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FILE NO.
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM U-3A-2
STATEMENT BY HOLDING COMPANY CLAIMING EXEMPTION
UNDER RULE U-3A-2 FROM THE PROVISIONS OF THE
PUBLIC UTILITY HOLDING COMPANY ACT OF 1935
To be Filed Annually Prior to March 1
OGE ENERGY CORP.
hereby files with the Securities and Exchange Commission, pursuant to Rule 2, its statement claiming exemption as a holding company from the provisions of the Public Utility Holding Company Act of 1935, and submits the following information:
1. Name, State of organization, location and nature of business of claimant and every subsidiary thereof, other than any exempt wholesale generator (EWG) or foreign utility company in which claimant directly or indirectly holds an interest.
OGE Energy Corp. (the "Company") is a public utility holding company, which is incorporated in the State of Oklahoma and located in Oklahoma City, Oklahoma. At December 31, 2001, the Company was not engaged in any business independent of that conducted through its subsidiaries, Oklahoma Gas and Electric Company ("OG&E"), Enogex Inc. ("Enogex"), Origen Inc. ("Origen") and OGE Capital Trust.
OG&E was incorporated February 27, 1902, under the laws of the Territory of Oklahoma and is now existing under and by virtue of the laws of the State of Oklahoma. OG&E is an operating electric public utility. Its operations are conducted predominantly in the State of Oklahoma. OG&E also conducts some operations in the State of Arkansas. Its business is more fully described in its most recent Form 10-K Annual Report (File No. 1-1097) on file with the Commission.
Enogex is a wholly-owned subsidiary of the Company. Enogex owns and operates a natural gas pipeline system that, among other things, delivers natural gas to OG&E’s electric generating units. By order of the Commission dated August 28, 1986 (Release No. 35-24174), the Commission ordered that Enogex was not a gas utility company within the meaning of Section 2(a)(4) of the Public Utility Holding Company Act of 1935, as amended (the “Act”). At December 31, 2001, Enogex had six wholly-owned active subsidiaries: Enogex Products Corporation, OGE Energy Resources, Inc., Enogex Exploration Corporation, Enogex Arkansas
1
Pipeline Corporation, Enogex Gas Gathering, L.L.C. and Transok Holding, LLC. At December 31, 2001, Enogex Products Corporation owned one hundred percent interests in Belvan Corp., Belvan Partners, L.P. and Todd Ranch Partners, L.P., and an eighty percent interest in NuStar Joint Venture. Enogex Arkansas Pipeline Corporation owned a seventy-five percent interest in NOARK Pipeline System, Limited Partnership. The NOARK Pipeline System, Limited Partnership owned one hundred percent interests in Ozark Gas Transmission, L.L.C., Arkansas Western Pipeline, L.L.C., NOARK Energy Services, L.L.C., Ozark Gas Gathering, L.L.C. and NOARK Pipeline Finance, L.L.C. At February 1, 2001, Arkansas Western Pipeline, L.L.C. was merged into Ozark Gas Transmission L.L.C. Transok Holding, LLC owned a one hundred percent interest in Transok, LLC. Transok, LLC owned one hundred percent interests in Transok Gas Gathering, LLC, Transok Gas Processing, LLC and Transok Gas, LLC. Enogex and five of its subsidiaries were incorporated under the laws of the State of Oklahoma. Transok Holding, LLC and its subsidiaries are Delaware limited liability companies. The subsidiaries of Enogex: own and operate gas processing plants in Oklahoma and west Texas; are engaged in the gathering, transmission and processing of natural gas; are engaged in the buying, selling and brokering of energy (natural gas, electricity and natural gas liquids); and participate in the drilling for and production of natural gas (some crude, on occasion). The subsidiaries of Enogex are not “public utility companies” within the meaning of the Act.
Origen is a wholly-owned non-regulated subsidiary of the Company. Origen was incorporated under the laws of the State of Oklahoma. Origen is currently invested in a venture capital fund.
2. A brief description of the properties of claimant and each of its subsidiary public utility companies used for the generation, transmission, and distribution of electric energy for sale, or for the production, transmission, and distribution of natural or manufactured gas, indicating the location of principal generating plants, transmission lines, producing fields, gas manufacturing plants, and electric and gas distribution facilities, including all such properties which are outside the State in which claimant and its subsidiaries are organized and all transmission or pipelines which deliver or receive electric energy or gas at the borders of such State.
The Company owns no physical properties.
The principal properties of OG&E are described in the above mentioned Form 10-K Annual Report (File No. 1-1097) on file with the Commission.
3. The following information for the last calendar year with respect to claimant and each of its subsidiary public utility companies:
2
( a ) Number of Kwh of electric energy sold (at retail or wholesale), and Mcf of natural or manufactured gas distributed at retail:
MCF Kwh Sold Dollar Revenues From Sales
--------- ---------------- --------------------------
Retail None 22,984,329,000 $ 1,355,673,506
Wholesale None 1,956,460,000 65,483,069
---------------- -----------------
Totals 24,940,789,000 $ 1,421,156,575
================ =================
( b ) Number of Kwh of electric energy and Mcf of natural or manufactured gas distributed at retail outside the State of incorporation of exempt holding company, the volumes sold and related revenues at retail in ( a ) above:
MCF Kwh Sold Dollar Retail Revenues
--------- ---------------- --------------------------
Arkansas None 2,599,595,000 $ 1,355,673,506
( c ) Outside the State or at the State line (please identify which) of the State of incorporation of exempt holding company, the volumes sold and related revenues at wholesale in ( a ) above:
MCF Kwh Sold Dollar Wholesale Revenues
--------- ---------------- --------------------------
Arkansas None 806,201,000 $ 29,559,087
State Line None 329,040,000 10,225,228
---------------- -----------------
Totals 1,135,241,000 $ 39,784,315
================ =================
( d ) Number of Kwh of electric energy and Mcf of natural or manufactured gas purchased outside the State in which each such company is organized or at the State line:
State Line
Total Company Arkansas (Other Utilities)
------------- ------------ -----------------
Mcf None - -
Kwh by OG&E 973,978,200 7,782,200 966,196,000
Revenue by OG&E $ 57,493,327 $ 344,196 $ 39,784,315
4. The following information for the reporting period with respect to claimant and each interest it holds directly or indirectly in an EWG or a foreign utility company, stating monetary amounts in United States dollars:
( a ) Name, location, business address and description of the facilities used by the EWG or foreign utility company for the generation, transmission and distribution of electric energy for sale or for the distribution at retail of natural or manufactured gas.
( b ) Name of each system company that holds an interest in such EWG or foreign utility company; and description of the interest held.
3
( c ) Type and amount of capital invested, directly or indirectly, by the holding company claiming exemption; any direct or indirect guarantee of the security of the EWG or foreign utility company by the holding company claiming exemption; and any debt or other financial obligation for which there is recourse, directly or indirectly, to the holding company claiming exemption or another system company, other than the EWG or foreign utility company.
( d ) Capitalization and earnings of the EWG or foreign utility company during the reporting period.
( e ) Identify any service, sales or construction contract(s) between the EWG or foreign utility company and a system company, and describe the services to be rendered or goods sold and fees or revenues under such agreement(s).
Item 4 is not applicable. At December 31, 2001, the Company did not hold directly or indirectly any interest in an EWG or a foreign utility company.
4
EXHIBITS
- Consolidating Statement of Income and Retained Earnings for the year ended
December 31, 2001, and Consolidating Balance Sheet as of December 31, 2001, for
OGE Energy Corp. (the "Company") and its subsidiary companies.
- An organizational chart showing the relationship of each EWG or foreign
utility company to associate companies in the holding-company system.
Exhibit B is not applicable. At December 31, 2001, the Company did not hold directly or indirectly any interest in an EWG or a foreign utility company.
5
The above-named claimant has caused this statement to be duly executed on its behalf by its authorized officer on this 26th day of February 2002.
OGE ENERGY CORP.
(Registrant)
By /s/ Donald R. Rowlett
Donald R. Rowlett
Vice President and Controller
CORPORATE SEAL
Attest:
/s/ Irma B. Elliott
Irma B. Elliott
Vice President and Corporate Secretary
Name, title and address of officer to whom notices and correspondence concerning this statement should be addressed:
Donald R. Rowlett, Vice President and Controller
P. O. BOX 321, Oklahoma City, Oklahoma 73101-0321
6
EXHIBIT INDEX
Exhibit
Description
- Consolidating Statement of Income and Retained Earnings for the year ended December 31, 2001, and Consolidating Balance Sheet as of December 31, 2001, for OGE Energy Corp. (the "Company") and its subsidiary companies.
7
Exhibit A
OGE Energy Corp.
