SEC Filing | OGE Energy Corporation

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, 1998, 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") and Origen Inc. ("Origen"). 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, 1998, Enogex had five wholly-owned active subsidiaries: Enogex Products Corporation, OGE Energy Resources Inc., Enogex Exploration Corporation, Enogex Arkansas Pipeline Corporation and Enogex Gas Gathering LLC. At December 31, 1998, Enogex Products Corporation owned one hundred percent interests in the Belvan Corp., the Belvan partnership and the Todd Ranch partnership, and an eighty percent interest in the NuStar Joint Venture. Enogex Arkansas Pipeline Corporation owned a seventy-five percent interest in the NOARK partnership. The NOARK partnership owned one hundred percent interests in the Ozark Gas Transmission LLC, the AWP LLC , the NOARK Energy Services LLC, the Ozark Gas Gathering -1-

LLC and the NOARK Pipeline Finance LLC. Enogex and each of its subsidiaries were incorporated under the laws of the State of Oklahoma. 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 are engaged in the drilling for and production of crude oil and natural gas. 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. At December 31, 1998, Origen had two wholly-owned active subsidiaries: OGE Energy Technologies and Geothermal Design and Engineering, Inc. ("GD&E"). Origen and each of its subsidiaries were incorporated under the laws of the State of Oklahoma. Origen is currently involved in the development of energy related products and services. 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: (a) Number of Kwh of electric energy sold (at retail or wholesale), and Mcf of natural or manufactured gas distributed at retail. None by Company 24,370,200,000 Kwh by OG&E (b) Number of Kwh of electric energy and Mcf of natural or manufactured gas distributed at retail outside the State in which each such company is organized. None by Company 2,369,280,000 Kwh by OG&E (c) Number of Kwh of electric energy and Mcf of natural or manufactured gas sold at wholesale outside the State in which each such company is organized, or at the State line. None by Company 1,526,965,000 Kwh by OG&E -2-

(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. None by Company 528,621,000 Kwh by OG&E 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. (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, 1998, the Company did not hold directly or indirectly any interest in an EWG or a foreign utility company. -3-

EXHIBITS A. Consolidating Statement of Income and Retained Earnings for the year ended December 31, 1998, and Consolidating Balance Sheet as of December 31, 1998, for OGE Energy Corp. (the "Company") and its subsidiary companies. B. Financial Data Schedule. C. An organizational chart showing the relationship of each EWG or foreign utility company to associate companies in the holding-company system. Exhibit C is not applicable. At December 31, 1998, the Company did not hold directly or indirectly any interest in an EWG or a foreign utility company. -4-

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 1999. OGE ENERGY CORP. (Registrant) By /s/ Donald R. Rowlett --------------------------------- Donald R. Rowlett Controller Corporate Accounting CORPORATE SEAL Attest: /s/ Irma B. Elliott - -------------------------------- Irma B. Elliott Vice President and Secretary Name, title and address of officer to whom notices and correspondence concerning this statement should be addressed: Donald R. Rowlett, Controller Corporate Accounting - -------------------------------------------------- P. O. BOX 321, Oklahoma City, Oklahoma 73101-0321 - -------------------------------------------------- -5-

EXHIBIT INDEX ------------- Exhibit Description ------- ----------- A. Consolidating Statement of Income and Retained Earnings for the year ended December 31, 1998, and Consolidating Balance Sheet as of December 31, 1998, for OGE Energy Corp. (the "Company") and its subsidiary companies. B. Financial Data Schedule. -6-

Exhibit A OGE Energy Corp. Consolidating Statement of Income Year Ended December 31, 1998 OGE Oklahoma Gas OGE (dollars in thousands except per share data) Energy and Electric Enogex Origen Consolidating Consolidated Corp. Company Inc. Inc. Adjustments Statements ----------- ------------- ---------- -------- ------------- ------------ OPERATING REVENUES................................ $ - $ 1,312,078 $ 505,506 $ 965 $ (200,812) $ 1,617,737 OPERATING EXPENSES: Fuel............................................ - 356,781 - - (41,587) 315,194 Purchased power................................. - 240,542 - - - 240,542 Gas and electricity purchased for resale........ - - 375,657 - (159,225) 216,432 Other operation and maintenance................. (3,838) 239,614 66,447 2,883 - 305,106 Depreciation.................................... 2,378 116,214 31,178 48 - 149,818 Current income taxes............................ (49) 86,527 (1,009) (747) - 84,722 Deferred income taxes, net...................... 67 24,197 4,809 (1) - 29,072 Deferred investment tax credits, net............ - (5,150) - - - (5,150) Taxes other than income......................... 1,442 43,130 6,587 29 - 51,188 ----------- ------------- ---------- -------- ------------- ------------ Total operating expenses...................... - 1,101,855 483,669 2,212 (200,812) 1,386,924 OPERATING INCOME.................................. - 210,223 21,837 (1,247) - 230,813 OTHER INCOME AND DEDUCTIONS: Interest income................................. 4,861 2,315 1,897 287 (5,799) 3,561 Other........................................... 933 (3,329) 4,593 - - 2,197 Income from subsidiaries........................ 166,881 - - - (166,881) - ----------- ------------- ---------- -------- ------------- ------------ Net other income and deductions .............. 172,675 (1,014) 6,490 287 (172,680) 5,758 INTEREST CHARGES: Interest on long-term debt...................... - 44,515 16,341 - - 60,856 Allowance for borrowed funds used during construction........................... - (1,071) - - - (1,071) Other........................................... 7,536 5,427 3,524 226 (5,799) 10,914 ----------- ------------- ---------- -------- ------------- ------------ Total interest charges, net................... 7,536 48,871 19,865 226 (5,799) 70,699 NET INCOME (LOSS)................................. 165,139 160,338 8,462 (1,186) (166,881) 165,872 PREFERRED DIVIDEND REQUIREMENTS................... - 733 - - - 733 ----------- ------------- ---------- -------- ------------- ------------ EARNINGS AVAILABLE FOR COMMON..................... $ 165,139 $ 159,605 $ 8,462 $(1,186) $ (166,881) $ 165,139 =========== ============= ========== ======== ============= ============ AVERAGE COMMON SHARES OUTSTANDING (thousands)......................... 80,772 80,772 EARNINGS PER AVERAGE COMMON SHARE.................................... $ 2.04 $ 2.04 -7-

