Washington, D.C.
For the Fiscal Year Ended September 30, 2001
Filed Pursuant to the
Public Utility Holding Company Act of 1935
by
10 Lafayette Square, Buffalo, N.Y. 14203
NATIONAL FUEL GAS COMPANY
FORM U5S - ANNUAL REPORT
For the Fiscal Year Ended September 30, 2001
TABLE OF CONTENTS
Page ---- ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF SEPTEMBER 30, 2001 3 ITEM 2. ACQUISITIONS OR SALES OF UTILITY ASSETS 8 ITEM 3. ISSUE, SALE, PLEDGE, GUARANTEE OR ASSUMPTION OF SYSTEM SECURITIES 8 ITEM 4. ACQUISITION, REDEMPTION OR RETIREMENT OF SYSTEM SECURITIES 9 ITEM 5. INVESTMENTS IN SECURITIES OF NONSYSTEM COMPANIES 10 ITEM 6. OFFICERS AND DIRECTORS Part I. Names, principal business address and positions held as of September 30, 2001 11 Part II. Financial connections as of September 30, 2001 15 Part III. Compensation and other related information 15 ITEM 7. CONTRIBUTIONS AND PUBLIC RELATIONS 21 ITEM 8. SERVICE, SALES AND CONSTRUCTION CONTRACTS Part I. Intercompany sales and services (1) Salaries of officers of the Registrant 22 (2) Services rendered by Statutory Subsidiaries 23 (3) Services rendered by Registrant 29 Part II. Contracts to purchase services or goods between any System company and any affiliate 30 Part III. Employment of any person by any System company for the performance on a continuing basis of management services 30 ITEM 9. WHOLESALE GENERATORS AND FOREIGN UTILITY COMPANIES 30 ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS Financial Statements (Index) 35 Exhibits 87 SIGNATURE 98
Number of Common Percent of Issuer Owner's Name of Company Shares Owned Voting Power Book Value Book Value --------------- ---------------- ------------ ---------- ---------- Registrant: (Thousands of Dollars) National Fuel Gas Company (Parent, Company or Registrant) - - - - Statutory Subsidiaries: National Fuel Gas Distribution Corporation (Distribution Corporation) (Note 1) 2,000 100% $512,400 $512,400 Unsecured Debt (Note 9) - - $373,600 $373,600 National Fuel Gas Supply Corporation (Supply Corporation) (Note 2) 1,013,802 100% $289,411 $289,411 Unsecured Debt (Note 9) - - $148,400 $148,400 Seneca Resources Corporation (Seneca Resources) (Note 3) 100,000 100% $ 81,744 $ 81,744 Unsecured Debt (Note 9) - - $911,900 $911,900 National Fuel Exploration Corp. (NFE) 115,000,000 100% $(32,171) $(32,171) Unsecured Debt (Note 9) - - $253,005 $253,005 National Fuel Exploration Acquisition Corp. (Note 3) 100 100% $(75,231) $(75,231) Player Resources, Ltd. (Note 3) - 100% $(75,231) $(75,231) Empire Exploration Company, Empire 1983 Drilling Program, Empire 1983 Joint Venture (Note 10) N/A N/A $ 970 $ 970 Highland Forest Resources, Inc. (Highland) (Note 4) 4,500 100% $ 8,683 $ 8,683 Unsecured Debt (Note 9) - - $ 62,900 $ 62,900 Data-Track Account Services, Inc. (Data-Track) (Note 5) 1,000 100% $ 768 $ 768 Leidy Hub, Inc. (Leidy Hub) (Note 6) 4,000 100% $ 730 $ 730 National Fuel Resources, Inc. (NFR) (Note 7) 10,000 100% $ 30,287 $ 30,287 Unsecured Debt (Note 9) - - $ 19,000 $ 19,000 Horizon Energy Development, Inc. (Horizon) (Notes 8 and 11-12) 4,750 100% $ 8,855 $ 8,855 Unsecured Debt (Note 9) - - $103,700 $103,700 Sceptre Power Company *(Note 11) N/A 100% $ 3,948 $ 3,948 Horizon Energy Holdings, Inc. (HEHI)(Note 12) 2,000 100% $112,492 $112,492 Horizon Energy Development B.V. (HED B.V.)(Note 12) 400 100% $112,492 $112,492 Unsecured Debt (Note 9) - - $ 120 $ 120 United Energy, a.s. . (UE) (Note 12) 8,405,037 85.16% $104,366 $112,819 Unsecured Debt (Note 9) - - $ 45,575 $ 45,575 Teplarna Liberec, a.s. (TL) (Note 12) 70 70% $ 9,181 $ 8,187
Number of Common Percent of Issuer Owner's Name of Company Shares Owned Voting Power Book Value Book Value --------------- ---------------- ------------ ---------- ---------- Registrant: (Thousands of Dollars) Lounske tepelne Hospodarstvi, s.r.o (LTH) (Note 12) N/A 100% $ 53 $ 53 Teplo Branany, s.r.o. (TB) (Note 12) N/A 49% $ 1 $ 1 ENOP Company, s.r.o. (ENOP)(Note 12) N/A 100% $ 142 $ 242 Horizon Energy Development, s.r.o. (HED) (Note 12) N/A 100% $ 2,335 $ 2,335 Power Development, s.r.o. (PD) (Note 12) N/A 100% $ 2 $ 2 Teplarna Kromeriz a.s. (Kromeriz) (Note 12) 375 100% $ (63) $ (63) Unsecured Debt (Note 9) - - $ 82 $ 82 Upstate Energy Inc. (Upstate) (Note 13) 1,000 100% $ (215) $ (215) Unsecured Debt (Note 9) - - $ 3,600 $ 3,600 Seneca Independence Pipeline Company (SIP) (Note 14) 1,000 100% $ 468 $ 468 Unsecured Debt (Note 9) - - $ 13,200 $ 13,200 Niagara Independence Marketing Company (NIM) (Note 15) 1,000 100% $ 1 $ 1 Horizon Power, Inc. (Power) (Note 16) 1,000 100% $ 5,736 $ 5,736 Unsecured Debt (Note 9) - - $ 12,200 $ 12,200 Seneca Energy II, LLC (Seneca Energy) N/A 50% (Note 16) (Note 16) Model City Energy, LLC (Model City) N/A 50% (Note 16) (Note 16) Energy Systems North East, LLC (ESNE) N/A 50% (Note 16) (Note 16)Notes:
Principal Issuer Owner's Name of Company Amount Book Book (Issuer) Security Owned by Registrant Owed Value Value --------------- ---------------------------- ---------- ---------- ------------ (Thousands of Dollars) ------------------------------------- Distribution Corporation Intercompany Notes: 7.48% Due February 18, 2003 $ 50,000 $ 50,000 $ 50,000 7.99% Due February 1, 2004 100,000 100,000 100,000 7.46% Due March 30, 2023 49,000 49,000 49,000 8.55% Due July 15, 2024 20,000 20,000 20,000 7.50% Due June 13, 2025 50,000 50,000 50,000 6.26% Due August 12, 2027 30,000 30,000 30,000 3.25% System Money Pool(1) 74,600 74,600 74,600 ---------- ---------- ---------- 373,600 373,600 373,600 ---------- ---------- ---------- Supply Corporation Intercompany Notes: 7.99% Due February 1, 2004 25,000 25,000 25,000 6.95% Due August 1, 2004 50,000 50,000 50,000 8.55% Due July 15, 2024 30,000 30,000 30,000 6.26% Due August 12, 2027 10,000 10,000 10,000 3.25% System Money Pool(1) 33,400 33,400 33,400 ---------- ---------- ---------- 148,400 148,400 148,400 ---------- ---------- ---------- Seneca Resources Intercompany Notes: 7.48% Due February 18,2003 100,000 100,000 100,000 6.95% Due August 1, 2004 50,000 50,000 50,000 6.39% Due May 27, 2008 120,000 120,000 120,000 6.18% Due March 1, 2009 100,000 100,000 100,000 7.70% Due October 22, 2010 200,000 200,000 200,000 6.26% Due August 12, 2027 50,000 50,000 50,000 3.25% System Money Pool(1) 291,900 291,900 291,900 ---------- ---------- ---------- 911,900 911,900 911,900 ---------- ---------- ---------- NFE 3.25% Line of Credit 253,005 253,005 253,005 3.98% Short-Term Bank Loan 15,675 15,675 15,675 ---------- ---------- ---------- 268,680 268,680 268,680 ---------- ---------- ---------- Highland 3.25% System Money Pool(1) 62,900 62,900 62,900 ---------- ---------- ---------- Horizon Intercompany Notes: 6.26% Due August 12, 2027 10,000 10,000 10,000 6.39% Due May 27, 2008 80,000 80,000 80,000 3.66% Line of credit(2) 13,700 13,700 13,700 ---------- ---------- ---------- 103,700 103,700 103,700 ---------- ---------- ---------- Horizon Energy Development B.V. (HED B.V.) 3.66% Line of Credit(2) 120 120 120 ---------- ---------- ---------- UE 5.85%(3) Payable Quarterly Through June 2006 2,283 2,283 2,283 5.55% Short-Term Bank Loan 10,392 10,392 10,392 5.56% Short-Term Bank Loan 588 588 588 5.40% Short-Term Bank Loan 3,118 3,118 3,118 5.535% (4) Payable March 2001- December 2004 15,765 15,765 15,765 6.35% Payable July 2001- September 2006 13,429 13,429 13,429 ---------- ---------- ---------- 45,575 45,575 45,575 ---------- ---------- ----------
Principal Issuer Owner's Name of Company Amount Book Book (Issuer) Security Owned by Registrant Owed Value Value --------------- ---------------------------- ---------- ---------- ----------- (Thousands of Dollars) ------------------------------------ Kromeriz 8.0% Intercompany Note 82 82 82 ---------- ---------- ---------- Upstate 3.25% System Money Pool(1) 3,600 3,600 3,600 ---------- ---------- ---------- SIP 3.25% System Money Pool(1) 13,200 13,200 13,200 ---------- ---------- ---------- NFR 3.25% System Money Pool (1) 19,000 19,000 19,000 ---------- ---------- ---------- Horizon Power Inc. 3.60% Line of Credit(2) 12,200 12,200 12,200 ---------- ---------- ---------- $1,962,957 $1,962,957 $1,962,957 ========== ========== ==========
None during fiscal year ended September 30, 2001.
ITEM 3. ISSUE, SALE, PLEDGE, GUARANTEE OR ASSUMPTION OF SYSTEM SECURITIESName of Company Acquiring, Redeeming Number of Shares or or Retiring Principal Amount Commission ---------------------------- Name of Issuer and Title of Issue Securities Acquired Redeemed Retired Consideration Authorization --------------------------------- ----------- -------- -------- ------- ------------- ------------- (Thousands of Dollars) ------------------------------------ Registered Holding Company: Registrant: 7.50% Note due November 22, 2010 Registrant 200,000 File No. 70-9153 Subsidiaries of Registered Holding Company: Seneca Resources: 7.70% Note maturing Seneca November 22, 2010 Resources 200,000 200,000 File No. 70-9153ITEM 5. INVESTMENTS IN SECURITIES OF NONSYSTEM COMPANIES
Number of Aggregate 1. Name of Owner Persons Business of Persons Investment ------------- --------- ------------------- ----------None.
Part I. Names, principal business address and positions held as of September 30, 2001
Names of System Companies with Which Connected ------------------------------------------------------------------------ National National Highland Fuel Gas Fuel Gas Seneca Forest Distribution Supply Resources Resources Registrant Corp. Corp. Corp.* Inc. ------------------------------------------------------------------------- B. J. Kennedy Buffalo, NY (1) | D, COB, CEO, s | D, COB, s | D, COB, s | D, COB, s | s | ------------------------------------------------------------------------------------------------------------- B. S. Lee Des Plaines, IL (2) | D, df | - | - | - | - | ------------------------------------------------------------------------------------------------------------- G. L. Mazanec Houston, TX (3) | D, df | - | - | - | - | ------------------------------------------------------------------------------------------------------------- J. F. Riordan Des Plaines, IL (17)| D, df | - | - | - | - | ------------------------------------------------------------------------------------------------------------- E. T. Mann Buffalo, NY (1) | D, df | - | - | - | - | ------------------------------------------------------------------------------------------------------------- R. T. Brady Buffalo, NY (4) | D, df | - | - | - | - | ------------------------------------------------------------------------------------------------------------- W. J. Hill Buffalo, NY (1) | D, df | D | - | - | - | ------------------------------------------------------------------------------------------------------------- J. V. Glynn Niagara Falls, NY (9) | D, df | - | - | - | - | ------------------------------------------------------------------------------------------------------------- P. C. Ackerman Buffalo, NY (1) | D, P, s | D, s | EVP, s | D, s | D, s | ------------------------------------------------------------------------------------------------------------- J. R. Peterson Buffalo, NY (1) | AS, s | - | GC, s | - | - | ------------------------------------------------------------------------------------------------------------- J. A. Beck Houston, TX (5) | - | - | - | D, P, s | P, D | ------------------------------------------------------------------------------------------------------------- W. M. Petmecky Houston, TX (5) | - | - | - | SVP, S, s | S | ------------------------------------------------------------------------------------------------------------- D. A. Brown Houston, TX (5) | - | - | - | VP, s | - | ------------------------------------------------------------------------------------------------------------- G. E. Klefstad Houston, TX (5) | - | - | - | VP, s | - | ------------------------------------------------------------------------------------------------------------- E. E. Wassell Houston, TX (5) | - | - | - | VP, s | - | ------------------------------------------------------------------------------------------------------------- J. F. McKnight Houston, TX (5) | - | - | - | VP, s | - | ------------------------------------------------------------------------------------------------------------- B. L. McMahon Santa Paula, CA (6) | - | - | - | SVP, s | - | ------------------------------------------------------------------------------------------------------------- A. M. Cellino Buffalo, NY (1) | S, s | SVP, S, s | s | - | - | ------------------------------------------------------------------------------------------------------------- P. M. Ciprich Buffalo, NY (1) | - | AS, GC, s | - | - | - | ------------------------------------------------------------------------------------------------------------- W. E. DeForest Buffalo, NY (1) | - | SVP, D, s | - | - | - | ------------------------------------------------------------------------------------------------------------- B. H. Hale Buffalo, NY (1) | - | - | D, SVP, s | - | - | ------------------------------------------------------------------------------------------------------------- J. P. Pawlowski Buffalo, NY (1) | T, s | D, SVP, T, s | T, S, s | s | s | ------------------------------------------------------------------------------------------------------------- J. R. Pustulka Buffalo, NY (1) | - | s | SVP, s | s | - | ------------------------------------------------------------------------------------------------------------- J. D. Ramsdell Buffalo, NY (1) | - | SVP, s | s | s | - | ------------------------------------------------------------------------------------------------------------- W. A. Ross Buffalo, NY (1) | - | - | D, VP, s | - | - | ------------------------------------------------------------------------------------------------------------- D. J. Seeley Buffalo, NY (1) | - | SVP, s | P, D, s | - | - | ------------------------------------------------------------------------------------------------------------- D. F. Smith Buffalo, NY (1) | - | P, D, s | SVP, s | D | - | ------------------------------------------------------------------------------------------------------------- R. J. Tanski Buffalo, NY (1) | - | SVP, C, s | s | s | s | ------------------------------------------------------------------------------------------------------------- G. T. Wehrlin Buffalo, NY (1) | C, s | - | - | C | - | ------------------------------------------------------------------------------------------------------------- C. M. Carlotti Erie, PA (16)| - | VP, s | - | - | - | ------------------------------------------------------------------------------------------------------------- R. T. Evans Houston, TX (5) | - | - | - | VP, s | - | ------------------------------------------------------------------------------------------------------------- T. L. Atkins Houston, TX (5) | - | - | - | T, AS, s | T | ------------------------------------------------------------------------------------------------------------- D. L. DeCarolis Williamsville, NY (12)| - | - | - | - | - | ------------------------------------------------------------------------------------------------------------- J. F. Kronenwetter Buffalo, NY (1) | - | - | - | - | - | ------------------------------------------------------------------------------------------------------------- R. E. Klein Buffalo, NY (1) | - | AC, s | s | s | s | ------------------------------------------------------------------------------------------------------------- S. Wagner Buffalo, NY (1) | s | AT, s | s | s | s | ------------------------------------------------------------------------------------------------------------- B. Heine Buffalo, NY (1) | - | AVP, s | - | - | - | ------------------------------------------------------------------------------------------------------------- J. Lesch Buffalo, NY (18)| - | AVP, s | - | - | - | ------------------------------------------------------------------------------------------------------------- D. Wassum Buffalo, NY (1) | - | - | - | - | - | ------------------------------------------------------------------------------------------------------------- R. C. Kraemer Buffalo, NY (1) | - | - | - | - | - | ------------------------------------------------------------------------------------------------------------- Position Symbol Key ------------------------------------------------------------------------ COB - Chairman of the Board of Directors S - Secretary CEO - Chief Executive Officer AS - Assistant Secretary P - President C - Controller EVP - Executive Vice President AC - Assistant Controller SVP - Senior Vice President D - Director VP - Vice President s - Salary AVP - Assistant Vice President T - Treasurer GC - General Counsel AT - Assistant Treasurer df - Director's Fees
See page 14 for Notes.
Data- Track National Horizon Niagara Seneca Account Fuel Energy Upstate Indep. Indep. Horizon Services, Resources, Development, Leidy Hub, Energy Marketing Pipeline Power Inc. Inc. Inc.** Inc. Inc. Co. Co. Inc.*** ---------------------------------------------------------------------------------------------- s | s | s | D | - | D, COB | D, COB | - | ---------------------------------------------------------------------------------------------- - | - | - | - | - | - | - | - | ---------------------------------------------------------------------------------------------- - | - | - | - | - | - | - | - | ---------------------------------------------------------------------------------------------- - | - | - | - | - | - | - | - | ---------------------------------------------------------------------------------------------- - | - | - | - | - | - | - | - | ---------------------------------------------------------------------------------------------- - | - | - | - | - | - | - | - | ---------------------------------------------------------------------------------------------- - | - | - | - | - | - | - | - | ---------------------------------------------------------------------------------------------- - | - | - | - | - | - | - | - | ---------------------------------------------------------------------------------------------- D, P | - | P, D, s | - | - | - | - | - | ---------------------------------------------------------------------------------------------- - | - | - | - | - | - | s | - | ---------------------------------------------------------------------------------------------- - | - | - | - | P, D | D, P | - | - | ---------------------------------------------------------------------------------------------- S, T | S, T | - | - | D, S | S | - | S, T | ---------------------------------------------------------------------------------------------- - | - | - | - | - | - | - | - | ---------------------------------------------------------------------------------------------- - | - | - | - | - | - | - | - | ---------------------------------------------------------------------------------------------- - | - | - | - | - | - | - | - | ---------------------------------------------------------------------------------------------- - | - | - | - | - | - | - | - | ---------------------------------------------------------------------------------------------- - | - | - | - | - | - | - | - | ---------------------------------------------------------------------------------------------- - | - | - | - | - | - | - | - | ---------------------------------------------------------------------------------------------- - | - | - | - | - | - | - | - | ---------------------------------------------------------------------------------------------- - | - | - | D, P, s | - | - | P, S, T | - | ---------------------------------------------------------------------------------------------- - | - | VP, s | - | - | - | - | D, P | ---------------------------------------------------------------------------------------------- - | s | - | - | - | - | - | - | ---------------------------------------------------------------------------------------------- - | - | - | - | - | - | - | - | ---------------------------------------------------------------------------------------------- - | s | - | - | - | - | - | - | ---------------------------------------------------------------------------------------------- - | - | - | - | - | D | - | - | ---------------------------------------------------------------------------------------------- - | - | - | - | - | - | - | - | ---------------------------------------------------------------------------------------------- D | D | - | - | - | - | - | D | ---------------------------------------------------------------------------------------------- - | s | T, S, s | - | - | - | - | - | ---------------------------------------------------------------------------------------------- D | P, D, s | VP, s | D, S, T | - | - | - | D | ---------------------------------------------------------------------------------------------- - | - | - | - | - | - | - | - | ---------------------------------------------------------------------------------------------- - | - | - | - | - | - | - | - | ---------------------------------------------------------------------------------------------- - | - | - | - | T | T | - | - | ---------------------------------------------------------------------------------------------- - | VP, s | - | - | - | - | - | - | ---------------------------------------------------------------------------------------------- - | - | AVP, s | - | - | - | - | - | ---------------------------------------------------------------------------------------------- - | s | - | - | - | - | - | - | ---------------------------------------------------------------------------------------------- - | s | s | - | - | - | - | - | ---------------------------------------------------------------------------------------------- - | - | - | - | - | - | - | - | ---------------------------------------------------------------------------------------------- - | - | - | - | - | - | - | - | ---------------------------------------------------------------------------------------------- - | - | AVP, s | - | - | - | - | - | ---------------------------------------------------------------------------------------------- - | - | AVP, s | - | - | - | - | - | ---------------------------------------------------------------------------------------------- * Officers and directors of Seneca Resources' subsidiaries as of September 30, 2001 were as follows: National Fuel Exploration Corp. Board of Directors and Officers: B. J. Kennedy (Director and Chairman) Buffalo, NY (1) J. B. McCashin (President) Calgary, Alberta (19) D. Conrad (Secretary) Calgary, Alberta (19) W. M. Petmecky (Assistant Secretary) Houston, TX (5) G. W. Burns (Director) Calgary, Alberta (19) D. R. Goruk (Director) Calgary, Alberta (19) NFEx Acquisition Corp. Board of Directors and Officers: B. J. Kennedy (Director and Chairman) Buffalo, NY (1) P. C. Ackerman (Director) Buffalo, NY (1) J. B. McCashin (Director and President) Calgary, Alberta (19) D. R. Goruk (Director) Calgary, Alberta (19) W. M. Petmecky (Assistant Secretary) Houston, TX (5) D. Conrad (Secretary) Calgary, Alberta (19) Player Resources Ltd. Board of Directors and Officers: P. C. Ackerman (Director) Buffalo, NY (1) J. A. Beck (Director) Houston, TX (5) J. B. McCashin ((President and Director) Calgary, Alberta (19) D. R. Goruk (Director) Calgary, Alberta (19) D. Conrad (Secretary) Calgary, Alberta (19) W. Dummer (Controller) Calgary, Alberta (19) ** Officers and directors of Horizon's subsidiaries as of September 30, 2001 were as follows: Horizon Energy Holdings, Inc. Board of Directors and Officers: P. C. Ackerman (Director and President) Buffalo, NY (1) B. H. Hale (Vice President) Buffalo, NY (1) G. T. Wehrlin (Vice President) Buffalo, NY (1) R. J. Tanski (Secretary and Treasurer) Buffalo, NY (1) Horizon Energy Development, B.V. Managing Directors: B. H. Hale Buffalo, NY (1) G. T. Wehrlin Buffalo, NY (1) Intra Beheer B.V. Amsterdam, The Netherlands (8) Horizon Energy Development, s.r.o. Managing Director: B. H. Hale Buffalo, NY (1) Statutory Agents: L. Jarolimek Prague, Czech Republic (7) A. Novak Prague, Czech Republic (7) Power Development, s.r.o. (in liquidation as of January 19, 2001) Liquidator P. Ferenc Prague, Czech Republic (11) Statutory Agents: L. Jarolimek Prague, Czech Republic (7) A. Novak Prague, Czech Republic (7) Teplarna Kromeriz, a.s. (in liquidation as of November 15, 2001) Board of Directors: J. Drabek (14) Liquidator: JUDr. Krejci (13) See page 14 for NotesNotesTeplarna Liberec, a.s. Board of Directors: J. Drda Liberec, Czech Republic (21) L. Jarolimek Prague, Czech Republic (7) J. Jezek Liberec, Czech Republic (20) Z. Kozesnik Liberec, Czech Republic (10) J. Masinda Prague, Czech Republic (7) L. Zapletal Most, Czech Republic (14) Lounske tepelne hospodarstvi, s.r.o. Statutory Agents: R. Jiruska Bilina, Czech Republic (14) Teplo Branany, s.r.o. Managing Directors: R. Jiruska Bilina, Czech Republic (14) V. Krupka Branany, Czech Republic (15) United Energy, a.s. Board of Directors: L. Jarolimek Prague, Czech Republic (7) L. Zapletal Most, Czech Republic (14) B. H. Hale Buffalo, NY (1) G. T. Wehrlin Buffalo, NY (1) P. C. Ackerman Buffalo, NY (1) B. J. Kennedy Buffalo, NY (1) R. J. Tanski Buffalo, NY (1) J. Sulc Most, Czech Republic (22) E. Volkman Louny, Czech Republic (23) J. Nechvatal Most, Czech Republic (14) J. Masinda Prague, Czech Republic (7) ENOP Company, s.r.o. Statutory Agents: R. Kocar Most, Czech Republic (14) K. Stejskal Most, Czech Republic (14) J. Stepanek Most, Czech Republic (14) *** Officers of Power's subsidiaries as of September 30, 2001 included the following persons (because Power's subsidiaries are not wholly owned directly or indirectly by the Registrant or any system company, disclosure is limited to those officers who are directly employed by the Registrant or its system companies): Seneca Energy II, LLC B. H. Hale (Secretary and Chief Financial Officer) Buffalo, NY (1) Model City Energy, LLC B. H. Hale (Chief Financial Officer) Buffalo, NY (1) Energy Systems North East, LLC B. H. Hale (President) Buffalo, NY (1) K. D. Cotter (Vice President) Buffalo, NY (1) P. L. Malachowski (Treasurer) Buffalo, NY (1)
Item 6. OFFICERS AND DIRECTORS (Continued)
Part II. Financial connections as of September 30, 2001:
Position Held Applicable Name of Officer Name and Location of in Financial Exemption or Director Financial Institution Institution Rule --------------- --------------------- ------------- ------------- R. T. Brady Manufacturers and Traders Trust Company, Buffalo, New York Director 70 (a) M&T Bank Corporation, Buffalo, New York Director 70 (a) G. L. Mazanec Northern Trust Bank of Texas, Dallas, Texas Director 70 (a) J. V. Glynn Manufacturers and Traders Trust Company, Buffalo, New York Director 70 (a) M&T Bank Corporation, Buffalo, New York Director 70 (a)Part III. Compensation and other related information:
The information required by this item appears under "Directors' Compensation," and "Executive Compensation," on pages 6 to 7, and pages 10 to 18, respectively, of the National Fuel Gas Company Proxy Statement, dated January 10, 2002, included as Exhibit A (3) to this Form U5S and is incorporated herein by reference.
