Washington, D.C.
For the Fiscal Year Ended September 30, 2003
Filed Pursuant to the
Public Utility Holding Company Act of 1935
by
6363 Main Street, Williamsville, N.Y. 14221
NATIONAL FUEL GAS COMPANY
FORM U5S - ANNUAL REPORT
For the Fiscal Year Ended September 30, 2003
TABLE OF CONTENTS
Page
ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF
SEPTEMBER 30, 2003 3
ITEM 2. ACQUISITIONS OR SALES OF UTILITY ASSETS 9
ITEM 3. ISSUE, SALE, PLEDGE, GUARANTEE OR ASSUMPTION OF
SYSTEM SECURITIES 9
ITEM 4. ACQUISITION, REDEMPTION OR RETIREMENT OF SYSTEM
SECURITIES 10
ITEM 5. INVESTMENTS IN SECURITIES OF NONSYSTEM COMPANIES 11
ITEM 6. OFFICERS AND DIRECTORS
Part I. Names, principal business address and
positions held as of September 30, 2003 12
Part II. Financial connections as of September 30, 2003 17
Part III. Compensation and other related information 17
ITEM 7. CONTRIBUTIONS AND PUBLIC RELATIONS 23
ITEM 8. SERVICE, SALES AND CONSTRUCTION CONTRACTS
Part I. Intercompany sales and services
(1) Salaries of officers of the Registrant 24
(2) Services rendered by Statutory Subsidiaries 25
(3) Services rendered by Registrant 33
Part II. Contracts to purchase services or goods
between any System company and any affiliate 34
Part III. Employment of any person by any System
company for the performance on a continuing
basis of management services 34
ITEM 9. WHOLESALE GENERATORS AND FOREIGN UTILITY COMPANIES 34
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS
Financial Statements (Index) 37
Exhibits 99
SIGNATURE 114
Number of Common Percent of Issuer Owner's
Name of Company Shares Owned Voting Power Book Value Book Value
--------------- ---------------- ------------ ---------- ----------
Registrant: (Thousands of Dollars)
National Fuel Gas Company
(Parent, Company or Registrant) - - - -
Statutory Subsidiaries:
National Fuel Gas Distribution
Corporation (Distribution
Corporation) (Note 1) 2,000 100% $548,312 $548,312
Unsecured Debt (Note 9) - - $411,310 $411,310
National Fuel Gas Supply
Corporation (Supply
Corporation) (Note 2) 1,013,802 100% $321,087 $321,087
Unsecured Debt (Note 9) - - $114,770 $114,770
Seneca Resources Corporation
(Seneca Resources) (Note 3) 100,000 100% $ 76,037 $ 76,037
Unsecured Debt (Note 9) - - $721,250 $721,250
3062782 Nova Scotia Co.
(NSULC1) (Note 3) 165,350,317 100% $(67,117) $(67,117)
Unsecured Debt (Note 9) - - $144,908 $144,908
Seneca Energy Canada Inc.
(Note 3) 10,597,289 100% $ 94,717 $ 94,717
Seneca Player Corp.
(Note 3) 1 100% $ 3,084 $ 3,084
3062783 Nova Scotia Co.
(NSULC2) (Note 3) 2,124,467 100% $ (343) $ (343)
Unsecured Debt (Note 9) - - $ 1,889 $ 1,889
Empire Exploration Company,
Empire 1983 Drilling
Program, Empire 1983
Joint Venture (Note 10) N/A N/A $ 970 $ 970
Highland Forest Resources, Inc.
(Highland) (Note 4) 351 100% $115,164 $115,164
Unsecured Debt (Note 9) - - $ 78,800 $ 78,800
Empire State Pipeline Company,
LLC (Empire LLC) (Note 4) N/A 100% $141,908 $141,908
Empire State Pipeline
(Empire) (Note 4) N/A 50% $ 42,286 $ 42,286
St. Clair Pipeline Company,
LLC (St. Clair LLC) (Note 4) N/A 100% $ 42,896 $ 42,896
Empire State Pipeline
(Empire) (Note 4) N/A 50% $ 42,285 $ 42,285
Secured Debt - - $ 50,767 $ 50,767
Data-Track Account Services,
Inc. (Data-Track) (Note 5) 1,000 100% $ 756 $ 756
Leidy Hub, Inc. (Leidy Hub)
(Note 6) 4,000 100% $ 741 $ 741
National Fuel Resources, Inc.
(NFR) (Note 7) 10,000 100% $ 44,507 $ 44,507
Horizon Energy Development, Inc.
(Horizon) (Notes 8 and 11) 4,750 100% $ 36,863 $ 36,863
Unsecured Debt (Note 9) - - $119,470 $119,470
Horizon Energy Holdings, Inc.
(HEHI) (Note 11) 2,000 100% $158,723 $158,723
ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF SEPTEMBER 30, 2003
(Continued)
Number of Common Percent of Issuer Owner's
Name of Company Shares Owned Voting Power Book Value Book Value
--------------- ---------------- ------------ ---------- ----------
Registrant: (Thousands of Dollars)
Horizon Energy Development
B.V. (HED B.V.) (Note 11) 400 100% $158,723 $158,723
Unsecured Debt (Note 9) - - $ - $ -
Horizon Energy Bulgaria Ltd.
(HEB Ltd.) (Note 11) N/A 100% (Note 11) (Note 11)
Sofia Energy EAD
(SE AD) (Note 11) N/A 100% (Note 11) (Note 11)
United Energy, a.s. .
(UE) (Note 11) 8,475,419 85.16% $156,979 $156,979
Unsecured Debt (Note 9) - - $ 17,241 $ 17,241
Teplarna Liberec, a.s.
(TL) (Note 11) 70 70% $ 11,541 $ 11,541
Lounske tepelne
Hospodarstvi, s.r.o
(LTH) (Note 11) N/A 100% $ - $ -
Teplo Branany, s.r.o.
(TB) (Note 11) N/A 49% $ - $ -
ENOP Company, s.r.o.
(ENOP)(Note 11) N/A 100% $ 513 $ 513
Horizon Energy Development,
s.r.o. (HED) (Note 11) N/A 100% $ 1,243 $ 1,243
Montenero Energia s.r.l.
(ME) (Note 11) N/A 50% (Note 11) (Note 11)
Upstate Energy Inc. (Upstate)
(Note 12) 1,000 100% $ 2,345 $ 2,345
Unsecured Debt (Note 9) - - $ 48,300 $ 48,300
Toro Partners, LLC
(Toro LLC) (Note 12) N/A 100% $ 2,090 $ 2,090
Unsecured Debt (Note 9) - - $ 48,000 $ 48,000
Toro Partners, LP
(Toro LP) (Note 12) N/A 100% $ 50,275 $ 50,275
Toro Energy of Michigan, LLC N/A 100% $ 4,672 $ 4,672
Toro Energy of Ohio-Statewide, LLC N/A 100% $ 397 $ 397
Toro Energy of Ohio, LLC N/A 100% $ 7,170 $ 7,170
Toro Energy of Kentucky, LLC N/A 100% $ 4,163 $ 4,163
Toro Energy of Missouri, LLC N/A 100% $ 6,559 $ 6,559
Toro Energy of Maryland, LLC N/A 100% $ 4,519 $ 4,519
Toro Energy of Indiana, LLC N/A 100% $ 5,769 $ 5,769
Toro Energy of Ohio-American, LLC N/A 100% $ 15,476 $ 15,476
Seneca Independence Pipeline
Company (SIP) (Note 13) 1,000 100% $ (9,777) $ (9,777)
Unsecured Debt (Note 9) - - $ 14,400 $ 14,400
Niagara Independence Marketing
Company (NIM) (Note 14) 1,000 100% $ 1 $ 1
Horizon Power, Inc. (Power)
(Note 15) 1,000 100% $ 4,892 $ 4,892
Unsecured Debt (Note 9) - - $ 18,800 $ 18,800
Seneca Energy II, LLC
(Seneca Energy) N/A 50% (Note 15) (Note 15)
Model City Energy, LLC
(Model City) N/A 50% (Note 15) (Note 15)
ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF SEPTEMBER 30, 2003
(Continued)
Number of Common Percent of Issuer Owner's
Name of Company Shares Owned Voting Power Book Value Book Value
--------------- ---------------- ------------ ---------- ----------
Registrant: (Thousands of Dollars)
Energy Systems North East, LLC
(ESNE) N/A 50% (Note 15) (Note 15)
Notes:
| Power owns a 50% limited liability company interest in each of Seneca Energy II, LLC, a New York limited liability company formed in February 2000 (Seneca Energy), Model City Energy, LLC, a New York limited liability company formed in February 2000 (Model City), and Energy Systems North East, LLC, a Delaware limited liability company formed in September 2000 (ESNE). "Issuer Book Value" and "Owner's Book Value" for Seneca Energy, Model City and ESNE are filed pursuant to Rule 104(b). |
Principal Issuer Owner's
Name of Company Amount Book Book
(Issuer) Security Owned by Registrant Owed Value Value
--------------- ---------------------------- ---------- ---------- ---------
(Thousands of Dollars)
----------------------
Distribution
Corporation Intercompany Notes:
7.99% Due February 1, 2004 $100,000 $100,000 $100,000
5.35% Due March 1, 2013 90,000 90,000 90,000
6.79% Due September 15, 2022 29,310 29,310 29,310
7.46% Due March 30, 2023 49,000 49,000 49,000
7.50% Due June 13, 2025 50,000 50,000 50,000
1.22% System Money Pool(1) 93,000 93,000 93,000
------- ------- -------
411,310 411,310 411,310
------- ------- -------
Supply
Corporation Intercompany Notes:
7.99% Due February 1, 2004 25,000 25,000 25,000
6.95% Due August 1, 2004 50,000 50,000 50,000
5.35% Due March 1, 2013 30,000 30,000 30,000
6.79% Due September 15, 2022 9,770 9,770 9,770
------- ------- -------
114,770 114,770 114,770
------- ------- -------
Seneca
Resources Intercompany Notes:
6.95% Due August 1, 2004 50,000 50,000 50,000
6.39% Due May 27, 2008 120,000 120,000 120,000
6.18% Due March 1, 2009 100,000 100,000 100,000
7.70% Due October 22, 2010 200,000 200,000 200,000
6.82% Due November 21, 2011 120,000 120,000 120,000
5.35% Due March 1, 2013 100,000 100,000 100,000
6.79% Due September 15, 2022 48,550 48,550 48,550
1.22% System Money Pool (1) (17,300) (17,300) (17,300)
------- ------- -------
721,250 721,250 721,250
------- ------- -------
NSULC1 7.00% Revolving Demand Loan 144,908 144,908 144,908
NSULC2 7.00% Revolving Demand Loan 1,889 1,889 1,889
------- ------- -------
146,797 146,797 146,797
------- ------- -------
Highland 6.82% Due November 21, 2011 30,000 30,000 30,000
5.35% Due March 1, 2013 30,000 30,000 30,000
1.22% System Money Pool(1) 18,800 18,800 18,800
------ ------ ------
78,800 78,800 78,800
------ ------ ------
Horizon Intercompany Notes:
6.39% Due May 27, 2008 80,000 80,000 80,000
6.79% Due September 15, 2022 9,770 9,770 9,770
1.23% Line of credit(2) 29,700 29,700 29,700
------- ------- -------
119,470 119,470 119,470
------- ------- -------
UE 2.855%(3) Payable Quarterly
Through December 2004 3,536 3,536 3,536
6.35% Payable Quarterly
Through September 2006 13,705 13,705 13,705
------ ------ ------
17,241 17,241 17,241
------ ------ ------
Upstate 1.22% System Money Pool(1) 48,300 48,300 48,300
------ ------ ------
Toro Partners, LLC 1.22% Line of Credit 48,000 48,000 48,000
------ ------ ------
SIP 1.22% System Money Pool(1) 14,400 14,400 14,400
------ ------ ------
Horizon
Power Inc. 1.23% Line of Credit(2) 18,800 18,800 18,800
------ ------ ------
$1,739,138 $1,739,138 $1,739,138
========== ========== ==========
None during fiscal year ended September 30, 2003.
ITEM 3. ISSUE, SALE, PLEDGE, GUARANTEE OR ASSUMPTION OF SYSTEM SECURITIES
Name of
Company
Acquiring,
Redeeming Number of Shares or
or Retiring Principal Amount Commission
----------------------------
Name of Issuer and Title of Issue Securities Acquired Redeemed Retired Consideration Authorization
--------------------------------- ----------- -------- -------- ------- ------------- -------------
(Thousands of Dollars)
------------------------------------
Registered Holding Company:
Registrant:
7.30% Note maturing
February 18, 2003 Registrant 150,000 150,000 Rule 42
5.25% Note maturing
March 1, 2013 Registrant 250,000 File No. 70-10074
6.50% Note maturing
September 15, 2022 Registrant 300 300 Rule 42
8.48% Note maturing
July 15, 2024 Registrant 50,000 52,545 Rule 42
6.214% Note maturing
August 15, 2027 Registrant 2,300 2,250 Rule 42
Subsidiaries of Registered Holding Company:
Seneca Resources*:
7.48% Note maturing Seneca
February 18, 2003 Resources 100,000 100,000 Rule 42
5.35% Note maturing Seneca
March 1, 2013 Resources 100,000 100,000 File No. 70-10074
6.79% Note maturing Seneca
September 15, 2022 Resources 300 300 Rule 42
6.26% Note maturing Seneca
August 15, 2027 Resources 1,150 1,125 Rule 42
Highland:
5.35% Note maturing
March 1, 2013 Highland 30,000 30,000 File No. 70-10074
Distribution Corporation:
7.48% Note maturing Distribution
February 18, 2003 Corporation 50,000 50,000 Rule 42
5.35% Note maturing Distribution
March 1, 2013 Corporation 90,000 90,000 File No. 70-10074
8.55% Note maturing Distribution
July 15, 2024 Corporation 20,000 21,018 Rule 42
6.26% Note maturing Distribution
August 15, 2027 Corporation 690 675 Rule 42
Supply Corporation:
5.35% Note maturing Supply
March 1, 2013 Corporation 30,000 30,000 File No. 70-10074
8.55% Note maturing Supply
July 15, 2024 Corporation 30,000 31,527 Rule 42
6.26% Note maturing Supply
August 15, 2027 Corporation 230 225 Rule 42
* As reported in the Registrant’s Rule 24 certificate in File No. 70-10074 for the quarter ended September 30, 2003, the Registrant reorganized its Canadian exploration and production subsidiaries in connection with the sale of its Southeast Saskatchewan properties. After the reorganization, Seneca Resources owns 100% of the common stock of NSULC1, which in turn owns 100% of the common stock of SECI, Seneca Resources’ Canadian operating company. See Item I, Note 3 for further discussion of Seneca Resources’ Canadian subsidiaries.
Name of
Company
Acquiring,
Redeeming Number of Shares or
or Retiring Principal Amount Commission
----------------------------
Name of Issuer and Title of Issue Securities Acquired Redeemed Retired Consideration Authorization
--------------------------------- ----------- -------- -------- ------- ------------- -------------
(Thousands of Dollars)
------------------------------------
Registered Holding Company:
Horizon:
6.26% Note maturing
August 15, 2027 Horizon 230 225 Rule 42
ITEM 5. INVESTMENTS IN SECURITIES OF NONSYSTEM COMPANIES
Number of Aggregate
1. Name of Owner Persons Business of Persons Investment
------------- --------- ------------------- ----------
None.
Names of System Companies with Which Connected
----------------------------------------------
National National Highland
Fuel Gas Fuel Gas Seneca Forest
Distribution Supply Resources Resources
Registrant Corp. Corp. Corp.* Inc.**
-----------------------------------------------------------------------
P. C. Ackerman Williamsville, NY (1) |COB,CEO,D,P, s | COB, D, s | COB, D, s | COB, D, s |COB, D, s |
B. J. Kennedy Williamsville, NY (1) | D, df | - | - | - | - |
B. S. Lee Sun Lakes, AZ (2) | D, df | - | - | - | - |
G. L. Mazanec Houston, TX (3) | D, df | - | - | - | - |
J. F. Riordan Des Plaines, IL (17)| D, df | - | - | - | - |
R. T. Brady East Aurora, NY (4) | D, df | - | - | - | - |
J. V. Glynn Niagara Falls, NY (9) | D, df | - | - | - | - |
R E. Kidder Jamestown, NY (24)| D, df | - | - | - | - |
R D. Cash Salt Lake City, UT (27)| D, df | - | - | - | - |
J. R. Peterson Williamsville, NY (1) | AS, s | - | GC, s | - | - |
J. A. Beck Houston, TX (5) | - | - | - | D, P, s | P, D |
D. P. Butler Houston, TX (5) | - | - | - | S, s | S |
T. L. Atkins Houston, TX (5) | - | - | - | T, AS, s | T |
J. F. McKnight Houston, TX (5) | - | - | - | VP, s | - |
B. L. McMahon Santa Paula, CA (6) | - | - | - | SVP, s | - |
A. M. Cellino Williamsville, NY (1) | S, s | SVP, S, s | D, s | - | - |
P. M. Ciprich Williamsville, NY (1) | s | AS, GC, s | - | - | - |
W. E. DeForest Williamsville, NY (1) | - | SVP, D, s | - | - | - |
B. H. Hale Williamsville, NY (1) | - | - | - | - | - |
J. P. Pawlowski Williamsville, NY (1) | CFO, T, s | D, SVP, T, s | T, S, s | s | s |
J. R. Pustulka Williamsville, NY (1) | - | s | D, SVP, s | - | - |
J. D. Ramsdell Williamsville, NY (1) | - | D, SVP, s | s | s | - |
D. J. Seeley Williamsville, NY (1) | - | SVP, s | P, D, s | - | - |
D. F. Smith Williamsville, NY (1) | - | P, D, s | SVP, s | D | - |
R. J. Tanski Williamsville, NY (1) | C, s | D, SVP, C, s | s | s | s |
C. M. Carlotti Erie, PA (16)| - | VP, s | s | - | - |
D. L. DeCarolis Williamsville, NY (12)| - | - | - | - | - |
R. E. Klein Williamsville, NY (1) | - | AC, s | s | s | s |
S. Wagner Williamsville, NY (1) | s | AT, s | s | s | s |
B. Heine Williamsville, NY (1) | - | AVP, s | - | - | - |
J. Lesch Buffalo, NY (18)| - | AVP, s | s | - | - |
D. Wassum Williamsville, NY (1) | - | - | - | - | - |
--------------------------------------------------------------------------------------------------------------
Position Symbol Key
--------------------------------------------------------------------
COB - Chairman of the Board of Directors df - Director's Fees
CEO - Chief Executive Officer S - Secretary
CFO - Chief Financial Officer AS - Assistant Secretary
P - President C - Controller
EVP - Executive Vice President AC - Assistant Controller
SVP - Senior Vice President D - Director
VP - Vice President s - Salary
AVP - Assistant Vice President T - Treasurer
GC - General Counsel AT - Assistant Treasurer
See page 16 for Notes.
Data-
Track National Horizon Niagara Seneca
Account Fuel Energy Upstate Indep. Indep. Horizon
Services, Resources, Development, Leidy Hub, Energy Marketing Pipeline Power
Inc. Inc. Inc.*** Inc. Inc.**** Co. Co. Inc.*****
-----------------------------------------------------------------------------------------------
COB, P, D, s| s | P, D, s | COB, D | - | COB, D | COB, D | - |
- | - | - | - | - | - | - | - |
- | - | - | - | - | - | - | - |
- | - | - | - | - | - | - | - |
- | - | - | - | - | - | - | - |
- | - | - | - | - | - | - | - |
- | - | - | - | - | - | - | - |
- | - | - | - | - | - | - | - |
- | - | - | - | - | - | - | - |
- | - | - | - | - | - | - | - |
- | - | - | - | D | D, P | - | - |
S, T | - | - | - | S | S | - | S, T |
- | - | - | - | T | T | - | - |
- | - | - | - | - | - | - | - |
- | - | - | - | - | - | - | - |
- | - | - | - | - | - | - | - |
- | - | - | - | - | - | - | - |
- | - | - | D, P, s | - | - | P, S, T | - |
- | - | VP, s | - | P | - | - | D, P, s|
- | s | - | - | - | - | - | - |
- | - | - | - | - | - | - | - |
s | s | - | - | - | - | - | - |
- | - | - | - | - | - | - | - |
D | - | - | - | - | - | - | D |
- | s | T, S, s | - | - | - | - | - |
- | - | - | - | - | - | - | - |
- |D, S, VP, s | - | - | - | - | - | - |
- | s | - | - | - | - | - | - |
- | s | s | - | - | - | - | - |
- | - | - | - | - | - | - | - |
- | - | - | - | - | - | - | - |
- | - | AVP, s | - | AVP | - | - | AVP |
-----------------------------------------------------------------------------------------------
* Officers and directors of Seneca Resources' subsidiaries as of September 30, 2003 were as follows:
Seneca Energy Canada, Inc. Board of Directors and Officers: P. C. Ackerman (Director) Williamsville, NY (1) J. A. Beck (Director) Houston, TX (5) D. H. Ibach (President and Director) Calgary, Alberta (19) J. B. McCashin (Director) Calgary, Alberta (19) D. Conrad (Secretary) Calgary, Alberta (19) S. Bridge (Controller) Calgary, Alberta (19) D. P. Butler (Assistant Secretary) Houston, TX (5) J. G. Campbell (Vice President) Calgary, Alberta (19) C. S. Sawyer (Vice President) Calgary, Alberta (19) Seneca Player Corp. Board of Directors and Officers: J. A. Beck (President and Director) Houston, TX (5) D. P. Butler (Secretary) Houston, TX (5) T. L. Atkins (Treasurer) Houston, TX (5) J. F. McKnight (Director) Houston, TX (5) 3062782 Nova Scotia Co. Board of Directors and Officers: J. A. Beck (President and Director) Houston, TX (5) T. L. Atkins (Secretary) Houston, TX (5) 3062783 Nova Scotia Co. Board of Directors and Officers: J. A. Beck (President and Director) Houston, TX (5) T. L. Atkins (Secretary) Houston, TX (5) 3062784 Nova Scotia Co. Board of Directors and Officers: J. A. Beck (President and Director) Houston, TX (5) T. L. Atkins (Secretary) Houston, TX (5)
** Officers and directors of Highland's subsidiaries as of September 30, 2003 were as follows:
Empire State Pipeline D. J. Seeley (President) Williamsville, NY (1) R. C. Kraemer (Vice President) Williamsville, NY (1) J. P. Pawlowski (Treasurer) Williamsville, NY (1) J. R. Peterson (Secretary) Williamsville, NY (1) Empire State Pipeline Company, LLC D. J. Seeley (Manager and President) Williamsville, NY (1) J. P. Pawlowski (Treasurer) Williamsville, NY (1) J. R. Peterson (Secretary) Williamsville, NY (1) St.Clair Pipeline Company, LLC D. J. Seeley (Manager and President) Williamsville, NY (1) J. P. Pawlowski (Treasurer) Williamsville, NY (1) J. R. Peterson (Secretary) Williamsville, NY (1)
*** Officers and directors of Horizon’s subsidiaries as of September 30, 2003 were as follows:
Horizon Energy Holdings, Inc. Board of Directors and Officers: P. C. Ackerman (Director and President) Williamsville, NY (1) B. H. Hale (Vice President) Williamsville, NY (1) G. T. Wehrlin (Vice President) Williamsville, NY (1) R. J. Tanski (Secretary and Treasurer) Williamsville, NY (1) Horizon Energy Development, B.V. Managing Directors: B. H. Hale Williamsville, NY (1) G. T. Wehrlin Williamsville, NY (1) Intra Beheer B.V. Amsterdam, The Netherlands (8) Horizon Energy Development, s.r.o. Managing Director: B. H. Hale Williamsville, NY (1) Statutory Agents: V. Miskovsky Prague, Czech Republic (7)See Page 16 for Notes
Teplarna Liberec, a.s. Board of Directors: J. Drda Liberec, Czech Republic (21) Z. Kozesnik Liberec, Czech Republic (10) J. Krutsky Liberac, Czech Republic (20) J. Masinda Prague, Czech Republic (7) V. Miskovsky Prague, Czech Replublic (7) L. Zapletal Most, Czech Republic (14) Lounske tepelne hospodarstvi, s.r.o. Statutory Agents: J. Bores Teplice, Czech Republic (14) F. Jicha Louny, Czech Republic (26) Teplo Branany, s.r.o. Managing Directors: R. Jiruska Bilina, Czech Republic (14) K. Krecan Branany, Czech Republic (15) United Energy, a.s. Board of Directors: L. Zapletal Most, Czech Republic (14) B. H. Hale Williamsville, NY (1) G. T. Wehrlin Williamsville, NY (1) P. C. Ackerman Williamsville, NY (1) R. J. Tanski Williamsville, NY (1) J. Sulc Most, Czech Republic (22) E. Volkman Louny, Czech Republic (23) J. Masinda Prague, Czech Republic (7) D. A. Wassum Williamsville, NY (1) ENOP Company, s.r.o. Statutory Agents: R. Kocar Most, Czech Republic (14) P. Mares Most, Czech Republic (14) Horizon Energy Bulgaria Ltd. Manager: B. H. Hale Williamsville, NY (1) Sofia Energy EAD D. A. Wassum (Director) Williamsville, NY (1) B. H. Hale (Director) Williamsville, NY (1) J. Masinda (Director) Czech Republic (7) Montenero Energia S.r.l. B. H. Hale (Director and Chairman) Williamsville, NY (1) R. J. Tanski (Director) Williamsville, NY (1) K. D. Cotter (Director) Williamsville, NY (1) A. Messina (Director) Rome, Italy (28) M. Passeggeri (Director) Rome, Italy (29) S. Rotondo (Director) Rome, Italy (30)
**** Officers and directors of Upstate's subsidiaries as of September 30, 2003 were as follows:
Toro Partner LLC B. H. Hale (Manager) Williamsville, NY (1) R. J. Tanski (Manager) Williamsville, NY (1) D. A. Wassum (President and Treasurer) Williamsville, NY (1) K. D. Cotter (Vice President and Secretary) Williamsville, NY (1) Toro Partners, LP Toro Partners, LP has no directors or officers; it is managed by its general partner. Toro Energy of Michigan, LLC B. H. Hale (Manager) Williamsville, NY (1) R. J. Tanski (Manager) Williamsville, NY (1) D. A. Wassum (President and Treasurer) Williamsville, NY (1) K. D. Cotter (Vice President and Secretary) Williamsville, NY (1) Toro Energy of Ohio-Statewide, LLC B. H. Hale (Manager) Williamsville, NY (1) R. J. Tanski (Manager) Williamsville, NY (1) D. A. Wassum (President and Treasurer) Williamsville, NY (1) K. D. Cotter (Vice President and Secretary) Williamsville, NY (1) Toro Energy of Ohio, LLC B. H. Hale (Manager) Williamsville, NY (1) R. J. Tanski (Manager) Williamsville, NY (1) D. A. Wassum (President and Treasurer) Williamsville, NY (1) K. D. Cotter (Vice President and Secretary) Williamsville, NY (1) Toro Energy of Kentucky, LLC B. H. Hale (Manager) Williamsville, NY (1) R. J. Tanski (Manager) Williamsville, NY (1) D. A. Wassum (President and Treasurer) Williamsville, NY (1) K. D. Cotter (Vice President and Secretary) Williamsville, NY (1) Toro Energy of Missouri, LLC B. H. Hale (Manager) Williamsville, NY (1) R. J. Tanski (Manager) Williamsville, NY (1) D. A. Wassum (President and Treasurer) Williamsville, NY (1) K. D. Cotter (Vice President and Secretary) Williamsville, NY (1) Toro Energy of Maryland, LLC B. H. Hale (Manager) Williamsville, NY (1) R. J. Tanski (Manager) Williamsville, NY (1) D. A. Wassum (President and Treasurer) Williamsville, NY (1) K. D. Cotter (Vice President and Secretary) Williamsville, NY (1) Toro Energy of Indiana, LLC B. H. Hale (Manager) Williamsville, NY (1) R. J. Tanski (Manager) Williamsville, NY (1) D. A. Wassum (President and Treasurer) Williamsville, NY (1) K. D. Cotter (Vice President and Secretary) Williamsville, NY (1) Toro Energy of Ohio-American, LLC B. H. Hale (Manager) Williamsville, NY (1) R. J. Tanski (Manager) Williamsville, NY (1) D. A. Wassum (President and Treasurer) Williamsville, NY (1) K. D. Cotter (Vice President and Secretary) Williamsville, NY (1)
***** Officers of Power’s subsidiaries as of September 30, 2003 included the following persons (because Power’s subsidiaries are not wholly owned directly or indirectly by the Registrant or any system company, disclosure is limited to those officers who are directly employed by the Registrant or its system companies):
Seneca Energy II, LLC B. H. Hale (Secretary and Chief Financial Officer) Williamsville, NY (1) Model City Energy, LLC B. H. Hale (Chief Financial Officer) Williamsville, NY (1) Energy Systems North East, LLC B. H. Hale (President) Williamsville, NY (1) K. D. Cotter (Vice President) Williamsville, NY (1) P. L. Malachowski (Treasurer) Williamsville, NY (1)Notes
Position Held Applicable
Name of Officer Name and Location of in Financial Exemption
or Director Financial Institution Institution Rule
--------------- --------------------- ------------- -------------
R. T. Brady Manufacturers and Traders
Trust Company,
Buffalo, New York Director 70 (a)
M&T Bank Corporation,
Buffalo, New York Director 70 (a)
G. L. Mazanec Northern Trust Bank
of Texas,
Dallas, Texas Director 70 (a)
Part III. Compensation and other related information:
The information required by this item appears under “Directors’ Compensation,” and “Executive Compensation,” on page 7 and pages 13 to 20, respectively, of the National Fuel Gas Company Proxy Statement, dated January 20, 2004, included as Exhibit A (3) to this Form U5S and is incorporated herein by reference.
The information required by this item appears under “Security Ownership of Certain Beneficial Owners and Management,” on pages 10 and 11 of the National Fuel Gas Company Proxy Statement, dated January 20, 2004, included as Exhibit A(3) of this Form U5S and is incorporated herein by reference.