Exhibit A OGE Energy Corp. Consolidating Statement of Retained Earnings Year Ended December 31, 1998 OGE Oklahoma Gas OGE (dollars in thousands) Energy and Electric Enogex Origen Consolidating Consolidated Corp. Company Inc. Inc. Adjustments Statements ----------- ------------- ---------- -------- ------------- ------------ BALANCE AT BEGINNING OF PERIOD.................... $ 472,063 $ 338,947 $ 16,139 $ (728) $ (354,358) $ 472,063 ADD - net income (loss)........................... 165,139 160,338 8,462 (1,186) (166,881) 165,872 ----------- ------------- ---------- -------- ------------- ------------ Total......................................... 637,202 499,285 24,601 (1,914) (521,239) 637,935 DEDUCT: Cash dividends declared on preferred stock............................ - 733 - - - 733 Cash dividends declared on common stock............................... 107,434 157,426 4,000 - (161,426) 107,434 ----------- ------------- ---------- -------- ------------- ------------ Total Cash Dividends.......................... 107,434 158,159 4,000 - (161,426) 108,167 ----------- ------------- ---------- -------- ------------- ------------ BALANCE AT END OF PERIOD.......................... $ 529,768 $ 341,126 $ 20,601 $(1,914) $ (359,813) $ 529,768 =========== ============= ========== ======== ============= ============ -8-

Exhibit A OGE Energy Corp. Consolidating Balance Sheet December 31, 1998 OGE Oklahoma Gas OGE (dollars in thousands) Energy and Electric Enogex Origen Consolidating Consolidated Corp. Company Inc. Inc. Adjustments Statements ----------- ------------- ---------- -------- ------------- ------------ ASSETS PROPERTY, PLANT & EQUIPMENT: In service............................... $ 25,470 $ 3,674,732 $ 704,761 $ 298 $ - $ 4,405,261 Construction work in progress............ - 28,439 7,571 - - 36,010 ----------- ------------- ---------- -------- ------------- ------------ Total property, plant and equipment.... 25,470 3,703,171 712,332 298 - 4,441,271 Less accumulated depreciation........ 1,191 1,727,472 185,982 76 - 1,914,721 ----------- ------------- ---------- -------- ------------- ------------ Net property, plant and equipment........ 24,279 1,975,699 526,350 222 - 2,526,550 OTHER PROPERTY AND INVESTMENTS, at cost.... 1,072,284 17,454 2,899 2,973 (1,063,928) 31,682 CURRENT ASSETS: Cash and cash equivalents................ - 312 - 66 - 378 Accounts receivable - customers, less reserve of $3,342................. - 91,434 49,801 - - 141,235 Accounts receivable - affiliates......... 99,867 - 16,443 - (116,310) - Accrued utility revenues................. - 22,500 - - - 22,500 Accounts receivable-other................ 324 7,723 4,787 68 - 12,902 Fuel inventories, at LIFO cost........... - 47,081 10,207 - - 57,288 Materials and supplies, at average cost.. 91 25,894 3,749 - - 29,734 Prepayments and other.................... 284 28,641 2,626 - - 31,551 Accumulated deferred tax assets.......... 94 6,889 827 1 - 7,811 ----------- ------------- ---------- -------- ------------- ------------ Total current assets................... 100,660 230,474 88,440 135 (116,310) 303,399 DEFERRED CHARGES: Advance payments for gas................. - 15,000 - - - 15,000 Income taxes recoverable through future rates........................... - 40,731 - - - 40,731 Other.................................... 3,670 40,739 22,158 - - 66,567 ----------- ------------- ---------- -------- ------------- ------------ Total deferred charges................. 3,670 96,470 22,158 - - 122,298 ----------- ------------- ---------- -------- ------------- ------------ TOTAL ASSETS............................... $1,200,893 $ 2,320,097 $ 639,847 $ 3,330 $ (1,180,238) $ 2,983,929 =========== ============= ========== ======== ============= ============ -9-

Exhibit A OGE Energy Corp. Consolidating Balance Sheet December 31, 1998 OGE Oklahoma Gas OGE (dollars in thousands) Energy and Electric Enogex Origen Consolidating Consolidated Corp. Company Inc. Inc. Adjustments Statements ----------- ------------- ---------- -------- ------------- ------------ CAPITALIZATION AND LIABILITIES CAPITALIZATION: Common stock and retained earnings.............. $1,043,382 $ 853,571 $ 207,270 $ 3,087 $ (1,063,928) $ 1,043,382 Cummulative preferred stock..................... - - - - - - Long-term debt.................................. - 702,912 232,671 - - 935,583 ----------- ------------- ---------- -------- ------------- ------------ Total capitalization.......................... 1,043,382 1,556,483 439,941 3,087 (1,063,928) 1,978,965 CURRENT LIABILITIES: Short-term debt................................. 119,100 - - - - 119,100 Accounts payable - affiliates................... - 67,045 49,270 (5) (116,310) - Accounts payable - other........................ 2,336 45,536 49,044 20 - 96,936 Dividends payable............................... 26,865 - - - - 26,865 Customers' deposits............................. - 23,984 1 - - 23,985 Accrued taxes................................... 8,483 18,932 3,085 - - 30,500 Accrued interest................................ - 15,931 5,150 - - 21,081 Long-term debt due within one year.............. - - 2,000 - - 2,000 Other........................................... 2,201 38,642 9,195 228 - 50,266 ----------- ------------- ---------- -------- ------------- ------------ Total current liabilities..................... 158,985 210,070 117,745 243 (116,310) 370,733 DEFERRED CREDITS AND OTHER LIABILITIES: Accrued pension and benefit obligation ......... (1,654) 18,162 1,444 - - 17,952 Accumulated deferred income taxes............... - 462,886 69,054 - - 531,940 Accumulated deferred investment tax credits..... - 67,728 - - - 67,728 Other........................................... 180 4,768 11,663 - - 16,611 ----------- ------------- ---------- -------- ------------- ------------ Total deferred credits and other liabilities.. (1,474) 553,544 82,161 - - 634,231 ----------- ------------- ---------- -------- ------------- ------------ TOTAL CAPITALIZATION AND LIABILITIES.............. $1,200,893 $ 2,320,097 $ 639,847 $ 3,330 $ (1,180,238) $ 2,983 929 =========== ============= ========== ======== ============= ============ -10-