The information required by this item appears under "Security Ownership of Certain Beneficial Owners and Management," on pages 8 and 9 of the National Fuel Gas Company Proxy Statement, dated January 10, 2002, included as Exhibit A(3) of this Form U5S and is incorporated herein by reference.
The following contracts and transactions with the directors and executive officers of National Fuel Gas Company were disclosed in the Company's Form 10-K or Form 10-K/A for fiscal year 2001.
Item 6. OFFICERS AND DIRECTORS (Continued)
Item 6. OFFICERS AND DIRECTORS (Continued)
Item 6. OFFICERS AND DIRECTORS (Continued)
Item 6. OFFICERS AND DIRECTORS (Continued)
Item 6. OFFICERS AND DIRECTORS (Concluded)
The information required by this item appears in Article II, Paragraph 8 of the National Fuel Gas Company By-Laws as amended through December 13, 2001. Such By-Laws are listed as Exhibit B(1)(ii) to this Form U5S and are incorporated herein by reference as indicated.
The Company also purchases directors and officers liability insurance coverage with an annual aggregate limit of $135 million, and, in recognition of the scope of the foregoing by-law indemnification, certain other errors and omissions and general liability insurance coverages which are applicable to all employees as insureds, including directors and officers.
ITEM 7. CONTRIBUTIONS AND PUBLIC RELATIONS
Amount Name of Recipient Accounts Charged Per Books Fiscal Year Ended Name of Company or Beneficiary Purpose of Disbursing Company September 30, 2001 --------------- ----------------- ------- -------------------------- ------------------ Tabulation showing expenditures, disbursements, or payments during the year, in money, goods or services, directly or indirectly to or for the account of: (1) Any political party, candidate for public office or holder of such office, or any committee or agent therefor: Distribution Corporation N/A *FEDPAC Misc. Income Deductions $ 3,838 Distribution Corporation N/A *NYPAC Misc. Income Deductions $ 3,479 Distribution Corporation N/A *PAPAC Misc. Income Deductions $ 2,086 Supply Corporation N/A *FEDPAC Misc. Income Deductions $ 1,512 Supply Corporation N/A *NYPAC Misc. Income Deductions $ 1,472 Supply Corporation N/A *PAPAC Misc. Income Deductions $ 1,156 * Company labor and expenses relating to administration of political action funds. (2) Any citizens group or public relations counsel: Distribution Corporation 24 Beneficiaries Civic Operation Expense $ 5,988 Supply Corporation 14 Beneficiaries Civic Operation Expense $ 3,531 Seneca Resources 1 Beneficiary Civic Operation Expense $ 400
The information called for by instruction 2 to Item 7 was compiled, and memoranda from the applicable System Companies were received and are preserved by the Registrant.
ITEM 8. SERVICE, SALES AND CONSTRUCTION CONTRACTS
Part I. Intercompany sales and services
NATIONAL FUEL GAS COMPANY ------------------------- REPORT OF OFFICERS' SALARIES ---------------------------- FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2001 -------------------------------------------- Distribution Supply Seneca Leidy Data- Parent Corp. Corp. Resources Hub Highland Horizon Track NFR Total ------ ------------ ------ --------- ----- -------- ------- ----- --- ----- B. J. Kennedy $72,093 $296,854 $449,520 $10,602 $ - $2,120 $ 8,481 $4,240 $4,240 $848,150 P. C. Ackerman 53,550 220,500 220,500 91,350 - 6,300 37,800 - - 630,000 A. M. Cellino 9,000 114,383 56,617 - - - - - - 180,000 J. P. Pawlowski 13,000 153,995 75,010 16,103 - 1,700 - - 192 260,000 G. T. Wehrlin 18,337 20,548 9,916 2,128 4,477 219 180,600 - 21,775 258,000
ITEM 8. SERVICE, SALES AND CONSTRUCTION CONTRACTS (Continued)
Part I. Intercompany sales and services (Continued)
DISTRIBUTION CORPORATION ------------------------ REPORT OF INTERCOMPANY SALES AND SERVICES ----------------------------------------- FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2001 -------------------------------------------- (THOUSANDS OF DOLLARS) ---------------------- Common Expenses -------------------------------------------------------------------------------------- Corporate Materials Accounts Receiving Company Executive Purchasing Communications Management Accounting Payable ----------------- --------- ---------- -------------- ---------- ---------- ------- Supply Corporation $ 533 $225 $153 $ 8 $ 871 $255 Seneca Resources 515 - 8 - 189 - UCI - - - - - - Highland 64 - 1 - 21 - Data-Track - - - - - - NFR 7 - - - 2 - Leidy Hub - - - - - - Horizon - - - - - - Parent Company - - - - - - NIM - - - - - - Upstate Energy - - - - - - ------ ---- ---- --- ------ ---- $1,119 $225 $162 $ 8 $1,083 $255 ====== ==== ==== === ====== ==== Common Expenses -------------------------------------------------------------------------------------- Data Human Government Benefit Receiving Company Processing Resources Legal Finance Affair Services CPR ----------------- ---------- --------- ----- ------- ---------- -------- --- Supply Corporation $232 $358 $ 74 $635 $48 $199 $131 Seneca Resources - 46 71 118 - 179 - UCI - - - - - - - Highland - 5 9 13 - 22 - Data-Track - - - - - - - NFR - 1 1 1 - 3 - Leidy Hub - - - - - - - Horizon - - - - - - - Parent Company - - - - - - - NIM - - - - - - - Upstate Energy - - - - - - - ---- ---- ---- ---- --- ---- ---- $232 $410 $155 $767 $48 $403 $131 ==== ==== ==== ==== === ==== ==== Common Expenses ---------------------- Total Total Total Convenience or Total Service Common Clearing Direct Accommodation Rendered By Receiving Company Payroll Expense Charges* Charges* Payments* Statutory Subsidiaries ----------------- ------- ------- -------- -------- -------------- ---------------------- Supply Corporation $130 $3,852 $4,461 $4,449 $ 8,333 $21,095 Seneca Resources - 1,126 152 366 2,329 3,973 UCI - - - - 4 4 Highland - 135 17 43 196 391 Data-Track - - - - 24 24 NFR - 15 49 214 218 496 Leidy Hub - - - 11 - 11 Horizon - - 2 945 26 973 Parent Company - - 5 231 798 1,034 NIM - - - - 4 4 Upstate Energy - - - - 2 2 ---- ------ ------ ------ ------- ------- $130 $5,128 $4,686 $6,259 $11,934 $28,007 ==== ====== ====== ====== ======= =======
* Analysis of Clearing Charges, Direct Charges & Convenience or Accommodation Payments is presented on pages 24 and 25.
ITEM 8. SERVICE, SALES AND CONSTRUCTION CONTRACTS (Continued)
Part I. Intercompany sales and services (Continued)
DISTRIBUTION CORPORATION ------------------------ REPORT OF INTERCOMPANY SALES AND SERVICES ----------------------------------------- FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2001 -------------------------------------------- (THOUSANDS OF DOLLARS) ---------------------- Clearing Charges ----------------------------------------------------------------------------------------- Material Total Issue & Data Messenger Clearing Receiving Company Transfer Telecommunications Rental Postage Processing Expense Charges ----------------- -------- ------------------ ------ ------- ---------- --------- --------- Supply Corporation $1,826 $203 $42 $ 6 $2,270 $114 $4,461 Seneca Resources 3 63 - - 84 2 152 UCI - - - - - - - Highland - - - - 9 8 17 Data-Track - - - - - - - NFR - 38 - - 1 10 49 Leidy Hub - - - - - - - Horizon - - 2 - - - 2 Parent Company 1 - - 1 3 - 5 NIM - - - - - - - Upstate Energy - - - - - - - ------ ---- --- --- ------ ---- ------ $1,830 $304 $44 $ 7 $2,367 $134 $4,686 ====== ==== === === ====== ==== ====== Direct Charges ----------------------------------------------------------------------------------------- Telecom- Contract Receiving Company Land MMD munications Insurance Operations Administration Accounting ----------------- ----- --- ----------- --------- ---------- -------------- ---------- Supply Corporation $308 $122 $37 $466 $1,946 $38 $ - Seneca Resources 32 - - - 13 - - UCI - - - - - - - Highland - - - - - - - Data-Track - - - - - - - NFR - - - - - - 1 Leidy Hub - - - - - - - Horizon - - - - - - 69 Parent Company - - - - - - 18 NIM - - - - - - - Upstate Energy - - - - - - - ---- ---- --- ---- ------ --- --- $340 $122 $37 $466 $1,959 $38 $88 ==== ==== === ==== ====== === === Direct Charges ----------------------------------------------------------------------------------------- Interstate Government Rates & Human Receiving Company Legal Marketing Affairs Finance Executive Regulation Resources ----------------- ----- ---------- ---------- ------- --------- ---------- --------- Supply Corporation $54 $ - $240 $151 $ 920 $- $ 31 Seneca Resources 16 - 7 42 253 1 - UCI - - - - - - - Highland 11 - - 10 22 - - Data-Track - - - - - - - NFR 8 - - 49 156 - - Leidy Hub - - - - 11 - - Horizon - 34 - 224 618 - - Parent Company - - - 29 179 - - NIM - - - - - - - Upstate Energy - - - - - - - --- --- ---- ---- ------ -- ---- $89 $34 $247 $505 $2,159 $1 $ 31 === === ==== ==== ====== == ==== Direct Charges ----------------------------------------------------------------------------------------- Total Benefit Quality Direct Receiving Company Services Engineering Assurance Charges ----------------- -------- ----------- --------- ------- Supply Corporation $20 $72 $44 $4,449 Seneca Resources 2 - - 366 UCI - - - - Highland - - - 43 Data-Track - - - - NFR - - - 214 Leidy Hub - - - 11 Horizon - - - 945 Parent Company 3 2 - 231 NIM - - - - Upstate Energy - - - - --- --- --- ------ $25 $74 $44 $6,259 === === === ======
ITEM 8. SERVICE, SALES AND CONSTRUCTION CONTRACTS (Continued)
Part I. Intercompany sales and services (Continued)
DISTRIBUTION CORPORATION ------------------------ ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS ------------------------------------------------- FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2001 -------------------------------------------- (THOUSANDS OF DOLLARS) ---------------------- Receiving Company ------------------------------------------------------------------ Parent Supply Seneca Data- Leidy Company Corporation Resources UCI Track Highland NFR Hub Horizon ------- ----------- --------- --- ----- -------- --- ----- ------- Material $ - $ 371 $ 5 $ - $ - $ 2 $ - $ - $ - Rents - 79 - - - - - - - Transportation - 11 1 - - - - - - Utilities - 909 84 - 23 - 22 - - Contractors & Outside Services 546 1,201 37 1 (1) 2 (2) (1) (8) Equipment Purchases & Rentals 1 652 - - - - 2 - - Employee Benefits 8 2,784 5 - - 5 93 - - Office Expense 20 727 37 - 1 15 18 1 32 Dues & Subscriptions 150 223 - - - - - - - Other Insurance - 1,084 2,152 - - 83 25 - - Injuries & Damages 3 221 - 1 - 87 - - - Other 57 47 8 2 1 2 60 - 2 Advertising - 10 - - - - - - - Postage 13 5 - - - - - - - Environmental - 3 - - - - - - - Land Acquisitions - 6 - - - - - - - ----- ------ ------ ---- --- ---- ---- --- --- $ 798 $ 8,333 $2,329 $ 4 $24 $196 $218 $ - $26 ===== ======= ====== ==== === ==== ==== === === Receiving Company -------------------------- Upstate NIM Energy Total --- ------- ----- Material $ 2 $ 1 $ 381 Rents - - 79 Transportation - - 12 Utilities - - 1,038 Contractors & Outside Services (2) (1) 1,772 Equipment Purchases & Rentals - - 655 Employee Benefits - - 2,895 Office Expense 4 1 856 Dues & Subscriptions - - 373 Other Insurance - 1 3,345 Injuries & Damages - - 312 Other - - 179 Advertising - - 10 Postage - - 18 Environmental - - 3 Land Acquisition - - 6 --- --- ------- $ 4 $ 2 $11,934 === === =======
ITEM 8. SERVICE, SALES AND CONSTRUCTION CONTRACTS (Continued)
Part I. Intercompany sales and services (Continued)
SUPPLY CORPORATION ------------------ REPORT OF INTERCOMPANY SALES AND SERVICES ----------------------------------------- FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2001 -------------------------------------------- (THOUSANDS OF DOLLARS) ---------------------- Clearing Accounts Direct Charges ---------------------------------------------- ------------------------- Material Total DPC Production Issue & Rental Clearing Interstate Receiving Company Clearing Clearing Transfer Clear Charges MMD Marketing Finance ----------------- -------- ----------- -------- ------ -------- --- ---------- ------- Distribution Corp. $ 9 $ - $ 448 $2,774 $3,231 $55 $35 $ - Seneca Resources - 180 7 - 187 - - - Horizon - - - 26 26 - 3 133 Highland - - - - - - - - Data Track - - - - - - - - NFR - - - - - - - - Leidy Hub - - - - - - - - Parent Company - - - 10 10 - - 79 Upstate Energy - - - - - - - - NIM - - - - - - - - --- ---- ------ ------ ------ --- --- ---- $ 9 $180 $ 455 $2,810 $3,454 $55 $38 $212 === ==== ====== ====== ====== === === ==== Direct Charges Continued --------------------------------------------------------------------------------- Operations, Construction & Benefit Human Gas Customer Receiving Company Services Engineering Resources Land Control Executive Service Legal ----------------- -------- ----------- --------- ---- ------- ---------- -------------- ----- Distribution Corp. $ - $ 39 $ 67 $185 $1,134 $1,098 $1,523 $18 Seneca Resources - - - 22 - 39 82 - Horizon - - - - - 516 - 53 Highland - - 11 - - 11 - - Data Track - - - - - 17 - - NFR - - 7 - - 17 - - Leidy Hub - - - - - - - - Parent Company 2 - - - - 256 - - Upstate Energy - - - - - - - - NIM - - - - - 2 - - ---- --- ---- ---- ------ ------ ------ --- $ 2 $ 39 $ 85 $207 $1,134 $1,956 $1,605 $71 ==== ==== ==== ==== ====== ====== ====== === Total Services Total Total Convenience or Rendered By Direct Clearing Accommodation Statutory Receiving Company Charges Charges Payments* Subsidiaries ----------------- ------- -------- -------------- ------------------- Distribution Corp. $4,154 $3,231 $1,458 $ 8,843 Seneca Resources 143 187 13 343 Horizon 705 26 5 736 Highland 22 - (2) 20 Data Track 17 - 1 18 NFR 24 - 1 25 Leidy Hub - - - - Parent Company 337 10 13 360 Upstate Energy - - - - NIM 2 - - 2 ------ ------ ------ ------- $5,404 $3,454 $1,489 $10,347 ====== ====== ====== =======* Analysis of Convenience or Accommodation Payments is presented on page 27.
ITEM 8. SERVICE, SALES AND CONSTRUCTION CONTRACTS (Continued)
Part I. Intercompany sales and services (Continued)
SUPPLY CORPORATION ------------------ ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS ------------------------------------------------- FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2001 -------------------------------------------- (THOUSANDS OF DOLLARS) ---------------------- Receiving Company ---------------------------------------------------------- Parent Distribution Seneca Horizon Company Corporation Resources Energy Highland ------- ------------ --------- ------- -------- Material $ - $ 127 $ 1 $- $ - Rents - - - - - Transportation - 7 - - - Utilities - 298 - - - Contractors & Outside Services - 721 4 2 - Equipment Purchases & Rentals - 6 - - - Employee Benefits 13 67 2 1 - Office Expense - 67 - 1 - Dues & Memberships - 35 - - - Other - 80 6 1 (2) Other Insurance - 44 - - - Postage - - - - - Advertising - - - - - Environmental - - - - - Injuries & Damages - 6 - - - --- ------ --- -- --- $13 $1,458 $13 $5 $(2) === ====== === == === Receiving Company -------------------------------------- Data- Upstate Track NFR Leidy Hub Energy NIM Total ----- --- --------- ------- --- ----- Material $- $ - $- $- $ - $ 128 Rents - - - - - - Transportation - - - - - 7 Utilities - - - - - 298 Contractors & Outside Services - - - - - 727 Equipment Purchases & Rentals - - - - - 6 Employee Benefits 1 1 - - - 85 Office Expense - - - - - 68 Dues & Memberships - - - - - 35 Other - - - - - 85 Other Insurance - - - - - 44 Postage - - - - - - Advertising - - - - - - Environmental - - - - - - Injuries & Damages - - - - - 6 -- --- -- -- --- ------ $1 $ 1 $- $- $ - $1,489 == === == == === ======
ITEM 8. SERVICE, SALES AND CONSTRUCTION CONTRACTS (Continued)
Part I. Intercompany sales and services (Continued)
SENECA RESOURCES ---------------- REPORT OF INTERCOMPANY SALES AND SERVICES ----------------------------------------- FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2001 -------------------------------------------- (THOUSANDS OF DOLLARS) ---------------------- Total Services Convenience or Rendered By Timber Accommodation Statutory Receiving Company Sales Operations Payments Subsidiaries ----------------- ------ ---------- -------------- ------------ Supply Corporation $ - $ 670 $ 22 $ 692 Highland 11,448 - 1 11,449 NFR - - 10 10 Upstate Energy - - - - Parent Company - - - - NFE - - 188 188 Horizon - - 7 7 ------- ------ ---- ------- $11,448 $ 670 $228 $12,346 ======= ====== ==== ======= ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS ------------------------------------------------- Receiving Company ------------------------------------------------------------------------------------ Supply Highland Horizon Corporation NFR NFE Total -------- ------- ------------ --- -------- ----- Other $1 $7 $22 $10 $188 $228 -- -- --- --- ---- ---- $1 $7 $22 $10 $188 $228 == == === === ==== ====
ITEM 8. SERVICE, SALES AND CONSTRUCTION CONTRACTS (Continued)
Part I. Intercompany sales and services (Concluded)
HIGHLAND -------- REPORT OF INTERCOMPANY SALES AND SERVICES ----------------------------------------- FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2001 -------------------------------------------- (THOUSANDS OF DOLLARS) ---------------------- Total Services Rendered By Convenience Statutory Receiving Company Payments Subsidiaries ----------------- ----------- ----------------- Seneca Resources $320 $320 Supply Corporation - - ---- ---- $320 $320 ==== ==== DATA-TRACK ---------- REPORT OF INTERCOMPANY SALES AND SERVICES ----------------------------------------- FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2001 -------------------------------------------- (THOUSANDS OF DOLLARS) ---------------------- Total Services Rendered by Collection Statutory Receiving Company Services Subsidiaries ----------------- ---------- -------------- Distribution Corporation $435 $435 NFR 9 9 ---- ---- $444 $444 ==== ====
ITEM 8. SERVICE, SALES AND CONSTRUCTION CONTRACTS (Concluded)
Part II. |
Contracts to
purchase services or goods between any System company and any affiliate (other than a System company) at
September 30,
2001: |
Part III. |
Employment of any person by any System company for the performance on a continuing basis of management services: |
Description of Contract and Annual Name Scope of Services Consideration --------------- --------------------------- ------------- Robert Davis Performs management and $100,000 consulting services for Highland. Joseph Maljovec Performs management and $ 68,952 consulting services for Highland. Enterprise Risk Performs consulting services Retainer of Management, Inc. for the Registrant regarding $ 86,000 placement of insurance coverages and participates in management or facilitation of claims. Robert C. Williams Performs real estate consulting $ 4,600 services for Seneca Resources.