Consolidating Balance Sheet
December 31, 2001
OGE Oklahoma Gas
(dollars in thousands) Energy and Electric Enogex Origen OGE Consolidating
Corp. Company Inc. Inc. Capital Trust Adjustments
------------ ------------- ------------ -------- ------------- -------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents................ $ 32,100 $ 380 $ - $ 13 $ - $ -
Accounts receivable - customers,
less reserve of $8,863................. - 98,342 106,813 - - -
Accounts receivable - affiliates......... - - 515 327 209,680 (210,522)
Advances to parent....................... - - 65,793 - - (65,793)
Accrued unbilled revenues................ - 35,600 - - - -
Accounts receivable-other,
less reserve of $874................... 280 12,073 4,570 35 - -
Fuel inventories......................... - 54,882 22,327 - - -
Materials and supplies, at average cost.. 2,029 32,640 4,067 - - -
Prepayments and other.................... 1,963 35,480 3,660 - - -
Price risk management.................... - - 21,238 - - -
Accumulated deferred tax assets.......... 828 7,493 1,714 - - -
------------ ------------- ------------ -------- ------------- -------------
Total current assets................... 37,200 276,890 230,697 375 209,680 (276,315)
OTHER PROPERTY AND INVESTMENTS, at cost.... 1,394,985 15,500 2,647 1,142 - (1,373,956)
PROPERTY, PLANT & EQUIPMENT:
In service............................... 46,426 3,961,652 1,499,162 - - -
Construction work in progress............ 654 22,497 24,661 - - -
------------ ------------- ------------ -------- ------------- -------------
Total property, plant and equipment.... 47,080 3,984,149 1,523,823 - - -
Less accumulated depreciation....... 20,334 1,978,872 292,098 - - -
------------ ------------- ------------ -------- ------------- -------------
Net property, plant and equipment........ 26,746 2,005,277 1,231,725 - - -
DEFERRED CHARGES:
Advance payments for gas................ - 8,500 - - - -
Income taxes recoverable through
future rates.......................... - 37,615 - - - -
Intangible assets - net................. 4,883 42,435 - - - -
Price risk management................... - - 13,390 - - -
Other................................... 10,545 36,278 38,981 57 - -
------------ ------------- ------------ -------- ------------- -------------
Total deferred charges................. 15,428 124,828 52,371 57 - -
------------ ------------- ------------ -------- ------------- -------------
TOTAL ASSETS............................... $ 1,474,359 $ 2,422,495 $ 1,517,440 $ 1,574 $ 209,680 $ (1,650,271)
============ ============= ============ ======== ============= =============
OGE
(dollars in thousands) Consolidated
Statements
------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents................ $ 32,493
Accounts receivable - customers,
less reserve of $4,135................. 205,155
Accounts receivable - affiliates......... -
Advances to parent....................... -
Accrued unbilled revenues................ 35,600
Accounts receivable-other,
less reserve of $874................... 16,958
Fuel inventories......................... 77,209
Materials and supplies, at average cost.. 38,736
Prepayments and other.................... 41,103
Price risk management.................... 21,238
Accumulated deferred tax assets.......... 10,035
------------
Total current assets................... 478,527
OTHER PROPERTY AND INVESTMENTS, at cost.... 40,318
PROPERTY, PLANT & EQUIPMENT:
In service............................... 5,507,240
Construction work in progress............ 47,812
------------
Total property, plant and equipment.... 5,555,052
Less accumulated depreciation........ 2,291,304
------------
Net property, plant and equipment........ 3,263,748
DEFERRED CHARGES:
Advance payments for gas................. 8,500
Income taxes recoverable through
future rates........................... 37,615
Intangible assets - net.................. 47,318
Price risk management.................... 13,390
Other.................................... 85,861
------------
Total deferred charges................. 192,684
------------
TOTAL ASSETS............................... $ 3,975,277
============
8
Exhibit A
OGE Energy Corp.
Consolidating Balance Sheet
December 31, 2001
OGE Oklahoma Gas
(dollars in thousands) Energy and Electric Enogex Origen OGE Consolidating
Corp. Company Inc. Inc. Capital Trust Adjustments
------------ ------------- ------------ -------- ------------- -------------
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term debt................................. $ 115,000 $ - $ - $ - $ - $ -
Accounts payable - affiliates................... 184,655 25,867 - - - (210,522)
Advances from subsidiary........................ 65,793 - - - - (65,793)
Accounts payable................................ 2,330 63,577 87,316 - - -
Dividends payable............................... 25,909 - - - - -
Customers' deposits............................. - 28,423 - - - -
Accrued taxes................................... 651 20,255 7,929 - - -
Accrued interest................................ - 14,437 22,387 - 3,490 -
Long-term debt due within one year.............. - - 115,000 - - -
Price risk management........................... 584 - 7,341 - - -
Other........................................... 4,297 72,292 8,520 - - -
------------ ------------- ------------ -------- ------------- -------------
Total current liabilities..................... 399,219 224,851 248,493 - 3,490 (276,315)
LONG-TERM DEBT.................................... - 700,379 625,924 - 200,000 -
DEFERRED CREDITS AND OTHER LIABILITIES:
Accrued pension and benefit obligation ......... 7,959 69,000 1,812 - - -
Accumulated deferred income taxes............... 2,795 438,972 193,179 - - -
Accumulated deferred investment tax credits..... - 52,279 - - - -
Price risk management........................... - 2,412 1,347 - - -
Other........................................... 3,879 9,000 26,033 - - -
------------ ------------- ------------ -------- ------------- -------------
Total deferred credits and other liabilities.. 14,633 571,663 222,371 - - -
STOCKHOLDERS' EQUITY:
Common stockholders' equity..................... 444,689 512,446 386,667 5,001 6,190 (910,304)
Retained earnings............................... 617,924 433,094 33,985 (3,427) - (463,652)
Accumulated other comprehensive income.......... (2,106) (19,938) - - - -
------------ ------------- ------------ -------- ------------- -------------
Total stockholders' equity.................... 1,060,507 925,602 420,652 1,574 6,190 (1,373,956)
------------ ------------- ------------ -------- ------------- -------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY........ $ 1,474,359 $ 2,422,495 $ 1,517,440 $ 1,574 $ 209,680 $ (1,650,271)
============ ============= ============ ======== ============= =============
OGE
(dollars in thousands) Consolidated
Statements
------------
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term debt................................. $ 115,000
Accounts payable - affiliates................... -
Advances from subsidiary........................ -
Accounts payable................................ 153,223
Dividends payable............................... 25,909
Customers' deposits............................. 28,423
Accrued taxes................................... 28,835
Accrued interest................................ 40,314
Long-term debt due within one year.............. 115,000
Price risk management........................... 7,925
Other........................................... 85,109
------------
Total current liabilities..................... 599,738
LONG-TERM DEBT.................................... 1,526,303
DEFERRED CREDITS AND OTHER LIABILITIES:
Accrued pension and benefit obligation ......... 78,771
Accumulated deferred income taxes............... 634,946
Accumulated deferred investment tax credits..... 52,279
Price risk management........................... 3,759
Other........................................... 38,912
------------
Total deferred credits and other liabilities.. 808,667
STOCKHOLDERS' EQUITY:
Common stockholders' equity..................... 444,689
Retained earnings............................... 617,924
Accumulated other comprehensive income.......... (22,044)
------------
Total stockholders' equity.................... 1,040,569
------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY........ $ 3,975,277
============
9
Exhibit A
OGE Energy Corp.