Exhibit A Enogex Consolidating Statement of Income Year Ended December 31, 1998 Enogex OGE Enogex Enogex Enogex (dollars in thousands) Enogex Products Energy Exploration Arkansas Gas Inc. Corporation Resources Inc. Corporation Pipeline Corp. Gathering LLC --------- ----------- -------------- ----------- -------------- ------------- OPERATING REVENUES....................... $ 19,627 $ 51,314 $ 401,708 $ 21,524 $ 17,274 $ 46,140 OPERATING EXPENSES: Gas purchased for resale............... - 23,726 395,133 - 8,877 - Purchased Power........................ - - - - - - Other operation and maintenance........ 7,590 22,337 5,519 8,907 2,570 20,010 Depreciation........................... 7,713 3,249 1,276 8,388 2,641 7,911 Current income taxes................... 1,122 (1,475) (136) (3,537) (1,739) 4,756 Deferred income taxes, net............. (1,238) 1,281 16 2,082 923 1,745 Taxes other than income................ 1,650 627 157 49 1,201 2,903 --------- ----------- -------------- ----------- -------------- ------------- Total operating expenses............. 16,837 49,745 401,965 15,889 14,473 37,325 OPERATING INCOME......................... 2,790 1,569 (257) 5,635 2,801 8,815 OTHER INCOME AND DEDUCTIONS: Interest income........................ 8,636 46 22 1 530 - Other.................................. 124 1,114 552 28 3,259 - Income from subsidiaries............... 10,642 - - - - - --------- ----------- -------------- ----------- -------------- ------------- Net other income and deductions ..... 19,402 1,160 574 29 3,789 - INTEREST CHARGES: Interest on long-term debt............. 13,730 - - - 2,611 - Other.................................. - 2,984 590 2,009 5,279 - --------- ----------- -------------- ----------- -------------- ------------- Total interest charges, net.......... 13,730 2,984 590 2,009 7,890 - --------- ----------- -------------- ----------- -------------- ------------- NET INCOME (LOSS)........................ $ 8,462 $ (255) $ (273) $ 3,655 $ (1,300) $ 8,815 ========= =========== ============== =========== ============== ============= Enogex (dollars in thousands) Consolidating Consolidated Adjustments Statements ------------- ------------ OPERATING REVENUES....................... $ (52,081) $ 505,506 OPERATING EXPENSES: Gas purchased for resale............... (52,079) 375,657 Purchased Power........................ - - Other operation and maintenance........ (486) 66,447 Depreciation........................... - 31,178 Current income taxes................... - (1,009) Deferred income taxes, net............. - 4,809 Taxes other than income................ - 6,587 ------------- ------------ Total operating expenses............. (52,565) 483,669 OPERATING INCOME......................... 484 21,837 OTHER INCOME AND DEDUCTIONS: Interest income........................ (7,338) 1,897 Other.................................. (484) 4,593 Income from subsidiaries............... (10,642) - ------------- ------------ Net other income and deductions ..... (18,464) 6,490 INTEREST CHARGES: Interest on long-term debt............. - 16,341 Other.................................. (7,338) 3,524 ------------- ------------ Total interest charges, net.......... (7,338) 19,865 ------------- ------------ NET INCOME (LOSS)........................ $ (10,642) $ 8,462 ============= ============ -11-

Exhibit A Enogex Consolidating Statement of Retained Earnings Year Ended December 31, 1998 Enogex OGE Enogex Enogex Enogex (dollars in thousands) Enogex Products Energy Exploration Arkansas Gas Inc. Corporation Resources Inc. Corporation Pipeline Corp. Gathering LLC --------- ----------- -------------- ----------- -------------- ------------- BALANCE AT BEGINNING OF PERIOD........... $ 16,321 $ 5,673 $ 719 $ 6,943 $ - $ - ADD - net income (loss).................. 8,462 (255) (273) 3,655 (1,300) 8,815 --------- ----------- -------------- ----------- -------------- ------------- Total................................ 24,783 5,418 446 10,598 (1,300) 8,815 DEDUCT: Cash dividends declared on common stock...................... 4,000 - - - - - Other.................................. - - - - - - --------- ----------- --------- ---------------- -------------- ------------- Total Cash Dividends................. 4,000 - - - - - --------- ----------- --------- ---------------- -------------- ------------- BALANCE AT END OF PERIOD................. $ 20,783 $ 5,418 $ 446 $ 10,598 $ (1,300) $ 8,815 ========= =========== ========= ================ ============== ============= Enogex (dollars in thousands) Consolidating Consolidated Adjustments Statements ------------- ------------ BALANCE AT BEGINNING OF PERIOD........... $ (13,517) $ 16,139 ADD - net income (loss).................. (10,642) 8,462 ------------- ------------ Total................................ (24,159) 24,601 DEDUCT: Cash dividends declared on common stock...................... - 4,000 Other.................................. - - ------------- ------------ Total Cash Dividends................. - 4,000 ------------- ------------ BALANCE AT END OF PERIOD................. $ (24,159) $ 20,601 ============= ============ -12-

Exhibit A Enogex Consolidating Balance Sheet December 31, 1998 Enogex OGE Enogex Enogex Enogex (dollars in thousands) Enogex Products Energy Exploration Arkansas Gas Inc. Corporation Resources Inc. Corporation Pipeline Corp. Gathering LLC --------- ----------- -------------- ----------- -------------- ------------- ASSETS PROPERTY, PLANT & EQUIPMENT In service............................. $192,494 $ 75,730 $ 1,208 $ 90,658 $ 154,395 $ 190,276 Construction work in progress.......... 2 287 2,648 - 1,273 3,361 --------- ----------- -------------- ----------- -------------- ------------- Total property, plant and equipment.. 192,496 76,017 3,856 90,658 155 668 193,637 Less accumulated depreciation...... 64,987 8,846 94 32,448 16,954 62,653 --------- ----------- -------------- ----------- -------------- ------------- Net property, plant and equipment...... 127,509 67,171 3,762 58,210 138,714 130,984 OTHER PROPERTY AND INVESTMENTS, at cost.. 48,739 - 5 64 8,200 - CURRENT ASSETS: Cash and cash equivalents.............. - 560 3,519 - 1,327 - Accounts receivable - customers, less reserve of $901................. 2,432 3,370 36,494 2,236 5,269 - Accounts receivable - affiliates....... 169,486 - 14,098 - 1,275 - Accrued utility revenues............... - - - - - - Accounts receivable-other.............. 1,307 439 5 - 3,036 - Fuel inventories, at LIFO cost......... - - 10,267 - - - Materials and supplies, at average cost......................... 2,905 258 - 15 571 - Prepayments and other.................. 1,013 72 160 1,330 51 - Accumulated deferred tax assets........ 544 - 248 35 - - --------- ----------- -------------- ----------- -------------- ------------- Total current assets................. 177,687 4,699 64,791 3,616 11,529 - DEFERRED CHARGES 996 3,552 7,002 122 2,944 7,626 --------- ----------- -------------- ----------- -------------- ------------- TOTAL ASSETS............................. $354,931 $ 75,422 $ 75,560 $ 62,012 $ 161,387 $ 138,610 ========= =========== ============== =========== ============== ============= Enogex (dollars in thousands) Consolidating Consolidated Adjustments Statements ------------- ------------ ASSETS PROPERTY, PLANT & EQUIPMENT In service............................. $ - $ 704,761 Construction work in progress.......... - 7,571 ------------- ------------ Total property, plant and equipment.. - 712,332 Less accumulated depreciation...... - 185,982 ------------- ------------ Net property, plant and equipment...... - 526,350 OTHER PROPERTY AND INVESTMENTS, at cost.. (54,109) 2,899 CURRENT ASSETS: Cash and cash equivalents.............. (5,406) - Accounts receivable - customers, less reserve of $901................. - 49,801 Accounts receivable - affiliates....... (168,416) 16,443 Accrued utility revenues............... - - Accounts receivable-other.............. - 4,787 Fuel inventories, at LIFO cost......... (60) 10,207 Materials and supplies, at average cost......................... - 3,749 Prepayments and other.................. - 2,626 Accumulated deferred tax assets........ - 827 ------------- ------------ Total current assets................. (173,882) 88,440 DEFERRED CHARGES (84) 22,158 ------------- ------------ TOTAL ASSETS............................. $ (228,075) $ 639,847 ============= ============ -13-

