Washington, D.C.
For the Fiscal Year Ended September 30, 2002
Filed Pursuant to the
Public Utility Holding Company Act of 1935
by
10 Lafayette Square, Buffalo, N.Y. 14203
NATIONAL FUEL GAS COMPANY
FORM U5S - ANNUAL REPORT
For the Fiscal Year Ended September 30, 2002
TABLE OF CONTENTS
Page ---- ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF SEPTEMBER 30, 2002 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, 2002 12 Part II. Financial connections as of September 30, 2002 16 Part III. Compensation and other related information 16 ITEM 7. CONTRIBUTIONS AND PUBLIC RELATIONS 22 ITEM 8. SERVICE, SALES AND CONSTRUCTION CONTRACTS Part I. Intercompany sales and services (1) Salaries of officers of the Registrant 23 (2) Services rendered by Statutory Subsidiaries 24 (3) Services rendered by Registrant 30 Part II. Contracts to purchase services or goods between any System company and any affiliate 31 Part III. Employment of any person by any System company for the performance on a continuing basis of management services 31 ITEM 9. WHOLESALE GENERATORS AND FOREIGN UTILITY COMPANIES 31 ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS Financial Statements (Index) 35 Exhibits 77 SIGNATURE 89
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% $527,104 $527,104 Unsecured Debt (Note 9) - - $379,500 $379,500 National Fuel Gas Supply Corporation (Supply Corporation) (Note 2) 1,013,802 100% $303,809 $303,809 Unsecured Debt (Note 9) - - $127,400 $127,400 Seneca Resources Corporation (Seneca Resources) (Note 3) 100,000 100% $ 72,181 $ 72,181 Unsecured Debt (Note 9) - - $908,200 $908,200 National Fuel Exploration Corp. (NFE) (Note 3) 155,104,731 100% $ (8,662) $ (8,662) Unsecured Debt (Note 9) $212,152 $212,152 Empire Exploration Company, Empire 1983 Drilling Program, Empire 1983 Joint Venture (Note 10) N/A N/A $ 970 $ 970 Highland Forest Resources, Inc. (Highland) (Note 4) 4,500 100% $ 8,156 $ 8,156 Unsecured Debt (Note 9) - - $ 78,500 $ 78,500 Data-Track Account Services, Inc. (Data-Track) (Note 5) 1,000 100% $ 777 $ 777 Leidy Hub, Inc. (Leidy Hub) (Note 6) 4,000 100% $ 737 $ 737 National Fuel Resources, Inc. (NFR) (Note 7) 10,000 100% $ 38,637 $ 38,637 Horizon Energy Development, Inc. (Horizon) (Notes 8 and 11-12) 4,750 100% $ 28,834 $ 28,834 Unsecured Debt (Note 9) - - $114,400 $114,400 Sceptre Power Company *(Note 11) N/A 100% $ 3,948 $ 3,948 Horizon Energy Holdings, Inc. (HEHI)(Note 12) 2,000 100% $142,520 $142,520 Horizon Energy Development B.V. (HED B.V.)(Note 12) 400 100% $142,520 $142,520 Unsecured Debt (Note 9) - - $ 170 $ 170 United Energy, a.s. . (UE) (Note 12) 8,475,419 85.16% $132,653 $140,574 Unsecured Debt (Note 9) - - $ 34,020 $ 34,020 Teplarna Liberec, a.s. (TL) (Note 12) 70 70% $ 11,111 $ 10,176
Number of Common Percent of Issuer Owner's Name of Company Shares Owned Voting Power Book Value Book Value --------------- ---------------- ------------ ---------- ---------- Registrant: (Thousands of Dollars) Lounske tepelne Hospodarstvi, s.r.o (LTH) (Note 12) N/A 100% $ - $ - Teplo Branany, s.r.o. (TB) (Note 12) N/A 49% $ 2 $ 2 ENOP Company, s.r.o. (ENOP)(Note 12) N/A 100% $ 457 $ 550 Horizon Energy Development, s.r.o. (HED) (Note 12) N/A 100% $ 2,895 $ 2,895 Upstate Energy Inc. (Upstate) (Note 13) 1,000 100% $ 233 $ 233 Unsecured Debt (Note 9) - - $ 6,400 $ 6,400 Seneca Independence Pipeline Company (SIP) (Note 14) 1,000 100% $ (9,610) $ (9,610) Unsecured Debt (Note 9) - - $ 14,100 $ 14,100 Niagara Independence Marketing Company (NIM) (Note 15) 1,000 100% $ 1 $ 1 Horizon Power, Inc. (Power) (Note 16) 1,000 100% $ 5,142 $ 5,142 Unsecured Debt (Note 9) - - $ 18,500 $ 18,500 Seneca Energy II, LLC (Seneca Energy) N/A 50% (Note 16) (Note 16) Model City Energy, LLC (Model City) N/A 50% (Note 16) (Note 16) Energy Systems North East, LLC (ESNE) N/A 50% (Note 16) (Note 16)Notes:
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 Owners 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: 7.48% Due February 18, 2003 $ 50,000 $ 50,000 $ 50,000 7.99% Due February 1, 2004 100,000 100,000 100,000 6.79% Due September 15, 2022 29,310 29,310 29,310 7.46% Due March 30, 2023 49,000 49,000 49,000 8.55% Due July 15, 2024 20,000 20,000 20,000 7.50% Due June 13, 2025 50,000 50,000 50,000 6.26% Due August 12, 2027 690 690 690 2.04% System Money Pool(1) 80,500 80,500 80,500 ---------- ---------- ---------- 379,500 379,500 379,500 ---------- ---------- ---------- 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 6.79% Due September 15, 2022 9,770 9,770 9,770 8.55% Due July 15, 2024 30,000 30,000 30,000 6.26% Due August 12, 2027 230 230 230 2.04% System Money Pool(1) 12,400 12,400 12,400 ---------- ---------- ---------- 127,400 127,400 127,400 ---------- ---------- ---------- Seneca Resources Intercompany Notes: 7.48% Due February 18,2003 100,000 100,000 100,000 6.95% Due August 1, 2004 50,000 50,000 50,000 6.39% Due May 27, 2008 120,000 120,000 120,000 6.18% Due March 1, 2009 100,000 100,000 100,000 7.70% Due October 22, 2010 200,000 200,000 200,000 6.82% Due November 21, 2011 120,000 120,000 120,000 6.79% Due September 15, 2022 48,850 48,850 48,850 6.26% Due August 12, 2027 1,150 1,150 1,150 2.04% System Money Pool(1) 168,200 168,200 168,200 ---------- ---------- ---------- 908,200 908,200 908,200 ---------- ---------- ---------- NFE 2.04% Line of Credit 212,152 212,152 212,152 2.04% Short-Term Bank Loan 9,108 9,108 9,108 ---------- ---------- ---------- 221,260 221,260 221,260 ---------- ---------- ---------- Highland 6.82% Due November 21, 2011 30,000 30,000 30,000 2.04% System Money Pool(1) 48,500 48,500 48,500 ---------- ---------- ---------- 78,500 78,500 78,500 ---------- ---------- ---------- Horizon Intercompany Notes: 6.26% Due August 12, 2027 230 230 230 6.39% Due May 27, 2008 80,000 80,000 80,000 6.79% Due September 15, 2020 9,770 9,770 9,770 2.05% Line of credit(2) 24,400 24,400 24,400 ---------- ---------- ---------- 114,400 114,400 114,400 ---------- ---------- ----------
Principal Issuer Owner's Name of Company Amount Book Book (Issuer) Security Owned by Registrant Owed Value Value --------------- ---------------------------- ---------- ---------- --------- (Thousands of Dollars) ---------------------------------- Horizon Energy Development B.V. (HED B.V.) 2.05% Line of Credit(2) 170 170 170 ---------- ---------- ---------- UE 3.56%(3) Payable Quarterly Through June 2006 2,246 2,246 2,246 3.26% Short-Term Bank Loan 2,278 2,278 2,278 4.345% (4) Payable Quarterly Through December 2004 13,225 13,225 13,225 6.35% Payable Quarterly Through September 2006 16,271 16,271 16,271 ---------- ---------- ---------- 34,020 34,020 34,020 ---------- ---------- ---------- Upstate 2.04% System Money Pool(1) 6,400 6,400 6,400 ---------- ---------- ---------- SIP 2.04% System Money Pool(1) 14,100 14,100 14,100 ---------- ---------- ---------- Horizon Power Inc. 2.05% Line of Credit(2) 18,500 18,500 18,500 ---------- ---------- ---------- $1,902,450 $1,902,450 $1,902,450 ========== ========== ==========
None during fiscal year ended September 30, 2002.
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: 6.70% Note maturing November 21, 2011 Registrant 150,000 File No. 70-9153 6.50% Note maturing September 15, 2022 Registrant 97,700 File No. 70-9153 6.214% Note maturing August 12, 2027* Registrant 97,700 97,700 Rule 42 Subsidiaries of Registered Holding Company: Seneca Resources: 6.82% Note maturing Seneca November 21, 2011 Resources 120,000 120,000 File No. 70-9153 6.79% Note maturing Seneca September 15, 2022 Resources 48,850 48,850 File No. 70-9153 6.26% Note maturing Seneca August 12, 2027* Resources 48,850 48,850 Rule 42 Highland: 6.82% Note maturing November 21, 2011 Highland 30,000 30,000 File No. 70-9153 Distribution Corporation: 6.79% Note maturing Distribution September 15, 2022 Corporation 29,310 29,310 File No. 70-9153 6.26% Note maturing Distribution August 12, 2027* Corporation 29,310 29,310 Rule 42 Supply Corporation: 6.79% Note maturing Supply September 15, 2022 Corporation 9,770 9,770 File No. 70-9153 6.26% Note maturing Supply August 12, 2027* Corporation 9,770 9,770 Rule 42 Horizon: 6.79% Note maturing September 15, 2022 Horizon 9,770 9,770 File No. 70-9153 6.26% Note maturing August 12, 2027* Horizon 9,770 9,770 Rule 42
* On August 12, 2002, the holders of this medium-term note issuance exercised a one-time put option. As a result of this exercise, $97.7 million of the $100.0 million issuance was redeemed by the Registrant at par. The Registrant also exercised its one-time put option which caused Seneca Resources, Distribution Corporation, Supply Corporation and Horizon to redeem $48.850 million, $29.310 million, $9.770 million and $9.770, respectively, at par.