The following contracts and transactions with the directors and executive officers of National Fuel Gas Company were disclosed in the Company’s Form 10-K for fiscal year 2003.
Item 6. OFFICERS AND DIRECTORS (Continued)
Item 6. OFFICERS AND DIRECTORS (Continued)
Item 6. OFFICERS AND DIRECTORS (Continued)
Item 6. OFFICERS AND DIRECTORS (Continued)
Item 6. OFFICERS AND DIRECTORS (Concluded)
The information required by this item appears under “Directors’ Compensation,” and “Executive Compensation,” on page 7 and pages 13 to 20, respectively, of the National Fuel Gas Company Proxy Statement, dated January 20, 2004, included as Exhibit A(3) to this Form U5S and incorporated herein by reference.
The information required by this item appears in Article II, Paragraph 8 of the National Fuel Gas Company By-Laws as amended through December 12, 2002. Such By-Laws are listed as Exhibit B(1)(ii) to this Form U5S.
The Company also purchases directors and officers liability insurance coverage with an annual aggregate limit of $135 million, and, in recognition of the scope of the foregoing by-law indemnification, certain other errors and omissions and general liability insurance coverages which are applicable to all employees as insureds, including directors and officers.
ITEM 7. CONTRIBUTIONS AND PUBLIC RELATIONS
Amount
Name of Recipient Accounts Charged Per Books Fiscal Year Ended
Name of Company or Beneficiary Purpose of Disbursing Company September 30, 2003
--------------- ----------------- ------- -------------------------- ------------------
Tabulation showing expenditures, disbursements, or payments during the year, in money, goods or services,
directly or indirectly to or for the account of:
(1) Any political party, candidate for public office or holder of such office, or any committee or agent
therefor:
Distribution Corporation N/A *FEDPAC Misc. Income Deductions $ 3,991
Distribution Corporation N/A *NYPAC Misc. Income Deductions $ 4,448
Distribution Corporation N/A *PAPAC Misc. Income Deductions $ 3,808
Supply Corporation N/A *FEDPAC Misc. Income Deductions $ 1,337
Supply Corporation N/A *NYPAC Misc. Income Deductions $ 1,119
Supply Corporation N/A *PAPAC Misc. Income Deductions $ 1,776
* Company labor and expenses relating to administration of political action funds.
(2) Any citizens group or public relations counsel:
Distribution Corporation 30 Beneficiaries Civic Operation Expense $ 14,098
Seneca Resources 2 Beneficiaries Civic Operation Expense $ 877
The information called for by instruction 2 to Item 7 was compiled, and memoranda from the applicable System Companies were received and are preserved by the Registrant.
ITEM 8. SERVICE, SALES AND CONSTRUCTION CONTRACTS
Part I. Intercompany sales and services
NATIONAL FUEL GAS COMPANY
-------------------------
REPORT OF OFFICERS' SALARIES
----------------------------
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2003
--------------------------------------------
Distribution Supply Seneca Data-
Parent Corp. Corp. Resources Highland Horizon Track NFR Total
------ ------------ ------ --------- -------- ------- ----- --- -----
P. C. Ackerman $78,000 $253,500 $241,800 $120,900 $15,600 $23,400 $3,900 $42,900 $780,000
A. M. Cellino 11,331 113,255 101,981 - 58 - - - 226,625
J. P. Pawlowski 14,025 158,033 79,740 18,237 10,255 - - 210 280,500
R. J. Tanski 12,500 106,131 49,373 12,486 3,093 52,906 - 136 236,625
ITEM 8. SERVICE, SALES AND CONSTRUCTION CONTRACTS (Continued)
Part I. Intercompany sales and services (Continued)
DISTRIBUTION CORPORATION
------------------------
REPORT OF INTERCOMPANY SALES AND SERVICES
-----------------------------------------
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2003
--------------------------------------------
(THOUSANDS OF DOLLARS)
----------------------
Common Expenses
---------------------------------------------------------------------------------
Corporate Materials Accounts
Receiving Company Executive Purchasing Communications Management Accounting Payable Risk
----------------- --------- ---------- -------------- ---------- ---------- -------- ----
Supply Corporation $ 297 $201 $130 $11 $ 832 $192 $ 35
Seneca Resources 340 - 35 - 196 - 47
UCI - - - - - - -
Highland 48 - 5 - 26 - 10
Data-Track - - - - - - -
NFR 4 - 1 - 2 - 9
Leidy Hub - - - - - - -
Horizon - - - - - - -
Parent Company - - - - - - -
NIM - - - - - - -
Upstate Energy - - - - - - -
Empire 47 26 15 - 82 26 3
Horizon Power - - - - - - -
Toro, LP - - - - - - -
------ ---- ---- --- ------ ---- ----
$ 736 $227 $185 $11 $1,138 $218 $104
====== ==== ==== === ====== ==== ====
Common Expenses
-----------------------------------------------------------------------------------
Data Human Government Benefit
Receiving Company Processing Resources Legal Finance Affair Services CPR
----------------- ---------- --------- ----- ------- ---------- -------- ---
Supply Corporation $ 46 $427 $ 96 $596 $31 $144 $182
Seneca Resources - 71 111 97 - 169 -
UCI - - - - - - -
Highland - 10 16 13 - 24 -
Data-Track - - - - - - -
NFR - 1 1 1 - 2 -
Leidy Hub - - - - - - -
Horizon - - - - - - -
Parent Company - - - - - - -
NIM - - - - - - -
Upstate Energy - - - - - - -
Empire 14 44 14 54 4 19 24
Horizon Power - - - - - - -
Toro, LP - - - - - - -
---- ---- ---- ---- --- ---- ----
$110 $553 $238 $761 $35 $358 $206
==== ==== ==== ==== === ====
Common Expenses
--------------------
Total Total Total Convenience or Total Service
Common Clearing Direct Accommodation Rendered By
Receiving Company Payroll Expense Charges* Charges* Payments* Statutory Subsidiaries
----------------- ------- ------- -------- -------- -------------- ----------------------
Supply Corporation $128 $3,398 $3,651 $6,308 $ 9,433 $22,790
Seneca Resources - 1,066 223 506 2,862 4,657
UCI - - - - 3 3
Highland - 152 31 31 255 469
Data-Track - - 1 8 11 20
NFR - 20 34 195 211 460
Leidy Hub - - 1 4 (1) 4
Horizon - - 71 683 215 969
Parent Company - - 73 309 807 1,189
NIM - - - - - -
Upstate Energy - - - - 4 4
Empire - 372 100 160 382 1,014
Horizon Power - - 8 87 - 95
Toro, LP - - - 7 4 11
---- ------ ------ ------ ------- -------
$128 $5,008 $4,193 $8,298 $14,186 $31,685
==== ====== ====== ====== ======= =======
* Analysis of Clearing Charges, Direct Charges & Convenience or Accommodation Payments is presented on pages 26 and 27.
ITEM 8. SERVICE, SALES AND CONSTRUCTION CONTRACTS (Continued)
Part I. Intercompany sales and services (Continued)
DISTRIBUTION CORPORATION
------------------------
REPORT OF INTERCOMPANY SALES AND SERVICES
-----------------------------------------
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2003
--------------------------------------------
(THOUSANDS OF DOLLARS)
----------------------
Clearing Charges
------------------------------------------------------------------------------------
Material Total
Officer Issue & Data Messenger Clearing
Receiving Company Clearing Transfer Telecommunications Rental Postage Processing Expense Charges
----------------- -------- -------- ------------------ ------ ------- ---------- --------- --------
Supply Corporation $279 $ 815 $207 $617 $ 6 $1,643 $ 84 $3,651
Seneca Resources 73 - - 88 - 60 2 223
UCI - - - - - - - -
Highland 13 - - 12 - 6 - 31
Data-Track 1 - - - - - - 1
NFR 18 - - 6 - 1 9 34
Leidy Hub 1 - - - - - - 1
Horizon 59 - - 12 - - - 71
Parent Company 62 - - 9 - 2 - 73
NIM - - - - - - - -
Upstate Energy - - - - - - - -
Empire 14 4 - 82 - - - 100
Horizon Power 5 2 - 1 - - - 8
Toro, LP - - - - - - - -
---- ------ ---- ---- --- ------ ---- ------
$525 $ 821 $207 $827 $ 6 $1,712 $ 95 $4,193
==== ====== ==== ==== === ====== ==== ======
Direct Charges
-----------------------------------------------------------------------------------
Telecom- Environment Contract
Receiving Company Land MMD munications Insurance Operations Administration Accounting
----------------- ---- --- ----------- ----------- ---------- -------------- ----------
Supply Corporation $294 $306 $32 $460 $2,855 $56 $ 18
Seneca Resources 56 - - 19 10 - 1
UCI - - - - - - -
Highland - - - 1 - - -
Data-Track - - - - - - -
NFR - - - 1 - - 1
Leidy Hub - - - - - - -
Horizon - - - 12 - - 28
Parent Company - - - - 8 - -
NIM - - - - - - -
Upstate Energy - - - - - - -
Empire - - - 1 41 6 -
Horizon Power - - - 18 - - 43
Toro, LP - - - - - - -
---- ---- --- ---- ------ --- ----
$350 $306 $32 $512 $2,914 $62 $ 91
==== ==== === ==== ====== === ====
Direct Charges
----------------------------------------------------------------------------------
Government Rates & Human
Receiving Company Legal Affairs Finance Executive Regulation Resources
----------------- ----- ---------- ------- --------- ---------- ---------
Supply Corporation $65 $257 $327 $1,188 $2 $ 32
Seneca Resources - - 84 335 - -
UCI - - - - - -
Highland - - - 30 - -
Data-Track - - - 8 - -
NFR - - 5 160 - 6
Leidy Hub - - - 4 - -
Horizon 3 - 238 358 - -
Parent Company 1 - 15 270 - -
NIM - - - - - -
Upstate Energy - - - - - -
Empire 1 1 18 38 1 -
Horizon Power - - 26 - - -
Toro, LP - - 7 - - -
--- ---- ---- ------ -- ----
$70 $258 $720 $2,391 $3 $ 38
=== ==== ==== ====== == ====
Direct Charges
------------------------------------------------------------------------------------
Total
Benefit Quality Direct
Receiving Company Services Engineering Assurance DPC Security Charges
----------------- -------- ----------- --------- --- -------- -------
Supply Corporation $21 $222 $39 $ 39 $95 $6,308
Seneca Resources 1 - - - - 506
UCI - - - - - -
Highland - - - - - 31
Data-Track - - - - - 8
NFR 22 - - - - 195
Leidy Hub - - - - - 4
Horizon - - - 44 - 683
Parent Company 15 - - - - 309
NIM - - - - - -
Upstate Energy - - - - - -
Empire - 5 - 48 - 160
Horizon Power - - - - - 87
Toro, LP - - - - - 7
--- ---- --- ---- --- ------
$59 $227 $39 $131 $95 $8,298
=== ==== === ==== ===
ITEM 8. SERVICE, SALES AND CONSTRUCTION CONTRACTS (Continued)
Part I. Intercompany sales and services (Continued)
DISTRIBUTION CORPORATION
------------------------
ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS
-------------------------------------------------
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2003
--------------------------------------------
(THOUSANDS OF DOLLARS)
----------------------
Receiving Company
---------------------------------------------------------------------
Parent Supply Seneca Data-
Company Corporation Resources UCI Track Highland NFR Horizon Empire
------- ----------- --------- --- ----- -------- --- ------- ------
Material $ - $ 255 $ - $ - $ - $ - $ - $ - $ 1
Rents - - - - - - - - -
Transportation - 39 - - - - - - -
Utilities - 1,813 63 - 9 - 12 - 9
Contractors &
Outside Services 331 1,320 218 - - 20 5 13 16
Equipment Purchases
& Rentals 1 386 - - - - - 4 4
Employee Benefits 81 3,127 121 - 1 25 113 43 15
Office Expense 52 487 28 - - 3 4 9 -
Dues & Subscriptions 1 256 - - - - - - -
Other Insurance - 1,120 2,424 - 1 64 24 138 303
Injuries & Damages 12 123 - 3 - 143 - - -
Other 329 479 8 - - - 53 8 34
Advertising - 2 - - - - - - -
Postage - 16 - - - - - - -
Environment - 9 - - - - - - -
---- ------- ------ --- --- ---- ---- ---- ----
$807 $ 9,433 $2,862 $ 3 $11 $255 $211 $215 $382
==== ======= ====== === === ==== ==== ==== ====
Receiving Company
-----------------------------------
Horizon Upstate
Power Leidy Energy Toro Total
------- ----- ------- ---- -----
Material $ - $ - $ - $ - $ 256
Rents - - - - 1
Transportation - - - - 39
Utilities - - - - 1,906
Contractors &
Outside Services 5 - 1 - 1,929
Equipment Purchases
& Rentals - - - - 395
Employee Benefits - - - - 3,526
Office Expense - - 3 4 591
Dues & Subscriptions - - - - 257
Other Insurance 4 - - - 4,074
Injuries & Damages - - - - 285
Other (9) (1) - - 901
Advertising - - - - 2
Postage - - - - 16
Environmental - - - - 9
---- ----- ---- ---- -------
$ - $ (1) $ 4 $ 4 $14,186
==== ===== ==== ==== =======
ITEM 8. SERVICE, SALES AND CONSTRUCTION CONTRACTS (Continued)
Part I. Intercompany sales and services (Continued)
SUPPLY CORPORATION
------------------
REPORT OF INTERCOMPANY SALES AND SERVICES
-----------------------------------------
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2003
--------------------------------------------
(THOUSANDS OF DOLLARS)
----------------------
Clearing Accounts
-----------------------------------------------------------------------------
Material Total
Executive DPC Production Issue & Rental Gas Gas Clearing
Receiving Company Clearing Clearing Clearing Transfer Clear Control Measurement Charges
----------------- --------- -------- ---------- -------- ------ ------- ----------- --------
Distribution Corp. $ 62 $39 $ - $ 99 $6,901 $ - $ - $7,101
Seneca Resources - - 320 5 - - - 325
Horizon 10 - - - 61 - - 71
Highland - - - - - - - -
Data Track - - - - - - - -
NFR - - - - - - - -
Leidy Hub - - - - - - - -
Parent Company 18 - - 7 21 - - 46
Upstate Energy - - - - - - - -
NIM - - - - - - - -
Empire 10 - - - - 125 6 141
Horizon Power 1 - - 2 - - - 3
Toro, LP - - - - - - - -
---- --- ---- ---- ------ ---- --- ------
$101 $39 $320 $113 $6,983 $125 $ 6 $7,687
==== === ==== ==== ====== ==== === ======
Direct Charges
-------------------------------------------------------------------
Gas Benefit Human Gas
Receiving Company Storage Services Engineering Resources Land Control Executive
----------------- ------- -------- ----------- --------- ---- ------- ---------
Distribution Corp. $ - $ 772 $ 36 $ 70 $206 $1,169 $144
Seneca Resources 12 28 - - 83 - -
Horizon - 22 - - - - 265
Highland - 5 - 16 - - -
Data Track - 11 - 16 - - -
NFR - 11 - 5 - - -
Leidy Hub - - - - - - -
Parent Company - 187 - - 1 - 92
Upstate Energy - - - - - - -
NIM - - - - - - 7
Empire - - 45 - - - 28
Horizon Power - - - - - - 42
Toro, LP - - - - - - -
---- ------ ---- ---- ---- ------ ----
$ 12 $1,036 $ 81 $ 91 $290 $1,169 $578
==== ====== ==== ==== ==== ====== ====
ITEM 8. SERVICE, SALES AND CONSTRUCTION CONTRACTS (Continued)
Part I. Intercompany sales and services (Continued)
SUPPLY CORPORATION
------------------
REPORT OF INTERCOMPANY SALES AND SERVICES
-----------------------------------------
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2003
--------------------------------------------
(THOUSANDS OF DOLLARS)
----------------------
Direct Charges Continued
----------------------------------------------------
Operations,
Construction
& Customer Interstate
Receiving Company Service Legal MMD Marketing Finance
----------------- ------------ ----- --- ---------- -------
Distribution Corp. $2,350 $ 90 $ 78 $ - $ -
Seneca Resources 80 - - - -
Horizon 7 50 - - 3
Highland - - - - -
Data Track - - - - -
NFR - - - - -
Leidy Hub - - - - -
Parent Company - - - - -
Upstate Energy - 2 - - -
NIM - - - - -
Empire 134 22 - 62 -
Horizon Power 1 11 - - 29
Toro, LP - - - - -
------ ---- --- --- ---
$2,572 $175 $78 $62 $32
====== ==== === === ===
Total Services
Total Total Convenience or Rendered By
Direct Clearing Accommodation Statutory
Receiving Company Charges Charges Payments* Subsidiaries
----------------- ------- -------- -------------- --------------
Distribution Corp. $4,915 $7,101 $1,182 $13,198
Seneca Resources 203 325 71 599
Horizon 347 71 15 433
Highland 21 - - 21
Data Track 11 - - 11
NFR 16 - - 16
Leidy Hub - - - -
Parent Company 280 46 255 581
Upstate Energy 2 - - 2
NIM 7 - - 7
Empire 291 141 133 565
Horizon Power 83 3 5 91
Toro, LP - - 1 1
------ ------ ------ -------
$6,176 $7,687 $1,662 $15,525
====== ====== ====== =======
* Analysis of Convenience or Accommodation Payments is presented on page 30.
ITEM 8. SERVICE, SALES AND CONSTRUCTION CONTRACTS (Continued)
Part I. Intercompany sales and services (Continued)
SUPPLY CORPORATION
------------------
ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS
-------------------------------------------------
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2003
--------------------------------------------
(THOUSANDS OF DOLLARS)
----------------------
Receiving Company
-----------------------------------------------------------
Parent Distribution Seneca Horizon
Company Corporation Resources Energy Highland Empire
------- ------------ --------- ------- -------- ------
Material $ 33 $ 82 $ - $ - $ - $ -
Rents - 1 - - - -
Transportation - 6 1 - - -
Utilities 1 152 - - - 1
Contractors &
Outside Services 86 726 9 2 - 37
Equipment Purchases
& Rentals - 7 - - - -
Employee Benefits - 62 - 6 - -
Office Expense 4 41 2 7 - 11
Other 131 104 59 - - 84
Other Insurance - - - - - -
Postage - 1 - - - -
Advertising - - - - - -
Environmental - - - - - -
Injuries & Damages - - - - - -
---- ------ --- --- ---- ----
$255 $1,182 $71 $15 $ - $133
==== ====== === === ==== ====
Receiving Company
--------------------------------------------------
Horizon Data- Upstate
Power Toro Track NFR Leidy Hub Energy NIM Total
------- ---- ----- --- --------- ------- --- -----
Material $1 $- $- $- $- $- $- $ 116
Rents - - - - - - - 1
Transportation - - - - - - - 7
Utilities - - - - - - - 154
Contractors &
Outside Services 4 1 - - - - - 865
Equipment Purchases
& Rentals - - - - - - - 7
Employee Benefits - - - - - - - 68
Office Expense - - - - - - - 65
Other - - - - - - - 378
Other Insurance - - - - - - - -
Postage - - - - - - - 1
Advertising - - - - - - - -
Environmental - - - - - - - -
Injuries & Damages - - - - - - - -
-- -- -- -- -- -- -- ------
$5 $1 $- $- $- $- $- $1,662
== == == == == == == ======
ITEM 8. SERVICE, SALES AND CONSTRUCTION CONTRACTS (Continued)
Part I. Intercompany sales and services (Continued)
SENECA RESOURCES
----------------
REPORT OF INTERCOMPANY SALES AND SERVICES
-----------------------------------------
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2003
--------------------------------------------
(THOUSANDS OF DOLLARS)
----------------------
Total
Services
Convenience or Rendered By
Timber Accommodation Statutory
Receiving Company Sales Operations Payments Subsidiaries
----------------- ------ ---------- -------------- ------------
Supply Corporation $ - $ 670 $ 38 $ 708
Highland 11,125 - - 11,125
NFR - - - -
Upstate Energy - - - -
Parent Company - - - -
NFE - - 248 248
Horizon - - 1 1
------- ------ ---- -------
$11,125 $ 670 $287 $12,082
======= ====== ==== =======
ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS
-------------------------------------------------
Receiving Company
---------------------------------------------------------------------
Supply
Highland Horizon Corporation NFR NFE Total
-------- ------- ----------- --- --- -----
Other $- $1 $38 $ - $248 $287
-- -- --- --- ---- ----
$- $1 $38 $ - $248 $287
== == === === ==== ====
UPSTATE ENERGY
--------------
REPORT OF INTERCOMPANY SALES AND SERVICES
-----------------------------------------
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2003
--------------------------------------------
(THOUSANDS OF DOLLARS)
----------------------
Total
Services
Convenience or Rendered By
Accommodation Statutory
Receiving Company Payments Subsidiaries
----------------- -------------- ------------
Toro Partners LLC $ 96 $ 96
---- ----
$ 96 $ 96
==== ====
ITEM 8. SERVICE, SALES AND CONSTRUCTION CONTRACTS (Continued)
Part I. Intercompany sales and services (Continued)
EMPIRE STATE PIPELINE
---------------------
REPORT OF INTERCOMPANY SALES AND SERVICES
-----------------------------------------
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2003
--------------------------------------------
(THOUSANDS OF DOLLARS)
----------------------
Total
Services
Rendered By
Convenience Statutory
Receiving Company Payments Subsidiaries
----------------- ----------- ------------
Distribution Corporation $236 $236
Supply Corporation 2 2
Highland Resources 299 299
Horizon Energy 37 37
---- ----
$574 $574
==== ====
ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS
-------------------------------------------------
Receiving Company
------------------------------------------
Horizon
Dist Supply Highland Energy Total
---- ------ -------- ------- -----
Cont O/S $ - $ - $ 12 $ - $ 12
Office Expense 3 2 - - 5
Other - - 287 - 287
Other Insurance 233 - - 37 270
---- --- ---- ---- ----
$236 $ 2 $299 $ 37 $574
==== === ==== ==== ====
TORO PARTNERS, LP
-----------------
REPORT OF INTERCOMPANY SALES AND SERVICES
-----------------------------------------
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2003
--------------------------------------------
(THOUSANDS OF DOLLARS)
----------------------
Total
Services
Rendered By
Convenience Statutory
Receiving Company Payments Subsidiaries
----------------- ----------- ------------
Horizon Energy $ (3) $ (3)
Distribution Corporation 1 1
---- ----
$ 2 $ 2
==== ====
ITEM 8. SERVICE, SALES AND CONSTRUCTION CONTRACTS (Continued)
Part I. Intercompany sales and services (Concluded)
HIGHLAND
--------
REPORT OF INTERCOMPANY SALES AND SERVICES
-----------------------------------------
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2003
--------------------------------------------
(THOUSANDS OF DOLLARS)
----------------------
Total Services
Rendered By
Convenience Statutory
Receiving Company Operation Payments Subsidiaries
----------------- --------- ----------- --------------
Seneca Resources $183 $215 $398
Supply Corporation - - -
---- ---- ----
$183 $215 $398
==== ==== ====
DATA-TRACK
----------
REPORT OF INTERCOMPANY SALES AND SERVICES
-----------------------------------------
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2003
--------------------------------------------
(THOUSANDS OF DOLLARS)
----------------------
Total Services
Rendered by
Collection Statutory
Receiving Company Services Subsidiaries
----------------- ---------- ---------------
Distribution Corporation $413 $413
NFR 3 3
---- ----
$416 $416
==== ====
TORO PARTNER, LLC
-----------------
REPORT OF INTERCOMPANY SALES AND SERVICES
-----------------------------------------
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2003
--------------------------------------------
(THOUSANDS OF DOLLARS)
----------------------
Total Services
Rendered by
Convenience Statutory
Receiving Company Payments Subsidiaries
----------------- ----------- ---------------
Distribution Corporation $ 1 $ 1
---- ----
$ 1 $ 1
==== ====
(3) Services rendered by Registrant
No services were rendered for a charge by the Registrant to any of its subsidiaries during the fiscal year ended
September 30, 2003
ITEM 8. SERVICE, SALES AND CONSTRUCTION CONTRACTS (Concluded)
Part II. |
Contracts to
purchase services or goods between any System company and any affiliate (other than a System company) and other than as reported in Item 6) at
September 30,
2003: |
Part III. |
Employment of any person by any System company for the performance on a continuing basis of management services: |
Description of Contract and Annual
Name Scope of Services Consideration
---------------- --------------------------- -------------
Robert Davis Performs management and $ 204,415
consulting services for
Highland.
Joseph Maljovec Performs management and $ 72,497
consulting services for
Highland.
Enterprise Risk Performs financial advisory Retainer of
Management, Inc. and consulting services for $ 60,000
the Registrant regarding
placement of insurance cover-
ages and participates in
management or facilitation
of claims.
Evans Operating Performs production management $2,899,148
Company, LLP services for Seneca Resources
with respect to Gulf of Mexico
properties.
Robert C. Williams Performs management and real $ 63,163
estate consulting services for
Seneca Resources.
Pat Carroll Perform petroleum engineering $ 58,048
services for Seneca Resources
with respect to California
properties.
ITEM 9. WHOLESALE GENERATORS AND FOREIGN UTILITY COMPANIES
Part I. A. Interests in Foreign Utility Companies
1. United Energy, a.s. and Teplarna Liberec, a.s.
(a) United Energy, a.s. (UE)
Komorany u Mostu
434 03 Most
Czech Republic
Teplarna Liberec, a.s. (TL)
Dr. M. Horakove 641/34a
460 01 Liberec
Czech Republic
UE generates and supplies steam heat to customers in the Czech Republic. UE also generates
electric energy for sale. UE has been designated as a foreign utility company because it owns and
operates a coal-fired
ITEM 9. WHOLESALE GENERATORS AND FOREIGN UTILITY COMPANIES (Continued)
electric generation plant with generating capacity of 236 MW and sells the electricity it produces
at wholesale. UE has also been designated as a foreign utility company
because it owns a 70% interest (common equity) in TL. TL, in turn, has been designated as a
foreign utility company because it owns and operates a 12 MW steam powered electric generation
turbine and sells the produced electricity at wholesale.
Horizon Energy Development, Inc. (Horizon) owns 100% of the capital stock of Horizon Energy
Holdings, Inc. (HEHI), which owns 100% of the capital stock of Horizon Energy Development B.V.
(HEDBV). HEDBV owns 85.16% of the capital stock of UE, which owns 70% of the capital stock of TL.
(b) Horizon owns 100% of the capital stock of HEHI, which investment was valued at $158,723,000 as of
September 30, 2003. HEHI owns 100% of the capital stock of HEDBV, which investment was valued at
$158,723,000 as of September 30, 2003. HEDBV owns 85.16% of the capital stock of UE, and such
investment was valued at $156,979,000 as of September 30, 2003. UE owns 70% of the capital stock
of TL, and such investment was valued at $11,541,000 as of September 30, 2003. The financial
statements of Horizon and its subsidiaries are found on pages 79 through 98 of this Form U5S.
There are no debts or other financial obligations of HEHI, HEDBV, UE or TL for which there is
recourse, directly or indirectly, to the registered holding company or another system company.
There are no direct or indirect guaranties of any of the securities of UE or TL by the registered
holding company. There have been no transfers of any assets from any system company to UE or TL.
(c) The ratio of debt to comprehensive shareholders' equity of UE was 10.98% as of September 30,
2003. TL had no debt outstanding at September 30, 2003. UE and TL incurred losses for the twelve
months ended September 30, 2003 (net of minority interest) of $1,038,000 and $32,000,
respectively. The financial statements of UE and TL are found on pages 79 through 98 of this Form
U5S.
(d) There are management support agreements between Horizon Energy Development, s.r.o. (HED) and UE
and TL. Under these agreements, HED agrees to provide management services (i.e., strategic,
legal, marketing, public relations and human resource services) to both UE and TL. The agreement
with UE calls for UE to pay HED CZK 1,975,000 on a monthly basis. The agreement with TL calls for
a monthly payment of CZK 500,000 to HED.
There is a service agreement between UE and TL calling for TL to pay UE CZK 1,630,000 on a monthly
basis. The services UE provides include services similar to those described above, plus
engineering, technical, accounting and bank transactional services.
ITEM 9. WHOLESALE GENERATORS AND FOREIGN UTILITY COMPANIES (Concluded)
B. Interests in Exempt Wholesale Generators
1. Horizon Power, Inc.
(a) Horizon Power, Inc. (Power)
6363 Main Street
Williamsville, New York 14221
Power has been designated as an exempt wholesale generator by the Federal Energy Regulatory
Commission and owns a 50% interest in each of Seneca Energy II, LLC (Seneca Energy), Model City
Energy, LLC (Model City) and Energy Systems North East, LLC (ESNE). Seneca Energy has a
generating capacity of approximately 11.2 MW at a site near Seneca Falls, New York, where it
generates electricity using methane gas obtained from a landfill. After the close of fiscal 2003,
Seneca Energy completed development of facilities with a generating capacity of approximately 3.2
MW at a landfill site in Ontario County, New York. Model City has a generating capacity of
approximately 5.6 MW and generates electricity using methane gas obtained from a landfill near
Lewiston, New York. The landfills are owned by outside parties. Seneca Energy and Model City
sell electricity at wholesale to the New York Independent System Operator. ESNE owns an 80 MW
natural gas-fired cogeneration power plant located near North East, Pennsylvania. ESNE sells
electricity at wholesale to the New York Independent System Operator and sells thermal energy to a
grape processing plant. The Registrant owns 100% of the capital stock of Power. Part I(b), Part
I(c) and Part I(d) for Power are filed pursuant to Rule 104(b).
2. Energy Systems North East, LLC
(a) Energy Systems North East, LLC
10195 Ackerman Lane
North East, Pennsylvania 16428
ESNE has been designated as an exempt wholesale generator by the Federal Energy Regulatory
Commission. ESNE owns an 80 MW natural gas-fired cogeneration power plant located near North
East, Pennsylvania. ESNE sells electricity at wholesale to the New York Independent System
Operator and sells thermal energy to a grape processing plant. The Registrant owns 100% of the
capital stock of Power, which owns 50% of the limited liability company interests of ESNE. Part
I(b), Part I(c) and Part I(d) for ESNE are filed pursuant to Rule 104(b).