Consolidating Statement of Income
Year Ended December 31, 2001
OGE Oklahoma Gas
(dollars in thousands except per share data) Energy and Electric Enogex Origen OGE Consolidating
Corp. Company Inc. Inc. Capital Trust Adjustments
----------- ------------- ------------ -------- ------------- -------------
OPERATING REVENUES................................ $ - $ 1,456,802 $ 1,767,734 $ - $ - $ (42,173)
COST OF GOODS SOLD................................ - 766,491 1,541,825 - - (42,173)
----------- ------------- ------------ -------- ------------- -------------
Gross margin on revenues.......................... - 690,311 225,909 - - -
Other operation and maintenance................. (10,015) 287,265 114,310 46 - -
Depreciation and amortization................... 7,704 119,795 53,725 - - -
Taxes other than income......................... 2,357 46,612 16,404 2 - -
----------- ------------- ------------ -------- ------------- -------------
OPERATING INCOME (LOSS)........................... (46) 236,639 41,470 (48) - -
OTHER INCOME (EXPENSES), Net...................... (420) (2,463) 857 - - -
----------- ------------- ------------ -------- ------------- -------------
EARNINGS (LOSS) BEFORE INTEREST AND TAXES......... (466) 234,176 42,327 (48) - -
INTEREST INCOME (EXPENSES):
Interest income................................. 5,030 2,443 3,387 41 17,268 (23,768)
Interest on long-term debt...................... - (42,256) (55,957) - - -
Interest on trust preferred securities.......... - - - - (17,268) -
Allowance for borrowed funds used during
construction.................................. - 707 - - - -
Other interest charges.......................... (29,879) (4,438) (1,913) - - 23,768
----------- ------------- ------------ -------- ------------- -------------
Net interest income (expenses)................ (24,849) (43,544) (54,483) 41 - -
INCOME (LOSS) BEFORE TAXES........................ (25,315) 190,632 (12,156) (7) - -
INCOME TAX EXPENSE (BENEFIT)...................... (9,651) 69,426 (7,127) (65) - -
----------- ------------- ------------ -------- ------------- -------------
NET INCOME (LOSS) BEFORE CONTRIBUTION
FROM SUBSIDIARIES............................... (15,664) 121,206 (5,029) 58 - -
INCOME FROM SUBSIDIARIES.......................... 116,235 - - - - (116,235)
----------- ------------- ------------ -------- ------------- -------------
NET INCOME (LOSS)................................. $ 100,571 $ 121,206 $ (5,029) $ 58 $ - $ (116,235)
=========== ============= ============ ======== ============= =============
AVERAGE COMMON SHARES
OUTSTANDING (thousands)......................... 77,929
EARNINGS PER AVERAGE
COMMON SHARE.................................... $ 1.29
OGE
Consolidated
Statements
-------------
OPERATING REVENUES................................ $ 3,182,363
COST OF GOODS SOLD................................ 2,266,143
-------------
Gross margin on revenues.......................... 916,220
Other operation and maintenance................. 391,606
Depreciation and amortization................... 181,224
Taxes other than income......................... 65,375
-------------
OPERATING INCOME (LOSS)........................... 278,015
OTHER INCOME (EXPENSES), Net...................... (2,026)
-------------
EARNINGS (LOSS) BEFORE INTEREST AND TAXES......... 275,989
INTEREST INCOME (EXPENSES):
Interest income................................. 4,401
Interest on long-term debt...................... (98,213)
Interest on trust preferred securities.......... (17,268)
Allowance for borrowed funds used during
construction.................................. 707
Other interest charges.......................... (12,462)
-------------
Net interest income (expenses). .............. (122,835)
INCOME (LOSS) BEFORE TAXES........................ 153,154
INCOME TAX EXPENSE (BENEFIT)...................... 52,583
-------------
NET INCOME (LOSS) BEFORE CONTRIBUTION
FROM SUBSIDIARIES............................... 100,571
INCOME FROM SUBSIDIARIES.......................... -
-------------
NET INCOME (LOSS)................................. $ 100,571
=============
AVERAGE COMMON SHARES
OUTSTANDING (thousands)......................... 77,929
EARNINGS PER AVERAGE
COMMON SHARE.................................... $ 1.29
10
Exhibit A
OGE Energy Corp.
Consolidating Statement of Retained Earnings
Year Ended December 31, 2001
OGE Oklahoma Gas
(dollars in thousands) Energy and Electric Enogex Origen OGE Consolidating
Corp. Company Inc. Inc. Capital Trust Adjustments
----------- ------------- ---------- -------- ------------- -------------
BALANCE AT BEGINNING OF PERIOD.................... $ 621,010 $ 415,525 $ 49,214 $(3,485) $ - $ (461,254)
ADD - net income (loss)........................... 100,571 121,206 (5,029) 58 - (116,235)
----------- ------------- ---------- -------- ------------- -------------
Total......................................... 721,581 536,731 44,185 (3,427) - (577,489)
DEDUCT:
Cash dividends declared
on common stock............................... 103,657 103,637 10,200 - - (113,837)
----------- ------------- ---------- -------- ------------- -------------
BALANCE AT END OF PERIOD.......................... $ 617,924 $ 433,094 $ 33,985 $(3,427) $ - $ (463,652)
=========== ============= ========== ======== ============= =============
OGE
(dollars in thousands) Consolidated
Statements
------------
BALANCE AT BEGINNING OF PERIOD.................... $ 621,010
ADD - net income (loss)........................... 100,571
------------
Total......................................... 721,581
DEDUCT:
Cash dividends declared
on common stock............................... 103,657
------------
BALANCE AT END OF PERIOD.......................... $ 617,924
============
11
Exhibit A
Enogex Inc.
Consolidating Balance Sheet
December 31, 2001
Enogex OGE Enogex Enogex Enogex
(dollars in thousands) Enogex Products Energy Exploration Arkansas Gas
Inc. Corporation Resources, Inc. Corporation Pipeline Corp. Gathering, L.L.C.
----------- ----------- --------------- ----------- -------------- -----------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents.............. $ - $ 4,349 $ 1,909 $ - $ 3,008 $ -
Accounts receivable - customers,
less reserve of $2,689............... 837 5,493 65,841 2,314 5,180 1,611
Accounts receivable - affiliates....... 646,056 - - 15,714 - -
Advances to partent.................... 65,793 - - - - -
Accounts receivable-other,
less reserve of $874................. 3,851 1 - - - -
Fuel inventories....................... - - - - - 12,494
Materials and supplies, at
average cost......................... 1,504 194 - - 561 -
Prepayments and other.................. 1,704 74 1,015 819 48 -
Price risk management.................. - - 21,238 - - -
Accumulated deferred tax assets........ 1,224 - 476 - - -
----------- ----------- --------------- ----------- -------------- -----------------
Total current assets................. 720,969 10,111 90,479 18,847 8,797 14,105
OTHER PROPERTY AND INVESTMENTS, at cost.. 171,743 - 140 - - -
PROPERTY, PLANT AND EQUIPMENT:
In service............................. 201,960 87,072 5,684 81,633 150,456 211,663
Construction work in progress.......... 2,969 1,805 - - 638 5,201
----------- ----------- --------------- ----------- -------------- -----------------
Total property, plant and equipment.. 204,929 88,877 5,684 81,633 151,094 216,864
Less accumulated depreciation...... 86,612 18,707 2,244 39,529 10,772 82,465
----------- ----------- --------------- ----------- -------------- -----------------
Net property, plant and equipment...... 118,317 70,170 3,440 42,104 140,322 134,399
DEFERRED CHARGES:
Price risk management.................. 4,247 - 9,143 - - -
Other.................................. 9,460 1,750 7,877 - 8,643 4,388
----------- ----------- --------------- ----------- -------------- -----------------
Total deferred charges............... 13,707 1,750 17,020 - 8,643 4,388
----------- ----------- --------------- ----------- -------------- -----------------
TOTAL ASSETS............................. $1,024,736 $ 82,031 $ 111,079 $ 60,951 $ 157,762 $ 152,892
=========== =========== =============== =========== ============== =================
Transok Enogex
(dollars in thousands) Holding, Consolidating Consolidated
LLC Adjustments Statements
----------- ------------- ------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents.............. $ - $ (9,266) $ -
Accounts receivable - customers,
less reserve of $2,689............... 25,537 - 106,813
Accounts receivable - affiliates....... - (661,255) 515
Advances to parent..................... - - 65,793
Accounts receivable-other,
less reserve of $874................. 718 - 4,570
Fuel inventories....................... 9,833 - 22,327
Materials and supplies, at
average cost......................... 1,808 - 4,067
Prepayments and other.................. - - 3,660
Price risk management.................. - - 21,238
Accumulated deferred tax assets........ 14 - 1,714
----------- ------------- ------------
Total current assets................. 37,910 (670,521) 230,697
OTHER PROPERTY AND INVESTMENTS, at cost.. 30 (169,266) 2,647
PROPERTY, PLANT AND EQUIPMENT:
In service............................. 760,694 - 1,499,162
Construction work in progress.......... 14,048 - 24,661
----------- ------------- ------------
Total property, plant and equipment.. 774,742 - 1,523,823
Less accumulated depreciation...... 51,769 - 292,098
----------- ------------- ------------
Net property, plant and equipment...... 722,973 - 1,231,725
DEFERRED CHARGES:
Price risk management.................. - - 13,390
Other.................................. 11,723 (4,860) 38,981
----------- ------------- ------------
Total deferred charges............... 11,723 (4,860) 52,371
----------- ------------- ------------
TOTAL ASSETS............................. $ 772,636 $ (844,647) $ 1,517,440
=========== ============= ============
12
Exhibit A
Enogex Inc.
Consolidating Balance Sheet
December 31, 2001
Enogex OGE Enogex Enogex Enogex
(dollars in thousands) Enogex Products Energy Exploration Arkansas Gas
Inc. Corporation Resources, Inc. Corporation Pipeline Corp. Gathering, L.L.C.