ITEM 9. WHOLESALE GENERATORS AND FOREIGN UTILITY COMPANIES
Part I. A. Interests in Foreign Utility Companies 1. United Energy, a.s. and Teplarna Liberec, a.s. (a) United Energy, a.s. (UE) Komorany u Mostu 434 03 Most Czech Republic Teplarna Liberec, a.s. (TL) Dr. M. Horakove 641/34a 460 01 Liberec Czech Republic UE generates and supplies steam heat to customers in the Czech Republic. UE also generates electric energy for sale. UE has been designated as a foreign utility company because it owns and operates a coal-fired electric generation plant with generating capacity of 236 MW and sells the electricity it produces at wholesale. UE has also been designated as a foreign utility company because it owns a 70% interest (common equity) in TL. TL, in turn, has been designated as a foreign utility company because it owns and operates a 12 MW steam powered electric generation turbine and sells the produced electricity at wholesale. Horizon Energy Development, Inc. (Horizon) owns 100% of the capital stock of Horizon Energy Holdings, Inc. (HEHI), which owns 100% of the capital stock of Horizon Energy Development B.V. (HEDBV). HEDBV owns 85.16% of the capital stock of UE, which owns 70% of the capital stock of TL.ITEM 9. WHOLESALE GENERATORS AND FOREIGN UTILITY COMPANIES (Continued) ------- -------------------------------------------------------------- (b) Horizon owns 100% of the capital stock of HEHI, which investment was valued at $112,492,000 as of September 30, 2001. HEHI owns 100% of the capital stock of HEDBV, which investment was valued at $112,492,000 as of September 30, 2001. HEDBV owns 85.16% of the capital stock of UE, and such investment was valued at $112,819,000 as of September 30, 2001. UE owns 70% of the capital stock of TL, and such investment was valued at $8,187,000 as of September 30, 2001. The financial statements of Horizon and its subsidiaries are found on pages 62 through 86 of this Form U5S. There are no debts or other financial obligations of HEHI, HEDBV, UE or TL for which there is recourse, directly or indirectly, to the registered holding company or another system company. There are no direct or indirect guaranties of any of the securities of UE or TL by the registered holding company. There have been no transfers of any assets from any system company to UE or TL. (c) The ratio of debt to comprehensive shareholders equity of UE was 40.40% as of September 30, 2001. TL had no debt outstanding at September 30, 2001. The earnings (loss) of UE and TL for the twelve months ended September 30, 2001 (net of minority interest) were $4,603,000 and $(54,000), respectively. The financial statements of UE and TL are found on pages 82 through 86 of this Form U5S. (d) There are management support agreements between Horizon Energy Development, s.r.o. (HED) and UE and TL. Under these agreements, HED agrees to provide management services (i.e., strategic, legal, marketing, public relations and human resource services) to both UE and TL. The agreement with UE calls for UE to pay HED CZK 1,975,000 on a monthly basis. The agreement with TL calls for a monthly payment of CZK 500,000 to HED, effective as of December 1, 2000. There is a service agreement between UE and TL calling for TL to pay UE CZK 1,630,000 on a monthly basis. The services UE provides include services similar to those described above, plus engineering, technical, accounting and bank transactional services. 2. Teplarna Kromeriz, a.s. (a) Teplarna Kromeriz, a.s. (Kromeriz) Na Sadkach 3572 767 01 Kromeriz Czech Republic Kromeriz generated and supplied steam heat to customers in the Czech Republic. It has been designated as a foreign utility company because it had developed initial plans to add a 38 MW simple-cycle electric generating unit on its site. Due to the general decline in business conditions in the service territory of Kromeriz, and a dwindling number of customers, HEDBV determined to place Kromeriz in liquidation effective November 15, 2001. The activities of Kromeriz are now under the control of a liquidating agent. ITEM 9. WHOLESALE GENERATORS AND FOREIGN UTILITY COMPANIES (Continued) ------- -------------------------------------------------------------- Horizon owns 100% of the capital stock of HEHI, which owns 100% of the capital stock of HEDBV. HEDBV owns 100% of the capital stock of Kromeriz. The capital stock of Kromeriz was transferred to HEDBV from Power Development, s.r.o. (PD), a former wholly-owned subsidiary of HEDBV. PD was dissolved based on HEDBVs determination to simplify the ownership structure of the companies. (b) Horizon owns 100% of the capital stock of HEHI, which investment was valued at $112,492,000 as of September 30, 2001. HEHI owns 100% of the capital stock of HEDBV, which investment was valued at $112,492,000 as of September 30, 2001. HEDBV owns 100% of the capital stock of Kromeriz, and such investment was valued at $(63,000) as of September 30, 2001. The financial statements of Horizon and its subsidiaries are found on pages 62 through 86 of this Form U5S. There are no debts or other financial obligations of HEHI, HEDBV or Kromeriz for which there is recourse, directly or indirectly, to the registered holding company or another system company. There are no direct or indirect guaranties of any of the securities of Kromeriz by the registered holding company. There have been no transfers of any assets from any system company to Kromeriz. (c) The ratio of debt to comprehensive shareholders equity of Kromeriz was in excess of 100% as of September 30, 2001. Kromeriz had debt of $82,000 and negative comprehensive shareholders equity of $(63,000). Kromeriz posted a net loss of $(1,316,000) for the twelve months ended September 30, 2001. The financial statements of Kromeriz are found on pages 72 through 81 of this Form U5S. (d) There was a management support agreement between HED and Kromeriz. Under this agreement, HED agreed to provide management services (i.e., strategic, legal, marketing, public relations and human resource services) to Kromeriz. The agreement called for Kromeriz to pay HED CZK 210,000 on a monthly basis. B. Interests in Exempt Wholesale Generators 1. Horizon Power, Inc. (formerly NFR Power, Inc.) (a) Horizon Power, Inc. (Power) 10 Lafayette Square Suite 900 Buffalo, New York 14203 Power has been designated as an exempt wholesale generator by the Federal Energy Regulatory Commission and owns a 50% interest in each of Seneca Energy II, LLC (Seneca Energy), Model City Energy, LLC (Model City) and Energy Systems North East, LLC (ESNE). Seneca Energy has a generating capacity of approximately 11.2 MW and generates electricity using methane gas obtained from a landfill near Seneca Falls, New York. Model City has a ITEM 9. WHOLESALE GENERATORS AND FOREIGN UTILITY COMPANIES (Continued) ------- -------------------------------------------------------------- generating capacity of approximately 5.6 MW and generates electricity in the same manner, from a landfill near Lewiston, New York. The landfills are owned by outside parties. Seneca Energy sells its electricity at wholesale to an unaffiliated public utility. Model City sells its electricity at wholesale to the New York Independent System Operator. ESNE owns an 80 MW natural gas-fired cogeneration power plant located near North East, Pennsylvania. ESNE sells electricity at wholesale to the New York Independent System Operator and sells thermal energy to a grape processing plant. The Registrant owns 100% of the capital stock of Power. Part I(b), Part I(c) and Part I(d) for Power are filed pursuant to Rule 104(b). ITEM 9. WHOLESALE GENERATORS AND FOREIGN UTILITY COMPANIES (Concluded) ------- -------------------------------------------------------------- 2. Energy Systems North East, LLC (a) Energy Systems North East, LLC 10195 Ackerman Lane North East, Pennsylvania 16428 ESNE has been designated as an exempt wholesale generator by the Federal Energy Regulatory Commission. ESNE owns an 80 MW natural gas-fired cogeneration power plant located near North East, Pennsylvania. ESNE sells electricity at wholesale to the New York Independent System Operator and sells thermal energy to a grape processing plant. The Registrant owns 100% of the capital stock of Power, which owns 50% of the limited liability company interests of ESNE. Part I(b), Part I(c) and Part I(d) for ESNE are filed pursuant to Rule 104(b).
Part II | Relationship of Exempt Wholesale Generators and Foreign Utility Companies to System Companies |
Organization charts showing the relationships of Kromeriz (now in liquidation), TL, UE, Power and ESNE to system companies are provided as Exhibits G-1, G-2 and G-3 to this Form U5S. |
Part III | Aggregate Investment in Exempt Wholesale Generators and Foreign Utility Companies |
Part III is filed pursuant to Rule 104(b). |
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS
NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES
INDEX TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2001
Page ---- National Fuel Gas Company and Subsidiaries: Report of Independent Accountants 37 Consolidating and Consolidated Balance Sheet at September 30, 2001 38-41 Consolidating and Consolidated Statement of Income for the Fiscal Year Ended September 30, 2001 42-43 Consolidating and Consolidated Statement of Earnings Reinvested in the Business for the Fiscal Year Ended September 30, 2001 44-45 Consolidating and Consolidated Statement of Cash Flows for the Fiscal Year Ended September 30, 2001 46-49 Consolidating and Consolidated Statement of Comprehensive Income for the Fiscal Year Ended September 30, 2001 50-51 Seneca Resources Corporation: Consolidating Balance Sheet at September 30, 2001 52 Consolidating Statement of Income for the Fiscal Year Ended September 30, 2001 53 Consolidating Statement of Earnings Reinvested in the Business for the Fiscal Year Ended September 30, 2001 54 Consolidating Statement of Cash Flows for the Fiscal Year Ended September 30, 2001 55 Consolidating Statement of Comprehensive Income for the Fiscal Year Ended September 30, 2001 56 National Fuel Exploration Corporation: Consolidating Balance Sheet at September 30, 2001 57 Consolidating Statement of Income for the Fiscal Year Ended September 30, 2001 58 Consolidating Statement of Earnings Reinvested in the Business for the Fiscal Year Ended September 30, 2001 59 Consolidating Statement of Cash Flows for the Fiscal Year Ended September 30, 2001 60 Consolidating Statement of Comprehensive Income for the Fiscal Year Ended September 30, 2001 61 Horizon Energy Development, Inc. and Subsidiaries: Consolidating Balance Sheet at September 30, 2001 62 Consolidating Statement of Income for the Fiscal Year Ended September 30, 2001 63 Consolidating Statement of Earnings Reinvested in the Business for the Fiscal Year Ended September 30, 2001 64 Consolidating Statement of Cash Flows for the Fiscal Year Ended September 30, 2001 65 Consolidating Statement of Comprehensive Income for the Fiscal Year Ended September 30, 2001 66 Horizon Energy Holdings, Inc.: Consolidating Balance Sheet at September 30, 2001 67 Consolidating Statement of Income for the Fiscal Year Ended September 30, 2001 68 Consolidating Statement of Earnings Reinvested in the Business for the Fiscal Year Ended September 30, 2001 69 Consolidating Statement of Cash Flows for the Fiscal Year Ended September 30, 2001 70 Consolidating Statement of Comprehensive Income for the Fiscal Year Ended September 30, 2001 71
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (Concluded)
NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES
INDEX TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2001
Page ---- Horizon Energy Development B.V.: Consolidating Balance Sheet at September 30, 2001 72-73 Consolidating Statement of Income for the Fiscal Year Ended September 30, 2001 74-75 Consolidating Statement of Earnings Reinvested in the Business for the Fiscal Year Ended September 30, 2001 76-77 Consolidating Statement of Cash Flows for the Fiscal Year Ended September 30, 2001 78-79 Consolidating Statement of Comprehensive Income for the Fiscal Year Ended September 30, 2001 80-81 United Energy, a.s.: Consolidating Balance Sheet at September 30, 2001 82 Consolidating Statement of Income for the Fiscal Year Ended September 30, 2001 83 Consolidating Statement of Earnings Reinvested in the Business for the Fiscal Year Ended September 30, 2001 84 Consolidating Statement of Cash Flows for the Fiscal Year Ended September 30, 2001 85 Consolidating Statement of Comprehensive Income for the Fiscal Year Ended September 30, 2001 86 Notes to Consolidated Financial Statements *
* |
The Notes to Consolidated Financial Statements included in Item 8 of National Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2001, are incorporated herein by reference. |
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors
and Shareholders of
National Fuel Gas Company
In our opinion, the consolidated financial statements listed in the index appearing under Item 10 on Pages 35 and 36 present fairly, in all material respects, the financial position of National Fuel Gas Company and its subsidiaries at September 30, 2001, and the results of their operations and their cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the Company's management; our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit of these statements in accordance with auditing standards generally accepted in the United States of America which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
Our audit was made for the purpose of forming an opinion on the consolidated financial statements taken as a whole. The consolidating information on Pages 38 through 86 is presented for purposes of additional analysis rather than to present financial position, results of operations and cash flows of the individual companies. Accordingly, we do not express an opinion on the financial position, results of operations and cash flows of the individual companies. However, the consolidating information on Pages 38 through 86 has been subjected to the auditing procedures applied in the audit of the consolidated financial statements and, in our opinion, is fairly stated in all material respects in relation to the consolidated financial statements taken as a whole.
PricewaterhouseCoopers LLP
Buffalo, New York
October 24, 2001, except for Note F,
as to which the date is December 3, 2001
NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES CONSOLIDATING BALANCE SHEET AT SEPTEMBER 30, 2001 (THOUSANDS OF DOLLARS) Horizon National National Seneca Highland Data-Track National Energy Seneca Niagara National Fuel Gas Fuel Gas Resources Leidy Forest Account Fuel Development, Upstate Indep. Indpendence Horizon Total Before Eliminations Consolidated Fuel Gas Distribution Supply Corporation Hub, Resources, Services, Resources, Inc. Energy, Pipeline Marketing, Power, Eliminations & Adjustments Company and Company Corp. Corp. (Consolidated) Inc. Inc. Inc. Inc. (Consolidated) Inc. Company Inc. Inc. & Adjustments Dr (Cr) Subsidiaries ----------- ----------- ----------- ------------- ---------- ----------- ----------- ----------- ------------- ---------- ----------- ----------- ----------- ------------- ------------- ------------ ASSETS PROPERTY, PLANT & EQUIPMENT $ 132 $ 1,325,812 $ 802,188 $ 1,806,118 $ - $ 65,991 $ 185 $ 972 $ 271,073 $ 998 $ - $ - $ 247 $ 4,273,716 $ - $ 4,273,716 Less: Accumulated Depreciation, Depletion and Amortization 131 380,119 318,967 693,304 - 6,729 64 709 92,824 104 - - 52 1,493,003 - 1,493,003 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 1 945,693 483,221 1,112,814 - 59,262 121 263 178,249 894 - - 195 2,780,713 - 2,780,713 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- CURRENT ASSETS: Cash and Temporary Cash Investments (4) 5,455 311 557 95 187 211 22,640 5,809 126 14 1 799 36,201 26 36,227 Notes Receivable -Intercompany 524,500 - - 30,300 800 - 700 - 800 - - - - 557,100 (557,100) - Allowance for Uncollectible Accounts - (15,246) (242) (132) - - - (2,138) (762) - - - - (18,520) - (18,520) Accounts Receivable -Intercompany 26,942 9,163 4,926 4,543 3 83 103 4,231 36 - - - - 50,030 (50,030) - Accounts Receivable 407 86,927 8,172 34,282 - 2,499 2 11,816 5,717 48 - - 376 150,246 - 150,246 Unbilled Utility Revenue - 21,535 - - - - - - 3,840 - - - - 25,375 - 25,375 Dividends Receivable -Intercompany 17,354 - - - - - - - - - - - - 17,354 (17,354) - Materials and Supplies - at average cost - 5,141 7,625 3,513 - 16,390 - - 3,014 - - - - 35,683 (1,973) 33,710 Gas Stored Underground - 69,537 - - - - - 9,288 - 4,406 - - - 83,231 - 83,231 Unrecovered Purchased Gas Costs - 4,113 - - - - - - - - - - - 4,113 - 4,113 Prepayments 531 27,741 4,716 6,288 - 73 12 127 27 - - - 6 39,521 (1) 39,520 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 569,730 214,366 25,508 79,351 898 19,232 1,028 45,964 18,481 4,580 14 1 1,181 980,334 (626,432) 353,902 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- OTHER ASSETS: Recoverable Future Taxes - 81,641 4,945 - - - - - - - - - - 86,586 - 86,586 Unamortized Debt Expense 8,059 8,439 5,648 - - - - - - - - - - 22,146 (2,350) 19,796 Other Regulatory Assets 5,579 15,292 2,382 - - - - - - - - - - 23,253 - 23,253 Deferred Charges 1,505 2,806 4,632 509 - - - 696 40 - - - - 10,188 (1,052) 9,136 Fair Value of Derivative Financial Instruments - - - 36,413 - - - - - 1,171 - - - 37,584 1 37,585 Investment in Associated Companies 952,182 - 61 - - - - - - - - - - 952,243 (952,243) - Notes Receivable - Intercompany 1,124,000 - - - - - - - - - - - - 1,124,000 (1,124,000) - Other 17,958 15,953 8,946 2,068 - 1,180 - 21,591 9,590 - 14,632 - 16,789 108,707 25,888 134,595 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 2,109,283 124,131 26,614 38,990 - 1,180 - 22,287 9,630 1,171 14,632 - 16,789 2,364,707 (2,053,756) 310,951 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- $ 2,679,014 $ 1,284,190 $ 535,343 $ 1,231,155 $ 898 $ 79,674 $ 1,149 $ 68,514 $ 206,360 $ 6,645 $ 14,646 $ 1 $ 18,165 $ 6,125,754 $(2,680,188) $ 3,445,566 =========== =========== =========== =========== =========== =========== =========== =========== =========== =========== =========== =========== =========== =========== =========== =========== See Notes to Consolidated Financial Statements included in Item 8 of National Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2001, incorporated herein by reference. NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES CONSOLIDATING BALANCE SHEET AT SEPTEMBER 30, 2001 (THOUSANDS OF DOLLARS) Horizon National National Seneca Highland Data-Track National Energy Seneca Niagara National Fuel Gas Fuel Gas Resources Leidy Forest Account Fuel Development, Upstate Indep. Indpendence Horizon Total Before Eliminations Consolidated Fuel Gas Distribution Supply Corporation Hub, Resources, Services, Resources, Inc. Energy, Pipeline Marketing, Power, Eliminations & Adjustments Company and Company Corp. Corp. (Consolidated) Inc. Inc. Inc. Inc. (Consolidated) Inc. Company Inc. Inc. & Adjustments Dr (Cr) Subsidiaries ----------- ----------- ----------- -------------- --------- ----------- ----------- ----------- --------------- -------- ----------- ----------- ----------- --------------- ------------- ------------ CAPITALIZATION AND LIABILITIES CAPITALIZATION: Common Stock $1 Par Value; Authorized - 200,000,000 Shares; Issued and Outstanding - 79,406,105 Shares $ 79,406 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 79,406 $ - $ 79,406 Capital Stock of Subsidiaries - 59,170 25,345 500 4 4 1 10 5 1 1 1 1 85,043 (85,043) - Paid in Capital 430,618 121,668 35,894 104,035 1,365 3,005 499 33,490 38,246 6,800 - - 5,020 780,640 (350,022) 430,618 Earnings Reinvested in the Business 513,488 331,562 227,528 (22,012) (639) 5,674 268 (2,299) (9,143) (5,945) 467 - 715 1,039,664 (526,176) 513,488 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Total Common Shareholder Equity Before Items of Other Comprehensive Income 1,023,512 512,400 288,767 82,523 730 8,683 768 31,201 29,108 856 468 1 5,736 1,984,753 (961,241) 1,023,512 Accumulated Other Comprehensive Income (Loss) (20,857) - 644 (779) - - - (914) (20,253) (1,071) - - - (43,230) 22,373 (20,857) ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Total Comprehensive Shareholders' Equity 1,002,655 512,400 289,411 81,744 730 8,683 768 30,287 8,855 (215) 468 1 5,736 1,941,523 (938,868) 1,002,655 Long-Term Debt, Net of Current Portion 1,024,000 219 - - - - - - 22,475 - - - - 1,046,694 - 1,046,694 Notes Payable - Intercompany - 299,000 115,000 620,000 - - - - 90,000 - - - - 1,124,000 (1,124,000) - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Total Capitalization 2,026,655 811,619 404,411 701,744 730 8,683 768 30,287 121,330 (215) 468 1 5,736 4,112,217 (2,062,868) 2,049,349 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Minority Interest in Foreign Subsidiaries - - - - - - - - 22,324 - - - - 22,324 - 22,324 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- CURRENT AND ACCRUED LIABILITIES: Notes Payable to Banks and Commercial Paper 459,900 - - 15,675 - - - - 14,098 - - - - 489,673 - 489,673 Notes Payable - Intercompany 32,600 74,600 33,400 291,900 - 62,900 - 19,000 13,700 3,600 13,200 - 12,200 557,100 (557,100) - Current Portion of Long-Term Debt 100,000 297 136 - - - - - 9,002 - - - - 109,435 - 109,435 Accounts Payable 36 35,966 12,592 58,797 - 5,196 107 218 8,854 1,000 - - 12 122,778 (4,273) 118,505 Amounts Payable to Customers - 51,223 - - - - - - - - - - - 51,223 - 51,223 Accounts Payable - Intercompany 1,608 14,697 6,945 19,355 34 1,508 298 214 3,844 4,733 46 - 34 53,316 (53,316) - Dividends Payable - Intercompany - 8,700 6,154 2,000 - 400 - 100 - - - - - 17,354 (17,354) - Other Accruals and Current Liabilities 53,934 38,258 563 (525) - (81) (17) 2,357 2,838 (1,882) 5 - (230) 95,220 (586) 94,634 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 648,078 223,741 59,790 387,202 34 69,923 388 21,889 52,336 7,451 13,251 - 12,016 1,496,099 (632,629) 863,470 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- DEFERRED CREDITS: Accumulated Deferred Income Taxes 53 134,604 59,197 138,275 133 562 (49) (2,035) 9,223 (591) 927 - 413 340,712 (153) 340,559 Taxes Refundable to Customers - 19,541 (2,676) - - - - - - - - - - 16,865 - 16,865 Unamortized Investment Tax Credit - 9,315 284 - - - - - - - - - - 9,599 - 9,599 Fair Value of Derivative Financial Instruments - - - - - - - 16,500 581 - - - - 17,081 - 17,081 Other Deferred Credits 4,228 85,370 14,337 3,934 1 506 42 1,873 566 - - - - 110,857 15,462 126,319 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 4,281 248,830 71,142 142,209 134 1,068 (7) 16,338 10,370 (591) 927 - 413 495,114 15,309 510,423 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- $ 2,679,014 $ 1,284,190 $ 535,343 $ 1,231,155 $ 898 $ 79,674 $ 1,149 $ 68,514 $ 206,360 $ 6,645 $ 14,646 $ 1 $ 18,165 $ 6,125,754 $(2,680,188) $ 3,445,566 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- See Notes to Consolidated Financial Statements included in Item 8 of National Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2001, incorporated herein by reference. NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES CONSOLIDATING STATEMENT OF INCOME FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2001 (THOUSANDS OF DOLLARS) Horizon National National Seneca Highland Data-Track National Energy Seneca Niagara National Fuel Gas Fuel Gas Resources Leidy Forest Account Fuel Development, Upstate Indep. Indpendence Horizon Total Before Eliminations Consolidated Fuel Gas Distribution Supply Corporation Hub, Resources, Services, Resources, Inc. Energy, Pipeline Marketing, Power, Eliminations & Adjustments Company and Company Corp. Corp. (Consolidated) Inc. Inc. Inc. Inc. (Consolidated) Inc. Company Inc. Inc. & Adjustments Dr (Cr) Subsidiaries ----------- ----------- ----------- ------------- ---------- ----------- ----------- ----------- -------------- -------- ----------- ----------- ----------- -------------- ------------- ------------ OPERATING REVENUE: $ - $ 1,234,648 $ 171,091 $ 409,956 $ - $ 41,927 $ 464 $ 259,205 $ 97,910 $ 17,480 $ - $ - $ 377 $ 2,233,058 $ (132,706) $ 2,100,352 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- OPERATING EXPENSE: Purchased Gas - 839,539 1,860 44,954 - - - 255,629 - 22,090 - - - 1,164,072 (118,267) 1,045,805 Fuel Used in Heat and Electric Generation - - - - - - - 1,634 53,334 - - - - 54,968 - 54,968 Operation 4,536 159,196 50,391 78,177 18 34,558 426 5,991 23,115 2,735 11 - 703 359,857 (16,164) 343,693 Maintenance - 12,285 8,112 - - 190 - - 38 - - - - 20,625 - 20,625 Property, Franchise & Other Taxes 522 57,939 9,887 13,035 - 35 - 106 2,184 - - - 22 83,730 - 83,730 Impairment of Oil and Gas Producing Properties - - - 180,781 - - - - - - - - - 180,781 - 180,781 Depreciation, Depletion and Amortization 2 36,607 23,746 99,245 - 2,297 37 212 12,634 50 - - 32 174,862 52 174,914 Income Taxes 227 42,985 29,327 (33,218) 10 1,703 21 (1,660) 253 (2,754) (237) - 442 37,099 7 37,106 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 5,287 1,148,551 123,323 382,974 28 38,783 484 261,912 91,558 22,121 (226) - 1,199 2,075,994 (134,372) 1,941,622 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Operating Income (Loss) (5,287) 86,097 47,768 26,982 (28) 3,144 (20) (2,707) 6,352 (4,641) 226 - (822) 157,064 1,666 158,730 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- OTHER INCOME: Unremitted Earnings of Subsidiaries (1,929) - - - - - - - - - - - - (1,929) 1,929 - Dividends from Subsidiaries 69,416 - - - - - - - - - - - - 69,416 (69,416) - Interest-Intercompany 104,988 70 - 1,478 43 - 37 - 23 - - - - 106,639 (106,639) - Other 258 2,030 4,512 1,521 - 2,414 - 924 1,891 - - - 1,846 15,396 (140) 15,256 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 172,733 2,100 4,512 2,999 43 2,414 37 924 1,914 - - - 1,846 189,522 (174,266) 15,256 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Income (Loss) Before Interest Charges and Minority Interest in Foreign Subsidiaries 167,446 88,197 52,280 29,981 15 5,558 17 (1,783) 8,266 (4,641) 226 - 1,024 346,586 (172,600) 173,986 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- INTEREST CHARGES: Interest on Long-Term Debt 78,231 - - 55 - - - - 3,565 - - - - 81,851 - 81,851 Interest-Intercompany 1,651 26,083 10,882 56,327 - 3,120 - 1,684 5,738 488 666 - - 106,639 (106,639) - Other Interest 22,065 1,406 582 620 - - - (35) 662 - - - 204 25,504 (210) 25,294 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 101,947 27,489 11,464 57,002 - 3,120 - 1,649 9,965 488 666 - 204 213,994 (106,849) 107,145 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Minority Interest in Foreign Subsidiaries - - - - - - - - (1,342) - - - - (1,342) - (1,342) ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Net Income (Loss) Available for Common Stock $ 65,499 $ 60,708 $ 40,816 $ (27,021) $ 15 $ 2,438 $ 17 $ (3,432) $ (3,041) $ (5,129) $ (440) $ - $ 820 $ 131,250 $ (65,751) $ 65,499 =========== =========== =========== =========== =========== =========== =========== =========== =========== =========== =========== =========== =========== =========== =========== =========== See Notes to Consolidated Financial Statements included in Item 8 of National Basic Earnings Per Common Share Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2001, Net Income Available for Common Stock $ 0.83 incorporated herein by reference. =========== Diluted Earnings Per Common Share Net Income Available for Common Stock $ 0.82 =========== Weighted Average Common Shares Outstanding Used in Basic Calculation 79,053,444 =========== Used in Diluted Calculation 80,361,258 =========== NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES CONSOLIDATING STATEMENT