Part II. |
Relationship of Exempt Wholesale Generators and Foreign Utility Companies to System Companies |
Part III. |
Aggregate Investment in Exempt Wholesale Generators and Foreign Utility Companies |
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS
NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES
------------------------------------------
INDEX TO FINANCIAL STATEMENTS
-----------------------------
SEPTEMBER 30, 2003
------------------
Page
----
National Fuel Gas Company and Subsidiaries:
Report of Independent Accountants 39
Consolidating and Consolidated Balance Sheet at September 30, 2003 40-43
Consolidating and Consolidated Statement of Income for the Fiscal
Year Ended September 30, 2003 44-45
Consolidating and Consolidated Statement of Earnings Reinvested in
the Business for the Fiscal Year Ended September 30, 2003 46-47
Consolidating and Consolidated Statement of Comprehensive Income
for the Fiscal Year Ended September 30, 2003 48-49
Consolidating and Consolidated Statement of Cash Flows for the
Fiscal Year Ended September 30, 2003 50-53
Seneca Resources Corporation:
Consolidating Balance Sheet at September 30, 2003 54
Consolidating Statement of Income for the Fiscal Year Ended
September 30, 2003 55
Consolidating Statement of Earnings Reinvested in the Business
for the Fiscal Year Ended September 30, 2003 56
Consolidating Statement of Comprehensive Income for the Fiscal Year
Ended September 30, 2003 57
Consolidating Statement of Cash Flows for the Fiscal Year
Ended September 30, 2003 58
Highland Forest Resources, Inc.
Consolidating Balance Sheet at September 30, 2003 59
Consolidating Statement of Income for the Fiscal Year Ended
September 30, 2003 60
Consolidating Statement of Earnings Reinvested in the Business
for the Fiscal Year Ended September 30, 2003 61
Consolidating Statement of Comprehensive Income for the Fiscal Year
Ended September 30, 2003 62
Consolidating Statement of Cash Flows for the Fiscal Year
Ended September 30, 2003 63
Upstate Energy, Inc.
Consolidating Balance Sheet at September 30, 2003 64
Consolidating Statement of Income for the Fiscal Year Ended
September 30, 2003 65
Consolidating Statement of Earnings Reinvested in the Business
for the Fiscal Year Ended September 30, 2003 66
Consolidating Statement of Comprehensive Income for the Fiscal Year
Ended September 30, 2003 67
Consolidating Statement of Cash Flows for the Fiscal Year
Ended September 30, 2003 68
Toro Partners, LP:
Consolidating Balance Sheet at September 30, 2003 69-70
Consolidating Statement of Income for the Fiscal Year Ended
September 30, 2003 71-72
Consolidating Statement of Earnings Reinvested in the Business
for the Fiscal Year Ended September 30, 2003 73-74
Consolidating Statement of Comprehensive Income for the Fiscal Year
Ended September 30, 2003 75-76
Consolidating Statement of Cash Flows for the Fiscal Year
Ended September 30, 2003 77-78
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (Concluded)
NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES
------------------------------------------
INDEX TO FINANCIAL STATEMENTS
-----------------------------
SEPTEMBER 30, 2003
------------------
Page
----
Horizon Energy Development, Inc. and Subsidiaries:
Consolidating Balance Sheet at September 30, 2003 79
Consolidating Statement of Income for the Fiscal Year Ended
September 30, 2003 80
Consolidating Statement of Earnings Reinvested in the Business
for the Fiscal Year Ended September 30, 2003 81
Consolidating Statement of Comprehensive Income for the Fiscal Year
Ended September 30, 2003 82
Consolidating Statement of Cash Flows for the Fiscal Year
Ended September 30, 2003 83
Horizon Energy Holdings, Inc.:
Consolidating Balance Sheet at September 30, 2003 84
Consolidating Statement of Income for the Fiscal Year Ended
September 30, 2003 85
Consolidating Statement of Earnings Reinvested in the Business
for the Fiscal Year Ended September 30, 2003 86
Consolidating Statement of Comprehensive Income for the Fiscal Year
Ended September 30, 2003 87
Consolidating Statement of Cash Flows for the Fiscal Year
Ended September 30, 2003 88
Horizon Energy Development B.V.:
Consolidating Balance Sheet at September 30, 2003 89
Consolidating Statement of Income for the Fiscal Year Ended
September 30, 2003 90
Consolidating Statement of Earnings Reinvested in the Business
for the Fiscal Year Ended September 30, 2003 91
Consolidating Statement of Comprehensive Income for the Fiscal Year
Ended September 30, 2003 92
Consolidating Statement of Cash Flows for the Fiscal Year
Ended September 30, 2003 93
United Energy, a.s.:
Consolidating Balance Sheet at September 30, 2003 94
Consolidating Statement of Income for the Fiscal Year Ended
September 30, 2003 95
Consolidating Statement of Earnings Reinvested in the Business
for the Fiscal Year Ended September 30, 2003 96
Consolidating Statement of Comprehensive Income for the Fiscal Year
Ended September 30, 2003 97
Consolidating Statement of Cash Flows for the Fiscal Year
Ended September 30, 2003 98
Notes to Consolidated Financial Statements *
* The Notes to Consolidated Financial Statements included in Item 8 of National Fuel Gas Company’s Form 10-K for the fiscal year ended September 30, 2003, are incorporated herein by reference.
REPORT OF INDEPENDENT AUDITORS
To the Board of Directors
and Shareholders of
National Fuel Gas Company
In our opinion, the consolidated financial statements listed in the index appearing under Item 10 on Pages 37 and 38 present fairly, in all material respects, the financial position of National Fuel Gas Company and its subsidiaries at September 30, 2003, and the results of their operations and their cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the Company’s management; our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit of these statements in accordance with auditing standards generally accepted in the United States of America which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
Our audit was made for the purpose of forming an opinion on the consolidated financial statements taken as a whole. The consolidating information on Pages 40 through 98 is presented for purposes of additional analysis rather than to present financial position, results of operations and cash flows of the individual companies. Accordingly, we do not express an opinion on the financial position, results of operations and cash flows of the individual companies. However, the consolidating information on Pages 40 through 98 has been subjected to the auditing procedures applied in the audit of the consolidated financial statements and, in our opinion, is fairly stated in all material respects in relation to the consolidated financial statements taken as a whole.
PricewaterhouseCoopers LLP
Buffalo, New York
October 23, 2003
NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES
CONSOLIDATING BALANCE SHEET
AT SEPTEMBER 30, 2003
(THOUSANDS OF DOLLARS)
Horizon
National National Seneca Highland Data-Track National Energy Upstate Seneca Niagara
National Fuel Gas Fuel Gas Resources Leidy Forest Account Fuel Development, Energy, Indep. Indpendence Horizon Total Before Eliminations Consolidated
Fuel Gas Distribution Supply Corporation Hub, Resources, Inc. Services, Resources, Inc. Inc. Pipeline Marketing, Power, Eliminations & Adjustments Company and
Company Corp. Corp. (Consolidated) Inc. (Consolidated) Inc. Inc. (Consolidated)(Consolidated) Company Inc. Inc. & Adjustments Dr (Cr) Subsidiaries
------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
ASSETS
PROPERTY, PLANT
& EQUIPMENT $ 2,015 $ 1,397,648 $ 830,157 $ 1,718,532 $ - $ 312,630 $ 86 $ 1,158 $ 372,784 $ 15,321 $ - $ - $ 7,012 $ 4,657,343 $ - $ 4,657,343
Less: Accumulated
Depreciation,
Depletion and
Amortization 132 361,218 338,264 780,227 - 23,467 78 988 153,585 190 - - 107 1,658,256 - 1,658,256
------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
1,883 1,036,430 491,893 938,305 - 289,163 8 170 219,199 15,131 - - 6,905 2,999,087 - 2,999,087
------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
CURRENT ASSETS:
Cash and Temporary
Cash Investments 603 313 1,052 10,207 117 5,389 198 1,880 18,339 3,007 47 1 57 41,210 10,211 51,421
Notes Receivable
-Intercompany 448,000 - 13,100 - 800 - 500 28,100 600 - - - - 491,100 (491,100) -
Allowance for
Uncollectible
Accounts - (12,666) (657) (851) - - - (1,700) (2,068) - - - - (17,942) - (17,942)
Accounts Receivable
-Intercompany 22,412 7,352 16,762 3,881 1 538 59 155 22 179 - - 12 51,373 (51,373) -
Accounts Receivable 389 91,103 13,345 27,678 - 5,535 2 8,085 7,233 1,040 - - 64 154,474 - 154,474
Unbilled Utility
Revenue - 20,154 - - - - - - 7,289 - - - - 27,443 - 27,443
Dividends Receivable
-Intercompany 18,500 - - 454 - - - - - - - - - 18,954 (18,954) -
Materials and
Supplies - at
average cost - 6,221 8,327 1,047 - 14,346 - 172 3,759 - - - - 33,872 (1,561) 32,311
Gas Stored
Underground - 75,159 - - - - - 14,481 - - - - - 89,640 - 89,640
Unrecovered
Purchased
Gas Costs - 28,692 - - - - - - - - - - - 28,692 - 28,692
Fair Value of Derivative
Financial Instruments - - - 194 - - - 349 - 1,155 - - - 1,698 - 1,698
Prepayments 316 27,292 5,591 5,689 - 4,125 3 113 87 - - - 10 43,226 (1) 43,225
------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
490,220 243,620 57,520 48,299 918 29,933 762 51,635 35,261 5,381 47 1 143 963,740 (552,778) 410,962
------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
OTHER ASSETS:
Recoverable Future
Taxes - 75,706 4,945 - - 4,167 - - - - - - - 84,818 - 84,818
Unamortized Debt
Expense 10,755 6,556 6,447 - - 290 - - - - - - - 24,048 (1,929) 22,119
Other Regulatory
Assets 2,996 41,235 3,091 - - 2,294 - - - - - - - 49,616 - 49,616
Deferred Charges 1,947 2,513 2,007 464 - (160) - 2,327 12 - 8 - - 9,118 (1,590) 7,528
Other Investments 20,169 - - - - - - - - - - - - 20,169 43,856 64,025
Investment in Unconsolidated
Subsidiaries - - - - - - - - - - - - 16,425 16,425 - 16,425
Goodwill - - - - - 5,476 - - - - - - - 5,476 - 5,476
Investment in
Associated
Companies 1,157,891 - 61 19,158 - - - - - - - - - 1,177,110 (1,177,110) -
Notes Receivable -
Intercompany 1,096,400 - - - - - - - - - - - - 1,096,400 (1,096,400) -
Intangible Assets 10,274 - - - - 7,867 - - - 31,523 - - - 49,664 - 49,664
Other - 7,797 544 61 - 778 - - 466 - - - - 9,646 8,549 18,195
------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
2,300,432 133,807 17,095 19,683 - 20,712 - 2,327 478 31,523 8 - 16,425 2,542,490 (2,224,624) 317,866
------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
2,792,535 1,413,857 566,508 1,006,287 918 339,808 770 54,132 254,938 52,035 55 1 23,473 6,505,317 (2,777,402) 3,727,915
============ =========== =========== ============ =========== =========== ============ =========== =========== =========== =========== =========== =========== =========== =========== ===========
See Notes to Consolidated Financial Statements included in Item 8 of National
Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2003,
incorporated herein by reference.
NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES
CONSOLIDATING BALANCE SHEET
AT SEPTEMBER 30, 2003
(THOUSANDS OF DOLLARS)
Horizon
National National Seneca Highland Data-Track National Energy Upstate Seneca Niagara
National Fuel Gas Fuel Gas Resources Leidy Forest Account Fuel Development, Energy, Indep. Indpendence Horizon Total Before Eliminations Consolidated
Fuel Gas Distribution Supply Corporation Hub, Resources, Inc. Services, Resources, Inc. Inc. Pipeline Marketing, Power, Eliminations & Adjustments Company and
Company Corp. Corp. (Consolidated) Inc. (Consolidated) Inc. Inc. (Consolidated)(Consolidated) Company Inc. Inc. & Adjustments Dr (Cr) Subsidiaries
------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
CAPITALIZATION
AND LIABILITIES
CAPITALIZATION:
Common Stock $1 Par
Value; Authorized -
200,000,000 Shares;
Issued and
Outstanding -
81,438,290 Shares $ 81,438 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 81,438 $ - $ 81,438
Capital Stock of
Subsidiaries - 59,170 25,345 500 4 4 1 10 5 1 1 1 1 85,043 (85,043) -
Paid in Capital 478,799 121,668 35,894 104,035 1,365 22,162 499 33,490 38,246 6,800 - - 5,020 847,978 (369,179) 478,799
Earnings Reinvested
in the Business 642,690 367,474 259,724 (28,273) (628) 111,931 256 11,111 (23,210) (5,791) (9,778) - (129) 1,325,377 (682,687) 642,690
------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Total Common Shareholder
Equity Before Items of Other
Comprehensive Income 1,202,927 548,312 320,963 76,262 741 134,097 756 44,611 15,041 1,010 (9,777) 1 4,892 2,339,836 (1,136,909) 1,202,927
Accumulated Other
Comprehensive
Income (Loss) (65,537) - 124 (225) - 225 - (104) 21,822 1,335 - - - (42,360) (23,177) (65,537)
------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Total Comprehensive
Shareholders' Equity 1,137,390 548,312 321,087 76,037 741 134,322 756 44,507 36,863 2,345 (9,777) 1 4,892 2,297,476 (1,160,086) 1,137,390
Long-Term Debt,
Net of Current
Portion 1,096,400 102 - - - 41,433 - - 9,844 - - - - 1,147,779 - 1,147,779
Notes Payable -
Intercompany - 218,310 39,770 688,550 - 60,000 - - 89,770 - - - - 1,096,400 (1,096,400) -
------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Total Capitalization 2,233,790 766,724 360,857 764,587 741 235,755 756 44,507 136,477 2,345 (9,777) 1 4,892 4,541,655 (2,256,486) 2,285,169
------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Minority Interest in
Foreign Subsidiaries - - - - - - - - 33,281 - - - - 33,281 - 33,281
------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
CURRENT AND ACCRUED
LIABILITIES:
Notes Payable to
Banks and
Commercial Paper 118,200 - - - - - - - - - - - - 118,200 - 118,200
Notes Payable -
Intercompany 60,400 193,000 75,000 32,700 - 18,800 - - 29,700 48,300 14,400 - 18,800 491,100 (491,100) -
Current Portion of
Long-Term Debt 225,000 - - - - 9,334 - - 7,397 - - - - 241,731 - 241,731
Accounts Payable 160 52,648 13,254 32,777 - 4,189 14 6,115 20,927 233 - - 384 130,701 (4,922) 125,779
Accounts Payable to Customers - 692 - - - - - - - - - - - 692 - 692
Accounts Payable -
Intercompany 1,244 12,787 2,068 16,636 38 2,655 57 (933) 2,729 152 17 - 104 37,554 (37,554) -
Dividends Payable -
Intercompany - 9,100 6,500 2,454 - 700 - 200 - - - - - 18,954 (18,954) -
Fair Value of Derivative
Financial Instruments - - - 13,675 - 4,253 - - - - - - - 17,928 - 17,928
Other Accruals and
Current Liabilities 45,520 15,768 6,892 (19,575) 8 2,849 (7) 4,810 973 (8) (4,351) - (1,076) 51,803 1,048 52,851
------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
450,524 283,995 103,714 78,667 46 42,780 64 10,192 61,726 48,677 10,066 - 18,212 1,108,663 (551,482) 557,181
------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
DEFERRED CREDITS:
Accumulated Deferred
Income Taxes (49,750) 185,042 75,999 132,866 131 60,609 (62) (2,074) 20,512 161 (234) - 304 423,504 (222) 423,282
Taxes Refundable to
Customers - 16,195 (2,676) - - - - - - - - - - 13,519 - 13,519
Unamortized
Investment Tax
Credit - 7,958 241 - - - - - - - - - - 8,199 - 8,199
Cost of Removal Regulatory Liab - 64,471 20,350 - - - - - - - - - - 84,821 - 84,821
Other Regulatory Liabs - 69,621 246 - - - - - - - - - - 69,867 - 69,867
Pension Liability 152,285 1,778 1,200 (395) - 62 - (59) - - - - - 154,871 - 154,871
Asset Retirement Obligation - - - 27,493 - - - - - - - - - 27,493 - 27,493
Other Deferred
Credits 5,686 18,073 6,577 3,069 - 602 12 1,566 2,942 852 - - 65 39,444 30,788 70,232
------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
108,221 363,138 101,937 163,033 131 61,273 (50) (567) 23,454 1,013 (234) - 369 821,718 30,566 852,284
------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
$ 2,792,535 $1,413,857 $ 566,508 $ 1,006,287 $ 918 $ 339,808 $ 770 $ 54,132 $ 254,938 $ 52,035 $ 55 $ 1 $ 23,473 $6,505,317 $(2,777,402) $ 3,727,915
------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
See Notes to Consolidated Financial Statements included in Item 8 of National Fuel Gas Company's Form 10-K for
the fiscal year ended September 30, 2003, incorporated herein by reference.
NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES
CONSOLIDATING STATEMENT OF INCOME
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2003
(THOUSANDS OF DOLLARS)
Horizon
National National Seneca Highland Data-Track National Energy Upstate Seneca Niagara
National Fuel Gas Fuel Gas Resources Leidy Forest Account Fuel Development, Energy, Indep. Indpendence Horizon Total Before Eliminations Consolidated
Fuel Gas Distribution Supply Corporation Hub, Resources, Inc. Services, Resources, Inc. Inc. Pipeline Marketing, Power, Eliminations & Adjustments Company and
Company Corp. Corp. (Consolidated) Inc. (Consolidated) Inc. Inc. (Consolidated)(Consolidated) Company Inc. Inc. & Adjustments Dr (Cr) Subsidiaries
------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
OPERATING REVENUE: $ - $ 1,162,983 $ 180,537 $ 316,730 $ - $ 76,818 $ 415 $ 304,659 $ 114,070 $ 2,434 $ - $ - $ 517 $ 2,159,163 $ (123,692) $ 2,035,471
------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
OPERATING EXPENSE:
Purchased Gas - 773,126 913 1,216 - - - 293,449 - 630 - - - 1,069,334 (105,767) 963,567
Fuel Used in Heat and
Electric Generation - - - - - - - (4) 61,033 - - - - 61,029 - 61,029
Operation and Maintenance 4,085 179,052 58,307 90,000 6 42,682 389 2,803 29,555 612 39 - 1,200 408,730 (22,460) 386,270
Property, Franchise &
Other Taxes 578 52,274 11,358 12,312 - 3,094 - 16 2,846 - - - 26 82,504 - 82,504
Impairment of Oil & Gas
Producing Properties - - - 42,774 - - - - - - - - - 42,774 - 42,774
Depreciation, Depletion
and Amortization - 38,186 28,845 99,574 - 14,313 26 117 13,910 190 - - 21 195,182 44 195,226
------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
4,663 1,042,638 99,423 245,876 6 60,089 415 296,381 107,344 1,432 39 - 1,247 1,859,553 (128,183) 1,731,370
------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Gain on Sale of Timber
Properties - - - - - 168,787 - - - - - - - 168,787 - 168,787
Loss on Sale of Oil & Gas
Producing Properties - - - (58,472) - - - - - - - - - (58,472) - (58,472)
------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Operating Income
(Loss) (4,663) 120,345 81,114 12,382 (6) 185,516 - 8,278 6,726 1,002 (39) - (730) 409,925 4,491 414,416
------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
OTHER INCOME (EXPENSE):
Income from Unconsolidated
Subsidiaries - - - - - - - - - - - - 535 535 - 535
Unremitted Earnings/(Loss)
of Subsidiaries 109,145 - - - - - - - - - - - - 109,145 (109,145) -
Dividends from
Subsidiaries 71,808 - - 1,111 - - - - - - - - - 72,919 (72,919) -
Interest-Intercompany 94,954 87 26 1,098 12 - 8 595 8 2 - - - 96,790 (96,790) -
Other Income 838 2,355 560 74 - 379 (43) 378 2,259 - - - 214 7,014 (127) 6,887
Interest on Long-Term
Debt (89,643) - - - - (1,738) - - (1,385) - - - - (92,766) - (92,766)
Interest-Intercompany (977) (23,341) (8,537) (52,919) - (4,792) - - (5,777) (229) (218) - - (96,790) 96,790 -
Other Interest (3,227) (5,781) (1,236) (407) - 14 - (33) (1,538) - - - (292) (12,500) 210 (12,290)
------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Income (Loss) Before
Income Taxes
and Minority
Interest in
Foreign
Subsidiaries 178,235 93,665 71,927 (38,661) 6 179,379 (35) 9,218 293 775 (257) - (273) 494,272 (177,490) 316,782
------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Income Taxes (709) 36,857 29,533 (14,215) 2 70,395 (14) 3,350 876 314 (90) - (23) 126,276 1,885 128,161
Minority Interest in
Foreign Subsidiaries - - - - - - - - (785) - - - - (785) - (785)
------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Income/(Loss) Before
Cumulative Effect 178,944 56,808 42,394 (24,446) 4 108,984 (21) 5,868 (1,368) 461 (167) - (250) 367,211 (179,375) 187,836
------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Cumulative Effect of
Change in Accounting - - - (637) - - - - (8,255) - - - - (8,892) - (8,892)
------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Net Income (Loss)
Available for
Common Stock $ 178,944 $ 56,808 $ 42,394 $ (25,083) $ 4 $ 108,984 $ (21) $ 5,868 $ (9,623) $ 461 $ (167) $ - $ (250) $ 358,319 $ (179,375) $ 178,944
============ =========== =========== ============ =========== =========== ============ =========== =========== =========== =========== =========== =========== =========== =========== ===========
==========
Used in Diluted Calculation 81,357,896
==========
See Notes to Consolidated Financial Statements included in Item 8 of National
Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2003,
incorporated by reference.
NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES
CONSOLIDATING STATEMENT OF EARNINGS REINVESTED IN THE BUSINESS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2003
(THOUSANDS OF DOLLARS)
Horizon
National National Seneca Highland Data-Track National Energy Upstate Seneca Niagara
National Fuel Gas Fuel Gas Resources Leidy Forest Account Fuel Development, Energy, Indep. Indpendence Horizon Total Before Eliminations Consolidated
Fuel Gas Distribution Supply Corporation Hub, Resources, Inc. Services, Resources, Inc. Inc. Pipeline Marketing, Power, Eliminations & Adjustments Company and
Company Corp. Corp. (Consolidated) Inc. (Consolidated) Inc. Inc. (Consolidated)(Consolidated) Company Inc. Inc. & Adjustments Dr (Cr) Subsidiaries
------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
EARNINGS REINVESTED
IN THE BUSINESS
Balance at Beginning
of Year $ 549,397 $ 346,266 $ 242,705 $ 5,920 $ (632) $ 5,147 $ 277 $ 5,943 $ (13,587) $ (6,252) $ (9,611) $ - $ 121 $ 1,125,694 $ (576,297) $ 549,397
Net Income (Loss)
Available for
Common Stock 178,944 56,808 42,394 (25,083) 4 108,984 (21) 5,868 (9,623) 461 (167) - (250) 358,319 (179,375) 178,944
Dividends on Common
Stock (2003 - $1.06
per share) (85,651) (35,600) (25,375) (9,110) - (2,200) - (700) - - - - - (158,636) 72,985 (85,651)
------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Balance at End of Year $ 642,690 $ 367,474 $ 259,724 $ (28,273) $ (628) $ 111,931 $ 256 $ 11,111 $ (23,210) $ (5,791) $ (9,778) $ - $ (129) $ 1,325,377 $ (682,687) $ 642,690
============ =========== =========== ============ =========== =========== ============ =========== =========== =========== =========== =========== =========== =========== =========== ===========
At September 30, 2003 ANALYSIS OF INVESTMENTS IN ASSOCIATED COMPANIES AT SEPTEMBER 30, 2003
Par or Earnings Total Investment
Intercompany Eliminations: Stated Value Reinvested in Unremitted Accumulated in Associated
of Paid the Business Earnings Other Companies
Subsidiary In at Since Comprehensive at
Earnings Reinvested in the Business: Stock Capital Acquisition Acquisition Income Equity
----------- ----------- ----------- ----------- ------------ ----------------
Unremitted Earnings of Subsidiaries Registrant:
Since Acquisition 693,029 Distribution
Earnings Reinvested in the Business Corporation $ 59,170 $ 121,668 $ 4,636 $ 362,838 $ - $ 548,312
of Subsidiaries at Acquisition 7,095 Supply Corporation 25,345 35,833 2,453 257,271 124 321,026
Consolidating Adjustment (17,437) Seneca Resources 500 104,035 6 (28,279) (225) 76,037
-----------
$ 682,687 Leidy Hub 4 1,365 - (628) - 741
===========
Highland 4 3,004 - 111,931 225 115,164
Data-Track 1 499 - 256 - 756
Net Income Available for Common Stock: NFR 10 33,490 - 11,111 (104) 44,507
Subsidiaries-Dividends on Horizon 5 38,246 - (23,210) 21,822 36,863
Common Stock 72,985 Upstate 1 6,800 - (5,791) 1,335 2,345
Unremitted Earnings of Subsidiaries 109,145 Seneca Independence 1 - - (9,778) - (9,777)
Consolidating Adjustment (2,755) Niagara Independence 1 - - - - 1
-----------
179,375 Horizon Power, Inc. 1 5,020 - (129) - 4,892
===========
Consolidating
Adjustment - - - 17,437 (413) 17,024
----------- ----------- ----------- ----------- ----------- -----------
85,043 349,960 7,095 693,029 22,764 1,157,891
See Notes to Consolidated Financial Statements included in Item 8 of National Seneca Corporation:
Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2003, Highland - 19,158 - - - 19,158
incorporated herein by reference. Supply Corporation:
Seneca Resources - 61 - - - 61
----------- ----------- ----------- ----------- ----------- -----------
$ 85,043 $ 369,179 $ 7,095 $ 693,029 $ 22,764 $1,177,110
=========== =========== =========== =========== =========== ===========
NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES
CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2003
(THOUSANDS OF DOLLARS)
Horizon
National National Seneca Highland Data-Track National Energy Upstate Seneca Niagara
National Fuel Gas Fuel Gas Resources Leidy Forest Account Fuel Development, Energy, Indep. Indpendence Horizon Total Before Eliminations Consolidated
Fuel Gas Distribution Supply Corporation Hub, Resources, Inc. Services, Resources, Inc. Inc. Pipeline Marketing, Power, Eliminations & Adjustments Company and
Company Corp. Corp. (Consolidated) Inc. (Consolidated) Inc. Inc. (Consolidated)(Consolidated) Company Inc. Inc. & Adjustments Dr (Cr) Subsidiaries
------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Net Income (Loss) Available
for Common Stock $ 178,944 $ 56,808 $ 42,394 $ (25,083) $ 4 $ 108,984 $ (21) $ 5,868 $ (9,623) $ 461 $ (167) $ - $ (250) $ 358,319 $ (179,375) $ 178,944
Other Comprehensive Income
(Loss), Before Tax:
Minimum Pension Liability Adj.(86,170) - - - - - - - - - - - - (86,170) - (86,170)
Foreign Currency
Translation Adjustment 54,472 - - 36,821 - - - - 17,651 - - - - 108,944 (54,472) 54,472
Reclassification Adjustment
for Realized Foreign Currency
Translation (Gain) in Net
Income (9,607) - - (9,607) - - - - - - - - - (19,214) 9,607 (9,607)
Unrealized Gain on
Securities Available
for Sale Arising During
the Period 2,419 - - - - - - - - - - - - 2,419 - 2,419
Unrealized Gain/(Loss) on
Derivative Financial
Instruments Arising During
the Period (47,777) - (1,330) (41,696) - (405) - (7,035) - 2,689 - - - (95,554) 47,777 (47,777)
Reclassification Adjustment
for Realized (Gain)/Loss on
Derivative Financial Instruments
in Net Income 69,809 - 1,759 60,123 - 630 - 8,139 - (842) - - - 139,618 (69,809) 69,809
------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Other Comprehensive Income
(Loss), Before Tax (16,854) - 429 45,641 - 225 - 1,104 17,651 1,847 - - - 50,043 (66,897) (16,854)
Income Tax Benefit Related
to Minimum Pension Liability (30,159) - - - - - - - - - - - - (30,159) - (30,159)
Income Tax Expense/(Benefit) Related
to Unrealized Gain/(Loss)
on Securities Available
for Sale Arising During
the Period 847 - - - - - - - - - - - - 847 - 847
Income Tax Expense/(Benefit) Related
to Unrealized Gain/(Loss)
on Derivative Financial
Instruments Arising During
the Period (18,594) - (555) (15,594) - - - (2,866) - 421 - - - (37,188) 18,594 (18,594)
Reclassification Adjustment for
for Realized (Gain)/Loss on
Derivative Financial
Instruments in Net Income 26,953 - 726 23,186 - - - 3,266 - (225) - - - 53,906 (26,953) 26,953
------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Income Taxes - Net (20,953) - 171 7,592 - - - 400 - 196 - - - (12,594) (8,359) (20,953)
------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Other Comprehensive Income/
(Loss) 4,099 - 258 38,049 - 225 - 704 17,651 1,651 - - - 62,637 (58,538) 4,099
------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Comprehensive Income (Loss) $ 183,043 $ 56,808 $ 42,652 $ 12,966 $ 4 $ 109,209 $ (21) $ 6,572 $ 8,028 $ 2,112 $ (167) $ - $ (250) $ 420,956 $ (237,913) $ 183,043
============ =========== =========== ============ =========== =========== ============ =========== =========== =========== =========== =========== =========== =========== =========== ===========
See Notes to Consolidated Financial Statements included in Item 8 of National
Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2003,
incorporated herein by reference.
NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES
CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2003
(THOUSANDS OF DOLLARS)
Horizon
National National Seneca Highland Data-Track National Energy Upstate Seneca Niagara
National Fuel Gas Fuel Gas Resources Leidy Forest Account Fuel Development, Energy, Indep. Indpendence Horizon Total Before Eliminations Consolidated
Fuel Gas Distribution Supply Corporation Hub, Resources, Inc. Services, Resources, Inc. Inc. Pipeline Marketing, Power, Eliminations & Adjustment Company and
Company Corp. Corp. (Consolidated) Inc. (Consolidated) Inc. Inc. (Consolidated (Consolidated) Company Inc. Inc. & Adjustments Dr (Cr) Subsidiaries
----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ------------- ----------- ----------- ---------- ------------- ---------- -----------
OPERATING ACTIVITIES:
Net Income (Loss) Available
for Common Stock $ 178,944 $ 56,808 $ 42,394 $ (25,083) $ 4 $ 108,984 $ (21) $ 5,868 $ (9,623) $ 461 $ (167) $ - $ (250) $ 358,319 $ (179,375) $ 178,944
Adjustments to Reconcile Net
Income to Net Cash Provided
by Operating Activities:
Gain on Sale of Timber Property - - - - - (168,787) - - - - - - - (168,787) - (168,787)
Loss on Sale of Oil & Gas Prop. - - - 58,472 - - - - - - - - - 58,472 - 58,472
Impairment of Oil & Gas Prop. - - - 42,774 - - - - - - - - - 42,774 - 42,774
Cumul. Effect of Change in Acctg. - - - 637 - - - - 8,255 - - - - 8,892 - 8,892
Unremitted (Earnings)/Loss of
Subsidiaries (109,145) - - - - - - - - - - - - (109,145) 109,145 -
Depreciation, Depletion
and Amortization - 38,186 28,845 99,574 - 14,313 26 117 13,910 190 - - 21 195,182 44 195,226
Deferred Income Taxes (1,337) 20,116 8,729 (12,488) (1) 55,975 (15) (238) 3,155 178 4,143 - 152 78,369 - 78,369
(Income) Loss from Unconsolidated
Subsidiaries, Net of Cash
Distributions - - - - - - - - - - - - 703 703 - 703
Minority Interest in Foreign
Subsidiaries - - - - - - - - 785 - - - - 785 - 785
Other 1,539 698 1,728 (9) - 1,157 52 - - 341 - - - 5,506 5,783 11,289
Change in:
Receivables and Unbilled
Utility Revenue (47) (38,506) (3,763) 4,939 - 837 - (569) 1,003 995 - - (7) (35,118) - (35,118)
Accounts Receivable-
Intercompany 3,731 (2,924) (6,356) 1,428 4 (337) 14 1,037 (21) (212) - - (12) (3,648) 3,648 -
Gas Stored Underground
and Material and Supplies - (9,807) (515) 2,117 - 747 - (10,598) (8) 6,770 - - - (11,294) (1,127) (12,421)
Unrecovered Purchased Gas Costs - (16,261) - - - - - - - - - - - (16,261) - (16,261)
Prepayments 171 417 117 1,492 - (1,290) (1) (17) (27) - - - - 862 - 862
Accounts Payable 108 26,199 (882) (479) - (2,561) (40) 4,244 224 (265) - - 236 26,784 (6,349) 20,435
Amounts Payable to Customers - 692 - - - - - - - - - - - 692 - 692
Accounts Payable-Intercompany 306 (429) 1,254 (1,970) 1 (924) (25) (1,112) 440 81 (8) - (16) (2,402) 2,402 -
Other Accruals and Current
Liabilities (2,337) 10,725 3,976 (5,465) 3 2,511 12 (1,162) 2,980 236 (4,233) - (536) 6,710 1,885 8,595
Other Assets 653 (26,866) (2,695) 24 1 973 - 2,306 3 (1,155) (8) - - (26,764) (3,152) (29,916)
Other Liabilities (9,101) (9,019) (4,159) (1,300) (1) (693) 5 (6,821) 1,130 1,130 - - (393) (29,222) 12,524 (16,698)
----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ---------- ---------- ---------- -----------
Net Cash Provided by
(Used in) Operating
Activities $ 63,485 $ 50,029 $ 68,673 $ 164,663 $ 11 $ 10,905 $ 7 $ (6,945) $ 22,206 $ 8,750 $ (273) $ - $ (102) $ 381,409 $ (54,572) $ 326,837
----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ---------- ---------- ---------- -----------
See Notes to Consolidated Financial Statements included in Item 8 of National
Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2003,
incorporated herein by reference.
(Consolidating Statement of Cash Flows continues on pages 52 and 53)
NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES
CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2003
(THOUSANDS OF DOLLARS)
Horizon
National National Seneca Highland Data-Track National Energy Upstate Seneca Niagara
National Fuel Gas Fuel Gas Resources Leidy Forest Account Fuel Development, Energy, Indep. Indpendence Horizon Total Before Eliminations Consolidated
Fuel Gas Distribution Supply Corporation Hub, Resources, Inc. Services, Resources, Inc. Inc. Pipeline Marketing, Power, Eliminations & Adjustment Company and
Company Corp. Corp. Consolidated) Inc. (Consolidated) Inc. Inc. (Consolidated (Consolidated) Company Inc. Inc. & Adjustments Dr (Cr) Subsidiaries
----------- ----------- ----------- ------------ ----------- ----------- ---------- ----------- ------------ ----------- ----------- ----------- ---------- ---------- ---------- -----------
INVESTING ACTIVITIES:
Capital Expenditures $ (1,883) $ (49,944) $ (18,128) $ (76,129) $ - $ (3,248) $ - $ (164) $ (2,499) $ - $ - $ - $ (256) $ (152,251) $ - $ (152,251)
Investment in Subsidiaries - - - - - (181,152) - - - (47,662) - - - (228,814) - (228,814)
Investment in Partnerships - - - - - - - - - - - - (375) (375) - (375)
Change in Notes
Receivable - Intercompany 102,600 - (13,100) 44,300 - - 100 8,900 (230) - - - - 142,570 (142,570) -
Net Proceeds from Sale of
Timber Properties - - - - - 186,014 - - - - - - - 186,014 - 186,014
Net Proceeds from Sale of
Oil & Gas Properties - - - 78,531 - - - - - - - - - 78,531 - 78,531
Other - 78 592 12 - 1,339 - - 1,310 - - - 42 3,373 8,692 12,065
----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ---------- ---------- ---------- -----------
Net Cash Provided by (Used In)
Investing Activities 100,717 (49,866) (30,636) 46,714 - 2,953 100 8,736 (1,419) (47,662) - - (589) 29,048 (133,878) (104,830)
----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ---------- ---------- ---------- -----------
FINANCING ACTIVITIES:
Change in Notes Payable to
Banks and Commercial Paper (135,800) - - (9,567) - - - - (2,255) - - - - (147,622) - (147,622)
Change in Notes
Payable-Intercompany (22,500) 31,810 (12,630) (186,950) - 300 - - 4,900 41,900 300 - 300 (142,570) 142,570 -
Net Proceeds from Issuance of
Long-Term Debt 248,513 - - - - - - - - - - - - 248,513 - 248,513
Reduction of Long-Term Debt (202,600) (61) - - - (7,000) - - (18,165) - - - - (227,826) - (227,826)
Proceeds from Issuance of
Common Stock 33,141 - - - - - - - - - - - - 33,141 (16,122) 17,019
Dividends Paid on Common Stock (84,530) (35,200) (24,962) (8,656) - (1,900) - (600) - - - - - (155,848) 71,318 (84,530)
----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ---------- ---------- ---------- -----------
Net Cash Provided by (Used in)
Financing Activities (163,776) (3,451) (37,592) (205,173) - (8,600) - (600) (15,520) 41,900 300 - 300 (392,212) 197,766 (194,446)
----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ---------- ---------- ---------- -----------
Effect of Exchange Rates
on Cash - - - (1,635) - - - - 3,279 - - - - 1,644 - 1,644
----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ---------- ---------- ---------- -----------
Net Increase (Decrease) in
Cash and Temporary Cash
Investments 426 (3,288) 445 4,569 11 5,258 107 1,191 8,546 2,988 27 - (391) 19,889 9,316 29,205
Cash and Temporary Cash
Investments at Beginning
of Year 177 3,601 607 5,638 106 131 91 689 9,793 19 20 1 448 21,321 895 22,216
----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ---------- ---------- ---------- -----------
Cash and Temporary Cash
Investments at End of Year $ 603 $ 313 $ 1,052 $ 10,207 $ 117 $ 5,389 $ 198 $ 1,880 $ 18,339 $ 3,007 $ 47 $ 1 $ 57 $ 41,210 $ 10,211 $ 51,421
=========== =========== =========== =========== =========== =========== =========== =========== =========== =========== =========== =========== ========== ========== ========== ===========
See Notes to Consolidated Financial Statements included in Item 8 of National
Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2003,
incorporated herein by reference.
SENECA RESOURCES CORPORATION
CONSOLIDATING BALANCE SHEET
AT SEPTEMBER 30, 2003
(THOUSANDS OF DOLLARS)
Seneca Consolidated
Resources Total Canadian Total Before Seneca and
Corporation Operations Eliminations Eliminations Subsidiaries
-------------- -------------- --------------- -------------- --------------
ASSETS
PROPERTY, PLANT & EQUIPMENT $ 1,433,471 $ 285,061 $ 1,718,532 $ - $ 1,718,532
Less: Accumulated DD&A 611,653 168,574 780,227 - 780,227
-------------- -------------- --------------- -------------- --------------
821,818 116,487 938,305 - 938,305
-------------- -------------- --------------- -------------- --------------
CURRENT ASSETS:
Cash and Temporary Cash Investments 629 9,578 10,207 - 10,207
Allowance for Uncollectible Accounts (851) - (851) - (851)
Notes Receivable - Intercompany - - - - -
Accounts Receivable 21,567 6,111 27,678 - 27,678
Accounts Receivable - Intercompany 29,548 - 29,548 (25,667) 3,881
Dividends Receivable 454 - 454 - 454
Materials and Supplies 307 740 1,047 - 1,047
Fair Value of Derivative Fin. Instruments 194 - 194 - 194
Prepayments 5,056 633 5,689 - 5,689
-------------- -------------- --------------- -------------- --------------
56,904 17,062 73,966 (25,667) 48,299
-------------- -------------- --------------- -------------- --------------
OTHER ASSETS:
Investment in Associated Companies (40,140) - (40,140) 59,298 19,158
Deferred Charges 296 168 464 - 464
Notes Receivable - Intercompany 146,797 - 146,797 (146,797) -
Other Assets 61 - 61 - 61
-------------- -------------- --------------- -------------- --------------
107,014 168 107,182 (87,499) 19,683
-------------- -------------- --------------- -------------- --------------
TOTAL ASSETS $ 985,736 $ 133,717 $ 1,119,453 $ (113,166) $ 1,006,287
============== ============== =============== ============== ==============
CAPITALIZATION & LIABILITIES
CAPITALIZATION:
Common Stock 500 - 500 - 500
Paid - in - Capital 104,035 111,076 215,111 (111,076) 104,035
Earnings Reinvested in the Business (28,273) (178,601) (206,874) 178,601 (28,273)
-------------- -------------- --------------- -------------- --------------
Total Common Shareholder
Equity Before Items of Other
Comprehensive Income 76,262 (67,525) 8,737 67,525 76,262
Accumulated Other
Comprehensive Income (Loss) (225) 8,227 8,002 (8,227) (225)
-------------- -------------- --------------- -------------- --------------
Total Comprehensive Shareholders' Equity 76,037 (59,298) 16,739 59,298 76,037
Notes Payable-Intercompany 688,550 146,797 835,347 (146,797) 688,550
-------------- -------------- --------------- -------------- --------------
Total Capitalization 764,587 87,499 852,086 (87,499) 764,587
-------------- -------------- --------------- -------------- --------------
CURRENT AND ACCRUED LIABILITIES:
Notes Payable to Banks and
Commercial Paper - - - - -
Accounts Payable 22,954 9,823 32,777 - 32,777
Notes Payable - Intercompany 32,700 - 32,700 - 32,700
Accounts Payable - Intercompany 16,636 25,667 42,303 (25,667) 16,636
Dividends Payable - Intercompany 2,454 - 2,454 - 2,454
Fair Value of Derivative Fin. Instruments 13,675 - 13,675 - 13,675
Other Accruals and Current
Liabilities (19,939) 364 (19,575) - (19,575)
-------------- -------------- --------------- -------------- --------------
68,480 35,854 104,334 (25,667) 78,667
-------------- -------------- --------------- -------------- --------------
DEFERRED CREDITS:
Accumulated Deferred Income Taxes 124,106 8,760 132,866 - 132,866
Pension Liability (395) - (395) - (395)
Asset Retirement Obligation 25,889 1,604 27,493 - 27,493
Other Deferred Credits 3,069 - 3,069 - 3,069
-------------- -------------- --------------- -------------- --------------
152,669 10,364 163,033 - 163,033
-------------- -------------- --------------- -------------- --------------
TOTAL CAPITALIZATION & LIABILITIES $ 985,736 $ 133,717 $ 1,119,453 $ (113,166) $ 1,006,287
============== ============== =============== ============== ==============
See Notes to Consolidated Financial Statements included in Item 8 of National
Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2003,
incorporated herein by reference.
SENECA RESOURCES CORPORATION
CONSOLIDATING STATEMENT OF INCOME
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2003
(THOUSANDS OF DOLLARS)
Seneca Consolidated
Resources Total Canadian Total Before Seneca and
Corporation Operations Eliminations Eliminations Subsidiaries
-------------- -------------- --------------- -------------- --------------
OPERATING REVENUE: $ 214,309 $ 102,421 $ 316,730 $ - $ 316,730
-------------- -------------- --------------- -------------- --------------
OPERATING EXPENSE:
Purchased Gas 1,216 - 1,216 - 1,216
Operation and Maintenance 58,419 31,581 90,000 - 90,000
Property, Franchise & Other Taxes 4,693 7,619 12,312 - 12,312
Depreciation, Depletion and
Amortization 72,879 26,695 99,574 - 99,574
Impairment of Oil & Gas
Producing Properties (12,261) 55,035 42,774 - 42,774
-------------- -------------- --------------- -------------- --------------
124,946 120,930 245,876 - 245,876
Loss on Sale of Oil & Gas
Producing Properties - (58,472) (58,472) - (58,472)
-------------- -------------- --------------- -------------- --------------
Operating Income (Loss) 89,363 (76,981) 12,382 - 12,382
-------------- -------------- --------------- -------------- --------------
OTHER INCOME (EXPENSE):
Unremitted Earnings/(Loss) of
Subsidiary (88,729) - (88,729) 88,729 -
Dividends from Subsidiaries 1,111 - 1,111 - 1,111
Interest - Intercompany 4,135 - 4,135 (3,037) 1,098
Other Income 74 - 74 - 74
Interest - Intercompany (52,919) (3,037) (55,956) 3,037 (52,919)
Other Interest (221) (186) (407) - (407)
-------------- -------------- --------------- -------------- --------------
(136,549) (3,223) (139,772) 88,729 (51,043)
-------------- -------------- --------------- -------------- --------------
Income (Loss) Before
Income Taxes and
Minority Interest in
Foreign Subsidiary (47,186) (80,204) (127,390) 88,729 (38,661)
-------------- -------------- --------------- -------------- --------------
Income Taxes (22,681) 8,466 (14,215) - (14,215)
-------------- -------------- --------------- -------------- --------------
Income/(Loss) Before
Cumulative Effect (24,505) (88,670) (113,175) 88,729 (24,446)
-------------- -------------- --------------- -------------- --------------
Cumulative Effect of
Change in Accounting (578) (59) (637) - (637)
-------------- -------------- --------------- -------------- --------------
Net Income (Loss) Available
for Common Stock $ (25,083) $ (88,729) $ (113,812) $ 88,729 $ (25,083)
============== ============== =============== ============== ==============
See Notes to Consolidated Financial Statements included in Item 8 of National
Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2003,
incorporated herein by reference.
SENECA RESOURCES CORPORATION.
CONSOLIDATING STATEMENT OF EARNINGS REINVESTED IN THE BUSINESS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2003
(THOUSANDS OF DOLLARS)
Seneca Consolidated
Resources Total Canadian Total Before Seneca and
EARNINGS REINVESTED IN THE BUSINESS Corporation Operations Eliminations Eliminations Subsidiaries
-------------- -------------- --------------- -------------- --------------
Balance at Beginning of Year $ 5,920 $ (89,351) $ (83,431) $ 89,351 $ 5,920
Net Income (Loss) Available
for Common Stock (25,083) (88,729) (113,812) 88,729 (25,083)
Dividends on Common Stock (9,110) (521) (9,631) 521 (9,110)
-------------- -------------- --------------- -------------- --------------
Balance at End of Year $ (28,273) $ (178,601) $ (206,874) $ 178,601 $ (28,273)
============== ============== =============== ============== ==============
See Notes to Consolidated Financial Statements included in Item 8 of National
Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2003,
incorporated herein by reference.
SENECA RESOURCES CORPORATION
CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2003
(THOUSANDS OF DOLLARS)
Seneca Consolidated
Resources Total Canadian Total Before Seneca and
Corporation Operations Eliminations Eliminations Subsidiaries
-------------- -------------- --------------- -------------- --------------
Net Income (Loss) Available
for Common Stock $ (25,083) $ (88,729) $ (113,812) $ 88,729 $ (25,083)
-------------- -------------- --------------- -------------- --------------
Other Comprehensive Income
(Loss), Before Tax:
Foreign Currency
Translation Adjustment 36,821 36,821 73,642 (36,821) 36,821
Reclassification Adjustment
for Realized Foreign Currency
Translation (Gain) in Net Income (9,607) (9,607) (19,214) 9,607 (9,607)
Unrealized Loss on Derivative
Financial Instruments Arising
During the Period (41,696) 12,668 (29,028) (12,668) (41,696)
Reclassification Adjustment for Realized
Loss on Derivative Financial
Instruments in Net Income 60,123 5,031 65,154 (5,031) 60,123
-------------- -------------- --------------- -------------- --------------
Other Comprehensive Loss,
Before Tax 45,641 44,913 90,554 (44,913) 45,641
Income Tax Benefit Related to Unrealized
Loss on Derivative Financial
Instruments Arising During the Period (15,594) 5,399 (10,195) (5,399) (15,594)
Reclassification Adjustment for Income Tax
Benefit on Realized Loss on Derivative
Financial Instruments Realized In Net Income 23,186 2,144 25,330 (2,144) 23,186
-------------- -------------- --------------- -------------- --------------
Income Taxes - Net 7,592 7,543 15,135 (7,543) 7,592
-------------- -------------- --------------- -------------- --------------
Other Comprehensive Loss 38,049 37,370 75,419 (37,370) 38,049
-------------- -------------- --------------- -------------- --------------
Comprehensive Loss $ 12,966 $ (51,359) $ (38,393) $ 51,359 $ 12,966
============== ============== =============== ============== ==============
See Notes to Consolidated Financial Statements included in Item 8 of National
Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2003,
incorporated herein by reference.
SENECA RESOURCES CORPORATION
CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2003
(THOUSANDS OF DOLLARS)
Seneca Consolidated
Resources Total Canadian Total Before Seneca and
Corporation Operations Eliminations Eliminations Subsidiary
------------- -------------- ------------- ------------- -------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (Loss) $ (25,083) $ (88,729) $ (113,812) $ 88,729 $ (25,083)
Adjustments to Reconcile Net Income
to Net Cash Provided by Operating
Activities:
Unremitted (Earnings)/Loss of Subsidiary 88,729 - 88,729 (88,729) -
Loss on Sale of Oil & Gas Producing Properties - 58,472 58,472 - 58,472
Impairment of Oil & Gas Producing Properties - 42,774 42,774 - 42,774
Cumul. Effect of Change in Acctg. 578 59 637 - 637
Depreciation, Depletion &
Amortization 72,879 26,695 99,574 - 99,574
Deferred Income Taxes (20,449) 7,961 (12,488) - (12,488)
Other (9) - (9) - (9)
Change in:
Receivables and Unbilled Utility
Revenue 998 7,824 8,822 (3,883) 4,939
Accounts Receivable - Intercompany 13,446 - 13,446 (12,018) 1,428
Materials and Supplies 627 1,490 2,117 - 2,117
Prepayments 1,428 64 1,492 - 1,492
Accounts Payable 92 (4,454) (4,362) 3,883 (479)
Accounts Payable - Intercompany (1,515) (15,536) (17,051) 15,081 (1,970)
Other Accruals and Current Liabilities (5,673) 208 (5,465) - (5,465)
Other Assets - 24 24 - 24
Other Liabilities 179 1,584 1,763 (3,063) (1,300)
------------- -------------- ------------- ------------- -------------
Net Cash Provided by
Operating Activities 126,227 38,436 164,663 - 164,663
------------- -------------- ------------- ------------- -------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital Expenditures (45,346) (30,783) (76,129) - (76,129)
Net Proceeds from Sale of
Oil & Gas Properties 1,954 76,577 78,531 - 78,531
Change in Notes
Receivable - Intercompany 107,816 - 107,816 (63,516) 44,300
Other 12 - 12 - 12
------------- -------------- ------------- ------------- -------------
Net Cash Used in Investing
Activities 64,436 45,794 110,230 (63,516) 46,714
------------- -------------- ------------- ------------- -------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Change in Notes Payable - Intercompany (186,950) (75,096) (262,046) 75,096 (186,950)
Change in Notes Payable to Banks and
Commercial Paper - (9,567) (9,567) - (9,567)
Dividends Paid on Common Stock (8,656) - (8,656) - (8,656)
------------- -------------- ------------- ------------- -------------
Net Cash Used in Financing
Activities (195,606) (84,663) (280,269) 75,096 (205,173)
------------- -------------- ------------- ------------- -------------
Effect of Exchange Rates on Cash - 9,945 9,945 (11,580) (1,635)
------------- -------------- ------------- ------------- -------------
Net Increase (Decrease) in Cash
and Temporary Cash Investments (4,943) 9,512 4,569 - 4,569
Cash and Temporary Cash Investments
at Beginning of Period 5,572 66 5,638 - 5,638
------------- -------------- ------------- ------------- -------------
Cash and Temporary Cash Investments
at End of Period $ 629 $ 9,578 $ 10,207 $ - $ 10,207
============= ============== ============= ============= =============
See Notes to Consolidated Financial Statements included in Item 8 of National
Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2003,
incorporated herein by reference.
HIGHLAND FOREST RESOURCES, INC.
CONSOLIDATING BALANCE SHEET
AT SEPTEMBER 30, 2003
(THOUSANDS OF DOLLARS)
Highland
Highland Forest
Forest Empire St. Clair Empire State Total Before Resources, Inc.
Resources, Inc. LLC LLC Pipeline Eliminations Eliminations (Consolidated)
-------------- ----------- ------------ ------------ ----------- ------------ --------------
ASSETS
PROPERTY, PLANT & EQUIPMENT $ 91,790 $ 10,982 $ - $ 209,858 $ 312,630 $ - $ 312,630
Less: Accumulated DD&A 16,661 (73,267) - 80,073 23,467 - 23,467
------------ ----------- ------------ ------------ ----------- ------------ -----------
75,129 84,249 - 129,785 289,163 - 289,163
------------ ----------- ------------ ------------ ----------- ------------ -----------
CURRENT ASSETS:
Cash and Temporary Cash Investments 174 2,034 611 2,570 5,389 - 5,389
Allowance for Uncollectible Accounts - - - - - - -
Notes Receivable - Intercompany - - - - - - -
Accounts Receivable 2,984 - - 2,551 5,535 - 5,535
Accounts Receivable - Intercompany 132 - - 406 538 - 538
Dividends Receivable 300 150 150 - 600 (600) -
Materials and Supplies 14,273 - - 73 14,346 - 14,346
Fair Value of Derivative
Financial Instruments - - - - - - -
Prepayments 455 - - 3,670 4,125 - 4,125
------------ ----------- ------------ ------------ ----------- ------------ -----------
18,318 2,184 761 9,270 30,533 (600) 29,933
------------ ----------- ------------ ------------ ----------- ------------ -----------
OTHER ASSETS:
Recoverable Future Taxes - - - 4,167 4,167 - 4,167
Unamortized Debt Expense - - - 290 290 - 290
Other Regulatory Assets - - - 2,294 2,294 - 2,294
Investment in Associated Company 184,805 42,286 42,285 - 269,376 (269,376) -
Deferred Charges - - - (160) (160) - (160)
Notes Receivable - Intercompany - - - - - - -
Goodwill - 5,476 - - 5,476 - 5,476
Intangible Assets - 7,867 - - 7,867 - 7,867
Other Assets 778 - - - 778 - 778
------------ ----------- ------------ ------------ ----------- ------------ -----------
185,583 55,629 42,285 6,591 290,088 (269,376) 20,712
------------ ----------- ------------ ------------ ----------- ------------ -----------
TOTAL ASSETS $ 279,030 $ 142,062 $ 43,046 $ 145,646 $ 609,784 $ (269,976) $ 339,808
============ =========== ============ ============ =========== ============ ===========
CAPITALIZATION & LIABILITIES
CAPITALIZATION:
Common Stock 4 142,164 47,041 - 189,209 (189,205) 4
Paid - in - Capital 22,163 - - 38,219 60,382 (38,220) 22,162
Earnings Reinvested
in the Business 111,931 (368) (4,257) 50,605 157,911 (45,980) 111,931
------------ ----------- ------------ ------------ ----------- ------------ -----------
Total Common Shareholder
Equity Before Items of Other
Comprehensive Income 134,098 141,796 42,784 88,824 407,502 (273,405) 134,097
Accumulated Other
Comprehensive Loss 225 112 112 (4,253) (3,804) 4,029 225
------------ ----------- ------------ ------------ ----------- ------------ -----------
Total Comprehensive
Shareholders's Equity 134,323 141,908 42,896 84,571 403,698 (269,376) 134,322
Long-Term Debt, net of Current Portion - - - 41,433 41,433 - 41,433
Notes Payable-Intercompany 60,000 - - - 60,000 - 60,000
------------ ----------- ------------ ------------ ----------- ------------ -----------
Total Capitalization 194,323 141,908 42,896 126,004 505,131 (269,376) 235,755
------------ ----------- ------------ ------------ ----------- ------------ -----------
CURRENT AND ACCRUED LIABILITIES:
Notes Payable to Banks and
Commercial Paper - - - - - - -
Accounts Payable 3,447 - - 742 4,189 - 4,189
Notes Payable - Intercompany 18,800 - - - 18,800 - 18,800
Current Portion of Long-Term Debt - - - 9,334 9,334 - 9,334
Accounts Payable - Intercompany 2,573 - - 82 2,655 - 2,655
Dividends Payable - Intercompany 700 150 150 300 1,300 (600) 700
Fair Value of Derivative
Financial Instruments - - - 4,253 4,253 - 4,253
Other Accruals and Current
Liabilities 2,069 2 - 778 2,849 - 2,849
------------ ----------- ------------ ------------ ----------- ------------ -----------
27,589 152 150 15,489 43,380 (600) 42,780
------------ ----------- ------------ ------------ ----------- ------------ -----------
DEFERRED CREDITS:
Accumulated Deferred Income Taxes 56,464 - - 4,145 60,609 - 60,609
Pension Liability 62 - - - 62 - 62
Asset Retirement Obligation - - - - - - -
Other Deferred Credits 592 2 - 8 602 - 602
------------ ----------- ------------ ------------ ----------- ------------ -----------
57,118 2 - 4,153 61,273 - 61,273
------------ ----------- ------------ ------------ ----------- ------------ -----------
TOTAL CAPITALIZATION &
LIABILITIES $ 279,030 $ 142,062 $ 43,046 $ 145,646 $ 609,784 $ (269,976) $ 339,808
============ =========== ============ ============ =========== ============ ===========
See Notes to Consolidated Financial Statements included in Item 8 of National
Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2003,
incorporated herein by reference.
HIGHLAND FOREST RESOURCES, INC.
CONSOLIDATING STATEMENT OF INCOME
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2003
(THOUSANDS OF DOLLARS)
Highland
Highland Forest
Forest Empire St. Clair Empire State Total Before Resources, Inc.
Resources, Inc. LLC LLC Pipeline Eliminations Eliminations (Consolidated)
-------------- ----------- ------------ ------------ ----------- ------------ --------------
OPERATING REVENUE: $ 55,936 $ (713) $ - $ 21,595 $ 76,818 $ - $ 76,818
------------ ----------- ------------ ------------ ----------- ------------ -----------
OPERATING EXPENSE:
Purchased Gas - - - - - - -
Operation and Maintenance 40,392 93 - 2,197 42,682 - 42,682
Property, Franchise & Other Taxes 56 - - 3,038 3,094 - 3,094
Depreciation, Depletion and
Amortization 7,218 (4,688) - 11,783 14,313 - 14,313
------------ ----------- ------------ ------------ ----------- ------------ -----------
47,666 (4,595) - 17,018 60,089 - 60,089
Gain on Sale of Timber
Properties 168,787 - - - 168,787 - 168,787
------------ ----------- ------------ ------------ ----------- ------------ -----------
Operating Income (Loss) 177,057 3,882 - 4,577 185,516 - 185,516
------------ ----------- ------------ ------------ ----------- ------------ -----------
OTHER INCOME (EXPENSE):
Unremitted Earnings/(Loss) of
Subsidiary 6,775 1,179 1,178 - 9,132 (9,132) -
Dividends from Subsidiaries - - - - - - -
Interest - Intercompany - - - - - - -
Other Income 339 11 3 26 379 - 379
Interest on Long-Term Debt - 260 260 (2,258) (1,738) - (1,738)
Interest - Intercompany (4,792) - - - (4,792) - (4,792)
Other Interest - - 2 12 14 - 14
------------ ----------- ------------ ------------ ----------- ------------ -----------
2,322 1,450 1,443 (2,220) 2,995 (9,132) (6,137)
------------ ----------- ------------ ------------ ----------- ------------ -----------
Income (Loss) Before
Income Taxes and
Minority Interest in
Foreign Subsidiary 179,379 5,332 1,443 2,357 188,511 (9,132) 179,379
------------ ----------- ------------ ------------ ----------- ------------ -----------
Income Taxes 70,395 - - - 70,395 - 70,395
Income/(Loss) Before
Cumulative Effect 108,984 5,332 1,443 2,357 118,116 (9,132) 108,984
------------ ----------- ------------ ------------ ----------- ------------ -----------
Cumulative Effect of
Change in Accounting - - - - - - -
------------ ----------- ------------ ------------ ----------- ------------ -----------
Net Income (Loss) Available
for Common Stock $ 108,984 $ 5,332 $ 1,443 $ 2,357 $ 118,116 $ (9,132) $ 108,984
============ =========== ============ ============ =========== ============ ===========
See Notes to Consolidated Financial Statements included in Item 8 of National
Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2003,
incorporated herein by reference.