----------- ----------- --------------- ----------- -------------- -----------------
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable - affiliates.......... $ - $ 38,780 $ 24,911 $ - $ 64,953 $ 39,994
Accounts payable....................... 6,766 4,784 58,827 163 3,152 66
Accrued taxes.......................... 1,105 547 16 12 932 535
Accrued interest....................... 17,741 - - - 435 -
Long-term debt due within one year..... 63,000 - - - 2,000 -
Price risk management.................. - - 7,341 - - -
Other.................................. 4,057 9 16 - 3 9
----------- ----------- --------------- ----------- -------------- -----------------
Total current liabilities............ 92,669 44,120 91,111 175 71,475 40,604
LONG-TERM DEBT........................... 434,247 - - - 78,427 -
DEFERRED CREDITS AND OTHER LIABILITIES:
Accrued pension and benefit obligation. 1,744 - 68 - - -
Accumulated deferred income taxes...... 64,297 7,137 (64) 11,792 10,785 -
Price risk management.................. - - 1,347 - - -
Other.................................. 11,127 10,762 - - 1,003 -
----------- ----------- --------------- ----------- -------------- -----------------
Total deferred credits and other
liabilities........................ 77,168 17,899 1,351 11,792 11,788 -
STOCKHOLDERS' EQUITY:
Common stockholders' equity............ 386,667 3,713 15,001 12,751 1 91,327
Retained earnings...................... 33,985 16,299 3,616 36,233 (3,929) 20,961
----------- ----------- --------------- ----------- -------------- -----------------
Total stockholders' equity........... 420,652 20,012 18,617 48,984 (3,928) 112,288
----------- ----------- --------------- ----------- -------------- -----------------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY.................................. $1,024,736 $ 82,031 $ 111,079 $ 60,951 $ 157,762 $ 152,892
=========== =========== =============== =========== ============== =================
Transok Enogex
(dollars in thousands) Holding, Consolidating Consolidated
LLC Adjustments Statements
----------- ------------- ------------
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable - affiliates.......... $ 492,616 $ (661,254) $ -
Accounts payable....................... 22,823 (9,265) 87,316
Accrued taxes.......................... 4,782 - 7,929
Accrued interest....................... 4,211 - 22,387
Long-term debt due within one year..... 50,000 - 115,000
Price risk management.................. - - 7,341
Other.................................. 4,426 - 8,520
----------- ------------- ------------
Total current liabilities............ 578,858 (670,519) 248,493
LONG-TERM DEBT........................... 113,250 - 625,924
DEFERRED CREDITS AND OTHER LIABILITIES:
Accrued pension and benefit obligation. - - 1,812
Accumulated deferred income taxes...... 99,232 - 193,179
Price risk management.................. - - 1,347
Other.................................. 8,003 (4,862) 26,033
----------- ------------- ------------
Total deferred credits and other
liabilities........................ 107,235 (4,862) 222,371
STOCKHOLDERS' EQUITY:
Common stockholders' equity............ - (122,793) 386,667
Retained earnings...................... (26,707) (46,473) 33,985
----------- ------------- ------------
Total stockholders' equity........... (26,707) (169,266) 420,652
----------- ------------- ------------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY................................. $ 772,636 $ (844,647) $ 1,517,440
=========== ============= ============
13
Exhibit A
Enogex Inc.
Consolidating Statement of Income
Year Ended December 31, 2001
Enogex OGE Enogex Enogex Enogex
(dollars in thousands) Enogex Products Energy Exploration Arkansas Gas
Inc. Corporation Resources, Inc. Corporation Pipeline Corp. Gathering, L.L.C.
----------- ----------- --------------- ----------- -------------- -----------------
OPERATING REVENUES....................... $ 37,604 $ 154,996 $ 1,291,299 $ 22,092 $ 82,462 $ 130,428
COST OF GOODS SOLD....................... (9,541) 127,816 1,280,773 - 68,210 108,888
----------- ----------- --------------- ----------- -------------- -----------------
Gross margin on revenues................. 47,145 27,180 10,526 22,092 14,252 21,540
Other operation and maintenance........ 6,221 19,883 12,392 8,222 6,475 20,059
Depreciation and amortization.......... 8,013 4,059 2,427 5,271 3,466 9,021
Taxes other than income................ 1,756 866 460 119 1,049 2,050
----------- ----------- --------------- ----------- -------------- -----------------
OPERATING INCOME (LOSS).................. 31,155 2,372 (4,753) 8,480 3,262 (9,590)
OTHER INCOME (EXPENSES), Net............. 317 (1,195) (5) 230 986 97
----------- ----------- --------------- ----------- -------------- -----------------
EARNINGS (LOSS) BEFORE INTEREST
AND TAXES.............................. 31,472 1,177 (4,758) 8,710 4,248 (9,493)
INTEREST INCOME (EXPENSES):
Interest income........................ 42,735 217 301 - 126 25
Interest on long-term debt............. (37,517) - - - (5,436) -
Other interest charges................. (757) - (114) - (488) (664)
----------- ----------- --------------- ----------- -------------- -----------------
Net interest income (expenses)....... 4,461 217 187 - (5,798) (639)
INCOME (LOSS) BEFORE TAXES............... 35,933 1,394 (4,571) 8,710 (1,550) (10,132)
INCOME TAX EXPENSE (BENEFIT)............. 14,547 389 (1,729) 569 (911) (3,882)
----------- ----------- --------------- ----------- -------------- -----------------
NET INCOME (LOSS) BEFORE CONTRIBUTION
FROM SUBSIDIARIES...................... 21,386 1,005 (2,842) 8,141 (639) (6,250)
LOSS FROM SUBSIDIARIES................... (26,415) - - - - -
----------- ----------- --------------- ----------- -------------- -----------------
NET INCOME (LOSS)........................ $ (5,029) $ 1,005 $ (2,842) $ 8,141 $ (639) $ (6,250)
=========== =========== =============== =========== ============== =================
Transok Enogex
(dollars in thousands) Holding, Consolidating Consolidated
LLC Adjustments Statements
----------- ------------- ------------
OPERATING REVENUES....................... $ 516,055 $ (467,202) $ 1,767,734
COST OF GOODS SOLD....................... 432,881 (467,202) 1,541,825
----------- ------------- ------------
Gross margin on revenues................. 83,174 - 225,909
Other operation and maintenance........ 41,058 - 114,310
Depreciation and amortization.......... 21,468 - 53,725
Taxes other than income................ 10,104 - 16,404
----------- ------------- ------------
OPERATING INCOME (LOSS).................. 10,544 - 41,470
OTHER INCOME (EXPENSES), Net............. 427 - 857
----------- ------------- ------------
EARNINGS (LOSS) BEFORE INTEREST
AND TAXES.............................. 10,971 - 42,327
INTEREST INCOME (EXPENSES):
Interest income........................ 89 (40,106) 3,387
Interest on long-term debt............. (13,004) - (55,957)
Other interest charges................. (39,996) 40,106 (1,913)
----------- ------------- ------------
Net interest income (expenses)....... (52,911) - (54,483)
INCOME (LOSS) BEFORE TAXES............... (41,940) - (12,156)
INCOME TAX EXPENSES (BENEFIT)............ (16,110) - (7,127)
----------- ------------- ------------
NET INCOME (LOSS) BEFORE CONTRIBUTION
FROM SUBSIDIARIES...................... (25,830) - (5,029)
LOSS FROM SUBSIDIARIES................... - 26,415 -
----------- ------------- ------------
NET INCOME (LOSS)........................ $ (25,830) $ 26,415 $ (5,029)
=========== ============= ============
14
Exhibit A
Enogex Inc.
Consolidating Statement of Retained Earnings
Year Ended December 31, 2001
Enogex OGE Enogex Enogex Enogex
(dollars in thousands) Enogex Products Energy Exploration Arkansas Gas
Inc. Corporation Resources, Inc. Corporation Pipeline Corp. Gathering, L.L.C.