Exhibit A Enogex Consolidating Balance Sheet December 31, 1998 Enogex OGE Enogex Enogex Enogex (dollars in thousands) Enogex Products Energy Exploration Arkansas Gas Inc. Corporation Resources Inc. Corporation Pipeline Corp. Gathering LLC --------- ----------- -------------- ----------- -------------- ------------- CAPITALIZATION AND LIABILITIES CAPITALIZATION: Common stock and retained earnings..... $ 72,295 $ 9,132 $ 15,448 $ 23,349 $ (1,299) $ 135,013 Long-term debt......................... 150,000 - - - 82,671 - --------- ----------- -------------- ----------- -------------- ------------- Total capitalization................. 222,295 9,132 15,448 23,349 81,372 135,013 CURRENT LIABILITIES: Accounts payable - affiliates.......... 55,537 48,527 14,180 27,018 70,352 4 Accounts payable - other............... 1,205 2,265 41,644 125 3,805 - Customers' deposits.................... 1 - - - - - Accrued taxes.......................... 640 435 12 12 842 1,144 Accrued interest....................... 4,289 - - - 861 - Long-term debt due within one year..... - - - - 2,000 - Other.................................. 7,906 2,055 4,134 1,461 1,113 - --------- ----------- -------------- ----------- -------------- ------------- Total current liabilities............ 69,578 53,282 59,970 28,616 78,973 1,148 DEFERRED CREDITS AND OTHER LIABILITIES: Accrued pension and benefit obligation. 1,440 - 4 - - - Accumulated deferred income taxes...... 52,153 5,935 19 10,047 923 - Other.................................. 9,465 7,073 119 - 119 2,449 --------- ----------- -------------- ----------- -------------- ------------- Total deferred credits and other liabilities........................ 63,058 13,008 142 10,047 1,042 2,449 --------- ----------- -------------- ----------- -------------- ------------- TOTAL CAPITALIZATION AND LIABILITIES..... $354,931 $ 75,422 $ 75,560 $ 62,012 $ 161,387 $ 138,610 ========= =========== ============== =========== ============== ============= Enogex (dollars in thousands) Consolidating Consolidated Adjustments Statements ------------- ------------ CAPITALIZATION AND LIABILITIES CAPITALIZATION: Common stock and retained earnings..... $ (46,668) $ 207,270 Long-term debt......................... - 232,671 ------------- ------------ Total capitalization................. (46,668) 439,941 CURRENT LIABILITIES: Accounts payable - affiliates.......... (166,348) 49,270 Accounts payable - other............... - 49,044 Customers' deposits.................... - 1 Accrued taxes.......................... - 3,085 Accrued interest....................... - 5,150 Long-term debt due within one year..... - 2,000 Other.................................. (7,474) 9,195 ------------- ------------ Total current liabilities............ (173,822) 117,745 DEFERRED CREDITS AND OTHER LIABILITIES: Accrued pension and benefit obligation. - 1,444 Accumulated deferred income taxes...... (23) 69,054 Other.................................. (7,562) 11,663 ------------- ------------ Total deferred credits and other liabilities........................ (7,585) 82,161 ------------- ------------ TOTAL CAPITALIZATION AND LIABILITIES..... $ (228,075) $ 639,847 ============= ============ -14-

Exhibit A Enogex Products Corporation Consolidating Statement of Income Year Ended December 31, 1998 Enogex Todd NuStar (dollars in thousands) Products Belvan Belvan Ranch Joint Corporation Corporation Partners LP Partners LP Venture ----------- ----------- ----------- ----------- --------- OPERATING REVENUES................................ $ 25,034 $ - $ 4,007 $ 848 $ 21,425 OPERATING EXPENSES: Gas purchased for resale........................ 6,974 - 3,043 649 13,060 Other operation and maintenance................. 16,114 123 915 170 5,015 Depreciation.................................... 1,200 4 233 104 1,708 Current income taxes............................ (1,475) - - - - Deferred income taxes, net...................... 1,281 - - - - Taxes other than income......................... 336 5 26 (7) 267 ----------- ----------- ----------- ----------- --------- Total operating expenses...................... 24,430 132 4,217 916 20,050 OPERATING INCOME.................................. 604 (132) (210) (68) 1,375 OTHER INCOME AND DEDUCTIONS: Interest income................................. 2 7 - - 37 Other........................................... 2,071 - 246 82 500 ----------- ----------- ----------- ----------- --------- Net other income and deductions............... 2,073 7 246 82 537 INTEREST CHARGES.................................. 2,932 9 - - 43 ----------- ----------- ----------- ----------- --------- NET INCOME (LOSS)................................. $ (255) $ (134) $ 36 $ 14 $ 1,869 =========== =========== =========== =========== ========= (dollars in thousands) Consolidating Consolidated Adjustments Statements ------------- ------------ OPERATING REVENUES................................ $ - $ 51,314 OPERATING EXPENSES: Gas purchased for resale........................ - 23,726 Other operation and maintenance................. - 22,337 Depreciation.................................... - 3,249 Current income taxes............................ - (1,475) Deferred income taxes, net...................... - 1,281 Taxes other than income......................... - 627 ------------- ------------ Total operating expenses...................... - 49,745 OPERATING INCOME.................................. - 1,569 OTHER INCOME AND DEDUCTIONS: Interest income................................. - 46 Other........................................... (1,785) 1,114 ------------- ------------ Net other income and deductions............... (1,785) 1,160 INTEREST CHARGES.................................. - 2,984 ------------- ------------ NET INCOME (LOSS)................................. $ (1,785) $ (255) ============= ============ -15-