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 Buffalo, NY (1) |COB,CEO,D,P, s | D, s | D, s | D, s | D, s | ------------------------------------------------------------------------------------------------------------- B. J. Kennedy Buffalo, NY (1) | D, df, s | - | - | - | - | ------------------------------------------------------------------------------------------------------------- B. S. Lee Des Plaines, IL (2) | D, df | - | - | - | - | ------------------------------------------------------------------------------------------------------------- G. L. Mazanec Houston, TX (3) | D, df | - | - | - | - | ------------------------------------------------------------------------------------------------------------- J. F. Riordan Des Plaines, IL (17)| D, df | - | - | - | - | ------------------------------------------------------------------------------------------------------------- E. T. Mann Buffalo, NY (1) | D, df | - | - | - | - | ------------------------------------------------------------------------------------------------------------- R. T. Brady Buffalo, NY (4) | D, df | - | - | - | - | ------------------------------------------------------------------------------------------------------------- W. J. Hill Buffalo, NY (1) | D, df | D | - | - | - | ------------------------------------------------------------------------------------------------------------- J. V. Glynn Niagara Falls, NY (9) | D, df | - | - | - | - | ------------------------------------------------------------------------------------------------------------- R E. Kidder Jamestown, NY (24)| D, df | - | - | - | - | ------------------------------------------------------------------------------------------------------------- J. R. Peterson Buffalo, 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 | ------------------------------------------------------------------------------------------------------------- D. A. Brown Houston, TX (5) | - | - | - | VP, s | - | ------------------------------------------------------------------------------------------------------------- J. F. McKnight Houston, TX (5) | - | - | - | VP, s | - | ------------------------------------------------------------------------------------------------------------- B. L. McMahon Santa Paula, CA (6) | - | - | - | SVP, s | - | ------------------------------------------------------------------------------------------------------------- A. M. Cellino Buffalo, NY (1) | S, s | SVP, S, s | D, s | - | - | ------------------------------------------------------------------------------------------------------------- P. M. Ciprich Buffalo, NY (1) | s | AS, GC, s | - | - | - | ------------------------------------------------------------------------------------------------------------- W. E. DeForest Buffalo, NY (1) | - | SVP, D, s | - | - | - | ------------------------------------------------------------------------------------------------------------- B. H. Hale Buffalo, NY (1) | - | - | D, SVP - | - | - | ------------------------------------------------------------------------------------------------------------- J. P. Pawlowski Buffalo, NY (1) | T, s | D, SVP, T, s | T, S, s | s | s | ------------------------------------------------------------------------------------------------------------- J. R. Pustulka Buffalo, NY (1) | - | s | D, SVP, s | - | - | ------------------------------------------------------------------------------------------------------------- J. D. Ramsdell Buffalo, NY (1) | - | D, SVP, s | s | s | - | ------------------------------------------------------------------------------------------------------------- D. J. Seeley Buffalo, NY (1) | - | SVP, s | P, D, s | - | - | ------------------------------------------------------------------------------------------------------------- D. F. Smith Buffalo, NY (1) | - | P, D, s | SVP, s | D | - | ------------------------------------------------------------------------------------------------------------- R. J. Tanski Buffalo, NY (1) | - | D, SVP, C, s | s | s | s | ------------------------------------------------------------------------------------------------------------- G. T. Wehrlin Buffalo, NY (1) | C, s | - | - | C | - | ------------------------------------------------------------------------------------------------------------- C. M. Carlotti Erie, PA (16)| - | VP, s | - | - | - | ------------------------------------------------------------------------------------------------------------- D. L. DeCarolis Williamsville, NY (12)| - | - | - | - | - | ------------------------------------------------------------------------------------------------------------- J. F. Kronenwetter Buffalo, NY (1) | - | - | - | - | - | ------------------------------------------------------------------------------------------------------------- R. E. Klein Buffalo, NY (1) | - | AC, s | s | s | s | ------------------------------------------------------------------------------------------------------------- S. Wagner Buffalo, NY (1) | s | AT, s | s | s | s | ------------------------------------------------------------------------------------------------------------- B. Heine Buffalo, NY (1) | - | AVP, s | - | - | - | ------------------------------------------------------------------------------------------------------------- J. Lesch Buffalo, NY (18)| - | AVP, s | s | - | - | ------------------------------------------------------------------------------------------------------------- D. Wassum Buffalo, NY (1) | - | - | - | - | - | ------------------------------------------------------------------------------------------------------------- R. C. Kraemer Buffalo, NY (1) | - | - | - | - | - | ------------------------------------------------------------------------------------------------------------- Position Symbol Key ------------------------------------------------------------------ COB - Chairman of the Board of Directors S - Secretary CEO - Chief Executive Officer AS - Assistant Secretary P - President C - Controller EVP - Executive Vice President AC - Assistant Controller SVP - Senior Vice President D - Director VP - Vice President s - Salary AVP - Assistant Vice President T - Treasurer GC - General Counsel AT - Assistant Treasurer df - Director's Fees See page 15 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.*** ---------------------------------------------------------------------------------------------- D, s| s | P, D, s | D | - | D | D | - | ---------------------------------------------------------------------------------------------- - | - | - | - | - | - | - | - | ---------------------------------------------------------------------------------------------- - | - | - | - | - | - | - | - | ---------------------------------------------------------------------------------------------- - | - | - | - | - | - | - | - | ---------------------------------------------------------------------------------------------- - | - | - | - | - | - | - | - | ---------------------------------------------------------------------------------------------- - | - | - | - | - | - | - | - | ---------------------------------------------------------------------------------------------- - | - | - | - | - | - | - | - | ---------------------------------------------------------------------------------------------- - | - | - | - | - | - | - | - | ---------------------------------------------------------------------------------------------- - | - | - | - | - | - | - | - | ---------------------------------------------------------------------------------------------- - | - | - | - | - | - | - | - | ---------------------------------------------------------------------------------------------- - | - | - | - | - | - | s | - | ---------------------------------------------------------------------------------------------- - | - | - | - | P, D | D, P | - | - | ---------------------------------------------------------------------------------------------- S, T | - | - | - | S | S | - | S, T | ---------------------------------------------------------------------------------------------- - | - | - | - | T | T | - | - | ---------------------------------------------------------------------------------------------- - | - | - | - | - | - | - | - | ---------------------------------------------------------------------------------------------- - | - | - | - | - | - | - | - | ---------------------------------------------------------------------------------------------- - | - | - | - | - | - | - | - | ---------------------------------------------------------------------------------------------- - | - | - | - | - | - | - | - | ---------------------------------------------------------------------------------------------- - | - | - | - | - | - | - | - | ---------------------------------------------------------------------------------------------- - | - | - | D, P, s | - | - | P, S, T | - | ---------------------------------------------------------------------------------------------- - | - | VP, s | - | - | - | - | D, P, s| ---------------------------------------------------------------------------------------------- - | s | - | - | - | - | - | - | ---------------------------------------------------------------------------------------------- - | - | - | - | - | - | - | - | ---------------------------------------------------------------------------------------------- s | s | - | - | - | - | - | - | ---------------------------------------------------------------------------------------------- - | - | - | - | - | - | - | - | ---------------------------------------------------------------------------------------------- P, D | D | - | - | - | - | - | D | ---------------------------------------------------------------------------------------------- - | s | T, S, s | - | - | - | - | - | ---------------------------------------------------------------------------------------------- D |T, P, D, s | VP, s | D, S, T | - | - | - | D | ---------------------------------------------------------------------------------------------- - | - | - | - | - | - | - | - | ---------------------------------------------------------------------------------------------- - | S, VP, s | - | - | - | - | - | - | ---------------------------------------------------------------------------------------------- - | - | AVP, s | - | - | - | - | - | ---------------------------------------------------------------------------------------------- - | s | - | - | - | - | - | - | ---------------------------------------------------------------------------------------------- - | s | s | - | - | - | - | - | ---------------------------------------------------------------------------------------------- - | - | - | - | - | - | - | - | ---------------------------------------------------------------------------------------------- - | - | - | - | - | - | - | - | ---------------------------------------------------------------------------------------------- - | - | AVP, s | - | - | - | - | - | ---------------------------------------------------------------------------------------------- - | - | AVP, s | - | - | - | - | AVP| ----------------------------------------------------------------------------------------------Notes* Officers and directors of Seneca Resources' subsidiaries as of September 30, 2002 were as follows: National Fuel Exploration Corp. Board of Directors and Officers: P. C. Ackerman (Director) Buffalo, NY (1) D. H. Ibach (President & Director) Calgary, Alberta (19) J. A. Beck (Director) Houston, TX (5) J. B. McCashin (Director) Calgary, Alberta (19) D. Conrad (Secretary) Calgary, Alberta (19) W. Dummer (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) Player Resources Ltd. Board of Directors and Officers: P. C. Ackerman (Director) Buffalo, 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) W. Dummer (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 (Director) Houston, TX (5) Seneca New Brunswick L.P. 3062783 Nova Scotia Company (General Partner) Halifax, Nova Scotia (25) 3062782 Nova Scotia Company (Initial Limited Partner) Halifax, Nova Scotia (25) ** Officers and directors of Horizon's subsidiaries as of September 30, 2002 were as follows: Horizon Energy Holdings, Inc. Board of Directors and Officers: P. C. Ackerman (Director and President) Buffalo, NY (1) B. H. Hale (Vice President) Buffalo, NY (1) G. T. Wehrlin (Vice President) Buffalo, NY (1) R. J. Tanski (Secretary and Treasurer) Buffalo, NY (1) Horizon Energy Development, B.V. Managing Directors: B. H. Hale Buffalo, NY (1) G. T. Wehrlin Buffalo, NY (1) Intra Beheer B.V. Amsterdam, The Netherlands (8) Horizon Energy Development, s.r.o. Managing Director: B. H. Hale Buffalo, NY (1) Statutory Agents: L. Jarolimek Prague, Czech Republic (7) A. Novak Prague, Czech Republic (7) Note: There are pending requests in the Register Court to record deletion of L. Jarolimek and A. Novak as of June 2002, March 2002 respectively, and to record V. Miskovsky as their only replacement (June 2002). 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 (since June 30, 2002) Prague, Czech Replublic (7) L. Zapletal Most, Czech Republic (14) See page 15 for Notes Lounske tepelne hospodarstvi, s.r.o. Statutory Agents: R. Jiruska Bilina, Czech Republic (14) F. Jicha Louny, Czech Republic (26) Teplo Branany, s.r.o. Managing Directors: R. Jiruska Bilina, Czech Republic (14) V. Krupka Branany, Czech Republic (15) United Energy, a.s. Board of Directors: L. Zapletal Most, Czech Republic (14) B. H. Hale Buffalo, NY (1) G. T. Wehrlin Buffalo, NY (1) P. C. Ackerman Buffalo, NY (1) R. J. Tanski Buffalo, NY (1) J. Sulc Most, Czech Republic (22) E. Volkman Louny, Czech Republic (23) J. Masinda Prague, Czech Republic (7) D. A. Wassum (since June 27, 2002) Bufflao, NY (1) ENOP Company, s.r.o. Statutory Agents: R. Kocar Most, Czech Republic (14) K. Stejskal Most, Czech Republic (14) J. Stepanek Most, Czech Republic (14) Horizon Energy Bulgaria Ltd. Manager: B. H. Hale Buffalo, NY (1) *** Officers of Power's subsidiaries as of September 30, 2002 included the following persons (because Power's subsidiaries are not wholly owned directly or indirectly by the Registrant or any system company, disclosure is limited to those officers who are directly employed by the Registrant or its system companies): Seneca Energy II, LLC B. H. Hale (Secretary and Chief Financial Officer) Buffalo, NY (1) Model City Energy, LLC B. H. Hale (Chief Financial Officer) Buffalo, NY (1) Energy Systems North East, LLC B. H. Hale (President) Buffalo, NY (1) K. D. Cotter (Vice President) Buffalo, NY (1) P. L. Malachowski (Treasurer) Buffalo, NY (1)
Position Held Applicable Name of Officer Name and Location of in Financial Exemption or Director Financial Institution Institution Rule --------------- --------------------- ------------- ------------- R. T. Brady Manufacturers and Traders Trust Company, Buffalo, New York Director 70 (a) M&T Bank Corporation, Buffalo, New York Director 70 (a) G. L. Mazanec Northern Trust Bank of Texas, Dallas, Texas Director 70 (a) J. V. Glynn Manufacturers and Traders Trust Company, Buffalo, New York Director 70 (a) M&T Bank Corporation, Buffalo, New York Director 70 (a)Part III. Compensation and other related information:
The information required by this item appears under "Directors' Compensation," and "Executive Compensation," on page 6 and pages 11 to 18, respectively, of the National Fuel Gas Company Proxy Statement, dated January 10, 2003, included as Exhibit A (3) to this Form U5S and is incorporated herein by reference.
The information required by this item appears under "Security Ownership of Certain Beneficial Owners and Management," on pages 8 and 9 of the National Fuel Gas Company Proxy Statement, dated January 10, 2003, 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 2002.
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 6 and pages 11 to 18, respectively, of the National Fuel Gas Company Proxy Statement, dated January 10, 2002, included as Exhibit A(3) to this Form U5S and 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, 2002 --------------- ----------------- ------- -------------------------- ------------------ 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 $ 7,892 Distribution Corporation N/A *NYPAC Misc. Income Deductions $ 6,661 Distribution Corporation N/A *PAPAC Misc. Income Deductions $ 5,342 Supply Corporation N/A *FEDPAC Misc. Income Deductions $ 3,291 Supply Corporation N/A *NYPAC Misc. Income Deductions $ 2,061 Supply Corporation N/A *PAPAC Misc. Income Deductions $ 2,835 * Company labor and expenses relating to administration of political action funds. (2) Any citizens group or public relations counsel: Distribution Corporation 32 Beneficiaries Civic Operation Expense $ 13,715 Seneca Resources 2 Beneficiaries Civic Operation Expense $ 819 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 servicesNATIONAL FUEL GAS COMPANY ------------------------- REPORT OF OFFICERS' SALARIES ---------------------------- FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 -------------------------------------------- Distribution Supply Seneca Data- Parent Corp. Corp. Resources Highland Horizon Track NFR Total ------ ------------ ------ --------- -------- ------- ----- --- ----- P. C. Ackerman $68,162 $268,625 $268,625 $111,288 $7,675 $41,175 $ 975 $ 975 $767,500 A. M. Cellino 10,712 128,918 74,620 - - - - - 214,250 J. P. Pawlowski 13,525 159,907 76,651 18,245 1,967 - - 205 270,500 G. T. Wehrlin 27,000 - - - - 182,175 - 60,825 270,000
ITEM 8. SERVICE, SALES AND CONSTRUCTION CONTRACTS (Continued)
Part I. Intercompany sales and services (Continued)DISTRIBUTION CORPORATION ------------------------ REPORT OF INTERCOMPANY SALES AND SERVICES ----------------------------------------- FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 -------------------------------------------- (THOUSANDS OF DOLLARS) ---------------------- Common Expenses -------------------------------------------------------------------------------------- Corporate Materials Accounts Receiving Company Executive Purchasing Communications Management Accounting Payable ----------------- --------- ---------- -------------- ---------- ---------- ------- Supply Corporation $ 291 $218 $145 $ 8 $ 863 $242 Seneca Resources 333 - 42 - 213 - UCI - - - - - - Highland 40 - 5 - 23 - Data-Track - - - - - - NFR 4 - 1 - 2 - Leidy Hub - - - - - - Horizon - - - - - - Parent Company - - - - - - NIM - - - - - - Upstate Energy - - - - - - ------ ---- ---- --- ------ ---- $ 668 $218 $193 $ 8 $1,101 $242 ====== ==== ==== === ====== ==== Common Expenses -------------------------------------------------------------------------------------- Data Human Government Benefit Receiving Company Processing Resources Legal Finance Affair Services CPR ----------------- ---------- --------- ----- ------- ---------- -------- --- Supply Corporation $101 $364 $ 93 $617 $38 $159 $106 Seneca Resources - 59 107 133 - 183 - UCI - - - - - - - Highland - 7 13 14 - 22 - Data-Track - - - - - - - NFR - 1 1 2 - 2 - Leidy Hub - - - - - - - Horizon - - - - - - - Parent Company - - - - - - - NIM - - - - - - - Upstate Energy - - - - - - - ---- ---- ---- ---- --- ---- ---- $101 $431 $214 $766 $38 $366 $106 ==== ==== ==== ==== === ==== ==== 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 $131 $3,376 $4,647 $5,116 $ 9,782 $22,921 Seneca Resources - 1,070 179 466 662 2,377 UCI - - - - 4 4 Highland - 124 32 33 186 375 Data-Track - - 1 3 14 18 NFR - 13 35 158 221 427 Leidy Hub - - 1 4 - 5 Horizon - - 156 958 17 1,131 Parent Company - - 90 434 4,128 4,652 NIM - - - - - - Upstate Energy - - - - - - ---- ------ ------ ------ ------- ------- $131 $4,583 $5,141 $7,172 $15,014 $31,910 ==== ====== ====== ====== ======= ======= * Analysis of Clearing Charges, Direct Charges & Convenience or Accommodation Payments is presented on pages 25 and 26.