--------- ----------- --------------- ----------- -------------- -----------------
BALANCE AT BEGINNING OF PERIOD........... $ 49,214 $ 15,294 $ 6,458 $ 28,092 $ (3,290) $ 27,211
ADD - net income (loss).................. (5,029) 1,005 (2,842) 8,141 (639) (6,250)
--------- ----------- --------------- ----------- -------------- -----------------
Total................................ 44,185 16,299 3,616 36,233 (3,929) 20,961
DEDUCT:
Cash dividends declared
on common stock...................... 10,200 - - - - -
--------- ----------- --------------- ----------- -------------- -----------------
BALANCE AT END OF PERIOD................. $ 33,985 $ 16,299 $ 3,616 $ 36,233 $ (3,929) $ 20,961
========= =========== =============== =========== ============== =================
Transok Enogex
(dollars in thousands) Holding, Consolidating Consolidated
LLC Adjustments Statements
----------- ------------- ------------
BALANCE AT BEGINNING OF PERIOD........... $ (877) $ (72,888) $ 49,214
ADD - net income (loss).................. (25,830) 26,415 (5,029)
----------- ------------- ------------
Total................................ (26,707) (46,473) 44,185
DEDUCT:
Cash dividends declared
on common stock...................... - - 10,200
----------- ------------- ------------
BALANCE AT END OF PERIOD................. $ (26,707) $ (46,473) $ 33,985
=========== ============= ============
15
Exhibit A
Enogex Products Corporation
Consolidating Balance Sheet
December 31, 2001
Enogex Belvan Todd NuStar
(dollars in thousands) Products Belvan Partners, Ranch Joint Consolidating
Corporation Corporation L.P. Partners, L.P. Venture Adjustments
----------- ----------- --------- -------------- ---------- -------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents....................... $ - $ 449 $ - $ - $ 3,975 $ (75)
Accounts receivable - customers,
less reserve of $170.......................... 35 870 - - 4,588 -
Accounts receivable - affiliates................ - - - 2,088 - (2,088)
Accounts receivable - other,
less reserve of $0............................ - 1 - - - -
Materials and supplies, at average cost......... - - - - 194 -
Prepayments and other........................... - - - - 74 -
----------- ----------- --------- -------------- ---------- -------------
Total current assets.......................... 35 1,320 - 2,088 8,831 (2,163)
OTHER PROPERTY AND INVESTMENTS, at cost........... 48,477 86 - - - (48,563)
PROPERTY, PLANT & EQUIPMENT:
In service...................................... 24,838 70 7,959 1,222 52,983 -
Construction work in progress................... 305 - 841 - 659 -
----------- ----------- --------- -------------- ----------- ------------
Total property, plant and equipment........... 25,143 70 8,800 1,222 53,642 -
Less accumulated depreciation............... 7,698 61 1,871 277 8,800 -
----------- ----------- --------- -------------- ----------- ------------
Net property, plant and equipment............... 17,445 9 6,929 945 44,842 -
DEFERRED CHARGES:
Other........................................... 976 - 84 10 680 -
----------- ----------- --------- -------------- ----------- ------------
TOTAL ASSETS...................................... $ 66,933 $ 1,415 $ 7,013 $ 3,043 $ 54,353 $ (50,726)
=========== =========== ========= ============== =========== ============
EPC
(dollars in thousands) Consolidated
Statements
------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents....................... $ 4,349
Accounts receivable - customers,
less reserve of $170.......................... 5,493
Accounts receivable - affiliates................ -
Accounts receivable - other,
less reserve of $0............................ 1
Materials and supplies, at average cost......... 194
Prepayments and other........................... 74
------------
Total current assets.......................... 10,111
OTHER PROPERTY AND INVESTMENTS, at cost........... -
PROPERTY, PLANT & EQUIPMENT:
In service...................................... 87,072
Construction work in progress................... 1,805
------------
Total property, plant and equipment........... 88,877
Less accumulated depreciation............... 18,707
------------
Net property, plant and equipment............... 70,170
DEFERRED CHARGES:
Other........................................... 1,750
------------
TOTAL ASSETS...................................... $ 82,031
============
16
Exhibit A
Enogex Products Corporation
Consolidating Balance Sheet
December 31, 2001
Enogex Belvan Todd NuStar
(dollars in thousands) Products Belvan Partners, Ranch Joint Consolidating
Corporation Corporation L.P. Partners, L.P. Venture Adjustments
----------- ----------- --------- -------------- ---------- -------------
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable - affiliates................... $ 38,315 $ 906 $ 1,237 $ - $ 410 $ (2,088)
Accounts payable................................ 1,387 789 - - 2,683 (75)
Accrued taxes................................... 78 - 69 - 400 -
Other........................................... 4 1 - - 4 -
----------- ----------- --------- -------------- ---------- -------------
Total current liabilities..................... 39,784 1,696 1,306 - 3,497 (2,163)
DEFERRED CREDITS AND OTHER LIABILITIES:
Accumulated deferred income taxes............... 7,137 - - - - -
Other........................................... - 218 - - 466 10,078
----------- ----------- --------- -------------- ---------- -------------
Total deferred credits and other liabilities.. 7,137 218 - - 466 10,078
STOCKHOLDERS' EQUITY:
Common stockholders' equity..................... 3,713 313 9,400 4,157 28,975 (42,845)
Retained earnings............................... 16,299 (812) (3,693) (1,114) 21,415 (15,796)
----------- ----------- --------- -------------- ---------- -------------
Total stockholders' equity.................... 20,012 (499) 5,707 3,043 50,390 (58,641)
----------- ----------- --------- -------------- ---------- -------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY........ $ 66,933 $ 1,415 $ 7,013 $ 3,043 $ 54,353 $ (50,726)
=========== =========== ========= ============== ========== =============
EPC
(dollars in thousands) Consolidated
Statements
-------------
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable - affiliates................... $ 38,780
Accounts payable................................ 4,784
Accrued taxes................................... 547
Other........................................... 9
-------------
Total current liabilities..................... 44,120
DEFERRED CREDITS AND OTHER LIABILITIES:
Accumulated deferred income taxes............... 7,137
Other........................................... 10,762
-------------
Total deferred credits and other liabilities.. 17,899
STOCKHOLDERS' EQUITY:
Common stockholders' equity..................... 3,713
Retained earnings............................... 16,299
-------------
Total stockholders' equity.................... 20,012
-------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY........ $ 82,031
=============
17
Exhibit A
Enogex Products Corporation
Consolidating Statement of Income
Year Ended December 31, 2001
Enogex Belvan Todd NuStar
(dollars in thousands) Products Belvan Partners, Ranch Joint Consolidating
Corporation Corporation L.P. Partners, L.P. Venture Adjustments
----------- ----------- --------- -------------- ---------- -------------
OPERATING REVENUES................................ $ 59,146 $ - $ 18,232 $ 2,333 $ 78,730 $ (3,445)
COST OF GOODS SOLD................................ 47,318 - 16,876 2,136 64,692 (3,206)
----------- ----------- --------- -------------- ---------- -------------
Gross margin on revenues.......................... 11,828 - 1,356 197 14,038 (239)
Other operation and maintenance................. 6,808 261 5,381 2,359 5,314 (240)
Depreciation and amortization................... 964 19 577 223 2,276 -
Taxes other than income......................... 341 8 88 1 428 -
----------- ----------- --------- -------------- ---------- -------------
OPERATING INCOME (LOSS)........................... 3,715 (288) (4,690) (2,386) 6,020 1
OTHER INCOME (EXPENSES), Net...................... (2) - - 27 21 (1,241)
----------- ----------- --------- -------------- ---------- -------------
EARNINGS (LOSS) BEFORE INTEREST AND TAXES......... 3,713 (288) (4,690) (2,359) 6,041 (1,240)
Interest income................................. - 50 - - 167 -
INCOME (LOSS) BEFORE TAXES........................ 3,713 (238) (4,690) (2,359) 6,208 (1,240)
INCOME TAX EXPENSE................................ 389 - - - - -
----------- ----------- --------- -------------- ---------- -------------
NET INCOME (LOSS) BEFORE CONTRIBUTION
FROM SUBSIDIARIES............................... 3,324 (238) (4,690) (2,359) 6,208 (1,240)
LOSS FROM SUBSIDIARIES............................ (2,319) (70) - - - 2,389
----------- ----------- --------- -------------- ---------- -------------
NET INCOME (LOSS)................................. $ 1,005 $ (308) $ (4,690) $ (2,359) $ 6,208 $ 1,149
=========== =========== ========= ============== ========== =============
EPC
(dollars in thousands) Consolidated
Statements
-------------
OPERATING REVENUES................................ $ 154,996
COST OF GOODS SOLD................................ 127,816
-------------
Gross margin on revenues.......................... 27,180
Other operation and maintenance................. 19,883
Depreciation and amortization................... 4,059
Taxes other than income......................... 866
-------------
OPERATING INCOME (LOSS)........................... 2,372
OTHER INCOME (EXPENSES), Net...................... (1,195)
-------------
EARNINGS (LOSS) BEFORE INTEREST AND TAXES......... 1,177
Interest income................................. 217
INCOME (LOSS) BEFORE TAXES........................ 1,394
INCOME TAX EXPENSE................................ 389
-------------
NET INCOME (LOSS) BEFORE CONTRIBUTION
FROM SUBSIDIARIES............................... 1,005
LOSS FROM SUBSIDIARIES............................ -
-------------
NET INCOME (LOSS)................................. $ 1,005
=============
18
Exhibit A
Enogex Products Corporation
Consolidating Statement of Retained Earnings
Year Ended December 31, 2001
Enogex Belvan Todd NuStar
(dollars in thousands) Products Belvan Partners, Ranch Joint Consolidating
Corporation Corporation L.P. Partners, L.P. Venture Adjustments
----------- ----------- --------- -------------- ---------- -------------