Exhibit A Enogex Products Corporation Consolidating Statement of Retained Earnings Year Ended December 31, 1998 Enogex Todd NuStar (dollars in thousands) Products Belvan Belvan Ranch Joint Corporation Corporation Partners LP Partners LP Venture ----------- ----------- ----------- ----------- --------- BALANCE AT BEGINNING OF PERIOD.................... $ 5,673 $ - $ - $ - $ 1,525 ADD - net income (loss)........................... (255) (134) 36 14 1,869 ----------- ----------- ----------- ----------- --------- BALANCE AT END OF PERIOD.......................... $ 5,418 $ (134) $ 36 $ 14 $ 3,394 =========== =========== =========== =========== ========= (dollars in thousands) Consolidating Consolidated Adjustments Statements ------------- ------------ BALANCE AT BEGINNING OF PERIOD.................... $ (1,525) $ 5,673 ADD - net income (loss)........................... (1,785) (255) ------------- ------------ BALANCE AT END OF PERIOD.......................... $ (3,310) $ 5,418 ============= ============ -16-

Exhibit A Enogex Products Corporation Consolidating Balance Sheet December 31, 1998 Enogex Todd NuStar (dollars in thousands) Products Belvan Belvan Ranch Joint Corporation Corporation Partners LP Partners LP Venture ----------- ----------- ----------- ----------- --------- ASSETS PROPERTY, PLANT & EQUIPMENT: In service...................................... $ 23,117 $ 59 $ 10,431 $ 2,017 $ 40,106 Construction work in progress................... 8 - 92 - 187 ----------- ----------- ----------- ----------- --------- Total property, plant and equipment........... 23,125 59 10,523 2,017 40,293 Less accumulated depreciation............... 5,893 4 233 47 2,669 ----------- ----------- ----------- ----------- --------- Net property, plant and equipment............... 17,232 55 10,290 1,970 37,624 OTHER PROPERTY AND INVESTMENTS, at cost........... 43,785 134 - - - CURRENT ASSETS: Cash and cash equivalents....................... - 134 - - 959 Accounts receivable - customers................. 468 846 - - 2,056 Accounts receivable - affiliates................ - 171 - 757 - Accounts receivable-other....................... 204 4 - - 231 Materials and supplies, at average cost......... - - - - 258 Prepayments and other........................... 34 27 - - 11 ----------- ----------- ----------- ----------- --------- Total current assets.......................... 706 1,182 - 757 3,515 DEFERRED CHARGES.................................. 1,737 - 43 1,648 124 ----------- ----------- ----------- ----------- --------- TOTAL ASSETS...................................... $ 63,460 $ 1,371 $ 10,333 $ 4,375 $ 41,263 =========== =========== =========== =========== ========= (dollars in thousands) Consolidating Consolidated Adjustments Statements ------------- ------------ ASSETS PROPERTY, PLANT & EQUIPMENT: In service...................................... $ - $ 75,730 Construction work in progress................... - 287 ------------- ----------- Total property, plant and equipment........... - 76,017 Less accumulated depreciation............... - 8,846 ------------- ----------- Net property, plant and equipment............... - 67,171 OTHER PROPERTY AND INVESTMENTS, at cost........... (43,919) - CURRENT ASSETS: Cash and cash equivalents....................... (533) 560 Accounts receivable - customers................. - 3,370 Accounts receivable - affiliates................ (928) - Accounts receivable-other....................... - 439 Materials and supplies, at average cost......... - 258 Prepayments and other........................... - 72 ------------- ----------- Total current assets.......................... (1,461) 4,699 DEFERRED CHARGES.................................. - 3,552 ------------- ----------- TOTAL ASSETS...................................... $ (45,380) $ 75,422 ============= =========== -17-

Exhibit A Enogex Products Corporation Consolidating Balance Sheet December 31, 1998 Enogex Todd NuStar (dollars in thousands) Products Belvan Belvan Ranch Joint Corporation Corporation Partners LP Partners LP Venture ----------- ----------- ----------- ----------- --------- CAPITALIZATION AND LIABILITIES CAPITALIZATION: Common stock and retained earnings.............. $ 9,132 $ 180 $ 9,435 $ 4,169 $ 37,669 ----------- ----------- ----------- ----------- --------- Total capitalization.......................... 9,132 180 9,435 4,169 37,669 CURRENT LIABILITIES: Accounts payable - affiliates................... 46,720 536 - - 1,271 Accounts payable - other........................ 563 686 1 - 1,015 Accrued taxes................................... 89 1 76 6 263 Other........................................... 968 (1) 821 200 1,528 ----------- ----------- ----------- ----------- --------- Total current liabilities..................... 48,340 1,222 898 206 4,077 DEFERRED CREDITS AND OTHER LIABILITIES: Accumulated deferred income taxes............... 5,935 - - - - Other........................................... 53 (31) - - (483) ----------- ----------- ----------- ----------- --------- Total deferred credits and other liabilities.. 5,988 (31) - - (483) ----------- ----------- ----------- ----------- --------- TOTAL CAPITALIZATION AND LIABILITIES.............. $ 63,460 $ 1,371 $ 10,333 $ 4,375 $ 41,263 =========== =========== =========== =========== ========= (dollars in thousands) Consolidating Consolidated Adjustments Statements ------------- ------------ CAPITALIZATION AND LIABILITIES CAPITALIZATION: Common stock and retained earnings.............. $ (51,453) $ 9,132 ------------- ------------ Total capitalization.......................... (51,453) 9,132 CURRENT LIABILITIES: Accounts payable - affiliates................... - 48,527 Accounts payable - other........................ - 2,265 Accrued taxes................................... - 435 Other........................................... (1,461) 2,055 ------------- ------------ Total current liabilities..................... (1,461) 53,282 DEFERRED CREDITS AND OTHER LIABILITIES: Accumulated deferred income taxes............... - 5,935 Other........................................... 7,534 7,073 ------------- ------------ Total deferred credits and other liabilities.. 7,534 13,008 ------------- ------------ TOTAL CAPITALIZATION AND LIABILITIES.............. $ (45,380) $ 75,422 ============= ============ -18-