HIGHLAND FOREST RESOURCES, INC.
CONSOLIDATING STATEMENT OF EARNINGS REINVESTED IN THE BUSINESS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2003
(THOUSANDS OF DOLLARS)
Highland
Highland Forest
EARNINGS REINVESTED IN Forest Empire St. Clair Empire State Total Before Resources, Inc.
THE BUSINESS Resources, Inc. LLC LLC Pipeline Eliminations Eliminations (Consolidated)
-------------- ----------- ------------ ------------ ----------- ------------ -------------
Balance at Beginning of Year $ 5,147 $ - $ - $ - $ 5,147 $ - $ 5,147
Earnings Reinvested in the Business
at Acquisition - - - 59,648 $ 59,648 (59,648) -
Net Income (Loss) Available
for Common Stock 108,984 5,332 1,443 2,357 118,116 (9,132) 108,984
Dividends on Common Stock and
Joint Venture Distributions (2,200) (5,700) (5,700) (11,400) (25,000) 22,800 (2,200)
------------ ----------- ------------ ------------ ----------- ------------ -----------
Balance at End of Year $ 111,931 $ (368) $ (4,257) $ 50,605 $ 157,911 $ (45,980) $ 111,931
============ =========== ============ ============ =========== ============ ===========
See Notes to Consolidated Financial Statements included in Item 8 of National
Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2003,
incorporated herein by reference.
HIGHLAND FOREST RESOURCES, INC.
CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2003
(THOUSANDS OF DOLLARS)
Highland
Highland Forest
Forest Empire St. Clair Empire State Total Before Resources, Inc.
Resources, Inc. LLC LLC Pipeline Eliminations Eliminations (Consolidated)
-------------- ----------- ------------ ------------ ----------- ------------ -------------
Net Income (Loss) Available
for Common Stock $ 108,984 $ 5,332 $ 1,443 $ 2,357 $ 118,116 $ (9,132) $ 108,984
------------ ----------- ------------ ------------ ----------- ------------ -----------
Other Comprehensive Income
(Loss), Before Tax:
Unrealized Gain (Loss) on Derivative
Financial Instruments Arising
During the Period (405) (202) (203) (405) (1,215) 810 (405)
Reclassification Adjustment for Realized
(Gain) Loss on Derivative Financial
Instruments in Net Income 630 315 315 1,149 2,409 (1,779) 630
------------ ----------- ------------ ------------ ----------- ------------ -----------
Other Comprehensive Loss,
Before Tax 225 113 112 744 1,194 (969) 225
Income Tax Benefit Related to Unrealized
Loss on Derivative Financial
Instruments Arising During the Period - - - - - - -
Reclassification Adjustment for Income Tax
Expense on Derivative Financial
Instruments Realized In Net Income - - - - - - -
------------ ----------- ------------ ------------ ----------- ------------ -----------
Income Taxes - Net - - - - - - -
------------ ----------- ------------ ------------ ----------- ------------ -----------
Other Comprehensive Income 225 113 112 744 1,194 (969) 225
------------ ----------- ------------ ------------ ----------- ------------ -----------
Comprehensive Income $ 109,209 $ 5,445 $ 1,555 $ 3,101 $ 119,310 $ (10,101) $ 109,209
============ =========== ============ ============ =========== ============ ===========
See Notes to Consolidated Financial Statements included in Item 8 of National
Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2003,
incorporated herein by reference.
HIGHLAND FOREST RESOURCES, INC.
CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2003
(THOUSANDS OF DOLLARS)
Highland
Highland Forest
Forest Empire St. Clair Empire State Total Before Resources, Inc.
Resources, Inc. LLC LLC Pipeline Eliminations Eliminations (Consolidated)
-------------- --------- ----------- ----------- ----------- ----------- --------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (Loss) $ 108,984 $ 5,332 $ 1,443 $ 2,357 $ 118,116 $ (9,132) $ 108,984
Adjustments to Reconcile Net Income
to Net Cash Provided by Operating
Activities:
Earnings of Subsidiaries, Net of
Cash Distributions 4,325 4,371 4,372 - 13,068 (13,068) -
Gain on Sale of Timber Properties (168,787) - - - (168,787) - (168,787)
Depreciation, Depletion &
Amortization 7,218 (4,688) - 11,783 14,313 - 14,313
Deferred Income Taxes 55,975 - - - 55,975 - 55,975
Other 1,253 453 (260) (289) 1,157 1,157
Change in:
Receivables and Unbilled Utility
Revenue (692) - 1 1,528 837 - 837
Accounts Receivable - Intercompany (82) (150) (150) (255) (637) 300 (337)
Materials and Supplies 747 - - - 747 - 747
Prepayments (248) - - (1,042) (1,290) - (1,290)
Accounts Payable (3,208) - - 647 (2,561) - (2,561)
Accounts Payable - Intercompany (545) (52) 150 (177) (624) (300) (924)
Other Accruals and Current Liabilities 2,111 - - 400 2,511 - 2,511
Other Assets - - - 973 973 - 973
Other Liabilities (355) 2 - (340) (693) - (693)
----------- ----------- ----------- ----------- ----------- ----------- -----------
Net Cash Provided by
Operating Activities 6,696 5,268 5,556 15,585 33,105 (22,200) 10,905
----------- ----------- ----------- ----------- ----------- ----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital Expenditures (3,201) - - (47) (3,248) - (3,248)
Investment in Subsidiaries, Net
of Cash Acquired (189,205) - - - (189,205) 8,053 (181,152)
Net Proceeds from Sale of
Timber Properties 186,014 - - - 186,014 - 186,014
Other 1,339 - - - 1,339 1,339
----------- ----------- ----------- ----------- ----------- ----------- -----------
Net Cash Used in Investing
Activities (5,053) - - (47) (5,100) 8,053 2,953
----------- ----------- ----------- ----------- ----------- ----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Change in Notes Payable - Intercompany 300 - - - 300 - 300
Reduction of Long-Term Debt - - - (7,000) (7,000) - (7,000)
Dividends and Distributions (1,900) (5,550) (5,550) (11,100) (24,100) 22,200 (1,900)
----------- ----------- ----------- ----------- ----------- ----------- -----------
Net Cash Used in Financing
Activities (1,600) (5,550) (5,550) (18,100) (30,800) 22,200 (8,600)
----------- ----------- ----------- ----------- ----------- ----------- -----------
Net Increase (Decrease) in Cash
and Temporary Cash Investments 43 (282) 6 (2,562) (2,795) 8,053 5,258
Cash and Temporary Cash Investments
at Beginning of Period 131 2,316 605 5,132 8,184 (8,053) 131
----------- ----------- ----------- ----------- ----------- ----------- -----------
Cash and Temporary Cash Investments
at End of Period $ 174 $ 2,034 $ 611 $ 2,570 $ 5,389 $ - $ 5,389
=========== =========== =========== =========== =========== =========== ===========
See Notes to Consolidated Financial Statements included in Item 8 of National
Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2003,
incorporated herein by reference.
UPSTATE ENERGY, INC.
CONSOLIDATING BALANCE SHEET
AT SEPTEMBER 30, 2003
(THOUSANDS OF DOLLARS)
Upstate Toro Toro Consolidated
Energy Partners, Partners, LP Total Before Upstate
Inc. LLC (Consolidated) Eliminations Eliminations Energy, Inc.
------------- ------------- ------------- ------------- ------------- -------------
ASSETS
PROPERTY, PLANT & EQUIPMENT $ - $ - $ 15,321 $ 15,321 $ - $ 15,321
Less: Accumulated DD&A - - 190 190 - 190
------------- ------------- ------------- ------------- ------------- -------------
- - 15,131 15,131 - 15,131
------------- ------------- ------------- ------------- ------------- -------------
CURRENT ASSETS:
Cash and Temporary Cash Investments 307 158 2,542 3,007 - 3,007
Notes Receivable - Intercompany 48,000 - - 48,000 (48,000) -
Accounts Receivable 2 208 830 1,040 - 1,040
Accounts Receivable - Intercompany 47 - 179 226 (47) 179
Fair Value of Derivative
Financial Instruments - - 1,155 1,155 - 1,155
Prepayments - - - - - -
------------- ------------- ------------- ------------- ------------- -------------
48,356 366 4,706 53,428 (48,047) 5,381
------------- ------------- ------------- ------------- ------------- -------------
OTHER ASSETS:
Investment in Associated Companies 2,591 49,774 - 52,365 (52,365) -
Intangible Assets - - 31,523 31,523 - 31,523
Other Assets - - - - - -
------------- ------------- ------------- ------------- ------------- -------------
2,591 49,774 31,523 83,888 (52,365) 31,523
------------- ------------- ------------- ------------- ------------- -------------
TOTAL ASSETS $ 50,947 $ 50,140 $ 51,360 $ 152,447 $ (100,412) $ 52,035
============= ============= ============= ============= ============= =============
CAPITALIZATION & LIABILITIES
CAPITALIZATION:
Common Stock 1 - - 1 - 1
Paid - in - Capital 6,800 - 47,822 54,622 (47,822) 6,800
Earnings Reinvested in the Business (5,791) 768 1,118 (3,905) (1,886) (5,791)
------------- ------------- ------------- ------------- ------------- -------------
Total Common Shareholder
Equity Before Items of Other
Comprehensive Income 1,010 768 48,940 50,718 (49,708) 1,010
Accumulated Other
Comprehensive Income 1,335 1,322 1,335 3,992 (2,657) 1,335
------------- ------------- ------------- ------------- ------------- -------------
Total Comprehensive Shareholders' Equity 2,345 2,090 50,275 54,710 (52,365) 2,345
Notes Payable-Intercompany - - - - - -
------------- ------------- ------------- ------------- ------------- -------------
Total Capitalization 2,345 2,090 50,275 54,710 (52,365) 2,345
------------- ------------- ------------- ------------- ------------- -------------
CURRENT AND ACCRUED LIABILITIES:
Accounts Payable - - 233 233 - 233
Notes Payable - Intercompany 48,300 48,000 - 96,300 (48,000) 48,300
Accounts Payable - Intercompany 149 50 - 199 (47) 152
Other Accruals and Current
Liabilities (8) - - (8) - (8)
------------- ------------- ------------- ------------- ------------- -------------
48,441 48,050 233 96,724 (48,047) 48,677
------------- ------------- ------------- ------------- ------------- -------------
DEFERRED CREDITS:
Accumulated Deferred Income Taxes 161 - - 161 - 161
Other Deferred Credits - - 852 852 - 852
------------- ------------- ------------- ------------- ------------- -------------
161 - 852 1,013 - 1,013
------------- ------------- ------------- ------------- ------------- -------------
TOTAL CAPITALIZATION & LIABILITIES $ 50,947 $ 50,140 $ 51,360 $ 152,447 $ (100,412) $ 52,035
============= ============= ============= ============= ============= =============
See Notes to Consolidated Financial Statements included in Item 8 of National
Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2003,
incorporated herein by reference.
UPSTATE ENERGY, INC.
CONSOLIDATING STATEMENT OF INCOME
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2003
(THOUSANDS OF DOLLARS)
Upstate Toro Toro Consolidated
Energy Partners, Partners, LP Total Before Upstate
Inc. LLC (Consolidated) Eliminations Eliminations Energy, Inc.
------------- ------------- ------------- ------------- ------------- -------------
OPERATING REVENUE: $ 33 $ - $ 2,401 $ 2,434 $ - $ 2,434
------------- ------------- ------------- ------------- ------------- -------------
OPERATING EXPENSE:
Purchased Gas - - 630 630 - 630
Operation and Maintenance 10 139 463 612 - 612
Property, Franchise & Other Taxes - - - - - -
Depreciation, Depletion and
Amortization - - 190 190 - 190
------------- ------------- ------------- ------------- ------------- -------------
10 139 1,283 1,432 - 1,432
------------- ------------- ------------- ------------- ------------- -------------
Operating Income (Loss) 23 (139) 1,118 1,002 - 1,002
------------- ------------- ------------- ------------- ------------- -------------
OTHER INCOME (EXPENSE):
Unremitted Earnings/(Loss) of
Subsidiaries 779 1,107 - 1,886 (1,886) -
Interest - Intercompany 202 - - 202 (200) 2
Other Income - - - - - -
Interest - Intercompany (229) (200) - (429) 200 (229)
Other Interest - - - - - -
------------- ------------- ------------- ------------- ------------- -------------
752 907 - 1,659 (1,886) (227)
------------- ------------- ------------- ------------- ------------- -------------
Income (Loss) Before
Income Taxes and
Minority Interest in
Foreign Subsidiary 775 768 1,118 2,661 (1,886) 775
------------- ------------- ------------- ------------- ------------- -------------
Income Taxes 314 - - 314 - 314
Income/(Loss) Before
Cumulative Effect 461 768 1,118 2,347 (1,886) 461
------------- ------------- ------------- ------------- ------------- -------------
Cumulative Effect of
Change in Accounting - - - - - -
------------- ------------- ------------- ------------- ------------- -------------
Net Income (Loss) Available
for Common Stock $ 461 $ 768 $ 1,118 $ 2,347 $ (1,886) $ 461
============= ============= ============= ============= ============= =============
See Notes to Consolidated Financial Statements included in Item 8 of National
Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2003,
incorporated herein by reference.
UPSTATE ENERGY, INC.
CONSOLIDATING STATEMENT OF EARNINGS REINVESTED IN THE BUSINESS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2003
(THOUSANDS OF DOLLARS)
Upstate Toro Toro Consolidated
Energy Partners, Partners, LP Total Before Upstate
EARNINGS REINVESTED IN THE BUSINESS Inc. LLC (Consolidated) Eliminations Eliminations Energy, Inc.
------------- ------------- ------------- ------------- ------------- -------------
Balance at Beginning of Year $ (6,252) $ - $ - $ (6,252) $ - $ (6,252)
Net Income (Loss) Available
for Common Stock 461 768 1,118 2,347 (1,886) 461
Dividends on Common Stock - - - - - -
------------- ------------- ------------- ------------- ------------- -------------
Balance at End of Year $ (5,791) $ 768 $ 1,118 $ (3,905) $ (1,886) $ (5,791)
============= ============= ============= ============= ============= =============
See Notes to Consolidated Financial Statements included in Item 8 of National
Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2003,
incorporated herein by reference.
UPSTATE ENERGY, INC.
CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2003
(THOUSANDS OF DOLLARS)
Upstate Toro Toro Consolidated
Energy Partners, Partners, LP Total Before Upstate
Inc. LLC (Consolidated) Eliminations Eliminations Energy, Inc.
------------- ------------- ------------- ------------- ------------- -------------
Net Income (Loss) Available
for Common Stock $ 461 $ 768 $ 1,118 $ 2,347 $ (1,886) $ 461
------------- ------------- ------------- ------------- ------------- -------------
Other Comprehensive Income,
Before Tax:
Unrealized Gain on Derivative
Financial Instruments Arising
During the Period 2,689 - 1,588 4,277 (1,588) 2,689
Reclassification Adjustment for Realized
Gain on Derivative Financial
Instruments in Net Income (842) - (253) (1,095) 253 (842)
------------- ------------- ------------- ------------- ------------- -------------
Other Comprehensive Loss,
Before Tax 1,847 - 1,335 3,182 (1,335) 1,847
Income Tax Expense Related to Unrealized
Loss on Derivative Financial
Instruments Arising During the Period 421 - - 421 - 421
Reclassification Adjustment for Income Tax
Expense on Derivative Financial
Instruments Realized In Net Income (225) - - (225) - (225)
------------- ------------- ------------- ------------- ------------- -------------
Income Taxes - Net 196 - - 196 - 196
------------- ------------- ------------- ------------- ------------- -------------
Other Comprehensive Income 1,651 - 1,335 2,986 (1,335) 1,651
------------- ------------- ------------- ------------- ------------- -------------
Comprehensive Income $ 2,112 $ 768 $ 2,453 $ 5,333 $ (3,221) $ 2,112
============= ============= ============= ============= ============= =============
See Notes to Consolidated Financial Statements included in Item 8 of National
Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2003,
incorporated herein by reference.
UPSTATE ENERGY, INC.
CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2003
(THOUSANDS OF DOLLARS)
Upstate Toro Toro Consolidated
Energy Partners, Partners, LP Total Before Upstate
Inc. LLC (Consolidated)Eliminations Eliminations Energy, Inc.
------------ ------------ ------------ ------------ ------------- ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (Loss) $ 461 $ 768 $ 1,118 $ 2,347 $ (1,886) $ 461
Adjustments to Reconcile Net Income
to Net Cash Provided by Operating
Activities:
Unremitted (Earnings)/Loss of Subsidiary (779) (1,107) - (1,886) 1,886 -
Depreciation, Depletion &
Amortization - - 190 190 - 190
Deferred Income Taxes 178 - - 178 - 178
Other - - 341 341 341
Change in:
Receivables and Unbilled Utility
Revenue 1,058 (368) 305 995 - 995
Accounts Receivable - Intercompany (80) - (179) (259) 47 (212)
Gas Stored Underground 6,770 - - 6,770 - 6,770
Prepayments - - - - - -
Accounts Payable - - (265) (265) - (265)
Accounts Payable - Intercompany 78 50 - 128 (47) 81
Other Accruals and Current Liabilities 236 - - 236 - 236
Other Assets - - (1,155) (1,155) - (1,155)
Other Liabilities (1,057) - 2,187 1,130 - 1,130
------------ ------------ ------------ ------------ ------------- ------------
Net Cash Provided by
Operating Activities 6,865 (657) 2,542 8,750 - 8,750
------------ ------------ ------------ ------------ ------------- ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital Expenditures - - - - - -
Investment in Subsidiaries, Net of
Cash Acquired (477) (47,185) - (47,662) - (47,662)
Change in Notes Receivable-Intercompany (48,000) - - (48,000) 48,000 -
Other - - - - - -
------------ ------------ ------------ ------------ ------------- ------------
Net Cash Used in Investing
Activities (48,477) (47,185) - (95,662) 48,000 (47,662)
------------ ------------ ------------ ------------ ------------- ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Change in Notes Payable - Intercompany 41,900 48,000 - 89,900 (48,000) 41,900
Change in Notes Payable to Banks and
Commercial Paper - - - - - -
Dividends Paid on Common Stock - - - - - -
------------ ------------ ------------ ------------ ------------- ------------
Net Cash Used in Financing
Activities 41,900 48,000 - 89,900 (48,000) 41,900
------------ ------------ ------------ ------------ ------------- ------------
Effect of Exchange Rates on Cash - - - - - -
------------ ------------ ------------ ------------ ------------- ------------
Net Increase (Decrease) in Cash
and Temporary Cash Investments 288 158 2,542 2,988 - 2,988
Cash and Temporary Cash Investments
at Beginning of Period 19 - - 19 - 19
------------ ------------ ------------ ------------ ------------- ------------
Cash and Temporary Cash Investments
at End of Period $ 307 $ 158 $ 2,542 $ 3,007 $ - $ 3,007
============ ============ ============ ============ ============= ============
See Notes to Consolidated Financial Statements included in Item 8 of National
Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2003,
incorporated herein by reference.
TORO PARTNERS, LP.
CONSOLIDATING BALANCE SHEET
AT SEPTEMBER 30, 2003
(THOUSANDS OF DOLLARS)
Toro Energy Toro Energy Toro Energy Toro Energy Toro Energy Toro Energy Toro Energy Toro Energy Consolidated
Toro of Michigan, of Ohio-Statewide of Ohio, of Kentucky, of Missouri, of Maryland, of Indiana, of Ohio-American Total Before Toro
Partners, LP LLC LLC LLC LLC LLC LLC LLC LLC Eliminations Eliminations Partners, LP
------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
ASSETS
PROPERTY, PLANT & EQUIPMENT $ - $ 1,915 $ 339 $ 1,659 $ 1,888 $ 2,408 $ 2,128 $ 1,091 $ 3,893 $ 15,321 $ - $ 15,321
Less: Accumulated DD&A - 32 6 28 31 40 35 18 - 190 - 190
------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
- 1,883 333 1,631 1,857 2,368 2,093 1,073 3,893 15,131 - 15,131
------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
CURRENT ASSETS:
Cash and Temporary Cash Investments 1,068 183 47 407 149 259 85 139 205 2,542 - 2,542
Accounts Receivable - 53 17 131 128 248 78 175 - 830 - 830
Accounts Receivable - Intercompany 179 - - - - - - - - 179 - 179
Fair Value of Derivative
Financial Instruments 1,155 - - - - - - - - 1,155 - 1,155
------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
2,402 236 64 538 277 507 163 314 205 4,706 - 4,706
------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
OTHER ASSETS:
Investment in Associated Companies 48,725 - - - - - - - - 48,725 (48,725) -
Intangible Assets - 2,574 - 5,025 2,121 3,732 2,274 4,419 11,378 31,523 - 31,523
------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
48,725 2,574 - 5,025 2,121 3,732 2,274 4,419 11,378 80,248 (48,725) 31,523
------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
TOTAL ASSETS $ 51,127 $ 4,693 $ 397 $ 7,194 $ 4,255 $ 6,607 $ 4,530 $ 5,806 $ 15,476 $ 100,085 $ (48,725) $ 51,360
============= ============= ============= ============= ============= ============= ============= ============= ============= ============= ============= =============
CAPITALIZATION & LIABILITIES
CAPITALIZATION:
Common Stock - - - - - - - - - - - -
Paid - in - Capital 47,822 4,594 344 6,861 4,100 6,286 4,500 5,661 15,476 95,644 (47,822) 47,822
Earnings Reinvested in the Business 1,118 78 53 309 63 273 19 108 - 2,021 (903) 1,118
------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Total Common Shareholder
Equity Before Items of Other
Comprehensive Income 48,940 4,672 397 7,170 4,163 6,559 4,519 5,769 15,476 97,665 (48,725) 48,940
Accumulated Other
Comprehensive Income 1,335 - - - - - - - - 1,335 - 1,335
------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Total Comprehensive
Shareholder's Equity 50,275 4,672 397 7,170 4,163 6,559 4,519 5,769 15,476 99,000 (48,725) 50,275
Notes Payable-Intercompany - - - - - - - - - - -
------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Total Capitalization 50,275 4,672 397 7,170 4,163 6,559 4,519 5,769 15,476 99,000 (48,725) 50,275
------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
CURRENT AND ACCRUED LIABILITIES:
Accounts Payable - 21 - 24 92 48 11 37 - 233 - 233
------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
- 21 - 24 92 48 11 37 - 233 - 233
------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
DEFERRED CREDITS:
Other Deferred Credits 852 - - - - - - - - 852 - 852
------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
852 - - - - - - - - 852 - 852
------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
TOTAL CAPITALIZATION & LIABILITIES $ 51,127 $ 4,693 $ 397 $ 7,194 $ 4,255 $ 6,607 $ 4,530 $ 5,806 $ 15,476 $ 100,085 $ (48,725) $ 51,360
============= ============= ============= ============= ============= ============= ============= ============= ============= ============= ============= =============
See Notes to Consolidated Financial Statements included in Item 8 of National
Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2003,
incorporated herein by reference.
TORO PARTNERS, LP.
CONSOLIDATING STATEMENT OF INCOME
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2003
(THOUSANDS OF DOLLARS)
Toro Energy Toro Energy Toro Energy Toro Energy Toro Energy Toro Energy Toro Energy Toro Energy Consolidated
Toro of Michigan, of Ohio-Statewide of Ohio, of Kentucky, of Missouri, of Maryland, of Indiana, of Ohio-American Total Before Toro
Partners, LP LLC LLC LLC LLC LLC LLC LLC LLC Eliminations Eliminations Partners, LP
------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
OPERATING REVENUE: $ 253 $ 194 $ 75 $ 544 $ 259 $ 538 $ 276 $ 262 $ - $ 2,401 $ - $ 2,401
------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
OPERATING EXPENSE:
Purchased Gas - 78 - 135 71 144 107 95 - 630 - 630
Operation and Maintenance 38 6 16 72 94 81 115 41 - 463 - 463
Property, Franchise & Other Taxes - -
Depreciation, Depletion and
Amortization - 32 6 28 31 40 35 18 - 190 - 190
------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
38 116 22 235 196 265 257 154 - 1,283 - 1,283
------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Operating Income (Loss) 215 78 53 309 63 273 19 108 - 1,118 - 1,118
------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
OTHER INCOME:
Unremitted Earnings/(Loss) of
Subsidiary 903 - - - - - - - - 903 (903) -
------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Net Income (Loss) Available
for Common Stock $ 1,118 $ 78 $ 53 $ 309 $ 63 $ 273 $ 19 $ 108 $ - $ 2,021 $ (903) $ 1,118
============= ============= ============= ============= ============= ============= ============= ============= ============= ============= ============= =============
See Notes to Consolidated Financial Statements included in Item 8 of National
Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2003,
incorporated herein by reference.
TORO PARTNERS, LP.
CONSOLIDATING STATEMENT OF EARNINGS REINVESTED IN THE BUSINESS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2003
(THOUSANDS OF DOLLARS)
Toro Energy Toro Energy Toro Energy Toro Energy Toro Energy Toro Energy Toro Energy Toro Energy Consolidated
EARNINGS REINVESTED IN Toro of Michigan, of Ohio-Statewide of Ohio, of Kentucky, of Missouri, of Maryland, of Indiana, of Ohio-American Total Before Toro
THE BUSINESS Partners, LP LLC LLC LLC LLC LLC LLC LLC LLC Eliminations Eliminations Partners, LP
------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Balance at Beginning of Year $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Net Income (Loss) Available
for Common Stock 1,118 78 53 309 63 273 19 108 - 2,021 (903) 1,118
Dividends on Common Stock - - - - - - - - - - - -
------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Balance at End of Year $ 1,118 $ 78 $ 53 $ 309 $ 63 $ 273 $ 19 $ 108 $ - $ 2,021 $ (903) $ 1,118
============= ============= ============= ============= ============= ============= ============= ============= ============= ============= ============= =============
See Notes to Consolidated Financial Statements included in Item 8 of National
Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2003,
incorporated herein by reference.
TORO PARTNERS, LP.
CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2003
(THOUSANDS OF DOLLARS)
Toro Energy Toro Energy Toro Energy Toro Energy Toro Energy Toro Energy Toro Energy Toro Energy Consolidated
Toro of Michigan, of Ohio-Statewide of Ohio, of Kentucky, of Missouri, of Maryland, of Indiana, of Ohio-American Total Before Toro
Partners, LP LLC LLC LLC LLC LLC LLC LLC LLC Eliminations Eliminations Partners, LP
------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Net Income (Loss) Available
for Common Stock $ 1,118 $ 78 $ 53 $ 309 $ 63 $ 273 $ 19 $ 108 $ - $ 2,021 $ (903) $ 1,118
------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Other Comprehensive Income,
Before Tax:
Unrealized Gain on Derivative
Financial Instruments Arising
During the Period 1,588 - - - - - - - - 1,588 - 1,588
Reclassification Adjustment for Realized
Gain on Derivative Financial
Instruments in Net Income (253) - - - - - - - - (253) - (253)
------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Other Comprehensive Loss,
Before Tax 1,335 - - - - - - - - 1,335 - 1,335
Income Tax Expense Related to Unrealized
Loss on Derivative Financial
Instruments Arising During the Period - - - - - - - - - - - -
Reclassification Adjustment for Income Tax
Expense on Derivative Financial
Instruments Realized In Net Income - - - - - - - - - - - -
------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Income Taxes - Net - - - - - - - - - - - -
------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Other Comprehensive Loss 1,335 - - - - - - - - 1,335 - 1,335
------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
Comprehensive Loss $ 2,453 $ 78 $ 53 $ 309 $ 63 $ 273 $ 19 $ 108 $ - $ 3,356 $ (903) $ 2,453
============= ============= ============= ============= ============= ============= ============= ============= ============= ============= ============= =============
See Notes to Consolidated Financial Statements included in Item 8 of National
Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2003,
incorporated herein by reference.
TORO PARTNERS, LP.
CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2003
(THOUSANDS OF DOLLARS)
Toro Energy Toro Energy of Toro Energy Toro Energy Toro Energy Toro Energy Toro Energy Toro Energy Consolidated
Toro of Michigan, Ohio-Statewide of Ohio, of Kentucky, of Missouri, of Maryland, of Indiana, of Ohio-American Total Before Toro
Partners, LP LLC LLC LLC LLC LLC LLC LLC LLC Eliminations Eliminations Partners, LP
------------ ------------ ------------- ------------ ------------- ------------ ------------ ------------- --------------- ------------ ------------- ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (Loss) $ 1,118 $ 78 $ 53 $ 309 $ 63 $ 273 $ 19 $ 108 $ - $ 2,021 $ (903) $ 1,118
Adjustments to Reconcile Net Income
to Net Cash Provided by Operating
Activities:
Unremitted (Earnings)/Loss of Subsidiaries (903) - - - - - - - - (903) 903 -
Depreciation, Depletion &
Amortization - 32 6 28 31 40 35 18 - 190 - 190
Other - 44 - 84 36 63 39 75 - 341 - 341
Change in:
Receivables and Unbilled Utility
Revenue 2 22 (12) 37 64 (32) 141 (77) 160 305 - 305
Accounts Receivable - Intercompany (179) - - - - - - - - (179) - (179)
Accounts Payable (2) 7 - (51) (45) (85) (149) 15 45 (265) - (265)
Other Assets (1,155) - - - - - - - - (1,155) - (1,155)
Other Liabilities 2,187 - - - - - - - - 2,187 - 2,187
------------ ------------ ------------ ------------ ------------- ------------ ------------ ------------- ------------ ------------ ------------- ------------
Net Cash Provided by
Operating Activities 1,068 183 47 407 149 259 85 139 205 2,542 - 2,542
------------ ------------ ------------ ------------ ------------- ------------ ------------ ------------- ------------ ------------ ------------- ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital Expenditures - - - - - - - - - - - -
Investment in Subsidiaries - - - - - - - - - - - -
Other - - - - - - - - - - - -
------------ ------------ ------------ ------------ ------------- ------------ ------------ ------------- ------------ ------------ ------------- ------------
Net Cash Used in Investing
Activities - - - - - - - - - - - -
------------ ------------ ------------ ------------ ------------- ------------ ------------ ------------- ------------ ------------ ------------- ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Change in Notes Payable - Intercompany - - - - - - - - - - - -
------------ ------------ ------------ ------------ ------------- ------------ ------------ ------------- ------------ ------------ ------------- ------------
Net Cash Used in Financing
Activities - - - - - - - - - - - -
------------ ------------ ------------ ------------ ------------- ------------ ------------ ------------- ------------ ------------ ------------- ------------
Net Increase (Decrease) in Cash
and Temporary Cash Investments 1,068 183 47 407 149 259 85 139 205 2,542 - 2,542
Cash and Temporary Cash Investments
at Beginning of Period - - - - - - - - - - - -
------------ ------------ ------------ ------------ ------------- ------------ ------------ ------------- ------------ ------------ ------------- ------------
Cash and Temporary Cash Investments
at End of Period $ 1,068 $ 183 $ 47 $ 407 $ 149 $ 259 $ 85 $ 139 $ 205 $ 2,542 $ - $ 2,542
============ ============ ============ ============ ============= ============ ============ ============= ============ ============ ============= ============
See Notes to Consolidated Financial Statements included in Item 8 of National
Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2003,
incorporated herein by reference.
HORIZON ENERGY DEVELOPMENT, INC. AND SUBSIDIARIES
CONSOLIDATING BALANCE SHEET
AT SEPTEMBER 30, 2003
(THOUSANDS OF DOLLARS)
Horizon Horizon
Energy Energy Sceptre Consolidated
Development, Holdings Power Total Before Horizon and
Inc. (Consolidated) Company Eliminations Eliminations Subsidiaries
------------ ------------- ------------ ------------ ------------ ------------
ASSETS
PROPERTY, PLANT & EQUIPMENT $ 10 $ 372,774 $ - $ 372,784 $ - $ 372,784
Less: Accumulated DD&A - 153,585 - 153,585 - 153,585
------------ ------------- ------------ ------------ ------------ ------------
10 219,189 - 219,199 - 219,199
------------ ------------- ------------ ------------ ------------ ------------
CURRENT ASSETS:
Cash and Temporary Cash Investments 147 18,192 - 18,339 - 18,339
Notes Receivable - Intercompany 600 - - 600 - 600
Allowance for Uncollectible Accounts - (2,068) - (2,068) - (2,068)
Accounts Receivable - Intercompany 22 - - 22 - 22
Accounts Receivable 73 7,160 - 7,233 - 7,233
Unbilled Uility Revenue - 7,289 - 7,289 - 7,289
Materials and Supplies - 3,759 - 3,759 - 3,759
Prepayments (1) 88 - 87 - 87
------------ ------------- ------------ ------------ ------------ ------------
841 34,420 - 35,261 - 35,261
------------ ------------- ------------ ------------ ------------ ------------
OTHER ASSETS:
Investment in Associated Companies 158,723 - - 158,723 (158,723) -
Goodwill - - - - - -
Other - 466 - 466 - 466
Deferred Charges 12 - - 12 - 12
------------ ------------- ------------ ------------ ------------ ------------
158,735 466 - 159,201 (158,723) 478
------------ ------------- ------------ ------------ ------------ ------------
TOTAL ASSETS $ 159,586 $ 254,075 $ - $ 413,661 $ (158,723) $ 254,938
============ ============= ============ ============ ============ ============
CAPITALIZATION & LIABILITIES
CAPITALIZATION:
Common Stock $ 5 $ 2 $ - $ 7 $ (2) $ 5
Paid - in - Capital 38,246 116,756 - 155,002 (116,756) 38,246
Capital Contribution from Horizon - - - - - -
Earnings Reinvested in the Business (23,210) 19,499 - (3,711) (19,499) (23,210)
Accumulated Other Comp.Income 21,822 22,466 - 44,288 (22,466) 21,822
------------ ------------- ------------ ------------ ------------ ------------
Total Common Stock Equity 36,863 158,723 - 195,586 (158,723) 36,863
------------ ------------- ------------ ------------ ------------ ------------
Long-Term Debt, Net of Current
Portion - 9,844 - 9,844 - 9,844
Notes Payable - Intercompany 89,770 - - 89,770 - 89,770
------------ ------------- ------------ ------------ ------------ ------------
Total Capitalization 126,633 168,567 - 295,200 (158,723) 136,477
------------ ------------- ------------ ------------ ------------ ------------
Minority Interest in Foreign
Subsidiaries - 33,281 - 33,281 - 33,281
------------ ------------- ------------ ------------ ------------ ------------
CURRENT AND ACCRUED LIABILITIES:
Notes Payable - Intercompany 29,700 - - 29,700 - 29,700
Notes Payable to Banks - - - - - -
Current Portion of Long-Term Debt - 7,397 - 7,397 - 7,397
Accounts Payable 113 20,778 - 20,891 36 20,927
Accounts Payable - Intercompany 2,729 36 - 2,765 (36) 2,729
Other Accruals and Current
Liabilities 167 806 - 973 - 973
------------ ------------- ------------ ------------ ------------ ------------
32,709 29,017 - 61,726 - 61,726
------------ ------------- ------------ ------------ ------------ ------------
DEFERRED CREDITS:
Accumulated Deferred Income Taxes (2,083) 22,595 - 20,512 - 20,512
Liab. For Deriv. Financial Instruments - - - - - -
Other Deferred Credits 2,327 615 - 2,942 - 2,942
------------ ------------- ------------ ------------ ------------ ------------
244 23,210 - 23,454 - 23,454
------------ ------------- ------------ ------------ ------------ ------------
TOTAL CAPITALIZATION & LIABILITIES $ 159,586 $ 254,075 $ - $ 413,661 $ (158,723) $ 254,938
============ ============= ============ ============ ============ ============
See Notes to Consolidated Financial Statements included in Item 8 of National
Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2003,
incorporated herein by reference.
HORIZON ENERGY DEVELOPMENT, INC. AND SUBSIDIARIES
CONSOLIDATING STATEMENT OF INCOME
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2003
(THOUSANDS OF DOLLARS)
Horizon
Energy Horizon Energy Sceptre Consolidated
Development, Holdings Power Total Before Eliminations Horizon and
Inc. (Consolidated) Company Eliminations (Dr) Cr Subsidiaries
------------ ------------- ------------ ------------ ------------ ------------
OPERATING REVENUE: $ 172 $ 113,898 $ - $ 114,070 $ - $ 114,070
------------ ------------- ------------ ------------ ------------ ------------
OPERATING EXPENSE:
Fuel Used in Heat and
Electric Generation - 61,033 - 61,033 - 61,033
Operation and Maintenance 5,426 24,247 (118) 29,555 - 29,555
Property, Franchise & Other Taxes 34 2,812 - 2,846 - 2,846
Depreciation, Depletion and
Amortization (7) 13,917 - 13,910 - 13,910
------------ ------------- ------------ ------------ ------------ ------------
5,453 102,009 (118) 107,344 - 107,344
------------ ------------- ------------ ------------ ------------ ------------
Operating Income (Loss) (5,281) 11,889 118 6,726 - 6,726
------------ ------------- ------------ ------------ ------------ ------------
OTHER INCOME (EXPENSE):
Unremitted Earnings of
Subsidiaries (1,373) - - (1,373) 1,373 -
Interest - Intercompany 9 - - 9 (1) 8
Other Income - 2,259 - 2,259 - 2,259
Interest on Long-Term Debt - (1,385) - (1,385) - (1,385)
Interest-Intercompany (5,777) (1) - (5,778) 1 (5,777)
Other Interest (443) (1,095) - (1,538) - (1,538)
------------ ------------- ------------ ------------ ------------ ------------
(7,584) (222) - (7,806) 1,373 (6,433)
------------ ------------- ------------ ------------ ------------ ------------
Income (Loss) Before
Income Taxes and
and Minority Interest in
Foreign Subsidiaries (12,865) 11,667 118 (1,080) 1,373 293
------------ ------------- ------------ ------------ ------------ ------------
Income Taxes (3,242) 4,077 41 876 - 876
Minority Interest in
Foreign Subsidiaries - (785) - (785) - (785)
------------ ------------- ------------ ------------ ------------ ------------
Income/(Loss) Before Cumulative
Effect of Change in Accounting (9,623) 6,805 77 (2,741) 1,373 (1,368)
Cumulative Effect of Change in Accounting - (8,255) - (8,255) - (8,255)
------------ ------------- ------------ ------------ ------------ ------------
Net Income (Loss) Available
for Common Stock $ (9,623) $ (1,450) $ 77 $ (10,996) $ 1,373 $ (9,623)
============ ============= ============ ============ ============ ============
See Notes to Consolidated Financial Statements included in Item 8 of National
Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2003,
incorporated herein by reference.
HORIZON ENERGY DEVELOPMENT, INC. AND SUBSIDIARIES
CONSOLIDATING STATEMENT OF EARNINGS REINVESTED IN THE BUSINESS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2003
(THOUSANDS OF DOLLARS)
Horizon
Energy Horizon Energy Sceptre Consolidated
EARNINGS REINVESTED Development, Holdings Power Total Before Eliminations Horizon and
IN THE BUSINESS Inc. (Consolidated) Company Eliminations (Dr) Cr Subsidiaries
------------ ------------- ------------ ------------ ------------ ------------
Balance at Beginning of Year $ (13,587) $ 20,949 $ (7,576) $ (214) $ (13,373) $ (13,587)
Net Income (Loss) Available
for Common Stock (9,623) (1,450) 77 (10,996) 1,373 (9,623)
Elimination of Sceptre Power Company
Accumulated Deficit due to liquidation
of Sceptre Power Company - - 7,499 7,499 (7,499) -
------------ ------------- ------------ ------------ ------------ ------------
Balance at End of Year $ (23,210) $ 19,499 $ - $ (3,711) $ (19,499) $ (23,210)
============ ============= ============ ============ ============ ============
See Notes to Consolidated Financial Statements included in Item 8 of National
Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2003,
incorporated herein by reference.
HORIZON ENERGY DEVELOPMENT, INC. AND SUBSIDIARIES
CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2003
(THOUSANDS OF DOLLARS)
Horizon
Energy Horizon Energy Sceptre Total Before Consolidated
Development, Holdings Power Eliminations Eliminations Horizon and
Inc. (Consolidated) Company & Adjustments (Dr) Cr Subsidiaries
------------ ------------- ------------ ------------ ------------ ------------
Net Income (Loss) Available for
Common Stock $ (9,623) $ (1,450) $ 77 $ (10,996) $ 1,373 $ (9,623)
------------ ------------- ------------ ------------ ------------ ------------
Other Comprehensive Income (Loss) :
Foreign Currency Translation
Adjustment 17,651 17,651 - 35,302 (17,651) 17,651
------------ ------------- ------------ ------------ ------------ ------------
Other Comprehensive Income (Loss) 17,651 17,651 - 35,302 (17,651) 17,651
------------ ------------- ------------ ------------ ------------ ------------
Comprehensive Income (Loss) $ 8,028 $ 16,201 $ 77 $ 24,306 $ (16,278) $ 8,028
============ ============= ============ ============ ============ ============
See Notes to Consolidated Financial Statements included in Item 8 of National
Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2003,
incorporated herein by reference.
HORIZON ENERGY DEVELOPMENT, INC. AND SUBSIDIARIES
CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2003
(THOUSANDS OF DOLLARS)
Horizon
Energy Horizon Energy Sceptre Total Before Consolidated
Development, Holdings Power Eliminations Eliminations Horizon and
Inc. (Consolidated) Company & Adjustments & Adjustments Subsidiaries
------------ -------------------------- ------------ ------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (Loss) $ (9,623) $ (1,450) $ 77 $ (10,996) $ 1,373 $ (9,623)
Adjustments to Reconcile Net Income
to Net Cash Provided by Operating
Activities:
Unremitted Earnings of Subsidiaries 1,373 - - 1,373 (1,373) -
Depreciation, Depletion &
Amortization (7) 13,917 - 13,910 - 13,910
Deferred Income Taxes (1,001) 4,115 41 3,155 - 3,155
Minority Interest in Foreign
Subsidiaries - 785 - 785 - 785
Cumulative Effect of Change in
in Accting Principle - 8,255 - 8,255 - 8,255
Other - - - - - -
Change in:
Accounts Receivable - Intercompany 970 - - 970 (991) (21)
Receivables and Unbilled Utility
Revenue (73) 1,076 - 1,003 - 1,003
Material and Supplies - (8) - (8) - (8)
Prepayments 1 (28) - (27) - (27)
Accounts Payable 1 6 - 7 217 224
Accounts Payable - Intercompany 440 (774) - (334) 774 440
Other Accruals and Current
Liabilities 2,181 917 (118) 2,980 - 2,980
Other Assets 11 (8) - 3 - 3
Other Liabilities 1,022 119 (11) 1,130 - 1,130
------------ ------------ ------------ ------------ ------------ ------------
Net Cash Provided by (Used in)
Operations (4,705) 26,922 (11) 22,206 - 22,206
------------ ------------ ------------ ------------ ------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital Expenditures (10) (2,489) - (2,499) - (2,499)
Investment in Associated Companies - - - - - -
Change in Notes Receivable - Intercompany (230) - - (230) - (230)
Other - 1,310 - 1,310 - 1,310
------------ ------------ ------------ ------------ ------------ ------------
Net Cash Provided by (Used In)
Investing Activities (240) (1,179) - (1,419) - (1,419)
------------ ------------ ------------ ------------ ------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Change in Notes Payable to Banks - (2,255) - (2,255) - (2,255)
Change in Notes Payable - Intercompany 5,070 (170) - 4,900 - 4,900
Return of Capital Contribution - - - - - -
Net Proceeds from Issuance of
Long-Term Debt - - - - - -
Reduction of Long-Term Debt - (18,165) - (18,165) - (18,165)
------------ ------------ ------------ ------------ ------------ ------------
Net Cash Provided by (Used in)
Financing Activities 5,070 (20,590) - (15,520) - (15,520)
------------ ------------ ------------ ------------ ------------ ------------
Effect of Exchange Rates on Cash - 3,279 - 3,279 - 3,279
------------ ------------ ------------ ------------ ------------ ------------
Net Increase (Decrease) in Cash
and Temporary Cash Investments 125 8,432 (11) 8,546 - 8,546
Cash and Temporary Cash Investments
of Beginning of Period 22 9,760 11 9,793 - 9,793
------------ ------------ ------------ ------------ ------------ ------------
Cash and Temporary Cash
Investments at End of Year $ 147 $ 18,192 $ - $ 18,339 $ - $ 18,339
============ ============ ============ ============ ============ ============
HORIZON ENERGY HOLDINGS
CONSOLIDATING BALANCE SHEET
AT SEPTEMBER 30, 2003
(THOUSANDS OF DOLLARS)
Consolidated
Horizon Horizon Energy Horizon
Energy Development B.V Total Before Energy Holdings
Holdings (Consolidated) Eliminations Eliminations and Subsidiaries
----------- --------------- ------------ ------------ ----------------
ASSETS
PROPERTY, PLANT & EQUIPMENT $ - $ 372,774 $ 372,774 $ - $ 372,774
Less: Accumulated DD&A - 153,585 153,585 - 153,585
----------- ------------ ----------- ----------- -----------
- 219,189 219,189 - 219,189
----------- ------------ ----------- ----------- -----------
CURRENT ASSETS:
Cash and Temporary Cash Investments - 18,192 18,192 - 18,192
Notes Receivable - Intercompany - - - - -
Allowance for Uncollectible Accounts - (2,068) (2,068) - (2,068)
Accounts Receivable - Intercompany - - - - -
Accounts Receivable - 7,160 7,160 - 7,160
Unbilled Uility Revenue - 7,289 7,289 - 7,289
Materials and Supplies - 3,759 3,759 - 3,759
Prepayments - 88 88 - 88
----------- ----------- ---------- ----------- ----------
- 34,420 34,420 - 34,420
----------- ------------ ----------- ----------- -----------
OTHER ASSETS:
Investment in Assoc. Companies 158,722 - 158,722 (158,722) -
Goodwill - - - - -
Other Assets - 466 466 - 466
Notes Receivable - Intercompany - - - - -
Deferred Charges - - - - -
----------- ------------ ----------- ----------- -----------
158,722 466 159,188 (158,722) 466
----------- ------------ ----------- ----------- -----------
TOTAL ASSETS $ 158,722 $ 254,075 $ 412,797 $ (158,722) $ 254,075
=========== ============ =========== =========== ===========
CAPITALIZATION & LIABILITIES
CAPITALIZATION:
Common Stock $ 2 $ 29 $ 31 $ (29) $ 2
Paid - in - Capital 116,756 111,621 228,377 (111,621) 116,756
Earnings Reinvest. in the Business 19,499 25,249 44,748 (25,249) 19,499
Accumulated Other
Comprehensive Income 22,466 21,824 44,290 (21,824) 22,466
----------- ------------ ----------- ----------- -----------
Total Common Stock Equity 158,723 158,723 317,446 (158,723) 158,723
----------- ------------ ----------- ----------- -----------
Long-Term Debt, Net of Current
Portion - 9,844 9,844 - 9,844
Notes Payable - Intercompany - - - - -
----------- ------------ ----------- ----------- -----------
Total Capitalization 158,723 168,567 327,290 (158,723) 168,567
----------- ------------ ----------- ----------- -----------
Minority Interest in Foreign
Subsidiaries - 33,281 33,281 - 33,281
----------- ------------ ----------- ----------- -----------
CURRENT AND ACCRUED LIABILITIES:
Notes Payable - Intercompany - - - - -
Notes Payable to Banks - - - - -
Current Portion of Long-Term Debt - 7,397 7,397 - 7,397
Accounts Payable - 20,778 20,778 - 20,778
Accounts Payable - Intercompany - 36 36 - 36
Other Accruals and Current
Liabilities - 806 806 - 806
----------- ------------ ----------- ----------- -----------
- 29,017 29,017 - 29,017
----------- ------------ ----------- ----------- -----------
DEFERRED CREDITS:
Accumulated Deferred Income Taxes - 22,595 22,595 - 22,595
Liab. For Deriv. Financial Instruments - - - - -
Other Deferred Credits - 615 615 - 615
----------- ------------ ----------- ----------- -----------
- 23,210 23,210 - 23,210
----------- ------------ ----------- ----------- -----------
TOTAL CAPITALIZATION
& LIABILITIES $ 158,723 $ 254,075 $ 412,798 $ (158,723) $ 254,075
=========== ============ =========== =========== ===========
See Notes to Consolidated Financial Statements included in Item 8 of National
Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2003,
incorporated herein by reference.
HORIZON ENERGY HOLDINGS
CONSOLIDATING STATEMENT OF INCOME
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2003
(THOUSANDS OF DOLLARS)
Consolidated
Horizon Horizon Energy Horizon Energy
Energy Development B.V Total Before Eliminations Holdings and
Holdings (Consolidated) Eliminations (Dr) Cr Subsidiaries
----------- --------------- ------------ ------------ --------------
OPERATING REVENUE: $ - $ 113,898 $ 113,898 $ - $ 113,898
----------- ------------ ----------- ----------- -----------
OPERATING EXPENSE:
Fuel Used in Heat and
Electric Generation - 61,033 61,033 - 61,033
Operation - 24,247 24,247 - 24,247
Property, Franchise & Other Taxes - 2,812 2,812 - 2,812
Depreciation, Depletion and
Amortization - 13,917 13,917 - 13,917
----------- ------------ ----------- ----------- -----------
- 102,009 102,009 - 102,009
----------- ------------ ----------- ----------- -----------
Operating Income (Loss) - 11,889 11,889 - 11,889
----------- ------------ ----------- ----------- -----------
OTHER INCOME (EXPENSE):
Unremitted Earnings of
Subsidiaries (1,450) - (1,450) 1,450 -
Interest - Intercompany - - - - -
Other Income - 2,259 2,259 - 2,259
Interest on Long-Term Debt - (1,385) (1,385) - (1,385)
Interest-Intercompany - (1) (1) - (1)
Other Interest - (1,095) (1,095) - (1,095)
----------- ------------ ----------- ----------- -----------
(1,450) (222) (1,672) 1,450 (222)
----------- ------------ ----------- ----------- -----------
Income (Loss) Before
Income Taxes and
and Minority Interest in
Foreign Subsidiaries (1,450) 11,667 10,217 1,450 11,667
----------- ------------ ----------- ----------- -----------
Income Taxes - 4,077 4,077 - 4,077
Minority Interest in
Foreign Subsidiaries - (785) (785) - (785)
----------- ------------ ----------- ----------- -----------
Income/(Loss) Before Cumulative
Effect of Change in Accounting (1,450) 6,805 5,355 1,450 6,805
Cumulative Effect of Change
in Accounting - (8,255) (8,255) - (8,255)
----------- ------------ ----------- ----------- -----------
Net Income (Loss) Available
for Common Stock $ (1,450) $ (1,450) $ (2,900) $ 1,450 $ (1,450)
=========== ============ =========== =========== ===========
See Notes to Consolidated Financial Statements included in Item 8 of National
Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2003,
incorporated herein by reference.
HORIZON ENERGY HOLDINGS
CONSOLIDATING STATEMENT OF EARNINGS REINVESTED IN THE BUSINESS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2003
(THOUSANDS OF DOLLARS)
Consolidated
Horizon Horizon Energy Horizon Energy
EARNINGS REINVESTED Energy Development B.V Total Before Eliminations Holdings and
IN THE BUSINESS Holdings (Consolidated) Eliminations (Dr) Cr Subsidiaries
----------- --------------- ------------ ------------ -------------
Balance at Beginning of Year $ 20,949 $ 26,699 $ 47,648 $ (26,699) $ 20,949
Net Income (Loss) Available
for Common Stock (1,450) (1,450) (2,900) 1,450 (1,450)
----------- ------------ ----------- ----------- -----------
Balance at End of Year $ 19,499 $ 25,249 $ 44,748 $ (25,249) $ 19,499
=========== ============ =========== =========== ===========
See Notes to Consolidated Financial Statements included in Item 8 of National
Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2003,
incorporated herein by reference.
HORIZON ENERGY HOLDINGS
CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2003
(THOUSANDS OF DOLLARS)
Consolidated
Horizon Horizon Energy Total Before Horizon Energy
Energy Development B.V Eliminations Eliminations Holdings and
Holdings (Consolidated) & Adjustments (Dr) Cr Subsidiaries
----------- --------------- ------------- ------------ --------------
Net Income (Loss) Available for
Common Stock $ (1,450) $ (1,450) $ (2,900) $ 1,450 $ (1,450)
----------- ------------ ----------- ----------- -----------
Other Comprehensive Income (Loss) :
Foreign Currency Translation
Adjustment 17,651 17,651 35,302 (17,651) 17,651
----------- ------------ ----------- ----------- -----------
Other Comprehensive Income (Loss) 17,651 17,651 35,302 (17,651) 17,651
----------- ------------ ----------- ----------- -----------
Comprehensive Income (Loss) $ 16,201 $ 16,201 $ 32,402 $ (16,201) $ 16,201
=========== ============ =========== =========== ===========
See Notes to Consolidated Financial Statements included in Item 8 of National
Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2003,
incorporated herein by reference.
HORIZON ENERGY HOLDINGS
CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2003
(THOUSANDS OF DOLLARS)
Consolidated
Horizon Horizon Energy Total Before Horizon Energy
Energy Development BV Eliminations Holdings and
Holdings (Consolidated) & Adjustments Eliminations Subsidiaries
---------- -------------- ------------- ------------ --------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (Loss) $ (1,450) $ (1,450) $ (2,900) $ 1,450 $ (1,450)
Adjustments to Reconcile Net Income
to Net Cash Provided by Operating
Activities:
Unremitted Earnings of Subs. 1,450 - 1,450 (1,450) -
Depreciation, Depletion &
Amortization - 13,917 13,917 - 13,917
Deferred Income Taxes - 4,115 4,115 - 4,115
Minority Interest in Foreign
Subsidiaries - 785 785 - 785
Cumulative Effect of Change
in Accounting - 8,255 8,255 - 8,255
Other - - - - -
Change in:
Accounts Receivable - Intercompany - - - - -
Receivables and Unbilled Utility
Revenue - 1,076 1,076 - 1,076
Material and Supplies - (8) (8) - (8)
Prepayments - (28) (28) - (28)
Accounts Payable - 6 6 - 6
Accounts Payable - Intercompany - (774) (774) - (774)
Other Accruals and Current
Liabilities - 917 917 - 917
Other Assets - (8) (8) - (8)
Other Liabilities - 119 119 - 119
----------- ----------- ----------- ----------- -----------
Net Cash Provided by (Used in)
Operations - 26,922 26,922 - 26,922
----------- ----------- ----------- ----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital Expenditures - (2,489) (2,489) - (2,489)
Investment in Associated Companies - - - - -
Other - 1,310 1,310 - 1,310
----------- ----------- ----------- ----------- -----------
Net Cash Provided by (Used In)
Investing Activities - (1,179) (1,179) - (1,179)
----------- ----------- ----------- ----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Change in Notes Payable to Banks - (2,255) (2,255) - (2,255)
Change in Notes Payable - Intercompany - (170) (170) - (170)
Net Proceeds from Issuance of
Long-Term Debt - - - - -
Reduction of Long-Term Debt - (18,165) (18,165) - (18,165)
----------- ----------- ----------- ----------- -----------
Net Cash Provided by (Used in)
Financing Activities - (20,590) (20,590) - (20,590)
----------- ----------- ----------- ----------- -----------
Effect of Exchange Rates on Cash - 3,279 3,279 - 3,279
----------- ----------- ----------- ----------- -----------
Net Increase (Decrease) in Cash
and Temporary Cash Investments - 8,432 8,432 - 8,432
Cash and Temporary Cash Investments
of Beginning of Period - 9,760 9,760 - 9,760
----------- ----------- ----------- ----------- -----------
Cash and Temporary Cash
Investments at End of Year $ - $ 18,192 $ 18,192 $ - $ 18,192
=========== =========== =========== =========== ===========
See Notes to Consolidated Financial Statements included in Item 8 of National
Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2003,
incorporated herein by reference.
HORIZON ENERGY DEVELOPMENT, B.V.
CONSOLIDATING BALANCE SHEET
AT SEPTEMBER 30, 2003
(THOUSANDS OF DOLLARS)
United
Energy, a.s. Consolidated
(UE) Horizon Energy Total Before Horizon B.V.
Horizon B.V. (Consolidated) Development, s.r.o. Eliminations Eliminations and Subsidiaries
------------ ------------ ------------------- ------------ ------------ ----------------
ASSETS
PROPERTY, PLANT & EQUIPMENT $ - $ 372,560 $ 214 $ 372,774 $ - $ 372,774
Less: Accumulated DD&A - 153,392 193 153,585 - 153,585
------------ ------------ -------------- ------------ ----------- ------------
- 219,168 21 219,189 - 219,189
------------ ------------ -------------- ------------ ----------- ------------
CURRENT ASSETS:
Cash and Temporary Cash Investments 586 16,792 814 18,192 - 18,192
Notes Receivable - Intercompany - - - - - -
Allowance for Uncollectible Accounts - (2,068) - (2,068) - (2,068)
Accounts Receivable - Intercompany - - 178 178 (178) -
Accounts Receivable - 7,093 67 7,160 - 7,160
Unbilled Uility Revenue - 7,289 - 7,289 - 7,289
Materials and Supplies - 3,759 - 3,759 - 3,759
Prepayments - 84 4 88 - 88
------------ ------------ -------------- ------------ ----------- ------------
586 32,949 1,063 34,598 (178) 34,420
------------ ------------ -------------- ------------ ----------- ------------
OTHER ASSETS:
Investment in Associated Companies 158,222 - - 158,222 (158,222) -
Goodwill - - - - - -
Other Assets (40) 311 195 466 - 466
Notes Receivable - Intercompany - - - - - -
Deferred Charges - - - - - -
------------ ------------ -------------- ------------ ----------- ------------
158,182 311 195 158,688 (158,222) 466
------------ ------------ -------------- ------------ ----------- ------------
TOTAL ASSETS $ 158,768 $ 252,428 $ 1,279 $ 412,475 $ (158,400) $ 254,075
============ ============ ============== ============ =========== ============
CAPITALIZATION & LIABILITIES
CAPITALIZATION:
Common Stock $ 29 $ 59,770 $ (1,246) $ 58,553 $ (58,524) $ 29
Paid - in - Capital 111,621 50,822 1,487 163,930 (52,309) 111,621
Earnings Reinvested in the Business 25,249 24,626 574 50,449 (25,200) 25,249
Accumulated Other Comp. Income 21,824 21,761 428 44,013 (22,189) 21,824
------------ ------------ -------------- ------------ ----------- ------------
Total Common Stock Equity 158,723 156,979 1,243 316,945 (158,222) 158,723
------------ ------------ -------------- ------------ ----------- ------------
Long-Term Debt, Net of Current
Portion - 9,844 - 9,844 - 9,844
Notes Payable - Intercompany - - - - - -
------------ ------------ -------------- ------------ ----------- ------------
Total Capitalization 158,723 166,823 1,243 326,789 (158,222) 168,567
------------ ------------ -------------- ------------ ----------- ------------
Minority Interest in Foreign
Subsidiaries - 33,281 - 33,281 - 33,281
------------ ------------ -------------- ------------ ----------- ------------
CURRENT AND ACCRUED LIABILITIES:
Notes Payable - Intercompany - - - - - -
Notes Payable to Banks - - - - - -
Current Portion of Long-Term Debt - 7,397 - 7,397 - 7,397
Accounts Payable - 20,905 51 20,956 (178) 20,778
Accounts Payable - Intercompany 36 - - 36 - 36
Other Accruals and Current
Liabilities 9 812 (15) 806 - 806
------------ ------------ -------------- ------------ ----------- ------------
45 29,114 36 29,195 (178) 29,017
------------ ------------ -------------- ------------ ----------- ------------
DEFERRED CREDITS:
Accumulated Deferred Income Taxes - 22,595 - 22,595 - 22,595
Liab. For Deriv. Financial Instruments - - - - - -
Other Deferred Credits - 615 - 615 - 615
------------ ------------ -------------- ------------ ----------- ------------
- 23,210 - 23,210 - 23,210
------------ ------------ -------------- ------------ ----------- ------------
TOTAL CAPITALIZATION & LIABILITIES $ 158,768 $ 252,428 $ 1,279 $ 412,475 $ (158,400) $ 254,075
============ ============ ============== ============ =========== ============
See Notes to Consolidated Financial Statements included in Item 8 of National
Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2003,
incorporated herein by reference.