OF EARNINGS REINVESTED IN THE BUSINESS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2001 (THOUSANDS OF DOLLARS) Horizon National National Seneca Highland Data-Track National Energy Seneca Niagara National Fuel Gas Fuel Gas Resources Leidy Forest Account Fuel Development, Upstate Indep. Indpendence Horizon Total Before Eliminations Consolidated Fuel Gas Distribution Supply Corporation Hub, Resources, Services, Resources, Inc. Energy, Pipeline Marketing, Power, Eliminations & Adjustments Company and Company Corp. Corp. (Consolidated) Inc. Inc. Inc. Inc. (Consolidated) Inc. Company Inc. Inc. & Adjustments Dr (Cr) Subsidiaries ----------- ----------- ----------- ------------- ---------- ----------- ----------- ----------- --------------- --------- ----------- ----------- ----------- -------------- ------------- ------------ EARNINGS REINVESTED IN THE BUSINESS Balance at Beginning of Year $ 525,847 $ 305,654 $ 211,328 $ 13,009 $ (654) $ 4,836 $ 251 $ 1,533 $ (6,102) $ (816) $ 907 $ - $ (105) $ 1,055,688 $ (529,841) $ 525,847 Net Income (Loss) Available for Common Stock 65,499 60,708 40,816 (27,021) 15 2,438 17 (3,432) (3,041) (5,129) (440) - 820 131,250 (65,751) 65,499 Dividends on Common Stock (2001 - $0.99 per share) (77,858) (34,800) (24,616) (8,000) - (1,600) - (400) - - - - - (147,274) 69,416 (77,858) ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Balance at End of Year $ 513,488 $ 331,562 $ 227,528 $ (22,012) $ (639) $ 5,674 $ 268 $ (2,299) $ (9,143) $ (5,945) $ 467 $ - $ 715 $ 1,039,664 $ (526,176) $ 513,488 =========== =========== =========== =========== =========== =========== =========== =========== =========== =========== =========== =========== =========== =========== =========== =========== At September 30, 2001 ANALYSIS OF INVESTMENTS IN ASSOCIATED COMPANIES AT SEPTEMBER 30, 2001 Par or Earnings Total Investment Intercompany Eliminations: Stated Value Reinvested in Unremitted Accumulated in Associated of Paid the Business Earnings Other Companies Subsidiary In at Since Comprehensive at Earnings Reinvested in the Business: Stock Capital Acquisition Acquisition Income Equity ----------- ----------- ----------- ----------- ----------- ----------- Unremitted Earnings of Subsidiaries Registrant: Since Acquisition 532,456 Distribution Earnings Reinvested in the Business Corporation $ 59,170 $ 121,668 $ 4,636 $ 326,926 $ - $ 512,400 of Subsidiaries at Acquisition 7,095 Supply Corporation 25,345 35,833 2,453 225,075 644 289,350 Consolidating Adjustment (13,375) Seneca Resources 500 104,035 6 (22,018) (779) 81,744 ----------- $ 526,176 Leidy Hub 4 1,365 - (639) - 730 =========== Highland 4 3,005 - 5,674 - 8,683 Data-Track 1 499 - 268 - 768 Net Income Available for Common Stock: NFR 10 33,490 - (2,299) (914) 30,287 Subsidiaries-Dividends on Horizon 5 38,246 - (9,143) (20,253) 8,855 Common Stock 69,416 Upstate 1 6,800 - (5,945) (1,071) (215) Unremitted Earnings of Subsidiaries (1,929) Seneca Independence 1 - - 467 - 468 Consolidating Adjustment (1,736) Niagara Independence 1 - - - - 1 ----------- 65,751 Horizon Power, Inc. 1 5,020 - 715 - 5,736 =========== Consolidating Adjustment - - - 13,375 - 13,375 ----------- ----------- ----------- ----------- ----------- ----------- See Notes to Consolidated Financial Statements included in Item 8 of National 85,043 349,961 7,095 532,456 (22,373) 952,182 Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2001, incorporated herein by reference. Supply Corporation: Seneca Resources - 61 - - - 61 ----------- ----------- ----------- ----------- ----------- ----------- $ 85,043 $ 350,022 $ 7,095 $ 532,456 $(22,373) $ 952,243 =========== =========== =========== =========== =========== =========== NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2001 (THOUSANDS OF DOLLARS) Horizon National National Seneca Highland Data-Track National Energy Seneca Niagara National Fuel Gas Fuel Gas Resources Leidy Forest Account Fuel Development, Upstate Indep. Indpendence Horizon Total Before Eliminations Consolidated Fuel Gas Distribution Supply Corporation Hub, Resources, Services, Resources, Inc. Energy, Pipeline Marketing, Power, Eliminations & Adjustments Company and Company Corp. Corp. (Consolidated) Inc. Inc. Inc. Inc. (Consolidated) Inc. Company Inc. Inc. & Adjustments Dr (Cr) Subsidiaries ----------- ----------- ----------- -------------- --------- ----------- ----------- ----------- -------------- ---------- ----------- ----------- ---------- ------------- ------------- ------------ OPERATING ACTIVITIES: Net Income (Loss) Available for Common Stock $ 65,499 $ 60,708 $ 40,816 $ (27,021) $ 15 $ 2,438 $ 17 $ (3,432) $ (3,041) $ (5,129) $ (440) $ - $ 820 $ 131,250 $ (65,751) $ 65,499 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Unremitted (Earnings)/ Loss of Subsidiaries 1,929 - - - - - - - - - - - - 1,929 (1,929) - Dividend Income from Subsidiaries - - - - - - - - - - - - - - - - Impairment of Oil & Gas Producing Properties - - - 180,781 - - - - - - - - - 180,781 - 180,781 Depreciation, Depletion and Amortization 2 36,607 23,746 99,246 - 2,297 37 212 12,634 50 - - 32 174,863 51 174,914 Deferred Income Taxes 243 (18,002) 3,894 (44,345) (1) 557 11 1,109 210 59 - - 416 (55,849) - (55,849) Minority Interest in Foreign Subsidiaries - - - - - - - - 1,342 - - - - 1,342 - 1,342 Other 1,502 993 (1,619) (797) - (1,624) - 2 1,214 - - - - (329) 6,882 6,553 Change in: Receivables and Unbilled Utility Revenue (64) (17,442) 4,150 11,124 - (577) (2) 1,187 (402) (31) - - (242) (2,299) - (2,299) Accounts Receivable- Intercompany (5,285) (3,668) 5,101 768 2 279 2 3,508 (36) - - - 700 1,371 (1,371) - Gas Stored Underground and Material and Supplies - (40,887) 126 636 - (10,606) - 4,487 932 8,279 - - - (37,033) (21) (37,054) Unrecovered Purchased Gas Costs - 25,568 - - - - - - - - - - - 25,568 - 25,568 Prepayments (24) (5,129) 123 4,719 - 324 (7) (432) 33 - - - (6) (399) - (399) Accounts Payable (14) (13,204) 2,730 31,553 - 3,606 96 (4,862) (369) 1,000 - - (14) 20,522 (103) 20,419 Amounts Payable to Customers - 41,640 - - - - - - - - - - - 41,640 - 41,640 Accounts Payable-Intercompany 708 969 1,411 4,169 (3) (1,096) 104 (10) 466 (3,036) (38) - (9) 3,635 (3,635) - Other Accruals and Current Liabilities 9,503 7,839 (8,953) 3,599 (3) (949) (33) (1,109) 5,862 (1,750) 183 - (227) 13,962 7 13,969 Other Assets (2,734) (1,164) (4,340) 1,153 - - - (21,538) (1,345) 1,359 - - (742) (29,351) (4,878) (34,229) Other Liabilities (2,224) 14,584 (1,607) (16,164) (1) (160) (45) 14,996 (316) (4,731) - - - 4,332 8,957 13,289 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ---------- ---------- ---------- ----------- Net Cash Provided by (Used in) Operating Activities $ 69,041 $ 89,412 $ 65,578 $ 249,421 $ 9 $ (5,511) $ 180 $ (5,882) $ 17,184 $ (3,930) $ (295) $ - $ 728 $ 475,935 $ (61,791) $ 414,144 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ---------- ---------- ---------- ----------- See Notes to Consolidated Financial Statements included in Item 8 of National Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2001, incorporated herein by reference. (Consolidating Statement of Cash Flows continues on pages 48 and 49) NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2001 (THOUSANDS OF DOLLARS) Horizon National National Seneca Highland Data-Track National Energy Seneca Niagara National Fuel Gas Fuel Gas Resources Leidy Forest Account Fuel Development, Upstate Indep. Indpendence Horizon Total Before Eliminations Consolidated Fuel Gas Distribution Supply Corporation Hub, Resources, Services, Resources, Inc. Energy, Pipeline Marketing, Power, Eliminations & Adjustments Company and Company Corp. Corp. (Consolidated) Inc. Inc. Inc. Inc. (Consolidated) Inc. Company Inc. Inc. & Adjustments Dr (Cr) Subsidiaries ----------- ----------- ----------- -------------- ---------- ----------- ----------- ----------- ------------- ---------- ----------- ----------- ---------- ------------- ------------ ------------ INVESTING ACTIVITIES: Capital Expenditures $ - $ (42,374) $ (24,998) $ (206,300) $ - $ (3,245) $ (41) $ (116) $ (15,587) $ (8) $ - $ - $ (37) $ (292,706) $ - $ (292,706) Investment in Subsidiaries, Net of Cash Acquired - - - (90,567) - - - - - - - - - (90,567) - (90,567) Dividends Received from Subsidiaries - - - - - - - - - - - - - - - - Investment in Associated Companies (36,800) - - - - - - - - - - - - (36,800) 36,800 - Investment in Partnerships - - - - - - - - - - (980) - (850) (1,830) - (1,830) Change in Notes Receivable - Intercompany (39,200) - - - - - - - - - - - - (39,200) 39,200 - Other - 37 6 (5,224) - 7,446 - - 7,007 - - - (11,500) (2,228) (712) (2,940) ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ---------- ---------- ---------- ----------- Net Cash Provided by (Used In) Investing Activities (76,000) (42,337) (24,992) (302,091) - 4,201 (41) (116) (8,580) (8) (980) - (12,387) (463,331) 75,288 (388,043) ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ---------- ---------- ---------- ----------- FINANCING ACTIVITIES: Change in Notes Payable to Banks and Commercial Paper (141,300) - - 2,912 - - - - (5,009) - - - - (143,397) - (143,397) Change in Notes Payable-Intercompany 9,100 (8,400) (16,500) 52,300 - 2,800 - (14,900) 4,200 (2,800) 1,200 - 12,200 39,200 (39,200) - Capital Contribution - - - - - - - 30,000 - 6,800 - - - 36,800 (36,800) - Net Proceeds from Issuance of Long-Term Debt 197,294 - - - - - - - 12,927 - - - - 210,221 - 210,221 Reduction of Long-Term Debt - (454) (127) (1,747) - - - - (20,724) - - - - (23,052) - (23,052) Proceeds from Issuance of Common Stock 18,477 - - - - - - - - - - - - 18,477 (6,932) 11,545 Dividends Paid on Common Stock (76,671) (34,800) (24,616) (8,000) - (1,600) - (400) - - - - - (146,087) 69,416 (76,671) Dividends Paid to Minority Interest - - - - - - - - - - - - - - - - ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ---------- ---------- ---------- ----------- Net Cash Provided by (Used in) Financing Activities 6,900 (43,654) (41,243) 45,465 - 1,200 - 14,700 (8,606) 4,000 1,200 - 12,200 (7,838) (13,516) (21,354) ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ---------- ---------- ---------- ----------- Effect of Exchange Rates on Cash - - - (853) - - - - 208 - - - - (645) - (645) ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ---------- ---------- ---------- ----------- Net Increase (Decrease) in Cash and Temporary Cash Investments (59) 3,421 (657) (8,058) 9 (110) 139 8,702 206 62 (75) - 541 4,121 (19) 4,102 Cash and Temporary Cash Investments at Beginning of Year 55 2,034 968 8,615 86 297 72 13,938 5,603 64 89 1 258 32,080 45 32,125 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ---------- ---------- ---------- ----------- Cash and Temporary Cash Investments at End of Year $ (4) $ 5,455 $ 311 $ 557 $ 95 $ 187 $ 211 $ 22,640 $ 5,809 $ 126 $ 14 $ 1 $ 799 $ 36,201 $ 26 $ 36,227 =========== =========== =========== =========== =========== =========== =========== =========== =========== =========== =========== =========== ========== ========== ========== =========== See Notes to Consolidated Financial Statements included in Item 8 of National Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2001, incorporated herein by reference. NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2001 (THOUSANDS OF DOLLARS) Horizon National National Seneca Highland Data-Track National Energy Seneca Niagara National Fuel Gas Fuel Gas Resources Leidy Forest Account Fuel Development, Upstate Indep. Indpendence Horizon Total Before Eliminations Consolidated Fuel Gas Distribution Supply Corporation Hub, Resources, Services, Resources, Inc. Energy, Pipeline Marketing, Power, Eliminations & Adjustments Company and Company Corp. Corp. (Consolidated) Inc. Inc. Inc. Inc. (Consolidated) Inc. Company Inc. Inc. & Adjustments Dr (Cr) Subsidiaries ----------- ----------- ----------- ------------- ---------- ----------- ----------- ----------- --------------- --------- ----------- ----------- ----------- -------------- ------------- ------------ Net Income (Loss) Available for Common Stock $ 65,499 $ 60,708 $ 40,816 $ (27,021) $ 15 $ 2,438 $ 17 $ (3,432) $ (3,041) $ (5,129) $ (440) $ - $ 820 $ 131,250 $ (65,751) $ 65,499 Other Comprehensive Income (Loss), Before Tax: Foreign Currency Translation Adjustment (7,158) - - (14,850) - - - - 7,692 - - - - (14,316) 7,158 (7,158) Unrealized Gain / (Loss) on Securities Available for Sale Arising During the Period (712) - - - - - - - - - - - - (712) - (712) Unrealized Gain / (Loss) on Derivative Financial Instruments During the Period 58,355 - 1,606 59,986 - - - (1,450) (139) (1,648) - - - 116,710 (58,355) 58,355 Reclassification Adjustment for Realized (Gains)/Losses on Derivative Financial Instruments in Net Income 83,218 - (438) 82,859 - - - - 796 - - - - 166,435 (83,217) 83,218 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Other Comprehensive Income (Loss), Before Tax 133,703 - 1,168 127,995 - - - (1,450) 8,349 (1,648) - - - 268,117 (134,414) 133,703 Income Tax Expense/(Benefit) Related to Unrealized Gain/(Loss) on Securities Available for Sale Arising During the Period (249) - - - - - - - - - - - - (249) - (249) Income Tax Expense/(Benefit) Related to Unrealized Gain/(Loss) on Derivative Financial Instruments During the Period 23,053 - 622 23,586 - - - (535) (43) (577) - - - 46,106 (23,053) 23,053 Reclassification Adjustment for Income Tax Benefit/ (Expense) on Derivative Financial Instruments in Net Income 32,032 - (169) 31,955 - - - - 247 - - - - 64,065 (32,033) 32,032 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Income Taxes - Net 54,836 - 453 55,541 - - - (535) 204 (577) - - - 109,922 (55,086) 54,836 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Other Comprehensive Income (Loss), Before Cumulative Effect, Net of Tax 78,867 - 715 72,454 - - - (915) 8,145 (1,071) - - - 158,195 (79,328) 78,867 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Cumulative Effect of Change in Accounting (69,767) - (72) (68,902) - - - - (793) - - - - (139,534) 69,767 (69,767) ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Other Comprehensive Income (Loss), After Cumulative Effect, Net of Tax 9,100 - 643 3,552 - - - (915) 7,352 (1,071) - - - 18,661 (9,561) 9,100 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Comprehensive Income (Loss) $ 74,599 $ 60,708 $ 41,459 $ (23,469) $ 15 $ 2,438 $ 17 $ (4,347) $ 4,311 $ (6,200) $ (440) $ - $ 820 $ 149,911 $ (75,312) $ 74,599 =========== =========== =========== =========== =========== =========== =========== =========== =========== =========== =========== =========== =========== =========== =========== =========== See Notes to Consolidated Financial Statements included in Item 8 of National Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2001, incorporated herein by reference.
SENECA RESOURCES CORPORATION CONSOLIDATING BALANCE SHEET AT SEPTEMBER 30, 2001 (THOUSANDS OF DOLLARS) National Seneca Fuel Consolidated Resources Exploration Total Before Seneca and Corporation (Consolidated) Eliminations Eliminations Subsidiary -------------- -------------- --------------- -------------- -------------- ASSETS PROPERTY, PLANT & EQUIPMENT $ 1,334,320 $ 471,798 $ 1,806,118 $ - $ 1,806,118 Less: Accumulated DD&A 474,870 218,434 693,304 - 693,304 -------------- -------------- --------------- -------------- -------------- 859,450 253,364 1,112,814 - 1,112,814 -------------- -------------- --------------- -------------- -------------- CURRENT ASSETS: Cash and Temporary Cash Investments 214 343 557 - 557 Allowance for Uncollectible Accounts (132) - (132) - (132) Notes Receivable - Intercompany 30,300 - 30,300 - 30,300 Accounts Receivable 25,312 8,970 34,282 - 34,282 Accounts Receivable - Intercompany 20,773 - 20,773 (16,230) 4,543 Materials and Supplies 841 2,672 3,513 - 3,513 Prepayments 5,521 767 6,288 - 6,288 -------------- -------------- --------------- -------------- -------------- 82,829 12,752 95,581 (16,230) 79,351 -------------- -------------- --------------- -------------- -------------- OTHER ASSETS: Investment in Associated Company (32,171) - (32,171) 32,171 - Deferred Charges 366 143 509 - 509 Fair Value of Derivative Financial Instruments 31,981 4,432 36,413 - 36,413 Notes Receivable - Intercompany 253,005 - 253,005 (253,005) - Other Assets 2,068 - 2,068 - 2,068 -------------- -------------- --------------- -------------- -------------- 255,249 4,575 259,824 (220,834) 38,990 -------------- -------------- --------------- -------------- -------------- TOTAL ASSETS $ 1,197,528 $ 270,691 $ 1,468,219 $ (237,064) $ 1,231,155 ============== ============== =============== ============== ============== CAPITALIZATION & LIABILITIES CAPITALIZATION: Common Stock $ 500 $ - $ 500 $ - $ 500 Paid - in - Capital 104,035 78,445 182,480 (78,445) 104,035 Earnings Reinvested in the Business (22,012) (91,382) (113,394) 91,382 (22,012) -------------- -------------- --------------- -------------- -------------- Total Common Shareholder Equity Before Items of Other Comprehensive Income 82,523 (12,937) 69,586 12,937 82,523 Accumulated Other Comprehensive Loss (779) (19,234) (20,013) 19,234 (779) -------------- -------------- --------------- -------------- -------------- Total Comprehensive Shareholders' Equity 81,744 (32,171) 49,573 32,171 81,744 Long-Term Debt, Net of Current Portion - - - - - Notes Payable-Intercompany 620,000 253,005 873,005 (253,005) 620,000 -------------- -------------- --------------- -------------- -------------- Total Capitalization 701,744 220,834 922,578 (220,834) 701,744 -------------- -------------- --------------- -------------- -------------- CURRENT AND ACCRUED LIABILITIES: Current Portion of Long-Term Debt - - - - - Notes Payable to Banks and Commercial Paper - 15,675 15,675 - 15,675 Accounts Payable 42,875 15,922 58,797 - 58,797 Notes Payable - Intercompany 291,900 - 291,900 - 291,900 Accounts Payable - Intercompany 19,355 16,230 35,585 (16,230) 19,355 Dividends Payable - Intercompany 2,000 - 2,000 - 2,000 Other Accruals and Current Liabilities (477) (48) (525) - (525) -------------- -------------- --------------- -------------- -------------- 355,653 47,779 403,432 (16,230) 387,202 -------------- -------------- --------------- -------------- -------------- DEFERRED CREDITS: Accumulated Deferred Income Taxes 136,228 2,047 138,275 - 138,275 Other Deferred Credits 3,903 31 3,934 - 3,934 -------------- -------------- --------------- -------------- -------------- 140,131 2,078 142,209 - 142,209 -------------- -------------- --------------- -------------- -------------- TOTAL CAPITALIZATION & LIABILITIES $ 1,197,528 $ 270,691 $ 1,468,219 $ (237,064) $ 1,231,155 ============== ============== =============== ============== ============== See Notes to Consolidated Financial Statements included in Item 8 of National Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2001, incorporated herein by reference. SENECA RESOURCES CORPORATION CONSOLIDATING STATEMENT OF INCOME FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2001 (THOUSANDS OF DOLLARS) Seneca National Consolidated Resources Fuel Total Before Seneca and Corporation Exploration Eliminations Eliminations Subsidiary -------------- -------------- --------------- -------------- -------------- OPERATING REVENUE: $ 335,989 $ 73,967 $ 409,956 $ - $ 409,956 -------------- -------------- --------------- -------------- -------------- OPERATING EXPENSE: Purchased Gas 44,954 - 44,954 - 44,954 Operation 50,769 27,408 78,177 - 78,177 Maintenance - - - - - Property, Franchise & Other Taxes 4,771 8,264 13,035 - 13,035 Impairment of Oil & Gas Producing Properties - 180,781 180,781 - 180,781 Depreciation, Depletion and Amortization 78,998 20,247 99,245 - 99,245 Income Taxes 40,979 (74,197) (33,218) - (33,218) -------------- -------------- --------------- -------------- -------------- 220,471 162,503 382,974 - 382,974 -------------- -------------- --------------- -------------- -------------- Operating Income (Loss) 115,518 (88,536) 26,982 - 26,982 -------------- -------------- --------------- -------------- -------------- OTHER INCOME: Unremitted Earnings/(Loss) of Subsidiary (97,773) - (97,773) 97,773 - Interest - Intercompany 10,695 - 10,695 (9,217) 1,478 Other 977 544 1,521 - 1,521 -------------- -------------- --------------- -------------- -------------- (86,101) 544 (85,557) 88,556 2,999 -------------- -------------- --------------- -------------- -------------- Income (Loss) Before Interest Charges and Minority Interest in Foreign Subsidiary 29,417 (87,992) (58,575) 88,556 29,981 -------------- -------------- --------------- -------------- -------------- INTEREST CHARGES: Interest on Long-Term Debt 55 - 55 - 55 Interest - Intercompany 56,327 9,217 65,544 (9,217) 56,327 Other Interest 56 564 620 - 620 -------------- -------------- --------------- -------------- -------------- 56,438 9,781 66,219 (9,217) 57,002 -------------- -------------- --------------- -------------- -------------- Net Income (Loss) Available for Common Stock $ (27,021) $ (97,773) $ (124,794) $ 97,773 $ (27,021) ============== ============== =============== ============== ============== See Notes to Consolidated Financial Statements included in Item 8 of National Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2001, incorporated herein by reference. SENECA RESOURCES CORPORATION CONSOLIDATING STATEMENT OF EARNINGS REINVESTED IN THE BUSINESS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2001 (THOUSANDS OF DOLLARS) Seneca National Consolidated EARNINGS REINVESTED Resources Fuel Total Before Seneca and IN THE BUSINESS Corporation Exploration Eliminations Eliminations Subsidiary -------------- -------------- --------------- -------------- -------------- Balance at Beginning of Year $ 13,009 $ 6,391 $ 19,400 $ (6,391) $ 13,009 Net Income (Loss) Available for Common Stock (27,021) (97,773) (124,794) 97,773 (27,021) Dividends on Common Stock (8,000) - (8,000) - (8,000) -------------- -------------- --------------- -------------- -------------- Balance at End of Year $ (22,012) $ (91,382) $ (113,394) $ 91,382 $ (22,012) ============== ============== =============== ============== ============== See Notes to Consolidated Financial Statements included in Item 8 of National Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2001, incorporated herein by reference. SENECA RESOURCES CORPORATION CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2001 (THOUSANDS OF DOLLARS) Seneca National Consolidated Resources Fuel Total Before Seneca and Corporation Exploration Eliminations Eliminations Subsidiary ------------- -------------- ------------- ------------- ------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net Income (Loss) $ (27,021) $ (97,773) $ (124,794) $ 97,773 $ (27,021) Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Unremitted (Earnings)/Loss of Subsidiary 97,773 - 97,773 (97,773) - Impairment of Oil & Gas Producing Properties - 180,781 180,781 - 180,781 Depreciation, Depletion & Amortization 78,998 20,248 99,246 - 99,246 Deferred Income Taxes 30,566 (74,911) (44,345) - (44,345) Other (797) - (797) - (797) Change in: Receivables and Unbilled Utility Revenue 6,828 4,296 11,124 - 11,124 Accounts Receivable - Intercompany (9,180) - (9,180) 9,948 768 Materials and Supplies (167) 803 636 - 636 Prepayments 5,373 (654) 4,719 - 4,719 Accounts Payable 33,655 (2,203) 31,452 101 31,553 Accounts Payable - Intercompany 4,169 10,049 14,218 (10,049) 4,169 Other Accruals and Current Liabilities 3,936 (337) 3,599 - 3,599 Other Assets 2,374 (1,221) 1,153 - 1,153 Other Liabilities (14,931) (1,233) (16,164) - (16,164) ------------- -------------- ------------- ------------- ------------- Net Cash Provided by Operating Activities 211,576 37,845 249,421 - 249,421 ------------- -------------- ------------- ------------- ------------- CASH FLOWS FROM INVESTING ACTIVITIES: Capital Expenditures (149,466) (56,834) (206,300) - (206,300) Investment in Subsidiaries, Net of Cash Acquired - (90,567) (90,567) - (90,567) Change in Notes Receivable - Intercompany (99,919) - (99,919) 99,919 - Investment in Associated Company - - - - - Other (6,442) 1,218 (5,224) - (5,224) ------------- -------------- ------------- ------------- ------------- Net Cash Used in Investing Activities (255,827) (146,183) (402,010) 99,919 (302,091) ------------- -------------- ------------- ------------- ------------- CASH FLOWS FROM FINANCING ACTIVITIES: Change in Notes Payable - Intercompany 52,300 99,919 152,219 (99,919) 52,300 Change in Notes Payable to Banks and Commercial Paper - 2,912 2,912 - 2,912 Reduction of Long-Term Debt (1,747) - (1,747) - (1,747) Dividends Paid on Common Stock (8,000) - (8,000) - (8,000) Capital Contribution - - - - - ------------- -------------- ------------- ------------- ------------- Net Cash Provided by Financing Activities 42,553 102,831 145,384 (99,919) 45,465 ------------- -------------- ------------- ------------- ------------- Effect of Exchange Rates on Cash - (853) (853) - (853) ------------- -------------- ------------- ------------- ------------- Net Increase (Decrease) in Cash and Temporary Cash Investments (1,698) (6,360) (8,058) - (8,058) Cash and Temporary Cash Investments at Beginning of Period 1,912 6,703 8,615 - 8,615 ------------- -------------- ------------- ------------- ------------- Cash and Temporary Cash Investments at End of Period $ 214 $ 343 $ 557 $ - $ 557 ============= ============== ============= ============= ============= See Notes to Consolidated Financial Statements included in Item 8 of National Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2001, incorporated herein by reference. SENECA RESOURCES CORPORATION CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2001 (THOUSANDS OF DOLLARS) Seneca National Consolidated Resources Fuel Total Before Seneca and Corporation Exploration Eliminations Eliminations Subsidiary -------------- -------------- --------------- -------------- -------------- Net Income (Loss) Available for Common Stock $ (27,021) $ (97,773) $ (124,794) $ 97,773 $ (27,021) ---------- ---------- ----------- --------- ---------- Other Comprehensive Income (Loss), Before Tax: Foreign Currency Translation Adjustment (14,850) (14,850) (29,700) 14,850 (14,850) Unrealized Gain on Derivative Financial Instruments During the Period 59,986 17,564 77,550 (17,564) 59,986 Reclassification Adjustment for Realized Losses on Derivative Financial Instruments in Net Income 82,859 13,741 96,600 (13,741) 82,859 ---------- ---------- ----------- --------- ---------- Other Comprehensive Income (Loss), Before Tax 127,995 16,455 144,450 (16,455) 127,995 Income Tax Expense Related to Unrealized Gain on Derivative Financial Instruments During the Period 23,586 7,532 31,118 (7,532) 23,586 Reclassification Adjustment for Income Tax Benefit on Losses on Derivative Financial Instruments Realized in Net Income 31,955 5,746 37,701 (5,746) 31,955 ---------- ---------- ----------- --------- ---------- Income Taxes - Net 55,541 13,278 68,819 (13,278) 55,541 ---------- ---------- ----------- --------- ---------- Other Comprehensive Income (Loss), Before Cumulative Effect, Net of Tax 72,454 3,177 75,631 (3,177) 72,454 Cumulative Effect of Change in Accounting (68,902) (18,080) (86,982) 18,080 (68,902) ---------- ---------- ----------- --------- ---------- Other Comprehensive Income (Loss), After Cumulative Effect, Net of Tax 3,552 (14,903) (11,351) 14,903 3,552 ---------- ---------- ----------- --------- ---------- Comprehensive Income (Loss) $ (23,469) $(112,676) $ (136,145) $112,676 $ (23,469) ========== ========== =========== ======== ========== See Notes to Consolidated Financial Statements included in Item 8 of National Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2001, incorporated herein by reference.
