Washington, D.C.
For the Fiscal Year Ended September 30, 2004
Filed Pursuant to the
Public Utility Holding Company Act of 1935
by
6363 Main Street, Williamsville, N.Y. 14221
NATIONAL FUEL GAS COMPANY
FORM U5S - ANNUAL REPORT
For the Fiscal Year Ended September 30, 2004
TABLE OF CONTENTS
Page ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF SEPTEMBER 30, 2004 3 ITEM 2. ACQUISITIONS OR SALES OF UTILITY ASSETS 9 ITEM 3. ISSUE, SALE, PLEDGE, GUARANTEE OR ASSUMPTION OF SYSTEM SECURITIES 9 ITEM 4. ACQUISITION, REDEMPTION OR RETIREMENT OF SYSTEM SECURITIES 10 ITEM 5. INVESTMENTS IN SECURITIES OF NONSYSTEM COMPANIES 11 ITEM 6. OFFICERS AND DIRECTORS Part I. Names, principal business address and positions held as of September 30, 2004 12 Part II. Financial connections as of September 30, 2004 17 Part III. Compensation and other related information 17 ITEM 7. CONTRIBUTIONS AND PUBLIC RELATIONS 22 ITEM 8. SERVICE, SALES AND CONSTRUCTION CONTRACTS Part I. Intercompany sales and services (1) Salaries of officers of the Registrant 23 (2) Services rendered by Statutory Subsidiaries 24 (3) Services rendered by Registrant 37 Part II. Contracts to purchase services or goods between any System company and any affiliate 38 Part III. Employment of any person by any System company for the performance on a continuing basis of management services 38 ITEM 9. WHOLESALE GENERATORS AND FOREIGN UTILITY COMPANIES 38 ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS Financial Statements (Index) 41 Exhibits 114 SIGNATURE 129
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% $558,630 $558,630 Unsecured Debt (Note 9) - - $363,410 $363,410 National Fuel Gas Supply Corporation (Supply Corporation) (Note 2) 1,013,802 100% $336,514 $336,514 Unsecured Debt (Note 9) - - $ 72,970 $ 72,970 Seneca Resources Corporation (Seneca Resources) (Note 3) 100,000 100% $ 87,137 $ 87,137 Unsecured Debt (Note 9) - - $688,422 $688,422 3062782 Nova Scotia Co. (NSULC1) (Note 3) 165,350,317 100% $(41,042) $(41,042) Unsecured Debt (Note 9) - - $144,907 $144,907 Seneca Energy Canada Inc. (Note 3) 10,597,289 100% $108,741 $108,741 Seneca Player Corp. (Note 3) 1 100% $ 3,113 $ 3,113 3062783 Nova Scotia Co. (NSULC2) (Note 3) 2,124,467 100% $ (226) $ (226) Unsecured Debt (Note 9) - - $ 1,890 $ 1,890 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) 351 100% $120,393 $120,393 Unsecured Debt (Note 9) - - $ 71,600 $ 71,600 Empire State Pipeline Company, LLC (Empire LLC) (Note 4) N/A 100% $137,618 $137,618 Empire State Pipeline (Empire) (Note 4) N/A 50% $ 42,414 $ 42,414 St. Clair Pipeline Company, LLC (St. Clair LLC) (Note 4) N/A 100% $ 42,666 $ 42,666 Empire State Pipeline (Empire) (Note 4) N/A 50% $ 42,413 $ 42,413 Secured Debt - - $ 41,433 $ 41,433 Data-Track Account Services, Inc. (Data-Track) (Note 5) 1,000 100% $ 763 $ 763 Leidy Hub, Inc. (Leidy Hub) (Note 6) 4,000 100% $ 48 $ 48 National Fuel Resources, Inc. (NFR) (Note 7) 10,000 100% $ 42,799 $ 42,799 Horizon Energy Development, Inc. (Horizon) (Notes 8 and 11) 4,750 100% $ 56,835 $ 56,835 Unsecured Debt (Note 9) - - $124,470 $124,470 Horizon Energy Holdings, Inc. (HEHI) (Note 11) 2,000 100% $184,582 $184,582
Number of Common Percent of Issuer Owner's Name of Company Shares Owned Voting Power Book Value Book Value --------------- ---------------- ------------ ---------- ---------- Registrant: (Thousands of Dollars) Horizon Energy Development B.V. (HED B.V.) (Note 11) 400 100% $185,042 $185,042 Horizon Energy Bulgaria Ltd. (HEB Ltd.) (Note 11) N/A 100% $(369) $(369) Sofia Energy EAD (SE AD) (Note 11) N/A 100% $(412) $(412) United Energy, a.s. (UE) (Note 11) 8,475,419 85.16% $183,614 $183,614 Unsecured Debt (Note 9) - - $ 9,854 $ 9,854 Teplarna Liberec, a.s. (TL) (Note 11) 70 70% $ 11,805 $ 11,805 Lounske tepelne Hospodarstvi, s.r.o (LTH) (Note 11) N/A 100% $ 78 $ 78 ENOP Company, s.r.o. (ENOP)(Note 11) N/A 100% $ 394 $ 394 Horizon Energy Development, s.r.o. (HED) (Note 11) N/A 100% $ 1,442 $ 1,442 Montenero Energia s.r.l. (ME) (Note 11) N/A 50% (Note 11) (Note 11) Horizon LFG Inc. (Horizon LFG) (Note 12) 1,000 100% $ (1,272) $ (1,272) Unsecured Debt (Note 9) - - $ 43,500 $ 43,500 Toro Partners, LLC (Toro LLC) (Note 12) N/A 100% $ (282) $ (282) Unsecured Debt (Note 9) - - $ 43,000 $ 43,000 Toro Partners, LP (Toro LP) (Note 12) N/A 100% $ 42,980 $ 42,980 Toro Energy of Michigan, LLC N/A 100% $ 4,448 $ 4,448 Toro Energy of Ohio-Statewide, LLC N/A 100% $ 45 $ 45 Toro Energy of Ohio, LLC N/A 100% $ 7,341 $ 7,341 Toro Energy of Kentucky, LLC N/A 100% $ 4,003 $ 4,003 Toro Energy of Missouri, LLC N/A 100% $ 6,373 $ 6,373 Toro Energy of Maryland, LLC N/A 100% $ 4,243 $ 4,243 Toro Energy of Indiana, LLC N/A 100% $ 5,582 $ 5,582 Toro Energy of Ohio-American, LLC N/A 100% $ 15,553 $ 15,553 Horizon Power, Inc. (Power) (Note 13) 500 100% $ 4,596 $ 4,596 Unsecured Debt (Note 9) - - $ 17,200 $ 17,200 Seneca Energy II, LLC (Seneca Energy) N/A 50% (Note 13) (Note 13) Model City Energy, LLC (Model City) N/A 50% (Note 13) (Note 13)
Number of Common Percent of Issuer Owner's Name of Company Shares Owned Voting Power Book Value Book Value --------------- ---------------- ------------ ---------- ---------- Registrant: (Thousands of Dollars) Energy Systems North East, LLC (ESNE) N/A 50% (Note 13) (Note 13)Notes:
(1) Distribution Corporation is a public utility that sells natural gas and provides gas transportation service in western New York and northwestern Pennsylvania. (2) Supply Corporation is engaged in the transportation and storage of natural gas for affiliated and nonaffiliated companies. (3) Seneca Resources is engaged in the exploration for, and the development and purchase of, natural gas and oil reserves in California, in the Appalachian region of the United States, and in the Gulf Coast region of Texas, Louisiana, and Alabama. Also, exploration and production operations are conducted in the provinces of Alberta, Saskatchewan and British Columbia in Canada by Seneca's wholly-owned subsidiary, Seneca Energy Canada, Inc. (SECI), an Alberta, Canada corporation, formerly Player Resources Ltd. (Player). Seneca Resources owns 100% of the common stock of 3062782 Nova Scotia Co. (NSULC1), a Nova Scotia unlimited liability company, which in turn owns 100% of the common stock of SECI. Other sub-entities owned directly or indirectly by Seneca Resources include 3062783 Nova Scotia Co. (NSULC2), a Nova Scotia unlimited liability company, and Seneca Player Corp. (SPC), a U.S. corporation. Seneca Resources also owns interests in two gas processing plants, one at Roystone, Pennsylvania and the other at Kane, Pennsylvania, and two tax partnerships, Vermillion 252 and Vermillion Block 253 Tax Partnership. Seneca Resources is also a general partner of the following limited partnerships engaged in exploration and production activities: Kidder Energy Joint Venture 1990-A, L.P., Kidder Energy Joint Venture 1990-B, L.P., Kidder Energy Joint Venture 1991-A, L.P., and Kidder Busti Energy Joint Venture L.P. SECI owns Briar Resource Projects Ltd., an Alberta, Canada corporation that is general partner of, and owns a 55.5% interest in, Briar Oil & Gas Limited Partnership (Briar LP), an Alberta, Canada limited partnership engaged in exploration and production activities. SECI also owns Carbonex Oil & Gas Ltd., an Alberta, Canada corporation that is general partner of, and owns a 41.1% interest in, Carbon Resources Limited Partnership (Carbon LP), also an Alberta, Canada limited partnership engaged in exploration and production activities. The limited partners of Briar LP and Carbon LP are not subsidiaries of the Registrant. (4) Highland operates several sawmills and kilns in northwestern Pennsylvania and processes timber from north-central Pennsylvania, primarily high quality hardwoods. Highland also owns 100% of Empire State Pipeline, LLC (Empire LLC) and 100% of St. Clair Pipeline LLC (St. Clair LLC). Each of these companies has 50% ownership of Empire State Pipeline (Empire), which is a joint venture. Empire owns a 157-mile pipeline that extends from the United States/Canadian border at the Niagara River near Buffalo, New York to near Syracuse, New York. The Registrant owns 100% of the voting stock of Highland, and has a 35% ownership interest in Highland. Seneca Resources has a 65% non-voting ownership interest in Highland. The book value of Seneca Resources investment in Highland is $19,035,000.
(5) Data-Track provides collection services (principally issuing collection notices) primarily for the subsidiaries of the Company. (6) Leidy Hub is a New York corporation formed to provide various natural gas hub services to customers in the eastern United States. (7) NFR markets natural gas to industrial, commercial, public authority and residential end-users in western and central New York and northwestern Pennsylvania, offering competitively priced energy and energy management services for its customers. (8) Horizon was formed to engage in foreign and domestic energy projects through investment in various business entities (see Notes 11-12). (9) Unsecured debt is presented on pages 7-8. (10) In December 1983, Empire Exploration, Inc. (which was subsequently merged into Seneca Resources) established a drilling fund through a series of limited partnerships in which it acts as general partner (See File No. 70-6909). Empire Exploration, Inc.'s aggregate investment in all three limited partnerships amounted to $970,150. (11) Horizon owns 100% of the capital stock of HEHI, a New York corporation which owns 100% of HED B.V. HED B.V. in turn owns 100% of the ownership interests of HED (a Czech limited liability company). HED B.V. owns 85.16% of United Energy, a.s. (UE). UE owns 100% of the ownership interests of ENOP and LTH and 70% of the ownership interest of TL. All UE subsidiaries are Czech corporations or limited liability companies. HED B.V. and its subsidiaries are primarily engaged in district heating and power generation operations in the Czech Republic. In August 2002, HED B.V. formed Horizon Energy Bulgaria Ltd., a Bulgarian limited liability company, which in turn formed Sofia Energy, EAD, a Bulgarian joint stock company, in July 2003. Sofia Energy EAD is pursuing a power generation project in and around the city of Sofia, Bulgaria. In November 2002, HED B.V. formed Montenero Energia s.r.l., an Italian limited liability company, which is pursuing a power generation project in Italy near the town of Montenero di Bisaccia. (12) Horizon LFG (Formerly Upstate Energy, Inc.) is a New York corporation engaged, through subsidiaries, in the purchase, sale and transportation of landfill gas in Ohio, Michigan, Kentucky, Missouri, Maryland and Indiana. Horizon LFG and Toro Partners, LLC (Toro LLC), a wholly-owned subsidiary of Horizon LFG, own all of the partnership interests in Toro Partners, LP (Toro LP), a limited partnership which owns and operates eight short-distance landfill gas pipeline companies. Horizon LFG is the general partner of Toro LP and owns a 1% general partnership interest in Toro LP; Toro LLC is the limited partner and owns a 99% limited partnership interest in Toro LP.
(13) Power is a New York corporation designated as an "exempt wholesale generator" under the Public Utility Holding Company Act of 1935 and is developing or operating, through its subsidiaries, mid-range independent power production facilities. Power owns a 50% limited liability company interest in each of Seneca Energy II, LLC, a New York limited liability company formed in February 2000 (Seneca Energy), Model City Energy, LLC, a New York limited liability company formed in February 2000 (Model City), and Energy Systems North East, LLC, a Delaware limited liability company formed in September 2000 (ESNE). "Issuer Book Value" and "Owner's Book Value" for Seneca Energy, Model City and ESNE are filed pursuant to Rule 104(b). Note (9) Unsecured Debt 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: 5.35% Due March 1, 2013 90,000 90,000 90,000 6.79% Due September 15, 2022 29,310 29,310 29,310 7.46% Due March 30, 2023 49,000 49,000 49,000 7.50% Due June 13, 2025 50,000 50,000 50,000 1.852% System Money Pool(1) 145,100 145,100 145,100 ------- ------- ------- 363,410 363,410 363,410 ------- ------- ------- Supply Corporation Intercompany Notes: 5.35% Due March 1, 2013 30,000 30,000 30,000 6.79% Due September 15, 2022 9,770 9,770 9,770 1.85% System Money Pool (1) 33,200 33,200 33,200 ------ ------ ------ 72,970 72,970 72,970 ------ ------ ------
Seneca Resources Intercompany Notes: 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 6.82% Due November 21, 2011 120,000 120,000 120,000 5.35% Due March 1, 2013 100,000 100,000 100,000 6.79% Due September 15, 2022 48,422 48,422 48,422 ------- ------- ------- 688,422 688,422 688,422 ------- ------- ------- NSULC1 0.00% Revolving Demand Loan 144,907 144,907 144,907 NSULC2 0.00% Revolving Demand Loan 1,890 1,890 1,890 ------- ------- ------- 146,797 146,797 146,797 ------- ------- ------- Highland 6.82% Due November 21, 2011 30,000 30,000 30,000 5.35% Due March 1, 2013 30,000 30,000 30,000 1.85% System Money Pool(1) 11,600 11,600 11,600 ------ ------ ------ 71,600 71,600 71,600 ------ ------ ------ Horizon Intercompany Notes: 6.39% Due May 27, 2008 80,000 80,000 80,000 6.79% Due September 15, 2022 9,770 9,770 9,770 1.76% Line of credit(2) 34,700 34,700 34,700 ------- ------- ------- 124,470 124,470 124,470 ------- ------- ------- UE 6.35% Payable Quarterly Through September 2006 9,854 9,854 9,854 ------- ------- ------- Horizon LFG 1.85% System Money Pool(1) 43,500 43,500 43,500 ------- ------- ------- Toro Partners, LLC 1.85% Line of Credit 43,000 43,000 43,000 ------- ------- ------- Horizon Power Inc. 1.84% Line of Credit(2) 17,200 17,200 17,200 ---------- ---------- ---------- $1,581,223 $1,581,223 $1,581,223 ========== ========== ========== (1) Interest rate represents weighted average of all short-term securities outstanding at September 30, 2004, pursuant to System money pool arrangement, S.E.C. File No. 70-10074, (Release No. 35-27600). (2) Interest rate represents the rate paid by respective subsidiaries on line of credit amounts outstanding at September 30, 2004.
ITEM 2. ACQUISITIONS OR SALES OF UTILITY ASSETS
None during fiscal year ended September 30, 2004.
ITEM 3. ISSUE, SALE, PLEDGE, GUARANTEE OR ASSUMPTION OF SYSTEM SECURITIES
1. Name of Issuer: Horizon Energy Development, Inc. Description of Security: Line of Credit Agreement with maximum draw of $40,000,000 Effective Average Interest Rate: 1.30% Name of Person to Whom Issued: National Fuel Gas Company End of Year Balance: $34,700,000 Highest Balance During Year: $36,400,000 Exemption: Rule 52 2. Name of Issuer: Horizon Energy Bulgaria Ltd. Description of Security: Line of Credit Agreement with maximum draw of $35,000,000 Effective Average Interest Rate: 3.29% Name of Person to Whom Issued: Horizon Energy Development B.V. End of Year Balance: $399,224 Highest Balance During Year: $399,224 Exemption: Rule 52 3. Name of Issuer: Horizon Energy Bulgaria Ltd. Description of Security: Line of Credit Agreement with maximum draw of CZK 30,000,000 Effective Average Interest Rate: 1.65% Name of Person to Whom Issued: Horizon Energy Development, s.r.o. End of Year Balance: CZK 1,991,182 ($78,480) at September 30, 2004 USD/CZK exchange rate of 25.3720 Highest Balance During Year: CZK 1,991,182 Exemption: Rule 52 4. Name of Issuer: Horizon Power, Inc. Description of Security: Line of Credit Agreement with maximum draw of $35,000,000 Effective Average Interest Rate: 1.34% Name of Person to Whom Issued: National Fuel Gas Company End of Year Balance: $17,200,000 Highest Balance During Year: $18,800,000 Exemption: Rule 52 5. Name of Issuer: Toro Partners LLC Description of Security: Line of Credit Agreement with maximum draw of $55,000,000 Effective Average Interest Rate: 1.25% Name of Person to Whom Issued: Horizon LFG, Inc. End of Year Balance: $43,000,000 Highest Balance During Year: $48,000,000 Exemption: Rule 52
FISCAL YEAR ENDED SEPTEMBER 30, 2004.
Name 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: 6.82% Note maturing August 1, 2004 Registrant 100,000 100,000 Paid at Maturity 6.50% Note maturing September 15, 2022 Registrant 128 128 Rule 42 7.75% Note maturing February 1, 2004 Registrant 125,000 125,000 Paid at Maturity Subsidiaries of Registered Holding Company: Seneca Resources*: 6.95% Note maturing Seneca August 1, 2004 Resources 50,000 50,000 Paid at Maturity 6.79% Note maturing Seneca September 15, 2022 Resources 128 128 Rule 52 Distribution Corporation: 7.99% Note maturing Distribution February 1, 2004 Corporation 100,000 100,000 Paid at Maturity Supply Corporation: 6.95% Note maturing Supply August 1, 2004 Corporation 50,000 50,000 Paid at Maturity 7.99% Note maturing Supply 25,000 25,000 Paid at February 1, 2004 Corporation Maturity
ITEM 5. INVESTMENTS IN SECURITIES OF NONSYSTEM COMPANIES
At September 30, 2004, Seneca Resources owned 277,408 shares of common stock of Touchstone Resources USA, Inc. ("Touchstone"), or 0.5% of Touchstone's issued and outstanding common stock (owner's book value of $291,278). Touchstone is engaged in oil and gas exploration and production activities.
Distribution Corporation and NFR hold stock certificates obtained in bankruptcy distributions applicable to obligations of customers (Distribution Corporation, 15; NFR, 1) incurred in the ordinary course of business.
ITEM 6. OFFICERS AND DIRECTORS
Part I. Names, principal business address and positions held as of September 30, 2004Names of System Companies with Which Connected National National Highland Fuel Gas Fuel Gas Seneca Forest Distribution Supply Resources Resources Registrant Corp. Corp. Corp.* Inc.** ---------- ------------ -------- --------- --------- P. C. Ackerman Williamsville, NY (1) |COB,CEO,D,P, s | COB, D, s | COB, D, s | COB, D, s |COB, D, s | B. S. Lee Sun Lakes, AZ (2) | D, df | - | - | - | - | G. L. Mazanec Houston, TX (3) | D, df | - | - | - | - | J. F. Riordan Des Plaines, IL (17)| D, df | - | - | - | - | R. T. Brady East Aurora, NY (4) | D, df | - | - | - | - | R E. Kidder Jamestown, NY (24)| D, df | - | - | - | - | R D. Cash Salt Lake City, UT (27)| D, df | - | - | - | - | J. R. Peterson Williamsville, NY (1) | AS, s | - | GC, s | - | - | J. A. Beck Houston, TX (5) | - | - | - | D, P, s | P, D | D. P. Butler Houston, TX (5) | - | - | - | S, s | S | T. L. Atkins Houston, TX (5) | - | - | - | T, AS, s | T | B. L. McMahon Houston, TX (5) | - | - | - | SVP, s | - | A. M. Cellino Williamsville, NY (1) | S, s | SVP, S, s | D, s | - | - | P. M. Ciprich Williamsville, NY (1) | s | AS, GC, s | - | - | - | B. H. Hale Williamsville, NY (1) | - | - | - | - | - | J. R. Pustulka Williamsville, NY (1) | - | s | D, SVP, s | - | - | J. D. Ramsdell Williamsville, NY (1) | - | D, SVP, s | s | - | - | D. J. Seeley Williamsville, NY (1) | - | SVP, s | P, D, s | - | - | D. F. Smith Williamsville, NY (1) | - | P, D, s | SVP, s | D | - | R. J. Tanski Williamsville, NY (1) | T, s | D, SVP, T, s | T,S, s | s | s | C. M. Carlotti Erie, PA (16)| - | VP, s | s | - | - | D. L. DeCarolis Williamsville, NY (12)| - | - | - | - | - | R. E. Klein Williamsville, NY (1) | - | AC, s | s | s | s | S. Wagner Williamsville, NY (1) | s | VP, s | s | s | s | B. Heine Williamsville, NY (1) | - | AVP, s | - | - | - | J. Lesch Buffalo, NY (18)| - | AVP, s | s | - | - | D. Wassum Williamsville, NY (1) | - | - | - | - | - | K. Camiolo Williamsville, NY (1) | C | C, s | C,s | s | s | D. Bauer Williamsville, NY (1) | - | AT, s | s | s | s | Position Symbol Key COB - Chairman of the Board of Directors df - Director's Fees CEO - Chief Executive Officer S - Secretary CFO - Chief Financial 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
See page 16 for Notes.