HORIZON ENERGY DEVELOPMENT, B.V.
CONSOLIDATING STATEMENT OF INCOME
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2003
(THOUSANDS OF DOLLARS)
Consolidated
UE Horizon Energy Total Before Eliminations Horizon B.V.
Horizon B.V. (Consolidated) Development, s.r.o. Eliminations (Dr) Cr and Subsidiaries
------------ ------------ ------------------- ------------ ----------- ----------------
OPERATING REVENUE: $ - $ 113,898 $ 1,130 $ 115,028 $ (1,130) $ 113,898
------------ ------------ -------------- ------------ ----------- ------------
OPERATING EXPENSE:
Fuel Used in Heat and
Electric Generation - 61,033 - 61,033 - 61,033
Operation and Maintenance 88 24,339 949 25,376 (1,129) 24,247
Property, Franchise & Other Taxes - 2,674 138 2,812 - 2,812
Depreciation, Depletion and
Amortization - 13,907 10 13,917 - 13,917
------------ ------------ -------------- ------------ ----------- ------------
88 101,953 1,097 103,138 (1,129) 102,009
------------ ------------ -------------- ------------ ----------- ------------
Operating Income (Loss) (88) 11,945 33 11,890 (1) 11,889
------------ ------------ -------------- ------------ ----------- ------------
OTHER INCOME (EXPENSE):
Unremitted Earnings of
Subsidiaries 6,892 - - 6,892 (6,892) -
Other Income 3 2,222 34 2,259 - 2,259
Interest on Long-Term Debt - (1,385) - (1,385) - (1,385)
Interest - Intercompany (1) - - (1) - (1)
Other Interest (1) (1,094) - (1,095) - (1,095)
------------ ------------ -------------- ------------ ----------- ------------
6,893 (257) 34 6,670 (6,892) (222)
------------ ------------ -------------- ------------ ----------- ------------
Income (Loss) Before
Income Taxes and
and Minority Interest in
Foreign Subsidiaries 6,805 11,688 67 18,560 (6,893) 11,667
------------ ------------ -------------- ------------ ----------- ------------
Income Taxes - 4,019 58 4,077 - 4,077
Minority Interest in
Foreign Subsidiaries - (785) - (785) - (785)
------------ ------------ -------------- ------------ ----------- ------------
Income (Loss) Before Cumulative Effect
of Change in Accounting Principle 6,805 6,884 9 13,698 (6,893) 6,805
Cumulative Effect of Change in
Accounting Principle (8,255) (7,922) (333) (16,510) 8,255 (8,255)
------------ ------------ -------------- ------------ ----------- ------------
Net Income (Loss) Available
for Common Stock $ (1,450) $ (1,038) $ (324) $ (2,812) $ 1,362 $ (1,450)
============ ============ ============== ============ =========== ============
See Notes to Consolidated Financial Statements included in Item 8 of National
Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2003,
incorporated herein by reference.
HORIZON ENERGY DEVELOPMENT, B.V.
CONSOLIDATING STATEMENT OF EARNINGS REINVESTED IN THE BUSINESS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2003
(THOUSANDS OF DOLLARS)
Consolidated
EARNINGS REINVESTED UE Horizon Energy Total Before Eliminations Horizon B.V.
IN THE BUSINESS Horizon B.V. (Consolidated) Development, s.r.o. Eliminations (Dr) Cr and Subsidiaries
------------ ------------- ------------------- ------------ ----------- ----------------
Balance at Beginning of Year $ 26,699 $ 25,664 $ 898 $ 53,261 $ (26,562) $ 26,699
Net Income (Loss) Available
for Common Stock (1,450) (1,038) (324) (2,812) 1,362 (1,450)
------------ ------------ -------------- ------------ ----------- ------------
Balance at End of Year $ 25,249 $ 24,626 $ 574 $ 50,449 $ (25,200) $ 25,249
============ ============ ============== ============ =========== ============
See Notes to Consolidated Financial Statements included in Item 8 of National
Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2003,
incorporated herein by reference.
HORIZON ENERGY DEVELOPMENT, B.V.
CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2003
(THOUSANDS OF DOLLARS)
Consolidated
UE Horizon Energy Total Before Eliminations Horizon B.V.
Horizon B.V. (Consolidated) Development, s.r.o. Eliminations (Dr) Cr and Subsidiaries
------------ -------------- ------------------- ------------ ------------ ----------------
Net Income (Loss) Available for
Common Stock $ (1,450) $ (1,038) $ (324) $ (2,812) $ 1,362 $ (1,450)
------------ ------------ -------------- ------------ ----------- ------------
Other Comprehensive Income (Loss):
Foreign Currency Translation
Adjustment 17,651 17,443 210 35,304 (17,653) 17,651
------------ ------------ -------------- ------------ ----------- ------------
Other Comprehensive Income (Loss) 17,651 17,443 210 35,304 (17,653) 17,651
------------ ------------ -------------- ------------ ----------- ------------
Comprehensive Income (Loss) $ 16,201 $ 16,405 $ (114) $ 32,492 $ (16,291) $ 16,201
============ ============ ============== ============ =========== ============
See Notes to Consolidated Financial Statements included in Item 8 of National
Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2003,
incorporated herein by reference.
HORIZON ENERGY DEVELOPMENT, B.V.
CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2003
(THOUSANDS OF DOLLARS)
Consolidated
UE Horizon Energy Total Before Horizon B.V.
Horizon B.V. (Consolidated) Development, s.r.o. Eliminations Eliminations and Subsidiaries
------------ -------------- ------------------- ------------ ------------ ----------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (Loss) $ (1,450) $ (1,038) $ (324) $ (2,812) $ 1,362 $ (1,450)
Adjustments to Reconcile Net Income
to Net Cash Provided by Operating
Activities:
Unremitted Earnings of Subsidiaries 1,362 - - 1,362 (1,362) -
Depreciation, Depletion &
Amortization - 13,907 10 13,917 - 13,917
Deferred Income Taxes - 4,118 (3) 4,115 - 4,115
Minority Interest in Foreign
Subsidiaries - 785 - 785 - 785
Cumulative Effect of Change in Accounting - 7,921 334 8,255 - 8,255
Other - - - - - -
Change in:
Accounts Receivable - Intercompany - - (44) (44) 44 -
Receivables and Unbilled Utility
Revenue - 1,070 6 1,076 - 1,076
Material and Supplies - (8) - (8) - (8)
Prepayments - (27) (1) (28) - (28)
Accounts Payable - 36 (4) 32 (26) 6
Accounts Payable - Intercompany (774) - - (774) - (774)
Other Accruals and Current
Liabilities - 915 2 917 - 917
Other Assets - (8) - (8) - (8)
Other Liabilities - 119 - 119 - 119
------------ ------------ ------------ ------------ ------------ ------------
Net Cash Provided by (Used in)
Operations (862) 27,790 (24) 26,904 18 26,922
------------ ------------ ------------ ------------ ------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital Expenditures - (2,471) (18) (2,489) - (2,489)
Change in Notes
Receivable - Intercompany 18 - - 18 (18) -
Investment in Associated Companies - - - - - -
Other 1,538 1,279 31 2,848 (1,538) 1,310
------------ ------------ ------------ ------------ ------------ ------------
Net Cash Provided by (Used In)
Investing Activities 1,556 (1,192) 13 377 (1,556) (1,179)
------------ ------------ ------------ ------------ ------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Change in Notes Payable to Banks - (2,255) - (2,255) - (2,255)
Change in Notes Payable - Intercompany (170) - - (170) - (170)
Return of Capital - - (1,538) (1,538) 1,538 -
Net Proceeds from Issuance of
Long-Term Debt - - - - - -
Reduction of Long-Term Debt - (18,165) - (18,165) - (18,165)
------------ ------------ ------------ ------------ ------------ ------------
Net Cash Provided by (Used in)
Financing Activities (170) (20,420) (1,538) (22,128) 1,538 (20,590)
------------ ------------ ------------ ------------ ------------ ------------
Effect of Exchange Rates on Cash - 3,054 225 3,279 - 3,279
------------ ------------ ------------ ------------ ------------ ------------
Net Increase (Decrease) in Cash
and Temporary Cash Investments 524 9,232 (1,324) 8,432 - 8,432
Cash and Temporary Cash Investments
of Beginning of Period 62 7,560 2,138 9,760 - 9,760
------------ ------------ ------------ ------------ ------------ ------------
Cash and Temporary Cash
Investments at End of Year $ 586 $ 16,792 $ 814 $ 18,192 $ - $ 18,192
============ ============ ============ ============ ============ ============
See Notes to Consolidated Financial Statements included in Item 8 of National
Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2003,
incorporated herein by reference.
UNITED ENERGY, a.s.
CONSOLIDATING BALANCE SHEET
AT SEPTEMBER 30, 2003
(THOUSANDS OF DOLLARS)
Consolidated
Teplarna Total Before UE and
UE Liberec ENOP Eliminations Eliminations Subsidiaries
----------- ------------ ----------- ----------- ------------ -----------
ASSETS
PROPERTY, PLANT & EQUIPMENT $ 349,622 $ 22,895 $ 43 $ 372,560 $ - $ 372,560
Less: Accumulated DD&A 144,675 8,696 21 153,392 - 153,392
----------- ------------ ----------- ----------- ------------ -----------
204,947 14,199 22 219,168 - 219,168
----------- ------------ ----------- ----------- ------------ -----------
CURRENT ASSETS:
Cash and Temporary Cash Investments 14,197 2,224 371 16,792 - 16,792
Notes Receivable - Intercompany - - - - - -
Allow. for Uncollectible Accounts (1,295) (768) (5) (2,068) - (2,068)
Accounts Receivable - Intercompany - - - - - -
Accounts Receivable 4,657 2,431 5 7,093 - 7,093
Unbilled Uility Revenue 6,947 342 - 7,289 - 7,289
Materials and Supplies 3,586 173 - 3,759 - 3,759
Prepayments 71 13 - 84 - 84
----------- ------------ ----------- ----------- ------------ -----------
28,163 4,415 371 32,949 - 32,949
----------- ------------ ----------- ----------- ------------ -----------
OTHER ASSETS:
Investment in Assoc. Companies 12,054 - - 12,054 (12,054) -
Goodwill - - - - - -
Other Assets 279 32 - 311 - 311
Notes Receivable - Intercompany - - - - - -
Deferred Charges - - - - - -
----------- ------------ ----------- ----------- ------------ -----------
12,333 32 - 12,365 (12,054) 311
----------- ------------ ----------- ----------- ------------ -----------
TOTAL ASSETS $ 245,443 $ 18,646 $ 393 $ 264,482 $ (12,054) $ 252,428
=========== ============ =========== =========== ============ ===========
CAPITALIZATION & LIABILITIES
CAPITALIZATION:
Common Stock $ 59,770 $ 17,004 $ 3 $ 76,777 $ (17,007) $ 59,770
Paid - in - Capital 50,822 (5,723) 883 45,982 4,840 50,822
Earnings Reinvested in the Business 24,626 22 (401) 24,247 379 24,626
Accumulated Other Comp. Income 21,761 238 28 22,027 (266) 21,761
----------- ------------ ----------- ----------- ------------ -----------
Total Common Stock Equity 156,979 11,541 513 169,033 (12,054) 156,979
----------- ------------ ----------- ----------- ------------ -----------
Long-Term Debt, Net of Current
Portion 9,844 - - 9,844 - 9,844
Notes Payable - Intercompany - - - - - -
----------- ------------ ----------- ----------- ------------ -----------
Total Capitalization 166,823 11,541 513 178,877 (12,054) 166,823
----------- ------------ ----------- ----------- ------------ -----------
Minority Interest in Foreign
Subsidiaries 28,324 4,957 - 33,281 - 33,281
----------- ------------ ----------- ----------- ------------ -----------
CURRENT AND ACCRUED LIABILITIES:
Notes Payable - Intercompany - - - - - -
Notes Payable to Banks - - - - - -
Current Portion of Long-Term Debt 7,397 - - 7,397 - 7,397
Accounts Payable 19,631 1,267 (1) 20,897 8 20,905
Accounts Payable - Intercompany 8 - - 8 (8) -
Other Accruals and Current
Liabilities 946 (158) 24 812 - 812
----------- ------------ ----------- ----------- ------------ -----------
27,982 1,109 23 29,114 - 29,114
----------- ------------ ----------- ----------- ------------ -----------
DEFERRED CREDITS:
Accumulated Deferred Income Taxes 21,699 1,039 (143) 22,595 - 22,595
Other Deferred Credits 615 - - 615 - 615
----------- ------------ ----------- ----------- ------------ -----------
22,314 1,039 (143) 23,210 - 23,210
----------- ------------ ----------- ----------- ------------ -----------
TOTAL CAPITALIZATION & LIABILITIES $ 245,443 $ 18,646 $ 393 $ 264,482 $ (12,054) $ 252,428
=========== ============ =========== =========== ============ ===========
See Notes to Consolidated Financial Statements included in Item 8 of National
Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2003,
incorporated herein by reference.
UNITED ENERGY, a.s.
CONSOLIDATING STATEMENT OF INCOME
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2003
(THOUSANDS OF DOLLARS)
Consolidated
Teplarna Total Before Eliminations UE and
UE Liberec ENOP Eliminations (Dr) Cr Subsidiaries
----------- ------------ ----------- ----------- ------------ -----------
OPERATING REVENUE: $ 95,455 $ 21,207 $ 4 $ 116,666 $ (2,768) $ 113,898
----------- ------------ ----------- ----------- ------------ -----------
OPERATING EXPENSE:
Fuel Used in Heat and
Electric Generation 46,721 14,312 - 61,033 - 61,033
Operation and Maintenance 20,093 7,006 8 27,107 (2,768) 24,339
Property, Franchise & Other Taxes 2,311 363 - 2,674 - 2,674
Depreciation, Depletion and
Amortization 12,698 1,205 4 13,907 - 13,907
----------- ------------ ----------- ----------- ------------ -----------
81,823 22,886 12 104,721 (2,768) 101,953
----------- ------------ ----------- ----------- ------------ -----------
Operating Income (Loss) 13,632 (1,679) (8) 11,945 - 11,945
----------- ------------ ----------- ----------- ------------ -----------
OTHER INCOME (EXPENSE):
Unremitted Earnings of
Subsidiaries (969) - - (969) 969 -
Other Income 2,124 93 5 2,222 - 2,222
Interest on Long-Term Debt (1,385) - - (1,385) - (1,385)
Interest-Intercompany - - - - - -
Other Interest (1,094) - - (1,094) - (1,094)
----------- ------------ ----------- ----------- ------------ -----------
(1,324) 93 5 (1,226) 969 (257)
----------- ------------ ----------- ----------- ------------ -----------
Income (Loss) Before
Income Taxes and
and Minority Interest in
Foreign Subsidiaries 12,308 (1,586) (3) 10,719 969 11,688
----------- ------------ ----------- ----------- ------------ -----------
Income Taxes 4,224 (205) - 4,019 - 4,019
Minority Interest in
Foreign Subsidiaries (1,199) 414 - (785) - (785)
----------- ------------ ----------- ----------- ------------ -----------
Income (Loss) Before Cumulative Effect
of Change in Accounting Principle 6,885 (967) (3) 5,915 969 6,884
Cumulative Effect of Change
in Accounting Principle (7,923) 935 (93) (7,081) (841) (7,922)
----------- ------------ ----------- ----------- ------------ -----------
Net Income (Loss) Available
for Common Stock $ (1,038) $ (32) $ (96) $ (1,166) $ 128 $ (1,038)
=========== ============ =========== =========== ============ ===========
See Notes to Consolidated Financial Statements included in Item 8 of National
Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2003,
incorporated herein by reference.
UNITED ENERGY, a.s.
CONSOLIDATING STATEMENT OF EARNINGS REINVESTED IN THE BUSINESS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2003
(THOUSANDS OF DOLLARS)
Consolidated
EARNINGS REINVESTED Teplarna Total Before Eliminations UE and
IN THE BUSINESS UE Liberec ENOP Eliminations (Dr) Cr Subsidiaries
----------- ------------ ----------- ----------- ------------ -----------
Balance at Beginning of Year $ 25,664 $ 54 $ (305) $ 25,413 $ 251 $ 25,664
Net Income (Loss) Available
for Common Stock (1,038) (32) (96) (1,166) 128 (1,038)
----------- ------------ ----------- ----------- ------------ -----------
Balance at End of Year $ 24,626 $ 22 $ (401) $ 24,247 $ 379 $ 24,626
=========== ============ =========== =========== ============ ===========
See Notes to Consolidated Financial Statements included in Item 8 of National
Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2003,
incorporated herein by reference.
UNITED ENERGY, a.s.
CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2003
(THOUSANDS OF DOLLARS)
Consolidated
Teplarna Total Before Eliminations UE and
UE Liberec ENOP Eliminations (Dr) Cr Subsidiaries
----------- ------------ ----------- ----------- ------------ -----------
Net Income (Loss) Available for
Common Stock $ (1,038) $ (32) $ (96) $ (1,166) $ 128 $ (1,038)
----------- ------------ ----------- ----------- ------------ -----------
Other Comprehensive Income (Loss) :
Foreign Currency Translation
Adjustment 17,443 1,397 59 18,899 (1,456) 17,443
----------- ------------ ----------- ----------- ------------ -----------
Other Comprehensive Income (Loss) 17,443 1,397 59 18,899 (1,456) 17,443
----------- ------------ ----------- ----------- ------------ -----------
Comprehensive Income (Loss) $ 16,405 $ 1,365 $ (37) $ 17,733 $ (1,328) $ 16,405
=========== ============ =========== =========== ============ ===========
See Notes to Consolidated Financial Statements included in Item 8 of National
Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2003,
incorporated herein by reference.
UNITED ENERGY, a.s.
CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2003
(THOUSANDS OF DOLLARS)
Total Before Consolidated
Teplarna Eliminations UE and
UE Liberec ENOP & Adjustments Eliminations Subsidiaries
----------- ------------ ------------ ------------ ------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (Loss) $ (1,038) $ (32) $ (96) $ (1,166) $ 128 $ (1,038)
Adjustments to Reconcile Net Income
to Net Cash Provided by Operating
Activities:
Unremitted Earnings of Subsidiaries 969 - - 969 (969) -
Depreciation, Depletion &
Amortization 12,698 1,205 4 13,907 - 13,907
Deferred Income Taxes 4,289 (170) (1) 4,118 - 4,118
Minority Interest in Foreign
Subsidiaries 1,199 (414) - 785 - 785
Cumulative Effect of Change in
Accounting Principle 7,922 (935) 93 7,080 841 7,921
Other - - - - - -
Change in:
Accounts Receivable - Intercompany - - - - - -
Receivables and Unbilled Utility
Revenue 1,210 (144) 4 1,070 - 1,070
Material and Supplies 26 (34) - (8) - (8)
Prepayments (27) - - (27) - (27)
Accounts Payable 180 (68) (72) 40 (4) 36
Accounts Payable - Intercompany (4) - - (4) 4 -
Other Accruals and Current
Liabilities 26 890 (1) 915 - 915
Other Assets 57 (65) - (8) - (8)
Other Liabilities 119 - - 119 - 119
----------- ------------ ------------ ------------ ------------ ------------
Net Cash Provided by (Used in)
Operations 27,626 233 (69) 27,790 - 27,790
----------- ------------ ------------ ------------ ------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital Expenditures (1,321) (1,150) - (2,471) - (2,471)
Change in Notes
Receivable - Intercompany - - - - - -
Other 1,241 38 - 1,279 - 1,279
----------- ------------ ------------ ------------ ------------ ------------
Net Cash Provided by (Used In)
Investing Activities (80) (1,112) - (1,192) - (1,192)
----------- ------------ ------------ ------------ ------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Change in Notes Payable to Banks (2,255) - - (2,255) - (2,255)
Change in Notes Payable - Intercompany - - - - - -
Net Proceeds from Issuance of
Long-Term Debt - - - - - -
Reduction of Long-Term Debt (18,165) - - (18,165) - (18,165)
----------- ------------ ------------ ------------ ------------ ------------
Net Cash Provided by (Used in)
Financing Activities (20,420) - - (20,420) - (20,420)
----------- ------------ ------------ ------------ ------------ ------------
Effect of Exchange Rates on Cash 2,552 458 44 3,054 - 3,054
----------- ------------ ------------ ------------ ------------ ------------
Net Increase (Decrease) in Cash
and Temporary Cash Investments 9,678 (421) (25) 9,232 - 9,232
Cash and Temporary Cash Investments
of Beginning of Period 4,519 2,645 396 7,560 - 7,560
----------- ------------ ------------ ------------ ------------ ------------
Cash and Temporary Cash
Investments at End of Year $ 14,197 $ 2,224 $ 371 $ 16,792 $ - $ 16,792
=========== ============ ============ ============ ============ ============
See Notes to Consolidated Financial Statements included in Item 8 of National
Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2003,
incorporated herein by reference.
EXHIBITS
A. *(1) Annual Report on Form 10-K for fiscal year ended September 30, 2003 filed December 29, 2003 (File No. 1-3880).
(2) National Fuel Gas Company 2003 Annual Report to Shareholders (paper copy submitted under cover of Form SE).
*(3) National Fuel Gas Company Proxy Statement, dated and filed January 20, 2004 (File No. 1-03880).
B. Articles of Incorporation, By-Laws and Partnership Agreements.
(1) National Fuel Gas Company
*i Restated Certificate of Incorporation of National Fuel Gas Company, dated September 21, 1998 (Exhibit 3.1,
Form 10-K for fiscal year ended September 30, 1998 in File No. 1-3880).
*ii National Fuel Gas Company By-Laws as amended on December 12, 2002, (Exhibit 3 (ii) designated as Exhibit
ex99-1 for EDGAR purposes, Form 10-Q for quarterly period ended December 31, 2002 in File No. 1-3880).
(2) National Fuel Gas Distribution Corporation
*i By-Laws, as amended March 11, 1998. (Exhibit (2)i, designated as Exhibit ex99-1 for EDGAR purposes, Form
U5S for fiscal year ended September 30, 1999.)
*ii Restated Certificate of Incorporation of National Fuel Gas Distribution Corporation, dated May 9, 1988
(Exhibit B-1 in File No. 70-7478).
(3) National Fuel Gas Supply Corporation
*i By-Laws, as amended (Exhibit (3)i, Form U5S for fiscal year ended September 30, 1989).
*ii Articles of Incorporation of United Natural Gas Company, dated February 1, 1886 (Exhibit (3)ii, Form U5S for
fiscal year ended September 30, 1984).
*iii Certificate of Merger and Consolidation dated January 2, 1951 (Exhibit (3)iii, Form U5S for fiscal year
ended September 30, 1984).
*iv Joint Agreement and Plan of Merger, dated June 18, 1974 (Exhibit (3)iv, Form U5S for fiscal year ended
September 30, 1987).
*v Certificate of Merger and Plan of Merger of Penn-York Energy Corporation and National Fuel Gas Supply
Corporation dated April 1, 1994 (Exhibit (3)v, designated as Exhibit ex99-3 for EDGAR purposes, Form U5S for
fiscal year ended September 30, 1994).
* Incorporated herein by reference as indicated.
EXHIBITS (Continued)
(4) Leidy Hub, Inc. (formerly Enerop Corporation)
*i By-Laws (Exhibit A-15, File No. 70-7478).
*ii Restated Certificate of Incorporation of Enerop Corporation dated October 15, 1993. (Exhibit (4)ii,
designated as Exhibit ex99-2 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1999).
*iii Action by Board of Directors to amend the By-Laws dated October 10, 1993 (Exhibit (4)iii, designated as
Exhibit ex-3 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1993).
(5) Seneca Resources Corporation
*i By-Laws, as amended (Exhibit (5)i, Form U5S for fiscal year ended September 30, 1989).
*ii Articles of Incorporation of Mars Natural Gas Company dated March 29, 1913 (Exhibit (5)ii, Form U5S for
fiscal year ended September 30, 1984).
*iii Secretary's Certificate dated January 4, 1918 (Exhibit (5)iii, Form U5S for fiscal year ended September 30,
1984).
*iv Articles of Amendment, dated March 30, 1955 (Exhibit (5)iv, Form U5S for fiscal year ended September 30,
1984).
*v Certificate of Amendment changing name of the Mars Company to Seneca Resources Corporation, January 29, 1976
(Exhibit (5)v, Form U5S for fiscal year ended September 30, 1984).
*vi Certificate of Merger and Plan of Merger of Seneca Resources Corporation and Empire Exploration, Inc. dated
April 29, 1994 (Exhibit (5)vi, designated as Exhibit EX-99-2 for EDGAR purposes, Form U5S for fiscal year
ended September 30, 1994).
*vii Articles of Merger and Plan of Merger of HarCor Energy, Inc. with and into Seneca Resources Corporation, filed
August 31, 1999. (Exhibit (5)vii, designated as Exhibit ex99-3 for EDGAR purposes, Form U5S for fiscal year
ended September 30, 1999.)
*viii Certificate of Ownership and Merger merging HarCor Energy, Inc. into Seneca Resources Corporation filed August 31,
1999. (Exhibit (5)viii, designated as Exhibit ex99-4 for EDGAR purposes, Form U5S for fiscal year ended
September 30, 1999.)
ix Amended and Restated Articles of Incorporation of Seneca Resources Corporation, as filed September 15,
2003. Designated as ex99-49 for EDGAR purposes.
* Incorporated herein by reference as indicated.
EXHIBITS (Continued)
(6) Empire Exploration Company
*i Certificate of Limited Partnership, dated November 28, 1983. (Designated as Exhibit ex99-1 for EDGAR
purposes, Form U5S for fiscal year ended September 30, 2001).
*ii Limited Partnership Agreement, dated November 28, 1983, between Empire Exploration, Inc. (now Seneca
Resources Corporation) as general partner and Herman P. Loonsk as limited partner (Exhibit (8), Form U5S for
fiscal year ended September 30, 1984).
(7) Empire 1983 Drilling Program
*i Certificate of Limited Partnership, dated November 28, 1983. (Designated as Exhibit ex99-2 for EDGAR
purposes, Form U5S for fiscal year ended September 30, 2001).
*ii Amendment of Certificate of Limited Partnership, dated December 21, 1983. (Designated as Exhibit ex99-3 for
EDGAR purposes, Form U5S for fiscal year ended September 30, 2001).
*iii Limited Partnership Agreement, dated November 28, 1983, among Empire Exploration, Inc. (now Seneca Resources
Corporation) as general partner and those parties collectively called limited partners (Exhibit (9), Form
U5S for fiscal year ended September 30, 1984).
(8) Empire 1983 Joint Venture
*i Business Certificate for Partners, dated December 6, 1983. (Designated as Exhibit ex99-4 for EDGAR
purposes, Form U5S for fiscal year ended September 30, 2001).
*ii Joint Venture Agreement, dated December 6, 1983, between Empire Exploration, Inc. (now Seneca Resources
Corporation) and Empire 1983 Drilling Program (Exhibit (10), Form U5S for fiscal year ended September 30,
1984).
(9) Highland Forest Resources, Inc. (formerly Highland Land & Minerals, Inc.)
*i Certificate of Incorporation, dated August 19, 1982 (Exhibit (11)i, Form U5S for fiscal year ended September
30, 1985).
*ii By-Laws (Exhibit (11) ii, Form U5S for fiscal year ended September 30, 1987).
*iii Articles of Merger and Plan of Merger of Utility Constructors, Inc. into Highland Land & Minerals, Inc. filed
October 1, 1999. (Exhibit (9)iii, designated as Exhibit ex99-5 for EDGAR purposes, Form U5S for fiscal year
ended September 30, 1999.)
* Incorporated herein by reference as indicated.
EXHIBITS (Continued)
*iv Articles of Amendment of the Articles of the Corporation, dated June 8, 2000. (Exhibit (9)iv, designated as Exhibit
ex99-2 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2000.)
v Certificate of Incorporation of Highland Pipeline & Resources Corp., dated January 20, 2003, designated as
Exhibit ex99-4 for EDGAR purposes.
vi Certificate of Merger of Highland Forest Resources, Inc. with and into Highland Pipeline & Resources Corp.
dated February 3, 2003, designated as Exhibit ex99-5 for EDGAR purposes.
vii By-Laws of Highland Forest Resources, Inc. (f/k/a Highland Pipeline & Resources Corp.) designated as Exhibit
ex99-6 for EDGAR purposes.
(10) Data-Track Account Services, Inc.
*i Restated Articles of Incorporation, dated March 2, 1984 (Exhibit A-1, File No. 70-7512).
*ii By-Laws (Exhibit A-2, File No. 70-7512).
iii By-Laws as amended March 28, 2003. Designated as Exhibit ex99-7 for EDGAR purposes.