BALANCE AT BEGINNING OF PERIOD.................... $ 15,294 $ (526) $ 997 $ 1,245 $ 15,207 $ (16,923)
ADD - net income (loss)........................... 1,005 (308) (4,690) (2,359) 6,208 1,149
OTHER CHARGES (CREDITS) TO RETAINED EARNINGS...... - 22 - - - (22)
----------- ----------- --------- -------------- ---------- -------------
BALANCE AT END OF PERIOD.......................... $ 16,299 $ (812) $ (3,693) $ (1,114) $ 21,415 $ (15,796)
=========== =========== ========= ============== ========== =============
EPC
(dollars in thousands) Consolidated
Statements
-------------
BALANCE AT BEGINNING OF PERIOD.................... $ 15,294
ADD - net income (loss)........................... 1,005
OTHER CHARGES (CREDITS) TO RETAINED EARNINGS...... -
-------------
BALANCE AT END OF PERIOD.......................... $ 16,299
=============
19
Exhibit A
Enogex Arkansas Pipeline Corporation
Consolidating Balance Sheet
December 31, 2001
Enogex NOARK EAPC
(dollars in thousands) Arkansas Pipeline Consolidating Consolidated
Pipeline Corp. System, LP Adjustments Statements
-------------- ---------- ------------- ------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents....................... $ - $ 3,008 $ - $ 3,008
Accounts receivable - customers,
less reserve of $736.......................... - 5,180 - 5,180
Accounts receivable - affiliates................ - 366 (366) -
Materials and supplies, at average cost......... - 561 - 561
Prepayments and other........................... - 48 - 48
-------------- ---------- ------------- ------------
Total current assets.......................... - 9,163 (366) 8,797
OTHER PROPERTY AND INVESTMENTS, at cost........... 77,318 - (77,318) -
PROPERTY, PLANT & EQUIPMENT:
In service...................................... - 189,309 (38,853) 150,456
Construction work in progress................... - 638 - 638
-------------- ---------- ------------- ------------
Total property, plant and equipment........... - 189,947 (38,853) 151,094
Less accumulated depreciation............... - 27,561 (16,789) 10,772
-------------- ---------- ------------- ------------
Net property, plant and equipment............... - 162,386 (22,064) 140,322
DEFERRED CHARGES:
Other........................................... - 12,913 (4,270) 8,643
-------------- ---------- ------------- ------------
TOTAL ASSETS...................................... $ 77,318 $ 184,462 $ (104,018) $ 157,762
============== ========== ============= ============
20
Exhibit A
Enogex Arkansas Pipeline Corporation
Consolidating Balance Sheet
December 31, 2001
Enogex NOARK EAPC
(dollars in thousands) Arkansas Pipeline Consolidating Consolidated
Pipeline Corp. System, LP Adjustments Statements
-------------- --------- ------------- ------------
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable - affiliates................... $ 65,319 $ - $ (366) $ 64,953
Accounts payable................................ - 3,152 - 3,152
Accrued taxes................................... 122 810 - 932
Accrued interest................................ - 435 - 435
Long-term debt due within one year.............. - 2,000 - 2,000
Other........................................... - 3 - 3
-------------- ---------- ------------- ------------
Total current liabilities..................... 65,441 6,400 (366) 71,475
LONG-TERM DEBT.................................... 7,427 71,000 - 78,427
DEFERRED CREDITS AND OTHER LIABILITIES:
Accumulated deferred income taxes............... 10,785 - - 10,785
Other........................................... - 1,003 - 1,003
-------------- ---------- ------------- ------------
Total deferred credits and other liabilities.. 10,785 1,003 - 11,788
STOCKHOLDERS' EQUITY:
Common stockholders' equity..................... 1 115,377 (115,377) 1
Retained earnings............................... (6,336) (9,318) 11,725 (3,929)
-------------- ---------- ------------- ------------
Total stockholders' equity.................... (6,335) 106,059 (103,652) (3,928)
-------------- ---------- ------------- ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY........ $ 77,318 $ 184,462 $ (104,018) $ 157,762
============== ========== ============= ============
21
Exhibit A
Enogex Arkansas Pipeline Corporation
Consolidating Statement of Income
Year Ended December 31, 2001
Enogex NOARK EAPC
(dollars in thousands) Arkansas Pipeline Consolidating Consolidated
Pipeline Corp. System, LP Adjustments Statements
-------------- ---------- ------------- ------------
OPERATING REVENUES................................ $ - $ 82,462 $ - $ 82,462
COST OF GOODS SOLD................................ 406 67,804 - 68,210
-------------- ---------- ------------- ------------
Gross margin on revenues.......................... (406) 14,658 - 14,252
Other operation and maintenance................. 2,274 4,201 - 6,475
Depreciation and amortization................... - 3,856 (390) 3,466
Taxes other than income......................... 20 1,029 - 1,049
-------------- ---------- ------------- ------------
OPERATING INCOME (LOSS)........................... (2,700) 5,572 390 3,262
OTHER INCOME, Net................................. - 33 953 986
-------------- ---------- ------------- ------------
EARNINGS (LOSS) BEFORE INTEREST AND TAXES......... (2,700) 5,605 1,343 4,248
INTEREST INCOME (EXPENSES):
Interest income................................. - 126 - 126
Interest on long-term debt...................... - (5,976) 540 (5,436)
Other interest charges.......................... (486) (2) - (488)
-------------- ---------- ------------- ------------
Net interest income (expenses)................ (486) (5,852) 540 (5,798)
LOSS BEFORE TAXES................................. (3,186) (247) 1,883 (1,550)
INCOME TAX BENEFIT................................ (911) - - (911)
-------------- ---------- ------------- ------------
NET LOSS BEFORE CONTRIBUTION FROM SUBSIDIARIES.... (2,275) (247) 1,883 (639)
INCOME FROM SUBSIDIARIES.......................... 1,030 - (1,030) -
-------------- ---------- ------------- ------------
NET LOSS.......................................... $ (1,245) $ (247) $ 853 $ (639)
============== ========== ============= ============
22
Exhibit A
Enogex Arkansas Pipeline Corporation
Consolidating Statement of Retained Earnings
Year Ended December 31, 2001
Enogex NOARK EAPC
(dollars in thousands) Arkansas Pipeline Consolidating Consolidated
Pipeline Corp. System, LP Adjustments Statements
-------------- ---------- ------------- ------------
BALANCE AT BEGINNING OF PERIOD................... $ (4,794) $ (9,071) $ 10,575 $ (3,290)
ADD - net income (loss).......................... (1,245) (247) 853 (639)
-------------- ---------- ------------- ------------
Total........................................ (6,039) (9,318) 11,428 (3,929)
ADJUSTMENT TO RETAINED EARNINGS.................. (297) - 297 -
-------------- ---------- ------------- ------------
BALANCE AT END OF PERIOD......................... $ (6,336) $ (9,318) $ 11,725 $ (3,929)
============== ========== ============= ============
23
Exhibit A
NOARK Pipeline System, Limited Partnership
Consolidating Balance Sheet
December 31, 2001
NOARK Ozark Gas Arkansas NOARK Ozark Gas
(dollars in thousands) Pipeline Transmission, Western Energy Gathering,
System, LP L.L.C. Pipeline, L.L.C. Services, L.L.C. L.L.C.
----------- ------------- ---------------- ---------------- ----------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents....................... $ 4,351 $ - $ - $ - $ -
Accounts receivable - customers,
less reserve of $736.......................... - 1,974 - - 3,206
Accounts receivable - affiliates................ - 838 - - -
Advances to parent.............................. - 42,892 - - -
Materials and supplies, at average cost......... - 561 - - -
Prepayments and other........................... - 48 - - -
----------- ------------- ---------------- ---------------- ----------
Total current assets.......................... 4,351 46,313 - - 3,206
OTHER PROPERTY AND INVESTMENTS, at cost........... 183,406 - - - -
PROPERTY, PLANT & EQUIPMENT:
In service...................................... 41 180,953 - - 8,315
Construction work in progress................... - 202 - - 436
----------- ------------- ---------------- ---------------- ----------
Total property, plant and equipment........... 41 181,155 - - 8,751
Less accumulated depreciation............... 24 26,520 - - 1,017
----------- ------------- ---------------- ---------------- ----------
Net property, plant and equipment............... 17 154,635 - - 7,734
DEFERRED CHARGES:
Other........................................... 1,864 11,936 - - 171
----------- ------------- ---------------- ---------------- ----------
TOTAL ASSETS...................................... $ 189,638 $ 212,884 $ - $ - $ 11,111
=========== ============= ================ ================ ==========
NOARK NOARK
(dollars in thousands) Pipeline Consolidating Consolidated
Finance, L.L.C. Adjustments Statements
--------------- ------------- ------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents....................... $ - $ (1,343) $ 3,008
Accounts receivable - customers,
less reserve of $736.......................... - - 5,180
Accounts receivable - affiliates................ 2,436 (2,908) 366
Advances to parent.............................. - (42,892) -
Materials and supplies, at average cost......... - - 561
Prepayments and other........................... - - 48
--------------- ------------- ------------
Total current assets.......................... 2,436 (47,143) 9,163
OTHER PROPERTY AND INVESTMENTS, at cost........... - (183,406) -
PROPERTY, PLANT & EQUIPMENT:
In service...................................... - - 189,309
Construction work in progress................... - - 638
--------------- ------------- ------------
Total property, plant and equipment........... - - 189,947
Less accumulated depreciation............... - - 27,561
--------------- ------------- ------------
Net property, plant and equipment............... - - 162,386
DEFERRED CHARGES:
Other........................................... 71,000 (72,058) 12,913
--------------- ------------- ------------
TOTAL ASSETS...................................... $ 73,436 $ (302,607) $ 184,462
=============== ============= ============
24
Exhibit A
NOARK Pipeline System, Limited Partnership
Consolidating Balance Sheet
December 31, 2001
NOARK Ozark Gas Arkansas NOARK Ozark Gas
(dollars in thousands) Pipeline Transmission, Western Energy Gathering,
System, LP L.L.C. Pipeline, L.L.C. Services, L.L.C. L.L.C.