NATIONAL FUEL EXPLORATION CORPORATION CONSOLIDATING BALANCE SHEET AT SEPTEMBER 30, 2001 (THOUSANDS OF DOLLARS) National Fuel Consolidated National Fuel Exploration National Fuel Exploration Acquisition Total Before Exploration Corporation Corporation Eliminations Eliminations Corporation -------------- -------------- --------------- -------------- -------------- ASSETS PROPERTY, PLANT & EQUIPMENT $ 296,377 $ 175,421 $ 471,798 $ - $ 471,798 Less: Accumulated DD&A 76,800 146,007 222,807 (4,373) 218,434 -------------- -------------- --------------- -------------- -------------- 219,577 29,414 248,991 4,373 253,364 -------------- -------------- --------------- -------------- -------------- CURRENT ASSETS: Cash and Temporary Cash Investments 65 278 343 - 343 Allowance for Uncollectible Accounts - - - - - Notes Receivable - Intercompany - - - - - Accounts Receivable 6,918 2,052 8,970 - 8,970 Accounts Receivable - Intercompany 3,002 - 3,002 (3,002) - Materials and Supplies 2,646 26 2,672 - 2,672 Prepayments 414 353 767 - 767 -------------- -------------- --------------- -------------- -------------- 13,045 2,709 15,754 (3,002) 12,752 -------------- -------------- --------------- -------------- -------------- OTHER ASSETS: Investment in Associated Company (75,231) - (75,231) 75,231 - Deferred Charges 143 - 143 - 143 Fair Value of Derivative Financial Instruments (262) 4,694 4,432 - 4,432 Notes Receivable - Intercompany 99,919 - 99,919 (99,919) - Other Assets - - - - - -------------- -------------- --------------- -------------- -------------- 24,569 4,694 29,263 (24,688) 4,575 -------------- -------------- --------------- -------------- -------------- TOTAL ASSETS $ 257,191 $ 36,817 $ 294,008 $ (23,317) $ 270,691 ============== ============== =============== ============== ============== CAPITALIZATION & LIABILITIES CAPITALIZATION: Common Stock $ - $ - $ - $ - $ - Paid - in - Capital 78,445 - 78,445 - 78,445 Earnings Reinvested in the Business (95,464) (74,368) (169,832) 78,450 (91,382) -------------- -------------- --------------- ------------- -------------- Total Common Shareholder Equity Before Items of Other Comprehensive Income (17,019) (74,368) (91,387) 78,450 (12,937) Accumulated Other Comprehensive Income (19,525) (863) (20,388) 1,154 (19,234) -------------- -------------- --------------- -------------- -------------- Total Comprehensive Shareholders' Equity (36,544) (75,231) (111,775) 79,604 (32,171) Long-Term Debt, Net of Current Portion - - - - - Notes Payable-Intercompany 253,005 99,919 352,924 (99,919) 253,005 -------------- -------------- --------------- -------------- -------------- Total Capitalization 216,461 24,688 241,149 (20,315) 220,834 -------------- -------------- --------------- -------------- -------------- CURRENT AND ACCRUED LIABILITIES: Current Portion of Long-Term Debt - - - - - Notes Payable to Banks and Commercial Paper 11,980 3,695 15,675 - 15,675 Accounts Payable 10,551 5,371 15,922 - 15,922 Notes Payable - Intercompany - - - - - Accounts Payable - Intercompany 16,230 3,002 19,232 (3,002) 16,230 Dividends Payable - Intercompany - - - - - Other Accruals and Current Liabilities (109) 61 (48) - (48) -------------- -------------- --------------- -------------- -------------- 38,652 12,129 50,781 (3,002) 47,779 -------------- -------------- --------------- -------------- -------------- DEFERRED CREDITS: Accumulated Deferred Income Taxes 2,047 - 2,047 - 2,047 Other Deferred Credits 31 - 31 - 31 -------------- -------------- --------------- -------------- -------------- 2,078 - 2,078 - 2,078 -------------- -------------- --------------- -------------- -------------- TOTAL CAPITALIZATION & LIABILITIES $257,191 $ 36,817 $ 294,008 $ (23,317) $ 270,691 ============== ============== =============== ============== ============== See Notes to Consolidated Financial Statements included in Item 8 of National Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2001, incorporated herein by reference. Note: The financial statements of National Fuel Exploration Acquisition Corp. (presented on pages 57 through 61) represent the financial results of its wholly-owned subsidiary, Player Resources Ltd. (Player). National Fuel Exploration Acquisition Corp. has no operations other than serving as the holding company for the stock of Player. NATIONAL FUEL EXPLORATION CORPORATION CONSOLIDATING STATEMENT OF INCOME FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2001 (THOUSANDS OF DOLLARS) National Fuel Consolidated National Fuel Exploration National Fuel Exploration Acquisition Total Before Exploration Corporation Corporation Eliminations Eliminations Corporation -------------- -------------- --------------- -------------- -------------- OPERATING REVENUE: $ 67,187 $ 6,780 $ 73,967 $ - $ 73,967 -------------- -------------- ------------- -------------- -------------- OPERATING EXPENSE: Purchased Gas - - - - - Operation 24,962 2,446 27,408 - 27,408 Maintenance - - - - - Property, Franchise & Other Taxes 8,264 - 8,264 - 8,264 Impairment of Oil & Gas Producing Properties 52,117 131,735 183,852 (3,071) 180,781 Depreciation, Depletion and Amortization 16,116 5,470 21,586 (1,339) 20,247 Income Taxes (15,842) (58,683) (74,525) 328 (74,197) -------------- -------------- --------------- -------------- -------------- 85,617 80,968 166,585 (4,082) 162,503 -------------- -------------- --------------- -------------- -------------- Operating Income (Loss) (18,430) (74,188) (92,618) 4,082 (88,536) -------------- -------------- --------------- -------------- -------------- OTHER INCOME: Unremitted Loss of Subsidiary (74,368) - (74,368) 74,368 - Interest - Intercompany - - - - - Other 544 - 544 - 544 -------------- -------------- --------------- -------------- -------------- (73,824) - (73,824) 74,368 544 -------------- -------------- --------------- -------------- -------------- Income (Loss) Before Interest Charges and Minority Interest in Foreign Subsidiary (92,254) (74,188) (166,442) 78,450 (87,992) -------------- -------------- --------------- -------------- -------------- INTEREST CHARGES: Interest on Long-Term Debt - - - - - Interest - Intercompany 9,217 - 9,217 - 9,217 Other Interest 384 180 564 - 564 -------------- -------------- --------------- -------------- -------------- 9,601 180 9,781 - 9,781 -------------- -------------- --------------- -------------- -------------- Net Income (Loss) Available for Common Stock $(101,855) $ (74,368) $ (176,223) $ 78,450 $ (97,773) ============== ============== =============== ============== ============== See Notes to Consolidated Financial Statements included in Item 8 of National Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2001, incorporated herein by reference. NATIONAL FUEL EXPLORATION CORPORATION CONSOLIDATING STATEMENT OF EARNINGS REINVESTED IN THE BUSINESS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2001 (THOUSANDS OF DOLLARS) National Fuel Consolidated National Fuel Exploration National Fuel EARNINGS REINVESTED Exploration Acquisition Total Before Exploration IN THE BUSINESS Corporation Corporation Eliminations Eliminations Corporation -------------- -------------- --------------- -------------- -------------- Balance at Beginning of Year $ 6,391 $ - $ 6,391 $ - $ 6,391 Net Income (Loss) Available for Common Stock (101,855) (74,368) (176,223) 78,450 (97,773) Dividends on Common Stock - - - - - -------------- -------------- --------------- -------------- -------------- Balance at End of Year $ (95,464) $ (74,368) $(169,832) $78,450 $ (91,382) ============== ============== =============== ============== ============== See Notes to Consolidated Financial Statements included in Item 8 of National Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2001, incorporated herein by reference. NATIONAL FUEL EXPLORATION CORPORATION CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2001 (THOUSANDS OF DOLLARS) National Fuel Consolidated National Fuel Exploration National Fuel Exploration Acquisition Total Before Exploration Corporation Corporation Eliminations Eliminations Corporation ------------- -------------- ------------- ------------- ------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net Income (Loss) $(101,855) $ (74,368) $ (176,223) $ 78,450 $ (97,773) Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Unremitted Loss of Subsidiary 74,368 - 74,368 (74,368) - Impairment of Oil & Gas Producing Properties 52,117 131,735 183,852 (3,071) 180,781 Depreciation, Depletion & Amortization 16,116 5,470 21,586 (1,339) 20,247 Deferred Income Taxes (16,529) (58,710) (75,239) 328 (74,911) Other - - - - - Change in: Receivables and Unbilled Utility Revenue (383) 4,679 4,296 - 4,296 Accounts Receivable - Intercompany (3,089) - (3,089) 3,089 - Materials and Supplies 803 - 803 - 803 Prepayments (290) (364) (654) - (654) Accounts Payable 2,703 (4,906) (2,203) - (2,203) Accounts Payable - Intercompany 10,049 3,089 13,138 (3,089) 10,049 Other Accruals and Current Liabilities (400) 63 (337) - (337) Other Assets 18 (1,239) (1,221) - (1,221) Other Liabilities (1,233) - (1,233) - (1,233) ------------- -------------- ------------- ------------- ------------- Net Cash Provided by Operating Activities 32,395 5,449 37,844 - 37,844 ------------- -------------- ------------- ------------- ------------- CASH FLOWS FROM INVESTING ACTIVITIES: Capital Expenditures (52,607) (4,227) (56,834) - (56,834) Investment in Subsidiaries, Net of Cash Acquired - (90,567) (90,567) - (90,567) Change in Notes Receivable - Intercompany (99,919) - (99,919) 99,919 - Investment in Associated Company - - - - - Other 904 314 1,218 - 1,218 ------------- -------------- ------------- ------------- ------------- Net Cash Used in Investing Activities (151,622) (94,480) (246,102) 99,919 (146,183) ------------- -------------- ------------- ------------- ------------- CASH FLOWS FROM FINANCING ACTIVITIES: Change in Notes Payable - Intercompany 99,919 99,919 199,838 (99,919) 99,919 Change in Notes Payable to Banks and Commercial Paper 12,326 (9,414) 2,912 - 2,912 Reduction of Long-Term Debt - - - - - Dividends Paid on Common Stock - - - - - Capital Contribution - - - - - ------------- -------------- ------------- ------------- ------------- Net Cash Provided by Financing Activities 112,245 90,505 202,750 (99,919) 102,831 ------------- -------------- ------------- ------------- ------------- Effect of Exchange Rates on Cash 344 (1,196) (852) - (852) ------------- -------------- ------------- ------------- ------------- Net Increase (Decrease) in Cash and Temporary Cash Investments (6,638) 278 (6,360) - (6,360) Cash and Temporary Cash Investments at Beginning of Period 6,703 - 6,703 - 6,703 ------------- -------------- ------------- ------------- ------------- Cash and Temporary Cash Investments at End of Period $ 65 $ 278 $ 343 $ - $ 343 ============= ============== ============= ============= ============= See Notes to Consolidated Financial Statements included in Item 8 of National Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2001, incorporated herein by reference. NATIONAL FUEL EXPLORATION CORPORATION CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2001 (THOUSANDS OF DOLLARS) National Fuel Consolidated National Fuel Exploration National Fuel Exploration Acquisition Total Before Exploration Corporation Corporation Eliminations Eliminations Corporation -------------- -------------- --------------- -------------- -------------- Net Income (Loss) Available for Common Stock $(101,855) $ (74,368) $ (176,223) $78,450 $ (97,773) -------------- ------------- --------------- -------------- -------------- Other Comprehensive Income (Loss), Before Tax: Foreign Currency Translation Adjustment (14,850) (2,856) (17,706) 2,856 (14,850) Unrealized Gain on Derivative Financial Instruments During the Period 17,273 3,489 20,762 (3,198) 17,564 Reclassification Adjustment for Realized Losses on Derivative Financial Instruments in Net Income 13,741 - 13,741 - 13,741 -------------- ------------- --------------- -------------- -------------- Other Comprehensive Income (Loss), Before Tax 16,164 633 16,797 (342) 16,455 Income Tax Expense Related to Unrealized Gain on Derivative Financial Instruments During the Period 7,532 1,496 9,028 (1,496) 7,532 Reclassification Adjustment for Income Tax Benefit on Losses on Derivative Financial Instruments Realized in Net Income 5,746 - 5,746 - 5,746 -------------- ------------- --------------- -------------- -------------- Income Taxes - Net 13,278 1,496 14,774 (1,496) 13,278 -------------- ------------- --------------- -------------- -------------- Other Comprehensive Income (Loss), Before Cumulative Effect, Net of Tax 2,886 (863) 2,023 1,154 3,177 Cumulative Effect of Change in Accounting (18,080) - (18,080) - (18,080) -------------- ------------- --------------- -------------- -------------- Other Comprehensive Income (Loss), After Cumulative Effect, Net of Tax (15,194) (863) (16,057) 1,154 (14,903) -------------- ------------- --------------- -------------- -------------- Comprehensive Income (Loss) $(117,049) $ (75,231) $ (192,280) $79,604 $(112,676) ============== ============= =============== ============== ============== See Notes to Consolidated Financial Statements included in Item 8 of National Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2001, incorporated herein by reference.
HORIZON ENERGY DEVELOPMENT, INC. AND SUBSIDIARIES CONSOLIDATING BALANCE SHEET AT SEPTEMBER 30, 2001 (THOUSANDS OF DOLLARS) Horizon Horizon Energy Energy Sceptre Consolidated Development, Holdings Power Total Before Horizon and Inc. (Consolidated) Company Eliminations Eliminations Subsidiaries ------------ ------------- ------------ ------------ ------------ ------------ ASSETS PROPERTY, PLANT & EQUIPMENT $ $ - $ 271,073 $ - $ 271,073 $ - $ 271,073 Less: Accumulated DD&A - 92,824 - 92,824 - 92,824 ------------ ------------- ------------ ------------ ------------ ------------ - 178,249 - 178,249 - 178,249 ------------ ------------- ------------ ------------ ------------ ------------ CURRENT ASSETS: Cash and Temporary Cash Investments (140) 5,938 11 5,809 - 5,809 Notes Receivable - Intercompany 920 - - 920 (120) 800 Allowance for Uncollectible Accounts - (762) - (762) - (762) Accounts Receivable - Intercompany 2,819 - - 2,819 (2,783) 36 Accounts Receivable - 5,707 10 5,717 - 5,717 Unbilled Utility Revenue - 3,840 - 3,840 - 3,840 Materials and Supplies - 3,014 - 3,014 - 3,014 Prepayments - 27 - 27 - 27 ------------ ------------- ------------ ------------ ------------ ------------ 3,599 17,764 21 21,384 (2,903) 18,481 ------------ ------------- ------------ ------------ ------------ ------------ OTHER ASSETS: Investment in Associated Companies 116,440 - - 116,440 (116,440) - Other Assets - 9,590 - 9,590 - 9,590 Notes Receivable - Intercompany - - - - - - Deferred Charges 40 - - 40 - 40 ------------ ------------- ------------ ------------ ------------ ------------ 116,480 9,590 - 126,070 (116,440) 9,630 ------------ ------------- ------------ ------------ ------------ ------------ TOTAL ASSETS $ 120,079 $ 205,603 $ 21 $ 325,703 $ (119,343) $ 206,360 ============ ============= ============ ============ ============ ============ CAPITALIZATION & LIABILITIES CAPITALIZATION: Common Stock $ 5 $ 2 $ 11,524 $ 11,531 $ (11,526) $ $ 5 Paid - in - Capital 38,246 115,056 - 153,302 (115,056) 38,246 Capital Contribution from Horizon - - - - - - Earnings Reinvested in the Business (9,143) 17,044 (7,576) 325 (9,468) (9,143) ------------ ------------- ------------ ------------ ------------ ------------ Total Common Shareholder Equity Before Items of Other Comprehensive Income 29,108 132,102 3,948 165,158 (136,050) 29,108 Accumulated Other Comprehensive Income (20,253) (19,610) - (39,863) 19,610 (20,253) ------------ ------------- ------------ ------------ ------------ ------------ Total Comprehensive Shareholders' Equity 8,855 112,492 3,948 125,295 (116,440) 8,855 ------------ ------------- ------------ ------------ ------------ ------------ Long-Term Debt, Net of Current Portion - 22,475 - 22,475 - 22,475 Notes Payable - Intercompany 90,000 - - 90,000 - 90,000 ------------ ------------- ------------ ------------ ------------ ------------ Total Capitalization 98,855 134,967 3,948 237,770 (116,440) 121,330 ------------ ------------- ------------ ------------ ------------ ------------ Minority Interest in Foreign Subsidiaries - 22,324 - 22,324 - 22,324 ------------ ------------- ------------ ------------ ------------ ------------ CURRENT AND ACCRUED LIABILITIES: Notes Payable - Intercompany 13,700 120 - 13,820 (120) 13,700 Notes Payable to Banks - 14,098 - 14,098 - 14,098 Current Portion of Long-Term Debt - 9,002 - 9,002 - 9,002 Accounts Payable 126 8,990 15 9,131 (277) 8,854 Accounts Payable - Intercompany 3,844 2,506 - 6,350 (2,506) 3,844 Other Accruals and Current Liabilities 3,796 2,965 (3,923) 2,838 - 2,838 ------------ ------------- ------------ ------------ ------------ ------------ 21,466 37,681 (3,908) 55,239 (2,903) 52,336 ------------ ------------- ------------ ------------ ------------ ------------ DEFERRED CREDITS: Accumulated Deferred Income Taxes (718) 9,961 (20) 9,223 - 9,223 Fair Value of Deriv. Financial Instruments - 581 - 581 - 581 Other Deferred Credits 476 89 1 566 - 566 ------------ ------------- ------------ ------------ ------------ ------------ (242) 10,631 (19) 10,370 - 10,370 ------------ ------------- ------------ ------------ ------------ ------------ TOTAL CAPITALIZATION & LIABILITIES $ 120,079 $ 205,603 $ 21 $ 325,703 $ (119,343) $ 206,360 ============ ============= ============ ============ ============ ============ See Notes to Consolidated Financial Statements included in Item 8 of National Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2001, incorporated herein by reference. HORIZON ENERGY DEVELOPMENT, INC. AND SUBSIDIARIES CONSOLIDATING STATEMENT OF INCOME FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2001 (THOUSANDS OF DOLLARS) Horizon Energy Horizon Energy Sceptre Consolidated Development, Holdings Power Total Before Eliminations Horizon and Inc. (Consolidated) Company Eliminations (Dr) Cr Subsidiaries ------------ ------------- ------------ ------------ ------------ ------------ OPERATING REVENUE: $ - $ 97,937 $ - $ 97,937 $ (27) $ 97,910 ------------ ------------- ------------ ------------ ------------ ------------ OPERATING EXPENSE: Fuel Used in Heat and Electric Generation - 53,334 - 53,334 - 53,334 Operation 3,738 19,403 - 23,141 (26) 23,115 Maintenance - 38 - 38 - 38 Property, Franchise & Other Taxes 15 2,169 - 2,184 - 2,184 Depreciation, Depletion and Amortization 25 12,609 - 12,634 - 12,634 Income Taxes (3,416) 3,669 - 253 - 253 ------------ ------------- ------------ ------------ ------------ ------------ 362 91,222 - 91,584 (26) 91,558 ------------ ------------- ------------ ------------ ------------ ------------ Operating Income (Loss) (362) 6,715 - 6,353 (1) 6,352 ------------ ------------- ------------ ------------ ------------ ------------ OTHER INCOME: Unremitted Earnings of Subsidiaries 3,287 - - 3,287 (3,287) - Interest - Intercompany 24 - - 24 (1) 23 Other 409 1,482 - 1,891 - 1,891 ------------ ------------- ------------ ------------ ------------ ------------ 3,720 1,482 - 5,202 (3,288) 1,914 ------------ ------------- ------------ ------------ ------------ ------------ Income (Loss) Before Interest Charges and and Minority Interest in Foreign Subsidiaries 3,358 8,197 - 11,555 (3,289) 8,266 ------------ ------------- ------------ ------------ ------------ ------------ INTEREST CHARGES: Interest on Long-Term Debt - 3,565 - 3,565 - 3,565 Interest-Intercompany 5,738 1 - 5,739 (1) 5,738 Other Interest 661 1 - 662 - 662 ------------ ------------- ------------ ------------ ------------ ------------ 6,399 3,567 - 9,966 (1) 9,965 ------------ ------------- ------------ ------------ ------------ ------------ Minority Interest in Foreign Subsidiaries - (1,342) - (1,342) - (1,342) ------------ ------------- ------------ ------------ ------------ ------------ Net Income (Loss) Available for Common Stock $ (3,041) $ 3,288 $ - $ 247 $ (3,288) $ (3,041) ============ ============= ============ ============ ============ ============ See Notes to Consolidated Financial Statements included in Item 8 of National Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2001, incorporated herein by reference. HORIZON ENERGY DEVELOPMENT, INC. AND SUBSIDIARIES CONSOLIDATING STATEMENT OF EARNINGS REINVESTED IN THE BUSINESS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2001 (THOUSANDS OF DOLLARS) Horizon Energy Horizon Energy Sceptre Consolidated EARNINGS REINVESTED Development, Holdings Power Total Before Eliminations Horizon and IN THE BUSINESS Inc. (Consolidated) Company Eliminations (Dr) Cr Subsidiaries ------------ ------------- ------------ ------------ ------------ ------------ Balance at Beginning of Year $ (6,102) $ 13,757 $ (7,576) $ 79 $ (6,181) $ (6,102) Net Income (Loss) Available for Common Stock (3,041) 3,288 - 247 (3,288) (3,041) Dividends on Common Stock - - - - - - ------------ ------------- ------------ ------------ ------------ ------------ Balance at End of Year $ (9,143) $ 17,045 $ (7,576) $ 326 $ (9,469) $ (9,143) ============ ============= ============ ============ ============ ============ See Notes to Consolidated Financial Statements included in Item 8 of National Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2001, incorporated herein by reference. HORIZON ENERGY DEVELOPMENT, INC. AND SUBSIDIARIES CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2001 (THOUSANDS OF DOLLARS) Horizon Energy Horizon Energy Sceptre Total Before Consolidated Development, Holdings Power Eliminations Eliminations Horizon and Inc. (Consolidated) Company & Adjustments & Adjustments Subsidiaries ------------ -------------------------- ------------ ------------ ------------ CASH FLOWS FROM OPERATING ACTIVITIES: Net Income (Loss) $ (3,041) $ 3,288 $ - $ 247 $ (3,288) $ (3,041) Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Unremitted Earnings of Subsidiaries (3,287) - - (3,287) 3,287 - Depreciation, Depletion & Amortization 25 12,609 - 12,634 - 12,634 Deferred Income Taxes 22 188 - 210 - 210 Minority Interest in Foreign Subsidiaries - 1,342 - 1,342 - 1,342 Other 130 1,084 - 1,214 - 1,214 Change in: Accounts Receivable - Intercompany (263) - - (263) 227 (36) Receivables and Unbilled Utility Revenue - (402) - (402) - (402) Material and Supplies - 932 - 932 - 932 Prepayments - 33 - 33 - 33 Accounts Payable 15 (157) - (142) (227) (369) Accounts Payable - Intercompany 466 - - 466 - 466 Other Accruals and Current Liabilities 2,062 3,800 - 5,862 - 5,862 Other Assets 5 (1,350) - (1,345) - (1,345) Other Liabilities (403) 87 - (316) - (316) ------------ ------------ ------------ ------------ ------------ ------------ Net Cash Provided by (Used in) Operations (4,269) 21,454 - 17,185 (1) 17,184 ------------ ------------ ------------ ------------ ------------ ------------ CASH FLOWS FROM INVESTING ACTIVITIES: Capital Expenditures - (15,587) - (15,587) - (15,587) Investment in Associated Companies - - - - - - Other - 7,007 - 7,007 - 7,007 ------------ ------------ ------------ ------------ ------------ ------------ Net Cash Provided by (Used In) Investing Activities - (8,580) - (8,580) - (8,580) ------------ ------------ ------------ ------------ ------------ ------------ CASH FLOWS FROM FINANCING ACTIVITIES: Change in Notes Payable to Banks - (5,009) - (5,009) - (5,009) Change in Notes Payable - Intercompany 4,080 120 - 4,200 - 4,200 Return of Capital Contribution - - - - - - Net Proceeds from Issuance of Long-Term Debt - 12,927 - 12,927 - 12,927 Reduction of Long-Term Debt - (20,724) - (20,724) - (20,724) ------------ ------------ ------------ ------------ ------------ ------------ Net Cash Provided by (Used in) Financing Activities 4,080 (12,686) - (8,606) - (8,606) ------------ ------------ ------------ ------------ ------------ ------------ Effect of Exchange Rates on Cash - 208 - 208 - 208 ------------ ------------ ------------ ------------ ------------ ------------ Net Increase (Decrease) in Cash and Temporary Cash Investments (189) 396 - 207 (1) 206 Cash and Temporary Cash Investments of Beginning of Period 49 5,542 11 5,602 - 5,602 ------------ ------------ ------------ ------------ ------------ ------------ Cash and Temporary Cash Investments at End of Year $ (140) $ 5,938 $ 11 $ 5,809 $ (1) $ 5,808 ============ ============ ============ ============ ============ ============ See Notes to Consolidated Financial Statements included in Item 8 of National Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2001, incorporated herein by reference. HORIZON ENERGY DEVELOPMENT, INC. AND SUBSIDIARIES CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2001 (THOUSANDS OF DOLLARS) Horizon Energy Horizon Energy Sceptre Total Before Consolidated Development, Holdings Power Eliminations Eliminations Horizon and Inc. (Consolidated) Company & Adjustments (Dr) Cr Subsidiaries ------------ ------------- ------------ ------------ ------------ ------------ Net Income (Loss) Available for Common Stock $ (3,041) $ 3,288 $ - $ 247 $ (3,288) $ (3,041) ------------ ------------- ------------ ------------ ------------ ------------ Other Comprehensive Income (Loss) : Foreign Currency Translation Adjustment 7,692 7,692 - 15,384 (7,692) 7,692 Unrealized Gain / (Loss) on Derivative Financial Instruments During the Period (139) (139) - (278) 139 (139) Reclassification Adjustment for Realized (Gains)/Losses on Derivative Financial Instruments in Net Income 796 796 - 1,592 (796) 796 ------------ ------------- ------------ ------------ ------------ ------------ Other Comprehensive Income (Loss), Before Tax 8,349 8,349 - 16,698 (8,349) 8,349 Income Tax Expense/(Benefit) Related to Unrealized Gain/ (Loss) on Derivative Financial Instruments During the Period (43) (43) - (86) 43 (43) Reclassification Adjustment for Income Tax Benefit/(Expense) on Derivative Financial Instruments in Net Income 247 247 - 494 (247) 247 ------------ ------------- ------------ ------------ ------------ ------------ Income Taxes - Net 204 204 - 408 (204) 204 ------------ ------------- ------------ ------------ ------------ ------------ Other Comprehensive Income (Loss), Before Cumulative Effect, Net of Tax 8,145 8,145 - 16,290 (8,145) 8,145 ------------ ------------- ------------ ------------ ------------ ------------ Cumulative Effect of Change in Accounting (793) (793) - (1,586) 793 (793) ------------ ------------- ------------ ------------ ------------ ------------ Other Comprehensive Income (Loss), After Cumulative Effect Net of Tax 7,352 7,352 - 14,704 (7,352) 7,352 ------------ ------------- ------------ ------------ ------------ ------------ Comprehensive Income (Loss) $ 4,311 $ 10,640 $ - $ 14,951 $ (10,640) $ 4,311 ============ ============= ============ ============ ============ ============ See Notes to Consolidated Financial Statements included in Item 8 of National Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2001, incorporated herein by reference.