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, 2002 -------------------------------------------- (THOUSANDS OF DOLLARS) ---------------------- Clearing Charges ----------------------------------------------------------------------------------------- Material Total Officer Issue & Data Messenger Clearing Receiving Company Clearing Transfer Telecommunications Rental Postage Processing Expense Charges ----------------- -------- -------- ------------------ ------ ------- ---------- --------- -------- Supply Corporation $252 $1,975 $229 $41 $ 3 $2,035 $112 $4,647 Seneca Resources 78 - 29 - - 70 2 179 UCI - - - - - - - - Highland 15 - - - - 8 9 32 Data-Track - - 1 - - - - 1 NFR 15 - 9 - - 1 10 35 Leidy Hub 1 - - - - - - 1 Horizon 156 - - - - - - 156 Parent Company 87 - - - 1 2 - 90 NIM - - - - - - - - Upstate Energy - - - - - - - - ---- ------ ---- --- --- ------ ---- ------ $604 $1,975 $268 $41 $ 4 $2,116 $133 $5,141 ==== ====== ==== === === ====== ==== ====== Direct Charges ----------------------------------------------------------------------------------------- Telecom- Environment Contract Receiving Company Land MMD munications Insurance Operations Administration Accounting ----------------- ----- --- ----------- ----------- ---------- -------------- ---------- Supply Corporation $386 $228 $40 $422 $2,263 $23 $ - Seneca Resources 20 - 1 30 11 - 5 UCI - - - - - - - Highland - - - 5 - - - Data-Track - - - - - - - NFR - - - 1 - - 1 Leidy Hub - - - - - - - Horizon - - - 17 - - 40 Parent Company - - - 39 5 - 74 NIM - - - - - - - Upstate Energy - - - - - - - ---- ---- --- ---- ------ --- ---- $406 $228 $41 $514 $2,279 $23 $120 ==== ==== === ==== ====== === ==== Direct Charges ----------------------------------------------------------------------------------------- Government Rates & Human Receiving Company Legal Affairs Finance Executive Regulation Resources ----------------- ----- ---------- ------- --------- ---------- --------- Supply Corporation $47 $240 $160 $1,032 $- $ 29 Seneca Resources 1 1 90 298 1 - UCI - - - - - - Highland 1 - - 27 - - Data-Track - - - 3 - - NFR 15 - 18 123 - - Leidy Hub - - - 4 - - Horizon - - 233 667 - - Parent Company - - 66 242 - - NIM - - - - - - Upstate Energy - - - - - - --- ---- ---- ------ -- ---- $64 $241 $567 $2,396 $1 $ 29 === ==== ==== ====== == ==== Direct Charges ----------------------------------------------------------------------------------------- Total Benefit Quality Gas Direct Receiving Company Services Engineering Assurance DPC Storage Charges ----------------- -------- ----------- --------- --- ------- ------- Supply Corporation $21 $181 $44 $ - $ - $5,116 Seneca Resources 1 - - - 7 466 UCI - - - - - - Highland - - - - - 33 Data-Track - - - - - 3 NFR - - - - - 158 Leidy Hub - - - - - 4 Horizon - - - 1 - 958 Parent Company 8 - - - - 434 NIM - - - - - - Upstate Energy - - - - - - --- ---- --- --- --- ------ $30 $181 $44 $ 1 $ 7 $7,172 === ==== === === === ======
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, 2002 -------------------------------------------- (THOUSANDS OF DOLLARS) ---------------------- Receiving Company --------------------------------------------------------------------------------------- Parent Supply Seneca Data- Company Corporation Resources UCI Track Highland NFR Horizon ------- ----------- --------- --- ----- -------- --- ------- Material $ (11) $ 346 $ 32 $ - $ - $ - $ - $ 1 Rents - - - - - - - - Transportation - 31 - - - - - - Utilities - 1,585 71 - 13 - 14 - Contractors & Outside Services 547 1,267 42 - - 7 1 3 Equipment Purchases & Rentals 1 567 - - - - 1 1 Employee Benefits 3,416 2,959 - - - 5 112 - Office Expense 2 449 4 - - - 2 6 Dues & Subscriptions - 282 - - - - - - Other Insurance - 403 502 - - 88 22 2 Injuries & Damages 10 119 - 4 - 85 - - Other 163 1,749 11 - 1 1 69 4 Advertising - 6 - - - - - - Postage - 11 - - - - - - Environmental - 8 - - - - - - Land Acquisitions - - - - - - - - ------ ------- ------ ---- --- ---- ---- --- $4,128 $ 9,782 $ 662 $ 4 $14 $186 $221 $17 ====== ======= ====== ==== === ==== ==== === Receiving Company --------------------------------------- Total ----- Material $ 368 Rents - Transportation 31 Utilities 1,683 Contractors & Outside Services 1,867 Equipment Purchases & Rentals 570 Employee Benefits 6,492 Office Expense 463 Dues & Subscriptions 282 Other Insurance 1,017 Injuries & Damages 218 Other 1,998 Advertising 6 Postage 11 Environmental 8 Land Acquisition - ------- $15,014 =======
ITEM 8. SERVICE, SALES AND CONSTRUCTION CONTRACTS
Part I. Intercompany sales and services (Continued)REPORT OF INTERCOMPANY SALES AND SERVICES ----------------------------------------- FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 -------------------------------------------- (THOUSANDS OF DOLLARS) ---------------------- Clearing Accounts Direct Charges -------------------------------------------------------- ------------------------- Material Total Executive DPC Production Issue & Rental Clearing Interstate Receiving Company Clearing Clearing Clearing Transfer Clear Charges MMD Marketing Finance ----------------- --------- -------- ----------- -------- ------ -------- --- ---------- ------- Distribution Corp. $35 $(1) $ - $ 926 $2,754 $3,714 $60 $ 7 $ - Seneca Resources 3 - 176 4 - 183 - - - Horizon 33 - - - 44 77 - 25 28 Highland - - - - - - - - - Data Track - - - - - - - - - NFR - - - - - - - - - Leidy Hub - - - - - - - - - Parent Company 18 - - - 8 26 - - 139 Upstate Energy - - - - - - - - - NIM 1 - - - - 1 - - - --- --- ---- ------ ------ ------ --- --- ---- $90 $(1) $176 $ 930 $2,806 $4,001 $60 $32 $167 === ==== ==== ====== ====== ====== === === ==== Direct Charges Continued --------------------------------------------------------------------------------- Govt. Gas Benefit Human Gas Receiving Company Affairs Storage Services Engineering Resources Land Control Executive ----------------- ------- ------- -------- ----------- --------- ---- ------- --------------- Distribution Corp. $ - $ 7 $578 $ 40 $ 64 $164 $1,120 $1,102 Seneca Resources - 100 21 - - 55 - 49 Horizon - - 16 - - 2 - 665 Highland - - 4 - 16 - - 7 Data Track - - 8 - - - - 10 NFR - - 8 - 10 - - 13 Leidy Hub - - - - - - - - Parent Company 1 - 141 - - - - 352 Upstate Energy - - - - - - - - NIM - - - - - - - 10 ---- ---- ---- --- ---- ---- ----- ----- $ 1 $107 $776 $ 40 $ 90 $221 $1,120 $2,208 ==== ==== ==== ==== ==== ==== ====== ====== Operations, Total Services Construction Total Total Convenience or Rendered By & Customer Direct Clearing Accommodation Statutory Receiving Company Service Legal Charges Charges Payments* Subsidiaries ----------------- ------------ ----- ------- -------- -------------- ------------- Distribution Corp. $1,666 $108 $4,916 $3,714 $1,294 $ 9,924 Seneca Resources 72 - 297 183 67 547 Horizon - 85 821 77 6 904 Highland - - 27 - 1 28 Data Track - - 18 - 2 20 NFR - - 31 - 2 33 Leidy Hub - - - - - - Parent Company - 15 648 26 1,881 2,555 Upstate Energy - - - - - - NIM - - 10 1 - 11 ----- ---- ------ ------ ------ ------- $1,738 $208 $6,768 $4,001 $3,253 $14,022 ====== ==== ====== ====== ====== ======= * Analysis of Convenience or Accommodation Payments is presented on page 28.
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, 2002 -------------------------------------------- (THOUSANDS OF DOLLARS) ---------------------- Receiving Company ---------------------------------------------------------- Parent Distribution Seneca Horizon Company Corporation Resources Energy Highland ------- ------------ --------- ------- -------- Material $ 14 $ 35 $ - $4 $ - Rents - - - - - Transportation - 7 1 - - Utilities - 283 - - - Contractors & Outside Services 74 693 55 1 - Equipment Purchases & Rentals - - - - - Employee Benefits 1,739 163 6 - 1 Office Expense - 47 3 1 - Dues & Memberships - 34 - - - Other 54 27 2 - - Other Insurance - - - - - Postage - - - - - Advertising - 1 - - - Environmental - 1 - - - Injuries & Damages - 3 - - - ------ ------ --- -- --- $1,881 $1,294 $67 $6 $ 1 ====== ====== === == ==== Receiving Company -------------------------------------- Data- Upstate Track NFR Leidy Hub Energy NIM Total ----- --- --------- ------- --- ----- Material $- $ - $- $- $ - $ 53 Rents - - - - - - Transportation - - - - - 8 Utilities - - - - - 283 Contractors & Outside Services - - - - - 823 Equipment Purchases & Rentals - - - - - - Employee Benefits 2 2 - - - 1,913 Office Expense - - - - - 51 Dues & Memberships - - - - - 34 Other - - - - - 83 Other Insurance - - - - - - Postage - - - - - - Advertising - - - - - 1 Environmental - - - - - 1 Injuries & Damages - - - - - 3 -- --- -- -- --- ------ $2 $ 2 $- $- $ - $3,253 == === == == === ======
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, 2002 -------------------------------------------- (THOUSANDS OF DOLLARS) ---------------------- Total Services Convenience or Rendered By Timber Accommodation Statutory Receiving Company Sales Operations Payments Subsidiaries ----------------- ------ ---------- -------------- ------------ Supply Corporation $ - $ 670 $ 74 $ 744 Highland 15,541 - - 14,541 NFR - - - - Upstate Energy - - - - Parent Company - - - - NFE - - 514 514 Horizon - - 4 4 ------- ------ ---- ------- $15,541 $ 670 $592 $15,803 ======= ====== ==== ======= ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS ------------------------------------------------- Receiving Company ------------------------------------------------------------------------------------ Supply Highland Horizon Corporation NFR NFE Total -------- ------- ------------ --- -------- ----- Other $- $4 $74 $ - $514 $592 -- -- --- --- ---- ---- $- $4 $74 $ - $514 $592 == == === === ==== ====
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, 2002 -------------------------------------------- (THOUSANDS OF DOLLARS) ---------------------- Total Services Rendered By Convenience Statutory Receiving Company Operation Payments Subsidiaries ----------------- --------- ----------- ------------- Seneca Resources $204 $220 $424 Supply Corporation - - - ---- ---- ---- $204 $220 $424 ==== ==== ==== DATA-TRACK ---------- REPORT OF INTERCOMPANY SALES AND SERVICES ----------------------------------------- FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 -------------------------------------------- (THOUSANDS OF DOLLARS) ---------------------- Total Services Rendered by Collection Statutory Receiving Company Services Subsidiaries ----------------- ---------- --------------- Distribution Corporation $524 $524 NFR 6 6 ---- ---- $530 $530 ==== ==== (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, 2002
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,
2002: |
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 $ 151,990 consulting services for Highland. Joseph Maljovec Performs management and $ 70,488 consulting services for Highland. Enterprise Risk Performs financial advisory Retainer of Management, Inc. and consulting services for $ 92,450 the Registrant regarding placement of insurance cover- ages and participates in management or facilitation of claims. Enfield Operating, Performs production management $1,519,000 LLC. services for Seneca Resources with respect to Gulf of Mexico properties. Robert C. Williams Performs management and real $ 139,165 estate consulting services for Seneca Resources. Pat Carroll Perform petroleum engineering $ 33,338 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 $142,520,000 as of September 30, 2002. HEHI owns 100% of the capital stock of HEDBV, which investment was valued at $142,520,000 as of September 30, 2002. HEDBV owns 85.16% of the capital stock of UE, and such investment was valued at $140,574,000 as of September 30, 2002. UE owns 70% of the capital stock of TL, and such investment was valued at $10,176,000 as of September 30, 2002. The financial statements of Horizon and its subsidiaries are found on pages 57 through 76 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 24.20% as of September 30, 2002. TL had no debt outstanding at September 30, 2002. The earnings (loss) of UE and TL for the twelve months ended September 30, 2002 (net of minority interest) were $4,044,000 and $(99,000), respectively. The financial statements of UE and TL are found on pages 57 through 76 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 (Continued)
2. Teplarna Kromeriz, a.s. (a) Teplarna Kromeriz, a.s. (Kromeriz) Na Sadkach 3572 767 01 Kromeriz Czech Republic Kromeriz generated and supplied steam heat to customers in the Czech Republic. It had been designated as a foreign utility company because it had developed initial plans to add a 38 MW simple-cycle electric generating unit on its site. Due to the general decline in business conditions in the service territory of Kromeriz, and a dwindling number of customers, HEDBV determined to place Kromeriz in liquidation effective November 15, 2001. The liquidation of Kromeriz was completed as of June 17, 2002, when the liquidating agent caused the ownership interest of Kromeriz to be sold to a third party, ANDPH, a.s., and HEDBV received approval to remove Kromeriz from the Czech Commercial Register. B. Interests in Exempt Wholesale Generators 1. Horizon Power, Inc. (a) Horizon Power, Inc. (Power) 10 Lafayette Square Suite 1100 Buffalo, New York 14203 Power has been designated as an exempt wholesale generator by the Federal Energy Regulatory Commission and owns a 50% interest in each of Seneca Energy II, LLC (Seneca Energy), Model City Energy, LLC (Model City) and Energy Systems North East, LLC (ESNE). Seneca Energy has a generating capacity of approximately 11.2 MW and generates electricity using methane gas obtained from a landfill near Seneca Falls, New York. Model City has a generating capacity of approximately 5.6 MW and generates electricity in the same manner, from a landfill near Lewiston, New York. The landfills are owned by outside parties. Seneca Energy sells its electricity at wholesale to an unaffiliated public utility. Model City sells its electricity at wholesale to the New York Independent System Operator. ESNE owns an 80 MW natural gas-fired cogeneration power plant located near North East, Pennsylvania. ESNE sells electricity at wholesale to the New York Independent System Operator and sells thermal energy to a grape processing plant. The Registrant owns 100% of the capital stock of Power. Part I(b), Part I(c) and Part I(d) for Power are filed pursuant to Rule 104(b). 2. Energy Systems North East, LLC (a) Energy Systems North East, LLC 10195 Ackerman Lane North East, Pennsylvania 16428