Data- Track National Horizon Account Fuel Energy Horizon Horizon Services, Resources, Development, Leidy Hub, LFG, Power Inc. Inc. Inc.*** Inc. Inc. **** Inc.***** --------- ---------- ------------ ---------- --------- ---------- COB, P, D, s| s | P, D, s | COB, D | s | s | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | D | - | S,T | - | - | - | S | S,T | - | - | - | - | T | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | VP, s | - | P,s | D,P,s | - | - | - |SVP,S,D | - | - | s | s | - | - | - | - | - | - | - | - | - | - | D | - | - | - | - | D | - | s | T,S s | - | - | - | - | - | - | - | - | - | - |D, S, VP, s | - | - | - | - | - | s | - | - | - | - | - | s | s | - | s | s | - | - | - | - | - | - | - | - | - | - | - | - | - | - | AVP, s | - | AVP | AVP | - | s | - | - | - | - | - | s | - | - | - | - |
* Officers and directors of Seneca Resources' subsidiaries as of September 30, 2004 were as follows:
Seneca Energy Canada, Inc. Board of Directors and Officers: P. C. Ackerman (Director) Williamsville, NY (1) J. A. Beck (Director) Houston, TX (5) D. H. Ibach (President and Director) Calgary, Alberta (19) S. Bridge (Vice President and Director) Calgary, Alberta (19) D. P. Butler (Assistant Secretary) Houston, TX (5) J. G. Campbell (Vice President) Calgary, Alberta (19) C. S. Sawyer (Vice President) Calgary, Alberta (19) Seneca Player Corp. Board of Directors and Officers: J. A. Beck (President and Director) Houston, TX (5) D. P. Butler (Secretary and Director) Houston, TX (5) T. L. Atkins (Treasurer) Houston, TX (5) 3062782 Nova Scotia Co. Board of Directors and Officers: J. A. Beck (President and Director) Houston, TX (5) T. L. Atkins (Secretary) Houston, TX (5) 3062783 Nova Scotia Co. Board of Directors and Officers: J. A. Beck (President and Director) Houston, TX (5) T. L. Atkins (Director) Houston, TX (5) ** Officers and directors of Highland's subsidiaries as of September 30, 2004 were as follows: Empire State Pipeline D. J. Seeley (President) Williamsville, NY (1) R. C. Kraemer (Vice President) Williamsville, NY (1) R. J. Tanski (Treasurer) Williamsville, NY (1) J. R. Peterson (Secretary) Williamsville, NY (1) Empire State Pipeline Company, LLC D. J. Seeley (Manager and President) Williamsville, NY (1) R. J. Tanski (Treasurer) Williamsville, NY (1) J. R. Peterson (Secretary) Williamsville, NY (1) St.Clair Pipeline Company, LLC D. J. Seeley (Manager and President) Williamsville, NY (1) R. J. Tanski (Treasurer) Williamsville, NY (1) J. R. Peterson (Secretary) Williamsville, NY (1) *** Officers and directors of Horizon's subsidiaries as of September 30, 2004 were as follows: Horizon Energy Holdings, Inc. Board of Directors and Officers: P. C. Ackerman (Director and President) Williamsville, NY (1) B. H. Hale (Vice President) Williamsville, NY (1) R. J. Tanski (Secretary and Treasurer) Williamsville, NY (1) Horizon Energy Development, B.V. Managing Directors: B. H. Hale Williamsville, NY (1) Intra Beheer B.V. Amsterdam, The Netherlands (8) Horizon Energy Development, s.r.o. Managing Director: B. H. Hale Williamsville, NY (1) Statutory Agents: V. Miskovsky Prague, Czech Republic (7) See Page 16 for Notes
Teplarna Liberec, a.s. Board of Directors: S. Cvrcek Liberec, Czech Republic (21) Z. Kozesnik Liberec, Czech Republic (10) J. Krutsky Liberac, Czech Republic (20) J. Masinda Prague, Czech Republic (7) V. Miskovsky Prague, Czech Replublic (7) L. Zapletal Most, Czech Republic (14) Lounske tepelne hospodarstvi, s.r.o. Statutory Agents: J. Bores Most, Czech Republic (14) F. Jicha Louny, Czech Republic (26) United Energy, a.s. Board of Directors: L. Zapletal Most, Czech Republic (14) B. H. Hale Williamsville, NY (1) P. C. Ackerman Williamsville, NY (1) R. J. Tanski Williamsville, NY (1) J. Sulc Usti nad Labem, Czech Republic (22) E. Volkman Louny, Czech Republic (23) J. Masinda Prague, Czech Republic (7) D. A. Wassum Williamsville, NY (1) ENOP, s.r.o. Statutory Agents: R. Kocar Most, Czech Republic (14) P. Mares Most, Czech Republic (14) Horizon Energy Bulgaria Ltd. Manager: B. H. Hale Williamsville, NY (1) Sofia Energy EAD D. A. Wassum (Director) Williamsville, NY (1) B. H. Hale (Director) Williamsville, NY (1) Montenero Energia S.r.l. B. H. Hale (Director and Chairman) Williamsville, NY (1) R. J. Tanski (Director) Williamsville, NY (1) K. D. Cotter (Director) Williamsville, NY (1) A. Messina (Director) Rome, Italy (28) S. Corso (Director) Rome, Italy (29) G. Mancini (Director) Rome, Italy (30) **** Officers and directors of Horizon LFG's subsidiaries as of September 30, 2004 were as follows: Toro Partner LLC B. H. Hale (Manager) Williamsville, NY (1) R. J. Tanski (Manager) Williamsville, NY (1) D. A. Wassum (President and Treasurer) Williamsville, NY (1) K. D. Cotter (Vice President and Secretary) Williamsville, NY (1) Toro Partners, LP Toro Partners, LP has no directors or officers; it is managed by its general partner. Toro Energy of Michigan, LLC B. H. Hale (Manager) Williamsville, NY (1) R. J. Tanski (Manager) Williamsville, NY (1) D. A. Wassum (President and Treasurer) Williamsville, NY (1) K. D. Cotter (Vice President and Secretary) Williamsville, NY (1) Toro Energy of Ohio-Statewide, LLC B. H. Hale (Manager) Williamsville, NY (1) R. J. Tanski (Manager) Williamsville, NY (1) D. A. Wassum (President and Treasurer) Williamsville, NY (1) K. D. Cotter (Vice President and Secretary) Williamsville, NY (1) Toro Energy of Ohio, LLC B. H. Hale (Manager) Williamsville, NY (1) R. J. Tanski (Manager) Williamsville, NY (1) D. A. Wassum (President and Treasurer) Williamsville, NY (1) K. D. Cotter (Vice President and Secretary) Williamsville, NY (1) Toro Energy of Kentucky, LLC B. H. Hale (Manager) Williamsville, NY (1) R. J. Tanski (Manager) Williamsville, NY (1) D. A. Wassum (President and Treasurer) Williamsville, NY (1) K. D. Cotter (Vice President and Secretary) Williamsville, NY (1)
Toro Energy of Missouri, LLC B. H. Hale (Manager) Williamsville, NY (1) R. J. Tanski (Manager) Williamsville, NY (1) D. A. Wassum (President and Treasurer) Williamsville, NY (1) K. D. Cotter (Vice President and Secretary) Williamsville, NY (1) Toro Energy of Maryland, LLC B. H. Hale (Manager) Williamsville, NY (1) R. J. Tanski (Manager) Williamsville, NY (1) D. A. Wassum (President and Treasurer) Williamsville, NY (1) K. D. Cotter (Vice President and Secretary) Williamsville, NY (1) Toro Energy of Indiana, LLC B. H. Hale (Manager) Williamsville, NY (1) R. J. Tanski (Manager) Williamsville, NY (1) D. A. Wassum (President and Treasurer) Williamsville, NY (1) K. D. Cotter (Vice President and Secretary) Williamsville, NY (1) Toro Energy of Ohio-American, LLC B. H. Hale (Manager) Williamsville, NY (1) R. J. Tanski (Manager) Williamsville, NY (1) D. A. Wassum (President and Treasurer) Williamsville, NY (1) K. D. Cotter (Vice President and Secretary) Williamsville, NY (1) ***** Officers of Power's subsidiaries as of September 30, 2004 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) Williamsville, NY (1) Model City Energy, LLC B. H. Hale (Chief Financial Officer) Williamsville, NY (1) Energy Systems North East, LLC B. H. Hale (Senior Vice President) Williamsville, NY (1) K. D. Cotter (Vice President) Williamsville, NY (1) P. L. Malachowski (Treasurer) Williamsville, NY (1) Notes (1) National Fuel Gas Company, 6363 Main Street, Williamsville, New York 14221 (2) 9226 E. Champagne Drive, Sun Lakes, AZ 85248 (3) 302 Fall River Court, Houston, TX 77024 (4) Moog Inc., Plant 24/Seneca at Jamison Rd., East Aurora, NY 14052-0018 (5) Seneca Resources Corporation, 1201 Louisiana Street, Suite 400, Houston, Texas 77002 (6) Seneca Resources Corporation, P.O. Box 630, Santa Paula, CA 93061-0630 (7) Horizon Energy Development, s.r.o., Maiselova 15, Praha 1 - Josefov, 11000, Czech Republic (8) Intra Beheer B.V., Teleportboulevard 140, 1043 EJ, Amsterdam, The Netherlands (9) Maid of the Mist Corporation, 151 Buffalo Avenue, Niagara Falls, New York 14303 (10) Teplarna Liberec, a.s., Dr. Milady Horakove 641/34a, 460 01 Liberec 4, Czech Republic (11) Predicor, Tax advisor, Pristavni 2, 170 00 Prague 7, Czech Republic (12) National Fuel Resources, Inc., 165 Lawrence Bell Drive, Williamsville, NY 14221 (13) Law Office Rasovsky, Krejci, Cinglos, Spitalka 23 b, 602 00 Brno, Czech Republic (14) United Energy, a.s., Teplarenska no. 2, 434 03 Most Komorany, Czech Republic (15) Teplo Branany, s.r.o., Bilinska 76 Branany, Czech Republic (16) National Fuel Gas Company, 1100 State Street, Erie, PA 16501 (17) Gas Technology Institute, 1700 So. Mt. Prospect Road, Des Plaines, IL 60018-1804 (18) National Fuel Gas Distribution Corporation, 365 Mineral Springs Road, Building 3, Buffalo, NY 14210 (19) Seneca Energy Canada, Inc., 1000, 550 - 6 Avenue, S.W., Calgary, Alberta, Canada T2P 0S2 (20) City of Liberec, nam. Dr. E. Benese 1, 460 59 Liberec 1, Czech Republic (21) Parliament of the Czech Republic, Snemovni 4, 118 26 Prague 1, Czech Republic (22) President of Usti Region, Velka Hradebni 3118/48, 400 02 Usti nad Labem, Czech Republic (23) City of Louny, Mirove namesti 35, 440 23 Louny, Czech Republic (24) The Robert H. Jackson Center, Inc., 305 East Fourth Street, P. O. Box 879, Jamestown, NY 14702 (25) Suite 900, 1959 Upper Water Street, P.O. Box 997, Halifax, Nova Scotia B3J 2X2 (26) Lounske tepelne hospodarstvi spol. s.r.o., 17 listopadu 2580, 440 01 Louny (27) P.O. Box 45433, Salt Lake City, UT 84145 (28) Piazzale Ostiense No. 2, Rome, Italy (29) Piazzale Ostiense No. 2, Rome, Italy (30) Piazzale Ostiense No. 2, Rome, Italy
Part II. Financial connections as of September 30, 2004: 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) R. D. Cash Zions Bancorporation, Director 70 (a) Salt Lake City, Utah G. L. Mazanec Northern Trust Bank of Texas, Dallas, Texas Director 70 (a)Part III. Compensation and other related information:
(a) Compensation of Directors and Executive Officers: The information required by this item appears under "Directors' Compensation," and "Executive Compensation," on pages 7 and 8 and pages 13 to 20, respectively, of the National Fuel Gas Company Proxy Statement, dated January 6, 2005, included as Exhibit A (3) to this Form U5S and is incorporated herein by reference. (b) Interest of executive officers and directors in securities of System Companies including options or other rights to acquire securities: The information required by this item appears under "Security Ownership of Certain Beneficial Owners and Management," on pages 10 to 12 of the National Fuel Gas Company Proxy Statement, dated January 6, 2005, included as Exhibit A(3) of this Form U5S and is incorporated herein by reference. (c) Contracts and Transactions with System Companies:
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 for fiscal year 2004. o Retirement Benefit Agreement, dated September 22, 2003, between the Company and David F. Smith (Exhibit 10.2, Form 10-K for fiscal year ended September 30, 2003 in File No. 1-3880) o Form of Employment Continuation and Noncompetition Agreement, dated as of December 11, 1998, among the Company, National Fuel Gas Distribution Corporation and each of Philip C. Ackerman, Anna Marie Cellino, Joseph P. Pawlowski, James D. Ramsdell, Dennis J. Seeley, David F. Smith and Ronald J. Tanski (Exhibit 10.1, Form 10-Q for the quarterly period ended June 30, 1999 in File No. 1-3880) o Form of Employment Continuation and Noncompetition Agreement, dated as of December 11, 1998, among the Company, National Fuel Gas Supply Corporation and each of Bruce H. Hale and John R. Pustulka (Exhibit 10.2, Form 10-Q for the quarterly period ended June 30, 1999 in File No. 1-3880)
o Form of Employment Continuation and Noncompetition Agreement, dated as of December 11, 1998, among the Company, Seneca Resources Corporation and James A. Beck (Exhibit 10.3, Form 10-Q for the quarterly period ended June 30, 1999 in File No. 1-3880) o National Fuel Gas Company 1993 Award and Option Plan, dated February 18, 1993 (Exhibit 10.1, Form 10-Q for the quarterly period ended March 31, 1993 in File No. 1-3880) o Amendment to National Fuel Gas Company 1993 Award and Option Plan, dated October 27, 1995 (Exhibit 10.8, Form 10-K for fiscal year ended September 30, 1995 in File No. 1-3880) o Amendment to National Fuel Gas Company 1993 Award and Option Plan, dated December 11, 1996 (Exhibit 10.8, Form 10-K for fiscal year ended September 30, 1996 in File No. 1-3880) o Amendment to National Fuel Gas Company 1993 Award and Option Plan, dated December 18, 1996 (Exhibit 10, Form 10-Q for the quarterly period ended December 31, 1996 in File No. 1-3880) o National Fuel Gas Company 1993 Award and Option Plan, amended through June 14, 2001 (Exhibit 10.1, Form 10-K for fiscal year ended September 30, 2001 in File No. 1-3880) o National Fuel Gas Company 1997 Award and Option Plan, amended through June 14, 2001 (Exhibit 10.2, Form 10-K for fiscal year ended September 30, 2001 in File No. 1-3880) o National Fuel Gas Company Deferred Compensation Plan, as amended and restated through May 1, 1994 (Exhibit 10.7, Form 10-K for fiscal year ended September 30, 1994 in File No. 1-3880) o Amendment to the National Fuel Gas Company Deferred Compensation Plan, dated September 19, 1996 (Exhibit 10.10, Form 10-K for fiscal year ended September 30, 1996 in File No. 1-3880) o Amendment to the National Fuel Gas Company Deferred Compensation Plan, dated September 27, 1995 (Exhibit 10.9, Form 10-K for fiscal year ended September 30, 1995 in File No. 1-3880) o National Fuel Gas Company Deferred Compensation Plan, as amended and restated through March 20, 1997 (Exhibit 10.3, Form 10-K for fiscal year ended September 30, 1997 in File No. 1-3880) o Amendment to National Fuel Gas Company Deferred Compensation Plan dated June 16, 1997 (Exhibit 10.4, Form 10-K for fiscal year ended September 30, 1997 in File No. 1-3880) o Amendment No. 2 to the National Fuel Gas Company Deferred Compensation Plan, dated March 13, 1998 (Exhibit 10.1, Form 10-K for fiscal year ended September 30, 1998 in File No. 1-3880) o Amendment to the National Fuel Gas Company Deferred Compensation Plan, dated February 18, 1999 (Exhibit 10.1, Form 10-Q for the quarterly period ended March 31, 1999 in File No. 1-3880)
o Amendment to National Fuel Gas Company Deferred Compensation Plan, dated June 15, 2001 (Exhibit 10.3, Form 10-K for fiscal year ended September 30, 2001 in File No. 1-3880) o National Fuel Gas Company Tophat Plan, effective March 20, 1997 (Exhibit 10, Form 10-Q for the quarterly period ended June 30, 1997 in File No. 1-3880) o Amendment No. 1 to the National Fuel Gas Company Tophat Plan, dated April 6, 1998 (Exhibit 10.2, Form 10-K for fiscal year ended September 30, 1998 in File No. 1-3880) o Amendment No. 2 to the National Fuel Gas Company Tophat Plan, dated December 10, 1998 (Exhibit 10.1, Form 10-Q for the quarterly period ended December 31, 1998 in File No. 1-3880) o Amended and Restated Split Dollar Insurance Agreement, effective June 15, 2000 among the Company, Bernard J. Kennedy, and Joseph B. Kennedy, as Trustee of the Trust under the Agreement dated January 9, 1998 (Exhibit 10.1, Form 10-Q for the quarterly period ended June 30, 2000 in File No. 1-3880) o Contingent Benefit Agreement effective June 15, 2000 between the Company and Bernard J. Kennedy (Exhibit 10.2, Form 10-Q for the quarterly period ended June 30, 2000 in File No. 1-3880) o Amended and Restated Split Dollar Insurance and Death Benefit Agreement dated September 17, 1997 between the Company and Philip C. Ackerman (Exhibit 10.5, Form 10-K for fiscal year ended September 30, 1997 in File No. 1-3880) o Amendment Number 1 to Amended and Restated Split Dollar Insurance and Death Benefit Agreement by and between the Company and Philip C. Ackerman, dated March 23, 1999 (Exhibit 10.3, Form 10-K for fiscal year ended September 30, 1999 in File No. 1-3880) o Amended and Restated Split Dollar Insurance and Death Benefit Agreement dated September 15, 1997 between the Company and Joseph P. Pawlowski (Exhibit 10.7, Form 10-K for fiscal year ended September 30, 1997 in File No. 1-3880) o Amendment Number 1 to Amended and Restated Split Dollar Insurance and Death Benefit Agreement by and between the Company and Joseph P. Pawlowski, dated March 23, 1999 (Exhibit 10.5, Form 10-K for fiscal year ended September 30, 1999 in File No. 1-3880) o Amended and Restated Split Dollar Insurance and Death Benefit Agreement dated September 15, 1997 between the Company and Dennis J. Seeley (Exhibit 10.9, Form 10-K for fiscal year ended September 30, 1999 in File No. 1-3880) o Amendment Number 1 to Amended and Restated Split Dollar Insurance and Death Benefit Agreement by and between the Company and Dennis J. Seeley, dated March 29, 1999 (Exhibit 10.10, Form 10-K for fiscal year ended September 30, 1999 in File No. 1-3880) o Split Dollar Insurance and Death Benefit Agreement dated September 15, 1997 between the Company and Bruce H. Hale (Exhibit 10.11, Form 10-K for fiscal year ended September 30, 1999 in File No. 1-3880)
o Amendment Number 1 to Split Dollar Insurance and Death Benefit Agreement by and between the Company and Bruce H. Hale, dated March 29, 1999 (Exhibit 10.12, Form 10-K for fiscal year ended September 30, 1999 in File No. 1-3880) o Split Dollar Insurance and Death Benefit Agreement dated September 15, 1997 between the Company and David F. Smith (Exhibit 10.13, Form 10-K for fiscal year ended September 30, 1999 in File No. 1-3880) o Amendment Number 1 to Split Dollar Insurance and Death Benefit Agreement by and between the Company and David F. Smith, dated March 29, 1999 (Exhibit 10.14, Form 10-K for fiscal year ended September 30, 1999 in File No. 1-3880) o National Fuel Gas Company Parameters for Executive Life Insurance Plan (Exhibit 10.1, Form 10-K for fiscal year ended September 30, 2004, in file No. 1-3880) o National Fuel Gas Company and Participating Subsidiaries Executive Retirement Plan as amended and restated through November 1, 1995 (Exhibit 10.10, Form 10-K for fiscal year ended September 30, 1995 in File No. 1-3880) o National Fuel Gas Company and Participating Subsidiaries 1996 Executive Retirement Plan Trust Agreement (II) dated May 10, 1996 (Exhibit 10.13, Form 10-K for fiscal year ended September 30, 1996 in File No. 1-3880) o Amendments to National Fuel Gas Company and Participating Subsidiaries Executive Retirement Plan dated September 18, 1997 (Exhibit 10.9, Form 10-K for fiscal year ended September 30, 1997 in File No. 1-3880) o Amendments to the National Fuel Gas Company and Participating Subsidiaries Executive Retirement Plan dated December 10, 1998 (Exhibit 10.2, Form 10-Q for the quarterly period ended December 31, 1998 in File No. 1-3880) o Amendments to National Fuel Gas Company and Participating Subsidiaries Executive Retirement Plan effective September 16, 1999 (Exhibit 10.15, Form 10-K for fiscal year ended September 30, 1999 in File No. 1-3880) o Amendment to National Fuel Gas Company and Participating Subsidiaries Executive Retirement Plan, effective September 5, 2001 (Exhibit 10.4, Form 10-K/A for fiscal year ended September 30, 2001 in File No. 1-3880) o National Fuel Gas Company and Participating Subsidiaries Executive Retirement Plan 2003 Trust Agreement (I), dated September 1, 2003 (Exhibit 10.2, Form 10-K for fiscal year ended September 30, 2004, in File No. 1-3880) o Retirement Supplement Agreement, dated January 11, 2002, between the Company and Joseph P. Pawlowski (Exhibit 10.6, Form 10-K/A for fiscal year ended September 30, 2001 in File No. 1-3880) o Amendment No. 1 to Retirement Supplement Agreement dated March 11, 2004, between the Company and Joseph P. Pawlowski (Exhibit 10 (iii), Form 10Q for the quarterly period ended March 31, 2004 in File No. 1-3880)
o Administrative Rules with Respect to at Risk Awards under the 1993 Award and Option Plan (Exhibit 10.14, Form 10-K for fiscal year ended September 30, 1996 in File No. 1-3880) o Administrative Rules with Respect to at Risk Awards under the 1997 Award and Option Plan (Exhibit A, Definitive Proxy Statement, Schedule 14(A) filed January 10, 2002 in File No. 1-3880) o Administrative Rules of the Compensation Committee of the Board of Directors of National Fuel Gas Company, as amended and restated, effective September 9, 2004 (Exhibit 10.3, Form 10-K for fiscal year ended September 30, 2004 in File No. 1-3880) o Excerpts of Minutes from the National Fuel Gas Company Board of Directors Meeting of March 20, 1997 regarding the Retainer Policy for Non-Employee Directors (Exhibit 10.11, Form 10-K for fiscal year ended September 30, 1997 in File No. 1-3880) o Retirement and Consulting Agreement, dated September 5, 2001, between the Company and Bernard J. Kennedy (Exhibit 10.4, Form 10-K for fiscal year ended September 30, 2004 in File No. 1-3880) (d) Indebtedness to System Companies: None (e) Participation in Bonus and Profit-Sharing Arrangements and Other Benefits: The information required by this item appears under "Directors' Compensation" and "Executive Compensation" on pages 7 and 8 and pages 13 to 20, respectively, of the National Fuel Gas Company Proxy Statement, dated January 6, 2005, included as Exhibit A(3) to this Form U5S and incorporated herein by reference. (f) Rights to Indemnity: The information required by this item appears in Article II, Paragraph 8 of the National Fuel Gas Company By-Laws as amended through December 9, 2004. Such By-Laws are listed as Exhibit B(1)(ii) to this Form U5S. The Company also purchases directors and officers liability insurance coverage with an annual aggregate limit of $115 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, 2004 --------------- ----------------- ------- -------------------------- ------------------ 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 $ 2,237 Distribution Corporation N/A *NYPAC Misc. Income Deductions $ 1,710 Distribution Corporation N/A *PAPAC Misc. Income Deductions $ 1,477 Supply Corporation N/A *FEDPAC Misc. Income Deductions $ 955 Supply Corporation N/A *NYPAC Misc. Income Deductions $ 2,206 Supply Corporation N/A *PAPAC Misc. Income Deductions $ 901 * Company labor and expenses relating to administration of political action funds. (2) Any citizens group or public relations counsel: Distribution Corporation 29 Beneficiaries Civic Operation Expense $ 17,953 Supply Corporation 14 Beneficiaries Civic Operation Expense $ 5,742 Seneca Resources 1 Beneficiary Civic Operation Expense $ 335 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 (1) Salaries of officers of the Registrant NATIONAL FUEL GAS COMPANY REPORT OF OFFICERS' SALARIES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 Distribution Supply Seneca Data- Horizon Horizon Parent Corp. Corp. Resources Highland Horizon Track Power LFG NFR Total ------ ------------ ------ --------- -------- ------- ----- ------- ------- --- ----- P. C. Ackerman 97,500 257,400 210,600 120,900 23,400 19,500 3,900 3,900 3,900 39,000 780,000 K. M. Camiolo 3,250 35,334 18,941 3,614 3,770 - - - - 91 65,000 A. M. Cellino 12,025 120,130 108,225 - 120 - - - - - 240,500 J. P. Pawlowski 7,075 76,169 41,261 8,165 8,674 - - - - 156 141,500 R. J. Tanski 27,850 137,755 55,700 12,634 11,084 33,200 - - - 277 278,500
Part I. Intercompany sales and services (Continued) (2) Services rendered by Statutory Subsidiaries DISTRIBUTION CORPORATION REPORT OF INTERCOMPANY SALES AND SERVICES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Common Expenses --------------------------------------------------------------------------------- Corporate Materials Accounts Receiving Company Executive Purchasing Communications Management Accounting Payable Risk ----------------- --------- ---------- -------------- ---------- ---------- -------- ---- Parent Company $ - $ - $ - $ - $ - $ - $ - Supply Corporation 322 200 97 8 969 227 43 Seneca Resources 318 - 31 - 187 - 55 Empire State Pipeline 72 45 22 - 169 52 6 Highland 48 - 5 - 28 - 11 Data-Track - - - - - - - NFR 8 - 1 - 4 - 17 Leidy Hub - - - - - - - Toro Partners LLC - - - - - - - Toro Partners L.P. - - - - - - - Upstate Energy - - - - - - - Horizon - - - - - - - ------ ---- ---- --- ------ ---- ---- $ 768 $245 $156 $ 8 $1,357 $279 $132 ====== ==== ==== === ====== ==== ==== Common Expenses ----------------------------------------------------------------------------------- Data Human Government Benefit Receiving Company Processing Resources Legal Finance Affair Services CPR ----------------- ---------- --------- ----- ------- ---------- -------- --- Parent Company $ - $ - $ - $ - $ - $ - $ - Supply Corporation 69 563 128 540 37 152 115 Seneca Resources - 72 128 76 - 154 - Empire State Pipeline 19 96 29 86 8 35 26 Highland - 11 19 11 - 23 - Data-Track - - - - - - - NFR - 2 3 2 - 4 - Leidy Hub - - - - - - - Toro Partners LLC - - - - - - - Toro Partners L.P. - - - - - - - Upstate Energy - - - - - - - Horizon - - - - - - - ---- ---- ---- ---- --- ---- ---- $ 88 $744 $307 $715 $45 $368 $141 ==== ==== ==== ==== === ==== ==== Common Expenses ------------------- Total Total Total Convenience or Total Service Common Clearing Direct Accommodation Rendered By Receiving Company Payroll Expense Charges* Charges* Payments* Statutory Subsidiaries ----------------- ------- ------- -------- -------- -------------- ---------------------- Parent Company $ - $ - $ 71 $ 543 $ 505 $ 1,119 Supply Corporation 131 3,601 4,672 7,212 11,625 27,110 Seneca Resources - 1,021 225 584 3,245 5,074 Empire State Pipeline - 665 192 315 510 1,682 Highland - 156 35 45 545 781 Data-Track - - 1 9 2 12 NFR - 41 29 184 275 530 Leidy Hub - - - 5 1 6 Toro Partners LLC - - - - 1 1 Toro Partners L.P. - - 5 73 40 119 Upstate Energy - - 1 16 5 22 Horizon Energy - - 23 409 346 778 Horizon Power - - 8 140 78 226 ---- ------ ------ ------ ------- ------- $131 $5,484 $5,263 $9,535 $17,178 $37,460 ==== ====== ====== ====== ======= ======= * Analysis of Clearing Charges, Direct Charges & Convenience or Accommodation Payments is presented on the following pages.
Part I. Intercompany sales and services (Continued) (2) Services rendered by Statutory Subsidiaries DISTRIBUTION CORPORATION REPORT OF INTERCOMPANY SALES AND SERVICES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Clearing Charges ---------------------------------------------------------------------------------------- Material Total Officer Issue & Data Messenger Clearing Receiving Company Clearing Transfer Telecommunications Rental Postage Processing Expense Charges ----------------- -------- -------- ------------------ ------ ------- ---------- ------- ------- Parent Company $ 66 $ - $ - $ 3 $ - $ 2 $ - $ 71 Supply Corporation 350 1,648 248 398 3 $1,929 96 4,672 Seneca Resources 72 - - 58 - 95 - 225 Empire State Pipeline 33 15 - 41 - 103 - 192 Highland 13 - - 8 - 13 - 35 Data-Track 1 - - - - - - 1 NFR 24 - - 2 - 2 1 29 Leidy Hub - - - - - - - - Toro Partners LLLC - - - - - - - - Toro Partners L.P. - - - - - 5 - 5 Upstate Energy 1 - - - - - - 1 Horizon Energy 17 - - 2 - 4 - 23 Horizon Power 1 - - 5 - 2 - 8 ---- ------ ---- ---- --- ------ ---- ------ $580 $1,663 $248 $517 $ 3 $2,155 $ 97 $5,263 ==== ====== ==== ==== === ====== ==== ====== Direct Charges ----------------------------------------------------------------------------------- Telecom- Environment/ Contract Receiving Company Land MMD munications Insurance Operations Administration Accounting ----------------- ---- --- ----------- ----------- ---------- -------------- ---------- Parent Company $ - $ - $ - $ 14 $ - $ - $ - Supply Corporation 442 422 35 60 2,987 55 4 Seneca Resources 46 - - 18 19 - - Empire State Pipeline - - - 1 98 - - Highland - - - 4 - - - Data-Track - - - - - - - NFR - - - 1 - - - Leidy Hub - - - - - - - Toro Partners LLC - - - - - - - Toro Partners L.P. - - - 1 - - 16 Upstate Energy - - - - - - - Horizon Energy - - - 4 - - 39 Horizon Power - - - 17 - - 51 ---- ---- --- ---- ------ --- ---- $489 $422 $35 $121 $3,104 $55 $111 ==== ==== === ==== ====== === ==== Direct Charges ---------------------------------------------------------------------------------- Government Budget & Human Receiving Company Legal Affairs Finance Executive Insurance Resources ----------------- ----- ---------- ------- --------- --------- --------- Parent Company $ - $ - $ 157 $ 336 $ - $14 Supply Corporation 31 281 454 1,476 426 36 Seneca Resources - - 127 355 - 14 Empire State Pipeline - 7 45 138 - - Highland - - 2 39 - - Data-Track - - - 9 - - NFR 1 - 36 101 - 12 Leidy Hub - - - 5 - - Toro Partners LLC - - - - - - Toro Partners L.P. - - 57 - - - Upstate Energy - - - 15 - - Horizon Energy - - 181 119 - - Horizon Power - - 59 13 - - --- ---- ------ ------ ---- --- $32 $288 $1,117 $2,606 $426 $75 === ==== ====== ====== ==== === Direct Charges ----------------------------------------------------------------------------------- Total Benefit Quality Corp. Direct Receiving Company Services Engineering Assurance Comm Security Charges ----------------- -------- ----------- --------- ---- -------- ------- Parent Company $ 22 $ - $ - $ - $ - $ 543 Supply Corporation - 322 54 - 125 7,212 Seneca Resources 4 - - - - 584 Empire State Pipeline - - - 14 13 315 Highland - - - - - 45 Data-Track - - - - - 9 NFR 33 - - - - 184 Leidy Hub - - - - - 5 Toro Partners LLC - - - - - - Toro Partners L.P. - - - - - 73 Upstate Energy - - - - - 16 Horizon Energy 66 - - - - 409 Horizon Power - - - - - 140 ---- ---- --- ---- ---- ------ $126 $322 $54 $ 14 $138 $9,535 ==== ==== === ==== ==== ======
Part I. Intercompany sales and services (Continued) (2) Services rendered by Statutory Subsidiaries (Continued) DISTRIBUTION CORPORATION ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Receiving Company ----------------------------------------------------------------------- Empire Toro Parent Supply Seneca State Data- Leidy Partner Company Corporation Resources Pipeline Track Highland NFR Hub LLC ------- ----------- --------- -------- ----- -------- --- ----- ------- Material $ - $ 725 $ - $ 1 $ - $ - $ - $ - $ - Rents - - - - - - - - - Transportation & Tools - 36 - 1 - - - - - Utilities 16 2,174 77 22 - - 13 - - Contractors & Outside Services 154 937 73 23 - 5 3 - - Equipment Purchases & Rentals - 251 - 2 - - - - - Employee Benefits 13 2,959 479 5 - 317 129 - - Office Expense 36 525 35 28 - 4 5 - 1 R & D 1 500 - - - 43 - - - Dues & Subscriptions 1 506 - - - - - - - Other Insurance - 1,405 2,470 385 1 95 25 - - Injuries & Damages 11 171 - - - 72 - - - Advertising - 6 - - - - - - - Postage - 13 - - - - - - - Other 210 334 1 12 1 - 57 - - General Accounting Adj. 63 1,057 110 31 - 9 43 1 - Property Acquisition - 7 - - - - - - - Environment - 20 - - - - - - - ---- ------- ------ ---- --- ---- ---- ---- ---- $505 $11,625 $3,245 $510 $ 2 $545 $275 $ 1 $ 1 ==== ======= ====== ==== === ==== ==== ==== ==== Receiving Company ------------------------------------------------- Toro Upstate Horizon Horizon Partner L.P. Energy Energy Power Total ------------ ------- ------- ------- ----- Material $ - $ - $ - $ - $ 727 Rents - - - - - Transportation & Tools - - - - 37 Utilities - - - - 2,302 Contractors & Outside Services 6 1 42 - 1,244 Equipment Purchases & Rentals - - 2 - 255 Employee Benefits - - 29 - 3,931 Office Expense 7 1 10 1 652 R & D - - - - 544 Dues & Subscriptions - - - - 506 Other Insurance 24 - 131 71 4,607 Injuries & Damages - - - - 254 Advertising - - - - 6 Postage - - - - 13 Other - 3 5 (7) 616 General Accounting Adj. 3 - 126 13 1,456 Property Acquisition - - - - 7 Environmental - - - - 20 ---- ---- ---- ---- ------- $ 40 $ 5 $346 $ 78 $17,178 ==== ==== ==== ==== =======
Part I. Intercompany sales and services (Continued) (2) Services rendered by Statutory Subsidiaries (Continued) SUPPLY CORPORATION REPORT OF INTERCOMPANY SALES AND SERVICES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Clearing Accounts ------------------------------------------------------------------------------- Material Total Executive Production Employee Issue & Rental Transport. Gas Clearing Receiving Company Clearing Clearing Benefits Transfer Clear Clearing Measurement Charges ----------------- --------- ---------- -------- -------- ----- -------- ----------- ------- Parent Company $ 27 $ - $ - $ 3 $ 2 $ - $ - $ 32 Distribution Corp. 32 - - 388 360 - - 780 Seneca Resources - 480 - 7 - - - 487 Horizon Energy 2 - - - 1 - - 2 Horizon LFG - - - - - - - - Empire State Pipeline 10 - - - 1 262 13 287 NFR - - - - - - - - Highland - - - - - - - - Data Track - - - - - - - NFR Power 1 - - - - - - 1 Toro Partners, LP - - - - - - - - ---- ---- ---- ---- ---- ---- --- ------ $ 72 $480 $ - $398 $365 $262 $13 $1,590 ==== ==== ==== ==== ==== ==== === ====== Direct Charges ------------------------------------------------------------------------- Operations, Benefit Human Gas Construction & Receiving Company Executive Engineering Services Resources Land Control Customer Service ----------------- --------- ----------- -------- --------- ---- ------- ---------------- Parent Company $101 $ - $ 47 $ - $ - $ - $ - Distribution Corp. 216 24 - 80 211 1,338 2,457 Seneca Resources - 9 7 - 63 - 68 Horizon Energy 25 - 8 - - - - Horizon LFG - - - - - - - Empire State Pipeline 88 93 - - 3 168 357 NFR - - 3 - - - - Highland - - 2 16 - - - Data Track - - 3 - - - - NFR Power - - - - - - - Toro Partners, LP - - - - - - - ---- ---- ---- ---- ---- ------ ------ $429 $126 $ 69 $ 96 $277 $1,505 $2,882 ==== ==== ==== ==== ==== ====== ======
Part I. Intercompany sales and services (Continued) (2) Services rendered by Statutory Subsidiaries (Continued) SUPPLY CORPORATION REPORT OF INTERCOMPANY SALES AND SERVICES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Direct Charges Continued --------------------------------------------------- Gas Gas Interstate Receiving Company Legal MMD Storage Measurement Marketing ---------------- ----- --- ------- ----------- ---------- Parent Company $ - $ - $ - $ - $ - Distribution Corp. 68 80 1 - - Seneca Resources - - - - - Horizon Energy 29 - 3 - - Horizon LFG 9 - - - - Empire State Pipeline 54 - - - 106 NFR - - - - - Highland - - - - - Data Track - - - - - NFR Power - - - - - Toro Partners, LP 18 - - - - ---- ---- --- --- ---- $177 $ 80 $ 4 $ - $106 ==== ==== === === ==== Total Services Total Total Convenience or Rendered By Direct Clearing Accommodation Statutory Receiving Company Charges Charges Payments* Subsidiaries ----------------- ------- -------- -------------- ------------- Parent Company $ 148 $ 32 $25,130 $25,310 Distribution Corp. 4,474 780 2,526 7,780 Seneca Resources 147 487 (1) 633 Horizon Energy 65 2 16 83 Horizon LFG 9 - - 9 Empire State Pipeline 868 287 109 1,264 NFR 3 - - 3 Highland 18 - - 18 Data Track 3 - - 3 NFR Power - 1 - 1 Toro Partners, LP 18 - - 18 ------ ------ ------- ------- $5,752 $1,590 $27,781 $35,123 ====== ====== ======= ======= * Analysis of Convenience or Accommodation Payments is presented on separate page.