----------- ------------- ---------------- ---------------- ----------
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable - affiliates................... $ 10,579 $ - $ - $ 29,564 $ 3,657
Accounts payable................................ - 32 - 4 4,456
Accrued taxes................................... - 803 - - 7
Accrued interest................................ - - - - -
Long-term debt due within one year.............. 2,000 - - - -
Other........................................... - 3 - - -
----------- ------------- ---------------- ---------------- ----------
Total current liabilities..................... 12,579 838 - 29,568 8,120
LONG-TERM DEBT.................................... 71,000 - - - -
DEFERRED CREDITS AND OTHER LIABILITIES:
Other........................................... - 636 - - 1,426
STOCKHOLDERS' EQUITY:
Common stockholders' equity..................... 115,377 171,531 - - 2,019
Retained earnings............................... (9,318) 39,879 - (29,568) (454)
----------- ------------- ---------------- ---------------- ----------
Total stockholders' equity.................... 106,059 211,410 - (29,568) 1,565
----------- ------------- ---------------- ---------------- ----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY........ $ 189,638 $ 212,884 $ - $ - $ 11,111
=========== ============= ================ ================ ==========
NOARK NOARK
(dollars in thousands) Pipeline Consolidating Consolidated
Finance, L.L.C. Adjustments Statements
--------------- ------------- ------------
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable - affiliates................... $ - $ (43,800) $ -
Accounts payable................................ - (1,340) 3,152
Accrued taxes................................... - - 810
Accrued interest................................ 435 - 435
Long-term debt due within one year.............. 2,000 (2,000) 2,000
Other........................................... - - 3
--------------- ------------- ------------
Total current liabilities..................... 2,435 (47,140) 6,400
LONG-TERM DEBT.................................... 71,000 (71,000) 71,000
DEFERRED CREDITS AND OTHER LIABILITIES:
Other........................................... - (1,059) 1,003
STOCKHOLDERS' EQUITY:
Common stockholders' equity..................... 1 (173,551) 115,377
Retained earnings............................... - (9,857) (9,318)
--------------- ------------- ------------
Total stockholders' equity.................... 1 (183,408) 106,059
--------------- ------------- ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY........ $ 73,436 $ (302,607) $ 184,462
=============== ============= ============
25
Exhibit A
NOARK Pipeline System, Limited Partnership
Consolidating Statement of Income
Year Ended December 31, 2001
NOARK Ozark Gas Arkansas NOARK Ozark Gas
(dollars in thousands) Pipeline Transmission, Western Energy Gathering,
System, LP L.L.C. Pipeline, L.L.C. Services, L.L.C. L.L.C.
----------- ------------- ---------------- ---------------- ----------
OPERATING REVENUES................................ $ - $ 23,554 $ 39 $ 50 $ 65,605
COST OF GOODS SOLD................................ - 914 - 6,561 67,115
----------- ------------ ---------------- ----------------- -----------
Gross margin on revenues.......................... - 22,640 39 (6,511) (1,510)
Other operation and maintenance................. (2,049) 5,756 3 1 490
Depreciation and amortization................... 8 3,529 8 - 311
Taxes other than income......................... - 1,009 2 - 18
----------- ------------- ---------------- ---------------- ----------
OPERATING INCOME (LOSS)........................... 2,041 12,346 26 (6,512) (2,329)
OTHER INCOME, Net................................. - 25 - - 8
----------- ------------- ---------------- ---------------- ----------
EARNINGS (LOSS) BEFORE INTEREST AND TAXES......... 2,041 12,371 26 (6,512) (2,321)
INTEREST INCOME (EXPENSES):
Interest income................................. 126 - - - -
Interest on long-term debt...................... (5,427) (540) (9) - -
Other interest charges.......................... (2) - - - -
----------- ------------- ---------------- ---------------- ----------
Net interest income (expenses)................ (5,303) (540) (9) - -
NET INCOME (LOSS) BEFORE CONTRIBUTION
FROM SUBSIDIARIES............................... (3,262) 11,831 17 (6,512) (2,321)
INCOME FROM SUBSIDIARIES.......................... 3,015 - - - -
----------- ------------- ---------------- ---------------- ----------
NET INCOME (LOSS)................................. $ (247) $ 11,831 $ 17 $ (6,512) $ (2,321)
=========== ============= ================ ================ ==========
NOARK NOARK
(dollars in thousands) Pipeline Consolidating Consolidated
Finance, L.L.C. Adjustments Statements
--------------- ------------- ------------
OPERATING REVENUES................................ $ - $ (6,786) $ 82,462
COST OF GOODS SOLD................................ - (6,786) 67,804
--------------- ------------- ------------
Gross margin on revenues.......................... - - 14,658
Other operation and maintenance................. - - 4,201
Depreciation and amortization................... - - 3,856
Taxes other than income......................... - - 1,029
--------------- ------------- ------------
OPERATING INCOME (LOSS)........................... - - 5,572
OTHER INCOME, Net................................. - - 33
--------------- ------------- ------------
EARNINGS (LOSS) BEFORE INTEREST AND TAXES........ - - 5,605
INTEREST INCOME (EXPENSES):
Interest income................................. 5,315 (5,315) 126
Interest on long-term debt...................... (5,315) 5,315 (5,976)
Other interest charges.......................... - - (2)
--------------- ------------- ------------
Net interest income (expenses)................ - - (5,852)
NET INCOME (LOSS) BEFORE CONTRIBUTION
FROM SUBSIDIARIES............................... - - (247)
INCOME FROM SUBSIDIARIES.......................... - (3,015) -
--------------- ------------- ------------
NET INCOME (LOSS)................................. $ - $ (3,015) $ (247)
=============== ============= ============
26
Exhibit A
NOARK Pipeline System, Limited Partnership
Consolidating Statement of Retained Earnings
Year Ended December 31, 2001
NOARK Ozark Gas Arkansas NOARK Ozark Gas
(dollars in thousands) Pipeline Transmission, Western Energy Gathering,
System, LP L.L.C. Pipeline, L.L.C. Services, L.L.C. L.L.C.