ITEM 9. WHOLESALE GENERATORS AND FOREIGN UTILITY COMPANIES (Concluded)
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, 2002 ------------------ Page ---- National Fuel Gas Company and Subsidiaries: Report of Independent Accountants 37 Consolidating and Consolidated Balance Sheet at September 30, 2002 38-41 Consolidating and Consolidated Statement of Income for the Fiscal Year Ended September 30, 2002 42-43 Consolidating and Consolidated Statement of Earnings Reinvested in the Business for the Fiscal Year Ended September 30, 2002 44-45 Consolidating and Consolidated Statement of Cash Flows for the Fiscal Year Ended September 30, 2002 46-49 Consolidating and Consolidated Statement of Comprehensive Income for the Fiscal Year Ended September 30, 2002 50-51 Seneca Resources Corporation: Consolidating Balance Sheet at September 30, 2002 52 Consolidating Statement of Income for the Fiscal Year Ended September 30, 2002 53 Consolidating Statement of Earnings Reinvested in the Business for the Fiscal Year Ended September 30, 2002 54 Consolidating Statement of Cash Flows for the Fiscal Year Ended September 30, 2002 55 Consolidating Statement of Comprehensive Income for the Fiscal Year Ended September 30, 2002 56 Horizon Energy Development, Inc. and Subsidiaries: Consolidating Balance Sheet at September 30, 2002 57 Consolidating Statement of Income for the Fiscal Year Ended September 30, 2002 58 Consolidating Statement of Earnings Reinvested in the Business for the Fiscal Year Ended September 30, 2002 59 Consolidating Statement of Cash Flows for the Fiscal Year Ended September 30, 2002 60 Consolidating Statement of Comprehensive Income for the Fiscal Year Ended September 30, 2002 61 Horizon Energy Holdings, Inc.: Consolidating Balance Sheet at September 30, 2002 62 Consolidating Statement of Income for the Fiscal Year Ended September 30, 2002 63 Consolidating Statement of Earnings Reinvested in the Business for the Fiscal Year Ended September 30, 2002 64 Consolidating Statement of Cash Flows for the Fiscal Year Ended September 30, 2002 65 Consolidating Statement of Comprehensive Income for the Fiscal Year Ended September 30, 2002 66 Horizon Energy Development B.V.: Consolidating Balance Sheet at September 30, 2002 67 Consolidating Statement of Income for the Fiscal Year Ended September 30, 2002 68 Consolidating Statement of Earnings Reinvested in the Business for the Fiscal Year Ended September 30, 2002 69 Consolidating Statement of Cash Flows for the Fiscal Year Ended September 30, 2002 70 Consolidating Statement of Comprehensive Income for the Fiscal Year Ended September 30, 2002 71
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS (Concluded)
NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES ------------------------------------------ INDEX TO FINANCIAL STATEMENTS ----------------------------- SEPTEMBER 30, 2002 ------------------ Page ---- United Energy, a.s.: Consolidating Balance Sheet at September 30, 2002 72 Consolidating Statement of Income for the Fiscal Year Ended September 30, 2002 73 Consolidating Statement of Earnings Reinvested in the Business for the Fiscal Year Ended September 30, 2002 74 Consolidating Statement of Cash Flows for the Fiscal Year Ended September 30, 2002 75 Consolidating Statement of Comprehensive Income for the Fiscal Year Ended September 30, 2002 76 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, 2002, are incorporated herein by reference.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors
and Shareholders of
National Fuel Gas Company
In our opinion, the consolidated financial statements listed in the index appearing under Item 10 on Pages 35 and 36 present fairly, in all material respects, the financial position of National Fuel Gas Company and its subsidiaries at September 30, 2002, 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 Companys management; our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit of these statements in accordance with auditing standards generally accepted in the United States of America which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
Our audit was made for the purpose of forming an opinion on the consolidated financial statements taken as a whole. The consolidating information on Pages 38 through 76 is presented for purposes of additional analysis rather than to present financial position, results of operations and cash flows of the individual companies. Accordingly, we do not express an opinion on the financial position, results of operations and cash flows of the individual companies. However, the consolidating information on Pages 38 through 76 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, 2002
NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES CONSOLIDATING BALANCE SHEET AT SEPTEMBER 30, 2002 (THOUSANDS OF DOLLARS) Horizon National National Seneca Highland Data-Track National Energy Seneca Niagara National Fuel Gas Fuel Gas Resources Leidy Forest Account Fuel Development, Upstate Indep. Indpendence Horizon Total Before Eliminations Consolidated Fuel Gas Distribution Supply Corporation Hub, Resources, Services, Resources, Inc. Energy, Pipeline Marketing, Power, Eliminations & Adjustments Company and Company Corp. Corp. (Consolidated) Inc. Inc. Inc. Inc. (Consolidated) Inc. Company Inc. Inc. & Adjustments Dr (Cr) Subsidiaries ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ASSETS PROPERTY, PLANT & EQUIPMENT $ 132 $1,363,380 $ 821,895 $ 1,899,953 $ - $ 88,571 $ 186 $ 996 $ 330,741 $ - $ - $ - $ 6,797 $ 4,512,651 $ - $ 4,512,651 Less: Accumulated Depreciation, Depletion and Amortization 132 403,366 334,103 796,194 - 9,504 100 871 123,550 - - - 86 1,667,906 - 1,667,906 ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- - 960,014 487,792 1,103,759 - 79,067 86 125 207,191 - - - 6,711 2,844,745 - 2,844,745 ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- CURRENT ASSETS: Cash and Temporary Cash Investments 177 3,601 607 5,638 106 131 91 689 9,793 19 20 1 448 21,321 895 22,216 Notes Receivable -Intercompany 523,000 - - 44,300 800 - 600 37,000 200 - - - - 605,900 (605,900) - Allowance for Uncollectible Accounts - (13,296) (243) (199) - - - (2,065) (1,494) - - - - (17,297) - (17,297) Accounts Receivable -Intercompany 27,290 4,428 10,406 5,307 5 51 74 1,191 1 (32) - - - 48,721 (48,721) - Accounts Receivable 342 57,668 5,586 30,517 - 2,259 2 7,881 7,435 1,060 - - 57 112,807 - 112,807 Unbilled Utility Revenue - 15,794 - - - - - - 6,124 - - - - 21,918 - 21,918 Dividends Receivable -Intercompany 17,354 - - - - - - - - - - - - 17,354 (17,354) - Materials and Supplies - at average cost - 5,150 7,811 2,949 - 15,020 - - 3,339 - - - - 34,269 (2,687) 31,582 Gas Stored Underground - 66,423 - - - - - 4,057 - 6,770 - - - 77,250 - 77,250 Unrecovered Purchased Gas Costs - 12,431 - - - - - - - - - - - 12,431 - 12,431 Fair Value of Derivative Financial Instruments - - - - - - - 3,807 - - - - - 3,807 - 3,807 Prepayments 485 27,709 5,708 7,086 - 206 3 96 51 - - - 10 41,354 - 41,354 ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 568,648 179,908 29,875 95,598 911 17,667 770 52,656 25,449 7,817 20 1 515 979,835 (673,767) 306,068 ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- OTHER ASSETS: Recoverable Future Taxes - 77,440 4,945 - - - - - - - - - - 82,385 - 82,385 Unamortized Debt Expense 10,613 6,944 5,217 - - - - - - - - - - 22,774 (2,139) 20,635 Other Regulatory Assets 5,358 18,195 2,551 - - - - - - - - - - 26,104 - 26,104 Deferred Charges 2,153 2,471 1,712 497 - - - 52 13 - - - - 6,898 (984) 5,914 Other Investments 16,822 - - - - - - - - - - - - 16,822 48,268 65,090 Investment in Unconsolidated Subsidiaries - - - - - - - - - - - - 16,753 16,753 - 16,753 Goodwill - - - - - - - - 8,255 - - - - 8,255 - 8,255 Investment in Associated Companies 989,716 - 61 - - - - - - - - - - 989,777 (989,777) - Notes Receivable - Intercompany 1,124,000 - - - - - - - - - - - - 1,124,000 (1,124,000) - Other 11,451 3,454 369 61 - 1,030 - 17 558 - - - - 16,940 8,420 25,360 ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 2,160,113 108,504 14,855 558 - 1,030 - 69 8,826 - - - 16,753 2,310,708 (2,060,212) 250,496 ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 2,728,761 1,248,426 532,522 1,199,915 911 97,764 856 52,850 241,466 7,817 20 1 23,979 6,135,288 (2,733,979) 3,401,309 ============ =========== =========== ============ =========== =========== ============ =========== =========== =========== =========== =========== =========== =========== =========== =========== 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, 2002, incorporated herein by reference. NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES CONSOLIDATING BALANCE SHEET AT SEPTEMBER 30, 2002 (THOUSANDS OF DOLLARS) Horizon National National Seneca Highland Data-Track National Energy Seneca Niagara National Fuel Gas Fuel Gas Resources Leidy Forest Account Fuel Development, Upstate Indep. Indpendence Horizon Total Before Eliminations Consolidated Fuel Gas Distribution Supply Corporation Hub, Resources, Services, Resources, Inc. Energy, Pipeline Marketing, Power, Eliminations & Adjustments Company and Company Corp. Corp. (Consolidated) Inc. Inc. Inc. Inc. (Consolidated) Inc. Company Inc. Inc. & Adjustments Dr (Cr) Subsidiaries ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- CAPITALIZATION AND LIABILITIES CAPITALIZATION: Common Stock $1 Par Value; Authorized - 200,000,000 Shares; Issued and Outstanding - 80,264,734 Shares $ 80,265 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 80,265 $ - $ 80,265 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 446,832 121,668 35,894 104,035 1,365 3,005 499 33,490 38,246 6,800 - - 5,020 796,854 (350,022) 446,832 Earnings Reinvested in the Business 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 ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Total Common Shareholder Equity Before Items of Other Comprehensive Income 1,076,494 527,104 303,944 110,455 737 8,156 777 39,443 24,664 549 (9,610) 1 5,142 2,087,856 (1,011,362) 1,076,494 Accumulated Other Comprehensive Income (Loss) (69,636) - (135) (38,274) - - - (806) 4,170 (316) - - - (104,997) 35,361 (69,636) ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Total Comprehensive Shareholders' Equity 1,006,858 527,104 303,809 72,181 737 8,156 777 38,637 28,834 233 (9,610) 1 5,142 1,982,859 (976,001) 1,006,858 Long-Term Debt, Net of Current Portion 1,124,000 163 - - - - - - 21,178 - - - - 1,145,341 - 1,145,341 Notes Payable - Intercompany - 249,000 115,000 640,000 - 30,000 - - 90,000 - - - - 1,124,000 (1,124,000) - ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Total Capitalization 2,130,858 776,267 418,809 712,181 737 38,156 777 38,637 140,012 233 (9,610) 1 5,142 4,252,200 (2,100,001) 2,152,199 ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Minority Interest in Foreign Subsidiaries - - - - - - - - 28,785 - - - - 28,785 - 28,785 ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- CURRENT AND ACCRUED LIABILITIES: Notes Payable to Banks and Commercial Paper 254,000 - - 9,108 - - - - 2,278 - - - - 265,386 - 265,386 Notes Payable - Intercompany 82,900 130,500 12,400 268,200 - 48,500 - - 24,400 6,400 14,100 - 18,500 605,900 (605,900) - Current Portion of Long-Term Debt 150,000 - - - - - - - 10,564 - - - - 160,564 - 160,564 Accounts Payable 52 26,449 14,136 31,521 - 6,654 54 1,871 18,429 - - - 148 99,314 1,572 100,886 Accounts Payable - Intercompany 938 13,217 814 18,606 37 3,117 83 180 2,289 71 25 - 120 39,497 (39,497) - Dividends Payable - Intercompany - 8,700 6,154 2,000 - 400 - 100 - - - - - 17,354 (17,354) - Fair Value of Derivative Financial Instruments - - - 29,634 - - - - - 1,570 - - - 31,204 - 31,204 Other Accruals and Current Liabilities 116,389 8,557 4,222 (10,599) 5 (276) (19) 6,012 (1,105) (246) (118) - (469) 122,353 (835) 121,518 ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 604,279 187,423 37,726 348,470 42 58,395 118 8,163 56,855 7,795 14,007 - 18,299 1,341,572 (662,014) 679,558 ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- DEFERRED CREDITS: Accumulated Deferred Income Taxes (18,800) 164,579 67,099 135,964 132 487 (47) (2,237) 14,074 (211) (4,377) - 80 356,743 (523) 356,220 Taxes Refundable to Customers - 18,272 (2,676) - - - - - - - - - - 15,596 - 15,596 Unamortized Investment Tax Credit - 8,637 260 - - - - - - - - - - 8,897 - 8,897 Other Regulatory Liabs - 80,110 2,566 - - - - - - - - - - 82,676 - 82,676 Other Deferred Credits 12,424 13,138 8,738 3,300 - 726 8 8,287 1,740 - - - 458 48,819 28,559 77,378 ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- (6,376) 284,736 75,987 139,264 132 1,213 (39) 6,050 15,814 (211) (4,377) - 538 512,731 28,036 540,767 ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- $ 2,728,761 $ 1,248,426 $ 532,522 $ 1,199,915 $ 911 $ 97,764 $ 856 $ 52,850 $ 241,466 $ 7,817 $ 20 $ 1 $ 23,979 $6,135,288 $(2,733,979) $ 3,401,309 ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 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, 2002, incorporated herein by reference. NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES CONSOLIDATING STATEMENT OF INCOME FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 (THOUSANDS OF DOLLARS) Horizon National National Seneca Highland Data-Track National Energy Seneca Niagara National Fuel Gas Fuel Gas Resources Leidy Forest Account Fuel Development, Upstate Indep. Indpendence Horizon Total Before Eliminations Consolidated Fuel Gas Distribution Supply Corporation Hub, Resources, Services, Resources, Inc. Energy, Pipeline Marketing, Power, Eliminations & Adjustments Company and Company Corp. Corp. (Consolidated) Inc. Inc. Inc. Inc. (Consolidated) Inc. Company Inc. Inc. & Adjustments Dr (Cr) Subsidiaries ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- OPERATING REVENUE: $ - $ 794,220 $ 167,382 $ 328,230 $ - $ 44,700 $ 530 $ 151,257 $ 95,315 $ 9,313 $ - $ - $ 291 $ 1,591,238 $ (126,742) $ 1,464,496 ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- OPERATING EXPENSE: Purchased Gas - 430,191 178 645 - - - 134,428 - 6,961 - - - 572,403 (109,546) 462,857 Fuel Used in Heat and Electric Generation - - - - - - - 105 50,530 - - - - 50,635 - 50,635 Operation