Part I. Intercompany sales and services (Continued) (2) Services rendered by Statutory Subsidiaries (Continued) SUPPLY CORPORATION ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Receiving Company --------------------------------------------------------- Parent Distribution Seneca Horizon Horizon Company Corporation Resources Energy LFG NFR ------- ------------ --------- ------- -------- --- Material $ 13 $ 129 $(0) $ - $ - $ - Transportation - 6 - - - - Utilities - 146 - - - - Contractors & Outside Services 47 1,210 (2) 4 - - Equipment Purchases & Rentals - 17 - - - - Employee Benefits 23,000 6 - 1 - - Office Expense 176 81 - 12 - - Research & Development - 500 - - - - Dues & Memberships - 371 - - - - Other 147 54 - - - - Other Insurance - 9 - - - - Postage - - - - - - Advertising - 5 - - - - Environmental - 3 - - - - General Accounting Adjustment 1,747 (11) - - - - ------- ------ --- --- ---- --- $25,130 $2,526 $(1) $16 $ - $ - ======= ====== === === ==== === Receiving Company ---------------------------------------------- Data NFR Toro Empire State Highland Track Power Partners Pipeline Total -------- ----- ----- -------- ------------ ----- Material $ - $ - $ - $ - $ 13 $ 155 Transportation - - - - 1 7 Utilities - - - - 8 155 Contractors & Outside Services - - - - 75 1,334 Equipment Purchases & Rentals - - - - - 17 Employee Benefits - - - - - 23,007 Office Expense - - - - 6 274 Research & Development - - - - - 500 Dues & Memberships - - - - - 371 Other - - - - - 201 Other Insurance - - - - - 9 Postage - - - - - 0 Advertising - - - - - 5 Environmental - - - - 1 4 General Accounting Adjustment - - - - 5 1,740 --- --- --- --- ---- ------- $- $- $- $- $109 $27,781 === === === === ==== =======
Part I. Intercompany sales and services (Continued) (2) Services rendered by Statutory Subsidiaries (Continued) SENECA RESOURCES REPORT OF INTERCOMPANY SALES AND SERVICES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Total Services Rendered By Timber Operations Convenience Statutory Receiving Company Sales Expense Payments Subsidiaries ----------------- ------- ---------- ------------ ------------ Supply Corporation $ - $ 670 $ 26 $ 696 Highland 7,711 - 323 7,711 SECI - - - 323 ------- ------ ---- ------- $ 7,711 $ 670 $349 $ 8,730 ======= ====== ==== ======= ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS ------------------------------------------------- Receiving Company --------------------------------------------------------------------------------- Supply Corporation SECI Total ----------- ---- ----- Other $26 $323 $349 --- ---- ---- $26 $323 $349 === ==== ==== HORIZON LFG REPORT OF INTERCOMPANY SALES AND SERVICES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Total Services Rendered By Convenience Statutory Receiving Company Payments Clearing Subsidiaries ----------------- ----------- -------- ------------ Distribution Corp. $ 2 $ - $ 2 Supply Corp. - - - ---- --- ---- $ 2 $ - $ 2 ==== === ====
Part I. Intercompany sales and services (Continued) (2) Services rendered by Statutory Subsidiaries (Continued) EMPIRE STATE PIPELINE REPORT OF INTERCOMPANY SALES AND SERVICES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Total Services Rendered By Convenience Clearing Statutory Receiving Company Payments Charges Subsidiaries ----------------- ----------- -------- ------------ Empire LLC $ 18 $ - $ 18 Distribution Corporation 161 - 161 Supply Corporation 105 19 125 Highland Resources 23 - 23 Horizon Energy (37) - (37) NFR 4 - 4 ---- ---- ---- $275 $ 19 $294 ==== ==== ==== ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS ------------------------------------------------- Receiving Company -------------------------------------------------------- Empire Horizon LLC Dist Supply Highland Energy NFR Total ------ ---- ------ -------- ------- --- ----- Inventory $ - $ - $ - $ - $ - $ - $ - Material - - 12 - - - 12 Transportation - - - - - - - Utilities - - - - - - - Employee Benefits 1 - - - - - 1 O/E Fringe - - - - - - - Outside Services - 29 92 - - - 120 Office Employee Expense - 1 1 - - - 2 Other Expense 17 20 - 23 - 4 64 C/E Other - - - - - - - O/E Other - - - - - - - Other Insurance - 112 - - (37) - 75 Revenue - Gas Transportation - - - - - - - ---- ---- ---- --- ---- --- ---- $ 18 $161 $105 $23 $(37) $ 4 $275 ==== ==== ==== === ==== === ==== Analysis of Clearing Charges ---------------------------- Receiving Company ------------------------------------------------------- Empire Horizon LLC Dist. Supply Highland Energy NFR Total ------ ----- ------ -------- ------- --- ----- Inventory $ - $ - $19 $ - $ - $ - $ 19 --- --- --- --- --- --- ---- $ - $ - $19 $ - $ - $ - $ 19 === === === === === === ====
Part I. Intercompany sales and services (Continued) (2) Services rendered by Statutory Subsidiaries (Continued) TORO PARTNERS, LP REPORT OF INTERCOMPANY SALES AND SERVICES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Total Services Rendered By Convenience Statutory Receiving Company Payments Operation Subsidiaries ----------------- ----------- --------- ------------ Distribution Corp. $ 9 $ - $ 9 Horizon Energy 6 - 6 Toro Partners LLC 10 - 10 ---- --- ---- $ 25 $ - $ 25 ==== === ==== Analysis of Convenience or Accommodation Payments Receiving Company ------------------------------- Toro Dist. Horizon Partners LLC Total ----- ------- ------------ ----- Material $ - $ - $ - $ - Outside Services - 6 9 16 Office Employee Expense - - - - Other Expense 9 - - 9 --- --- --- ---- $ 9 $ 6 $10 $ 25 === === === ====
Part I. Intercompany sales and services (Continued) (2) Services rendered by Statutory Subsidiaries (Continued) HIGHLAND REPORT OF INTERCOMPANY SALES AND SERVICES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Total Services Rendered By Convenience Statutory Receiving Company Payments Operation Subsidiaries ----------------- ----------- --------- -------------- Seneca Resources $210 $ 67 $276 ---- ---- ---- $210 $ 67 $276 ==== ==== ==== DATA-TRACK REPORT OF INTERCOMPANY SALES AND SERVICES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Total Services Rendered by Collection Statutory Receiving Company Services Subsidiaries ----------------- ---------- ------------ Distribution Corporation $211 $211 NFR 6 6 ---- ---- $217 $217 ==== ==== TORO PARTNERS, LLC REPORT OF INTERCOMPANY SALES AND SERVICES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Total Services Rendered by Convenience Statutory Receiving Company Payments Operation Subsidiaries ----------------- ----------- --------- ------------- Distribution Corporation $ 1 $ - $ 1 ---- ---- ---- $ 1 $ - $ 1 ==== ==== ====
ITEM 8. SERVICE, SALES AND CONSTRUCTION CONTRACTS (Continued) Part I. Intercompany sales and services (Continued) (2) Services rendered by Statutory Subsidiaries (Continued) HORIZON REPORT OF INTERCOMPANY SALES AND SERVICES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Total Services Rendered By Convenience Direct Statutory Receiving Company Payments Charges Subsidiaries ----------------- ----------- ------- ------------ Horizon Power $ 2 $134 $137 Parent 57 - 57 Seneca Resources - - - Highland 6 - 6 Horizon LFG 13 150 162 SECI 1 - 1 ---- ---- ---- $ 78 $284 $362 ==== ==== ==== ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS ------------------------------------------------- Receiving Company --------------------------------------------------------- Horizon Seneca Horizon Power Parent Resources Highland LFG SECI Total ------- ------ --------- -------- -------- ---- ----- Material $ - $ - $ - $ - $ - $ - $ - Office Employee Expense 2 3 - 1 1 - 7 Outside Services - - - 5 - 1 6 Employee Benefits - 54 - - - - 54 General Accounting Adjustment - - - - 12 - 12 ---- ---- ---- --- ---- --- ---- $ 2 $ 57 $ - $ 6 $ 13 $ 1 $ 78 ==== ==== ==== === ==== === ==== Analysis of Direct Charges -------------------------- Receiving Company Horizon Seneca Horizon Power Parent Resources Highland LFG SECI Total ------- ------ --------- -------- ------- ---- ----- Executive $134 $ - $ - $ - $150 $ - $284 ---- --- --- --- ---- --- ---- $134 $ - $ - $ - $150 $ - $284 ==== === === === ==== === ====
ITEM 8. SERVICE, SALES AND CONSTRUCTION CONTRACTS (Continued) Part I. Intercompany sales and services (Continued) (2) Services rendered by Statutory Subsidiaries (Continued) HORIZON POWER INC. REPORT OF INTERCOMPANY SALES AND SERVICES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Total Services Rendered By Convenience Direct Statutory Receiving Company Payments Charges Subsidiaries ----------------- ----------- ------- ------------ Toro Partners, LLC $ 74 $ - $ 74 ---- --- ---- $ 74 $ - $ 74 ==== === ==== ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS ------------------------------------------------- Receiving Company ------------------------------------------------------- Toro Partners LLC Dist. Supply Highland NFR Total ------------ ----- ------ -------- --- ----- Material $ - $ - $ - $ - $ - $ - Transportation - - - - - - Outside Services 74 - - - - 74 Employee Benefits - - - - - - ---- ---- --- ---- ---- ---- $ 74 $ - $ - $ - $ - $ 74 ==== ==== === ==== ==== ==== EMPIRE STATE PIPELINE COMPANY LLC REPORT OF INTERCOMPANY SALES AND SERVICES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Total Services Rendered By Convenience Direct Statutory Receiving Company Payments Charges Subsidiaries ----------------- ----------- ------- ------------ Empire State Pipeline $ - $210 $210 Distribution Corp. - 1 1 Supply Corp. - - - Highland - - - Horizon Energy - - - NFR - - - ---- ---- ---- $ - $211 $211 ==== ==== ====
ITEM 8. SERVICE, SALES AND CONSTRUCTION CONTRACTS (Continued) Part I. Intercompany sales and services (Continued) (2) Services rendered by Statutory Subsidiaries (Continued) Analysis of Direct Charges -------------------------- Receiving Company ------------------------------------------------------ Empire State Pipeline Dist. Supply Highland NFR Total ------------ ----- ------ -------- --- ----- Executive $210 $ 1 $ - $ - $ - $211 ---- --- --- --- --- ---- $210 $ 1 $ - $ - $ - $211 ==== === === === === ==== NATIONAL FUEL GAS COMPANY REPORT OF INTERCOMPANY SALES AND SERVICES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Total Services Rendered By Convenience Clearing Statutory Receiving Company Payments Charges Subsidiaries ----------------- ----------- -------- ------------ Distribution $ - $2,263 $2,263 Supply - 222 222 Empire - 6 6 Horizon - 21 21 NFR - - - Seneca Resources - - - Highland - - - Horizon LFG - - - SIP - - - Leidy Hub - - - Data Track - - - ---- ------ ------ $ - $2,513 $2,513 ==== ====== ======
ITEM 8. SERVICE, SALES AND CONSTRUCTION CONTRACTS (Continued) Part I. Intercompany sales and services (Concluded) (2) Services rendered by Statutory Subsidiaries (Concluded) Analysis of Clearing Charges ---------------------------- Receiving Company ----------------------------------------------------------- Seneca Distribution Supply Empire Horizon NFR Resources ------------ ------ ------ ------- --- --------- Rent* $2,263 $222 $ 6 $21 $ - $ - ------ ---- --- --- --- --- $2,263 $222 $ 6 $21 $ - $ - ====== ==== === === === === Analysis of Clearing Charges ---------------------------- Receiving Company ------------------------------------------------------ Leidy Data Highland Horizon LFG SIP Hub Track Total -------- ----------- --- ----- ----- ----- Rent* $ - $ - $ - $ - $ - $2,513 --- --- --- --- --- ------ $ - $ - $ - $ - $ - $2,513 === === === === === ====== * NFGC allocates rent charges for its headquarters building among the occupants of the building, based on square footage occupied. (3) Services rendered by Registrant No services were rendered for a charge by the Registrant to any of its subsidiaries during the fiscal year ended September 30, 2004.
Part II. Contracts to purchase services or goods between any System company and any affiliate (other than a System company and other than as reported in Item 6) at September 30, 2004: None 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 $ 578,941 consulting services for Highland. Evans Operating Performs production management $3,427,372 Company, LLP services for Seneca Resources with respect to Gulf of Mexico properties.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.
(b) Horizon owns 100% of the capital stock of HEHI, which investment was valued at $184,582,000 as of September 30, 2004. HEHI owns 100% of the capital stock of HEDBV, which investment was valued at $185,042,000 as of September 30, 2004. HEDBV owns 85.16% of the capital stock of UE, and such investment was valued at $183,614,000 as of September 30, 2004. UE owns 70% of the capital stock of TL, and such investment was valued at $11,805,000 as of September 30, 2004. The financial statements of Horizon and its subsidiaries are found on pages 89 through 113 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 5.37% as of September 30, 2004. TL had no debt outstanding at September 30, 2004. UE recorded income of $12,673,000 for the twelve months ended September 30, 2004 (net of minority interest) and TL incurred a loss of $641,000 for the twelve months ended September 30, 2004 (net of minority interest). The financial statements of UE and TL are found on pages 89 through 113 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. 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.
B. Interests in Exempt Wholesale Generators 1. Horizon Power, Inc. (a) Horizon Power, Inc. (Power) 6363 Main Street Williamsville, New York 14221 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 at a site near Seneca Falls, New York, where it generates electricity using methane gas obtained from a landfill. During fiscal 2004, Seneca Energy completed development of facilities with a generating capacity of approximately 3.2 MW at a landfill site in Ontario County, New York. Model City has a generating capacity of approximately 5.6 MW and generates electricity using methane gas obtained from a landfill near Lewiston, New York. The landfills are owned by outside parties. Seneca Energy and Model City sell 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). 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 TL, UE, Power and ESNE to system companies are provided as Exhibits G-1, and G-2 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).
NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES INDEX TO FINANCIAL STATEMENTS SEPTEMBER 30, 2004 Page National Fuel Gas Company and Subsidiaries: Report of Independent Accountants 44 Consolidating and Consolidated Balance Sheet at September 30, 2004 45-48 Consolidating and Consolidated Statement of Income for the Fiscal Year Ended September 30, 2004 49-50 Consolidating and Consolidated Statement of Earnings Reinvested in the Business for the Fiscal Year Ended September 30, 2004 51-52 Consolidating and Consolidated Statement of Comprehensive Income for the Fiscal Year Ended September 30, 2004 53-54 Consolidating and Consolidated Statement of Cash Flows for the Fiscal Year Ended September 30, 2004 55-58 Seneca Resources Corporation: Consolidating Balance Sheet at September 30, 2004 59 Consolidating Statement of Income for the Fiscal Year Ended September 30, 2004 60 Consolidating Statement of Earnings Reinvested in the Business for the Fiscal Year Ended September 30, 2004 61 Consolidating Statement of Comprehensive Income for the Fiscal Year Ended September 30, 2004 62 Consolidating Statement of Cash Flows for the Fiscal Year Ended September 30, 2004 63 Seneca Energy Canada, Inc.: Consolidating Balance Sheet at September 30, 2004 64 Consolidating Statement of Income for the Fiscal Year Ended September 30, 2004 65 Consolidating Statement of Earnings Reinvested in the Business for the Fiscal Year Ended September 30, 2004 66 Consolidating Statement of Comprehensive Income for the Fiscal Year Ended September 30, 2004 67 Consolidating Statement of Cash Flows for the Fiscal Year Ended September 30, 2004 68 Highland Forest Resources, Inc.: Consolidating Balance Sheet at September 30, 2004 69 Consolidating Statement of Income for the Fiscal Year Ended September 30, 2004 70 Consolidating Statement of Earnings Reinvested in the Business for the Fiscal Year Ended September 30, 2004 71 Consolidating Statement of Comprehensive Income for the Fiscal Year Ended September 30, 2004 72 Consolidating Statement of Cash Flows for the Fiscal Year Ended September 30, 2004 73 Horizon LFG, Inc.: Consolidating Balance Sheet at September 30, 2004 74 Consolidating Statement of Income for the Fiscal Year Ended September 30, 2004 75 Consolidating Statement of Earnings Reinvested in the Business for the Fiscal Year Ended September 30, 2004 76 Consolidating Statement of Comprehensive Income for the Fiscal Year Ended September 30, 2004 77 Consolidating Statement of Cash Flows for the Fiscal Year Ended September 30, 2004 78
NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES INDEX TO FINANCIAL STATEMENTS SEPTEMBER 30, 2004 Page Toro Partners, LP: Consolidating Balance Sheet at September 30, 2004 79-80 Consolidating Statement of Income for the Fiscal Year Ended September 30, 2004 81-82 Consolidating Statement of Earnings Reinvested in the Business for the Fiscal Year Ended September 30, 2004 83-84 Consolidating Statement of Comprehensive Income for the Fiscal Year Ended September 30, 2004 85-86 Consolidating Statement of Cash Flows for the Fiscal Year Ended September 30, 2004 87-88 Horizon Energy Development, Inc. and Subsidiaries: Consolidating Balance Sheet at September 30, 2004 89 Consolidating Statement of Income for the Fiscal Year Ended September 30, 2004 90 Consolidating Statement of Earnings Reinvested in the Business for the Fiscal Year Ended September 30, 2004 91 Consolidating Statement of Comprehensive Income for the Fiscal Year Ended September 30, 2004 92 Consolidating Statement of Cash Flows for the Fiscal Year Ended September 30, 2004 93 Horizon Energy Holdings, Inc.: Consolidating Balance Sheet at September 30, 2004 94 Consolidating Statement of Income for the Fiscal Year Ended September 30, 2004 95 Consolidating Statement of Earnings Reinvested in the Business for the Fiscal Year Ended September 30, 2004 96 Consolidating Statement of Comprehensive Income for the Fiscal Year Ended September 30, 2004 97 Consolidating Statement of Cash Flows for the Fiscal Year Ended September 30, 2004 98 Horizon Energy Development B.V.: Consolidating Balance Sheet at September 30, 2004 99 Consolidating Statement of Income for the Fiscal Year Ended September 30, 2004 100 Consolidating Statement of Earnings Reinvested in the Business for the Fiscal Year Ended September 30, 2004 101 Consolidating Statement of Comprehensive Income for the Fiscal Year Ended September 30, 2004 102 Consolidating Statement of Cash Flows for the Fiscal Year Ended September 30, 2004 103 United Energy, a.s.: Consolidating Balance Sheet at September 30, 2004 104 Consolidating Statement of Income for the Fiscal Year Ended September 30, 2004 105 Consolidating Statement of Earnings Reinvested in the Business for the Fiscal Year Ended September 30, 2004 106 Consolidating Statement of Comprehensive Income for the Fiscal Year Ended September 30, 2004 107 Consolidating Statement of Cash Flows for the Fiscal Year Ended September 30, 2004 108
NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES INDEX TO FINANCIAL STATEMENTS SEPTEMBER 30, 2004 Page Horizon Energy Bulgaria, Ltd.: Consolidating Balance Sheet at September 30, 2004 109 Consolidating Statement of Income for the Fiscal Year Ended September 30, 2004 110 Consolidating Statement of Earnings Reinvested in the Business for the Fiscal Year Ended September 30, 2004 111 Consolidating Statement of Comprehensive Income for the Fiscal Year Ended September 30, 2004 112 Consolidating Statement of Cash Flows for the Fiscal Year Ended September 30, 2004 113 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, 2004, are incorporated herein by reference.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors
and Shareholders of
Natinal Fuel Gas Company
In our opinion, the consolidated financial statements listed in the index appearing under Item 10 on Pages 41 through 43 present fairly, in all material respects, the financial position of National Fuel Gas Company and its subsidiaries at September 30, 2004, 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 tatements are the responsibility of the Companys 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 the standards of the Public Company Accounting Oversight Board (United States). Those standards 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 45 through 113 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 45 through 113 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
December 9, 2004
NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES CONSOLIDATING BALANCE SHEET AT SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Horizon National National Seneca Highland Data-Track National Energy Horizon Seneca Niagara National Fuel Gas Fuel Gas Resources Leidy Forest Account Fuel Development, LFG, Indep. Independence Horizon Total Before Eliminations Consolidated Fuel Gas Distribution Supply Corporation Hub, Resources, Inc. Services, Resources, Inc. Inc. Pipeline Marketing, Power, Eliminations & Adjustments Company and Company Corp. Corp. (Consolidated) Inc. (Consolidated) Inc. Inc. (Consolidated)(Consolidated) Company Inc. Inc. & Adjustments Dr (Cr) Subsidiaries ------------ ----------- ----------- -------------- -------- -------------- ---------- ----------- -------------- ------------- -------- ----------- -------- ------------- ------------- ------------ ASSETS PROPERTY, PLANT & EQUIPMENT $ 6,698 $ 1,439,483 $ 851,483 $ 1,558,927 $ - $ 313,960 $ 86 $ 1,170 $ 408,778 $ 15,180 $ - $ - $ 7,014 $ 4,602,779 $ - $ 4,602,779 Less: Accumulated Depreciation, Depletion and Amortization 575 391,055 357,484 622,960 - 40,871 84 1,090 180,873 902 - - 121 1,596,015 - 1,596,015 ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 6,123 1,048,428 493,999 935,967 - 273,089 2 80 227,905 14,278 - - 6,893 3,006,764 - 3,006,764 ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- CURRENT ASSETS: Cash and Temporary Cash Investments 339 5,085 1,669 16,423 13 2,128 212 9,267 28,357 1,879 - - 387 65,759 394 66,153 Notes Receivable -Intercompany 285,300 - - 72,100 200 - 500 22,800 300 - - - - 381,200 (381,200) - Allowance for Uncollectible Accounts - (12,903) (611) (517) - - - (1,225) (2,184) - - - - (17,440) - (17,440) Accounts Receivable -Intercompany 21,019 6,632 13,348 4,846 - 277 65 3,294 57 543 - - 8 50,089 (50,089) - Accounts Receivable 230 86,352 8,136 27,313 - 5,221 2 9,436 8,592 1,940 - - 43 147,265 - 147,265 Unbilled Utility Revenue - 18,574 - - - - - - - - - - - 18,574 - 18,574 Dividends Receivable -Intercompany 22,750 - - 779 - - - - - - - - - 23,529 (23,529) - Materials and Supplies - at average cost - 7,016 8,160 795 - 25,396 - 3 4,079 - - - - 45,449 (1,527) 43,922 Gas Stored Underground - 46,586 - - - - - 21,925 - - - - - 68,511 - 68,511 Unrecovered Purchased Gas Costs - 7,532 - - - - - - - - - - - 7,532 - 7,532 Fair Value of Derivative Financial Instruments - - 23 - - - - - - - - - - 23 - 23 Prepayments 358 25,854 3,862 4,333 - 3,204 3 277 722 76 - - 72 38,761 (1) 38,760 ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 329,996 190,728 34,587 126,072 213 36,226 782 65,777 39,923 4,438 - - 510 829,252 (455,952) 373,300 ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- OTHER ASSETS: Recoverable Future Taxes - 75,068 4,946 - - 3,833 - - - - - - - 83,847 - 83,847 Unamortized Debt Expense 9,410 5,746 5,854 - - 281 - - - - - - - 21,291 (1,718) 19,573 Other Regulatory Assets - 57,141 6,898 - - 2,823 - - - - - - - 66,862 - 66,862 Deferred Charges 1,843 637 1,444 442 - 415 - 113 6 - - - - 4,900 (1,489) 3,411 Other Investments 41,676 - - - - - - - - - - - - 41,676 30,880 72,556 Investment in Unconsolidated Subsidiaries - - - - - - - - - - - - 16,444 16,444 - 16,444 Goodwill - - - - - 5,476 - - - - - - - 5,476 - 5,476 Investment in Associated Companies 1,225,680 - 61 19,035 - - - - - - - - - 1,244,776 (1,244,776) - Notes Receivable - Intercompany 1,096,272 - - - - - - - - - - - - 1,096,272 (1,096,272) - Intangible Assets 9,171 - - - - 6,799 - - - 30,024 - - - 45,994 - 45,994 Other - 12,612 575 2,966 - 1,134 - - 284 - - - - 17,571 - 17,571 ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 2,384,052 151,204 19,778 22,443 - 20,761 - 113 290 30,024 - - 16,444 2,645,109 (2,313,375) 331,734 ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 2,720,171 1,390,360 548,364 1,084,482 213 330,076 784 65,970 268,118 48,740 - - 23,847 6,481,125 (2,769,327) 3,711,798 ============ =========== =========== ============ =========== =========== ============ =========== =========== =========== =========== =========== =========== =========== =========== =========== 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, 2004, incorporated herein by reference.
NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES CONSOLIDATING BALANCE SHEET AT SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Horizon National National Seneca Highland Data-Track National Energy Horizon Seneca Niagara National Fuel Gas Fuel Gas Resources Leidy Forest Account Fuel Development, LFG, Indep. Independence Horizon Total Before Eliminations Consolidated Fuel Gas Distribution Supply Corporation Hub, Resources, Inc. Services, Resources, Inc. Inc. Pipeline Marketing, Power, Eliminations & Adjustments Company and Company Corp. Corp. (Consolidated) Inc. (Consolidated) Inc. Inc. (Consolidated)(Consolidated) Company Inc. Inc. & Adjustments Dr (Cr) Subsidiaries ------------ ----------- ----------- ------------- ------ -------------- ----------- ----------- ------------ ------------ -------- ----------- --------- ------------- ------------ ------------ CAPITALIZATION AND LIABILITIES CAPITALIZATION: Common Stock $1 Par Value; Authorized - 200,000,000 Shares; Issued and Outstanding - 82,990,340 Shares $ 82,990 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 82,990 $ - $ 82,990 Capital Stock of Subsidiaries - 59,170 25,345 500 4 4 1 10 5 1 - - 1 85,041 (85,041) - Paid in Capital 506,560 121,668 35,894 104,035 665 22,039 499 33,490 38,246 6,800 - - 5,020 874,916 (368,356) 506,560 Earnings Reinvested in the Business 718,926 377,792 275,067 18,192 (621) 115,890 263 12,347 (17,227) (3,979) - - (425) 1,496,225 (777,299) 718,926 ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Total Common Shareholder Equity Before Items of Other Comprehensive Income 1,308,476 558,630 336,306 122,727 48 137,933 763 45,847 21,024 2,822 - - 4,596 2,539,172 (1,230,696) 1,308,476 Accumulated Other Comprehensive Income (Loss) (54,775) - 208 (35,590) - 1,495 - (3,048) 35,811 (4,094) - - - (59,993) 5,218 (54,775) ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Total Comprehensive Shareholders' Equity 1,253,701 558,630 336,514 87,137 48 139,428 763 42,799 56,835 (1,272) - - 4,596 2,479,179 (1,225,478) 1,253,701 Long-Term Debt, Net of Current Portion 1,096,272 18 - - - 32,100 - - 4,927 - - - - 1,133,317 - 1,133,317 Notes Payable - Intercompany - 218,310 39,770 688,422 - 60,000 - - 89,770 - - - - 1,096,272 (1,096,272) - ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Total Capitalization 2,349,973 776,958 376,284 775,559 48 231,528 763 42,799 151,532 (1,272) - - 4,596 4,708,768 (2,321,750) 2,387,018 ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Minority Interest in Foreign Subsidiaries - - - - - - - - 37,048 - - - - 37,048 - 37,048 ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- CURRENT AND ACCRUED LIABILITIES: Notes Payable to Banks and Commercial Paper 156,800 - - - - - - - - - - - - 156,800 - 156,800 Notes Payable - Intercompany 95,900 145,100 33,200 - - 11,600 - - 34,700 43,500 - - 17,200 381,200 (381,200) - Current Portion of Long-Term Debt - - - - - 9,333 - - 4,927 - - - - 14,260 - 14,260 Accounts Payable 187 37,580 11,696 36,083 - 11,482 14 5,218 13,186 1,246 - - 130 116,822 (843) 115,979 Accounts Payable to Customers - 3,154 - - - - - - - - - - - 3,154 - 3,154 Accounts Payable - Intercompany 5,216 15,982 4,482 17,902 39 2,477 64 4,774 3,565 392 - - 344 55,237 (55,237) - Dividends Payable - Intercompany - 9,100 6,750 4,529 - 1,200 - 1,950 - - - - - 23,529 (23,529) - Fair Value of Derivative Financial Instruments - - - 82,487 - 2,204 - 3,647 - 6,761 - - - 95,099 - 95,099 Other Accruals and Current Liabilities 43,138 26,442 6,434 (258) (17) 2,532 (5) 10,329 2,539 (1,028) - - (36) 90,070 1,094 91,164 ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 301,241 237,358 62,562 140,743 22 40,828 73 25,918 58,917 50,871 - - 17,638 936,171 (459,715) 476,456 ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- DEFERRED CREDITS: Accumulated Deferred Income Taxes (28,556) 200,015 81,880 133,159 144 57,183 (65) (3,148) 17,526 (860) - - 799 458,077 18 458,095 Taxes Refundable to Customers - 13,741 (2,676) - - - - - - - - - - 11,065 - 11,065 Unamortized Investment Tax Credit - 7,280 218 - - - - - - - - - - 7,498 - 7,498 Cost of Removal Regulatory Liab - 59,944 22,076 - - - - - - - - - - 82,020 - 82,020 Other Regulatory Liabs - 67,116 553 - - - - - - - - - - 67,669 - 67,669 Pension Liability 91,586 - - - - 1 - - - - - - - 91,587 - 91,587 Asset Retirement Obligation - - - 32,292 - - - - - - - - - 32,292 - 32,292 Other Deferred Credits 5,927 27,948 7,467 2,729 (1) 536 13 401 3,095 1 - - 814 48,930 12,120 61,050 ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 68,957 376,044 109,518 168,180 143 57,720 (52) (2,747) 20,621 (859) - - 1,613 799,138 12,138 811,276 ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- $ 2,720,171 $ 1,390,360 $ 548,364 $ 1,084,482 $ 213 $ 330,076 $ 784 $ 65,970 $ 268,118 $ 48,740 $ - $ - $ 23,847 $ 6,481,125 $ (2,769,327) $ 3,711,798 ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 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, 2004, incorporated herein by reference.
NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES CONSOLIDATING STATEMENT OF INCOME FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Horizon National National Seneca Highland Data-Track National Energy Horizon Seneca Niagara National Fuel Gas Fuel Gas Resources Leidy Forest Account Fuel Development, LFG, Indep. Independence Horizon Total Before Eliminations Consolidated Fuel Gas Distribution Supply Corporation Hub, Resources, Inc. Services, Resources, Inc. Inc. Pipeline Marketing, Power, Eliminations & Adjustments Company and Company Corp. Corp. (Consolidated) Inc. (Consolidated) Inc. Inc. (Consolidated)(Consolidated) Company Inc. Inc. & Adjustments Dr (Cr) Subsidiaries ------------ ----------- ----------- -------------- ------ -------------- ------------ ----------- ------------- ------------- -------- ----------- --------- ------------- ----------- ------------ OPERATING REVENUE: $ 2,512 $ 1,152,641 $ 176,284 $ 301,784 $ - $ 89,019 $ 212 $ 284,349 $ 123,425 $ 13,237 $ - $ - $ 247 $ 2,143,710 $ (112,317) $ 2,031,393 ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- OPERATING EXPENSE: Purchased Gas - 774,498 (588) 12 - - - 271,223 - 5,992 - - - 1,051,137 (101,685) 949,452 Fuel Used in Heat and Electric Generation - - - - - - - (1) 65,723 - - - - 65,722 - 65,722 Operation and Maintenance 7,393 194,043 63,347 73,023 8 47,309 206 3,892 32,484 2,871 20 1 1,107 425,704 (12,111) 413,593 Property, Franchise & Other Taxes (86) 46,357 11,280 5,580 - 5,365 - 385 3,157 50 - - 23 72,111 - 72,111 Impairment of Oil & Gas Producing Properties - - - - - - - - - - - - - - - - Depreciation, Depletion and Amortization 442 39,101 25,890 90,273 - 17,400 5 102 15,257 1,051 - - 14 189,535 3 189,538 ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 7,749 1,053,999 99,929 168,888 8 70,074 211 275,601 116,621 9,964 20 1 1,144 1,804,209 (113,793) 1,690,416 ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Gain on Sale of Timber Properties - - - - - (1,252) - - - - - - - (1,252) - (1,252) Loss on Sale of Oil & Gas Producing Properties - - - 4,645 - - - - - - - - - 4,645 - 4,645 ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Operating Income (Loss) (5,237) 98,642 76,355 137,541 (8) 17,693 1 8,748 6,804 3,273 (20) (1) (897) 342,894 1,476 344,370 ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- OTHER INCOME (EXPENSE): Income from Unconsolidated - - - - - - - - - - - - 805 805 - 805 Subsidiaries Unremitted Earnings/(Loss) of Subsidiaries 86,777 - - - - - - - - - - - - 86,777 (86,777) - Dividends from Subsidiaries 82,500 - - 2,466 - - - - - - - - - 84,966 (84,966) - Interest-Intercompany 83,346 - 114 1,573 8 - 6 459 4 - - - - 85,510 (85,510) - Other Income 1,214 1,414 452 361 - 321 - 325 2,051 29 261 - 64 6,492 179 6,671 Interest on Long-Term Debt (80,670) - - - - (2,320) - - (837) - - - - (83,827) - (83,827) Interest-Intercompany (1,174) (18,016) (5,957) (49,953) - (3,864) - - (5,891) (595) (60) - - (85,510) 85,510 - Other Interest (697) (3,929) (913) (688) - (35) - (32) (352) (58) - - (268) (6,972) 209 (6,763) ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Income (Loss) Before Income Taxes and Minority Interest in Foreign Subsidiaries 166,059 78,111 70,051 91,300 - 11,795 7 9,500 1,779 2,649 181 (1) (296) 431,135 (169,879) 261,256 ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Income Taxes (527) 31,393 28,208 30,868 (7) 4,036 - 3,964 (6,137) 837 63 - - 92,698 39 92,737 Minority Interest in Foreign Subsidiaries - - - - - - - - (1,933) - - - - (1,933) - (1,933) ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Income/(Loss) Before Cumulative Effect 166,586 46,718 41,843 60,432 7 7,759 7 5,536 5,983 1,812 118 (1) (296) 336,504 (169,918) 166,586 ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Cumulative Effect of Change in Accounting - - - - - - - - - - - - - - - - ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Net Income (Loss) Available for Common Stock $ 166,586 $ 46,718 $ 41,843 $ 60,432 $ 7 $ 7,759 $ 7 $ 5,536 $ 5,983 $ 1,812 $ 118 $ (1) $ (296) $ 336,504 $ (169,918) $ 166,586 ============ =========== =========== ============ =========== =========== ============ =========== =========== =========== =========== =========== =========== =========== =========== =========== 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, 2004, Income Before Cumulative Effect of Changes in Accounting $ 2.03 incorporated herein by reference. Cumulative Effect of Changes in Accounting $ - ----------- Net Income Available for Common Stock $ 2.03 =========== Diluted Earnings Per Common Share Income Before Cumulative Effect of Changes in Accounting $ 2.01 Cumulative Effect of Changes in Accounting $ - ----------- Net Income Available for Common Stock $ 2.01 =========== Weighted Average Common Shares Outstanding Used in Basic Calculation 82,045,535 =========== Used in Diluted Calculation 82,900,438 ===========
NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES CONSOLIDATING STATEMENT OF EARNINGS REINVESTED IN THE BUSINESS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Horizon National National Seneca Highland Data-Track National Energy Horizon Seneca Niagara National Fuel Gas Fuel Gas Resources Leidy Forest Account Fuel Development, LFG, Indep. Independence Horizon Total Before Eliminations Consolidated Fuel Gas Distribution Supply Corporation Hub, Resources, Inc. Services, Resources, Inc. Inc. Pipeline Marketing, Power, Eliminations & Adjustments Company and Company Corp. Corp. (Consolidated) Inc. (Consolidated) Inc. Inc. (Consolidated)(Consolidated) Company Inc. Inc. & Adjustments Dr (Cr) Subsidiaries ------------ ----------- ----------- ------------ ------ -------------- ----------- ---------- ------------ ------------ --------- ----------- ----------- ------------- ------------- ------------ EARNINGS REINVESTED IN THE BUSINESS Balance at Beginning of Year $ 642,690 $ 367,474 $ 259,724 $ (28,273) $ (628) $ 111,931 $ 256 $ 11,111 $ (23,210) $ (5,791) $ (9,778) $ - $ (129) $ 1,325,377 $ (682,687) $ 642,690 Net Income (Loss) Available for Common Stock 166,586 46,718 41,843 60,432 7 7,759 7 5,536 5,983 1,812 118 (1) (296) 336,504 (169,918) 166,586 Distribution of (Earnings)/Loss due to dissolution of the company - - - - - - - - - - 9,660 1 - 9,661 (9,661) - Dividends on Common Stock (2004 - $1.10 per share) (90,350) (36,400) (26,500) (13,967) - (3,800) - (4,300) - - - - - (175,317) 84,967 (90,350) ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Balance at End of Year $ 718,926 $ 377,792 $ 275,067 $ 18,192 $ (621) $ 115,890 $ 263 $ 12,347 $ (17,227) $ (3,979) $ - $ - $ (425) $ 1,496,225 $ (777,299) $ 718,926 ============ =========== =========== ============ =========== =========== ============ =========== =========== =========== =========== =========== =========== =========== =========== =========== At September 30, 2004 ANALYSIS OF INVESTMENTS IN ASSOCIATED COMPANIES AT SEPTEMBER 30, 2004 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 789,469 Distribution Earnings Reinvested in the Business Corporation $ 59,170 $ 121,668 $ 4,636 $ 373,156 $ - $ 558,630 of Subsidiaries at Acquisition 7,095 Supply Corporation 25,345 35,833 2,453 272,614 208 336,453 Consolidating Adjustment (19,265) Seneca Resources 500 104,035 6 18,186 (35,590) 87,137 ----------- $ 777,299 Leidy Hub 4 665 - (621) - 48 =========== Highland 4 3,004 - 115,890 1,495 120,393 Data-Track 1 499 - 263 - 763 Net Income Available for Common Stock: NFR 10 33,490 - 12,347 (3,048) 42,799 Subsidiaries-Dividends on Horizon 5 38,246 - (17,227) 35,811 56,835 Common Stock 84,967 Horizon LFG 1 6,800 - (3,979) (4,094) (1,272) Unremitted Earnings of Subsidiaries 86,777 Seneca Independence - - - - - - Consolidating Adjustment (1,826) Niagara Independence - - - - - - ----------- 169,918 Horizon Power, Inc. 1 5,020 - (425) - 4,596 =========== Consolidating Adjustment - - - 19,265 33 19,298 ----------- ----------- ----------- ----------- ----------- ----------- 85,041 349,260 7,095 789,469 (5,185) 1,225,680 See Notes to Consolidated Financial Statements included in Item 8 of National Seneca Corporation: Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2004, Highland - 19,035 - - - 19,035 incorporated herein by reference. Supply Corporation: Seneca Resources - 61 - - - 61 ----------- ----------- ----------- ----------- ----------- ----------- $ 85,041 $ 368,356 $ 7,095 $ 789,469 $ (5,185) $ 1,244,776 =========== =========== =========== =========== =========== ===========
NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Horizon National National Seneca Highland Data-Track National Energy Horizon Seneca Niagara National Fuel Gas Fuel Gas Resources Leidy Forest Account Fuel Development, LFG, Indep. Independence Horizon Total Before Eliminations Consolidated Fuel Gas Distribution Supply Corporation Hub, Resources, Inc. Services, Resources, Inc. Inc. Pipeline Marketing, Power, Eliminations & Adjustments Company and Company Corp. Corp. (Consolidated) Inc. (Consolidated) Inc. Inc. (Consolidated)(Consolidated) Company Inc. Inc. & Adjustments Dr (Cr) Subsidiaries ------------ ----------- ----------- ------------ ------ -------------- ---------- ----------- ------------- ------------- ---------- ----------- ----------- ----------- ------------- ------------- Net Income (Loss) Available for Common Stock $ 166,586 $ 46,718 $ 41,843 $ 60,432 $ 7 $ 7,759 $ 7 $ 5,536 $ 5,983 $ 1,812 $ 118 $ (1) $ (296) $ 336,504 $ (169,918) $ 166,586 Other Comprehensive Income (Loss), Before Tax: Minimum Pension Liability Adj. 56,612 - - - - - - - - - - - - 56,612 - 56,612 Foreign Currency Translation Adjustment 21,466 - - 7,477 - - - - 13,989 - - - - 42,932 (21,466) 21,466 Unrealized Gain on Securities Available for Sale Arising During the Period 3,629 - - - - - - - - - - - - 3,629 - 3,629 Unrealized Gain / (Loss) on Derivative Financial Instruments Arising During the Period (129,934) - (1,230) (113,792) - (693) - (6,107) - (8,111) - - - (259,867) 129,933 (129,934) Reclassification Adjustment for Realized (Gain)/Loss on Derivative Financial Instruments in Net Income 49,142 - 1,373 44,707 - 1,964 - 1,171 - (73) - - - 98,284 (49,142) 49,142 ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Other Comprehensive Income (Loss), Before Tax 915 - 143 (61,608) - 1,271 - (4,936) 13,989 (8,184) - - - (58,410) 59,325 915 Income Tax Benefit Related to Minimum Pension Liability 19,814 - - - - - - - - - - - - 19,814 - 19,814 Income Tax Expense/(Benefit) Related to Unrealized Gain/(Loss) on Securities Available for Sale Arising During the Period 1,270 - - - - - - - - - - - - 1,270 - 1,270 Income Tax Expense/(Benefit) Related to Unrealized Gain/(Loss) on Derivative Financial Instruments Arising During the Period (49,113) - (505) (43,226) - - - (2,464) - (2,918) - - - (98,226) 49,113 (49,113) Reclassification Adjustment for for Realized (Gain)/Loss on Derivative Financial Instruments in Net Income 18,182 - 563 16,983 - - - 472 - 164 - - - 36,364 (18,182) 18,182 ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Income Taxes - Net (9,847) - 58 (26,243) - - - (1,992) - (2,754) - - - (40,778) 30,931 (9,847) ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Other Comprehensive Income/ (Loss) 10,762 - 85 (35,365) - 1,271 - (2,944) 13,989 (5,430) - - - (17,632) 28,394 10,762 ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Comprehensive Income (Loss) $ 177,348 $ 46,718 $ 41,928 $ 25,067 $ 7 $ 9,030 $ 7 $ 2,592 $ 19,972 $ (3,618) $ 118 $ (1) $ (296) $ 318,872 $ (141,524) $ 177,348 ============ =========== =========== ============ =========== =========== ============ =========== =========== =========== =========== =========== =========== =========== =========== =========== 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, 2004, incorporated herein by reference.
NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Horizon National National Seneca Highland Data-Track National Energy Horizon Seneca Niagara National Fuel Gas Fuel Gas Resources Leidy Forest Account Fuel Development, LFG, Indep. Independence Horizon Total Before Eliminations Consolidated Fuel Gas Distribution Supply Corporation Hub, Resources, Inc. Services, Resources, Inc. Inc. Pipeline Marketing, Power, Eliminations & Adjustments Company and Company Corp. Corp. (Consolidated) Inc. (Consolidated) Inc. Inc. (Consolidated)(Consolidated) Company Inc. Inc. & Adjustments Dr (Cr) Subsidiaries ----------- ----------- ----------- ----------- ----------- ------------- ---------- ----------- ------------- ------------ --------- ----------- ---------- ------------- ------------ ------------ OPERATING ACTIVITIES: Net Income (Loss) Available for Common Stock $ 166,586 $ 46,718 $ 41,843 $ 60,432 $ 7 $ 7,759 $ 7 $ 5,536 $ 5,983 $ 1,812 $ 118 $ (1) $ (296) $ 336,504 $ (169,918) $ 166,586 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Gain on Sale of Timber Property - - - - - 1,252 - - - - - - - 1,252 - 1,252 Loss on Sale of Oil & Gas Prop. - - - (4,645) - - - - - - - - - (4,645) - (4,645) Unremitted (Earnings)/Loss of Subsidiaries (86,777) - - - - - - - - - - - - (86,777) 86,777 - Depreciation, Depletion and Amortization 442 39,101 25,890 90,273 - 17,400 5 102 15,257 1,051 - - 14 189,535 3 189,538 Deferred Income Taxes 493 13,151 5,582 25,674 12 (3,114) (3) 917 (4,703) 1,733 91 - 496 40,329 - 40,329 (Income) Loss from Unconsolidated Subsidiaries, Net of Cash Distributions - - - - - - - - - - - - (19) (19) - (19) Minority Interest in Foreign Subsidiaries - - - - - - - - 1,933 - - - - 1,933 - 1,933 Other 1,336 (44) (1,655) 2,404 - 1,173 - - (420) 1,498 - - - 4,292 5,547 9,839 Change in: Receivables and Unbilled Utility Revenue 159 6,847 1,581 (3) - (155) - (1,827) (883) (900) - - 21 4,840 - 4,840 Accounts Receivable- Intercompany (2,857) 720 3,414 (1,290) - 262 (5) (3,139) (35) (364) - - 4 (3,290) 3,290 - Gas Stored Underground and Material and Supplies - 27,777 166 298 - (11,050) - (7,273) (25) - - - - 9,893 (33) 9,860 Unrecovered Purchased Gas Costs - 21,160 - - - - - - - - - - - 21,160 - 21,160 Prepayments (43) 4,662 2,140 1,378 - 921 - (164) (610) (76) - - (62) 8,146 - 8,146 Accounts Payable 27 (15,068) (1,558) 1,765 - 7,293 - (897) (1,632) 1,013 - - (254) (9,311) 4,177 (5,134) Amounts Payable to Customers - 2,462 - - - - - - - - - - - 2,462 - 2,462 Accounts Payable-Intercompany 3,972 3,195 2,414 1,265 2 (178) 7 5,707 935 240 (17) - 240 17,782 (17,782) - Other Accruals and Current Liabilities (3,260) 12,496 (217) 19,307 (25) (631) 3 5,518 1,489 (1,020) 3,972 - 1,039 38,671 47 38,718 Other Assets (15,456) (15,443) (4,176) (2,906) 1 (760) - 2,562 102 1,155 8 - - (34,913) 24,220 (10,693) Other Liabilities (2,744) (2,851) (414) (477) (1) (905) - (2,394) 106 (2,273) - - 749 (11,204) (18,668) (29,872) ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ---------- ---------- ---------- ----------- Net Cash Provided by (Used in) Operating Activities $ 61,878 $ 144,883 $ 75,010 $ 193,475 $ (4) $ 19,267 $ 14 $ 4,648 $ 17,497 $ 3,869 $ 4,172 $ (1) $ 1,932 $ 526,640 $ (82,340) $ 444,300 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ---------- ---------- ---------- ----------- 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, 2004, incorporated herein by reference.
NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Horizon National National Seneca Highland Data-Track National Energy Horizon Seneca Niagara National Fuel Gas Fuel Gas Resources Leidy Forest Account Fuel Development, LFG, Indep. Independence Horizon Total Before Eliminations Consolidated Fuel Gas Distribution Supply Corporation Hub, Resources, Inc. Services, Resources, Inc. Inc. Pipeline Marketing, Power, Eliminations & Adjustments Company and Company Corp. Corp. (Consolidated) Inc. (Consolidated) Inc. Inc. (Consolidated)(Consolidated) Company Inc. Inc. & Adjustments Dr (Cr) Subsidiaries ----------- ----------- ---------- ------------ -------- --------------- ----------- ----------- ------------ ------------- --------- ----------- ---------- ---------- ------------- ------------ INVESTING ACTIVITIES: Capital Expenditures $ (5,511) $ (55,449) $ (23,025) $ (77,721) $ - $ (2,927) $ - $ (11) $ (7,498) $ (197) $ - $ - $ (2) $ (172,341) $ - $ (172,341) Capital Contributions (9,481) - - - (700) - - - - - 10,181 - - - - - Change in Notes Receivable - Intercompany 162,828 - 13,100 (72,100) 600 - - 5,300 300 - - - - 110,028 (110,028) - Net Proceeds from Sale of Oil & Gas Properties - - - 7,162 - - - - - - - - - 7,162 - 7,162 Other 830 (278) 3,582 (1,083) - 232 - - 1,011 - - - - 4,294 (2,320) 1,974 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ---------- ---------- ---------- ----------- Net Cash Provided by (Used In) Investing Activities 148,666 (55,727) (6,343) (143,742) (100) (2,695) - 5,289 (6,187) (197) 10,181 - (2) (50,857) (112,348) (163,205) ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ---------- ---------- ---------- ----------- FINANCING ACTIVITIES: Change in Notes Payable to Banks and Commercial Paper 38,600 - - - - - - - - - - - - 38,600 - 38,600 Change in Notes Payable-Intercompany 35,500 (47,900) (41,800) (32,828) - (7,200) - - 5,000 (4,800) (14,400) - (1,600) (110,028) 110,028 - Net Proceeds from Issuance of Long-Term Debt - - - - - - - - - - - - - - - - Reduction of Long-Term Debt (225,128) (84) - - - (9,333) - - (8,540) - - - - (243,085) - (243,085) Proceeds from Issuance of Common Stock 29,312 - - - - - - - - - - - - 29,312 (5,549) 23,763 Dividends Paid on Common Stock (89,092) (36,400) (26,250) (11,892) - (3,300) - (2,550) - - - - - (169,484) 80,392 (89,092) ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ---------- ---------- ---------- ----------- Net Cash Provided by (Used in) Financing Activities (210,808) (84,384) (68,050) (44,720) - (19,833) - (2,550) (3,540) (4,800) (14,400) - (1,600) (454,685) 184,871 (269,814) ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ---------- ---------- ---------- ----------- Effect of Exchange Rates on Cash - - - 1,203 - - - - 2,248 - - - - 3,451 - 3,451 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ---------- ---------- ---------- ----------- Net Increase (Decrease) in Cash and Temporary Cash Investments (264) 4,772 617 6,216 (104) (3,261) 14 7,387 10,018 (1,128) (47) (1) 330 24,549 (9,817) 14,732 Cash and Temporary Cash Investments at Beginning of Year 603 313 1,052 10,207 117 5,389 198 1,880 18,339 3,007 47 1 57 41,210 10,211 51,421 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ---------- ---------- ---------- ----------- Cash and Temporary Cash Investments at End of Year $ 339 $ 5,085 $ 1,669 $ 16,423 $ 13 $ 2,128 $ 212 $ 9,267 $ 28,357 $ 1,879 $ - $ - $ 387 $ 65,759 $ 394 $ 66,153 =========== =========== =========== =========== =========== =========== =========== =========== =========== =========== =========== =========== ========== ========== ========== =========== 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, 2004, incorporated herein by reference.
SENECA RESOURCES CORPORATION CONSOLIDATING BALANCE SHEET AT SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Seneca Seneca Energy Consolidated Resources Canada, Inc. Total Before Seneca and Corporation (Consolidated) Eliminations Eliminations Subsidiaries -------------- -------------- --------------- ------------- -------------- ASSETS PROPERTY, PLANT & EQUIPMENT $ 1,217,784 $ 341,143 $ 1,558,927 $ - $ 1,558,927 Less: Accumulated DD&A 424,678 198,282 622,960 - 622,960 -------------- -------------- --------------- -------------- -------------- 793,106 142,861 935,967 - 935,967 -------------- -------------- --------------- -------------- -------------- CURRENT ASSETS: Cash and Temporary Cash Investments 2,589 13,834 16,423 - 16,423 Allowance for Uncollectible Accounts (517) - (517) - (517) Notes Receivable - Intercompany 72,100 - 72,100 - 72,100 Accounts Receivable 21,171 6,142 27,313 - 27,313 Accounts Receivable - Intercompany 34,230 - 34,230 (29,384) 4,846 Dividends Receivable - Intercompany 779 - 779 - 779 Materials and Supplies 155 640 795 - 795 Fair Value of Derivative Financial Instruments - - - - - Prepayments 4,165 168 4,333 - 4,333 -------------- -------------- --------------- -------------- -------------- 134,672 20,784 155,456 (29,384) 126,072 -------------- -------------- --------------- -------------- -------------- OTHER ASSETS: Investment in Seneca Energy Canada, Inc. (41,268) - (41,268) 41,268 - Investment in Highland 19,035 - 19,035 - 19,035 Deferred Charges 260 182 442 - 442 Notes Receivable - Intercompany 146,797 - 146,797 (146,797) - Other Assets 2,966 - 2,966 - 2,966 -------------- -------------- --------------- -------------- -------------- 127,790 182 127,972 (105,529) 22,443 -------------- -------------- --------------- -------------- -------------- TOTAL ASSETS $ 1,055,568 $ 163,827 $ 1,219,395 $ (134,913) $ 1,084,482 ============== ============== =============== ============== ============== CAPITALIZATION & LIABILITIES CAPITALIZATION: Common Stock 500 - 500 - 500 Paid - in - Capital 104,035 111,076 215,111 (111,076) 104,035 Earnings Reinvested in the Business 18,192 (168,048) (149,856) 168,048 18,192 -------------- -------------- --------------- -------------- -------------- Total Common Shareholder Equity Before Items of Other Comprehensive Income 122,727 (56,972) 65,755 56,972 122,727 Accumulated Other Comprehensive Income (Loss) (35,590) 15,704 (19,886) (15,704) (35,590) -------------- -------------- --------------- -------------- -------------- Total Comprehensive Shareholders' Equity 87,137 (41,268) 45,869 41,268 87,137 Notes Payable-Intercompany 688,422 146,797 835,219 (146,797) 688,422 -------------- -------------- --------------- -------------- -------------- Total Capitalization 775,559 105,529 881,088 (105,529) 775,559 -------------- -------------- --------------- -------------- -------------- CURRENT AND ACCRUED LIABILITIES: Notes Payable to Banks and Commercial Paper - - - - - Accounts Payable 24,565 11,518 36,083 - 36,083 Notes Payable - Intercompany - - - - - Accounts Payable - Intercompany 17,902 29,384 47,286 (29,384) 17,902 Dividends Payable - Intercompany 4,529 - 4,529 - 4,529 Fair Value of Derivative Financial Instru. 82,487 - 82,487 - 82,487 Other Accruals and Current Liabilities (281) 23 (258) - (258) -------------- -------------- --------------- -------------- -------------- 129,202 40,925 170,127 (29,384) 140,743 -------------- -------------- --------------- -------------- -------------- DEFERRED CREDITS: Accumulated Deferred Income Taxes 118,752 14,407 133,159 - 133,159 Pension Liability - - - - - Asset Retirement Obligation 29,326 2,966 32,292 - 32,292 Other Deferred Credits 2,729 - 2,729 - 2,729 -------------- -------------- --------------- -------------- -------------- 150,807 17,373 168,180 - 168,180 -------------- -------------- --------------- -------------- -------------- TOTAL CAPITALIZATION & LIABILITIES $ 1,055,568 $ 163,827 $ 1,219,395 $ (134,913) $ 1,084,482 ============== ============== =============== ============== ============== 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, 2004, incorporated herein by reference.
SENECA RESOURCES CORPORATION CONSOLIDATING STATEMENT OF INCOME FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Seneca Seneca Energy Consolidated Resources Canada, Inc. Total Before Seneca and Corporation (Consolidated) Eliminations Eliminations Subsidiaries -------------- -------------- --------------- -------------- -------------- OPERATING REVENUE: $ 261,151 $ 40,633 $ 301,784 $ - $ 301,784 -------------- -------------- --------------- -------------- -------------- OPERATING EXPENSE: Purchased Gas 12 - 12 - 12 Operation and Maintenance 61,611 11,412 73,023 - 73,023 Property, Franchise & Other Taxes 4,980 600 5,580 - 5,580 Depreciation, Depletion and Amortization 75,168 15,105 90,273 - 90,273 -------------- -------------- --------------- -------------- -------------- 141,771 27,117 168,888 - 168,888 Gain on Sale of Oil & Gas Producing Properties - 4,645 4,645 - 4,645 -------------- -------------- --------------- -------------- -------------- Operating Income (Loss) 119,380 18,161 137,541 - 137,541 -------------- -------------- --------------- -------------- -------------- OTHER INCOME (EXPENSE): Unremitted Earnings/(Loss) of Subsidiary 10,553 - 10,553 (10,553) - Dividends from Subsidiaries 2,466 - 2,466 - 2,466 Interest - Intercompany 3,785 - 3,785 (2,212) 1,573 Other Income 361 - 361 - 361 Interest - Intercompany (49,953) (2,212) (52,165) 2,212 (49,953) Other Interest (279) (409) (688) - (688) -------------- -------------- --------------- -------------- -------------- Income (Loss) Before Income Taxes 86,313 15,540 101,853 (10,553) 91,300 -------------- -------------- --------------- -------------- -------------- Income Taxes 25,881 4,987 30,868 - 30,868 -------------- -------------- --------------- -------------- -------------- Net Income (Loss) Available for Common Stock $ 60,432 $ 10,553 $ 70,985 $ (10,553) $ 60,432 ============== ============== =============== ============== ============== 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, 2004, incorporated herein by reference.
SENECA RESOURCES CORPORATION CONSOLIDATING STATEMENT OF EARNINGS REINVESTED IN THE BUSINESS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Seneca Seneca Energy Consolidated Resources Canada, Inc. Total Before Seneca and EARNINGS REINVESTED IN THE BUSINESS Corporation (Consolidated) Eliminations Eliminations Subsidiaries -------------- -------------- --------------- -------------- -------------- Balance at Beginning of Year $ (28,273) $ (178,601) $ (206,874) $ 178,601 $ (28,273) Net Income (Loss) Available for Common Stock 60,432 10,553 70,985 (10,553) 60,432 Dividends on Common Stock (13,967) - (13,967) - (13,967) -------------- -------------- --------------- -------------- -------------- Balance at End of Year $ 18,192 $ (168,048) $ (149,856) $ 168,048 $ 18,192 ============== ============== =============== ============== ============== 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, 2004, incorporated herein by reference.
