confidential treatment of information contained therein. I hereby
grant to said attorney-in-fact full authority to do every act necessary to be
done in order to effectuate the same as fully, to all intents and purposes, as I
could if personally present, thereby ratifying all that said attorney-in-fact
and agent may lawfully do or cause to be done by virtue thereof.
I hereby execute this Power of Attorney as of this _____ day of
________________, 19____.
_________________________________
Richard A. Kayne
EXHIBIT 3
SCHEDULE 13D - NATIONAL ENERGY GROUP, INC.
Shares
------
KAIM Non-Traditional, L.P.
(Kayne, Anderson Investment
Management, Inc., G.P.)
- Managed Investment
Partnerships 6,825,104 (1)
---------
Total 6,825,104
(1) Results from the potential conversion of 40,000 shares of Series "C"
Convertible Preferred Stock, the potential conversion of 50,000 shares of
Series B Convertible Preferred Stock, the potential conversion of 31,000
shares of Series E Convertible Preferred Stock, and the exercise of 217,000
Warrants.
Mr. Kayne disclaims beneficial ownership as to all the shares except 225,712
shares held by virtue of his direct general or limited partners' interest in the
partnerships and 39,678 shares by virtue of his indirect interest in the general
partner's interest in the partnership.
08/29/96