HORIZON ENERGY HOLDINGS CONSOLIDATING BALANCE SHEET AT SEPTEMBER 30, 2001 (THOUSANDS OF DOLLARS) Consolidated Horizon Horizon Energy Horizon Energy Development B.V. Total Before Energy Holdings Holdings (Consolidated) Eliminations Eliminations and Subsidiaries ----------- -------------- ------------ ----------- ---------------- ASSETS PROPERTY, PLANT & EQUIPMENT $ - $ 271,073 $ 271,073 $ - $ 271,073 Less: Accumulated DD&A - 92,824 92,824 - 92,824 ----------- ------------ ----------- ----------- ----------- - 178,249 178,249 - 178,249 ----------- ------------ ----------- ----------- ----------- CURRENT ASSETS: Cash and Temporary Cash Investments - 5,938 5,938 - 5,938 Notes Receivable - Intercompany - - - - - Allowance for Uncollectible Accounts - (762) (762) - (762) Accounts Receivable - Intercompany - - - - - Accounts Receivable - 5,707 5,707 - 5,707 Unbilled Utility Revenue - 3,840 3,840 - 3,840 Materials and Supplies - 3,014 3,014 - 3,014 Prepayments - 27 27 - 27 ----------- ------------ ----------- ----------- ----------- - 17,764 17,764 - 17,764 ----------- ------------ ----------- ----------- ----------- OTHER ASSETS: Investment in Associated Companies 112,492 - 112,492 (112,492) - Other Assets - 9,590 9,590 - 9,590 Notes Receivable - Intercompany - - - - - Deferred Charges - - - - - ----------- ------------ ----------- ----------- ----------- 112,492 9,590 122,082 (112,492) 9,590 ----------- ------------ ----------- ----------- ----------- TOTAL ASSETS $ 112,492 $ 205,603 $ 318,095 $ (112,492) $ 205,603 =========== ============ =========== =========== =========== CAPITALIZATION & LIABILITIES CAPITALIZATION: Common Stock $ 2 $ 29 $ 31 $ (29) $ 2 Paid - in - Capital 115,056 109,921 224,977 (109,921) 115,056 Earnings Reinvested in the Business 17,044 22,794 39,838 (22,794) 17,044 ----------- ------------ ------------ ----------- ----------- Total Common Shareholder Equity Before Items of Other Comprehensive Income 132,102 132,744 264,846 (132,744) 132,102 Accumulated Other Comprehensive Income (19,610) (20,252) (39,862) 20,252 (19,610) ----------- ------------ ----------- ----------- ----------- Total Comprehensive Shareholders' Equity 112,492 112,492 224,984 (112,492) 112,492 ----------- ------------ ----------- ----------- ----------- Long-Term Debt, Net of Current Portion - 22,475 22,475 - 22,475 Notes Payable - Intercompany - - - - - ----------- ------------ ----------- ----------- ----------- Total Capitalization 112,492 134,967 247,459 (112,492) 134,967 ----------- ------------ ----------- ----------- ----------- Minority Interest in Foreign Subsidiaries - 22,324 22,324 - 22,324 ----------- ------------ ----------- ----------- ----------- CURRENT AND ACCRUED LIABILITIES: Notes Payable - Intercompany - 120 120 - 120 Notes Payable to Banks - 14,098 14,098 - 14,098 Current Portion of Long-Term Debt - 9,002 9,002 - 9,002 Accounts Payable - 8,990 8,990 - 8,990 Accounts Payable - Intercompany - 2,506 2,506 - 2,506 Other Accruals and Current Liabilities - 2,965 2,965 - 2,965 ----------- ------------ ----------- ----------- ----------- - 37,681 37,681 - 37,681 ----------- ------------ ----------- ----------- ----------- DEFERRED CREDITS: Accumulated Deferred Income Taxes - 9,961 9,961 - 9,961 Fair Value of Deriv. Financial Instruments - 581 581 - 581 Other Deferred Credits - 89 89 - 89 ----------- ------------ ----------- ----------- ----------- - 10,631 10,631 - 10,631 ----------- ------------ ----------- ----------- ----------- TOTAL CAPITALIZATION & LIABILITIES $ 112,492 $ 205,603 $ 318,095 $ (112,492) $ 205,603 =========== ============ =========== =========== =========== See Notes to Consolidated Financial Statements included in Item 8 of National Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2001, incorporated herein by reference. HORIZON ENERGY HOLDINGS CONSOLIDATING STATEMENT OF INCOME FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2001 (THOUSANDS OF DOLLARS) Consolidated Horizon Horizon Energy Horizon Energy Energy Development B.V. Total Before Eliminations Holdings and Holdings (Consolidated) Eliminations (Dr) Cr Subsidiaries ----------- ------------ ------------- ------------ ------------- OPERATING REVENUE: $ - $ 97,937 $ 97,937 $ - $ 97,937 ----------- ------------ ----------- ----------- ----------- OPERATING EXPENSE: Fuel Used in Heat and Electric Generation - 53,334 53,334 - 53,334 Operation - 19,403 19,403 - 19,403 Maintenance - 38 38 - 38 Property, Franchise & Other Taxes - 2,169 2,169 - 2,169 Depreciation, Depletion and Amortization - 12,609 12,609 - 12,609 Income Taxes - 3,669 3,669 - 3,669 ----------- ------------ ----------- ----------- ----------- - 91,222 91,222 - 91,222 ----------- ------------ ----------- ----------- ----------- Operating Income (Loss) - 6,715 6,715 - 6,715 ----------- ------------ ----------- ----------- ----------- OTHER INCOME: Unremitted Earnings of Subsidiaries 3,287 - 3,287 (3,287) - Interest - Intercompany - - - - - Other - 1,482 1,482 - 1,482 ----------- ------------ ----------- ----------- ----------- 3,287 1,482 4,769 (3,287) 1,482 ----------- ------------ ----------- ----------- ----------- Income (Loss) Before Interest Charges and and Minority Interest in Foreign Subsidiaries 3,287 8,197 11,484 (3,287) 8,197 ----------- ------------ ----------- ----------- ----------- INTEREST CHARGES: Interest on Long-Term Debt - 3,565 3,565 - 3,565 Interest-Intercompany - 1 1 - 1 Other Interest - 1 1 - 1 ----------- ------------ ----------- ----------- ----------- - 3,567 3,567 - 3,567 ----------- ------------ ----------- ----------- ----------- Minority Interest in Foreign Subsidiaries - (1,342) (1,342) - (1,342) ----------- ------------ ----------- ----------- ----------- Net Income (Loss) Available for Common Stock $ 3,287 $ 3,288 $ 6,575 $ (3,287) $ 3,288 =========== ============ =========== =========== =========== See Notes to Consolidated Financial Statements included in Item 8 of National Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2001, incorporated herein by reference. HORIZON ENERGY HOLDINGS CONSOLIDATING STATEMENT OF EARNINGS REINVESTED IN THE BUSINESS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2001 (THOUSANDS OF DOLLARS) Consolidated Horizon Horizon Energy Horizon Energy EARNINGS REINVESTED Energy Development B.V. Total Before Eliminations Holdings and IN THE BUSINESS Holdings (Consolidated) Eliminations (Dr) Cr Subsidiaries ----------- ------------ ----------- ------------ ----------- Balance at Beginning of Year $ 13,757 $ 19,507 $ 33,264 $ (19,507) $ 13,757 Net Income (Loss) Available for Common Stock 3,287 3,288 6,575 (3,287) 3,288 Dividends on Common Stock - - - - - ----------- ------------ ----------- ----------- ----------- Balance at End of Year $ 17,044 $ 22,795 $ 39,839 $ (22,794) $ 17,045 =========== ============ =========== =========== =========== See Notes to Consolidated Financial Statements included in Item 8 of National Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2001, incorporated herein by reference. HORIZON ENERGY HOLDINGS CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2001 (THOUSANDS OF DOLLARS) Consolidated Horizon Horizon Energy Total Before Horizon Energy Energy Development B.V. Eliminations Holdings and Holdings (Consolidated) & Adjustments Eliminations Subsidiaries ----------- ---------------- ------------- ------------ ------------ CASH FLOWS FROM OPERATING ACTIVITIES: Net Income (Loss) $ 3,287 $ 3,288 $ 6,575 $ (3,287) $ 3,288 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Unremitted Earnings of Subsidiaries (3,287) - (3,287) 3,287 - Depreciation, Depletion & Amortization - 12,609 12,609 - 12,609 Deferred Income Taxes - 188 188 - 188 Minority Interest in Foreign Subsidiaries - 1,342 1,342 - 1,342 Other - 1,084 1,084 - 1,084 Change in: Accounts Receivable - Intercompany - - - - - Receivables and Unbilled Utility Revenue - (402) (402) - (402) Material and Supplies - 932 932 - 932 Prepayments - 33 33 - 33 Accounts Payable - (157) (157) - (157) Accounts Payable - Intercompany - - - - - Other Accruals and Current Liabilities - 3,800 3,800 - 3,800 Other Assets - (1,350) (1,350) - (1,350) Other Liabilities - 87 87 - 87 ----------- ----------- ----------- ----------- ----------- Net Cash Provided by (Used in) Operations - 21,454 21,454 - 21,454 ----------- ----------- ----------- ----------- ----------- CASH FLOWS FROM INVESTING ACTIVITIES: Capital Expenditures - (15,587) (15,587) - (15,587) Investment in Associated Companies - - - - - Other - 7,007 7,007 - 7,007 ----------- ----------- ----------- ----------- ----------- Net Cash Provided by (Used In) Investing Activities - (8,580) (8,580) - (8,580) ----------- ----------- ----------- ----------- ----------- CASH FLOWS FROM FINANCING ACTIVITIES: Change in Notes Payable to Banks - (5,009) (5,009) - (5,009) Change in Notes Payable - Intercompany - 120 120 - 120 Net Proceeds from Issuance of Long-Term Debt - 12,927 12,927 - 12,927 Reduction of Long-Term Debt - (20,724) (20,724) - (20,724) ----------- ----------- ----------- ----------- ----------- Net Cash Provided by (Used in) Financing Activities - (12,686) (12,686) - (12,686) ----------- ----------- ----------- ----------- ----------- Effect of Exchange Rates on Cash - 208 208 - 208 ----------- ----------- ----------- ----------- ----------- Net Increase (Decrease) in Cash and Temporary Cash Investments - 396 396 - 396 Cash and Temporary Cash Investments of Beginning of Period - 5,542 5,542 - 5,542 ----------- ----------- ----------- ----------- ----------- Cash and Temporary Cash Investments at End of Year $ - $ 5,938 $ 5,938 $ - $ 5,938 =========== =========== =========== =========== =========== See Notes to Consolidated Financial Statements included in Item 8 of National Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2001, incorporated herein by reference. HORIZON ENERGY HOLDINGS CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2001 (THOUSANDS OF DOLLARS) Consolidated Horizon Horizon Energy Total Before Horizon Energy Energy Development B.V. Eliminations Eliminations Holdings and Holdings (Consolidated) & Adjustments (Dr) Cr Subsidiaries ----------- --------------- ------------- ---------- --------------- Net Income (Loss) Available for Common Stock $ 3,287 $ 3,288 $ 6,575 $ (3,287) $ 3,288 ----------- ------------ ----------- ----------- ----------- Other Comprehensive Income (Loss) : Foreign Currency Translation Adjustment 7,692 7,692 15,384 (7,692) 7,692 Unrealized Gain / (Loss) on Derivative Financial Instruments During the Period (139) (139) (278) 139 (139) Reclassification Adjustment for Realized (Gains)/Losses on Derivative Financial Instruments in Net Income 796 796 1,592 (796) 796 ----------- ------------ ----------- ----------- ----------- Other Comprehensive Income (Loss), Before Tax 8,349 8,349 16,698 (8,349) 8,349 Income Tax Expense/(Benefit) Related to Unrealized Gain/ (Loss) on Derivative Financial Instruments During the Period (43) (43) (86) 43 (43) Reclassification Adjustment for Income Tax Benefit/(Expense) on Derivative Financial Instruments in Net Income 247 247 494 (247) 247 ----------- ------------ ----------- ----------- ----------- Income Taxes - Net 204 204 408 (204) 204 ----------- ------------ ----------- ----------- ----------- Other Comprehensive Income (Loss), Before Cumulative Effect, Net of Tax 8,145 8,145 16,290 (8,145) 8,145 ----------- ------------ ----------- ----------- ----------- Cumulative Effect of Change in Accounting (793) (793) (1,586) 793 (793) ----------- ------------ ----------- ----------- ----------- Other Comprehensive Income (Loss), After Cumulative Effect Net of Tax 7,352 7,352 14,704 (7,352) 7,352 ----------- ------------ ----------- ----------- ----------- Comprehensive Income (Loss) $ 10,639 $ 10,640 $ 21,279 $ (10,639) $ 10,640 =========== ============ =========== =========== =========== See Notes to Consolidated Financial Statements included in Item 8 of National Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2001, incorporated herein by reference.