SENECA RESOURCES CORPORATION CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Seneca Seneca Energy Consolidated Resources Canada, Inc. Total Before Seneca and Corporation (Consolidated) Eliminations Eliminations Subsidiaries -------------- -------------- --------------- -------------- -------------- Net Income (Loss) Available for Common Stock $ 60,432 $ 10,553 $ 70,985 $ (10,553) $ 60,432 -------------- -------------- --------------- -------------- -------------- Other Comprehensive Income (Loss), Before Tax: Foreign Currency Translation Adjustment 7,477 7,477 14,954 (7,477) 7,477 Unrealized Loss on Derivative Financial Instruments Arising During the Period (113,792) - (113,792) - (113,792) Reclassification Adjustment for Realized Loss on Derivative Financial Instruments in Net Income 44,707 - 44,707 - 44,707 -------------- -------------- --------------- -------------- -------------- Other Comprehensive Income (Loss), Before Tax (61,608) 7,477 (54,131) (7,477) (61,608) Income Tax Benefit Related to Unrealized Loss on Derivative Financial Instruments Arising During the Period (43,226) - (43,226) - (43,226) Reclassification Adjustment for Income Tax Benefit on Realized Loss on Derivative Financial Instruments Realized In Net Income 16,983 - 16,983 - 16,983 -------------- -------------- --------------- -------------- -------------- Income Taxes - Net (26,243) - (26,243) - (26,243) -------------- -------------- --------------- -------------- -------------- Other Comprehensive Income (Loss) (35,365) 7,477 (27,888) (7,477) (35,365) -------------- -------------- --------------- -------------- -------------- Comprehensive Income $ 25,067 $ 18,030 $ 43,097 $ (18,030) $ 25,067 ============== ============== =============== ============== ============== 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, 2004, incorporated herein by reference.
SENECA RESOURCES CORPORATION CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Seneca Seneca Energy Consolidated Resources Canada, Inc. Total Before Seneca and Corporation (Consolidated) Eliminations Eliminations Subsidiary ------------- -------------- ------------- ------------- ------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net Income (Loss) $ 60,432 $ 10,553 $ 70,985 $ (10,553) $ 60,432 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Unremitted (Earnings)/Loss of Subsidiary (10,553) - (10,553) 10,553 - Gain on Sale of Oil & Gas Producing Properties - (4,645) (4,645) - (4,645) Depreciation, Depletion & Amortization 75,168 15,105 90,273 - 90,273 Deferred Income Taxes 20,889 4,785 25,674 - 25,674 Other 2,323 (732) 1,591 813 2,404 Change in: Receivables and Unbilled Utility Revenue (392) 389 (3) - (3) Accounts Receivable - Intercompany (4,551) - (4,551) 3,261 (1,290) Materials and Supplies 152 146 298 - 298 Prepayments 891 487 1,378 - 1,378 Accounts Payable 1,612 992 2,604 (839) 1,765 Accounts Payable - Intercompany 1,265 2,833 4,098 (2,833) 1,265 Other Accruals and Current Liabilities 19,656 (349) 19,307 - 19,307 Other Assets (2,904) (2) (2,906) - (2,906) Other Liabilities (23) (52) (75) (402) (477) ------------- -------------- ------------- ------------- ------------- Net Cash Provided by Operating Activities 163,965 29,510 193,475 - 193,475 ------------- -------------- ------------- ------------- ------------- CASH FLOWS FROM INVESTING ACTIVITIES: Capital Expenditures (46,302) (31,419) (77,721) - (77,721) Net Proceeds from Sale of Oil & Gas Properties 2,200 4,962 7,162 - 7,162 Change in Notes Receivable - Intercompany (72,100) - (72,100) - (72,100) Other (1,083) - (1,083) - (1,083) ------------- -------------- ------------- ------------- ------------- Net Cash Used in Investing Activities (117,285) (26,457) (143,742) - (143,742) ------------- -------------- ------------- ------------- ------------- CASH FLOWS FROM FINANCING ACTIVITIES: Change in Notes Payable - Intercompany (32,828) - (32,828) - (32,828) Dividends Paid on Common Stock (11,892) - (11,892) - (11,892) ------------- -------------- ------------- ------------- ------------- Net Cash Used in Financing Activities (44,720) - (44,720) - (44,720) ------------- -------------- ------------- ------------- ------------- Effect of Exchange Rates on Cash - 1,203 1,203 - 1,203 ------------- -------------- ------------- ------------- ------------- Net Increase in Cash and Temporary Cash Investments 1,960 4,256 6,216 - 6,216 Cash and Temporary Cash Investments at Beginning of Period 629 9,578 10,207 - 10,207 ------------- -------------- ------------- ------------- ------------- Cash and Temporary Cash Investments at End of Period $ 2,589 $ 13,834 $ 16,423 $ - $ 16,423 ============= ============== ============= ============= ============= 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, 2004, incorporated herein by reference.
SENECA ENERGY CANADA, INC. CONSOLIDATING BALANCE SHEET AT SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Seneca Energy Seneca Energy Total Before Canada, Inc. NSULC1 Canada, Inc. NSULC2 Eliminations Eliminations (Consolidated) ------------- ------------- ------------- ------------- ------------- ------------- ASSETS PROPERTY, PLANT & EQUIPMENT $ - $ 341,143 $ - $ 341,143 $ - $ 341,143 Less: Accumulated DD&A - 198,282 - 198,282 - 198,282 ------------- ------------- ------------- ------------- ------------- ------------- - 142,861 - 142,861 - 142,861 ------------- ------------- ------------- ------------- ------------- ------------- CURRENT ASSETS: Cash and Temporary Cash Investments - 13,834 - 13,834 - 13,834 Allowance for Uncollectible Accounts - - - - - - Notes Receivable - Intercompany - - - - - - Accounts Receivable - 6,142 - 6,142 - 6,142 Accounts Receivable - Intercompany - - - - - - Dividends Receivable - - - - - - Materials and Supplies - 640 - 640 - 640 Fair Value of Derivative Financial Instru. - - - - - - Prepayments - 168 - 168 - 168 ------------- ------------- ------------- ------------- ------------- ------------- - 20,784 - 20,784 - 20,784 ------------- ------------- ------------- ------------- ------------- ------------- OTHER ASSETS: Investment in Associated Companies 108,741 - - 108,741 (108,741) - Deferred Charges - 182 - 182 - 182 Notes Receivable - Intercompany - - - - - - Other Assets - - - - - - ------------- ------------- ------------- ------------- ------------- ------------- 108,741 182 - 108,923 (108,741) 182 ------------- ------------- ------------- ------------- ------------- ------------- TOTAL ASSETS $ 108,741 $ 163,827 $ - $ 272,568 $ (108,741) $ 163,827 ============= ============= ============= ============= ============= ============= CAPITALIZATION & LIABILITIES CAPITALIZATION: Common Stock - - - - - - Paid - in - Capital 109,667 49,397 1,409 160,473 (49,397) 111,076 Earnings Reinvested in the Business (194,710) 47,906 (2,193) (148,997) (19,051) (168,048) ------------- ------------- ------------- ------------- ------------- ------------- Total Common Shareholder Equity Before Items of Other Comprehensive Income (85,043) 97,303 (784) 11,476 (68,448) (56,972) Accumulated Other Comprehensive Income (Loss) 44,001 11,438 558 55,997 (40,293) 15,704 ------------- ------------- ------------- ------------- ------------- ------------- Total Comprehen. Shareholders' Equity (41,042) 108,741 (226) 67,473 (108,741) (41,268) Notes Payable-Intercompany 144,907 - 1,890 146,797 - 146,797 ------------- ------------- ------------- ------------- ------------- ------------- Total Capitalization 103,865 108,741 1,664 214,270 (108,741) 105,529 ------------- ------------- ------------- ------------- ------------- ------------- CURRENT AND ACCRUED LIABILITIES: Notes Payable to Banks and Commercial Paper - - - - - - Accounts Payable (1) 11,521 (2) 11,518 - 11,518 Notes Payable - Intercompany - - - - - - Accounts Payable - Intercompany 3,089 27,777 (1,482) 29,384 - 29,384 Dividends Payable - Intercompany - - - - - - Fair Value of Derivative Financial Instru. - - - - - - Other Accruals and Current Liabilities - 23 - 23 - 23 ------------- ------------- ------------- ------------- ------------- ------------- 3,088 39,321 (1,484) 40,925 - 40,925 ------------- ------------- ------------- ------------- ------------- ------------- DEFERRED CREDITS: Accumulated Deferred Income Taxes 1,788 12,799 (180) 14,407 - 14,407 Pension Liability - - - - - - Asset Retirement Obligation - 2,966 - 2,966 - 2,966 Other Deferred Credits - - - - - - ------------- ------------- ------------- ------------- ------------- ------------- 1,788 15,765 (180) 17,373 - 17,373 ------------- ------------- ------------- ------------- ------------- ------------- TOTAL CAPITALIZATION & LIABILITIES $ 108,741 $ 163,827 $ - $ 272,568 $ (108,741) $ 163,827 ============= ============= ============= ============= ============= ============= 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, 2004, incorporated herein by reference.
SENECA ENERGY CANADA, INC. CONSOLIDATING STATEMENT OF INCOME FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Seneca Energy Seneca Energy Total Before Canada, Inc. NSULC1 Canada, Inc. NSULC2 Eliminations Eliminations (Consolidated) ------------- ------------- ------------- ------------- ------------- ------------- OPERATING REVENUE: $ 57 $ 40,576 $ - $ 40,633 $ - $ 40,633 ------------- ------------- ------------- ------------- ------------- ------------- OPERATING EXPENSE: Purchased Gas - - - - - - Operation and Maintenance 2 11,408 2 11,412 - 11,412 Property, Franchise & Other Taxes - 600 - 600 - 600 Depreciation, Depletion and Amortization - 15,105 - 15,105 - 15,105 ------------- ------------- ------------- ------------- ------------- ------------- 2 27,113 2 27,117 - 27,117 Gain (Loss) on Sale of Oil & Gas Producing Properties 6,580 (2,022) 87 4,645 - 4,645 ------------- ------------- ------------- ------------- ------------- ------------- Operating Income (Loss) 6,635 11,441 85 18,161 - 18,161 ------------- ------------- ------------- ------------- ------------- ------------- OTHER INCOME (EXPENSE): Unremitted Earnings/(Loss) of Subsidiary 7,522 - - 7,522 (7,522) - Interest - Intercompany (2,184) - (28) (2,212) - (2,212) Other Interest - (409) - (409) - (409) ------------- ------------- ------------- ------------- ------------- ------------- Income (Loss) Before Income Taxes 11,973 11,032 57 23,062 (7,522) 15,540 ------------- ------------- ------------- ------------- ------------- ------------- Income Taxes 1,474 3,510 3 4,987 - 4,987 ------------- ------------- ------------- ------------- ------------- ------------- Net Income (Loss) Available for Common Stock $ 10,499 $ 7,522 $ 54 $ 18,075 $ (7,522) $ 10,553 ============= ============= ============= ============= ============= ============= 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, 2004, incorporated herein by reference.
SENECA ENERGY CANADA, INC. CONSOLIDATING STATEMENT OF EARNINGS REINVESTED IN THE BUSINESS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Seneca Energy Seneca Energy Total Before Canada, Inc. EARNINGS REINVESTED IN THE BUSINESS NSULC1 Canada, Inc. NSULC2 Eliminations Eliminations (Consolidated) ------------- ------------- ------------- ------------- ------------- ------------- Balance at Beginning of Year $ (205,209) $ 40,384 $ (2,247) $ (167,072) $ (11,529) $ (178,601) Net Income (Loss) Available for Common Stock 10,499 7,522 54 18,075 (7,522) 10,553 Dividends on Common Stock - - - - - - ------------- ------------- ------------- ------------- ------------- ------------- Balance at End of Year $ (194,710) $ 47,906 $ (2,193) $ (148,997) $ (19,051) $ (168,048) ============= ============= ============= ============= ============= ============= 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, 2004, incorporated herein by reference.
SENECA ENERGY CANADA, INC. CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Seneca Energy Seneca Energy Total Before Canada, Inc. NSULC1 Canada, Inc. NSULC2 Eliminations Eliminations (Consolidated) ------------- ------------- ------------- ------------- ------------- ------------- Net Income (Loss) Available for Common Stock $ 10,499 $ 7,522 $ 54 $ 18,075 $ (7,522) $ 10,553 ------------- ------------- ------------- ------------- ------------- ------------- Other Comprehensive Income (Loss): Foreign Currency Translation Adjustment 16,074 5,750 64 21,888 (14,411) 7,477 ------------- ------------- ------------- ------------- ------------- ------------- Other Comprehensive Income 16,074 5,750 64 21,888 (14,411) 7,477 ------------- ------------- ------------- ------------- ------------- ------------- Comprehensive Income $ 26,573 $ 13,272 $ 118 $ 39,963 $ (21,933) $ 18,030 ============= ============= ============= ============= ============= ============= 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, 2004, incorporated herein by reference.
SENECA ENERGY CANADA, INC. CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Seneca Energy Seneca Energy Total Before Canada, Inc. NSULC1 Canada, Inc. NSULC2 Eliminations Eliminations (Consolidated) ------------ ------------ ------------ ------------ ------------- ------------ CASH FLOWS FROM OPERATING ACTIVITIES: Net Income (Loss) $ 10,499 $ 7,522 $ 54 $ 18,075 $ (7,522) $ 10,553 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Unremitted (Earnings)/Loss of Subsidiary (7,522) - - (7,522) 7,522 - (Gain) Loss on Sale of Oil & Gas Producing Properties (6,580) 2,022 (87) (4,645) - (4,645) Depreciation, Depletion & Amortization - 15,105 - 15,105 - 15,105 Deferred Income Taxes 1,474 3,311 - 4,785 - 4,785 Other - (732) - (732) - (732) Change in: Receivables and Unbilled Utility Revenue - (1,374) 1,763 389 - 389 Accounts Receivable - Intercompany - - - - - - Materials and Supplies - 146 - 146 - 146 Prepayments - 487 - 487 - 487 Accounts Payable (1) 995 (2) 992 - 992 Accounts Payable - Intercompany 2,130 2,431 (1,728) 2,833 - 2,833 Other Accruals and Current Liabilities - (349) - (349) - (349) Other Assets - (2) - (2) - (2) Other Liabilities - (52) - (52) - (52) ------------ ------------ ------------ ------------ ------------- ------------ Net Cash Provided by Operating Activities - 29,510 - 29,510 - 29,510 ------------ ------------ ------------ ------------ ------------- ------------ CASH FLOWS FROM INVESTING ACTIVITIES: Capital Expenditures - (31,419) - (31,419) - (31,419) Net Proceeds from Sale of Oil & Gas Properties - 4,962 - 4,962 - 4,962 Change in Notes Receivable - Intercompany - - - - - - Other - - - - - - ------------ ------------ ------------ ------------ ------------- ------------ Net Cash Used in Investing Activities - (26,457) - (26,457) - (26,457) ------------ ------------ ------------ ------------ ------------- ------------ CASH FLOWS FROM FINANCING ACTIVITIES: Net Cash Used in Financing Activities - - - - - - ------------ ------------ ------------ ------------ ------------- ------------ Effect of Exchange Rates on Cash - 1,203 - 1,203 - 1,203 ------------ ------------ ------------ ------------ ------------- ------------ Net Increase in Cash and Temporary Cash Investments - 4,256 - 4,256 - 4,256 Cash and Temporary Cash Investments at Beginning of Period - 9,578 - 9,578 - 9,578 ------------ ------------ ------------ ------------ ------------- ------------ Cash and Temporary Cash Investments at End of Period $ - $ 13,834 $ - $ 13,834 $ - $ 13,834 ============ ============ ============ ============ ============= ============ 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, 2004, incorporated herein by reference.
HIGHLAND FOREST RESOURCES, INC. CONSOLIDATING BALANCE SHEET AT SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Highland Highland Forest Forest Empire St. Clair Empire State Total Before Resources, Inc. Resources, Inc. LLC LLC Pipeline Eliminations Eliminations (Consolidated) -------------- ----------- ------------ ------------ ----------- ------------ -------------- ASSETS PROPERTY, PLANT & EQUIPMENT $ 92,949 $ 10,982 $ - $ 210,029 $ 313,960 $ - $ 313,960 Less: Accumulated DD&A 22,348 (71,067) - 89,590 40,871 - 40,871 ------------ ----------- ------------ ------------ ----------- ------------ ----------- 70,601 82,049 - 120,439 273,089 - 273,089 ------------ ----------- ------------ ------------ ----------- ------------ ----------- CURRENT ASSETS: Cash and Temporary Cash Investments 108 679 252 1,089 2,128 - 2,128 Accounts Receivable 2,630 - - 2,591 5,221 - 5,221 Accounts Receivable - Intercompany 75 211 1 200 487 (210) 277 Dividends Receivable 800 400 400 - 1,600 (1,600) - Materials and Supplies 25,340 - - 56 25,396 - 25,396 Prepayments 583 - - 2,621 3,204 - 3,204 ------------ ----------- ------------ ------------ ----------- ------------ ----------- 29,536 1,290 653 6,557 38,036 (1,810) 36,226 ------------ ----------- ------------ ------------ ----------- ------------ ----------- OTHER ASSETS: Recoverable Future Taxes - - - 3,833 3,833 - 3,833 Unamortized Debt Expense - - - 281 281 - 281 Other Regulatory Assets - - - 2,823 2,823 - 2,823 Investment in Associated Company 180,283 42,413 42,413 - 265,109 (265,109) - Deferred Charges - - - 415 415 - 415 Goodwill - 5,476 - - 5,476 - 5,476 Intangible Assets - 6,799 - - 6,799 - 6,799 Other Assets 1,134 - - - 1,134 - 1,134 ------------ ----------- ------------ ------------ ----------- ------------ ----------- 181,417 54,688 42,413 7,352 285,870 (265,109) 20,761 ------------ ----------- ------------ ------------ ----------- ------------ ----------- TOTAL ASSETS $ 281,554 $ 138,027 $ 43,066 $ 134,348 $ 596,995 $ (266,919) $ 330,076 ============ =========== ============ ============ =========== ============ =========== CAPITALIZATION & LIABILITIES CAPITALIZATION: Common Stock 4 142,165 47,041 - 189,210 (189,206) 4 Paid - in - Capital 22,039 - - 38,220 60,259 (38,220) 22,039 Earnings Reinvest. in the Business 115,889 (5,295) (5,123) 48,811 154,282 (38,392) 115,890 ------------ ----------- ------------ ------------ ----------- ------------ ----------- Total Common Shareholder Equity Before Items of Other Comprehensive Income 137,932 136,870 41,918 87,031 403,751 (265,818) 137,933 Accumulated Other Comprehensive Income (Loss) 1,495 748 748 (2,204) 787 708 1,495 ------------ ----------- ------------ ------------ ----------- ------------ ----------- Total Comprehensive Shareholders' Equity 139,427 137,618 42,666 84,827 404,538 (265,110) 139,428 Long-Term Debt, net of Current Portion - - - 32,100 32,100 - 32,100 Notes Payable-Intercompany 60,000 - - - 60,000 - 60,000 ------------ ----------- ------------ ------------ ----------- ------------ ----------- Total Capitalization 199,427 137,618 42,666 116,927 496,638 (265,110) 231,528 ------------ ----------- ------------ ------------ ----------- ------------ ----------- CURRENT AND ACCRUED LIABILITIES: Accounts Payable 11,338 - - 144 11,482 - 11,482 Notes Payable - Intercompany 11,600 - - - 11,600 - 11,600 Current Portion of Long-Term Debt - - - 9,333 9,333 - 9,333 Accounts Payable - Intercompany 1,786 - - 900 2,686 (209) 2,477 Dividends Payable - Intercompany 1,200 400 400 800 2,800 (1,600) 1,200 Fair Value of Derivative Financial Instruments - - - 2,204 2,204 - 2,204 Other Accruals and Current Liabilities 2,328 9 - 195 2,532 - 2,532 ------------ ----------- ------------ ------------ ----------- ------------ ----------- 28,252 409 400 13,576 42,637 (1,809) 40,828 ------------ ----------- ------------ ------------ ----------- ------------ ----------- DEFERRED CREDITS: Accumulated Deferred Income Taxes 53,350 - - 3,833 57,183 - 57,183 Pension Liability 1 - - - 1 - 1 Other Deferred Credits 524 - - 12 536 - 536 ----------- ----------- ------------ ------------ ----------- ------------ ----------- 53,875 - - 3,845 57,720 - 57,720 ------------ ----------- ------------ ------------ ----------- ------------ ----------- TOTAL CAPITALILZATION & LIABILITIES $ 281,554 $ 138,027 $ 43,066 $ 134,348 $ 596,995 $ (266,919) $ 330,076 ============ =========== ============ ============ =========== ============ =========== 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, 2004, incorporated herein by reference.
HIGHLAND FOREST RESOURCES, INC. CONSOLIDATING STATEMENT OF INCOME FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Highland Highland Forest Forest Empire St. Clair Empire State Total Before Resources, Inc. Resources, Inc. LLC LLC Pipeline Eliminations Eliminations (Consolidated) -------------- ----------- ------------ ------------ ----------- ------------ -------------- OPERATING REVENUE: $ 55,596 $ (1,069) $ - $ 34,492 $ 89,019 $ - $ 89,019 ------------ ----------- ------------ ------------ ----------- ------------ ----------- OPERATING EXPENSE: Operation and Maintenance 42,596 2 (1) 4,712 47,309 - 47,309 Property, Franchise & Other Taxes 539 - - 4,826 5,365 - 5,365 Depreciation, Depletion and Amortization 5,946 2,200 - 9,254 17,400 - 17,400 ------------ ----------- ------------ ------------ ----------- ------------ ----------- 49,081 2,202 (1) 18,792 70,074 - 70,074 Loss on Sale of Timber Properties (1,252) - - - (1,252) - (1,252) ------------ ----------- ------------ ------------ ----------- ------------ ----------- - Operating Income (Loss) 5,263 (3,271) 1 15,700 17,693 - 17,693 ------------ ----------- ------------ ------------ ----------- ------------ ----------- OTHER INCOME (EXPENSE): Unremitted Earnings/(Loss) of Subsidiary 10,216 6,345 6,345 - 22,906 (22,906) - Other Income 270 14 4 33 321 - 321 Interest on Long-Term Debt - 389 389 (3,098) (2,320) - (2,320) Interest - Intercompany (3,864) - - - (3,864) - (3,864) Other Interest (91) - - 56 (35) - (35) ------------ ----------- ------------ ------------ ----------- ------------ ----------- Income (Loss) Before Income Taxes and Minority Interest in Foreign Subsidiary 11,794 3,477 6,739 12,691 34,701 (22,906) 11,795 ------------ ----------- ------------ ------------ ----------- ------------ ----------- Income Taxes 4,036 - - - 4,036 - 4,036 Net Income (Loss) Available for Common Stock $ 7,758 $ 3,477 $ 6,739 $ 12,691 $ 30,665 $ (22,906) $ 7,759 ============ =========== ============ ============ =========== ============ =========== 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, 2004, incorporated herein by reference.
HIGHLAND FOREST RESOURCES, INC. CONSOLIDATING STATEMENT OF EARNINGS REINVESTED IN THE BUSINESS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Highland Highland Forest EARNINGS REINVESTED Forest Empire St. Clair Empire State Total Before Resources, Inc. IN THE BUSINESS Resources, Inc. LLC LLC Pipeline Eliminations Eliminations (Consolidated) -------------- ----------- ------------ ------------ ----------- ------------ -------------- Balance at Beginning of Year $ 111,931 $ (368) $ (4,257) $ 50,605 $ 157,911 $ (45,980) $ 111,931 Net Income (Loss) Available for Common Stock 7,758 3,477 6,739 12,691 30,665 (22,906) 7,759 Dividends on Common Stock and Joint Venture Distributions (3,800) (8,404) (7,605) (14,485) (34,294) 30,494 (3,800) ------------ ----------- ------------ ------------ ----------- ------------ ----------- Balance at End of Year $ 115,889 $ (5,295) $ (5,123) $ 48,811 $ 154,282 $ (38,392) $ 115,890 ============ =========== ============ ============ =========== ============ =========== 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, 2004, incorporated herein by reference.
HIGHLAND FOREST RESOURCES, INC. CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Highland Highland Forest Forest Empire St. Clair Empire State Total Before Resources, Inc. Resources, Inc. LLC LLC Pipeline Eliminations Eliminations (Consolidated) -------------- ----------- ------------ ------------ ------------ ------------ -------------- Net Income (Loss) Available for Common Stock $ 7,758 $ 3,477 $ 6,739 $ 12,691 $ 30,665 $ (22,906) $ 7,759 ------------ ----------- ------------ ------------ ----------- ------------ ----------- Other Comprehensive Income (Loss): Unrealized Gain (Loss) on Derivative Financial Instruments Arising During the Period (693) 29 30 58 (576) (117) (693) Reclassification Adjustment for Realized (Gain) Loss on Derivative Financial Instruments in Net Income 1,964 606 606 1,991 5,167 (3,203) 1,964 ------------ ----------- ------------ ------------ ----------- ------------ ----------- Other Comprehensive Income (Loss) 1,271 635 636 2,049 4,591 (3,320) 1,271 ------------ ----------- ------------ ------------ ----------- ------------ ----------- Comprehensive Income (Loss) $ 9,029 $ 4,112 $ 7,375 $ 14,740 $ 35,256 $ (26,226) $ 9,030 ============ =========== ============ ============ =========== ============ =========== 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, 2004, incorporated herein by reference.
HIGHLAND FOREST RESOURCES, INC. CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Highland Highland Forest Forest Empire St. Clair Empire State Total Before Resources, Inc. Resources, Inc. LLC LLC Pipeline Eliminations Eliminations (Consolidated) -------------- --------- ----------- ----------- ----------- ------------ -------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net Income (Loss) $ 7,758 3,477 6,739 $ 12,691 $ 30,665 $ (22,906) $ 7,759 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Earnings of Subsidiaries, Net of Cash Distributions 5,294 647 647 - 6,588 (6,588) - Loss on Sale of Timber Properties 1,252 - - - 1,252 - 1,252 Depreciation, Depletion & Amortization 5,946 2,200 - 9,254 17,400 - 17,400 Deferred Income Taxes (3,114) - - - (3,114) - (3,114) Other (158) 1,069 - 262 1,173 1,173 Change in: Receivables and Unbilled Utility Revenue (116) - - (39) (155) - (155) Accounts Receivable - Intercompany 57 (211) (1) 207 52 210 262 Materials and Supplies (11,067) - - 17 (11,050) - (11,050) Prepayments (128) - - 1,049 921 - 921 Accounts Payable 7,891 - - (598) 7,293 - 7,293 Accounts Payable - Intercompany (787) - - 819 32 (210) (178) Other Accruals and Current Liabilities 259 (381) (389) (120) (631) - (631) Other Assets - - - (760) (760) - (760) Other Liabilities (129) (2) - (774) (905) - (905) ----------- ----------- ----------- ----------- ----------- ----------- ----------- Net Cash Provided by Operating Activities 12,958 6,799 6,996 22,008 48,761 (29,494) 19,267 ----------- ----------- ----------- ----------- ----------- ----------- ----------- CASH FLOWS FROM INVESTING ACTIVITIES: Capital Expenditures (2,756) - - (171) (2,927) - (2,927) Other 232 - - - 232 - 232 ----------- ----------- ----------- ----------- ----------- ----------- ----------- Net Cash Used in Investing Activities (2,524) - - (171) (2,695) - (2,695) ----------- ----------- ----------- ----------- ----------- ----------- ----------- CASH FLOWS FROM FINANCING ACTIVITIES: Change in Notes Payable - Intercompany (7,200) - - - (7,200) - (7,200) Reduction of Long-Term Debt - - - (9,333) (9,333) - (9,333) Dividends and Distributions (3,300) (8,154) (7,355) (13,985) (32,794) 29,494 (3,300) ----------- ----------- ----------- ----------- ----------- ----------- ----------- Net Cash Used in Financing Activities (10,500) (8,154) (7,355) (23,318) (49,327) 29,494 (19,833) ----------- ----------- ----------- ----------- ----------- ----------- ----------- Effect of Exchange Rates on Cash - - - - - - - ----------- ----------- ----------- ----------- ----------- ----------- ----------- Net Increase (Decrease) in Cash and Temporary Cash Investments (66) (1,355) (359) (1,481) (3,261) - (3,261) Cash and Temporary Cash Investments at Beginning of Period 174 2,034 611 2,570 5,389 - 5,389 ----------- ----------- ----------- ----------- ----------- ----------- ----------- Cash and Temporary Cash Investments at End of Period $ 108 $ 679 $ 252 $ 1,089 $ 2,128 $ - $ 2,128 =========== =========== =========== =========== =========== =========== =========== 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, 2004, incorporated herein by reference.