and Maintenance 3,641 168,633 61,314 103,042 10 38,029 495 3,417 29,674 2,673 24 - 1,169 412,121 (17,964) 394,157 Property, Franchise & Other Taxes 501 48,395 10,377 10,304 - 45 - 157 2,354 - - - 22 72,155 - 72,155 Depreciation, Depletion and Amortization 1 37,412 23,626 104,375 - 2,996 36 161 11,977 46 - - 34 180,664 4 180,668 Income Taxes 46 31,657 23,575 19,480 5 358 4 5,102 (2,030) (166) (5,427) - (319) 72,285 (251) 72,034 ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 4,189 716,288 119,070 237,846 15 41,428 535 143,370 92,505 9,514 (5,403) - 906 1,360,263 (127,757) 1,232,506 ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Operating Income (Loss) (4,189) 77,932 48,312 90,384 (15) 3,272 (5) 7,887 2,810 (201) 5,403 - (615) 230,975 1,015 231,990 ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- OPERATIONS OF UNCONSOLIDATED SUBSIDIARIES: Income - - - - - - - - - - - - 224 224 - 224 Impairment of Invest. in Partnership - - - - - - - - - - (15,167) - - (15,167) - (15,167) ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- - - - - - - - - - - (15,167) - 224 (14,943) - (14,943) ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- OTHER INCOME: Unremitted Earnings/(Loss) of Subsidiaries 51,210 - - - - - - - - - - - - 51,210 (51,210) - Dividends from Subsidiaries 69,416 - - - - - - - - - - - - 69,416 (69,416) - Interest-Intercompany 96,680 7 - 759 18 - 14 355 11 - - - - 97,844 (97,844) - Other 254 2,355 1,591 303 4 550 - 476 1,509 - - - 110 7,152 (135) 7,017 ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 217,560 2,362 1,591 1,062 22 550 14 831 1,520 - - - 110 225,622 (218,605) 7,017 ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Income (Loss) Before Interest Charges and Minority Interest in Foreign Subsidiaries 213,371 80,294 49,903 91,446 7 3,822 9 8,718 4,330 (201) (9,764) - (281) 441,654 (217,590) 224,064 ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- INTEREST CHARGES: Interest on Long-Term Debt 88,639 - - - - - - - 1,904 - - - - 90,543 - 90,543 Interest-Intercompany 1,163 23,636 9,356 54,776 - 2,739 - 76 5,678 106 314 - - 97,844 (97,844) - Other Interest 5,887 7,154 755 738 - 10 - - 462 - - - 313 15,319 (210) 15,109 ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 95,689 30,790 10,111 55,514 - 2,749 - 76 8,044 106 314 - 313 203,706 (98,054) 105,652 ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Minority Interest in Foreign Subsidiaries - - - - - - - - (730) - - - - (730) - (730) ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Net Income (Loss) Available for Common Stock $ 117,682 $ 49,504 $ 39,792 $ 35,932 $ 7 $ 1,073 $ 9 $ 8,642 $ (4,444) $ (307) $ (10,078) $ - $ (594) $ 237,218 $ (119,536) $ 117,682 ============ =========== =========== ============ =========== =========== ============ =========== =========== =========== =========== =========== =========== =========== =========== =========== See Notes to Consolidated Financial Statements included in Item 8 of National Basic Earnings Per Common Share Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2002, Net Income Available for Common Stock $ 1.47 incorporated herein by reference. =========== Diluted Earnings Per Common Share Net Income Available for Common Stock $ 1.46 =========== Weighted Average Common Shares Outstanding Used in Basic Calculation 79,821,430 =========== Used in Diluted Calculation 80,534,453 =========== NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES CONSOLIDATING STATEMENT OF EARNINGS REINVESTED IN THE BUSINESS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 (THOUSANDS OF DOLLARS) Horizon National National Seneca Highland Data-Track National Energy Seneca Niagara National Fuel Gas Fuel Gas Resources Leidy Forest Account Fuel Development, Upstate Indep. Indpendence Horizon Total Before Eliminations Consolidated Fuel Gas Distribution Supply Corporation Hub, Resources, Services, Resources, Inc. Energy, Pipeline Marketing, Power, Eliminations & Adjustments Company and Company Corp. Corp. (Consolidated) Inc. Inc. Inc. Inc. (Consolidated) Inc. Company Inc. Inc. & Adjustments Dr (Cr) Subsidiaries ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- EARNINGS REINVESTED IN THE BUSINESS Balance at Beginning of Year $ 513,488 $ 331,562 $ 227,528 $ (22,012) $ (639) $ 5,674 $ 268 $ (2,299) $ (9,143) $ (5,945) $ 467 $ - $ 715 $ 1,039,664 $ (526,176) $ 513,488 Net Income (Loss) Available for Common Stock 117,682 49,504 39,792 35,932 7 1,073 9 8,642 (4,444) (307) (10,078) - (594) 237,218 (119,536) 117,682 Dividends on Common Stock (2002 - $1.025 per share) (81,773) (34,800) (24,615) (8,000) - (1,600) - (400) - - - - - (151,188) 69,415 (81,773) ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Balance at End 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 ============ =========== =========== ============ =========== =========== ============ =========== =========== =========== =========== =========== =========== =========== =========== =========== At September 30, 2002 ANALYSIS OF INVESTMENTS IN ASSOCIATED COMPANIES AT SEPTEMBER 30, 2002 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 583,950 Distribution Earnings Reinvested in the Business Corporation $ 59,170 $ 121,668 $ 4,636 $ 341,630 $ - $ 527,104 of Subsidiaries at Acquisition 7,095 Supply Corporation 25,345 35,833 2,453 240,252 (135) 303,748 Consolidating Adjustment (14,748) Seneca Resources 500 104,035 6 5,914 (38,274) 72,181 ----------- $ 576,297 Leidy Hub 4 1,365 - (632) - 737 =========== Highland 4 3,005 - 5,147 - 8,156 Data-Track 1 499 - 277 - 777 Net Income Available for Common Stock: NFR 10 33,490 - 5,943 (806) 38,637 Subsidiaries-Dividends on Horizon 5 38,246 - (13,587) 4,170 28,834 Common Stock 69,415 Upstate 1 6,800 - (6,252) (316) 233 Unremitted Earnings of Subsidiaries 51,210 Seneca Independence 1 - - (9,611) - (9,610) Consolidating Adjustment (1,089) Niagara Independence 1 - - - - 1 ----------- 119,536 Horizon Power, Inc. 1 5,020 - 121 - 5,142 =========== Consolidating Adjustment - - - 14,748 (972) 13,776 ----------- ----------- ----------- ----------- ----------- ----------- See Notes to Consolidated Financial Statements included in Item 8 of National 85,043 349,961 7,095 583,950 (36,333) 989,716 Fuel Gas Company's Form 10-K for the fiscal year ended September 30, 2002, incorporated herein by reference. Supply Corporation: Seneca Resources - 61 - - - 61 ----------- ----------- ----------- ----------- ----------- ----------- $ 85,043 $ 350,022 $ 7,095 $ 583,950 $ (36,333) $ 989,777 =========== =========== ============ =========== =========== =========== NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 (THOUSANDS OF DOLLARS) Horizon National National Seneca Highland Data-Track National Energy Seneca Niagara National Fuel Gas Fuel Gas Resources Leidy Forest Account Fuel Development, Upstate Indep. Indpendence Horizon Total Before Eliminations Consolidated Fuel Gas Distribution Supply Corporation Hub, Resources, Services, Resources, Inc. Energy, Pipeline Marketing, Power, Eliminations & Adjustment Company and Company Corp. Corp. (Consolidated) Inc. Inc. Inc. Inc. (Consolidated) Inc. Company Inc. Inc. & Adjustments Dr (Cr) Subsidiaries ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ---------- ---------- ---------- ----------- OPERATING ACTIVITIES: amp; for Common Stock $ 117,682 $ 49,504 $ 39,792 $ 35,932 $ 7 $ 1,073 $ 9 $ 8,642 $ (4,444) $ (307) $ (10,078) $ - $ (594) $ 237,218 $ (119,536) $ 117,682 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Unremitted (Earnings)/Loss of Subsidiaries (51,210) - - - - - - - - - - - - (51,210) 51,210 - Depreciation, Depletion and Amortization 2 37,412 23,626 104,375 - 2,996 36 161 11,977 46 - - 34 180,665 3 180,668 Deferred Income Taxes 49 32,903 8,393 24,234 (1) (74) 3 70 2,068 (2) (5,304) - (326) 62,013 - 62,013 Impairment of Investment in Partnership - - - - - - - - - - 15,167 - - 15,167 - 15,167 (Income) Loss from Unconsolidated Subsidiaries, Net of Cash Distributions - - - - - - - - - - - - 361 361 - 361 Minority Interest in Foreign Subsidiaries - - - - - - - - 730 - - - - 730 - 730 Other 1,598 632 2,701 (1,764) - (449) - 27 942 - - - - 3,687 6,155 9,842 Change in: Receivables and Unbilled Utility Revenue 65 33,093 2,576 3,821 - 206 - 3,863 (1,820) (1,012) - - (6) 40,786 - 40,786 Accounts Receivable- Intercompany (348) 4,736 (5,480) (765) (2) 33 29 3,039 35 32 - - - 1,309 (1,309) - Gas Stored Underground and Material and Supplies - 3,104 (186) 567 - 1,370 - 5,232 279 (2,364) - - - 8,002 715 8,717 Unrecovered Purchased Gas Costs - (8,318) - - - - - - - - - - - (8,318) - (8,318) Prepayments 46 32 (992) (707) - (133) 8 31 (18) - - - (4) (1,737) - (1,737) Accounts Payable 16 (9,517) 1,543 (28,459) - 1,459 (53) (704) 5,073 (1,000) - - 136 (31,506) 7,481 (24,025) Amounts Payable to Customers - (51,223) - - - - - - - - - - - (51,223) - (51,223) Accounts Payable-Intercompany (670) (1,481) (6,131) (749) 3 1,609 (215) (35) (1,555) (4,662) (21) - 86 (13,821) 13,821 - Other Accruals and Current Liabilities (2,771) (32,627) 3,657 (10,998) 5 (195) (2) 6,017 (1,544) 1,703 (122) - (243) (37,120) (252) (37,372) Other Assets (3,446) 14,131 11,329 1,983 - - - 18,075 (880) 1,171 - - 584 42,947 (31,078) 11,869 Other Liabilities 11,025 6,609 (5,559) 2,308 (1) 220 (35) (9,918) 1,120 2,639 - - (126) 8,282 12,108 20,390 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ---------- ---------- ---------- ----------- Net Cash Provided by (Used in) Operating Activities $ 72,038 $ 78,990 $ 75,269 $ 129,778 $ 11 $ 8,115 $ (220) $ 34,500 $ 11,963 $ (3,756) $ (358) $ - $ (98) $ 406,232 $ (60,682) $ 345,550 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ---------- ---------- ---------- ----------- 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, 2002, incorporated herein by reference. (Consolidating Statement of Cash Flows continues on pages 48 and 49.) NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 (THOUSANDS OF DOLLARS) Horizon National National Seneca Highland Data-Track National Energy Seneca Niagara National Fuel Gas Fuel Gas Resources Leidy Forest Account Fuel Development, Upstate Indep. Indpendence Horizon Total Before Eliminations Consolidated Fuel Gas Distribution Supply Corporation Hub, Resources, Services, Resources, Inc. Energy, Pipeline Marketing, Power, Eliminations & Adjustment Company and Company Corp. Corp. (Consolidated) Inc. Inc. Inc. Inc. (Consolidated) Inc. Company Inc. Inc. & Adjustments Dr (Cr) Subsidiaries ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ---------- ---------- ---------- ----------- INVESTING ACTIVITIES: Capital Expenditures $ - $ (51,550) $ (29,794) $ (116,989) $ - $ (24,035) $ - $ (51) $ (4,244) $ - $ - $ - $ (6,553) $ (233,216) $ 848 $ (232,368) Investment in Partnerships - - - - - - - - - - (536) - - (536) - (536) Change in Notes Receivable - Intercompany 1,500 - - - - - 100 (37,000) 600 - - - - (34,800) 34,800 - Other - (41) 573 23,647 - 1,864 - - 1,106 849 - - - 27,998 (918) 27,080 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ---------- ---------- ---------- ----------- Net Cash Provided by (Used In) Investing Activities 1,500 (51,591) (29,221) (93,342) - (22,171) 100 (37,051) (2,538) 849 (536) - (6,553) (240,554) 34,730 (205,824) ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ---------- ---------- ---------- ----------- FINANCING ACTIVITIES: Change in Notes Payable to Banks and Commercial Paper (205,900) - - (6,595) - - - - (12,350) - - - - (224,845) - (224,845) Change in Notes Payable-Intercompany 50,300 5,900 (21,000) (16,063) - 15,600 - (19,000) 10,700 2,800 900 - 6,300 36,437 (36,437) - Net Proceeds from Issuance of Long-Term Debt 243,844 - - - - - - - - - - - - 243,844 - 243,844 Reduction of Long-Term Debt (97,700) (353) (136) - - - - - (6,023) - - - - (104,212) - (104,212) Proceeds from Issuance of Common Stock 17,073 - - - - - - - - - - - - 17,073 (6,158) 10,915 Dividends Paid on Common Stock (80,974) (34,800) (24,616) (8,000) - (1,600) - (400) - - - - - (150,390) 69,416 (80,974) ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ---------- ---------- ---------- ----------- Net Cash Provided by (Used in) Financing Activities (73,357) (29,253) (45,752) (30,658) - 14,000 - (19,400) (7,673) 2,800 900 - 6,300 (182,093) 26,821 (155,272) ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ---------- ---------- ---------- ----------- Effect of Exchange Rates Cash - - - (697) - - - - 2,232 - - - - 1,535 - 1,535 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ---------- ---------- ---------- ----------- Net Increase (Decrease) in Cash and Temporary Cash Investments 181 (1,854) 296 5,081 11 (56) (120) (21,951) 3,984 (107) 6 - (351) (14,880) 869 (14,011) Cash and Temporary Cash Investments at Beginning of Year (4) 5,455 311 557 95 187 211 22,640 5,809 126 14 1 799 36,201 26 36,227 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ---------- ---------- ---------- ----------- Cash and Temporary Cash Investments at End of Year $ 177 $ 3,601 $ 607 $ 5,638 $ 106 $ 131 $ 91 $ 689 $ 9,793 $ 19 $ 20 $ 1 $ 448 $ 21,321 $ 895 $ 22,216 =========== =========== =========== =========== =========== =========== =========== =========== =========== =========== =========== =========== ========== ========== ========== =========== 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, 2002, incorporated herein by reference. NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 (THOUSANDS OF DOLLARS) Horizon National National Seneca Highland Data-Track National Energy Seneca Niagara National Fuel Gas Fuel Gas Resources Leidy Forest Account Fuel Development, Upstate Indep. Indpendence Horizon Total Before Eliminations Consolidated Fuel Gas Distribution Supply Corporation Hub, Resources, Services, Resources, Inc. Energy, Pipeline Marketing, Power, Eliminations & Adjustments Company and Company Corp. Corp. (Consolidated) Inc. Inc. Inc. Inc. (Consolidated) Inc. Company Inc. Inc. & Adjustments Dr (Cr) Subsidiaries ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Net Income (Loss) Available for Common Stock $ 117,682 $ 49,504 $ 39,792 $ 35,932 $ 7 $ 1,073 $ 9 $ 8,642 $ (4,444) $ (307) $ (10,078) $ - $ (594) $ 237,218 $ (119,536) $ 117,682 Other Comprehensive Income (Loss), Before Tax: Min. Pension Liability Adj. (52,977) - - - - - - - - - - - - (52,977) - (52,977) Foreign Currency Translation Adjustment 24,278 - - 195 - - - - 24,083 - - - - 48,556 (24,278) 24,278 Unrealized Loss on Securities Available for Sale Arising During the Period (2,086) - - - - - - - - - - - - (2,086) - (2,086) Unrealized Gain / (Loss) on Derivative Financial Instruments Arising During the Period (42,584) - (1,230) (40,434) - - - (465) (110) (345) - - - (85,168) 42,584 (42,584) Reclassification Adjustment for Realized (Gain)/Loss on Derivative Financial Instruments in Net Income (20,063) - (41) (22,671) - - - 633 602 1,414 - - - (40,126) 20,063 (20,063) ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Other Comprehensive Income (Loss), Before Tax (93,432) - (1,271) (62,910) - - - 168 24,575 1,069 - - - (131,801) 38,369 (93,432) Income Tax Benefit Related to Min. Pension Liability (18,542) - - - - - - - - - - - - (18,542) - (18,542) Income Tax Expense/(Benefit) Related to Unrealized Gain/(Loss) on Securities Available for Sale Arising During the Period (730) - - - - - - - - - - - - (730) - (730) Income Tax Expense/(Benefit) Related to Unrealized Gain/(Loss) on Derivative Financial Instruments Arising During the Period (17,341) - (476) (16,477) - - - (189) (34) (165) - - - (34,682) 17,341 (17,341) Reclassification Adjustment for Income Tax (Expense)/Benefit on Derivative Financial Instru. in Net Income (8,040) - (16) (8,938) - - - 248 187 479 - - - (16,080) 8,040 (8,040) ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Income Taxes - Net (44,653) - (492) (25,415) - - - 59 153 314 - - - (70,034) 25,381 (44,653) ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Other Comprehensive Income/ (Loss) (48,779) - (779) (37,495) - - - 109 24,422 755 - - - (61,767) 12,988 (48,779) ------------ ----------- ----------- ------------ ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Comprehensive Income (Loss) $ 68,903 $ 49,504 $ 39,013 $ (1,563) $ 7 $ 1,073 $ 9 $ 8,751 $ 19,978 $ 448 $ (10,078) $ - $ (594) $ 175,451 $ (106,548) $ 68,903 ============ =========== =========== ============ =========== =========== ============ =========== =========== =========== =========== =========== =========== =========== =========== =========== 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, 2002, incorporated herein by reference. SENECA RESOURCES CORPORATION CONSOLIDATING BALANCE SHEET AT SEPTEMBER 30, 2002 (THOUSANDS OF DOLLARS) Seneca National Fuel Consolidated Resources Exploration Total Before Seneca and Corporation (Consolidated) Eliminations Eliminations Subsidiaries ------------- ---------------------------------------------------------- ASSETS PROPERTY, PLANT & EQUIPMENT $ 1,401,936 $ 498,017 $ 1,899,953 $ - $ 1,899,953 Less: Accumulated DD&A 556,374 239,820 796,194 - 796,194 ------------- ------------- ------------- ------------- ------------- 845,562 258,197 1,103,759 - 1,103,759 ------------- ------------- ------------- ------------- ------------- CURRENT ASSETS: Cash and Temporary Cash Investments 5,572 66 5,638 - 5,638 Allowance for Uncollectible Accounts (195) (4) (199) - (199) Notes Receivable - Intercompany 44,300 - 44,300 - 44,300 Accounts Receivable 21,909 12,490 34,399 (3,882) 30,517 Accounts Receivable - Intercompany 43,447 - 43,447 (38,140) 5,307 Materials and Supplies 935 2,014 2,949 - 2,949 Prepayments 6,484 602 7,086 - 7,086 ------------- ------------- ------------- ------------- ------------- 122,452 15,168 137,620 (42,022) 95,598 ------------- ------------- ------------- ------------- ------------- OTHER ASSETS: Investment in Associated Company (8,662) - (8,662) 8,662 - Deferred Charges 331 166 497 - 497 Notes Receivable - Intercompany 212,152 - 212,152 (212,152) - Other Assets 61 - 61 - 61 ------------- ------------- ------------- ------------- ------------- 203,882 166 204,048 (203,490) 558 ------------- ------------- ------------- ------------- ------------- TOTAL ASSETS $ 1,171,896 $ 273,531 $ 1,445,427 $ (245,512) $ 1,199,915 ============= ============= ============= ============= ============= 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 5,920 (89,351) (83,431) 89,351 5,920 ------------- ------------- ------------- ------------- ------------- Total Common Shareholder Equity Before Items of Other Comprehensive Income 110,455 21,725 132,180 (21,725) 110,455 Accumulated Other Comprehensive Loss (38,275) (30,387) (68,662) 30,388 (38,274) ------------- ------------- ------------- ------------- ------------- Total Comprehensive Shareholders' Equity 72,180 (8,662) 63,518 8,663 72,181 Notes Payable-Intercompany 640,000 212,152 852,152 (212,152) 640,000 ------------- ------------- ------------- ------------- ------------- Total Capitalization 712,180 203,490 915,670 (203,489) 712,181 ------------- ------------- ------------- ------------- ------------- CURRENT AND ACCRUED LIABILITIES: Notes Payable to Banks and Commercial Paper - 9,108 9,108 - 9,108 Accounts Payable 22,862 12,542 35,404 (3,883) 31,521 Notes Payable - Intercompany 268,200 - 268,200 - 268,200 Accounts Payable - Intercompany 18,606 38,140 56,746 (38,140) 18,606 Dividends Payable - Intercompany 2,000 - 2,000 - 2,000 Fair Value of Derivative Fin.Instru. 12,751 16,883 29,634 - 29,634 Other Accruals and Current Liabilities (11,185) 586 (10,599) - (10,599) ------------- ------------- ------------- ------------- ------------- 313,234 77,259 390,493 (42,023) 348,470 ------------- ------------- ------------- ------------- ------------- DEFERRED CREDITS: Accumulated Deferred Income Taxes 143,213 (7,249) 135,964 - 135,964 Other Deferred Credits 3,269 31 3,300 - 3,300 ------------- ------------- ------------- ------------- ------------- 146,482 (7,218) 139,264 - 139,264 ------------- ------------- ------------- ------------- ------------- TOTAL CAPITALIZATION & LIABILITIES $ 1,171,896 $ 273,531 $ 1,445,427 $ (245,512) $ 1,199,915 ============= ============= ============= ============= ============= 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, 2002, incorporated herein by reference. The consolidated financial statements shown on pages 52 through 56 for National Fuel Exploration represent the financial statements of Seneca Resources' Canadian exploration and production activities. As disclosed in Item 1 of this form U5S, there are various sub-entities that exist between Seneca Resources and National Fuel Exploration. These entities serve solely as holding companies for stock and intercompany debt. As these sub- entities have no operations, the individual financial statements of those entities have not been presented. SENECA RESOURCES CORPORATION CONSOLIDATING STATEMENT OF INCOME FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 (THOUSANDS OF DOLLARS) Seneca National Fuel Consolidated Resources Exploration Total Before Seneca and Corporation (Consolidated) Eliminations Eliminations Subsidiaries ------------- ---------------------------------------------------------- OPERATING REVENUE: $ 252,288 $ 75,942 $ 328,230 $ - $ 328,230 ------------- ------------- ------------- ------------- ------------- OPERATING EXPENSE: Purchased Gas 645 - 645 - 645 Operation and Maintenance 70,764 32,278 103,042 - 103,042 Property, Franchise & Other Taxes 4,159 6,145 10,304 - 10,304 Depreciation, Depletion and Amortization 82,031 22,344 104,375 - 104,375 Income Taxes 18,832 648 19,480 - 19,480 ------------- ------------- ------------- ------------- ------------- 176,431 61,415 237,846 - 237,846 ------------- ------------- ------------- ------------- ------------- Operating Income (Loss) 75,857 14,527 90,384 - 90,384 ------------- ------------- ------------- ------------- ------------- OTHER INCOME: Unremitted Earnings/(Loss) of Subsidiary 2,031 - 2,031 (2,031) - Interest - Intercompany 12,965 - 12,965 (12,206) 759 Other 79 224 303 - 303 ------------- ------------- ------------- ------------- ------------- 15,075 224 15,299 (14,237) 1,062 ------------- ------------- ------------- ------------- ------------- Income (Loss) Before Interest Charges and Minority Interest in Foreign Subsidiary 90,932 14,751 105,683 (14,237) 91,446 ------------- ------------- ------------- ------------- ------------- INTEREST CHARGES: Interest - Intercompany 54,776 12,206 66,982 (12,206) 54,776 Other Interest 224 514 738 - 738 ------------- ------------- ------------- ------------- ------------- 55,000 12,720 67,720 (12,206) 55,514 ------------- ------------- ------------- ------------- ------------- Net Income (Loss) Available for Common Stock $ 35,932 $ 2,031 $ 37,963 $ (2,031) $ 35,932 ============= ============= ============= ============= ============= 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, 2002, incorporated herein by reference. SENECA RESOURCES CORPORATION. CONSOLIDATING STATEMENT OF EARNINGS REINVESTED IN THE BUSINESS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 (THOUSANDS OF DOLLARS) Seneca National Fuel Consolidated Resources Exploration Total Before Seneca and Corporation (Consolidated) Eliminations Eliminations Subsidiaries ------------- ---------------------------------------------------------- EARNINGS REINVESTED IN THE BUSINESS Balance at Beginning of Year $ (22,012) $ (91,382) $ (113,394) $ 91,382 $ (22,012) Net Income (Loss) Available for Common Stock 35,932 2,031 37,963 (2,031) 35,932 Dividends on Common Stock (8,000) - (8,000) - (8,000) ------------- ------------- ------------- ------------- ------------- Balance at End of Year $ 5,920 $ (89,351) $ (83,431) $ 89,351 $ 5,920 ============= ============= ============= ============= ============= 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, 2002, incorporated herein by reference. =========== =========== =========== =========== =========== =========== SENECA RESOURCES CORPORATION CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 (THOUSANDS OF DOLLARS) Seneca National Fuel Consolidated Resources Exploration Total Before Seneca and Corporation (Consolidated)Eliminations Eliminations Subsidiary ------------ ------------ ------------ ------------ ------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net Income (Loss) $ 35,932 $ 2,031 $ 37,963 $ (2,031) $ 35,932 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Unremitted (Earnings)/Loss of Subsidiary (2,031) - (2,031) 2,031 - Depreciation, Depletion & Amortization 82,031 22,344 104,375 - 104,375 Deferred Income Taxes 24,761 (527) 24,234 - 24,234 Other (1,764) - (1,764) - (1,764) Change in: Receivables and Unbilled Utility Revenue 3,466 (3,528) (62) 3,883 3,821 Accounts Receivable - Intercompany (22,675) - (22,675) 21,910 (765) Materials and Supplies (96) 663 567 - 567 Prepayments (964) 257 (707) - (707) Accounts Payable (20,012) (3,397) (23,409) (5,050) (28,459) Accounts Payable - Intercompany (749) 20,743 19,994 (20,743) (749) Other Accruals and Current Liabilities (11,837) 839 (10,998) - (10,998) Other Assets 2,007 (24) 1,983 - 1,983 Other Liabilities (136) 2,444 2,308 - 2,308 ------------ ------------ ------------ ------------ ------------- Net Cash Provided by Operating Activities 87,933 41,845 129,778 - 129,778 ------------ ------------ ------------ ------------ ------------- CASH FLOWS FROM INVESTING ACTIVITIES: Capital Expenditures (89,961) (27,028) (116,989) - (116,989) Change in Notes Receivable - Intercompany 7,831 - 7,831 (7,831) - Other 23,617 30 23,647 - 23,647 ------------ ------------ ------------ ------------ ------------- Net Cash Used in Investing Activities (58,513) (26,998) (85,511) (7,831) (93,342) ------------ ------------ ------------ ------------ ------------- CASH FLOWS FROM FINANCING ACTIVITIES: Change in Notes Payable - Intercompany (16,062) (7,832) (23,894) 7,831 (16,063) Change in Notes Payable to Banks and Commercial Paper - (6,595) (6,595) - (6,595) Dividends Paid on Common Stock (8,000) - (8,000) - (8,000) ------------ ------------ ------------ ------------ ------------- Net Cash Used in Financing Activities (24,062) (14,427) (38,489) 7,831 (30,658) ------------ ------------ ------------ ------------ ------------- Effect of Exchange Rates on Cash - (697) (697) - (697) ------------ ------------ ------------ ------------ ------------- Net Increase (Decrease) in Cash and Temporary Cash Investments 5,358 (277) 5,081 - 5,081 Cash and Temporary Cash Investments at Beginning of Period 214 343 557 - 557 ------------ ------------ ------------ ------------ ------------- Cash and Temporary Cash Investments at End of Period $ 5,572 $ 66 $ 5,638 $ - $ 5,638 ============ ============ ============ ============ ============= 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, 2002, incorporated herein by reference. SENECA RESOURCES CORPORATION CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 (THOUSANDS OF DOLLARS) Seneca National Fuel Consolidated Resources Exploration Total Before Seneca and Corporation (Consolidated) Eliminations Eliminations Subsidiaries ------------- ---------------------------------------------------------- Net Income (Loss) Available for Common Stock $ 35,932 $ 2,031 $ 37,963 $ (2,031) $ 35,932 ------------- ------------- ------------- ------------- ------------- Other Comprehensive Income (Loss), Before Tax: Foreign Currency Translation Adjustment 195 195 390 (195) 195 Unrealized Loss on Derivative Financial Instruments Arising During the Period (40,434) (16,654) (57,088) 16,654 (40,434) Reclassification Adjustment for Realized Gain on Derivative Financial Instruments in Net Income (22,671) (2,217) (24,888) 2,217 (22,671) ------------- ------------- ------------- ------------- ------------- Other Comprehensive Loss, Before Tax (62,910) (18,676) (81,586) 18,676 (62,910) Income Tax Benefit Related to Unrealized Loss on Derivative Financial Instru. Arising During the Period (16,477) (7,574) (24,051) 7,574 (16,477) Reclassification Adjustment for Income Tax Expense on Derivative Financial Instru. Realized In Net Income (8,938) (1,194) (10,132) 1,194 (8,938) ------------- ------------- ------------- ------------- ------------- Income Taxes - Net (25,415) (8,768) (34,183) 8,768 (25,415) ------------- ------------- ------------- ------------- ------------- Other Comprehensive Loss (37,495) (9,908) (47,403) 9,908 (37,495) ------------- ------------- ------------- ------------- ------------- Comprehensive Loss $ (1,563) $ (7,877) $ (9,440) $ 7,877 $ (1,563) ============= ============= ============= ============= ============= 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, 2002, incorporated herein by reference.