HORIZON ENERGY DEVELOPMENT, B.V. CONSOLIDATING BALANCE SHEET AT SEPTEMBER 30, 2001 (THOUSANDS OF DOLLARS) United Energy, a.s. Consolidated (UE) Power Horizon Energy Total Before Horizon B.V. Horizon B.V. (Consolidated) Development Kromeriz Development, s.r.o. Eliminations Eliminations and Subsidiaries -------------------- -------------------- -------------------- --------------------- -------------------- -------------------- -------------------- -------------------- ASSETS PROPERTY, PLANT & EQUIPMENT $ - $ 269,717 $ - $ 1,135 $ 221 $ 271,073 $ - $ 271,073 Less: Accumulated DD&A - 91,511 - 1,135 178 92,824 - 92,824 -------------------- -------------------- -------------------- --------------------- -------------------- -------------------- -------------------- -------------------- - 178,206 - - 43 178,249 - 178,249 -------------------- -------------------- -------------------- --------------------- -------------------- -------------------- -------------------- -------------------- CURRENT ASSETS: Cash and Temporary Cash Investments 34 4,426 2 6 1,470 5,938 - 5,938 Notes Receivable - Intercompany 18 - - - 54 72 (72) - Allowance for Uncollectible Accounts - (762) - - - (762) - (762) Accounts Receivable - Intercompany - - - - 115 115 (115) - Accounts Receivable - 5,438 - 176 93 5,707 - 5,707 Unbilled Utility Revenue - 3,840 - - - 3,840 - 3,840 Materials and Supplies - 3,014 - - - 3,014 - 3,014 Prepayments - 24 - - 3 27 - 27 -------------------- -------------------- -------------------- --------------------- -------------------- -------------------- -------------------- -------------------- 52 15,980 2 182 1,735 17,951 (187) 17,764 -------------------- -------------------- -------------------- --------------------- -------------------- -------------------- -------------------- -------------------- OTHER ASSETS: Investment in Associated Companies 115,093 - - - - 115,093 (115,093) - Other Assets (27) 9,059 - (35) 593 9,590 - 9,590 Notes Receivable - Intercompany - - - - 95 95 (95) - Deferred Charges - - - - - - - - -------------------- -------------------- -------------------- --------------------- -------------------- -------------------- -------------------- -------------------- 115,066 9,059 - (35) 688 124,778 (115,188) 9,590 -------------------- -------------------- -------------------- --------------------- -------------------- -------------------- -------------------- -------------------- TOTAL ASSETS $ 115,118 $ 203,245 $ 2 $ 147 $ 2,466 $ 320,978 $ (115,375) $ 205,603 ==================== ==================== ==================== ===================== ==================== ==================== ==================== ==================== CAPITALIZATION & LIABILITIES CAPITALIZATION: Common Stock $ 29 $ 59,770 $ (506) $ 1,524 $ 1,779 $ 62,596 $ (62,567) $ 29 Paid - in - Capital 109,921 50,804 1,623 354 - 162,702 (52,781) 109,921 Earnings Reinvested in the Business 22,794 21,619 (258) (1,642) 770 43,283 (20,489) 22,794 -------------------- -------------------- -------------------- --------------------- -------------------- -------------------- -------------------- -------------------- Total Common Shareholder Equity Before Items of Other Comprehensive Income 132,744 132,193 859 236 2,549 268,581 (135,837) 132,744 Accumulated Other Comprehensive Income (20,252) (19,374) (857) (299) (214) (40,996) 20,744 (20,252) -------------------- -------------------- -------------------- --------------------- -------------------- -------------------- -------------------- -------------------- Total Comprehensive Shareholders' Equity 112,492 112,819 2 (63) 2,335 227,585 (115,093) 112,492 -------------------- -------------------- -------------------- --------------------- -------------------- -------------------- -------------------- -------------------- Long-Term Debt, Net of Current Portion - 22,475 - - - 22,475 - 22,475 Notes Payable - Intercompany - - - 82 - 82 (82) - -------------------- -------------------- -------------------- --------------------- -------------------- -------------------- -------------------- -------------------- Total Capitalization 112,492 135,294 2 19 2,335 250,142 (115,175) 134,967 -------------------- -------------------- -------------------- --------------------- -------------------- -------------------- -------------------- -------------------- Minority Interest in Foreign Subsidiaries - 22,324 - - - 22,324 - 22,324 -------------------- -------------------- -------------------- --------------------- -------------------- -------------------- -------------------- -------------------- CURRENT AND ACCRUED LIABILITIES: Notes Payable - Intercompany 120 - - - - 120 - 120 Notes Payable to Banks - 14,098 - - - 14,098 - 14,098 Current Portion of Long-Term Debt - 9,002 - - - 9,002 - 9,002 Accounts Payable - 8,976 - 140 51 9,167 (177) 8,990 Accounts Payable - Intercompany 2,506 - - 23 - 2,529 (23) 2,506 Other Accruals and Current Liabilities - 2,920 - (35) 80 2,965 - 2,965 -------------------- -------------------- -------------------- --------------------- -------------------- -------------------- -------------------- -------------------- 2,626 34,996 - 128 131 37,881 (200) 37,681 -------------------- -------------------- -------------------- --------------------- -------------------- -------------------- -------------------- -------------------- DEFERRED CREDITS: Accumulated Deferred Income Taxes - 9,961 - - - 9,961 - 9,961 Fair Value of Deriv. Financial Instruments - 581 - - - 581 - 581 Other Deferred Credits - 89 - - - 89 - 89 -------------------- -------------------- -------------------- --------------------- -------------------- -------------------- -------------------- -------------------- - 10,631 - - - 10,631 - 10,631 -------------------- -------------------- -------------------- --------------------- -------------------- -------------------- -------------------- -------------------- TOTAL CAPITALIZATION & LIABILITIES $ 115,118 $ 203,245 $ 2 $ 147 $ 2,466 $ 320,978 $ (115,375) $ 205,603 ==================== ==================== ==================== ===================== ==================== ==================== ==================== ==================== See Notes to Consolidated Financial Statements included in Item 8 of National Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2001, incorporated herein by reference. HORIZON ENERGY DEVELOPMENT, B.V. CONSOLIDATING STATEMENT OF INCOME FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2001 (THOUSANDS OF DOLLARS) Consolidated UE Power Horizon Energy Total Before Eliminations Horizon B.V. Horizon B.V. (Consolidated) Development Kromeriz Development, s.r.o. Eliminations (Dr) Cr and Subsidiaries -------------------- -------------------- -------------------- --------------------- -------------------- -------------------- -------------------- -------------------- OPERATING REVENUE: $ - $ 96,925 $ - $ 975 $ 930 $ 98,830 $ (893) $ 97,937 -------------------- -------------------- -------------------- --------------------- -------------------- -------------------- -------------------- -------------------- OPERATING EXPENSE: Fuel Used in Heat and Electric Generation - 52,601 - 733 - 53,334 - 53,334 Operation 61 18,646 153 781 656 20,297 (894) 19,403 Maintenance - - - 31 7 38 - 38 Property, Franchise & Other Taxes 4 2,070 5 1 89 2,169 - 2,169 Depreciation, Depletion and Amortization - 11,654 - 924 31 12,609 - 12,609 Income Taxes - 3,664 - - 5 3,669 - 3,669 -------------------- -------------------- -------------------- --------------------- -------------------- -------------------- -------------------- -------------------- 65 88,635 158 2,470 788 92,116 (894) 91,222 -------------------- -------------------- -------------------- --------------------- -------------------- -------------------- -------------------- -------------------- Operating Income (Loss) (65) 8,290 (158) (1,495) 142 6,714 1 6,715 -------------------- -------------------- -------------------- --------------------- -------------------- -------------------- -------------------- -------------------- OTHER INCOME: Unremitted Earnings of Subsidiaries 3,354 - - - - 3,354 (3,354) - Other - 1,209 - 190 83 1,482 - 1,482 -------------------- -------------------- -------------------- --------------------- -------------------- -------------------- -------------------- -------------------- 3,354 1,209 - 190 83 4,836 (3,354) 1,482 -------------------- -------------------- -------------------- --------------------- -------------------- -------------------- -------------------- -------------------- Income (Loss) Before Interest Charges and and Minority Interest in Foreign Subsidiaries 3,289 9,499 (158) (1,305) 225 11,550 (3,353) 8,197 -------------------- -------------------- -------------------- --------------------- -------------------- -------------------- -------------------- -------------------- INTEREST CHARGES: Interest on Long-Term Debt - 3,554 - 11 - 3,565 - 3,565 Interest-Intercompany 1 - - - - 1 - 1 Other Interest 1 - - - - 1 - 1 -------------------- -------------------- -------------------- --------------------- -------------------- -------------------- -------------------- -------------------- 2 3,554 - 11 - 3,567 - 3,567 -------------------- -------------------- -------------------- --------------------- -------------------- -------------------- -------------------- -------------------- Minority Interest in Foreign Subsidiaries - (1,342) - - - (1,342) - (1,342) -------------------- -------------------- -------------------- --------------------- -------------------- -------------------- -------------------- -------------------- Net Income (Loss) Available for Common Stock $ 3,287 $ 4,603 $ (158) $ (1,316) $ 225 $ 6,641 $ (3,353) $ 3,288 ==================== ==================== ==================== ===================== ==================== ==================== ==================== ==================== See Notes to Consolidated Financial Statements included in Item 8 of National Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2001, incorporated herein by reference. HORIZON ENERGY DEVELOPMENT, B.V. CONSOLIDATING STATEMENT OF EARNINGS REINVESTED IN THE BUSINESS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2001 (THOUSANDS OF DOLLARS) Consolidated EARNINGS REINVESTED UE Power Horizon Energy Total Before Eliminations Horizon B.V. IN THE BUSINESS Horizon B.V. (Consolidated) Development Kromeriz Development, s.r.o. Eliminations (Dr) Cr and Subsidiaries -------------------- -------------------- -------------------- --------------------- -------------------- -------------------- -------------------- -------------------- Balance at Beginning of Year $ 19,507 $ 17,017 $ (100) $ (326) $ 545 $ 36,643 $ (17,136) $ 19,507 Net Income (Loss) Available for Common Stock 3,287 4,603 (158) (1,316) 225 6,641 (3,353) 3,288 Dividends on Common Stock - - - - - - - - -------------------- -------------------- -------------------- --------------------- -------------------- -------------------- -------------------- -------------------- Balance at End of Year $ 22,794 $ 21,620 $ (258) $ (1,642) $ 770 $ 43,284 $ (20,489) $ 22,795 ==================== ==================== ==================== ===================== ==================== ==================== ==================== ==================== See Notes to Consolidated Financial Statements included in Item 8 of National Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2001, incorporated herein by reference. HORIZON ENERGY DEVELOPMENT, B.V. CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2001 (THOUSANDS OF DOLLARS) Consolidated UE Power Horizon Energy Total Before Horizon B.V. Horizon B.V. (Consolidated) Development Kromeriz Development, s.r.o. Eliminations Eliminations and Subsidiaries -------------------- --------------------- -------------------- --------------------- -------------------- --------------------- -------------------- -------------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net Income (Loss) $ 3,287 $ 4,603 $ (158) $ (1,316) $ 225 $ 6,641 $ (3,353) $ 3,288 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Unremitted Earnings of Subsidiaries (3,354) - - - - (3,354) 3,354 - Depreciation, Depletion & Amortization - 11,654 - 924 31 12,609 - 12,609 Deferred Income Taxes - 182 - - 6 188 - 188 Minority Interest in Foreign Subsidiaries - 1,342 - - - 1,342 - 1,342 Other - 578 - 483 23 1,084 - 1,084 Change in: Accounts Receivable - Intercompany - - - - 25 25 (25) - Receivables and Unbilled Utility Revenue - (493) - 92 (1) (402) - (402) Material and Supplies - 932 - - - 932 - 932 Prepayments - 9 - 2 22 33 - 33 Accounts Payable - (234) (1) 64 (2) (173) 16 (157) Accounts Payable - Intercompany - - - - - - - - Other Accruals and Current Liabilities - 3,774 - (35) 61 3,800 - 3,800 Other Assets (13) (1,487) 115 35 - (1,350) - (1,350) Other Liabilities 1 86 - - - 87 - 87 -------------------- --------------------- -------------------- --------------------- -------------------- --------------------- -------------------- -------------------- Net Cash Provided by (Used in) Operations (79) 20,946 (44) 249 390 21,462 (8) 21,454 -------------------- --------------------- -------------------- --------------------- -------------------- --------------------- -------------------- -------------------- CASH FLOWS FROM INVESTING ACTIVITIES: Capital Expenditures - (15,451) - (135) (1) (15,587) - (15,587) Change in Notes Receivable - Intercompany (19) - - - (7) (26) 26 - Investment in Associated Companies - - - - - - - - Other (100) 7,383 - - (276) 7,007 - 7,007 -------------------- --------------------- -------------------- --------------------- -------------------- --------------------- -------------------- -------------------- Net Cash Provided by (Used In) Investing Activities (119) (8,068) - (135) (284) (8,606) 26 (8,580) -------------------- --------------------- -------------------- --------------------- -------------------- --------------------- -------------------- -------------------- CASH FLOWS FROM FINANCING ACTIVITIES: Change in Notes Payable to Banks - (5,009) - - - (5,009) - (5,009) Change in Notes Payable - Intercompany 120 - 18 - - 138 (18) 120 Net Proceeds from Issuance of Long-Term Debt - 12,927 - - - 12,927 - 12,927 Reduction of Long-Term Debt - (20,724) - - - (20,724) - (20,724) -------------------- --------------------- -------------------- --------------------- -------------------- --------------------- -------------------- -------------------- Net Cash Provided by (Used in) Financing Activities 120 (12,806) 18 - - (12,668) (18) (12,686) -------------------- --------------------- -------------------- --------------------- -------------------- --------------------- -------------------- -------------------- Effect of Exchange Rates on Cash - 201 26 (134) 115 208 - 208 -------------------- --------------------- -------------------- --------------------- -------------------- --------------------- -------------------- -------------------- Net Increase (Decrease) in Cash and Temporary Cash Investments (78) 273 - (20) 221 396 - 396 Cash and Temporary Cash Investments of Beginning of Period 112 4,153 2 26 1,249 5,542 - 5,542 -------------------- --------------------- -------------------- --------------------- -------------------- --------------------- -------------------- -------------------- Cash and Temporary Cash Investments at End of Year $ 34 $ 4,426 $ 2 $ 6 $ 1,470 $ 5,938 $ - $ 5,938 ==================== ===================== ==================== ===================== ==================== ===================== ==================== ==================== See Notes to Consolidated Financial Statements included in Item 8 of National Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2001, incorporated herein by reference. HORIZON ENERGY DEVELOPMENT, B.V. CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2001 (THOUSANDS OF DOLLARS) Consolidated UE Power Horizon Energy Total Before Eliminations Horizon B.V. Horizon B.V. (Consolidated) Development Kromeriz Development, s.r.o. Eliminations (Dr) Cr and Subsidiaries -------------------- -------------------- -------------------- --------------------- -------------------- -------------------- -------------------- -------------------- Net Income (Loss) Available for Common Stock $ 3,287 $ 4,603 $ (158) $ (1,316) $ 225 $ 6,641 $ (3,353) $ 3,288 -------------------- -------------------- -------------------- --------------------- -------------------- -------------------- -------------------- -------------------- Other Comprehensive Income (Loss) : Foreign Currency Translation Adjustment 7,692 7,592 (276) (223) 146 14,931 (7,239) 7,692 Unrealized Gain / (Loss) on Derivative Financial Instruments During the Period (139) (139) - - - (278) 139 (139) Reclassification Adjustment for Realized (Gains)/Losses on Derivative Financial Instruments in Net Income 796 796 - - - 1,592 (796) 796 -------------------- -------------------- -------------------- --------------------- -------------------- -------------------- -------------------- -------------------- Other Comprehensive Income (Loss), Before Tax 8,349 8,249 (276) (223) 146 16,245 (7,896) 8,349 Income Tax Expense/(Benefit) Related to Unrealized Gain/(Loss) on Derivative Financial Instruments During the Period (43) (43) - - - (86) 43 (43) Reclassification Adjustment for Income Tax Benefit/(Expense) on Derivative Financial Instruments in Net Income 247 247 - - - 494 (247) 247 -------------------- -------------------- -------------------- --------------------- -------------------- -------------------- -------------------- -------------------- Income Taxes - Net 204 204 - - - 408 (204) 204 -------------------- -------------------- -------------------- --------------------- -------------------- -------------------- -------------------- -------------------- Other Comprehensive Income (Loss), After Cumulative Effect, Net of Tax 8,145 8,045 (276) (223) 146 15,837 (7,692) 8,145 -------------------- -------------------- -------------------- --------------------- -------------------- -------------------- -------------------- -------------------- Cumulative Effect of Change in Accounting (793) (793) - - - (1,586) 793 (793) -------------------- -------------------- -------------------- --------------------- -------------------- -------------------- -------------------- -------------------- Other Comprehensive Income (Loss), After Cumulative Effect Net of Tax 7,352 7,252 (276) (223) 146 14,251 (6,899) 7,352 -------------------- -------------------- -------------------- --------------------- -------------------- -------------------- -------------------- -------------------- Comprehensive Income (Loss) $ 10,639 $ 11,855 $ (434) $ (1,539) $ 371 $ 20,892 $ (10,252) $ 10,640 ==================== ==================== ==================== ===================== ==================== ==================== ==================== ==================== See Notes to Consolidated Financial Statements included in Item 8 of National Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2001, incorporated herein by reference.
UNITED ENERGY, a.s. CONSOLIDATING BALANCE SHEET AT SEPTEMBER 30, 2001 (THOUSANDS OF DOLLARS) Jablonecka Teplarenska a Consolidated Teplarna Realitni, as Total Before UE and UE Liberec (JTR) ENOP Eliminations Eliminations Subsidiaries ----------- ------------ ----------- ----------- ------------ ------------ ----------- ASSETS PROPERTY, PLANT & EQUIPMENT $ 254,445 $ 15,200 $ - $ 72 $ 269,717 $ - $ 269,717 Less: Accumulated DD&A 86,567 4,611 - 333 91,511 - 91,511 ----------- ------------ ----------- ----------- ----------- ----------- ----------- 167,878 10,589 - (261) 178,206 - 178,206 ----------- ------------ ----------- ----------- ----------- ----------- ----------- CURRENT ASSETS: Cash and Temporary Cash Investments 1,888 2,305 - 233 4,426 - 4,426 Notes Receivable - Intercompany - - - - - - - Allowance for Uncollectible Accounts (386) (375) - (1) (762) - (762) Accounts Receivable - Intercompany - - - - - - - Accounts Receivable 3,686 1,635 - 117 5,438 - 5,438 Unbilled Utility Revenue 3,645 195 - - 3,840 - 3,840 Materials and Supplies 2,915 99 - - 3,014 - 3,014 Prepayments 16 8 - - 24 - 24 ----------- ------------ ----------- ----------- ----------- ----------- ----------- 11,764 3,867 - 349 15,980 - 15,980 ----------- ------------ ----------- ----------- ----------- ----------- ----------- OTHER ASSETS: Investment in Associated Companies 8,429 - - - 8,429 (8,429) - Other Assets 9,946 (986) - 99 9,059 - 9,059 Notes Receivable - Intercompany - - - - - - - Deferred Charges - - - - - - - ----------- ------------ ----------- ----------- ----------- ----------- ----------- 18,375 (986) - 99 17,488 (8,429) 9,059 ----------- ------------ ----------- ----------- ----------- ----------- ----------- TOTAL ASSETS $ 198,017 $ 13,470 $ - $ 187 $ 211,674 $ (8,429) $ 203,245 =========== ============ =========== =========== =========== =========== =========== CAPITALIZATION & LIABILITIES CAPITALIZATION: Common Stock $ 59,770 $ 17,004 $ - $ 3 $ 76,777 $ (17,007) $ 59,770 Paid - in - Capital 50,804 (5,723) - 883 45,964 4,840 50,804 Earnings Reinvested in the Business 21,619 153 - (527) 21,245 374 21,619 ----------- ------------ ------------ ----------- ----------- ----------- ----------- Total Common Shareholder Equity Before Items of Other Comprehensive Income 132,193 11,434 - 359 143,986 (11,793) 132,193 Accumulated Other Comprehensive Income (19,374) (3,247) - (117) (22,738) 3,364 (19,374) ----------- ------------ ----------- ----------- ----------- ----------- ----------- Total Comprehensive Shareholders' Equity 112,819 8,187 - 242 121,248 (8,429) 112,819 ----------- ------------ ----------- ----------- ----------- ----------- ----------- Long-Term Debt, Net of Current Portion 22,475 - - - 22,475 - 22,475 Notes Payable - Intercompany - - - - - - - ----------- ------------ ----------- ----------- ----------- ----------- ----------- Total Capitalization 135,294 8,187 - 242 143,723 (8,429) 135,294 ----------- ------------ ----------- ----------- ----------- ----------- ----------- Minority Interest in Foreign Subsidiaries 18,378 3,946 - - 22,324 - 22,324 ----------- ------------ ----------- ----------- ----------- ----------- ----------- CURRENT AND ACCRUED LIABILITIES: Notes Payable - Intercompany - - - - - - - Notes Payable to Banks 14,098 - - - 14,098 - 14,098 Current Portion of Long-Term Debt 9,002 - - - 9,002 - 9,002 Accounts Payable 8,092 806 - 65 8,963 13 8,976 Accounts Payable - Intercompany 13 - - - 13 (13) - Other Accruals and Current Liabilities 2,312 564 - 44 2,920 - 2,920 ----------- ------------ ----------- ----------- ----------- ----------- ----------- 33,517 1,370 - 109 34,996 - 34,996 ----------- ------------ ----------- ----------- ----------- ----------- ----------- DEFERRED CREDITS: Accumulated Deferred Income Taxes 10,158 (33) - (164) 9,961 - 9,961 Fair Value of Deriv. Financial Instruments 581 - - - 581 - 581 Other Deferred Credits 89 - - - 89 - 89 ----------- ------------ ----------- ----------- ----------- ----------- ----------- 10,828 (33) - (164) 10,631 - 10,631 ----------- ------------ ----------- ----------- ----------- ----------- ----------- TOTAL CAPITALIZATION & LIABILITIES $ 198,017 $ 13,470 $ - $ 187 $ 211,674 $ (8,429) $ 203,245 =========== ============ =========== =========== =========== =========== =========== See Notes to Consolidated Financial Statements included in Item 8 of National Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2001, incorporated herein by reference. Note: At the end of June 2001, UE sold its 65.78% in JTR. UNITED ENERGY, a.s. CONSOLIDATING STATEMENT OF INCOME FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2001 (THOUSANDS OF DOLLARS) Consolidated Teplarna Total Before Eliminations UE and UE Liberec JTR ENOP Eliminations (Dr) Cr Subsidiaries ----------- ------------ ----------- ----------- ------------ ----------- ------------ OPERATING REVENUE: $ 75,348 $ 16,784 $ 7,280 $ 511 $ 99,923 $ (2,998) $ 96,925 ----------- ------------ ----------- ----------- ----------- ----------- ----------- OPERATING EXPENSE: Fuel Used in Heat and Electric Generation 37,275 11,159 3,998 169 52,601 - 52,601 Operation 15,378 5,056 736 474 21,644 (2,998) 18,646 Maintenance - - - - - - - Property, Franchise & Other Taxes 1,646 288 132 4 2,070 - 2,070 Depreciation, Depletion and Amortization 9,793 847 621 393 11,654 - 11,654 Income Taxes 3,558 (199) 380 (75) 3,664 - 3,664 ----------- ------------ ----------- ----------- ----------- ----------- ----------- 67,650 17,151 5,867 965 91,633 (2,998) 88,635 ----------- ------------ ----------- ----------- ----------- ----------- ----------- Operating Income (Loss) 7,698 (367) 1,413 (454) 8,290 - 8,290 ----------- ------------ ----------- ----------- ----------- ----------- ----------- OTHER INCOME: Unremitted Earnings of Subsidiaries 403 - - - 403 (403) - Other 914 265 27 3 1,209 - 1,209 ----------- ------------ ----------- ----------- ----------- ----------- ----------- 1,317 265 27 3 1,612 (403) 1,209 ----------- ------------ ----------- ----------- ----------- ----------- ----------- Income (Loss) Before Interest Charges and and Minority Interest in Foreign Subsidiaries 9,015 (102) 1,440 (451) 9,902 (403) 9,499 ----------- ------------ ----------- ----------- ----------- ----------- ----------- INTEREST CHARGES: Interest on Long-Term Debt 3,489 - 65 - 3,554 - 3,554 Interest-Intercompany - - - - - - - Other Interest - - - - - - - ----------- ------------ ----------- ----------- ----------- ----------- ----------- 3,489 - 65 - 3,554 - 3,554 ----------- ------------ ----------- ----------- ----------- ----------- ----------- Minority Interest in Foreign Subsidiaries (923) 48 (467) - (1,342) - (1,342) ----------- ------------ ----------- ----------- ----------- ----------- ----------- Net Income (Loss) Available for Common Stock $ 4,603 $ (54) $ 908 $ (451) $ 5,006 $ (403) $ 4,603 =========== ============ =========== =========== =========== =========== =========== See Notes to Consolidated Financial Statements included in Item 8 of National Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2001, incorporated herein by reference. Note: At the end of June 2001, UE sold its 65.78% in JTR. The income statement for JTR represents the period of October 1, 2000 through June 30, 2001. UNITED ENERGY, a.s. CONSOLIDATING STATEMENT OF EARNINGS REINVESTED IN THE BUSINESS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2001 (THOUSANDS OF DOLLARS) Consolidated EARNINGS REINVESTED Teplarna Total Before Eliminations UE and IN THE BUSINESS UE Liberec JTR ENOP Eliminations (Dr) Cr Subsidiaries ----------- ------------ ----------- ----------- ----------- ------------ ------------ Balance at Beginning of Year $ 17,017 $ 207 $ 271 $ (76) $ 17,419 $ (402) $ 17,017 Net Income (Loss) Available for Common Stock 4,603 (54) 908 (451) 5,006 (403) 4,603 Elimination of JTR Earnings Reinvested in Business due to sale in June 2001 - - (1,179) - (1,179) 1,179 - Dividends on Common Stock - - - - - - - ----------- ------------ ----------- ----------- ----------- ----------- ----------- Balance at End of Year $ 21,620 $ 153 $ - $ (527) $ 21,246 $ 374 $ 21,620 =========== ============ =========== =========== =========== =========== =========== See Notes to Consolidated Financial Statements included in Item 8 of National Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2001, incorporated herein by reference. UNITED ENERGY, a.s. CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2001 (THOUSANDS OF DOLLARS) Total Before Consolidated Teplarna Eliminations UE and UE Liberec JTR ENOP & Adjustments Eliminations Subsidiaries ---------- --------- --------- --------- ------------- ------------ ------------ CASH FLOWS FROM OPERATING ACTIVITIES: Net Income (Loss) $ 4,603 $ (54) $ 908 $ (451) $ 5,006 $ (403) $ 4,603 