HORIZON LFG, INC. CONSOLIDATING BALANCE SHEET AT SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Horizon Horizon Toro Toro LFG, LFG, Partners, Partners, LP Total Before Inc. Inc. LLC (Consolidated) Eliminations Eliminations (Consolidated) ------------- ------------- ------------- ------------- ------------- ------------- ASSETS PROPERTY, PLANT & EQUIPMENT $ - $ - $ 15,180 $ 15,180 $ - $ 15,180 Less: Accumulated DD&A - - 902 902 - 902 ------------- ------------- ------------- ------------- ------------- ------------- - - 14,278 14,278 - 14,278 ------------- ------------- ------------- ------------- ------------- ------------- CURRENT ASSETS: Cash and Temporary Cash Investments 257 231 1,391 1,879 - 1,879 Notes Receivable - Intercompany 43,000 - - 43,000 (43,000) - Accounts Receivable - - 1,940 1,940 - 1,940 Accounts Receivable - Intercompany 62 - 543 605 (62) 543 Prepayments - - 76 76 - 76 ------------- ------------- ------------- ------------- ------------- ------------- 43,319 231 3,950 47,500 (43,062) 4,438 ------------- ------------- ------------- ------------- ------------- ------------- OTHER ASSETS: Investment in Associated Companies 146 42,552 - 42,698 (42,698) - Intangible Assets - - 30,024 30,024 - 30,024 ------------- ------------- ------------- ------------- ------------- ------------- 146 42,552 30,024 72,722 (42,698) 30,024 ------------- ------------- ------------- ------------- ------------- ------------- TOTAL ASSETS $ 43,465 $ 42,783 $ 48,252 $ 134,500 $ (85,760) $ 48,740 ============= ============= ============= ============= ============= ============= CAPITALIZATION & LIABILITIES CAPITALIZATION: Common Stock 1 - - 1 - 1 Paid - in - Capital 6,800 - 47,347 54,147 (47,347) 6,800 Earnings Reinvested in the Business (3,979) 3,771 (273) (481) (3,498) (3,979) ------------- ------------- ------------- ------------- ------------- ------------- Total Common Shareholder Equity Before Items of Other Comprehensive Income 2,822 3,771 47,074 53,667 (50,845) 2,822 Accumulated Other Comprehensive Income (Loss) (4,094) (4,053) (4,094) (12,241) 8,147 (4,094) ------------- ------------- ------------- ------------- ------------- ------------- Total Capitalization (1,272) (282) 42,980 41,426 (42,698) (1,272) ------------- ------------- ------------- ------------- ------------- ------------- CURRENT AND ACCRUED LIABILITIES: Accounts Payable - - 1,243 1,243 3 1,246 Notes Payable - Intercompany 43,500 43,000 - 86,500 (43,000) 43,500 Accounts Payable - Intercompany 370 65 22 457 (65) 392 Fair Value of Derivative Financial Instruments- - 6,761 6,761 - 6,761 Other Accruals and Current Liabilities (1,028) - - (1,028) - (1,028) ------------- ------------- ------------- ------------- ------------- ------------- 42,842 43,065 8,026 93,933 (43,062) 50,871 ------------- ------------- ------------- ------------- ------------- ------------- DEFERRED CREDITS: Accumulated Deferred Income Taxes 1,894 - (2,754) (860) - (860) Other Deferred Credits 1 - - 1 - 1 ------------- ------------- ------------- ------------- ------------- ------------- 1,895 - (2,754) (859) - (859) ------------- ------------- ------------- ------------- ------------- ------------- TOTAL CAPITALIZATION & LIABILITIES $ 43,465 $ 42,783 $ 48,252 $ 134,500 $ (85,760) $ 48,740 ============= ============= ============= ============= ============= ============= 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, 2004, incorporated herein by reference.
HORIZON LFG, INC. CONSOLIDATING STATEMENT OF INCOME FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Horizon Horizon Toro Toro LFG, LFG, Partners, Partners, LP Total Before Inc. Inc. LLC (Consolidated) Eliminations Eliminations (Consolidated) ------------- ------------- ------------- ------------- ------------- ------------- OPERATING REVENUE: $ - $ - $ 13,237 $ 13,237 $ - $ 13,237 ------------- ------------- ------------- ------------- ------------- ------------- OPERATING EXPENSE: Purchased Gas - - 5,992 5,992 - 5,992 Operation and Maintenance 324 6 2,541 2,871 - 2,871 Property, Franchise & Other Taxes 3 - 47 50 - 50 Depreciation, Depletion and Amortization - - 1,051 1,051 - 1,051 ------------- ------------- ------------- ------------- ------------- ------------- 327 6 9,631 9,964 - 9,964 ------------- ------------- ------------- ------------- ------------- ------------- Operating Income (Loss) (327) (6) 3,606 3,273 - 3,273 ------------- ------------- ------------- ------------- ------------- ------------- OTHER INCOME (EXPENSE): Unremitted Earnings/(Loss) of Subsidiaries 3,040 3,598 - 6,638 (6,638) - Interest - Intercompany 589 - - 589 (589) - Other Income - - 29 29 - 29 Interest - Intercompany (595) (589) - (1,184) 589 (595) Other Interest (58) - - (58) - (58) ------------- ------------- ------------- ------------- ------------- ------------- Income (Loss) Before Income Taxes and Minority Interest in Foreign Subsidiary 2,649 3,003 3,635 9,287 (6,638) 2,649 ------------- ------------- ------------- ------------- ------------- ------------- Income Taxes 837 - - 837 - 837 ------------- ------------- ------------- ------------- ------------- ------------- Net Income (Loss) Available for Common Stock $ 1,812 $ 3,003 $ 3,635 $ 8,450 $ (6,638) $ 1,812 ============= ============= ============= ============= ============= ============= 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, 2004, incorporated herein by reference.
HORIZON LFG, INC. CONSOLIDATING STATEMENT OF EARNINGS REINVESTED IN THE BUSINESS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Horizon Horizon Toro Toro LFG, LFG, Partners, Partners, LP Total Before Inc. EARNINGS REINVESTED IN THE BUSINESS Inc. LLC (Consolidated) Eliminations Eliminations (Consolidated) ------------- ------------- ------------- ------------- ------------- ------------- Balance at Beginning of Year $ (5,791) $ 768 $ 1,118 $ (3,905) $ (1,886) $ (5,791) Net Income (Loss) Available for Common Stock 1,812 3,003 3,635 8,450 (6,638) 1,812 Distributions - - (5,026) (5,026) 5,026 - ------------- ------------- ------------- ------------- ------------- ------------- Balance at End of Year $ (3,979) $ 3,771 $ (273) $ (481) $ (3,498) $ (3,979) ============= ============= ============= ============= ============= ============= 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, 2004, incorporated herein by reference.
HORIZON LFG, INC. CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Horizon Horizon Toro Toro LFG, LFG, Partners, Partners, LP Total Before Inc. Inc. LLC (Consolidated) Eliminations Eliminations (Consolidated) ------------- ------------- ------------- ------------- ------------- ------------- Net Income (Loss) Available for Common Stock $ 1,812 $ 3,003 $ 3,635 $ 8,450 $ (6,638) $ 1,812 ------------- ------------- ------------- ------------- ------------- ------------- Other Comprehensive Income, Before Tax: Unrealized Loss on Derivative Financial Instruments Arising During the Period (8,111) - (8,111) (16,222) 8,111 (8,111) Reclassification Adjustment for Realized Gain on Derivative Financial Instruments in Net Income (73) - (73) (146) 73 (73) ------------- ------------- ------------- ------------- ------------- ------------- Other Comprehensive Loss, Before Tax (8,184) - (8,184) (16,368) 8,184 (8,184) Income Tax Benefit Related to Unrealized Loss on Derivative Financial Instruments Arising During the Period (2,918) - (2,918) (5,836) 2,918 (2,918) Reclassification Adjustment for Income Tax Benefit on Derivative Financial Instruments Realized In Net Income 164 - 164 328 (164) 164 ------------- ------------- ------------- ------------- ------------- ------------- Income Taxes - Net (2,754) - (2,754) (5,508) 2,754 (2,754) ------------- ------------- ------------- ------------- ------------- ------------- Other Comprehensive Income (5,430) - (5,430) (10,860) 5,430 (5,430) ------------- ------------- ------------- ------------- ------------- ------------- Comprehensive Income (Loss) $ (3,618) $ 3,003 $ (1,795) $ (2,410) $ (1,208) $ (3,618) ============= ============= ============= ============= ============= ============= 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, 2004, incorporated herein by reference.
HORIZON LFG, INC. CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Horizon Horizon Toro Toro LFG, LFG, Partners, Partners, LP Total Before Inc. Inc. LLC (Consolidated) Eliminations Eliminations (Consolidated) ------------ ------------ ------------ ------------ ------------- ------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net Income (Loss) $ 1,812 $ 3,003 $ 3,635 $ 8,450 $ (6,638) $ 1,812 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Unremitted Earnings of Subsidiaries, Net of Cash Distributions (2,985) 1,847 - (1,138) 1,138 - Depreciation, Depletion & Amortization - - 1,051 1,051 - 1,051 Deferred Income Taxes 1,733 - - 1,733 - 1,733 Other - - 1,498 1,498 - 1,498 Change in: Receivables and Unbilled Utility Revenue 2 208 (1,110) (900) - (900) Accounts Receivable - Intercompany (15) - (364) (379) 15 (364) Prepayments - - (76) (76) - (76) Accounts Payable - - 1,010 1,010 3 1,013 Accounts Payable - Intercompany 221 15 22 258 (18) 240 Other Accruals and Current Liabilities (1,020) - - (1,020) - (1,020) Other Assets - - 1,155 1,155 - 1,155 Other Liabilities 2 - (2,275) (2,273) - (2,273) ------------ ------------ ------------ ------------ ------------- ------------ Net Cash Provided by Operating Activities (250) 5,073 4,546 9,369 (5,500) 3,869 ------------ ------------ ------------ ------------ ------------- ------------ CASH FLOWS FROM INVESTING ACTIVITIES: Capital Expenditures - - (197) (197) - (197) Change in Notes Receivable-Intercompany 5,000 - - 5,000 (5,000) - ------------ ------------ ------------ ------------ ------------- ------------ Net Cash Provided by (Used in) Investing Activities 5,000 - (197) 4,803 (5,000) (197) ------------ ------------ ------------ ------------ ------------- ------------ CASH FLOWS FROM FINANCING ACTIVITIES: Change in Notes Payable-Intercompany (4,800) (5,000) - (9,800) 5,000 (4,800) Distributions Paid - - (5,500) (5,500) 5,500 - ------------ ------------ ------------ ------------ ------------- ------------ Net Cash Used in Financing Activities (4,800) (5,000) (5,500) (15,300) 10,500 (4,800) ------------ ------------ ------------ ------------ ------------- ------------ Effect of Exchange Rates on Cash - - - - - - ------------ ------------ ------------ ------------ ------------- ------------ Net Increase (Decrease) in Cash and Temporary Cash Investments (50) 73 (1,151) (1,128) - (1,128) Cash and Temporary Cash Investments at Beginning of Period 307 158 2,542 3,007 - 3,007 ------------ ------------ ------------ ------------ ------------- ------------ Cash and Temporary Cash Investments at End of Period $ 257 $ 231 $ 1,391 $ 1,879 $ - $ 1,879 ============ ============ ============ ============ ============= ============ 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, 2004, incorporated herein by reference.
TORO PARTNERS, LP. CONSOLIDATING BALANCE SHEET AT SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Toro Energy Toro Energy Toro Energy Toro Energy Toro Energy Toro Energy Toro Energy Toro Energy Consolidated Toro of Michigan, of Ohio-Statewide of Ohio, of Kentucky, of Missouri, of Maryland, of Indiana, of Ohio-American, Total Before Toro Partners, LP LLC LLC LLC LLC LLC LLC LLC LLC Eliminations Eliminations Partners, LP ------------- ----------- ---------------- ------------- ------------- ------------- ------------- ------------- -------------- ------------- ------------- ------------- ASSETS PROPERTY, PLANT & EQUIPMENT $ 1 $ 1,915 $ - $ 1,659 $ 1,888 $ 2,602 $ 2,128 $ 1,091 $ 3,896 $ 15,180 $ - $ 15,180 Less: Accumulated DD&A - 127 - 104 126 161 142 73 169 902 - 902 ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- 1 1,788 - 1,555 1,762 2,441 1,986 1,018 3,727 14,278 - 14,278 ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- CURRENT ASSETS: Cash and Temporary Cash Investments (1,139) 192 33 888 199 281 (73) 220 790 1,391 - 1,391 Accounts Receivable - 33 13 174 116 142 125 185 1,152 1,940 - 1,940 Accounts Receivable - Intercompany 543 - - - - - - - - 543 - 543 Prepayments 16 - - - - - 60 - - 76 - 76 ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- (580) 225 46 1,062 315 423 112 405 1,942 3,950 - 3,950 ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- OTHER ASSETS: Investment in Associated Companies 47,588 - - - - - - - - 47,588 (47,588) - Intangible Assets - 2,443 - 4,770 2,013 3,542 2,168 4,185 10,903 30,024 - 30,024 ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- 47,588 2,443 - 4,770 2,013 3,542 2,168 4,185 10,903 77,612 (47,588) 30,024 ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- TOTAL ASSETS $ 47,009 $ 4,456 $ 46 $ 7,387 $ 4,090 $ 6,406 $ 4,266 $ 5,608 $ 16,572 $ 95,840 $ (47,588) $ 48,252 ============= ============= ============= ============= ============= ============= ============= ============= ============= ============= ============= ============= CAPITALIZATION & LIABILITIES CAPITALIZATION: Common Stock - - - - - - - - - - - - Paid - in - Capital 47,347 4,448 340 6,861 4,040 6,286 4,314 5,582 15,476 94,694 (47,347) 47,347 Earnings Reinvested in the Business (273) - (295) 480 (37) 87 (71) - 77 (32) (241) (273) ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- Total Common Shareholder Equity Before Items of Other Comprehensive Income 47,074 4,448 45 7,341 4,003 6,373 4,243 5,582 15,553 94,662 (47,588) 47,074 Accumulated Other Comprehensive Income (Loss) (4,094) - - - - - - - - (4,094) - (4,094) ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- Total Comprehen. Shareholders' Equity 42,980 4,448 45 7,341 4,003 6,373 4,243 5,582 15,553 90,568 (47,588) 42,980 Notes Payable-Intercompany - - - - - - - - - - - - ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- Total Capitalization 42,980 4,448 45 7,341 4,003 6,373 4,243 5,582 15,553 90,568 (47,588) 42,980 ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- CURRENT AND ACCRUED LIABILITIES: Accounts Payable - 8 1 46 87 33 23 26 1,019 1,243 - 1,243 Accounts Payable - Intercompany 22 - - - - - - - - 22 - 22 Fair Value of Derivative Financial Instruments 6,761 - - - - - - - - 6,761 - 6,761 ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- 6,783 8 1 46 87 33 23 26 1,019 8,026 - 8,026 ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- DEFERRED CREDITS: Accumulated Deferred Income Taxes (2,754) - - - - - - - - (2,754) - (2,754) ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- (2,754) - - - - - - - - (2,754) - (2,754) ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- TOTAL CAPITALIZATION & LIABILITIES $ 47,009 $ 4,456 $ 46 $ 7,387 $ 4,090 $ 6,406 $ 4,266 $ 5,608 $ 16,572 $ 95,840 $ (47,588) $ 48,252 ============= ============= ============= ============= ============= ============= ============= ============= ============= ============= ============= ============= 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, 2004, incorporated herein by reference.
TORO PARTNERS, LP. CONSOLIDATING STATEMENT OF INCOME FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Toro Energy Toro Energy Toro Energy Toro Energy Toro Energy Toro Energy Toro Energy Toro Energy Consolidated Toro of Michigan, of Ohio-Statewide of Ohio, of Kentucky, of Missouri, of Maryland, of Indiana, of Ohio-American, Total Before Toro Partners, LP LLC LLC LLC LLC LLC LLC LLC LLC Eliminations Eliminations Partners, LP ------------- ------------- --------------- ------------- ------------- ------------- ------------- ------------- -------------- ------------- ------------- ------------- OPERATING REVENUE: $ 73 $ 478 $ 132 $ 2,248 $ 937 $ 1,556 $ 659 $ 1,030 $ 6,124 $ 13,237 $ - $ 13,237 ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- OPERATING EXPENSE: Purchased Gas - 214 - 446 237 426 202 452 4,015 5,992 - 5,992 Operation and Maintenance 384 33 64 328 300 351 277 173 631 2,541 - 2,541 Property, Franchise & Other Taxes - - - - - - 47 - - 47 - 47 Depreciation, Depletion and Amortization - 96 334 83 94 121 106 55 162 1,051 - 1,051 ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- 384 343 398 857 631 898 632 680 4,808 9,631 - 9,631 ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- Operating Income (Loss) (311) 135 (266) 1,391 306 658 27 350 1,316 3,606 - 3,606 ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- OTHER INCOME: Unremitted Earnings/(Loss) of Subsidiary 3,932 - - - - - - - - 3,932 (3,932) - ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- Other 14 - - - - - - - 15 29 - 29 ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- 3,946 - - - - - - - 15 3,961 (3,932) 29 ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- Net Income (Loss) Available for Common Stock $ 3,635 $ 135 $ (266) $ 1,391 $ 306 $ 658 $ 27 $ 350 $ 1,331 $ 7,567 $ (3,932) $ 3,635 ============= ============= ============= ============= ============= ============= ============= ============= ============= ============= ============= ============= 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, 2004, incorporated herein by reference.
TORO PARTNERS, LP. CONSOLIDATING STATEMENT OF EARNINGS REINVESTED IN THE BUSINESS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Toro Energy Toro Energy Toro Energy Toro Energy Toro Energy Toro Energy Toro Energy Toro Energy Consolidated EARNINGS REINVESTED IN Toro of Michigan, of Ohio-Statewide of Ohio, of Kentucky, of Missouri, of Maryland, of Indiana, of Ohio-American, Total Before Toro THE BUSINESS Partners, LP LLC LLC LLC LLC LLC LLC LLC LLC Eliminations Eliminations Partners, LP ------------- ------------- --------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- Balance at Beginning of Year $ 1,118 $ 78 $ 53 $ 309 $ 63 $ 273 $ 19 $ 108 $ - $ 2,021 $ (903) $ 1,118 Net Income (Loss) Available for Common Stock 3,635 135 (266) 1,391 306 658 27 350 1,331 7,567 (3,932) 3,635 Distributions (5,026) (213) (82) (1,220) (406) (844) (117) (458) (1,254) (9,620) 4,594 (5,026) ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- Balance at End of Year $ (273) $ - $ (295) $ 480 $ (37) $ 87 $ (71) $ - $ 77 $ (32) $ (241) $ (273) ============= ============= ============= ============= ============= ============= ============= ============= ============= ============= ============= ============= 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, 2004, incorporated herein by reference.
TORO PARTNERS, LP. CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Toro Energy Toro Energy Toro Energy Toro Energy Toro Energy Toro Energy Toro Energy Toro Energy Consolidated Toro of Michigan, of Ohio-Statewide of Ohio, of Kentucky, of Missouri, of Maryland, of Indiana, of Ohio-American, Total Before Toro Partners, LP LLC LLC LLC LLC LLC LLC LLC LLC Eliminations Eliminations Partners, LP ------------- ------------- --------------- ------------- ------------- ------------- ------------- ------------- --------------- ------------- ------------- ------------- Net Income (Loss) Available for Common Stock $ 3,635 $ 135 $ (266) $ 1,391 $ 306 $ 658 $ 27 $ 350 $ 1,331 $ 7,567 $ (3,932) $ 3,635 ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- Other Comprehensive Income, Before Tax: Unrealized Loss on Derivative Financial Instruments Arising During the Period (8,111) - - - - - - - - (8,111) - (8,111) Reclassification Adjustment for Realized Gain on Derivative Financial Instruments in Net Income (73) - - - - - - - - (73) - (73) ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- Other Comprehensive Loss, Before Tax (8,184) - - - - - - - - (8,184) - (8,184) Income Tax Benefit Related to Unrealized Loss on Derivative Financial Instruments Arising During the Period (2,918) - - - - - - - - (2,918) - (2,918) Reclassification Adjustment for Income Tax Benefit on Derivative Financial Instruments Realized In Net Income 164 - - - - - - - - 164 - 164 ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- Income Taxes - Net (2,754) - - - - - - - - (2,754) - (2,754) ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- Other Comprehensive Loss (5,430) - - - - - - - - (5,430) - (5,430) ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- Comprehensive Income (Loss) $ (1,795) $ 135 $ (266) $ 1,391 $ 306 $ 658 $ 27 $ 350 $ 1,331 $ 2,137 $ (3,932) $ (1,795) ============= ============= ============= ============= ============= ============= ============= ============= ============= ============= ============= ============= 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, 2004, incorporated herein by reference.
TORO PARTNERS, LP. CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Toro Energy Toro Energy Toro Energy Toro Energy Toro Energy Toro Energy Toro Energy Toro Energy Consolidated Toro of Michigan, of Ohio-Statewide of,Ohio, of Kentucky, of Missouri, of Maryland, of Indiana, of Ohio-American, Total Before Toro Partners, LP LLC LLC LLC LLC LLC LLC LLC LLC Eliminations Eliminations Partners, LP ------------ ------------ --------------- ------------ ------------- ------------ ------------ ------------- --------------- ------------ ------------- ------------ CASH FLOWS FROM OPERATING ACTIVITIES: Net Income (Loss) $ 3,635 $ 135 $ (266) $ 1,391 $ 306 $ 658 $ 27 $ 350 $ 1,331 $ 7,567 $ (3,932) $ 3,635 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Unremitted (Earnings) Loss of Subsidiaries (3,932) - - - - - - - - (3,932) 3,932 - Depreciation, Depletion & Amortization - 96 334 83 94 121 106 55 162 1,051 - 1,051 Other - 130 - 255 108 190 106 234 475 1,498 - 1,498 Change in: Receivables and Unbilled Utility Revenue - 20 4 (43) 12 106 (47) (10) (1,152) (1,110) - (1,110) Accounts Receivable - Intercompany (364) - - - - - - - - (364) - (364) Gas Stored Underground Prepayments (16) - - - - - (60) - - (76) (76) Accounts Payable - (14) (1) 15 (4) (15) 14 (11) 1,026 1,010 - 1,010 Accounts Payable - Intercompany 22 - - - - - - - - 22 22 Other Accruals and Current Liabilities Other Assets 1,155 - - - - - - - - 1,155 - 1,155 Other Liabilities (2,275) - - - - - - - - (2,275) - (2,275) ------------ ------------ ------------ ------------ ------------- ------------ ------------ ------------- ------------ ------------ ------------- ------------ Net Cash Provided by (Used in) Operating Activities (1,775) 367 71 1,701 516 1,060 146 618 1,842 4,546 - 4,546 ------------ ------------ ------------ ------------ ------------- ------------ ------------ ------------- ------------ ------------ ------------- ------------ CASH FLOWS FROM INVESTING ACTIVITIES: Capital Expenditures - - - - - (194) - - (3) (197) - (197) ------------ ------------ ------------ ------------ ------------- ------------ ------------ ------------- ------------ ------------ ------------- ------------ Net Cash Used in Investing Activities - - - - - (194) - - (3) (197) - (197) ------------ ------------ ------------ ------------ ------------- ------------ ------------ ------------- ------------ ------------ ------------- ------------ CASH FLOWS FROM FINANCING ACTIVITIES: Distributions (432) (358) (85) (1,220) (466) (844) (304) (537) (1,254) (5,500) (5,500) ------------ ------------ ------------ ------------ ------------- ------------ ------------ ------------- ------------ ------------ ------------- ------------ Net Cash Used in Financing Activities (432) (358) (85) (1,220) (466) (844) (304) (537) (1,254) (5,500) - (5,500) ------------ ------------ ------------ ------------ ------------- ------------ ------------ ------------- ------------ ------------ ------------- ------------ Net Increase (Decrease) in Cash and Temporary Cash Investments (2,207) 9 (14) 481 50 22 (158) 81 585 (1,151) - (1,151) Cash and Temporary Cash Investments at Beginning of Period 1,068 183 47 407 149 259 85 139 205 2,542 - 2,542 ------------ ------------ ------------ ------------ ------------- ------------ ------------ ------------- ------------ ------------ ------------- ------------ Cash and Temporary Cash Investments at End of Period $ (1,139) $ 192 $ 33 $ 888 $ 199 $ 281 $ (73) $ 220 $ 790 $ 1,391 $ - $ 1,391 ============ ============ ============ ============ ============= ============ ============ ============= ============ ============ ============= ============ 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, 2004, incorporated herein by reference.
HORIZON ENERGY DEVELOPMENT, INC. AND SUBSIDIARIES CONSOLIDATING BALANCE SHEET AT SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Horizon Horizon Energy Energy Consolidated Development, Holdings Total Before Horizon and Inc. (Consolidated) Eliminations Eliminations Subsidiaries ------------ ------------- ------------ ------------ ------------ ASSETS PROPERTY, PLANT & EQUIPMENT $ 57 $ 408,721 $ 408,778 $ - $ 408,778 Less: Accumulated DD&A 8 180,865 180,873 - 180,873 ------------ ------------- ------------ ------------ ------------ 49 227,856 227,905 - 227,905 ------------ ------------- ------------ ------------ ------------ CURRENT ASSETS: Cash and Temporary Cash Investments 25 28,332 28,357 - 28,357 Notes Receivable - Intercompany 300 - 300 - 300 Allowance for Uncollectible Accounts - (2,184) (2,184) - (2,184) Accounts Receivable - Intercompany 107 99 206 (149) 57 Accounts Receivable 145 8,447 8,592 - 8,592 Materials and Supplies - 4,079 4,079 - 4,079 Prepayments 96 626 722 - 722 ------------ ------------- ------------ ------------ ------------ 673 39,399 40,072 (149) 39,923 ------------ ------------- ------------ ------------ ------------ OTHER ASSETS: Investment in Associated Companies 184,582 - 184,582 (184,582) - Other - 284 284 - 284 Deferred Charges 6 - 6 - 6 ------------ ------------- ------------ ------------ ------------ 184,588 284 184,872 (184,582) 290 ------------ ------------- ------------ ------------ ------------ TOTAL ASSETS $ 185,310 $ 267,539 $ 452,849 $ (184,731) $ 268,118 ============ ============= ============ ============ ============ CAPITALIZATION & LIABILITIES CAPITALIZATION: Common Stock $ 5 $ 2 $ 7 $ (2) $ 5 Paid - in - Capital 38,246 116,756 155,002 (116,756) 38,246 Earnings Reinvested in the Business (17,227) 31,369 14,142 (31,369) (17,227) Accumulated Other Comprehen. Income 35,811 36,455 72,266 (36,455) 35,811 ------------ ------------- ------------ ------------ ------------ Total Common Stock Equity 56,835 184,582 241,417 (184,582) 56,835 ------------ ------------- ------------ ------------ ------------ Long-Term Debt, Net of Current Portion - 4,927 4,927 - 4,927 Notes Payable - Intercompany 89,770 - 89,770 - 89,770 ------------ ------------- ------------ ------------ ------------ Total Capitalization 146,605 189,509 336,114 (184,582) 151,532 ------------ ------------- ------------ ------------ ------------ Minority Interest in Foreign Subsidiaries - 37,048 37,048 - 37,048 ------------ ------------- ------------ ------------ ------------ CURRENT AND ACCRUED LIABILITIES: Notes Payable - Intercompany 34,700 - 34,700 - 34,700 Current Portion of Long-Term Debt - 4,927 4,927 - 4,927 Accounts Payable 134 13,052 13,186 - 13,186 Accounts Payable - Intercompany 3,664 50 3,714 (149) 3,565 Other Accruals and Current Liabilities 1,047 1,492 2,539 - 2,539 ------------ ------------- ------------ ------------ ------------ 39,545 19,521 59,066 (149) 58,917 ------------ ------------- ------------ ------------ ------------ DEFERRED CREDITS: Accumulated Deferred Income Taxes (3,280) 20,806 17,526 - 17,526 Other Deferred Credits 2,440 655 3,095 - 3,095 ------------ ------------- ------------ ------------ ------------ (840) 21,461 20,621 - 20,621 ------------ ------------- ------------ ------------ ------------ TOTAL CAPITALIZATION & LIABILITIES $ 185,310 $ 267,539 $ 452,849 $ (184,731) $ 268,118 ============ ============= ============ ============ ============ 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, 2004, incorporated herein by reference.
HORIZON ENERGY DEVELOPMENT, INC. AND SUBSIDIARIES CONSOLIDATING STATEMENT OF INCOME FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Horizon Energy Horizon Energy Consolidated Development, Holdings Total Before Eliminations Horizon and Inc. (Consolidated) Eliminations (Dr) Cr Subsidiaries ------------ ------------- ------------ ------------ ------------ OPERATING REVENUE: $ 117 $ 123,512 $ 123,629 $ (204) $ 123,425 ------------ ------------- ------------ ------------ ------------ OPERATING EXPENSE: Fuel Used in Heat and Electric Generation - 65,723 65,723 - 65,723 Operation and Maintenance 4,695 27,993 32,688 (204) 32,484 Property, Franchise & Other Taxes 24 3,133 3,157 - 3,157 Depreciation, Depletion and Amortization (12) 15,269 15,257 - 15,257 ------------ ------------- ------------ ------------ ------------ 4,707 112,118 116,825 (204) 116,621 ------------ ------------- ------------ ------------ ------------ Operating Income (Loss) (4,590) 11,394 6,804 - 6,804 ------------ ------------- ------------ ------------ ------------ OTHER INCOME (EXPENSE): Unremitted Earnings of Subsidiaries 11,870 - 11,870 (11,870) - Interest - Intercompany 4 - 4 - 4 Other Income 16 2,035 2,051 - 2,051 Interest on Long-Term Debt - (837) (837) - (837) Interest-Intercompany (5,891) - (5,891) - (5,891) Other Interest (352) - (352) - (352) ------------ ------------- ------------ ------------ ------------ Income (Loss) Before Income Taxes and and Minority Interest in Foreign Subsidiaries 1,057 12,592 13,649 (11,870) 1,779 ------------ ------------- ------------ ------------ ------------ Income Taxes (4,926) (1,211) (6,137) - (6,137) Minority Interest in Foreign Subsidiaries - (1,933) (1,933) - (1,933) ------------ ------------- ------------ ------------ ------------ Net Income (Loss) Available for Common Stock $ 5,983 $ 11,870 $ 17,853 $ (11,870) $ 5,983 ============ ============= ============ ============ ============ 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, 2004, 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, 2004 (THOUSANDS OF DOLLARS) Horizon Energy Horizon Energy Consolidated EARNINGS REINVESTED Development, Holdings Total Before Eliminations Horizon and IN THE BUSINESS Inc. (Consolidated) Eliminations (Dr) Cr Subsidiaries ------------ ------------- ------------ ------------ ------------ Balance at Beginning of Year $ (23,210) $ 19,499 $ (3,711) $ (19,499) $ (23,210) Net Income (Loss) Available for Common Stock 5,983 11,870 17,853 (11,870) 5,983 ------------ ------------- ------------ ------------ ------------ Balance at End of Year $ (17,227) $ 31,369 $ 14,142 $ (31,369) $ (17,227) ============ ============= ============ ============ ============ 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, 2004, incorporated herein by reference.