HORIZON ENERGY DEVELOPMENT, INC. AND SUBSIDIARIES CONSOLIDATING BALANCE SHEET AT SEPTEMBER 30, 2002 (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 $ - $ 330,741 $ - $ 330,741 $ - $ 330,741 Less: Accumulated DD&A - 123,550 - 123,550 - 123,550 ------------ ------------- ------------ ------------ ------------ ------------ - 207,191 - 207,191 - 207,191 ------------ ------------- ------------ ------------ ------------ ------------ CURRENT ASSETS: Cash and Temporary Cash Investments 22 9,760 11 9,793 - 9,793 Notes Receivable - Intercompany 370 - - 370 (170) 200 Allowance for Uncollectible Accounts - (1,494) - (1,494) - (1,494) Accounts Receivable - Intercompany 993 - - 993 (992) 1 Accounts Receivable - 7,425 10 7,435 - 7,435 Unbilled Uility Revenue - 6,124 - 6,124 - 6,124 Materials and Supplies - 3,339 - 3,339 - 3,339 Prepayments - 51 - 51 - 51 ------------ ------------- ------------ ------------ ------------ ------------ 1,385 25,205 21 26,611 (1,162) 25,449 ------------ ------------- ------------ ------------ ------------ ------------ OTHER ASSETS: Investment in Associated Companies 146,468 - - 146,468 (146,468) - Goodwill - 8,255 - 8,255 - 8,255 Other - 558 - 558 - 558 Deferred Charges 13 - - 13 - 13 ------------ ------------- ------------ ------------ ------------ ------------ 146,481 8,813 - 155,294 (146,468) 8,826 ------------ ------------- ------------ ------------ ------------ ------------ TOTAL ASSETS $ 147,866 $ 241,209 $ 21 $ 389,096 $ (147,630) $ 241,466 ============ ============= ============ ============ ============ ============ CAPITALIZATION & LIABILITIES CAPITALIZATION: Common Stock $ 5 $ 2 $ 11,524 $ 11,531 $ (11,526) $ 5 Paid - in - Capital 38,246 116,756 - 155,002 (116,756) 38,246 Capital Contribution from Horizon - - - - - - Earnings Reinvested in the Business (13,587) 20,949 (7,576) (214) (13,373) (13,587) Accum. Other Comprehensive Income 4,170 4,813 - 8,983 (4,813) 4,170 ------------ ------------- ------------ ------------ ------------ ------------ Total Common Stock Equity 28,834 142,520 3,948 175,302 (146,468) 28,834 ------------ ------------- ------------ ------------ ------------ ------------ Long-Term Debt, Net of Current Portion - 21,178 - 21,178 - 21,178 Notes Payable - Intercompany 90,000 - - 90,000 - 90,000 ------------ ------------- ------------ ------------ ------------ ------------ Total Capitalization 118,834 163,698 3,948 286,480 (146,468) 140,012 ------------ ------------- ------------ ------------ ------------ ------------ Minority Interest in Foreign Subsidiaries - 28,785 - 28,785 - 28,785 ------------ ------------- ------------ ------------ ------------ ------------ CURRENT AND ACCRUED LIABILITIES: Notes Payable - Intercompany 24,400 170 - 24,570 (170) 24,400 Notes Payable to Banks - 2,278 - 2,278 - 2,278 Current Portion of Long-Term Debt - 10,564 - 10,564 - 10,564 Accounts Payable 113 18,483 15 18,611 (182) 18,429 Accounts Payable - Intercompany 2,289 810 - 3,099 (810) 2,289 Other Accruals and Current Liabilities 2,027 791 (3,923) (1,105) - (1,105) ------------ ------------- ------------ ------------ ------------ ------------ 28,829 33,096 (3,908) 58,017 (1,162) 56,855 ------------ ------------- ------------ ------------ ------------ ------------ DEFERRED CREDITS: Accumulated Deferred Income Taxes (1,103) 15,197 (20) 14,074 - 14,074 Other Deferred Credits 1,306 433 1 1,740 - 1,740 ------------ ------------- ------------ ------------ ------------ ------------ 203 15,630 (19) 15,814 - 15,814 ------------ ------------- ------------ ------------ ------------ ------------ TOTAL CAPITALIZATION & LIABILITIES $ 147,866 $ 241,209 $ 21 $ 389,096 $ (147,630) $ 241,466 ============ ============= ============ ============ ============ ============ 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, 2002, incorporated herein by reference. HORIZON ENERGY DEVELOPMENT, INC. AND SUBSIDIARIES CONSOLIDATING STATEMENT OF INCOME FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 (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: $ 86 $ 95,229 $ - $ 95,315 $ - $ 95,315 ------------ ------------- ------------ ------------ ------------ ------------ OPERATING EXPENSE: Fuel Used in Heat and Electric Generation - 50,530 - 50,530 - 50,530 Operation and Maintenance 6,904 22,770 - 29,674 - 29,674 Property, Franchise & Other Taxes 15 2,339 - 2,354 - 2,354 Depreciation, Depletion and Amortization 7 11,970 - 11,977 - 11,977 Income Taxes (4,116) 2,086 - (2,030) - (2,030) ------------ ------------- ------------ ------------ ------------ ------------ 2,810 89,695 - 92,505 - 92,505 ------------ ------------- ------------ ------------ ------------ ------------ Operating Income (Loss) (2,724) 5,534 - 2,810 - 2,810 ------------ ------------- ------------ ------------ ------------ ------------ OTHER INCOME: Unremitted Earnings of Subsidiaries 3,905 - - 3,905 (3,905) - Interest - Intercompany 14 - - 14 (3) 11 Other 500 1,009 - 1,509 - 1,509 ------------ ------------- ------------ ------------ ------------ ------------ 4,419 1,009 - 5,428 (3,908) 1,520 ------------ ------------- ------------ ------------ ------------ ------------ Income (Loss) Before Interest Charges and and Minority Interest in Foreign Subsidiaries 1,695 6,543 - 8,238 (3,908) 4,330 ------------ ------------- ------------ ------------ ------------ ------------ INTEREST CHARGES: Interest on Long-Term Debt - 1,904 - 1,904 - 1,904 Interest-Intercompany 5,678 4 - 5,682 (4) 5,678 Other Interest 461 1 - 462 - 462 ------------ ------------- ------------ ------------ ------------ ------------ 6,139 1,909 - 8,048 (4) 8,044 ------------ ------------- ------------ ------------ ------------ ------------ Minority Interest in Foreign Subsidiaries - (730) - (730) - (730) ------------ ------------- ------------ ------------ ------------ ------------ Net Income (Loss) Available for Common Stock $ (4,444) $ 3,904 $ - $ (540) $ (3,904) $ (4,444) ============ ============= ============ ============ ============ ============ 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, 2002, 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, 2002 (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 $ (9,143) $ 17,045 $ (7,576) $ 326 $ (9,469) $ (9,143) Net Income (Loss) Available for Common Stock (4,444) 3,904 - (540) (3,904) (4,444) ------------ ------------- ------------ ------------ ------------ ------------ Balance at End of Year $ (13,587) $ 20,949 $ (7,576) $ (214) $ (13,373) $ (13,587) ============ ============= ============ ============ ============ ============ 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, 2002, incorporated herein by reference. HORIZON ENERGY DEVELOPMENT, INC. AND SUBSIDIARIES CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 (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) $ (4,444) $ 3,904 $ - $ (540) $ (3,904) $ (4,444) Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Unremitted Earnings of Subsidiaries (3,905) - - (3,905) 3,905 - Depreciation, Depletion & Amortization 7 11,970 - 11,977 - 11,977 Deferred Income Taxes (385) 2,453 - 2,068 - 2,068 Minority Interest in Foreign Subsidiaries - 730 - 730 - 730 Other - 942 - 942 - 942 Change in: Accounts Receivable - Intercompany 126 - - 126 (91) 35 Receivables and Unbilled Utility Revenue - (1,820) - (1,820) - (1,820) Material and Supplies - 279 - 279 - 279 Prepayments - (18) - (18) - (18) Accounts Payable (13) 4,992 - 4,979 94 5,073 Accounts Payable - Intercompany (1,555) 4 - (1,551) (4) (1,555) Other Accruals and Current Liabilities (1,769) 225 - (1,544) - (1,544) Other Assets 20 (900) - (880) - (880) Other Liabilities 830 290 - 1,120 - 1,120 ------------ ------------ ----------- ----------- ------------ ------------ Net Cash Provided by (Used in) Operations (11,088) 23,051 - 11,963 - 11,963 ------------ ------------ ----------- ----------- ------------ ------------ CASH FLOWS FROM INVESTING ACTIVITIES: Capital Expenditures - (4,244) - (4,244) - (4,244) Change in Notes Receivable-Intercompany 550 - - 550 50 600 Other - 1,106 - 1,106 - 1,106 ------------ ------------ ----------- ----------- ------------ ------------ Net Cash Provided by (Used In) Investing Activities 550 (3,138) - (2,588) 50 (2,538) ------------ ------------ ----------- ----------- ------------ ------------ CASH FLOWS FROM FINANCING ACTIVITIES: Change in Notes Payable to Banks - (12,350) - (12,350) - (12,350) Change in Notes Payable - Intercompany 10,700 50 - 10,750 (50) 10,700 Return of Capital Contribution - - - - - - Net Proceeds from Issuance of Long-Term Debt - - - - - - Reduction of Long-Term Debt - (6,023) - (6,023) - (6,023) ------------ ------------ ----------- ----------- ------------ ------------ Net Cash Provided by (Used in) Financing Activities 10,700 (18,323) - (7,623) (50) (7,673) ------------ ------------ ----------- ----------- ------------ ------------ Effect of Exchange Rates on Cash - 2,232 - 2,232 - 2,232 ------------ ------------ ----------- ----------- ------------ ------------ Net Increase (Decrease) in Cash and Temporary Cash Investments 162 3,822 - 3,984 - 3,984 Cash and Temporary Cash Investments of Beginning of Period (140) 5,938 11 5,809 - 5,809 ------------ ------------ ----------- ----------- ------------ ------------ Cash and Temporary Cash Investments at End of Year $ 22 $ 9,760 $ 11 $ 9,793 $ - $ 9,793 ============ ============ =========== =========== ============ ============ 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, 2002, incorporated herein by reference. HORIZON ENERGY DEVELOPMENT, INC. AND SUBSIDIARIES CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 (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 $ (4,444) $ 3,904 $ - $ (540) $ (3,904) $ (4,444) ------------ ------------- ------------ ------------ ------------ ------------ Other Comprehensive Income (Loss): Foreign Currency Translation Adjustment 24,083 24,083 - 48,166 (24,083) 24,083 Unrealized Loss on Derivative Financial Instruments Arising During the Period (110) (110) - (220) 110 (110) Reclassification Adjustment for Realized Loss on Derivative Financial Instruments in Net Income 602 602 - 1,204 (602) 602 ------------ ------------- ------------ ------------ ------------ ------------ Other Comprehensive Income, Before Tax 24,575 24,575 - 49,150 (24,575) 24,575 Income Tax Benefit Related to Unrealized Loss on Derivative Financial Instruments Arising During the Period (34) (34) - (68) 34 (34) Reclassification Adjustment for Income Tax Benefit on Derivative Financial Instruments in Net Income 187 187 - 374 (187) 187 ------------ ------------- ------------ ------------ ------------ ------------ Income Taxes - Net 153 153 - 306 (153) 153 ------------ ------------- ------------ ------------ ------------ ------------ Other Comprehensive Income 24,422 24,422 - 48,844 (24,422) 24,422 ------------ ------------- ------------ ------------ ------------ ------------ Comprehensive Income $ 19,978 $ 28,326 $ - $ 48,304 $ (28,326) $ 19,978 ============ ============= ============ ============ ============ ============ 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, 2002, incorporated herein by reference. HORIZON ENERGY HOLDINGS CONSOLIDATING BALANCE SHEET AT SEPTEMBER 30, 2002 (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 $ - $ 330,741 $ 330,741 $ - $ 330,741 Less: Accumulated DD&A - 123,550 123,550 - 123,550 ------------ ------------- ------------ ------------ ------------ - 207,191 207,191 - 207,191 ------------ ------------- ------------ ------------ ------------ CURRENT ASSETS: Cash and Temporary Cash Investments - 9,760 9,760 - 9,760 Allowance for Uncollectible Accounts - (1,494) (1,494) - (1,494) Accounts Receivable - 7,425 7,425 - 7,425 Unbilled Uility Revenue - 6,124 6,124 - 6,124 Materials and Supplies - 3,339 3,339 - 3,339 Prepayments - 51 51 - 51 ------------ ------------- ------------ ------------ ------------ - 25,205 25,205 - 25,205 ------------ ------------- ------------ ------------ ------------ OTHER ASSETS: Investment in Associated Companies 142,520 - 142,520 (142,520) - Goodwill - 8,255 8,255 - 8,255 Other Assets - 558 558 - 558 ------------ ------------- ------------ ------------ ------------ 142,520 8,813 151,333 (142,520) 