Exhibit A Enogex Arkansas Pipeline Corporation Consolidating Statement of Income Year Ended December 31, 1998 Enogex NOARK (dollars in thousands) Arkansas Pipeline Consolidating Consolidated Pipeline Corp. System LP Adjustments Statements -------------- --------- ------------- ------------ OPERATING REVENUES................................ $ - $ 17,274 $ - $ 17,274 OPERATING EXPENSES: Gas purchased for resale........................ - 8,877 - 8,877 Other operation and maintenance................. 40 2,530 - 2,570 Depreciation.................................... (364) 3,005 - 2,641 Current income taxes............................ (1,739) - - (1,739) Deferred income taxes, net...................... 923 - - 923 Taxes other than income......................... 1 1,200 - 1,201 -------------- --------- ------------- ------------ Total operating expenses...................... (1,139) 15,612 - 14,473 OPERATING INCOME.................................. 1,139 1,662 - 2,801 OTHER INCOME AND DEDUCTIONS: Interest income................................. 513 17 - 530 Other........................................... (1,010) 155 4,114 3,259 -------------- --------- ------------- ------------ Net other income and deductions............... (497) 172 4,114 3,789 INTEREST CHARGES.................................. 1,942 5,948 - 7,890 -------------- --------- ------------- ------------ NET INCOME (LOSS)................................. $ (1,300) $ (4,114) $ 4,114 $ (1,300) ============== ========= ============= ============ -19-

Exhibit A Enogex Arkansas Pipeline Corporation Consolidating Statement of Retained Earnings Year Ended December 31, 1998 Enogex NOARK (dollars in thousands) Arkansas Pipeline Consolidating Consolidated Pipeline Corp. System LP Adjustments Statements -------------- --------- ------------- ------------ BALANCE AT BEGINNING OF PERIOD.................... $ - $ - $ - $ - ADD - net income (loss)........................... (1,300) (4,114) 4,114 (1,300) -------------- --------- ------------- ------------ BALANCE AT END OF PERIOD.......................... $ (1,300) $ (4,114) $ 4,114 $ (1,300) ============== ========= ============= ============ -20-

Exhibit A Enogex Arkansas Pipeline Corporation Consolidating Balance Sheet December 31, 1998 Enogex NOARK (dollars in thousands) Arkansas Pipeline Consolidating Consolidated Pipeline Corp. System LP Adjustments Statements -------------- --------- ------------- ------------ ASSETS PROPERTY, PLANT & EQUIPMENT: In service...................................... $ 21 $177,783 $ (23,409) $ 154,395 Construction work in progress................... - 1,273 - 1,273 -------------- --------- ------------- ------------ Total property, plant and equipment........... 21 179,056 (23,409) 155,668 Less accumulated depreciation............... 3 17,126 (175) 16,954 -------------- --------- ------------- ------------ Net property, plant and equipment............... 18 161,930 (23,234) 138,714 OTHER PROPERTY AND INVESTMENTS, at cost........... 73,504 - (65,304) 8,200 CURRENT ASSETS: Cash and cash equivalents....................... - 1,327 - 1,327 Accounts receivable - customers................. - 5,269 - 5,269 Accounts receivable - affiliates................ - 2,317 (1,042) 1,275 Accrued utility revenues........................ - - - - Accounts receivable-other....................... 3,036 - - 3,036 Fuel inventories, at LIFO cost.................. - - - - Materials and supplies, at average cost......... - 571 - 571 Prepayments and other........................... - 51 - 51 Accumulated deferred tax assets................. - - - - -------------- --------- ------------- ------------ Total current assets.......................... 3,036 9,535 (1,042) 11,529 DEFERRED CHARGES.................................. - 13,431 (10,487) 2,944 -------------- --------- ------------- ------------ TOTAL ASSETS...................................... $ 76,558 $184,896 $ (100,067) $ 161,387 ============== ========= ============= ============ -21-

Exhibit A Enogex Arkansas Pipeline Corporation Consolidating Balance Sheet December 31, 1998 Enogex NOARK (dollars in thousands) Arkansas Pipeline Consolidating Consolidated Pipeline Corp. System LP Adjustments Statements -------------- --------- ------------- ------------ CAPITALIZATION AND LIABILITIES CAPITALIZATION: Common stock and retained earnings.............. $ (1,593) $ 99,319 $ (99,025) $ (1,299) Long-term debt.................................. 5,671 77,000 - 82,671 -------------- --------- ------------- ------------ Total capitalization.......................... 4,078 176,319 (99,025) 81,372 CURRENT LIABILITIES: Accounts payable - affiliates................... 71,394 - (1,042) 70,352 Accounts payable - other........................ - 3,805 - 3,805 Accrued taxes................................... (227) 1,069 - 842 Accrued interest................................ 390 471 - 861 Long-term debt due within one year.............. - 2,000 - 2,000 Other........................................... - 1,113 - 1,113 -------------- --------- ------------- ------------ Total current liabilities..................... 71,557 8,458 (1,042) 78,973 DEFERRED CREDITS AND OTHER LIABILITIES: Accumulated deferred income taxes............... 923 - - 923 Other........................................... - 119 - 119 -------------- --------- ------------- ------------ Total deferred credits and other liabilities.. 923 119 - 1,042 -------------- --------- ------------- ------------ TOTAL CAPITALIZATION AND LIABILITIES.............. $ 76,558 $184,896 $ (100,067) $ 161,387 ============== ========= ============= ============ -22-