HORIZON ENERGY DEVELOPMENT, INC. AND SUBSIDIARIES CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Horizon Energy Horizon Energy Total Before Consolidated Development, Holdings Eliminations Eliminations Horizon and Inc. (Consolidated) & Adjustments (Dr) Cr Subsidiaries ------------ ------------- ------------ ------------ ------------ Net Income (Loss) Available for Common Stock $ 5,983 $ 11,870 $ 17,853 $ (11,870) $ 5,983 ------------ ------------- ------------ ------------ ------------ Other Comprehensive Income (Loss) : Foreign Currency Translation Adjustment 13,989 13,989 27,978 (13,989) 13,989 ------------ ------------- ------------ ------------ ------------ Other Comprehensive Income (Loss) 13,989 13,989 27,978 (13,989) 13,989 ------------ ------------- ------------ ------------ ------------ Comprehensive Income (Loss) $ 19,972 $ 25,859 $ 45,831 $ (25,859) $ 19,972 ============ ============= ============ ============ ============ 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, 2004, incorporated herein by reference.
HORIZON ENERGY DEVELOPMENT, INC. AND SUBSIDIARIES CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Horizon Energy Horizon EnergyTotal Before Consolidated Development, Holdings Eliminations Eliminations Horizon and Inc. (Consolidated)& Adjustments & Adjustments Subsidiaries ------------ -------------------------- ------------ ------------ CASH FLOWS FROM OPERATING ACTIVITIES: Net Income (Loss) $ 5,983 $ 11,870 $ 17,853 $ (11,870) $ 5,983 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Unremitted Earnings of Subsidiaries (11,870) - (11,870) 11,870 - Depreciation, Depletion & Amortization (12) 15,269 15,257 - 15,257 Deferred Income Taxes (1,198) (3,505) (4,703) - (4,703) Minority Interest in Foreign Subsidiaries - 1,933 1,933 - 1,933 Other - (420) (420) - (420) Change in: Accounts Receivable - Intercompany (85) - (85) 50 (35) Receivables and Unbilled Utility Revenue (72) (811) (883) - (883) Material and Supplies - (25) (25) - (25) Prepayments (97) (513) (610) - (610) Accounts Payable 22 (1,619) (1,597) (35) (1,632) Accounts Payable - Intercompany 935 15 950 (15) 935 Other Accruals and Current Liabilities 881 608 1,489 - 1,489 Other Assets 26 76 102 - 102 Other Liabilities 113 (7) 106 - 106 ------------ ------------ ------------ ------------ ------------ Net Cash Provided by (Used in) Operations (5,374) 22,871 17,497 - 17,497 ------------ ------------ ------------ ------------ ------------ CASH FLOWS FROM INVESTING ACTIVITIES: Capital Expenditures (48) (7,450) (7,498) - (7,498) Change in Notes Receivable - Intercompany 300 - 300 - 300 Other - 1,011 1,011 - 1,011 ------------ ------------ ------------ ------------ ------------ Net Cash Provided by (Used In) Investing Activities 252 (6,439) (6,187) - (6,187) ------------ ------------ ------------ ------------ ------------ CASH FLOWS FROM FINANCING ACTIVITIES: Change in Notes Payable - Intercompany 5,000 - 5,000 - 5,000 Reduction of Long-Term Debt - (8,540) (8,540) - (8,540) ------------ ------------ ------------ ------------ ------------ Net Cash Provided by (Used in) Financing Activities 5,000 (8,540) (3,540) - (3,540) ------------ ------------ ------------ ------------ ------------ Effect of Exchange Rates on Cash - 2,248 2,248 - 2,248 ------------ ------------ ------------ ------------ ------------ Net Increase (Decrease) in Cash and Temporary Cash Investments (122) 10,140 10,018 - 10,018 Cash and Temporary Cash Investments of Beginning of Period 147 18,192 18,339 - 18,339 ------------ ------------ ------------ ------------ ------------ Cash and Temporary Cash Investments at End of Year $ 25 $ 28,332 $ 28,357 $ - $ 28,357 ============ ============ ============ ============ ============ 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, 2004, incorporated herein by reference.
HORIZON ENERGY HOLDINGS CONSOLIDATING BALANCE SHEET AT SEPTEMBER 30, 2004 (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 $ - $ 408,721 $ 408,721 $ - $ 408,721 Less: Accumulated DD&A - 180,865 180,865 - 180,865 ----------- ------------ ----------- ----------- ----------- - 227,856 227,856 - 227,856 ----------- ------------ ----------- ----------- ----------- CURRENT ASSETS: Cash and Temporary Cash Investments - 28,332 28,332 - 28,332 Allowance for Uncollectible Accounts - (2,184) (2,184) - (2,184) Accounts Receivable - Intercompany - 99 99 - 99 Accounts Receivable - 8,447 8,447 - 8,447 Materials and Supplies - 4,079 4,079 - 4,079 Prepayments - 626 626 - 626 ----------- ------------ ----------- ----------- ----------- - 39,399 39,399 - 39,399 ----------- ------------ ----------- ----------- ----------- OTHER ASSETS: Investment in Associated Companies 185,042 - 185,042 (185,042) - Other Assets - 284 284 - 284 ----------- ------------ ----------- ----------- ----------- 185,042 284 185,326 (185,042) 284 ----------- ------------ ----------- ----------- ----------- TOTAL ASSETS $ 185,042 $ 267,539 $ 452,581 $ (185,042) $ 267,539 =========== ============ =========== =========== =========== CAPITALIZATION & LIABILITIES CAPITALIZATION: Common Stock $ 2 $ 29 $ 31 $ (29) $ 2 Paid - in - Capital 116,756 111,621 228,377 (111,621) 116,756 Earnings Reinvested in the Business 31,369 37,579 68,948 (37,579) 31,369 Accumulated Other Comprehen. Income 36,455 35,813 72,268 (35,813) 36,455 ----------- ------------ ----------- ----------- ----------- Total Common Stock Equity 184,582 185,042 369,624 (185,042) 184,582 ----------- ------------ ----------- ----------- ----------- Long-Term Debt, Net of Current Portion - 4,927 4,927 - 4,927 ----------- ------------ ----------- ----------- ----------- Total Capitalization 184,582 189,969 374,551 (185,042) 189,509 ----------- ------------ ----------- ----------- ----------- Minority Interest in Foreign Subsidiaries - 37,048 37,048 - 37,048 ----------- ------------ ----------- ----------- ----------- CURRENT AND ACCRUED LIABILITIES: Current Portion of Long-Term Debt - 4,927 4,927 - 4,927 Accounts Payable - 13,052 13,052 - 13,052 Accounts Payable - Intercompany - 50 50 - 50 Other Accruals and Current Liabilities 461 1,031 1,492 - 1,492 ----------- ------------ ----------- ----------- ----------- 461 19,060 19,521 - 19,521 ----------- ------------ ----------- ----------- ----------- DEFERRED CREDITS: Accumulated Deferred Income Taxes (1) 20,807 20,806 - 20,806 Other Deferred Credits - 655 655 - 655 ----------- ------------ ----------- ----------- ----------- (1) 21,462 21,461 - 21,461 ----------- ------------ ----------- ----------- ----------- TOTAL CAPITALIZATION & LIABILITIES $ 185,042 $ 267,539 $ 452,581 $ (185,042) $ 267,539 =========== ============ =========== =========== =========== 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, 2004, incorporated herein by reference.
HORIZON ENERGY HOLDINGS CONSOLIDATING STATEMENT OF INCOME FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (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: $ - $ 123,512 $ 123,512 $ - $ 123,512 ----------- ------------ ----------- ----------- ----------- OPERATING EXPENSE: Fuel Used in Heat and Electric Generation - 65,723 65,723 - 65,723 Operation - 27,993 27,993 - 27,993 Property, Franchise & Other Taxes - 3,133 3,133 - 3,133 Depreciation, Depletion and Amortization - 15,269 15,269 - 15,269 ----------- ------------ ----------- ----------- ----------- - 112,118 112,118 - 112,118 ----------- ------------ ----------- ----------- ----------- Operating Income (Loss) - 11,394 11,394 - 11,394 ----------- ------------ ----------- ----------- ----------- OTHER INCOME (EXPENSE): Unremitted Earnings of Subsidiaries 12,330 - 12,330 (12,330) - Other Income - 2,035 2,035 - 2,035 Interest on Long-Term Debt - (837) (837) - (837) ----------- ------------ ----------- ----------- ----------- Income (Loss) Before Income Taxes and and Minority Interest in Foreign Subsidiaries 12,330 12,592 24,922 (12,330) 12,592 ----------- ------------ ----------- ----------- ----------- Income Taxes 460 (1,671) (1,211) - (1,211) Minority Interest in Foreign Subsidiaries - (1,933) (1,933) - (1,933) ----------- ------------ ----------- ----------- ----------- Net Income (Loss) Available for Common Stock $ 11,870 $ 12,330 $ 24,200 $ (12,330) $ 11,870 =========== ============ =========== =========== =========== 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, 2004, incorporated herein by reference.
HORIZON ENERGY HOLDINGS CONSOLIDATING STATEMENT OF EARNINGS REINVESTED IN THE BUSINESS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (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 $ 19,499 $ 25,249 $ 44,748 $ (25,249) $ 19,499 Net Income (Loss) Available for Common Stock 11,870 12,330 24,200 (12,330) 11,870 ----------- ------------ ----------- ----------- ----------- Balance at End of Year $ 31,369 $ 37,579 $ 68,948 $ (37,579) $ 31,369 =========== ============ =========== =========== =========== 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, 2004, incorporated herein by reference.
HORIZON ENERGY HOLDINGS CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (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 $ 11,870 $ 12,330 $ 24,200 $ (12,330) $ 11,870 ----------- ------------ ----------- ----------- ----------- Other Comprehensive Income (Loss) : Foreign Currency Translation Adjustment 13,989 13,989 27,978 (13,989) 13,989 ----------- ------------ ----------- ----------- ----------- Other Comprehensive Income (Loss) 13,989 13,989 27,978 (13,989) 13,989 ----------- ------------ ----------- ----------- ----------- Comprehensive Income (Loss) $ 25,859 $ 26,319 $ 52,178 $ (26,319) $ 25,859 =========== ============ =========== =========== =========== 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, 2004, incorporated herein by reference.
HORIZON ENERGY HOLDINGS CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (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) $ 11,870 $ 12,330 $ 24,200 $ (12,330) $ 11,870 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Unremitted Earn. of Subsidiaries (12,330) - (12,330) 12,330 - Depreciation, Depletion & Amortization - 15,269 15,269 - 15,269 Deferred Income Taxes - (3,505) (3,505) - (3,505) Minority Interest in Foreign Subsidiaries - 1,933 1,933 - 1,933 Other - (420) (420) - (420) Change in: Receivables and Unbilled Utility Revenue - (811) (811) - (811) Material and Supplies - (25) (25) - (25) Prepayments - (513) (513) - (513) Accounts Payable - (1,619) (1,619) - (1,619) Accounts Payable - Intercompany - 15 15 - 15 Other Accruals and Current Liabilities 460 148 608 - 608 Other Assets - 76 76 - 76 Other Liabilities - (7) (7) - (7) ----------- ----------- ----------- ----------- ----------- Net Cash Provided by (Used in) Operations - 22,871 22,871 - 22,871 ----------- ----------- ----------- ----------- ----------- CASH FLOWS FROM INVESTING ACTIVITIES: Capital Expenditures - (7,450) (7,450) - (7,450) Other - 1,011 1,011 - 1,011 ----------- ----------- ----------- ----------- ----------- Net Cash Provided by (Used In) Investing Activities - (6,439) (6,439) - (6,439) ----------- ----------- ----------- ----------- ----------- CASH FLOWS FROM FINANCING ACTIVITIES: Reduction of Long-Term Debt - (8,540) (8,540) - (8,540) ----------- ----------- ----------- ----------- ----------- Net Cash Provided by (Used in) Financing Activities - (8,540) (8,540) - (8,540) ----------- ----------- ----------- ----------- ----------- Effect of Exchange Rates on Cash - 2,248 2,248 - 2,248 ----------- ----------- ----------- ----------- ----------- Net Increase (Decrease) in Cash and Temporary Cash Investments - 10,140 10,140 - 10,140 Cash and Temporary Cash Investments of Beginning of Period - 18,192 18,192 - 18,192 ----------- ----------- ----------- ----------- ----------- Cash and Temporary Cash Investments at End of Year $ - $ 28,332 $ 28,332 $ - $ 28,332 =========== =========== =========== =========== =========== 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, 2004, incorporated herein by reference.
HORIZON ENERGY DEVELOPMENT, B.V. CONSOLIDATING BALANCE SHEET AT SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) United Energy, a.s. Horizon Energy Consolidated (UE) Horizon Energy Bulgaria Ltd. Total Before Horizon B.V. Horizon B.V.(Consolidated) Development, s.r.o. (Consolidated) Eliminations Eliminations and Subsidiaries ----------- ------------- ------------------- -------------- ------------- ----------- ---------------- ASSETS PROPERTY, PLANT & EQUIPMENT $ - $ 408,505 $ 216 $ - $ 408,721 $ - $ 408,721 Less: Accumulated DD&A - 180,662 203 - 180,865 - 180,865 ----------- ----------- ------------- ---------- ---------- ---------- ----------- - 227,843 13 - 227,856 - 227,856 ----------- ----------- ------------- ---------- ---------- ---------- ----------- CURRENT ASSETS: Cash and Temporary Cash Investments 58 26,966 1,233 75 28,332 - 28,332 Allowance for Uncollectible Accounts - (2,184) - - (2,184) - (2,184) Accounts Receivable - Intercompany 400 - 294 - 694 (595) 99 Accounts Receivable 3 8,467 (23) - 8,447 - 8,447 Materials and Supplies - 4,079 - - 4,079 - 4,079 Prepayments - 595 5 26 626 - 626 ----------- ----------- ------------- ---------- ---------- ---------- ----------- 461 37,923 1,509 101 39,994 (595) 39,399 ----------- ----------- ------------- ---------- ---------- ---------- ----------- OTHER ASSETS: Investment in Associated Companies 184,687 - - - 184,687 (184,687) - Other Assets (40) 324 - - 284 - 284 ----------- ----------- ------------- ---------- ---------- ---------- ----------- 184,647 324 - - 184,971 (184,687) 284 ----------- ----------- ------------- ---------- ---------- ---------- ----------- TOTAL ASSETS $ 185,108 $ 266,090 $ 1,522 $ 101 $ 452,821 $ (185,282) $ 267,539 =========== =========== ============= ========== ========== ========== =========== CAPITALIZATION & LIABILITIES CAPITALIZATION: Common Stock $ 29 $ 59,770 $ (1,246) $ 50 $ 58,603 $ (58,574) $ 29 Paid - in - Capital 111,621 50,822 1,487 - 163,930 (52,309) 111,621 Earnings Reinvest. in the Business 37,579 37,299 676 (415) 75,139 (37,560) 37,579 Accumulated Other Comprehen. Income 35,813 35,723 525 (4) 72,057 (36,244) 35,813 ----------- ----------- ------------- ---------- ---------- ---------- ----------- Total Common Stock Equity 185,042 183,614 1,442 (369) 369,729 (184,687) 185,042 ----------- ----------- ------------- ---------- ---------- ---------- ----------- Long-Term Debt, Net of Current Portion - 4,927 - - 4,927 - 4,927 ----------- ----------- ------------- ---------- ---------- ---------- ----------- Total Capitalization 185,042 188,541 1,442 (369) 374,656 (184,687) 189,969 ----------- ----------- ------------- ---------- ---------- ---------- ----------- Minority Interest in Foreign Subsidiaries - 37,048 - - 37,048 - 37,048 ----------- ----------- ------------- ---------- ---------- ---------- ----------- CURRENT AND ACCRUED LIABILITIES: Current Portion of Long-Term Debt - 4,927 - - 4,927 - 4,927 Accounts Payable 1 13,000 54 (9) 13,046 6 13,052 Accounts Payable - Intercompany 56 116 - 479 651 (601) 50 Other Accruals and Current Liabilities 9 996 26 - 1,031 - 1,031 ----------- ----------- ------------- ---------- ---------- ---------- ----------- 66 19,039 80 470 19,655 (595) 19,060 ----------- ----------- ------------- ---------- ---------- ---------- ----------- DEFERRED CREDITS: Accumulated Deferred Income Taxes - 20,807 - - 20,807 - 20,807 Other Deferred Credits - 655 - - 655 - 655 ----------- ----------- ------------- ---------- ---------- ---------- ----------- - 21,462 - - 21,462 - 21,462 ----------- ----------- ------------- ---------- ---------- ---------- ----------- TOTAL CAPITALIZATION & LIABILITIES $ 185,108 $ 266,090 $ 1,522 $ 101 $ 452,821 $ (185,282) $ 267,539 =========== =========== ============= ========== ========== ========== =========== 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, 2004, incorporated herein by reference.
HORIZON ENERGY DEVELOPMENT, B.V. CONSOLIDATING STATEMENT OF INCOME FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Horizon Energy Consolidated UE Horizon Energy Bulgaria Ltd. Total Before Eliminations Horizon B.V. Horizon B.V.(Consolidated)Development, s.r.o. (Consolidated) Eliminations (Dr) Cr and Subsidiaries ----------- ------------ ------------------- -------------- ------------ ------------ ----------------- OPERATING REVENUE: $ - $ 123,425 $ 1,245 $ - $ 124,670 $ (1,158) $ 123,512 ----------- ----------- ------------- ---------- ---------- ---------- ----------- OPERATING EXPENSE: Fuel Used in Heat and Electric Generation - 65,723 - - 65,723 - 65,723 Operation and Maintenance 64 27,680 986 421 29,151 (1,158) 27,993 Property, Franchise & Other Taxes - 2,993 140 - 3,133 - 3,133 Depreciation, Depletion and Amortization - 15,262 7 - 15,269 - 15,269 ----------- ----------- ------------- ---------- ---------- ---------- ----------- 64 111,658 1,133 421 113,276 (1,158) 112,118 ----------- ----------- ------------- ---------- ---------- ---------- ----------- Operating Income (Loss) (64) 11,767 112 (421) 11,394 - 11,394 ----------- ----------- ------------- ---------- ---------- ---------- ----------- OTHER INCOME (EXPENSE): Unremitted Earnings of Subsidiaries 12,360 - - - 12,360 (12,360) - Other Income 30 1,968 22 15 2,035 - 2,035 Interest on Long-Term Debt - (837) - - (837) - (837) Interest - Intercompany 4 - - (4) - - - ----------- ----------- ------------- ---------- ---------- ---------- ----------- Income (Loss) Before Income Taxes and and Minority Interest in Foreign Subsidiaries 12,330 12,898 134 (410) 24,952 (12,360) 12,592 ----------- ----------- ------------- ---------- ---------- ---------- ----------- Income Taxes - (1,708) 32 5 (1,671) - (1,671) Minority Interest in Foreign Subsidiaries - (1,933) - - (1,933) - (1,933) ----------- ----------- ------------- ---------- ---------- ---------- ----------- Net Income (Loss) Available for Common Stock $ 12,330 $ 12,673 $ 102 $ (415) $ 24,690 $ (12,360) $ 12,330 =========== =========== ============= ========== ========== ========== =========== 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, 2004, incorporated herein by reference.
HORIZON ENERGY DEVELOPMENT, B.V. CONSOLIDATING STATEMENT OF EARNINGS REINVESTED IN THE BUSINESS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Horizon Energy Consolidated EARNINGS REINVESTED UE Horizon Energy Bulgaria Ltd. Total Before Eliminations Horizon B.V. IN THE BUSINESS Horizon B.V.(Consolidated) Development, s.r.o. (Consolidated Eliminations (Dr) Cr and Subsidiaries ----------- ------------ ------------------ ------------- ------------ ------------ ---------------- Balance at Beginning of Year $ 25,249 $ 24,626 $ 574 $ - $ 50,449 $ (25,200) $ 25,249 Net Income (Loss) Available for Common Stock 12,330 12,673 102 (415) 24,690 (12,360) 12,330 ----------- ----------- ------------- -------- ---------- ---------- ----------- Balance at End of Year $ 37,579 $ 37,299 $ 676 $ (415) $ 75,139 $ (37,560) $ 37,579 =========== =========== ============= ========= ========== ========== =========== 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, 2004, incorporated herein by reference.
HORIZON ENERGY DEVELOPMENT, B.V. CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Horizon Energy Consolidated UE Horizon Energy Bulgaria Ltd. Total Before Eliminations Horizon B.V. Horizon B.V.(Consolidated) Development, s.r.o. (Consolidated) Eliminations (Dr) Cr and Subsidiaries ----------- ------------ ------------------- ------------- ------------ ------------ ---------------- Net Income (Loss) Available for Common Stock $ 12,330 $ 12,673 $ 102 $ (415) $ 24,690 $ (12,360) $ 12,330 ----------- ----------- ------------- ---------- ---------- ---------- ----------- Other Comprehensive Income (Loss): Foreign Currency Translation Adjustment 13,989 13,962 97 (4) 28,044 (14,055) 13,989 ----------- ----------- ------------- ---------- ---------- ---------- ----------- Other Comprehensive Income (Loss) 13,989 13,962 97 (4) 28,044 (14,055) 13,989 ----------- ----------- ------------- ---------- ---------- ---------- ----------- Comprehensive Income (Loss) $ 26,319 $ 26,635 $ 199 $ (419) $ 52,734 $ (26,415) $ 26,319 =========== =========== ============= ========== ========== ========== =========== 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, 2004, incorporated herein by reference.
HORIZON ENERGY DEVELOPMENT, B.V. CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Horizon Energy Consolidated UE Horizon Energy Bulgaria Ltd. Total Before Horizon B.V. Horizon B.V.(Consolidated) Development, (Consolidated) Eliminations Eliminations and Subsidiaries ----------- ------------ ------------- ------------- ------------ ------------ ---------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net Income (Loss) $ 12,330 $ 12,673 $ 102 $ (415) $ 24,690 $ (12,360) $ 12,330 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Unremitted Earnings of Subsidiaries (12,360) - - - (12,360) 12,360 - Depreciation, Depletion & Amortization - 15,262 7 - 15,269 - 15,269 Deferred Income Taxes - (3,503) (2) - (3,505) - (3,505) Minority Interest in Foreign Subsidiaries - 1,933 - - 1,933 - 1,933 Other - (420) - - (420) - (420) Change in: Accounts Receivable - Intercompany (400) - (115) - (515) 515 - Receivables and Unbilled Utility Revenue (4) (830) 23 - (811) - (811) Material and Supplies - (25) - - (25) - (25) Prepayments - (486) (1) (26) (513) - (513) Accounts Payable 6 (1,582) 2 (9) (1,583) (36) (1,619) Accounts Payable - Intercompany 15 - - 479 494 (479) 15 Other Accruals and Current Liabilities - 107 41 - 148 - 148 Other Assets - 76 - - 76 - 76 Other Liabilities - (7) - - (7) - (7) ----------- ----------- ------------------------ ----------- ----------- ------------ Net Cash Provided by (Used in) Operations (413) 23,198 57 29 22,871 - 22,871 ----------- ----------- ------------------------ ----------- ----------- ------------ CASH FLOWS FROM INVESTING ACTIVITIES: Capital Expenditures - (7,450) - - (7,450) - (7,450) Investment in Associated Companies (50) - - - (50) 50 - Other - 735 276 - 1,011 - 1,011 ----------- ----------- ------------------------ ----------- ----------- ------------ Net Cash Provided by (Used In) Investing Activities (50) (6,715) 276 - (6,489) 50 (6,439) ----------- ----------- ------------------------ ----------- ----------- ------------ CASH FLOWS FROM FINANCING ACTIVITIES: Return of Capital - - - 50 50 (50) - Reduction of Long-Term Debt - (8,540) - - (8,540) - (8,540) ----------- ----------- ------------------------ ----------- ----------- ------------ Net Cash Provided by (Used in) Financing Activities - (8,540) - 50 (8,490) (50) (8,540) ----------- ----------- ------------------------ ----------- ----------- ------------ Effect of Exchange Rates on Cash (65) 2,231 86 (4) 2,248 - 2,248 ----------- ----------- ------------------------ ----------- ----------- ------------ Net Increase (Decrease) in Cash and Temporary Cash Investments (528) 10,174 419 75 10,140 - 10,140 Cash and Temporary Cash Investments of Beginning of Period 586 16,792 814 - 18,192 - 18,192 ----------- ----------- ----------- ----------- ----------- ----------- ------------ Cash and Temporary Cash Investments at End of Year $ 58 $ 26,966 $ 1,233 $ 75 $ 28,332 $ - $ 28,332 =========== =========== =========== =========== =========== =========== ============ 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, 2004, incorporated herein by reference.
UNITED ENERGY, a.s. CONSOLIDATING BALANCE SHEET AT SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Consolidated Teplarna Total Before UE and UE Liberec ENOP Eliminations Eliminations Subsidiaries ----------- ------------ ----------- ----------- ------------ ----------- ASSETS PROPERTY, PLANT & EQUIPMENT $ 381,825 $ 26,634 $ 46 $ 408,505 $ - $ 408,505 Less: Accumulated DD&A 169,971 10,664 27 180,662 - 180,662 ----------- ------------ ----------- ----------- ------------ ----------- 211,854 15,970 19 227,843 - 227,843 ----------- ------------ ----------- ----------- ------------ ----------- CURRENT ASSETS: Cash and Temporary Cash Investments 26,228 340 398 26,966 - 26,966 Allowance for Uncollectible Accounts (1,549) (630) (5) (2,184) - (2,184) Accounts Receivable 6,196 2,265 6 8,467 - 8,467 Materials and Supplies 3,849 230 - 4,079 - 4,079 Prepayments 584 11 - 595 - 595 ----------- ------------ ----------- ----------- ------------ ----------- 35,308 2,216 399 37,923 - 37,923 ----------- ------------ ----------- ----------- ------------ ----------- OTHER ASSETS: Investment in Associated Companies 12,199 - - 12,199 (12,199) - Other Assets 239 85 - 324 - 324 ----------- ------------ ----------- ----------- ------------ ----------- 12,438 85 - 12,523 (12,199) 324 ----------- ------------ ----------- ----------- ------------ ----------- TOTAL ASSETS $ 259,600 $ 18,271 $ 418 $ 278,289 $ (12,199) $ 266,090 =========== ============ =========== =========== ============ =========== CAPITALIZATION & LIABILITIES CAPITALIZATION: Common Stock $ 59,770 $ 17,004 $ 3 $ 76,777 $ (17,007) $ 59,770 Paid - in - Capital 50,822 (5,723) 883 45,982 4,840 50,822 Earnings Reinvested in the Business 37,299 (619) (551) 36,129 1,170 37,299 Accumulated Other Comprehen.Income 35,723 1,143 59 36,925 (1,202) 35,723 ----------- ------------ ----------- ----------- ------------ ----------- Total Common Stock Equity 183,614 11,805 394 195,813 (12,199) 183,614 ----------- ------------ ----------- ----------- ------------ ----------- Long-Term Debt, Net of Current Portion 4,927 - - 4,927 - 4,927 ----------- ------------ ----------- ----------- ------------ ----------- Total Capitalization 188,541 11,805 394 200,740 (12,199) 188,541 ----------- ------------ ----------- ----------- ------------ ----------- Minority Interest in Foreign Subsidiaries 31,989 5,059 - 37,048 - 37,048 ----------- ------------ ----------- ----------- ------------ ----------- CURRENT AND ACCRUED LIABILITIES: Current Portion of Long-Term Debt 4,927 - - 4,927 - 4,927 Accounts Payable 11,611 1,388 1 13,000 - 13,000 Accounts Payable - Intercompany 93 23 - 116 - 116 Other Accruals and Current Liabilities 1,431 (458) 23 996 - 996 ----------- ------------ ----------- ----------- ------------ ----------- 18,062 953 24 19,039 - 19,039 ----------- ------------ ----------- ----------- ------------ ----------- DEFERRED CREDITS: Accumulated Deferred Income Taxes 20,353 454 - 20,807 - 20,807 Other Deferred Credits 655 - - 655 - 655 ----------- ------------ ----------- ----------- ------------ ----------- 21,008 454 - 21,462 - 21,462 ----------- ------------ ----------- ----------- ------------ ----------- TOTAL CAPITALIZATION & LIABILITIES $ 259,600 $ 18,271 $ 418 $ 278,289 $ (12,199) $ 266,090 =========== ============ =========== =========== ============ =========== 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, 2004, incorporated herein by reference.
UNITED ENERGY, a.s. CONSOLIDATING STATEMENT OF INCOME FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Consolidated Teplarna Total Before Eliminations UE and UE Liberec ENOP Eliminations (Dr) Cr Subsidiaries ----------- ------------ ----------- ----------- ------------ ----------- OPERATING REVENUE: $ 103,834 $ 22,596 $ 4 $ 126,434 $ (3,009) $ 123,425 ----------- ------------ ----------- ----------- ------------ ----------- OPERATING EXPENSE: Fuel Used in Heat and Electric Generation 50,323 15,400 - 65,723 - 65,723 Operation and Maintenance 23,647 7,032 10 30,689 (3,009) 27,680 Property, Franchise & Other Taxes 2,552 441 - 2,993 - 2,993 Depreciation, Depletion and Amortization 13,916 1,342 4 15,262 - 15,262 ----------- ------------ ----------- ----------- ------------ ----------- 90,438 24,215 14 114,667 (3,009) 111,658 ----------- ------------ ----------- ----------- ------------ ----------- Operating Income (Loss) 13,396 (1,619) (10) 11,767 - 11,767 ----------- ------------ ----------- ----------- ------------ ----------- OTHER INCOME (EXPENSE): Unremitted Earnings of Subsidiaries (791) - - (791) 791 - Other Income 1,917 47 4 1,968 - 1,968 Interest on Long-Term Debt (837) - - (837) - (837) ----------- ------------ ----------- ----------- ------------ ----------- Income (Loss) Before Income Taxes and and Minority Interest in Foreign Subsidiaries 13,685 (1,572) (6) 12,107 791 12,898 ----------- ------------ ----------- ----------- ------------ ----------- Income Taxes (1,196) (656) 144 (1,708) - (1,708) Minority Interest in Foreign Subsidiaries (2,208) 275 - (1,933) - (1,933) ----------- ------------ ----------- ----------- ------------ ----------- Net Income (Loss) Available for Common Stock $ 12,673 $ (641) $ (150) $ 11,882 $ 791 $ 12,673 =========== ============ =========== =========== ============ =========== 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, 2004, incorporated herein by reference.