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Unremitted Earnings of Subsidiaries (403) - - - (403) 403 - Depreciation, Depletion & Amortization 9,793 847 621 393 11,654 - 11,654 Deferred Income Taxes 862 (585) 57 (152) 182 - 182 Minority Interest in Foreign Subsidiaries 923 (48) 467 - 1,342 - 1,342 Other 640 (58) (10) 6 578 - 578 Change in: Accounts Receivable - Intercompany 14 - - - 14 (14) - Receivables and Unbilled Utility Revenue (785) (89) 84 297 (493) - (493) Material and Supplies (67) 631 368 - 932 - 932 Prepayments 9 - - - 9 - 9 Accounts Payable (617) 451 (139) 81 (224) (10) (234) Accounts Payable - Intercompany (25) - - - (25) 25 - Other Accruals and Current Liabilities 2,825 494 308 147 3,774 - 3,774 Other Assets (1,217) (30) (240) - (1,487) - (1,487) Other Liabilities 86 - - - 86 - 86 ---------- --------- --------- --------- ---------- ---------- --------- Net Cash Provided by (Used in) Operations 16,641 1,559 2,424 321 20,945 1 20,946 ---------- --------- --------- --------- ---------- ---------- --------- CASH FLOWS FROM INVESTING ACTIVITIES: Capital Expenditures (14,207) (958) (285) (1) (15,451) - (15,451) Change in Notes Receivable - Intercompany - - - - - - - Other 8,650 43 269 - 8,962 (1,579) 7,383 ---------- --------- --------- --------- ---------- ---------- --------- Net Cash Provided by (Used In) Investing Activities (5,557) (915) (16) (1) (6,489) (1,579) (8,068) ---------- --------- --------- --------- ---------- ---------- --------- CASH FLOWS FROM FINANCING ACTIVITIES: Change in Notes Payable to Banks (3,756) - (1,253) - (5,009) - (5,009) Change in Notes Payable - Intercompany - - (593) - (593) 593 - Net Proceeds from Issuance of Long-Term Debt 12,927 - - - 12,927 - 12,927 Repayment of Lease to Subsidiaries - - - (95) (95) 95 - Reduction of Long-Term Debt (20,562) - (162) - (20,724) - (20,724) ---------- --------- --------- --------- ---------- ---------- --------- Net Cash Provided by (Used in) Financing Activities (11,391) - (2,008) (95) (13,494) 688 (12,806) ---------- --------- --------- --------- ---------- ---------- --------- Effect of Exchange Rates on Cash 135 88 (13) (9) 201 - 201 ---------- --------- --------- --------- ---------- ---------- --------- Net Increase (Decrease) in Cash and Temporary Cash Investments (172) 732 387 216 1,163 (890) 273 Cash and Temporary Cash Investments of Beginning of Period 2,060 1,573 502 18 4,153 - 4,153 ---------- --------- --------- --------- ---------- ---------- --------- Cash and Temporary Cash Investments at End of Year $ 1,888 $ 2,305 $ 889 $ 234 $ 5,316 $ (890) $ 4,426 ========== ========= ========= ========= ========== ========== ========= See Notes to Consolidated Financial Statements included in Item 8 of National Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2001, incorporated herein by reference. Note: At the end of June 2001, UE sold its 65.78% in JTR. The statement of cash flows for JTR represents the period of October 1, 2000 through June 30, 2001. UNITED ENERGY, a.s. CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2001 (THOUSANDS OF DOLLARS) Consolidated Teplarna Total Before Eliminations UE and UE Liberec JTR ENOP Eliminations (Dr) Cr Subsidiaries ---------- ----------- ---------- ---------- ------------ ----------- ------------ Net Income (Loss) Available for Common Stock $ 4,603 $ (54) $ 908 $ (451) $ 5,006 $ (403) $ 4,603 ---------- ----------- ---------- ---------- ---------- ----------- ---------- Other Comprehensive Income (Loss) : Foreign Currency Translation Adjustment 7,592 675 1,036 30 9,333 (1,741) 7,592 Unrealized Gain / (Loss) on Derivative Financial Instruments During the Period (139) - - - (139) - (139) Reclassification Adjustment for Realized (Gains)/Losses on Derivative Financial Instruments in Net Income 796 - - - 796 - 796 ---------- ----------- ---------- ---------- ---------- ----------- ---------- Other Comprehensive Income (Loss), Before Tax 8,249 675 1,036 30 9,990 (1,741) 8,249 Income Tax Expense/(Benefit) Related to Unrealized Gain/(Loss) on Derivative Financial Instruments During the Period (43) - - - (43) - (43) Reclassification Adjustment for Income Tax Benefit/(Expense) on Derivative Financial Instruments in Net Income 247 - - - 247 - 247 ---------- ----------- ---------- ---------- ---------- ----------- ---------- Income Taxes - Net 204 - - - 204 - 204 ---------- ----------- ---------- ---------- ---------- ----------- ---------- Other Comprehensive Income (Loss), Before Cumulative Effect, Net of Tax 8,045 675 1,036 30 9,786 (1,741) 8,045 ---------- ----------- ---------- ---------- ---------- ----------- ---------- Cumulative Effect of Change in Accounting (793) - - - (793) - (793) ---------- ----------- ---------- ---------- ---------- ----------- ---------- Other Comprehensive Income (Loss), After Cumulative Effect Net of Tax 7,252 675 1,036 30 8,993 (1,741) 7,252 ---------- ----------- ---------- ---------- ---------- ----------- ---------- Comprehensive Income (Loss) $ 11,855 $ 621 $ 1,944 $ (421) $ 13,999 $ (2,144) $ 11,855 ========== =========== ========== ========== ========== =========== ========== See Notes to Consolidated Financial Statements included in Item 8 of National Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2001, incorporated herein by reference. Note: At the end of June 2001, UE sold its 65.78% in JTR. The statement of comprehensive income for JTR represents the period of October 1, 2000 through June 30, 2001.EXHIBITS
A. *(1) Annual Report on Form 10-K for fiscal year ended September 30, 2001 filed December 17, 2001 (File No. 1-3880). (2) National Fuel Gas Company 2001 Annual Report to Shareholders (paper copy submitted under cover of Form SE). *(3) National Fuel Gas Company Proxy Statement, dated and filed January 10, 2002 (File No. 1-03880). B. Articles of Incorporation, By-Laws and Partnership Agreements. (1) National Fuel Gas Company *i Restated Certificate of Incorporation of National Fuel Gas Company, dated September 21, 1998 (Exhibit 3.1, Form 10-K for fiscal year ended September 30, 1998 in File No. 1-3880). *ii National Fuel Gas Company By-Laws as amended on December 13, 2001 (Exhibit 3.1, Form 10-K/A for fiscal year ended September 30, 2001 in File No. 1-3880) (2) National Fuel Gas Distribution Corporation *i By-Laws, as amended March 11, 1998. (Exhibit (2)i, designated as Exhibit EX-99-1 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1999.) *ii Restated Certificate of Incorporation of National Fuel Gas Distribution Corporation, dated May 9, 1988 (Exhibit B-1 in File No. 70-7478). (3) National Fuel Gas Supply Corporation *i By-Laws, as amended (Exhibit (3)i, Form U5S for fiscal year ended September 30, 1989). *ii Articles of Incorporation of United Natural Gas Company, dated February 1, 1886 (Exhibit (3)ii, Form U5S for fiscal year ended September 30, 1984). *iii Certificate of Merger and Consolidation dated January 2, 1951 (Exhibit (3)iii, Form U5S for fiscal year ended September 30, 1984). *iv Joint Agreement and Plan of Merger, dated June 18, 1974 (Exhibit (3)iv, Form U5S for fiscal year ended September 30, 1987). *v Certificate of Merger and Plan of Merger of Penn-York Energy Corporation and National Fuel Gas Supply Corporation dated April 1, 1994 (Exhibit (3)v, designated as Exhibit EX-99-3 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1994). * Incorporated herein by reference as indicated. EXHIBITS (Continued) (4) Leidy Hub, Inc. (formerly Enerop Corporation) *i By-Laws (Exhibit A-15, File No. 70-7478). *ii Restated Certificate of Incorporation of Enerop Corporation dated October 15, 1993. (Exhibit (4)ii, designated as Exhibit Ex-99-2 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1999). *iii Action by Board of Directors to amend the By-Laws dated October 10, 1993 (Exhibit (4)iii, designated as Exhibit EX-3 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1993). (5) Seneca Resources Corporation *i By-Laws, as amended (Exhibit (5)i, Form U5S for fiscal year ended September 30, 1989). *ii Articles of Incorporation of Mars Natural Gas Company dated March 29, 1913 (Exhibit (5)ii, Form U5S for fiscal year ended September 30, 1984). *iii Secretary's Certificate dated January 4, 1918 (Exhibit (5)iii, Form U5S for fiscal year ended September 30, 1984). *iv Articles of Amendment, dated March 30, 1955 (Exhibit (5)iv, Form U5S for fiscal year ended September 30, 1984). *v Certificate of Amendment changing name of the Mars Company to Seneca Resources Corporation, January 29, 1976 (Exhibit (5)v, Form U5S for fiscal year ended September 30, 1984). *vi Certificate of Merger and Plan of Merger of Seneca Resources Corporation and Empire Exploration, Inc. dated April 29, 1994 (Exhibit (5)vi, designated as Exhibit EX-99-2 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1994). *vii Articles of Merger and Plan of Merger of HarCor Energy, Inc. with and into Seneca Resources Corporation, filed August 31, 1999. (Exhibit (5)vii, designated as Exhibit EX-99-3 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1999.) *viii Certificate of Ownership and Merger merging HarCor Energy, Inc. into Seneca Resources Corporation filed August 31, 1999. (Exhibit (5)viii, designated as Exhibit EX-99-4 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1999.) * Incorporated herein by reference as indicated.* Incorporated herein by reference as indicated.EXHIBITS (Continued) (6) Empire Exploration Company i Certificate of Limited Partnership, dated November 28, 1983. Designated as Exhibit ex99-1 for EDGAR purposes. *ii Limited Partnership Agreement, dated November 28, 1983, between Empire Exploration, Inc. (now Seneca Resources Corporation) as general partner and Herman P. Loonsk as limited partner (Exhibit (8), Form U5S for fiscal year ended September 30, 1984). (7) Empire 1983 Drilling Program i Certificate of Limited Partnership, dated November 28, 1983. Designated as Exhibit ex99-2 for EDGAR purposes. ii Amendment of Certificate of Limited Partnership, dated December 21, 1983. Designated as Exhibit ex99-3 for EDGAR purposes. *iii Limited Partnership Agreement, dated November 28, 1983, among Empire Exploration, Inc. (now Seneca Resources Corporation) as general partner and those parties collectively called limited partners (Exhibit (9), Form U5S for fiscal year ended September 30, 1984). (8) Empire 1983 Joint Venture i Business Certificate for Partners, dated December 6, 1983. Designated as Exhibit ex99-4 for EDGAR purposes. *ii Joint Venture Agreement, dated December 6, 1983, between Empire Exploration, Inc. (now Seneca Resources Corporation) and Empire 1983 Drilling Program (Exhibit (10), Form U5S for fiscal year ended September 30, 1984). (9) Highland Forest Resources, Inc. (formerly Highland Land & Minerals, Inc.) *i Certificate of Incorporation, dated August 19, 1982 (Exhibit (11)i, Form U5S for fiscal year ended September 30, 1985). *ii By-Laws (Exhibit (11) ii, Form U5S for fiscal year ended September 30, 1987). *iii Articles of Merger and Plan of Merger of Utility Constructors, Inc. into Highland Land & Minerals, Inc. filed October 1, 1999. (Exhibit (9)iii, designated as Exhibit EX-99-5 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1999.) * Incorporated herein by reference as indicated. EXHIBITS (Continued) *iv Articles of Amendment of the Articles of the Corporation, dated June 8, 2000. (Exhibit (9)iv, designated as Exhibit EX-99-2 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2000.) (10) Data-Track Account Services, Inc. *i Restated Articles of Incorporation, dated March 2, 1984 (Exhibit A-1, File No. 70-7512). *ii By-Laws (Exhibit A-2, File No. 70-7512). (11) National Fuel Resources, Inc. *i Articles of Incorporation, dated January 9, 1991 (Exhibit (14)i, designated as Exhibit EX-3(a) for EDGAR purposes, Form U5S for fiscal year ended September 30, 1992). *ii By-Laws (Exhibit (14)ii, designated as Exhibit EX-3(b) for EDGAR purposes, Form U5S for fiscal year ended September 30, 1992). (12) Horizon Power, Inc. (formerly NFR Power, Inc.) *i Certificate of Incorporation, dated December 13, 1995. (Exhibit (13)i, designated as Exhibit EX-3-1 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1999.) *ii By-Laws. (Exhibit (13)ii, designated as Exhibit EX-3-2 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1999.) iii Certificate of Amendment of the Certificate of Incorporation of NFR Power, Inc., dated June 20, 2001. Designated as Exhibit ex99-5 for EDGAR purposes. (13) Seneca Energy II, LLC i Articles of Organization, dated February 23, 2000. Designated as Exhibit ex99-6 for EDGAR purposes. ii Amended and Restated Operating Agreement, dated March 1, 2000 (Confidential Treatment Requested) (14) Model City Energy, LLC i Articles of Organization, dated February 11, 2000. Designated as Exhibit ex99-7 for EDGAR purposes. ii Operating Agreement, dated March 1, 2000 (Confidential Treatment Requested) * Incorporated herein by reference as indicated. EXHIBITS (Continued) (15) Energy Systems North East, LLC i Certificate of Formation, dated September 26, 2000. Designated as Exhibit ex99-8 for EDGAR purposes. ii Limited Liability Company Agreement, dated September 26, 2000 (Confidential Treatment Requested). (16) Horizon Energy Development, Inc. *i Certificate of Incorporation (Exhibit (13)i, designated as Exhibit EX-3(a) for EDGAR purposes, Form U5S for fiscal year ended September 30, 1995). *ii By-Laws (Exhibit (13)ii, designated as Exhibit EX-3(b) for EDGAR purposes, Form U5S for fiscal year ended September 30, 1995). (17) Horizon Energy Holdings, Inc. *i Certificate of Incorporation, dated April 1, 1998. (Exhibit (14)i designated as Exhibit EX99-1 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1998). *ii By-Laws. (Exhibit (14)ii, designated as Exhibit EX99-2 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1998). (18) Horizon Energy Development B.V. (formerly Beheeren-Beleggingmaatschappij Bruwabel B.V.) *i Articles of Incorporation (Exhibit (14), designated as Exhibit EX-99-2 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1996). ii Notarial Record, dated December 4, 2001. Designated as Exhibit ex99-9 for EDGAR purposes. (19) Horizon Energy Development, s.r.o. (formerly Power International, s.r.o.) *i Founding Notarial Deed, dated May 8, 1991 (Exhibit (15)i, designated as Exhibit EX-99-9 for EDGAR purposes, Form U5S/A for fiscal year ended September 30, 1996). *ii Notarial Deed, dated December 2, 1993 (Exhibit (15)ii, designated as Exhibit EX-99-10 for EDGAR purposes, Form U5S/A for fiscal year ended September 30, 1996). *iii Notarial Deed, dated June 28, 1996 (Exhibit (15)iii, designated as Exhibit EX-99-11 for EDGAR purposes, Form U5S/A for fiscal year ended September 30, 1996). *iv Notarial Deed, dated November 27, 1996 (Exhibit (15)iv, designated as Exhibit EX-99-12 for EDGAR purposes, Form U5S/A for fiscal year ended September 30, 1996). * Incorporated herein by reference as indicated EXHIBITS (Continued) (20) Power Development, s.r.o. *i Founding Notarial Deed, dated May 4, 1994 (Exhibit (16)i, designated as Exhibit EX-99-13 for EDGAR purposes, Form U5S/A for fiscal year ended September 30, 1996). *ii Notarial Deed, dated June 28, 1996 (Exhibit (16)ii, designated as Exhibit EX-99-14 for EDGAR purposes, Form U5S/A for fiscal year ended September 30, 1996). *iii Notarial Deed, dated November 27, 1996 (Exhibit (16)iii, designated as Exhibit EX-99-15 for EDGAR purposes, Form U5S/A for fiscal year ended September 30, 1996). (21) Teplarna Kromeriz, a.s. *i Statutes, dated June 1996 (Exhibit (17), designated as Exhibit EX-99-16 for EDGAR purposes, Form U5S/A for fiscal year ended September 30, 1996). ii Articles of Association, dated June 27, 2001. Designated as Exhibit ex99-10 for EDGAR purposes. (22) Teplarna Liberec, a.s. *i Founding Contract, dated November 11, 1994 (Exhibit (21)i, designated as Exhibit EX99-12 for EDGAR purposes, Form U5S/A for fiscal year ended September 30, 1997). *ii Notarial Record, dated November 11, 1994 (Exhibit (21)ii, designated as Exhibit EX99-13 for EDGAR purposes, Form U5S/A for fiscal year ended September 30, 1997). iii Articles of Association, dated June 21, 2001. Designated as Exhibit ex99-11 for EDGAR purposes. (23) Teplo Branany, s.r.o. *i Partnership Agreement, dated November 18, 1997. (Exhibit (28)i, designated as Exhibit 99-4 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1998). (24) Jablonecka teplarenska a realitni, a.s. *i Articles of Association. (Exhibit (29)i, designated as Exhibit EX99-5 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1998). Note: Jablonecka teplarenska a realitni, a.s. was sold by United Energy, a.s. during the fiscal year ended September 30, 2001. * Incorporated herein by reference as indicated. EXHIBITS (Continued) (25) Lounske tepelne hospodarstvi, s.r.o. *i Notarial Records, dated November 12, 1998, January 6, 1999 and December 2, 1999. Designated as Exhibit EX-99-6 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1999. (26) ENOP, s.r.o. *i Founders Deed, dated December 19, 1995. (Exhibit (31)i, designated as Exhibit EX99-8 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1998). (27) United Energy, a.s. *i Notarial Record from Prvni severozapadni teplarenska, a.s., dated September 28, 1998. (Exhibit (28) i, designated as Exhibit EX-99-3 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2000.) *ii Notarial Record from Severoceske Teplarny, a.s. dated September 28, 1998. (Exhibit (28) ii, designated as Exhibit EX-99-4 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2000.) *iii Court Resolution, dated December 9, 1999. (Exhibit (28) iii, designated as Exhibit EX-99-5 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2000.) *iv Court Resolution, dated July 17, 2000. (Exhibit (28) iv, designated as Exhibit EX-99-6 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2000.) v Articles of Association, dated April 28, 1992, as amended on June 28, 2001. Designated as Exhibit ex99-12 for EDGAR purposes. (28) Upstate Energy Inc. (formerly Niagara Energy Trading Inc.) *i Restated Certificate of Incorporation of Niagara Energy Trading Inc., dated May 19, 1998. (Exhibit (32)i, designated as Exhibit EX99-9 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1998). *ii By-Laws as amended August 24, 1999. (Exhibit (32)ii, designated as Exhibit EX-99-7 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1999.) * Incorporated herein by reference as indicated. EXHIBITS (Continued) (29) Roystone Gas Processing Plant Partnership *i Facility Construction, Ownership and Operating Agreement, dated November 1, 1994. (Exhibit (33)i, designated as Exhibit EX-99-8 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1999.) *ii Ratification and Joinder of Roystone Gas Processing Plant Facility Construction, Ownership and Operating Agreement and Related Agreements, dated September 30, 1999. (Exhibit (33)ii, designated as Exhibit EX-99-9 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1999.) (30) Niagara Independence Marketing Company *i Certificate of Incorporation, dated September 17, 1997 (Exhibit (27)i, designated as Exhibit EX99-3 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1997). *ii By-Laws amended March 11, 1998. (Exhibit (33)ii, designated at Exhibit EX99-11 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1998). *iii Marketing Partnership Agreement among Coastal Gas Marketing DirectLink Corp., MGS Marketing Corp., Niagara Independence Marketing Company and Williams Independence Marketing Company (Exhibit (27)iii, designated as Exhibit EX-99-5 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1997). (31) Seneca Independence Pipeline Company *i Certificate of Incorporation of Empire Oklahoma, Inc., dated April 16, 1996 (Exhibit (28)i, designated as Exhibit EX-99-6 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1997). *ii Certificate of Amendment of Certificate of Incorporation of Empire Oklahoma, Inc., dated July 24, 1997 (Exhibit (28)ii, designated as Exhibit EX-99-7 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1997). *iii By-Laws amended September 20, 1999. (Exhibit (35)iii, designated as Exhibit EX-99-10 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1999.) (32) National Fuel Exploration Corp. *i Certificate of Amalgamation and Articles of Amalgamation, dated June 16, 2000. (Exhibit (33)i, designated as Exhibit EX-99-7 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2000.) *ii By-Laws No. 1, dated April 28, 2000. (Exhibit (33)ii, designated as Exhibit EX-99-8 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2000.) * Incorporated herein by reference as indicated. EXHIBITS (Continued) (33) Player Resources Ltd. i Certificate of Amalgamation and Articles of Amalgamation, dated September 28, 2001. Designated as Exhibit ex99-13 for EDGAR purposes. ii By-laws No. 1, dated January 28, 1998. Designated as Exhibit ex99-14 for EDGAR purposes. C. Indentures * Indenture dated as of October 15, 1974, between the Company and The Bank of New York (formerly Irving Trust Company) (Exhibit 2(b) in File No. 2-51796). * Third Supplemental Indenture dated as of December 1, 1982, to Indenture dated as of October 15, 1974, between the Company and The Bank of New York (formerly Irving Trust Company) (Exhibit 4(a)(4) in File No. 33-49401). * Tenth Supplemental Indenture dated as of February 1, 1992, to Indenture dated as of October 15, 1974, between the Company and The Bank of New York (formerly Irving Trust Company) (Exhibit 4(a), Form 8-K dated February 14, 1992 in File No. 1-3880). * Eleventh Supplemental Indenture dated as of May 1, 1992, to Indenture dated as of October 15, 1974, between the Company and The Bank of New York (formerly Irving Trust Company) (Exhibit 4(b), Form 8-K dated February 14, 1992 in File No. 1-3880). * Twelfth Supplemental Indenture dated as of June 1, 1992, to Indenture dated as of October 15, 1974, between the Company and The Bank of New York (formerly Irving Trust Company) (Exhibit 4(c), Form 8-K dated June 18, 1992 in File No. 1-3880). * Thirteenth Supplemental Indenture dated as of March 1, 1993, to Indenture dated as of October 15, 1974, between the Company and The Bank of New York (formerly Irving Trust Company) (Exhibit 4(a)(14) in File No. 33-49401). * Fourteenth Supplemental Indenture dated as of July 1, 1993, to Indenture dated as of October 15, 1974, between the Company and The Bank of New York (formerly Irving Trust Company) (Exhibit 4.1, Form 10-K for fiscal year ended September 30, 1993 in File No. 1-3880). * Fifteenth Supplemental Indenture dated as of September 1, 1996 to Indenture dated as of October 15, 1974, between the Company and The Bank of New York (formerly Irving Trust Company) (Exhibit 4.1, Form 10-K for fiscal year ended September 30, 1996 in File No. 1-3880). * Indenture dated as of October 1, 1999 between the Company and the Bank of New York (Exhibit 4.1, Form 10-K for the fiscal year ended September 30, 1999 in File No. 1-3880). * Incorporated herein by reference as indicated. EXHIBITS (Continued) * Officers Certificate Establishing Medium-Term Notes dated October 14, 1999 (Exhibit 4.2, Form 10-K for the fiscal year ended September 30, 1999 in File No. 1-3880). * Amended and Restated Rights Agreement dated as of April 30, 1999 between National Fuel Gas Company and HSBC Bank USA (Exhibit 10.2, Form 10-Q for the quarterly period ended March 31, 1999 in File No. 1-3880). D. Tax Allocation Agreement pursuant to Rule 45(c). Designated as Exhibit ex99-15 for EDGAR purposes. E. *(1) Employee Relocation Manual filed pursuant to Rule 48(b) (Exhibit E(1), designated as Exhibit EX-99-9 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1997). *(2) National Fuel Employee Computer Purchase Program filed pursuant to Rule 48(b). (Exhibit E(2), designated as Exhibit EX99-15 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1998). (3) Independence Pipeline Company Unaudited Financial Statements for the quarter and year-to-date period ended December 31, 2000 and the quarter and year-to-date period ended September 30, 2001 filed pursuant toRule 16. These documents are subject to a request for confidential treatment under Rule 104(b). F. Schedules supporting items of this Report - None. G. (1) Organization chart showing relationship to Teplarna Kromeriz, a.s., a foreign utility company. Designated as Exhibit ex99-16 for EDGAR purposes. (2) Organization chart showing relationship to United Energy, a.s., a foreign utility company, and Teplarna Liberec, a.s., a foreign utility company. Designated as Exhibit ex99-17 for EDGAR purposes. (3) Organization chart showing relationship to Horizon Power, Inc., an exempt wholesale generator, and Energy Systems North East, LLC, an exempt wholesale generator. Designated as Exhibit ex99-18 for EDGAR purposes. H. (1) United Energy, a.s. Audited Financial Statements for the Calendar Year Ended December 31, 2000. Designated as Exhibit ex99-19 for EDGAR purposes. (2) Teplarna Liberec, a.s. Audited Financial Statements for the Calendar Year Ended December 31, 2000. Designated as Exhibit ex99-20 for EDGAR purposes. (3) Teplarna Kromeriz, a.s. Audited Financial Statements for the Calendar Year Ended December 31, 2000. Designated as Exhibit ex99-21 for EDGAR purposes. * Incorporated herein by reference as indicated. EXHIBITS (Concluded) (4) Horizon Power, Inc. Audited Financial Statements for the Fiscal Year Ended September 30, 2001. These financial statements will be filed by amendment when available. (5) Energy Systems North East, LLC Unaudited Financial Statements for the Fiscal Year Ended September 30, 2001. These financial statements will be filed by amendment when available.
S I G N A T U R E
The undersigned System company has duly caused this annual report to be signed on its behalf by the undersigned thereunto duly authorized pursuant to the requirements of the Public Utility Holding Company Act of 1935.
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NATIONAL FUEL GAS COMPANY |
EXHIBIT INDEX
ex99-1 Certificate of Limited Partnership, dated November 28, 1983, of Empire Exploration Company ex99-2 Certificate of Limited Partnership, dated November 28, 1983, of Empire 1983 Drilling Program ex99-3 Amendment of Certificate of Limited Partnership, dated December 21, 1983, of Empire 1983 Drilling Program ex99-4 Business Certificate for Partners, dated December 6, 1983, of Empire 1983 Joint Venture ex99-5 Certificate of Amendment of the Certificate of Incorporation, dated June 20, 2001, of Horizon Power, Inc. ex99-6 Articles of Organization, dated February 23, 2000, of Seneca Energy II, LLC ex99-7 Articles of Organization, dated February 11, 2000, of Model City Energy, LLC ex99-8 Certificate of Formation, dated September 26, 2000, of Energy Systems North East, LLC ex99-9 Notarial Record, dated December 4, 2001, of Horizon Energy Development B.V. ex99-10 Articles of Association, dated June 27, 2001, of Teplarna Kromeriz, a.s. ex99-11 Articles of Association, dated June 21, 2001, of Teplarna Liberec, a.s. ex99-12 Articles of Association, dated April 28, 1992, of United Energy, a.s. ex99-13 Certificate of Amalgamation and Articles of Amalgamation,dated September 28, 2001, of Player Resources Ltd. ex99-14 By-Laws No. 1, dated January 28, 1998, of Player Resources Ltd. ex99-15 Tax Allocation Agreement pursuant to Rule 45(c) ex99-16 Organization Chart Showing Relationship to Teplarna Kromeriz, a.s. ex99-17 Organization Chart Showing Relationship to United Energy, a.s. ex99-18 Organization Chart Showing Relationship to Horizon Power, Inc. ex99-19 United Energy, a.s. Audited Financial Statements for the Calendar Year Ended December 31, 2000 ex99-20 Teplarna Llberec, a.s. Audited Financial Statements for the Calendar Year Ended December 31, 2000 ex99-21 Teplarna Kromeriz, a.s. Audited Financial Statements for the Calendar Year Ended December 31, 2000