Exhibit A NOARK Pipeline System LP Consolidating Statement of Income Year Ended December 31, 1998 NOARK Ozark Gas NOARK Ozark Gas NOARK (dollars in thousands) Pipeline Transmission AWP Energy Gathering Pipeline System LP LLC LLC Services LLC LLC Finance LLC ----------- ------------ ------------- ------------ --------- ----------- OPERATING REVENUES................................ $ 3,453 $ 5,762 $ 168 $ 9,835 $ 8,018 $ - OPERATING EXPENSES: Gas purchased for resale........................ - - - 11,767 7,072 - Other operation and maintenance................. 1,294 989 8 - 239 - Depreciation.................................... 2,177 689 37 - 102 - Taxes other than income......................... 629 513 37 - 21 - ----------- ------------ ------------- ------------ --------- ----------- Total operating expenses...................... 4,100 2,191 82 11,767 7,434 - OPERATING INCOME.................................. (647) 3,571 86 (1,932) 584 - OTHER INCOME AND DEDUCTIONS: Interest income................................. 17 - - - - 3,061 Other........................................... 2,460 149 - - 9 - ----------- ------------ ------------- ------------ --------- ----------- Net other income and deductions............... 2,477 149 - - 9 3,061 INTEREST CHARGES.................................. 5,944 3 1 - - 3,061 ----------- ------------ ------------- ------------ --------- ----------- NET INCOME (LOSS)................................. $ (4,114) $ 3,717 $ 85 $ (1,932) $ 593 $ - =========== ============ ============= ============ ========= =========== (dollars in thousands) Consolidating Consolidated Adjustments Statements ------------- ------------ OPERATING REVENUES................................ $ (9,962) $ 17,274 OPERATING EXPENSES: Gas purchased for resale........................ (9,962) 8,877 Other operation and maintenance................. - 2,530 Depreciation.................................... - 3,005 Taxes other than income......................... - 1,200 ------------- ------------ Total operating expenses...................... (9,962) 15,612 OPERATING INCOME.................................. - 1,662 OTHER INCOME AND DEDUCTIONS: Interest income................................. (3,061) 17 Other........................................... (2,463) 155 ------------- ------------ Net other income and deductions............... (5,524) 172 INTEREST CHARGES.................................. (3,061) 5,948 ------------- ------------ NET INCOME (LOSS)................................. $ (2,463) $ (4,114) ============= ============ -23-

Exhibit A NOARK Pipeline System LP Consolidating Statement of Retained Earnings Year Ended December 31, 1998 NOARK Ozark Gas NOARK Ozark Gas NOARK (dollars in thousands) Pipeline Transmission AWP Energy Gathering Pipeline System LP LLC LLC Services LLC LLC Finance LLC ----------- ------------ ------------- ------------ --------- ----------- BALANCE AT BEGINNING OF PERIOD.................... $ - $ - $ - $ - $ - $ - ADD - net income (loss)........................... (4,114) 3,717 85 (1,932) 593 - ----------- ------------ ------------- ------------ --------- ----------- BALANCE AT END OF PERIOD.......................... $ (4,114) $ 3,717 $ 85 $ (1,932) $ 593 $ - =========== ============ ============= ============ ========= =========== (dollars in thousands) Consolidating Consolidated Adjustments Statements ------------- ------------ BALANCE AT BEGINNING OF PERIOD.................... $ - $ - ADD - net income (loss)........................... (2,463) (4,114) ------------- ------------ BALANCE AT END OF PERIOD.......................... $ (2,463) $ (4,114) ============= ============ -24-

Exhibit A NOARK Pipeline System LP Consolidating Balance Sheet Year Ended December 31, 1998 NOARK Ozark Gas NOARK Ozark Gas NOARK (dollars in thousands) Pipeline Transmission AWP Energy Gathering Pipeline System LP LLC LLC Services LLC LLC Finance LLC ----------- ------------ ------------- ------------ --------- ----------- ASSETS PROPERTY, PLANT & EQUIPMENT: In service...................................... $ - $ 173,241 $ 2,327 $ - $ 2,215 $ - Construction work in progress................... - - - - 1,273 - ----------- ------------ ------------- ------------ --------- ----------- Total property, plant and equipment........... - 173,241 2,327 - 3,488 - Less accumulated depreciation............... - 16,326 499 - 301 - ----------- ------------ ------------- ------------ --------- ----------- Net property, plant and equipment............... - 156,915 1,828 - 3,187 - OTHER PROPERTY AND INVESTMENTS, at cost........... 176,891 - - - - - CURRENT ASSETS: Cash and cash equivalents....................... 1,317 - 10 - - - Accounts receivable - customers................. 1,281 1,880 131 1,884 93 - Accounts receivable - affiliates................ - 5,156 21 - 1,360 2,471 Materials and supplies, at average cost......... - 571 - - - - Prepayments and other........................... 20 20 11 - - - ----------- ------------ ------------- ------------ --------- ----------- Total current assets.......................... 2,618 7,627 173 1,884 1,453 2,471 DEFERRED CHARGES.................................. 2,155 11,160 116 - - 77,000 ----------- ------------ ------------- ------------ --------- ----------- TOTAL ASSETS...................................... $ 181,664 $ 175,702 $ 2,117 $ 1,884 $ 4,640 $ 79,471 =========== ============ ============= ============ ========= =========== (dollars in thousands) Consolidating Consolidated Adjustments Statements ------------- ------------ ASSETS PROPERTY, PLANT & EQUIPMENT: In service...................................... $ - $ 177,783 Construction work in progress................... - 1,273 ------------- ------------ Total property, plant and equipment........... - 179,056 Less accumulated depreciation............... - 17,126 ------------- ------------ Net property, plant and equipment............... - 161,930 OTHER PROPERTY AND INVESTMENTS, at cost........... (176,891) - CURRENT ASSETS: Cash and cash equivalents....................... - 1,327 Accounts receivable - customers................. - 5,269 Accounts receivable - affiliates................ (6,691) 2,317 Materials and supplies, at average cost......... - 571 Prepayments and other........................... - 51 ------------- ------------ Total current assets.......................... (6,691) 9,535 DEFERRED CHARGES.................................. (77,000) 13,431 ------------- ------------ TOTAL ASSETS...................................... $ (260,582) $ 184,896 ============= ============ -25-