UNITED ENERGY, a.s. CONSOLIDATING STATEMENT OF EARNINGS REINVESTED IN THE BUSINESS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Consolidated EARNINGS REINVESTED Teplarna Total Before Eliminations UE and IN THE BUSINESS UE Liberec ENOP Eliminations (Dr) Cr Subsidiaries ----------- ------------ ----------- ----------- ------------ ----------- Balance at Beginning of Year $ 24,626 $ 22 $ (401) $ 24,247 $ 379 $ 24,626 Net Income (Loss) Available for Common Stock 12,673 (641) (150) 11,882 791 12,673 ----------- ------------ ----------- ----------- ------------ ----------- Balance at End of Year $ 37,299 $ (619) $ (551) $ 36,129 $ 1,170 $ 37,299 =========== ============ =========== =========== ============ =========== 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, 2004, incorporated herein by reference.
UNITED ENERGY, a.s. CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Consolidated Teplarna Total Before Eliminations UE and UE Liberec ENOP Eliminations (Dr) Cr Subsidiaries ----------- ------------ ----------- ----------- ------------ ----------- Net Income (Loss) Available for Common Stock $ 12,673 $ (641) $ (150) $ 11,882 $ 791 $ 12,673 ----------- ------------ ----------- ----------- ------------ ----------- Other Comprehensive Income (Loss): Foreign Currency Translation Adjustment 13,962 905 31 14,898 (936) 13,962 ----------- ------------ ----------- ----------- ------------ ----------- Other Comprehensive Income (Loss) 13,962 905 31 14,898 (936) 13,962 ----------- ------------ ----------- ----------- ------------ ----------- Comprehensive Income (Loss) $ 26,635 $ 264 $ (119) $ 26,780 $ (145) $ 26,635 =========== ============ =========== =========== ============ =========== 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, 2004, incorporated herein by reference.
UNITED ENERGY, a.s. CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Total Before Consolidated Teplarna Eliminations UE and UE Liberec ENOP & Adjustments Eliminations Subsidiaries ----------- ------------ ------------ ------------ ------------ ------------ CASH FLOWS FROM OPERATING ACTIVITIES: Net Income (Loss) $ 12,673 $ (641) $ (150) $ 11,882 $ 791 $ 12,673 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Unremitted Earnings of Subsidiaries 791 - - 791 (791) - Depreciation, Depletion & Amortization 13,916 1,342 4 15,262 - 15,262 Deferred Income Taxes (2,992) (655) 144 (3,503) - (3,503) Minority Interest in Foreign Subsidiaries 2,208 (275) - 1,933 - 1,933 Other (420) - - (420) - (420) Change in: Receivables and Unbilled Utility Revenue (985) 155 - (830) - (830) Material and Supplies 17 (42) - (25) - (25) Prepayments (489) 3 - (486) - (486) Accounts Payable (1,981) 403 - (1,578) (4) (1,582) Accounts Payable - Intercompany (4) - - (4) 4 - Other Accruals and Current Liabilities 391 (284) - 107 - 107 Other Assets 144 (68) - 76 - 76 Other Liabilities (7) - - (7) - (7) ----------- ------------ ------------ ------------ ------------ ------------ Net Cash Provided by (Used in) Operations 23,262 (62) (2) 23,198 - 23,198 ----------- ------------ ------------ ------------ ------------ ------------ CASH FLOWS FROM INVESTING ACTIVITIES: Capital Expenditures (5,471) (1,979) - (7,450) - (7,450) Other 729 6 - 735 - 735 ----------- ------------ ------------ ------------ ------------ ------------ Net Cash Provided by (Used In) Investing Activities (4,742) (1,973) - (6,715) - (6,715) ----------- ------------ ------------ ------------ ------------ ------------ CASH FLOWS FROM FINANCING ACTIVITIES: Reduction of Long-Term Debt (8,540) - - (8,540) - (8,540) ----------- ------------ ------------ ------------ ------------ ------------ Net Cash Provided by (Used in) Financing Activities (8,540) - - (8,540) - (8,540) ----------- ------------ ------------ ------------ ------------ ------------ Effect of Exchange Rates on Cash 2,051 151 29 2,231 - 2,231 ----------- ------------ ------------ ------------ ------------ ------------ Net Increase (Decrease) in Cash and Temporary Cash Investments 12,031 (1,884) 27 10,174 - 10,174 Cash and Temporary Cash Investments of Beginning of Period 14,197 2,224 371 16,792 - 16,792 ----------- ------------ ------------ ------------ ------------ ------------ Cash and Temporary Cash Investments at End of Year $ 26,228 $ 340 $ 398 $ 26,966 $ - $ 26,966 =========== ============ ============ ============ ============ ============ 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, 2004, incorporated herein by reference.
HORIZON ENERGY BULGARIA, LTD. CONSOLIDATING BALANCE SHEET AT SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Consolidated Horizon Energy Horizon Energy Total Before Bulgaria Ltd Bulgaria Ltd Sofia Energy Eliminations Eliminations Subsidiaries -------------- ------------ ------------ ------------ ------------- ASSETS CURRENT ASSETS: Cash and Temporary Cash Investments 49 26 75 - 75 Accounts Receivable - Intercompany 473 - 473 (473) - Prepayments - 26 26 - 26 ----------- ------------ ----------- ----------- ------------ 522 52 574 (473) 101 ----------- ------------ ----------- ----------- ------------ OTHER ASSETS: Investment in Associated Companies (412) - (412) 412 - ----------- ------------ ----------- ----------- ------------ (412) - (412) 412 - ----------- ------------ ----------- ----------- ------------ TOTAL ASSETS $ 110 $ 52 $ 162 $ (61) $ 101 =========== ============ =========== =========== ============ CAPITALIZATION & LIABILITIES CAPITALIZATION: Common Stock $ 50 $ 8 $ 58 $ (8) $ 50 Earnings Reinvested in the Business (415) (402) (817) 402 (415) Accumulated Other Comprehensive Income (4) (18) (22) 18 (4) ----------- ------------ ----------- ----------- ------------ Total Capitalization (369) (412) (781) 412 (369) ----------- ------------ ----------- ----------- ------------ Minority Interest in Foreign Subsidiaries - - - - - ----------- ------------ ----------- ----------- ------------ CURRENT AND ACCRUED LIABILITIES: Accounts Payable - (9) (9) - (9) Accounts Payable - Intercompany 479 473 952 (473) 479 ----------- ------------ ----------- ----------- ------------ 479 464 943 (473) 470 ----------- ------------ ----------- ----------- ------------ TOTAL CAPITALIZATION & LIABILITIES $ 110 $ 52 $ 162 $ (61) $ 101 =========== ============ =========== =========== ============ 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, 2004, incorporated herein by reference.
HORIZON ENERGY BULGARIA, LTD. CONSOLIDATING STATEMENT OF INCOME FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Consolidated Horizon Energy Horizon Energy Total Before Eliminations Bulgaria Ltd Bulgaria Ltd Sofia Energy Eliminations (Dr) Cr Subsidiaries -------------- ------------ ------------ ------------ ------------- OPERATING EXPENSE: Operation and Maintenance 8 413 421 - 421 ----------- ------------ ----------- ----------- ------------ 8 413 421 - 421 ----------- ------------ ----------- ----------- ------------ Operating Income (Loss) (8) (413) (421) - (421) ----------- ------------ ----------- ----------- ------------ OTHER INCOME (EXPENSE): Unremitted Earnings of Subsidiaries (402) - (402) 402 - Other Income (1) 16 15 - 15 Interest-Intercompany (4) - (4) - (4) ----------- ------------ ----------- ----------- ------------ Income (Loss) Before Income Taxes and and Minority Interest in Foreign Subsidiaries (415) (397) (812) 402 (410) ----------- ------------ ----------- ----------- ------------ Income Taxes - 5 5 - 5 ----------- ------------ ----------- ----------- ------------ Net Income (Loss) Available for Common Stock $ (415) $ (402) $ (817) $ 402 $ (415) =========== ============ =========== =========== ============ 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, 2004, incorporated herein by reference.
HORIZON ENERGY BULGARIA, LTD. CONSOLIDATING STATEMENT OF EARNINGS REINVESTED IN THE BUSINESS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Consolidated Horizon Energy EARNINGS REINVESTED Horizon Energy Total Before Eliminations Bulgaria Ltd IN THE BUSINESS Bulgaria Ltd Sofia Energy Eliminations (Dr) Cr Subsidiaries ------------- ------------ ------------ ------------ ------------- Balance at Beginning of Year $ - $ - $ - $ - $ - Net Income (Loss) Available for Common Stock (415) (402) (817) 402 (415) ----------- ------------ ----------- ----------- ------------ Balance at End of Year $ (415) $ (402) $ (817) $ 402 $ (415) =========== ============ =========== =========== ============ 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, 2004, incorporated herein by reference.
HORIZON ENERGY BULGARIA, LTD. CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Consolidated Horizon Energy Horizon Energy Total Before Eliminations Bulgaria Ltd Bulgaria Ltd Sofia Energy Eliminations (Dr) Cr Subsidiaries -------------- ------------ ------------ ------------ ------------- Net Income (Loss) Available for Common Stock $ (415) $ (402) $ (817) $ 402 $ (415) ----------- ------------ ----------- ----------- ------------ Other Comprehensive Income (Loss): Foreign Currency Translation Adjustment (4) (18) (22) 18 (4) ----------- ------------ ----------- ----------- ------------ Other Comprehensive Income (Loss) (4) (18) (22) 18 (4) ----------- ------------ ----------- ----------- ------------ Comprehensive Income (Loss) $ (419) $ (420) $ (839) $ 420 $ (419) =========== ============ =========== =========== ============ 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, 2004, incorporated herein by reference.
HORIZON ENERGY BULGARIA, LTD. CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (THOUSANDS OF DOLLARS) Consolidated Total Before Horizon Energy Horizon Energy Eliminations Bulgaria Ltd Bulgaria Ltd Sofia Energy & Adjustments Eliminations Subsidiaries -------------- ------------ ------------- ------------ ------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net Income (Loss) $ (415) $ (402) $ (817) $ 402 $ (415) Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Unremitted Earnings of Subsidiaries 402 - 402 (402) - Change in: Accounts Receivable - Intercompany (473) - (473) 473 - Prepayments - (26) (26) - (26) Accounts Payable (1) (8) (9) - (9) Accounts Payable - Intercompany 479 473 952 (473) 479 ----------- ------------ ------------ ------------ ------------ Net Cash Provided by (Used in) Operations (8) 37 29 - 29 ----------- ------------ ------------ ------------ ------------ CASH FLOWS FROM INVESTING ACTIVITIES: Investment in Associated Companies (8) - (8) 8 - ----------- ------------ ------------ ------------ ------------ Net Cash Provided by (Used In) Investing Activities (8) - (8) 8 - ----------- ------------ ------------ ------------ ------------ CASH FLOWS FROM FINANCING ACTIVITIES: Return of Capital 50 8 58 (8) 50 ----------- ------------ ------------ ------------ ------------ Net Cash Provided by (Used in) Financing Activities 50 8 58 (8) 50 ----------- ------------ ------------ ------------ ------------ Effect of Exchange Rates on Cash 15 (19) (4) - (4) ----------- ------------ ------------ ------------ ------------ Net Increase (Decrease) in Cash and Temporary Cash Investments 49 26 75 - 75 Cash and Temporary Cash Investments of Beginning of Period - - - - - ----------- ------------ ------------ ------------ ------------ Cash and Temporary Cash Investments at End of Year $ 49 $ 26 $ 75 $ - $ 75 =========== ============ ============ ============ ============ 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, 2004, incorporated herein by reference.
EXHIBITS A. *(1) Annual Report on Form 10-K for fiscal year ended September 30, 2004 filed December 14, 2004 (File No. 1-3880). (2) National Fuel Gas Company 2004 Annual Report to Shareholders (paper copy submitted under cover of Form SE). *(3) National Fuel Gas Company Proxy Statement, dated and filed January 6, 2005 (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 9, 2004 (Exhibit 3 (ii), Form 8-K dated December 9, 2004 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 ex99-1 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 effective April 1, 2004. Designated as Exhibit ex99-1 for EDGAR purposes. *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 ex99-3 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 ex99-2 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 ex99-3 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 ex99-4 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1999.) *ix Amended and Restated Articles of Incorporation of Seneca Resources Corporation, as filed September 15, 2003. (Exhibit (5)ix, designated as ex99-49 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2003.) * 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, Form U5S for fiscal year ended September 30, 2001). *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, Form U5S for fiscal year ended September 30, 2001). *ii Amendment of Certificate of Limited Partnership, dated December 21, 1983. (Designated as Exhibit ex99-3 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2001). *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, Form U5S for fiscal year ended September 30, 2001). *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. *i Certificate of Incorporation, dated August 19, 1982 (Exhibit (11)i, Form U5S for fiscal year ended September 30, 1985). *ii 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 ex99-5 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1999.) * Incorporated herein by reference as indicated.
EXHIBITS (Continued) *iii Articles of Amendment of the Articles of the Corporation, dated June 8, 2000. (Exhibit (9)iv, designated as Exhibit ex99-2 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2000.) *iv Certificate of Incorporation of Highland Pipeline & Resources Corp., dated January 20, 2003. (Exhibit (9)v, designated as Exhibit ex99-4 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2003.) *v Certificate of Merger of Highland Forest Resources, Inc. with and into Highland Pipeline & Resources Corp. dated February 3, 2003. (Exhibit (9)vi, designated as Exhibit ex99-5 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2003). vi By-Laws of Highland Forest Resources, Inc., as amended April 1, 2004. Designated as Exhibit ex99-2 for EDGAR purposes. (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 as amended April 1, 2004. Designated as Exhibit ex99-3 for EDGAR purposes. (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, as amended March 30, 2004. Designated as Exhibit ex99-4 for EDGAR purposes. (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, Form U5S for fiscal year ended September 30, 2001). * Incorporated herein by reference as indicated.
EXHIBITS (Continued) *iv By-Laws as amended March 28, 2003. (Exhibit (12)iv, designated as Exhibit ex99-9 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2003). (13) Seneca Energy II, LLC *i Articles of Organization, dated February 23, 2000. (Designated as Exhibit ex99-6 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2001). *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, Form U5S for fiscal year ended September 30, 2001). *ii Operating Agreement, dated March 1, 2000 (Confidential Treatment Requested) (15) Energy Systems North East, LLC *i Certificate of Formation, dated September 26, 2000. (Designated as Exhibit ex99-8 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2001). *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 ex99-2 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1996). * Incorporated herein by reference as indicated.
EXHIBITS (Continued) *ii Notarial Record, dated December 4, 2001 (Exhibit (18)ii, designated as Exhibit ex99-9 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2001). (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 ex99-9 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 ex99-10 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 ex99-11 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 ex99-12 for EDGAR purposes, Form U5S/A for fiscal year ended September 30, 1996). *v Notarial Deed, dated April 24, 2002 that adopted new Founder's Deed, dated April 24, 2002. (Exhibit 19 (v) designated as Exhibit ex99-2 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2002). (20) 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 as amended on June 19, 2002 (Exhibit (22)iii, designated as Exhibit ex99-11 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2001). (21) Lounske tepelne hospodarstvi, s.r.o. *i Notarial Records, dated November 12, 1998, January 6, 1999 and December 2, 1999. Designated as Exhibit ex99-6 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1999. * Incorporated herein by reference as indicated.
EXHIBITS (Continued) *ii Founders Deed, dated November 15, 1994, as amended on December 13, 2001. (Exhibit 22 (ii), designated as Exhibit ex99-3 for EDGAR purposes, Form U5S for the fiscal year ended September 30, 2002). (22) ENOP, s.r.o. *i Founders Deed, dated December 19, 1995, as amended on December 13, 2001. (Exhibit 23 (i), designated as Exhibit ex99-4 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2002). (23) United Energy, a.s. *i Notarial Record from Prvni severozapadni teplarenska, a.s., dated September 28, 1998. (Exhibit (28) i, designated as Exhibit ex99-3 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 ex99-4 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 ex99-5 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2000.) *iv Court Resolution, dated July 13, 2000. (Exhibit (28) iv, designated as Exhibit ex99-6 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 as amended on June 27, 2002, as amended on June 26, 2003 as amended on June 24, 2004. Designated as Exhibit ex99-5 for EDGAR purposes. (24) Horizon LFG, Inc. (formerly Upstate Energy 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 Certificate of Amendment of the Certificate of Incorporation of Upstate Energy Inc., filed April 19, 2004. Designated as Exhibit ex99-6 for EDGAR purposes. * Incorporated herein by reference as indicated.
EXHIBITS (Continued) iii By-Laws as amended April 1, 2004. Designated as Exhibit ex99-7 for EDGAR purposes. (25) Roystone Gas Processing Plant Partnership *i Facility Construction, Ownership and Operating Agreement, dated November 1, 1994. (Exhibit (33)i, designated as Exhibit ex99-8 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1999.) *ii Ratification and Joinder Agreement, dated September 1, 2002, (Exhibit 26 (ii), designated as Exhibit ex99-6 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2002). (26) Seneca Energy Canada Inc. *i Certificate of Amendment and Articles of Amendment changing name of corporation from Player Resources LTD to Seneca Energy Canada Inc., dated September 1, 2002. (Exhibit (29)i, designated as Exhibit ex99-11 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2003). *ii Certificate of Amendment and Registration of Restated Articles dated August 2, 2002. (Exhibit 30 (i), designated as Exhibit ex99-14 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2002). *iii Articles of Amendment dated 8/2/02. (Exhibit 30 (ii), designated as Exhibit ex99-15 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2002). *iv Certificate of Amendment and Registration of Restated Articles dated 7/29/02. (Exhibit 30 (iii), designated as Exhibit ex99-16 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2002). *v Articles of Amendment dated 7/29/02. (Exhibit 30 (iv), designated as Exhibit ex99-17 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2002. *vi Certificate of Amalgamation and Articles of Amalgamation, dated September 28, 2001 (Exhibit 33(i), designated as Exhibit ex99-13 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2001). *vii By-Laws No. 1, dated January 28, 1998 (Exhibit 33 (ii), designated as Exhibit ex99-14 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2001). (27) Seneca Player Corp. *i Certificate of Incorporation of JN Acquisition Corp. dated October 26, 1999. (Exhibit 31 (i), designated as Exhibit * Incorporated herein by reference as indicated.
EXHIBITS (Continued) ex99-18 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2002). *ii Certificate of Amendment of Certificate of Incorporation of Seneca Player Corp. dated December 19, 2001. (Exhibit 31 (ii), designated as Exhibit ex99-19 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2002). (28) 3062782 Nova Scotia Company *i Certificate of Incorporation dated December 27, 2001. (Exhibit 32 (i), designated as Exhibit ex99-20 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2002). *ii Memorandum and Articles of Association of 306782 Nova Scotia Company dated December 27, 2001. (Exhibit 32 (ii) designated as Exhibit ex99-21 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2002). (29) 3062783 Nova Scotia Company *i Certificate of Incorporation dated December 27, 2001. (Exhibit 33 (i), designated as Exhibit ex99-22 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2002). *ii Memorandum and Articles of Association of 3062783 Nova Scotia Company dated December 27, 2001. (Exhibit 33 (ii), designated as Exhibit ex99-23 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2002). (30) Horizon Energy Bulgaria Ltd. *i Articles of Association of One-Man Limited Liability Company dated August 25, 2001. (Exhibit 35 (i), designated as Exhibit ex99-26 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2002). (31) Sofia Energy EAD *i Articles of Association of Sofia Energy EAD, Joint-Stock Company dated July 7, 2003. (Exhibit (34)i, designated as Exhibit ex99-12 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2003). (32) Montenero Energia S.r.l. *i Incorporation of a Limited Liability Company dated November 6, 2002. (Exhibit (35)i, designated as Exhibit ex99-13 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2003). ii By-Laws. Designated as Exhibit ex99-8 for EDGAR purposes. * Incorporated herein by reference as indicated.
EXHIBITS (Continued) (33) Kane Gas Processing Plant *i Facility Construction, Ownership and Operating Agreement between Elkhorn Field Services Company and Five Oaks, Inc. and East Resources, Inc. and Seneca Resources Corporation. This document is subject to a request for confidential treatment under Rule 104 (b). (34) Toro Partner LLC *i Certificate of Formation of Toro Partner LLC dated April 30, 2003. (Exhibit (37)i designated as Exhibit ex99-14 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2003). *ii Limited Liability Company Agreement of Toro Partner LLC dated May 27, 2003. (Exhibit (37)ii, designated as Exhibit ex99-15 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2003). (35) Toro Partners, LP *i Amended and Restated Certificate of Limited Partnership of Toro Partners, LP dated June 4, 2003. (Exhibit (38)i, designated as Exhibit ex99-16 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2003). *ii Amended and Restated Agreement of Limited Partnership of Toro Partners, LP (undated). (Exhibit (38)ii, designated as Exhibit ex99-17 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2003). (36) Toro Energy of Michigan, LLC *i Certificate of Formation of Toro Energy of Michigan, LLC dated September 7, 1999. (Exhibit (39)i designated as Exhibit ex99-18 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2003). *ii Certificate of Amendment of Toro Energy of Michigan, LLC dated July 24, 2003. (Exhibit (39)ii designated as Exhibit ex99-19 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2003). *iii Amended and Restated Limited Liability Company Agreement of Toro Energy of Michigan, LLC dated June 3, 2003. (Exhibit (39)iii, designated as Exhibit ex99-20 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2003). (37) Toro Energy of Ohio-Statewide, LLC *i Certificate of Formation of Toro Energy of Ohio-Statewide, LLC dated September 9, 1999. (Exhibit (40)i, designated as Exhibit ex99-21 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2003). * Incorporated herein by reference as indicated.
EXHIBITS (Continued) *ii Certificate of Amendment of Toro Energy of Ohio-Statewide, LLC dated July 24, 2003. (Exhibit (40)ii, designated as Exhibit ex99-22 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2003). *iii Amended and Restated Limited Liability Company Agreement of Toro Energy of Ohio-Statewide, LLC dated June 3, 2003, (Exhibit (40)iii, designated as Exhibit ex99-23 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2003). (38) Toro Energy of Ohio, LLC *i Certificate of Formation of Toro Energy of Ohio, LLC dated September 1, 1999. (Exhibit (41)i, designated as Exhibit ex99-24 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2003). *ii Certificate of Amendment of Toro Energy of Ohio, LLC dated July 24, 2003. (Exhibit (41)ii, designated as Exhibit ex99-25 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2003). *iii Amended and Restated Limited Liability Company Agreement of Toro Energy of Ohio, LLC dated June 3, 2003. (Exhibit (41)iii, designated as Exhibit ex99-26 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2003). (39) Toro Energy of Kentucky, LLC *i Certificate of Formation of Toro Energy of Kentucky, LLC dated September 1, 1999. (Exhibit (42)i, designated as Exhibit ex99-27 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2003). *ii Certificate of Amendment of Toro Energy of Kentucky, LLC dated July 24, 2003. (Exhibit (42)ii, designated as Exhibit ex99-28 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2003). *iii Amended and Restated Limited Liability Company Agreement of Toro Energy of Kentucky, LLC dated June 3, 2003. (Exhibit (42)iii, designated as Exhibit ex99-29 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2003). (40) Toro Energy of Missouri, LLC *i Articles of Organization of Toro Energy of Missouri, LLC dated July 21, 1999. (Exhibit (43)i, designated as Exhibit ex99-30 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2003). *ii Change of Registered Agent/Registered Office, filed July 30, 2003. (Exhibit (43)ii, designated as Exhibit ex99-31 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2003). * Incorporated herein by reference as indicated.
EXHIBITS (Continued) *iii Amended and Restated Regulations of Toro Energy of Missouri, LLC dated June 23, 2003. (Exhibit (43)iii, designated as Exhibit ex99-32 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2003). (41) Toro Energy of Maryland, LLC *i Articles of Organization of Toro Energy of Maryland, LLC dated August 3, 1999. (Exhibit (44)i, designated as Exhibit ex99-33 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2003). *ii Change of Registered Agent/Registered Office, filed July 30, 2003. (Exhibit (44)ii, designated as Exhibit ex99-34 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2003). *iii Amended and Restated Regulations of Toro Energy of Maryland, LLC dated June 23, 2003. (Exhibit (44)iii, designated as Exhibit ex99-35 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2003). (42) Toro Energy of Indiana, LLC *i Articles of Organization of Toro Energy of Indiana, LLC dated November 14, 2000. (Exhibit (45)i, designated as Exhibit ex99-36 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2003). *ii Articles of Amendment to the Articles of Organization of Toro Energy of Indiana, LLC dated August 14, 2001. (Exhibit (45)ii, designated as Exhibit ex99-37 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2003). *iii Change of Registered Agent/Registered Office, filed July 30, 2003. (Exhibit (45)iii, designated as Exhibit ex99-38 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2003). *iv Amended and Restated Regulations of Toro Energy of Indiana, LLC dated June 23, 2003. (Exhibit (45)iv, designated as Exhibit ex99-39 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2003). (43) Toro Energy of Ohio-American, LLC *i Articles of Organization of Toro Energy of Ohio-American, LLC dated February 16, 2003. (Exhibit (46)i, designated as Exhibit ex99-40 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2003). *ii Change of Registered Agent/Registered Office, filed July 30, 2003. (Exhibit (46)ii, designated as Exhibit ex99-41 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2003). * Incorporated herein by reference as indicated.
EXHIBITS (Continued) *iii Amended and Restated Regulations of Toro Energy of Ohio-American, LLC dated June 23, 2003. (Exhibit (46)iii, designated as Exhibit ex99-42 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2003). (44) ESPC, LLC *i Articles of Organization of ESPC, LLC dated January 22, 2003. (Exhibit (47)i, designated as Exhibit ex99-43 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2003). *ii Certificate of Amendment of the Articles of Organization of ESPC, LLC dated February 3, 2003. (Exhibit (47)ii, designated as Exhibit ex99-44 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2003). *iii Operating Agreement of ESPC, LLC dated February 6, 2003. (Exhibit (47)iii, designated as Exhibit ex99-45 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2003). (45) SCPC, LLC *i Articles of Organization of SCPC, LLC dated February 3, 2003. (Exhibit (48)i, designated as Exhibit ex99-46 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2003). *ii Operating Agreement of SCPC, LLC dated February 6, 2003. (Exhibit (48)ii, designated as Exhibit ex99-47 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2003). (46) Empire State Pipeline *i Second Amended and Restated Operating Agreement between St. Clair Pipeline Company Inc. and Empire State Pipeline Company, Inc. dated September 27, 1996. (Exhibit (49)i, designated as Exhibit ex99-48 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2003). 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). * Incorporated herein by reference as indicated.
EXHIBITS (Continued) * 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). * 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). * Cerificate of Adjustment, dated September 7, 2001, to the Amended and Restated Rights Agreement dated as of April 30, 1999, between the Company and HSBC Bank USA (Exhibit 4, Form 8-K dated September 7, 2001 in File No 1-3880). * Officers Certificate establishing 6.50% notes due 2022, dated September 18, 2002 (Exhibit 4, Form 8-K dated October 3, 2002 in File No. 1-3880). * Officers Certificate establishing 5.25% notes due 2013, dated February 18, 2003 (Exhibit 4, Form 10-Q for the quarterly period ended March 31, 2003 in File No. 1-3880). D. * Tax Allocation Agreement pursuant to Rule 45(c) (Exhibit D, designated as Exhibit ex99-27 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2002. * Incorporated herein by reference as indicated.
EXHIBITS (Concluded) E. *(1) Employee Relocation Manual filed pursuant to Rule 48(b) (Exhibit E(1), designated as Exhibit ex99-9 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, 2003 and for the year-to-date period ended March 31, 2004 filed pursuant to Rule 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 United Energy, a.s., a foreign utility company. (Exhibit G (2), designated as Exhibit ex99-17 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2001.) *(2) Organization chart showing relationship to Horizon Power, Inc., an exempt wholesale generator. (Exhibit G (3), designated as Exhibit ex99-18 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2001.) H. (1) United Energy, a.s. Audited Financial Statements for the Calendar Year Ended December 31, 2003. Designated as Exhibit ex99-9 for EDGAR purposes. (2) Teplarna Liberec, a.s. Audited Financial Statements for the Calendar Year Ended December 31, 2003. Designated as Exhibit ex99-10 for EDGAR purposes. (3) Horizon Power, Inc. Audited Financial Statements for the Fiscal Year Ended September 30, 2004. These financial statements will be filed by amendment when available. (4) Energy Systems North East, LLC Unaudited Financial Statements for the Fiscal Year Ended September 30, 2004. Designated as Exhibit ex99-11 for EDGAR purposes. * Incorporated herein by reference as indicated.
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 National Fuel Gas Supply Corporation By-Laws. ex99-2 Highland Forest Resources, Inc. By-Laws. ex99-3 Data-Track Account Services, Inc. By-Laws. ex99-4 National Fuel Resources, Inc. By-Laws. ex99-5 United Energy, a.s. Articles of Incorporation. ex99-6 Horizon LFG, Inc. Certificate of Amendment of the Certificate of Incorporation of Upstate Energy, Inc. ex99-7 Horizon LFG, Inc. By-Laws. ex99-8 Montenero Energia S.r.l. By-Laws. ex99-9 United Energy, a.s. Audited Financial Statements for the Calendar Year Ended December 31, 2003. ex99-10 Teplarna Liberec, a.s. Audited Financial Statements for the Calendar Year Ended December 31, 2003. ex99-11 Energy Systems North East, LLC Unaudited Financial Statements for the Fiscal Year Ended September 30, 2004.