----------- ------------- ---------------- ---------------- ----------
BALANCE AT BEGINNING OF PERIOD.................... $ (9,071) $ 28,048 $ 629 $ (23,056) $ 1,867
ADD - net income (loss)........................... (247) 11,831 17 (6,512) (2,321)
----------- ------------- ---------------- ---------------- ----------
Total......................................... (9,318) 39,879 646 (29,568) (454)
Merger of AWP, LLC................................ - - (646) - -
----------- ------------- ---------------- ---------------- ----------
BALANCE AT END OF PERIOD.......................... $ (9,318) $ 39,879 $ - $ (29,568) $ (454)
=========== ============= ================ ================ ==========
NOARK NOARK
(dollars in thousands) Pipeline Consolidating Consolidated
Finance, L.L.C. Adjustments Statements
--------------- ------------- ------------
BALANCE AT BEGINNING OF PERIOD.................... $ - $ (7,488) $ (9,071)
ADD - net income (loss)........................... - (3,015) (247)
--------------- ------------- ------------
Total......................................... - (10,503) (9,318)
Merger of AWP, LLC................................ - 646 -
--------------- ------------- ------------
BALANCE AT END OF PERIOD.......................... $ - $ (9,857) $ (9,318)
=============== ============= ============
27
Exhibit A
Transok Holding, LLC
Consolidating Balance Sheet
December 31, 2001
Transok Transok Transok Transok
(dollars in thousands) Holding, Transok, Gas Gathering, Gas Processing, Gas,
LLC LLC LLC LLC LLC
----------- ------------ -------------- --------------- ----------
ASSETS
CURRENT ASSETS:
Accounts receivable - customers,
less reserve of $1,162........................ $ - $ 13,314 $ 733 $ 1,467 $ 10,023
Accounts receivable - affiliates................ - - - 59,204 52,152
Accounts receivable - other,
less reserve of $0............................ - 714 4 - -
Fuel inventories................................ - 9,833 - - -
Materials and supplies, at average cost......... - 1,808 - - -
Accumulated deferred tax assets................. - - - - 14
----------- ------------ -------------- --------------- ----------
Total current assets.......................... - 25,669 737 60,671 62,189
OTHER PROPERTY AND INVESTMENTS, at cost........... (26,707) 333,343 - - -
PROPERTY, PLANT & EQUIPMENT:
In service...................................... - 434,545 93,926 232,223 -
Construction work in progress................... - 84 8,070 5,894 -
----------- ------------ -------------- --------------- ----------
Total property, plant and equipment........... - 434,629 101,996 238,117 -
Less accumulated depreciation............... - 16,603 12,788 22,378 -
----------- ------------ -------------- --------------- ----------
Net property, plant and equipment............... - 418,026 89,208 215,739 -
DEFERRED CHARGES:
Other........................................... - 9,628 151 327 1,671
----------- ------------ -------------- --------------- ----------
TOTAL ASSETS...................................... $ (26,707) $ 786,666 $ 90,096 $ 276,737 $ 63,806
=========== ============ ============== =============== ==========
Transok
(dollars in thousands) Consolidating Consolidated
Adjustments Statements
------------- ------------
ASSETS
CURRENT ASSETS:
Accounts receivable - customers,
less reserve of $1,162........................ $ - $ 25,537
Accounts receivable - affiliates................ (111,356) -
Accounts receivable - other,
less reserve of $0............................ - 718
Fuel inventories................................ - 9,833
Materials and supplies, at average cost......... - 1,808
Accumulated deferred tax assets................. - 14
------------- ------------
Total current assets.......................... (111,356) 37,910
OTHER PROPERTY AND INVESTMENTS, at cost........... (306,606) 30
PROPERTY, PLANT & EQUIPMENT:
In service...................................... - 760,694
Construction work in progress................... - 14,048
------------- ------------
Total property, plant and equipment........... - 774,742
Less accumulated depreciation............... - 51,769
------------- ------------
Net property, plant and equipment............... - 722,973
DEFERRED CHARGES:
Other........................................... - 11,723
------------- ------------
TOTAL ASSETS...................................... $ (417,962) $ 772,636
============= ============
28
Exhibit A
Transok Holding, LLC
Consolidating Balance Sheet
December 31, 2001
Transok Transok Transok Transok
(dollars in thousands) Holding, Transok, Gas Gathering, Gas Processing, Gas,
LLC LLC LLC LLC LLC
----------- ------------ -------------- --------------- ----------
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable - affiliates................... $ - $ 585,400 $ 18,572 $ - $ -
Accounts payable................................ - 13,528 (10) 194 9,111
Accrued taxes................................... - 2,997 740 933 112
Accrued interest................................ - 4,211 - - -
Long-term debt due within one year.............. - 50,000 - - -
Other........................................... - 4,402 16 8 -
----------- ------------ -------------- --------------- ----------
Total current liabilities..................... - 660,538 19,318 1,135 9,223
LONG-TERM DEBT.................................... - 113,250 - - -
DEFERRED CREDITS AND OTHER LIABILITIES:
Accumulated deferred income taxes............... - 31,582 18,684 48,966 -
Other........................................... - 8,003 - - -
----------- ------------ -------------- --------------- ----------
Total deferred credits and other liabilities.. - 39,585 18,684 48,966 -
STOCKHOLDERS' EQUITY:
Common stockholders' equity..................... - - 61,155 202,713 49,662
Retained earnings............................... (26,707) (26,707) (9,061) 23,923 4,921
----------- ------------ -------------- --------------- ----------
Total stockholders' equity.................... (26,707) (26,707) 52,094 226,636 54,583
----------- ------------ -------------- --------------- ----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY........ $ (26,707) $ 786,666 $ 90,096 $ 276,737 $ 63,806
=========== ============ ============== =============== ==========
Transok
(dollars in thousands) Consolidating Consolidated
Adjustments Statements
------------- ------------
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable - affiliates................... $ (111,356) $ 492,616
Accounts payable................................ - 22,823
Accrued taxes................................... - 4,782
Accrued interest................................ - 4,211
Long-term debt due within one year.............. - 50,000
Other........................................... - 4,426
------------- ------------
Total current liabilities..................... (111,356) 578,858
LONG-TERM DEBT.................................... - 113,250
DEFERRED CREDITS AND OTHER LIABILITIES:
Accumulated deferred income taxes............... - 99,232
Other........................................... - 8,003
------------- ------------
Total deferred credits and other liabilities.. - 107,235
STOCKHOLDERS' EQUITY:
Common stockholders' equity..................... (313,530) -
Retained earnings............................... 6,924 (26,707)
------------- ------------
Total stockholders' equity.................... (306,606) (26,707)
------------- ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY........ $ (417,962) $ 772,636
============= ============
29
Exhibit A
Transok Holding, LLC
Consolidating Statement of Income
Year Ended December 31, 2001
Transok Transok Transok Transok
(dollars in thousands) Holding, Transok, Gas Gathering, Gas Processing, Gas,
LLC LLC LLC LLC LLC
----------- ------------ -------------- --------------- ---------
OPERATING REVENUES................................ $ - $ 96,190 $ 10,809 $ 134,855 $ 505,022
COST OF GOODS SOLD................................ - 49,241 - 112,118 502,343
----------- ------------ --------------- --------------- ---------
Gross margin on revenues.......................... - 46,949 10,809 22,737 2,679
Other operation and maintenance................. - 12,745 11,797 16,315 201
Depreciation and amortization................... - 6,565 5,513 9,390 -
Taxes other than income......................... - 5,981 1,839 2,048 236
----------- ------------ -------------- --------------- ----------
OPERATING INCOME (LOSS)........................... - 21,658 (8,340) (5,016) 2,242
OTHER INCOME (EXPENSES), Net...................... - 346 88 (7) -
----------- ------------ -------------- --------------- ----------
EARNINGS (LOSS) BEFORE INTEREST AND TAXES......... - 22,004 (8,252) (5,023) 2,242
INTEREST INCOME (EXPENSES):
Interest income................................. - 89 - - -
Interest on long-term debt...................... - (13,004) - - -
Other interest charges.......................... - (39,996) - - -
----------- ------------ -------------- --------------- ----------
Net interest income (expenses)................ - (52,911) - - -
INCOME (LOSS) BEFORE TAXES........................ - (30,907) (8,252) (5,023) 2,242
INCOME TAX EXPENSE (BENEFIT)...................... - (11,864) (3,203) (1,907) 864
----------- ------------ -------------- --------------- ----------
NET INCOME (LOSS) BEFORE CONTRIBUTION
FROM SUBSIDIARIES............................... - (19,043) (5,049) (3,116) 1,378
LOSS FROM SUBSIDIARIES............................ (25,830) (6,787) - - -
----------- ------------ -------------- --------------- ----------
NET INCOME (LOSS)................................. $ (25,830) $ (25,830) $ (5,049) $ (3,116) $ 1,378
=========== ============ ============== =============== ==========
Transok
(dollars in thousands) Consolidating Consolidated
Adjustments Statements
------------- ------------
OPERATING REVENUES................................ $ (230,821) $ 516,055
COST OF GOODS SOLD: (230,821) 432,881
------------- ------------
Gross margin on revenues.......................... - 83,174
Other operation and maintenance................. - 41,058
Depreciation and amortization................... - 21,468
Taxes other than income......................... - 10,104
------------- ------------
OPERATING INCOME (LOSS)........................... - 10,544
OTHER INCOME (EXPENSES), Net...................... - 427
------------- ------------
EARNINGS (LOSS) BEFORE INTEREST AND TAXES......... - 10,971
INTEREST INCOME (EXPENSES):
Interest income................................. - 89
Interest on long-term debt...................... - (13,004)
Other interest charges.......................... - (39,996)
------------- ------------
Net interest income (expenses)................ - (52,911)
INCOME (LOSS) BEFORE TAXES........................ - (41,940)
INCOME TAX EXPENSE (BENEFIT)...................... - (16,110)
------------- ------------
NET INCOME (LOSS) BEFORE CONTRIBUTION
FROM SUBSIDIARIES............................... - (25,830)
LOSS FROM SUBSIDIARIES............................ 32,617 -
------------- ------------
NET INCOME (LOSS)................................. $ 32,617 $ (25,830)
============= ============
30
Exhibit A
Transok Holding, LLC
Consolidating Statement of Retained Earnings
Year Ended December 31, 2001
Transok Transok Transok Transok
(dollars in thousands) Holding, Transok, Gas Gathering, Gas Processing, Gas,
LLC LLC LLC LLC LLC
----------- ------------ -------------- --------------- ----------
BALANCE AT BEGINNING OF PERIOD.................... $ (877) $ (877) $ (4,012) $ 27,039 $ 3,543
ADD - net income (loss)........................... (25,830) (25,830) (5,049) (3,116) 1,378
----------- ------------ -------------- --------------- ----------
BALANCE AT END OF PERIOD.......................... $ (26,707) $ (26,707) $ (9,061) $ 23,923 $ 4,921
=========== ============ ============== =============== ==========
Transok
(dollars in thousands) Consolidating Consolidated
Adjustments Statements
------------- ------------
BALANCE AT BEGINNING OF PERIOD.................... $ (25,693) $ (877)
ADD - net income (loss)........................... 32,617 (25,830)
------------- ------------
BALANCE AT END OF PERIOD.......................... $ 6,924 $ (26,707)
============= ============
31