Exhibit A NOARK Pipeline System LP Consolidating Balance Sheet Year Ended December 31, 1998 NOARK Ozark Gas NOARK Ozark Gas NOARK (dollars in thousands) Pipeline Transmission AWP Energy Gathering Pipeline System LP LLC LLC Services LLC LLC Finance LLC ----------- ------------ ------------- ------------ --------- ----------- CAPITALIZATION AND LIABILITIES CAPITALIZATION: Common stock and retained earnings.............. $ 99,319 $ 174,133 $ 2,078 $ (1,931) $ 2,611 $ - Long-term debt.................................. 77,000 - - - - 77,000 ----------- ------------ ------------- ------------ --------- ----------- Total capitalization.......................... 176,319 174,133 2,078 (1,931) 2,611 77,000 CURRENT LIABILITIES: Accounts payable - affiliates................... 2,649 - - 1,571 - - Accounts payable - other........................ 225 16 12 1,597 1,955 - Accrued taxes................................... - 1,030 27 - 12 - Accrued interest................................ 471 - - - - - Long-term debt due within one year.............. 2,000 - - - - 2,000 Other........................................... - 523 - 528 62 471 ----------- ------------ ------------- ------------ --------- ----------- Total current liabilities..................... 5,345 1,569 39 3,696 2,029 2,471 DEFERRED CREDITS AND OTHER LIABILITIES: Other........................................... - - - 119 - - ----------- ------------ ------------- ------------ --------- ----------- Total deferred credits and other liabilities.. - - - 119 - - ----------- ------------ ------------- ------------ --------- ----------- TOTAL CAPITALIZATION AND LIABILITIES.............. $ 181,664 $ 175,702 $ 2,117 $ 1,884 $ 4,640 $ 79,471 =========== ============ ============= ============ ========= =========== (dollars in thousands) Consolidating Consolidated Adjustments Statements ------------- ------------ CAPITALIZATION AND LIABILITIES CAPITALIZATION: Common stock and retained earnings.............. $ (176,891) $ 99,319 Long-term debt.................................. (77,000) 77,000 ------------- ------------ Total capitalization.......................... (253,891) 176,319 CURRENT LIABILITIES: Accounts payable - affiliates................... (4,220) - Accounts payable - other........................ - 3,805 Accrued taxes................................... - 1,069 Accrued interest................................ - 471 Long-term debt due within one year.............. (2,000) 2,000 Other........................................... (471) 1,113 ------------- ------------ Total current liabilities..................... (6,691) 8,458 DEFERRED CREDITS AND OTHER LIABILITIES: Other........................................... - 119 ------------- ------------ Total deferred credits and other liabilities.. - 119 ------------- ------------ TOTAL CAPITALIZATION AND LIABILITIES.............. $ (260,582) $ 184,896 ============= ============ -26-

Exhibit A Origen Consolidating Statement of Income Year Ended December 31, 1998 OGE Origen (dollars in thousands) Origen Energy Consolidating Consolidated Inc. Technologies GD&E Adjustments Statements --------- ------------ ---------- ------------- ------------ OPERATING REVENUES................................ $ - $ - $ 965 $ - $ 965 OPERATING EXPENSES: Other operation and maintenance................. 221 795 1,867 - 2,883 Depreciation.................................... - - 48 - 48 Current income taxes............................ (22) (359) (366) - (747) Deferred Income Taxes........................... - - (1) - (1) Taxes other than income......................... 6 23 - - 29 --------- ------------ ---------- ------------- ------------ Total operating expenses...................... 205 459 1,548 - 2,212 OPERATING INCOME.................................. (205) (459) (583) - (1,247) OTHER INCOME AND DEDUCTIONS: Interest income................................. 282 - 5 - 287 Other........................................... (570) - - 570 - Income from subsidiaries........................ (579) - - 579 - --------- ------------ ---------- ------------- ------------ Net other income and deductions............... (867) - 5 1,149 287 INTEREST CHARGES.................................. 114 112 - - 226 --------- ------------ ---------- ------------- ------------ NET INCOME (LOSS)................................. $ (1,186) $ (571) $ (578) $ 1,149 $ (1,186) ========= ============ ========== ============= ============ -27-

Exhibit A Origen Consolidating Statement of Retained Earnings Year Ended December 31, 1998 OGE Origen (dollars in thousands) Origen Energy Consolidating Consolidated Inc. Technologies GD&E Adjustments Statements --------- ------------ ---------- ------------- ------------ BALANCE AT BEGINNING OF PERIOD.................... $ (728) $ (966) $ (336) $ 1,302 $ (728) ADD - net income (loss)........................... (1,186) (571) (578) 1,149 (1,186) --------- ------------ ---------- ------------- ------------ BALANCE AT END OF PERIOD.......................... $ (1,914) $ (1,537) $ (914) $ 2,451 $ (1,914) ========= ============ ========== ============= ============ -28-

Exhibit A Origen Consolidating Balance Sheet December 31, 1998 OGE Origen (dollars in thousands) Origen Energy Consolidating Consolidated Inc. Technologies GD&E Adjustments Statements --------- ------------ ---------- ------------- ------------ ASSETS PROPERTY, PLANT & EQUIPMENT: In service...................................... $ - $ - $ 298 $ - $ 298 --------- ------------ ---------- ------------- ------------ Total property, plant and equipment........... - - 298 - 298 Less accumulated depreciation............... - - 76 - 76 --------- ------------ ---------- ------------- ------------ Net property, plant and equipment............... - - 222 - 222 OTHER PROPERTY AND INVESTMENTS, at cost........... 1,523 - - 1,450 2,973 CURRENT ASSETS: Cash and cash equivalents....................... - - 66 - 66 Accounts receivable - affiliates................ 2,504 - - (2,504) - Accounts receivable - other..................... - - 68 - 68 Accumulated deferred tax assets................. - - 1 - 1 --------- ------------ ---------- ------------- ------------ Total current assets.......................... 2,504 - 135 (2,504) 135 --------- ------------ ---------- ------------- ------------ TOTAL ASSETS...................................... $ 4,027 $ - $ 357 $ (1,054) $ 3,330 ========= ============ ========== ============= ============ -29-

Exhibit A Origen Consolidating Balance Sheet December 31, 1998 OGE Origen (dollars in thousands) Origen Energy Consolidating Consolidated Inc. Technologies GD&E Adjustments Statements --------- ------------ ---------- ------------- ------------ CAPITALIZATION AND LIABILITIES CAPITALIZATION: Common stock and retained earnings.............. $ 3,087 $ (1,536) $ 86 $ 1,450 $ 3,087 --------- ------------ ---------- ------------- ------------ Total capitalization.......................... 3,087 (1,536) 86 1,450 3,087 CURRENT LIABILITIES: Accounts payable - affiliates................... 929 1,536 34 (2,504) (5) Accounts payable - other........................ 11 - 9 - 20 Accrued taxes................................... - - - - - Other........................................... - - 228 - 228 --------- ------------ ---------- ------------- ------------ Total current liabilities..................... 940 1,536 271 (2,504) 243 DEFERRED CREDITS AND OTHER LIABILITIES............ - - - - - --------- ------------ ---------- ------------- ------------ TOTAL CAPITALIZATION AND LIABILITIES.............. $ 4,027 $ - $ 357 $ (1,054) $ 3,330 ========= ============ ========== ============= ============ -30-

OPUR3 This schedule contains summary financial information extracted from the OGE Energy Corp. Consolidated Statement of Income and Balance Sheet as reported on Form U-3A-2 as of December 31, 1998 and is qualified in its entirety by reference to such Form U-3A-2. 1,000 YEAR DEC-31-1998 JAN-1-1998 DEC-31-1998 PER-BOOK 2,983,929 1,617,737 165,872