(11) National Fuel Resources, Inc.
*i Articles of Incorporation, dated January 9, 1991 (Exhibit (14)i, designated as Exhibit EX-3(a) for EDGAR
purposes, Form U5S for fiscal year ended September 30, 1992).
*ii By-Laws (Exhibit (14)ii, designated as Exhibit EX-3(b) for EDGAR purposes, Form U5S for fiscal year ended
September 30, 1992).
iii By-Laws as amended March 28, 2003. Designated as Exhibit ex99-8 for EDGAR purposes.
(12) Horizon Power, Inc. (formerly NFR Power, Inc.)
*i Certificate of Incorporation, dated December 13, 1995. (Exhibit (13)i, designated as Exhibit EX-3-1 for EDGAR
purposes, Form U5S for fiscal year ended September 30, 1999.)
*ii By-Laws. (Exhibit (13)ii, designated as Exhibit EX-3-2 for EDGAR purposes, Form U5S for fiscal year ended September
30, 1999.)
*iii Certificate of Amendment of the Certificate of Incorporation of NFR Power, Inc., dated June 20, 2001.
(Designated as Exhibit ex99-5 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2001).
* Incorporated herein by reference as indicated.
EXHIBITS (Continued)
iv By-Laws as amended March 28, 2003. Designated as Exhibit ex99-9 for EDGAR purposes.
(13) Seneca Energy II, LLC
*i Articles of Organization, dated February 23, 2000. (Designated as Exhibit ex99-6 for EDGAR purposes, Form U5S for
fiscal year ended September 30, 2001).
*ii Amended and Restated Operating Agreement, dated March 1, 2000 (Confidential Treatment Requested)
(14) Model City Energy, LLC
*i Articles of Organization, dated February 11, 2000. (Designated as Exhibit ex99-7 for EDGAR purposes, Form
U5S for fiscal year ended September 30, 2001).
*ii Operating Agreement, dated March 1, 2000 (Confidential Treatment Requested)
(15) Energy Systems North East, LLC
*i Certificate of Formation, dated September 26, 2000. (Designated as Exhibit ex99-8 for EDGAR purposes, Form U5S for
fiscal year ended September 30, 2001).
*ii Limited Liability Company Agreement, dated September 26, 2000 (Confidential Treatment Requested).
(16) Horizon Energy Development, Inc.
*i Certificate of Incorporation (Exhibit (13)i, designated as Exhibit EX-3(a) for EDGAR purposes, Form U5S for
fiscal year ended September 30, 1995).
*ii By-Laws (Exhibit (13)ii, designated as Exhibit EX-3(b) for EDGAR purposes, Form U5S for fiscal year ended
September 30, 1995).
(17) Horizon Energy Holdings, Inc.
*i Certificate of Incorporation, dated April 1, 1998. (Exhibit (14)i designated as Exhibit EX99-1 for EDGAR
purposes, Form U5S for fiscal year ended September 30, 1998).
*ii By-Laws. (Exhibit (14)ii, designated as Exhibit EX99-2 for EDGAR purposes, Form U5S for fiscal year ended
September 30, 1998).
(18) Horizon Energy Development B.V. (formerly Beheeren-Beleggingmaatschappij Bruwabel B.V.)
*i Articles of Incorporation (Exhibit (14), designated as Exhibit ex99-2 for EDGAR purposes, Form U5S for
fiscal year ended September 30, 1996).
* Incorporated herein by reference as indicated.
EXHIBITS (Continued)
*ii Notarial Record, dated December 4, 2001 (Exhibit (18)ii, designated as Exhibit ex99-9 for EDGAR purposes,
Form U5S for fiscal year ended September 30, 2001).
(19) Horizon Energy Development, s.r.o. (formerly Power International, s.r.o.)
*i Founding Notarial Deed, dated May 8, 1991 (Exhibit (15)i, designated as Exhibit ex99-9 for EDGAR purposes,
Form U5S/A for fiscal year ended September 30, 1996).
*ii Notarial Deed, dated December 2, 1993 (Exhibit (15)ii, designated as Exhibit ex99-10 for EDGAR purposes,
Form U5S/A for fiscal year ended September 30, 1996).
*iii Notarial Deed, dated June 28, 1996 (Exhibit (15)iii, designated as Exhibit ex99-11 for EDGAR purposes, Form
U5S/A for fiscal year ended September 30, 1996).
*iv Notarial Deed, dated November 27, 1996 (Exhibit (15)iv, designated as Exhibit ex99-12 for EDGAR purposes, Form U5S/A
for fiscal year ended September 30, 1996).
*v Notarial Deed, dated April 24, 2002 that adopted new Founder's Deed, dated April 24, 2002. (Exhibit 19 (v)
designated as Exhibit ex99-2 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2002).
(20) Teplarna Liberec, a.s.
*i Founding Contract, dated November 11, 1994 (Exhibit (21)i, designated as Exhibit ex99-12 for EDGAR purposes,
Form U5S/A for fiscal year ended September 30, 1997).
*ii Notarial Record, dated November 11, 1994 (Exhibit (21)ii, designated as Exhibit ex99-13 for EDGAR purposes,
Form U5S/A for fiscal year ended September 30, 1997).
*iii Articles of Association, dated June 21, 2001 (Exhibit (22)iii, designated as Exhibit ex99-11 for EDGAR
purposes, Form U5S for fiscal year ended September 30, 2001).
(21) Teplo Branany, s.r.o.
*i Partnership Agreement, dated November 18, 1997. (Exhibit (28)i, designated as Exhibit 99-4 for EDGAR
purposes, Form U5S for fiscal year ended September 30, 1998).
(22) Lounske tepelne hospodarstvi, s.r.o.
*i Notarial Records, dated November 12, 1998, January 6, 1999 and December 2, 1999. Designated as Exhibit
ex99-6 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1999.
* Incorporated herein by reference as indicated.
EXHIBITS (Continued)
*ii Founders Deed, dated November 15, 1994, as amended on December 13, 2001. (Exhibit 22 (ii), designated as Exhibit
ex99-3 for EDGAR purposes, Form U5S for the fiscal year ended September 30, 2002).
(23) ENOP, s.r.o.
*i Founders Deed, dated December 19, 1995, as amended on December 13, 2001. (Exhibit 23 (i), designated as
Exhibit ex99-4 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2002).
(24) United Energy, a.s.
*i Notarial Record from Prvni severozapadni teplarenska, a.s., dated September 28, 1998. (Exhibit (28) i,
designated as Exhibit ex99-3 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2000.)
*ii Notarial Record from Severoceske Teplarny, a.s. dated September 28, 1998. (Exhibit (28) ii, designated as
Exhibit ex99-4 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2000.)
*iii Court Resolution, dated December 9, 1999. (Exhibit (28) iii, designated as Exhibit ex99-5 for EDGAR
purposes, Form U5S for fiscal year ended September 30, 2000.)
*iv Court Resolution, dated July 13, 2000. (Exhibit (28) iv, designated as Exhibit ex99-6 for EDGAR purposes,
Form U5S for fiscal year ended September 30, 2000.)
*v Articles of Association, dated April 28, 1992, as amended on June 28, 2001 as amended on June 27, 2002.
(Exhibit 24 (v), designated as Exhibit ex99-5 for EDGAR purposes, Form U5S for fiscal year ended September
30, 2002).
(25) Upstate Energy Inc. (formerly Niagara Energy Trading Inc.)
*i Restated Certificate of Incorporation of Niagara Energy Trading Inc., dated May 19, 1998. (Exhibit (32)i,
designated as Exhibit ex99-9 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1998).
*ii By-Laws as amended August 24, 1999. (Exhibit (32)ii, designated as Exhibit ex99-7 for EDGAR purposes, Form
U5S for fiscal year ended September 30, 1999.)
iii By-Laws as amended March 28, 2003. Designated as Exhibit ex99-10 for EDGAR purposes.
* Incorporated herein by reference as indicated.
EXHIBITS (Continued)
(26) Roystone Gas Processing Plant Partnership
*i Facility Construction, Ownership and Operating Agreement, dated November 1, 1994. (Exhibit (33)i, designated as
Exhibit ex99-8 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1999.)
*ii Ratification and Joinder Agreement, dated September 1, 2002, (Exhibit 26 (ii), designated as Exhibit ex99-6
for EDGAR purposes, Form U5S for fiscal year ended September 30, 2002).
(27) Niagara Independence Marketing Company
*i Certificate of Incorporation, dated September 17, 1997 (Exhibit (27)i, designated as Exhibit ex99-3 for EDGAR
purposes, Form U5S for fiscal year ended September 30, 1997).
*ii By-Laws as amended January 2, 2002. (Exhibit 27 (ii), designated as Exhibit ex99-7 for EDGAR purposes, Form
U5S for fiscal year ended September 30, 2002).
*iii Marketing Partnership Agreement among Coastal Gas Marketing DirectLink Corp., MGS Marketing Corp., Niagara
Independence Marketing Company and Williams Independence Marketing Company (Exhibit (27)iii, designated as
Exhibit ex99-5 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1997).
(28) Seneca Independence Pipeline Company
*i Certificate of Incorporation of Empire Oklahoma, Inc., dated April 16, 1996 (Exhibit (28)i, designated as
Exhibit ex99-6 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1997).
*ii Certificate of Amendment of Certificate of Incorporation of Empire Oklahoma, Inc., dated July 24, 1997
(Exhibit (28)ii, designated as Exhibit ex99-7 for EDGAR purposes, Form U5S for fiscal year ended September
30, 1997).
*iii By-Laws amended September 20, 1999. (Exhibit (35)iii, designated as Exhibit ex99-10 for EDGAR purposes,
Form U5S for fiscal year ended September 30, 1999.)
(29) Seneca Energy Canada Inc.
i Certificate of Amendment and Articles of Amendment changing name of corporation from Player Resources LTD to
Seneca Energy Canada Inc., dated September 1, 2002. Designated as Exhibit ex99-11 for EDGAR purposes.
*ii Certificate of Amendment and Registration of Restated Articles dated 8/2/02. (Exhibit 30 (i), designated as
Exhibit ex99-14 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2002).
* Incorporated herein by reference as indicated.
EXHIBITS (Continued)
*iii Articles of Amendment dated 8/2/02. (Exhibit 30 (ii), designated as Exhibit ex99-15 for EDGAR purposes, Form
U5S for fiscal year ended September 30, 2002).
*iv Certificate of Amendment and Registration of Restated Articles dated 7/29/02. (Exhibit 30 (iii), designated
as Exhibit ex99-16 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2002).
*v Articles of Amendment dated 7/29/02. (Exhibit 30 (iv), designated as Exhibit ex99-17 for EDGAR purposes,
Form U5S for fiscal year ended September 30, 2002.
*vi Certificate of Amalgamation and Articles of Amalgamation, dated September 28, 2001 (Exhibit 33(i),
designated as Exhibit ex99-13 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2001).
*vii By-Laws No. 1, dated January 28, 1998 (Exhibit 33 (ii), designated as Exhibit ex99-14 for EDGAR purposes,
Form U5S for fiscal year ended September 30, 2001).
(30) Seneca Player Corp.
*i Certificate of Incorporation of JN Acquisition Corp. dated October 26, 1999. (Exhibit 31 (i), designated as
Exhibit ex99-18 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2002).
*ii Certificate of Amendment of Certificate of Incorporation of Seneca Player Corp. dated December 19, 2001.
(Exhibit 31 (ii), designated as Exhibit ex99-19 for EDGAR purposes, Form U5S for fiscal year ended September
30, 2002).
(31) 3062782 Nova Scotia Company
*i Certificate of Incorporation dated December 27, 2001. (Exhibit 32 (i), designated as Exhibit ex99-20 for
EDGAR purposes, Form U5S for fiscal year ended September 30, 2002).
*ii Memorandum and Articles of Association of 306782 Nova Scotia Company dated December 27, 2001. (Exhibit 32
(ii) designated as Exhibit ex99-21 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2002).
(32) 3062783 Nova Scotia Company
*i Certificate of Incorporation dated December 27, 2001. (Exhibit 33 (i), designated as Exhibit ex99-22 for
EDGAR purposes, Form U5S for fiscal year ended September 30, 2002).
*ii Memorandum and Articles of Association of 3062783 Nova Scotia Company dated December 27, 2001. (Exhibit 33
(ii), designated as Exhibit ex99-23 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2002).
* Incorporated herein by reference as indicated.
EXHIBITS (Continued)
(33) Horizon Energy Bulgaria Ltd.
*i Articles of Association of One-Man Limited Liability Company dated August 25, 2001. (Exhibit 35 (i),
designated as Exhibit ex99-26 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2002).
(34) Sofia Energy EAD
i Articles of Association of Sofia Energy EAD, Joint-Stock Company dated July 7, 2003. Designated as Exhibit
ex99-12 for EDGAR purposes.
(35) Montenero Energia S.r.l.
i Incorporation of a Limited Liability Company dated November 6, 2002. Designated as Exhibit ex99-13 for EDGAR
purposes.
(36) Kane Gas Processing Plant
i Facility Construction, Ownership and Operating Agreement between Elkhorn Field Services Company and Five
Oaks, Inc. and East Resources, Inc. and Seneca Resources Corporation. This document is subject to a request
for confidential treatment under Rule 104 (b).
(37) Toro Partner LLC
i Certificate of Formation of Toro Partner LLC dated April 30, 2003. Designated as Exhibit ex99-14 for EDGAR
purposes.
ii Limited Liability Company Agreement of Toro Partner LLC dated May 27, 2003. Designated as Exhibit ex99-15 for
EDGAR purposes.
(38) Toro Partners, LP
i Amended and Restated Certificate of Limited Partnership of Toro Partners, LP dated June 4, 2003. Designated
as Exhibit ex99-16 for EDGAR purposes.
ii Amended and Restated Agreement of Limited Partnership of Toro Partners, LP (undated). Designated as Exhibit
ex99-17 for EDGAR purposes.
(39) Toro Energy of Michigan, LLC
i Certificate of Formation of Toro Energy of Michigan, LLC dated September 7, 1999. Designated as Exhibit
ex99-18 for EDGAR purposes.
ii Certificate of Amendment of Toro Energy of Michigan, LLC dated July 24, 2003. Designated as Exhibit ex99-19 for
EDGAR purposes.
iii Amended and Restated Limited Liability Company Agreement of Toro Energy of Michigan, LLC dated June 3,
2003. Designated as Exhibit ex99-20 for EDGAR purposes.
(40) Toro Energy of Ohio-Statewide, LLC
i Certificate of Formation of Toro Energy of Ohio-Statewide, LLC dated September 9, 1999. Designated as Exhibit
ex99-21 for EDGAR purposes.
ii Certificate of Amendment of Toro Energy of Ohio-Statewide, LLC dated July 24, 2003. Designated as Exhibit ex99-22 for
EDGAR purposes.
iii Amended and Restated Limited Liability Company Agreement of Toro Energy of Ohio-Statewide, LLC dated June 3,
2003. Designated as Exhibit ex99-23 for EDGAR purposes.
* Incorporated herein by reference as indicated.
EXHIBITS (Continued)
(41) Toro Energy of Ohio, LLC
i Certificate of Formation of Toro Energy of Ohio, LLC dated September 1, 1999. Designated as Exhibit
ex99-24 for EDGAR purposes.
ii Certificate of Amendment of Toro Energy of Ohio, LLC dated July 24, 2003. Designated as Exhibit ex99-25 for
EDGAR purposes.
iii Amended and Restated Limited Liability Company Agreement of Toro Energy of Ohio, LLC dated June 3, 2003.
Designated as Exhibit ex99-26 for EDGAR purposes.
(42) Toro Energy of Kentucky, LLC
i Certificate of Formation of Toro Energy of Kentucky, LLC dated September 1, 1999. Designated as Exhibit
ex99-99-27 for EDGAR purposes.
ii Certificate of Amendment of Toro Energy of Kentucky, LLC dated July 24, 2003. Designated as Exhibit ex99-28 for
EDGAR purposes.
iii Amended and Restated Limited Liability Company Agreement of Toro Energy of Kentucky, LLC dated June 3,
2003. Designated as Exhibit ex99-29 for EDGAR purposes.
(43) Toro Energy of Missouri, LLC
i Articles of Organization of Toro Energy of Missouri, LLC dated July 21, 1999. Designated as Exhibit
ex99-30 for EDGAR purposes.
ii Change of Registered Agent/Registered Office, filed July 30, 2003. Designated as Exhibit ex99-31 for
EDGAR purposes.
iii Amended and Restated Regulations of Toro Energy of Missouri, LLC dated June 23, 2003. Designated as Exhibit
ex99-32 for EDGAR purposes.
(44) Toro Energy of Maryland, LLC
i Articles of Organization of Toro Energy of Maryland, LLC dated August 3, 1999. Designated as Exhibit
ex99-33 for EDGAR purposes.
ii Change of Registered Agent/Registered Office, filed July 30, 2003. Designated as Exhibit ex99-34 for
EDGAR purposes.
iii Amended and Restated Regulations of Toro Energy of Maryland, LLC dated June 23, 2003. Designated as Exhibit
ex99-35 for EDGAR purposes.
(45) Toro Energy of Indiana, LLC
i Articles of Organization of Toro Energy of Indiana, LLC dated November 14, 2000. Designated as Exhibit
ex99-36 for EDGAR purposes.
ii Articles of Amendment to the Articles of Organization of Toro Energy of Indiana, LLC dated August 14, 2001.
Designated as Exhibit ex99-37 for EDGAR purposes.
iii Change of Registered Agent/Registered Office, filed July 30, 2003. Designated as Exhibit ex99-38 for EDGAR
purposes.
iv Amended and Restated Regulations of Toro Energy of Indiana, LLC dated June 23, 2003. Designated as Exhibit
ex99-39 for EDGAR purposes.
(46) Toro Energy of Ohio-American, LLC
i Articles of Organization of Toro Energy of Ohio-American, LLC dated February 16, 2003. Designated as Exhibit
ex99-40 for EDGAR purposes.
ii Change of Registered Agent/Registered Office, filed July 30, 2003. Designated as Exhibit ex99-41 for EDGAR
purposes.
iii Amended and Restated Regulations of Toro Energy of Ohio-American, LLC dated June 23, 2003. Designated as
Exhibit ex99-42 for EDGAR purposes.
(47) ESPC, LLC
i Articles of Organization of ESPC, LLC dated January 22, 2003. Designated as Exhibit ex99-43 for EDGAR purposes.
ii Certificate of Amendment of the Articles of Organization of ESPC, LLC dated February 3, 2003. Designated as
Exhibit ex99-44 for EDGAR purposes.
iii Operating Agreement of ESPC, LLC dated February 6, 2003. Designated as Exhibit ex99-45 for EDGAR purposes.
(48) SCPC, LLC
i Articles of Organization of SCPC, LLC dated February 3, 2003. Designated as Exhibit ex99-46 for EDGAR purposes.
ii Operating Agreement of SCPC, LLC dated February 6, 2003. Designated as Exhibit ex99-47 for EDGAR purposes.
EXHIBITS (Continued)
(49) Empire State Pipeline
i Second Amended and Restated Operating Agreement between St. Clair Pipeline Company Inc. and Empire State
Pipeline Company, Inc. dated September 27, 1996. Designated as Exhibit ex99-48 for EDGAR purposes.
C. Indentures
* Indenture dated as of October 15, 1974, between the Company and The Bank of New York (formerly Irving Trust Company)
(Exhibit 2(b) in File No. 2-51796).
* Third Supplemental Indenture dated as of December 1, 1982, to Indenture dated as of October 15, 1974, between the Company
and The Bank of New York (formerly Irving Trust Company) (Exhibit 4(a)(4) in File No. 33-49401).
* Tenth Supplemental Indenture dated as of February 1, 1992, to Indenture dated as of October 15, 1974, between the Company
and The Bank of New York (formerly Irving Trust Company) (Exhibit 4(a), Form 8-K dated February 14, 1992 in File No.
1-3880).
* Eleventh Supplemental Indenture dated as of May 1, 1992, to Indenture dated as of October 15, 1974, between the Company
and The Bank of New York (formerly Irving Trust Company) (Exhibit 4(b), Form 8-K dated February 14, 1992 in File No.
1-3880).
* Twelfth Supplemental Indenture dated as of June 1, 1992, to Indenture dated as of October 15, 1974, between the Company
and The Bank of New York (formerly Irving Trust Company) (Exhibit 4(c), Form 8-K dated June 18, 1992 in File No. 1-3880).
* Thirteenth Supplemental Indenture dated as of March 1, 1993, to Indenture dated as of October 15, 1974, between the
Company and The Bank of New York (formerly Irving Trust Company) (Exhibit 4(a)(14) in File No. 33-49401).
* Fourteenth Supplemental Indenture dated as of July 1, 1993, to Indenture dated as of October 15, 1974, between the
Company and The Bank of New York (formerly Irving Trust Company) (Exhibit 4.1, Form 10-K for fiscal year ended September
30, 1993 in File No. 1-3880).
* Fifteenth Supplemental Indenture dated as of September 1, 1996 to Indenture dated as of October 15, 1974, between the
Company and The Bank of New York (formerly Irving Trust Company) (Exhibit 4.1, Form 10-K for fiscal year ended September
30, 1996 in File No. 1-3880).
* Indenture dated as of October 1, 1999 between the Company and the Bank of New York (Exhibit 4.1, Form 10-K for the fiscal
year ended September 30, 1999 in File No. 1-3880).
* Officers Certificate Establishing Medium-Term Notes dated October 14, 1999 (Exhibit 4.2, Form 10-K for the fiscal year
ended September 30, 1999 in File No. 1-3880).
* Incorporated herein by reference as indicated.
EXHIBITS (Continued)
* Amended and Restated Rights Agreement dated as of April 30, 1999 between National Fuel Gas Company and HSBC Bank USA
(Exhibit 10.2, Form 10-Q for the quarterly period ended March 31, 1999 in File No. 1-3880).
* Cerificate of Adjustment, dated September 7, 2001, to the Amended and Restated Rights Agreement dated as of April 30,
1999, between the Company and HSBC Bank USA (Exhibit 4, Form 8-K dated September 7, 2001 in File No 1-3880).
* Officers Certificate establishing 6.50% notes due 2022, dated September 18, 2002 (Exhibit 4, Form 8-K dated October 3,
2002 in File No. 1-3880).
* Officers Certificate establishing 5.25% notes due 2013, dated February 18, 2003 (Exhibit 4, Form 10-Q for the quarterly
period ended March 31, 2003 in File No. 1-3880).
D. * Tax Allocation Agreement pursuant to Rule 45(c) (Exhibit D, designated as Exhibit ex99-27 for EDGAR purposes, Form U5S
for fiscal year ended September 30, 2002.
E. *(1) Employee Relocation Manual filed pursuant to Rule 48(b) (Exhibit E(1), designated as Exhibit ex99-9 for EDGAR purposes,
Form U5S for fiscal year ended September 30, 1997).
*(2) National Fuel Employee Computer Purchase Program filed pursuant to Rule 48(b). (Exhibit E(2), designated as Exhibit
ex99-15 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1998).
(3) Independence Pipeline Company Unaudited Financial Statements for the quarter and year-to-date period ended December 31,
2002 and for the quarter and year-to-date period ended September 30, 2003 filed pursuant to Rule 16. These
documents are subject to a request for confidential treatment under Rule 104(b).
F. (1) Seneca Resources Corporation - Canadian Operations consolidating Balance Sheet and Income Statement for the period ended
September 30, 2003. Designated as Exhibit ex99-3 for EDGAR purposes.
G. *(1) Organization chart showing relationship to United Energy, a.s., a foreign utility company. (Exhibit G (1),
designated as Exhibit ex99-17 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2001.)
*(2) Organization chart showing relationship to Horizon Power, Inc., an exempt wholesale generator. (Exhibit G (2),
designated as Exhibit ex99-18 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2001.)
H. (1) United Energy, a.s. Audited Financial Statements for the Calendar Year Ended December 31, 2002. Designated as Exhibit ex99-1 for EDGAR purposes.
* Incorporated herein by reference as indicated.
EXHIBITS (Concluded)
(2) Teplarna Liberec, a.s. Audited Financial Statements for the Calendar Year Ended December 31, 2002. Designated as
Exhibit ex99-2 for EDGAR purposes.
(3) Horizon Power, Inc. Audited Financial Statements for the Fiscal Year Ended September 30, 2003. These financial statements
will be filed by amendment when available.
(4) Energy Systems North East, LLC Unaudited Financial Statements for the Fiscal Year Ended September 30, 2003.
These financial statements will be filed by amendment when available.
S I G N A T U R E
The undersigned System company has duly caused this annual report to be signed on its behalf by the undersigned thereunto duly authorized pursuant to the requirements of the Public Utility Holding Company Act of 1935.
|
NATIONAL FUEL GAS COMPANY |
EXHIBIT INDEX
ex99-1 United Energy, a.s. Audited Financial Statements for the Calendar Year Ended December 31, 2002.
ex99-2 Teplarna Liberec, a.s. Audited Financial Statements for the Calendar Year Ended December 31, 2002.
ex99-3 Seneca Resources Corporation - Canadian Operations consolidating Balance Sheet and Income Statement for the period
ended September 30, 2003.
ex99-4 Certificate of Incorporation of Highland Pipeline & Resources Corp., dated January 20, 2003.
ex99-5 Certificate of Merger of Highland Forest Resources, Inc. with and into Highland Pipeline & Resources Corp. dated
February 3, 2003.
ex99-6 By-Laws of Highland Forest Resources, Inc. (f/k/a/ Highland Pipeline & Resources Corp.).
ex99-7 By-Laws of Data-Track Account Services, Inc., as amended March 28, 2003.
ex99-8 By-Laws of National Fuel Resources, Inc. as amended March 28, 2003.
ex99-9 By-Laws of Horizon Power, Inc. as amended March 28, 2003.
ex99-10 By-Laws of Upstate Energy Inc. as amended March 28, 2003.
ex99-11 Certificate of Amendment and Articles of Amendment changing name of corporation from Player Resources LTD to Seneca
Energy Canada Inc., dated September 1, 2002.
ex99-12 Articles of Association of Sofia Energy EAD, Joint-Stock Company dated July 7, 2003.
ex99-13 Incorporation of Montenero Energia, S.r.l., a Limited Liability Company dated November 6, 2002.
ex99-14 Certificate of Formation of Toro Partner LLC dated April 30, 2003.
ex99-15 Limited Liability Company Agreement of Toro Partner LLC dated May 27, 2003.
ex99-16 Amended and Restated Certificate of Limited Partnership of Toro Partners, LP dated June 4, 2003.
ex99-17 Amended and Restated Agreement of Limited Partnership of Toro Partners, LP (undated).
ex99-18 Certificate of Formation of Toro Energy of Michigan, LLC, dated September 7, 1999.
ex99-19 Certificate of Amendment of Toro Energy of Michigan, LLC, dated July 24, 2003.
ex99-20 Amended and Restated Limited Liability Company Agreement of Toro Energy of Michigan, LLC dated June 3, 2003.
ex99-21 Certificate of Formation of Toro Energy of Ohio-Statewide, LLC dated September 9, 1999.
ex99-22 Certificate of Amendment of Toro Energy of Ohio-Statewide, LLC dated July 24, 2003.
ex99-23 Amended and Restated Limited Liability Company Agreement of Toro Energy of Ohio-Statewide, LLC dated June 3,
2003.
ex99-24 Certificate of Formation of Toro Energy of Ohio, LLC, dated September 1, 1999.
ex99-25 Certificate of Amendment of Toro Energy of Ohio, LLC, dated July 24, 2003.
ex99-26 Amended and Restated Limited Liability Company Agreement of Toro Energy of Ohio, LLC dated June 3, 2003.
ex99-27 Certificate of Formation of Toro Energy of Kentucky, LLC dated September 1, 1999.
ex99-28 Certificate of Amendment of Toro Energy of Kentucky, LLC dated July 24, 2003.
ex99-29 Amended and Restated Limited Liability Company Agreement of Toro Energy of Kentucky, LLC dated June 3, 2003.
ex99-30 Articles of Organization of Toro Energy of Missouri, LLC. dated July 21, 1999.
ex99-31 Change of Registered Agent/Registered Office, filed July 30, 2003.
ex99-32 Amended and Restated Regulations of Toro Energy of Missouri, LLC dated June 23, 2003.
ex99-33 Articles of Organization of Toro Energy of Maryland, LLC dated August 3, 1999.
ex99-34 Change of Registered Agent/Registered Office, filed July 30, 2003.
ex99-35 Amended and Restated Regulations of Toro Energy of Maryland, LLC dated June 23, 2003.
ex99-36 Articles of Organization of Toro Energy of Indiana, LLC, dated November 14, 2000.
ex99-37 Articles of Amendment to the Articles of Organization of Toro Energy of Indiana, LLC dated August 14, 2003.
ex99-38 Change of Registered Agent/Registered Office, filed July 30, 2003.
ex99-39 Amended and Restated Regulations of Toro Energy of Indiana, LLC dated June 23, 2003.
ex99-40 Articles of Organization of Toro Energy of Ohio-American, LLC, dated February 16, 2003.
ex99-41 Change of Registered Agent/Registered Office, filed July 30, 2001.
ex99-42 Amended and Restated Regulations of Toro Energy of Ohio-American, LLC dated June 23, 2003.
ex99-43 Articles of Organization of ESPC, LLC dated January 22,2003.
ex99-44 Certificate of Amendment of the Articles of Organization of ESPC, LLC dated February 3, 2003.
ex99-45 Operating Agreement of ESPC, LLC dated February 6, 2003.
ex99-46 Articles of Organization of SCPC, LLC dated February 3, 2003.
ex99-47 Operating Agreement of SCPC, LLC dated February 6, 2003.
ex99-48 Second Amended and Restated Operating Agreement between St. Clair Pipeline Company, Inc. and Empire
State Pipeline Company, Inc. dated September 27, 1996.
ex99-49 Amended and Restated Articles of Incorporation of Seneca Resources Corporation as filed September 15, 2003.