8,813 ------------ ------------- ------------ ------------ ------------ TOTAL ASSETS $ 142,520 $ 241,209 $ 383,729 $ (142,520) $ 241,209 ============ ============= ============ ============ ============ CAPITALIZATION & LIABILITIES? CAPITALIZATION: Common Stock $ 2 $ 29 $ 31 $ (29) $ 2 Paid - in - Capital 116,756 111,621 228,377 (111,621) 116,756 Earnings Reinvested in the Business 20,949 26,699 47,648 (26,699) 20,949 Accum. Other Comprehensive Income 4,813 4,171 8,984 (4,171) 4,813 ------------ ------------- ------------ ------------ ------------ Total Common Stock Equity 142,520 142,520 285,040 (142,520) 142,520 ------------ ------------- ------------ ------------ ------------ Long-Term Debt, Net of Current Portion - 21,178 21,178 - 21,178 Notes Payable - Intercompany - - - - - ------------ ------------- ------------ ------------ ------------ Total Capitalization 142,520 163,698 306,218 (142,520) 163,698 ------------ ------------- ------------ ------------ ------------ Minority Interest in Foreign Subsidiaries - 28,785 28,785 - 28,785 ------------ ------------- ------------ ------------ ------------ CURRENT AND ACCRUED LIABILITIES: Notes Payable - Intercompany - 170 170 - 170 Notes Payable to Banks - 2,278 2,278 - 2,278 Current Portion of Long-Term Debt - 10,564 10,564 - 10,564 Accounts Payable - 18,483 18,483 - 18,483 Accounts Payable - Intercompany - 810 810 - 810 Other Accruals and Current Liabilities - 791 791 - 791 ------------ ------------- ------------ ------------ ------------ - 33,096 33,096 - 33,096 ------------ ------------- ------------ ------------ ------------ DEFERRED CREDITS: Accumulated Deferred Income Taxes - 15,197 15,197 - 15,197 Other Deferred Credits - 433 433 - 433 ------------ ------------- ------------ ------------ ------------ - 15,630 15,630 - 15,630 ------------ ------------- ------------ ------------ ------------ TOTAL CAPITALIZATION & LIABILITIES $ 142,520 $ 241,209 $ 383,729 $ (142,520) $ 241,209 ============ ============= ============ ============ ============ 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, 2002, incorporated herein by reference. HORIZON ENERGY HOLDINGS CONSOLIDATING STATEMENT OF INCOME FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 (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: $ - $ 95,229 $ 95,229 $ - $ 95,229 ------------ ------------- ------------ ------------ ------------ OPERATING EXPENSE: Fuel Used in Heat and Electric Generation - 50,530 50,530 - 50,530 Operation and Maintenance - 22,770 22,770 - 22,770 Property, Franchise & Other Taxes - 2,339 2,339 - 2,339 Depreciation, Depletion and Amortization - 11,970 11,970 - 11,970 Income Taxes - 2,086 2,086 - 2,086 ------------ ------------- ------------ ------------ ------------ - 89,695 89,695 - 89,695 ------------ ------------- ------------ ------------ ------------ Operating Income (Loss) - 5,534 5,534 - 5,534 ------------ ------------- ------------ ------------ ------------ OTHER INCOME: Unremitted Earnings of Subsidiaries 3,905 - 3,905 (3,905) - Interest - Intercompany - - - - - Other - 1,009 1,009 - 1,009 ------------ ------------- ------------ ------------ ------------ 3,905 1,009 4,914 (3,905) 1,009 ------------ ------------- ------------ ------------ ------------ Income (Loss) Before Interest Charges and and Minority Interest in Foreign Subsidiaries 3,905 6,543 10,448 (3,905) 6,543 ------------ ------------- ------------ ------------ ------------ INTEREST CHARGES: Interest on Long-Term Debt - 1,904 1,904 - 1,904 Interest-Intercompany - 4 4 - 4 Other Interest - 1 1 - 1 ------------ ------------- ------------ ------------ ------------ - 1,909 1,909 - 1,909 ------------ ------------- ------------ ------------ ------------ Minority Interest in Foreign Subsidiaries - (730) (730) - (730) ------------ ------------- ------------ ------------ ------------ Net Income (Loss) Available for Common Stock $ 3,905 $ 3,904 $ 7,809 $ (3,905) $ 3,904 ============ ============= ============ ============ ============ 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, 2002, incorporated herein by reference. HORIZON ENERGY HOLDINGS CONSOLIDATING STATEMENT OF EARNINGS REINVESTED IN THE BUSINESS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 (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 $ 17,044 $ 22,795 $ 39,839 $ (22,794) $ 17,045 Net Income (Loss) Available for Common Stock 3,905 3,904 7,809 (3,905) 3,904 ------------ ------------- ------------ ------------ ------------ Balance at End of Year $ 20,949 $ 26,699 $ 47,648 $ (26,699) $ 20,949 ============ ============= ============ ============ ============ 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, 2002, incorporated herein by reference. HORIZON ENERGY HOLDINGS CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 (THOUSANDS OF DOLLARS) Consolidated Horizon Horizon Energy Total Before Horizon Energy Energy Development B V Eliminations Holdings and Holdings (Consolidated) & Adjustments Eliminations Subsidiaries ----------- --------------- ------------- ------------ -------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net Income $ 3,905 $ 3,904 $ 7,809 $ (3,905) $ 3,904 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Unremitted Earnings of Subsid. (3,905) - (3,905) 3,905 - Depreciation, Depletion & Amortization - 11,970 11,970 - 11,970 Deferred Income Taxes - 2,453 2,453 - 2,453 Minority Interest in Foreign Subsidiaries - 730 730 - 730 Other - 942 942 - 942 Change in: Receivables and Unbilled Utility Revenue - (1,820) (1,820) - (1,820) Material and Supplies - 279 279 - 279 Prepayments - (18) (18) - (18) Accounts Payable - 4,992 4,992 - 4,992 Accounts Payable - Intercompany - 4 4 - 4 Other Accruals and Current Liabilities - 225 225 - 225 Other Assets - (900) (900) - (900) Other Liabilities - 290 290 - 290 ----------- ----------- ----------- ----------- ----------- Net Cash Provided by Operations - 23,051 23,051 - 23,051 ----------- ----------- ----------- ----------- ----------- CASH FLOWS FROM INVESTING ACTIVITIES: Capital Expenditures - (4,244) (4,244) - (4,244) Other - 1,106 1,106 - 1,106 ----------- ----------- ----------- ----------- ----------- Net Cash Used In Investing Activities - (3,138) (3,138) - (3,138) ----------- ----------- ----------- ----------- ----------- CASH FLOWS FROM FINANCING ACTIVITIES: Change in Notes Payable to Banks - (12,350) (12,350) - (12,350) Change in Notes Payable - Intercompany - 50 50 - 50 Reduction of Long-Term Debt - (6,023) (6,023) - (6,023) ----------- ----------- ----------- ----------- ----------- Net Cash Used in Financing Activities - (18,323) (18,323) - (18,323) ----------- ----------- ----------- ----------- ----------- Effect of Exchange Rates on Cash - 2,232 2,232 - 2,232 ----------- ----------- ----------- ----------- ----------- Net Increase in Cash and Temporary Cash Investments - 3,822 3,822 - 3,822 Cash and Temporary Cash Investments of Beginning of Period - 5,938 5,938 - 5,938 ----------- ----------- ----------- ----------- ----------- Cash and Temporary Cash Investments at End of Year $ - $ 9,760 $ 9,760 $ - $ 9,760 =========== =========== =========== =========== =========== 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, 2002, incorporated herein by reference. HORIZON ENERGY HOLDINGS CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 (THOUSANDS OF DOLLARS) Consolidated Horizon Horizon Energy Total Before Horizon Energy Energy Development B V Eliminations Eliminations Holdings and Holdings (Consolidated) & Adjustments (Dr) Cr Subsidiaries ------------ ------------- ------------ ------------ -------------- Net Income (Loss) Available for Common Stock $ 3,905 $ 3,904 $ 7,809 $ (3,905) $ 3,904 ------------ ------------- ------------ ------------ ------------ Other Comprehensive Income (Loss): Foreign Currency Translation Adjustment 24,083 24,083 48,166 (24,083) 24,083 Unrealized Loss on Derivative Financial Instruments Arising During the Period (110) (110) (220) 110 (110) Reclassification Adjustment for Realized Loss on Derivative Financial Instruments in Net Income 602 602 1,204 (602) 602 ------------ ------------- ------------ ------------ ------------ Other Comprehensive Income (Loss), Before Tax 24,575 24,575 49,150 (24,575) 24,575 Income Tax Benefit Related to Unrealized Loss on Derivative Financial Instruments Arising During the Period (34) (34) (68) 34 (34) Reclassification Adjustment for Income Tax Benefit on Derivative Financial Instruments in Net Income 187 187 374 (187) 187 ------------ ------------- ------------ ------------ ------------ Income Taxes - Net 153 153 306 (153) 153 ------------ ------------- ------------ ------------ ------------ Other Comprehensive Income 24,422 24,422 48,844 (24,422) 24,422 ------------ ------------- ------------ ------------ ------------ Comprehensive Income $ 28,327 $ 28,326 $ 56,653 $ (28,327) $ 28,326 ============ ============= ============ ============ ============ 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, 2002, incorporated herein by reference. HORIZON ENERGY DEVELOPMENT, B.V. CONSOLIDATING BALANCE SHEET AT SEPTEMBER 30, 2002 (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 $ - $ 330,534 $ 207 $ 330,741 $ - $ 330,741 Less: Accumulated DD&A - 123,367 183 123,550 - 123,550 ---------- ----------- --------- ---------- ------------ ---------- - 207,167 24 207,191 - 207,191 ---------- ----------- --------- ---------- ------------ ---------- CURRENT ASSETS: Cash and Temp. Cash Invest. 62 7,560 2,138 9,760 - 9,760 Notes Receivable-Intercompany 18 - - 18 (18) - Allowance for Uncollect. Accounts - (1,494) - (1,494) - (1,494) Accounts Receivable-Intercompany - - 134 134 (134) - Accounts Receivable - 7,358 67 7,425 - 7,425 Unbilled Uility Revenue - 6,124 - 6,124 - 6,124 Materials and Supplies - 3,339 - 3,339 - 3,339 Prepayments - 48 3 51 - 51 ---------- ----------- --------- ---------- ------------ ---------- 80 22,935 2,342 25,357 (152) 25,205 ---------- ----------- --------- ---------- ------------ ---------- OTHER ASSETS: Invest. in Assoc. Companies 143,469 - - 143,469 (143,469) - Goodwill - 7,921 334 8,255 - 8,255 Other Assets (40) 365 233 558 - 558 ---------- ----------- --------- ---------- ------------ ---------- 143,429 8,286 567 152,282 (143,469) 8,813 ---------- ----------- --------- ---------- ------------ ---------- TOTAL ASSETS $ 143,509 $ 238,388 $ 2,933 $ 384,830 $ (143,621) $ 241,209 ========== =========== ========= ========== ============ ========== CAPITALIZATION & LIABILITIES CAPITALIZATION: Common Stock $ 29 $ 59,770 $ 1,779 $ 61,578 $ (61,549) $ 29 Paid - in - Capital 111,621 50,822 - 162,443 (50,822) 111,621 Earn. Reinvest. in the Bus. 26,699 25,664 898 53,261 (26,562) 26,699 Accum. Other Comp. Income 4,171 4,318 218 8,707 (4,536) 4,171 ---------- ----------- --------- ---------- ------------ ---------- Total Common Stock Equity 142,520 140,574 2,895 285,989 (143,469) 142,520 ---------- ----------- --------- ---------- ------------ ---------- Long-Term Debt, Net of Current Portion - 21,178 - 21,178 - 21,178 ---------- ----------- --------- ---------- ------------ ---------- Total Capitalization 142,520 161,752 2,895 307,167 (143,469) 163,698 ---------- ----------- --------- ---------- ------------ ---------- Minority Interest in Foreign Subsidiaries - 28,785 - 28,785 - 28,785 ---------- ----------- --------- ---------- ------------ ---------- CURRENT AND ACCRUED LIABILITIES: Notes Payable - Intercompany 170 - - 170 - 170 Notes Payable to Banks - 2,278 - 2,278 - 2,278 Current Portion of Long-Term Debt - 10,564 - 10,564 - 10,564 Accounts Payable - 18,580 55 18,635 (152) 18,483 Accounts Payable-Intercompany 810 - - 810 - 810 Other Accruals and Current Liabilities 9 799 (17) 791 - 791 ---------- ----------- --------- ---------- ------------ ---------- 989 32,221 38 33,248 (152) 33,096 ---------- ----------- --------- ---------- ------------ ---------- DEFERRED CREDITS: Accum. Deferred Income Taxes - 15,197 - 15,197 - 15,197 Other Deferred Credits - 433 - 433 - 433 ---------- ----------- --------- ---------- ------------ ---------- - 15,630 - 15,630 - 15,630 ---------- ----------- --------- ---------- ------------ ---------- TOTAL CAPITALIZATION & LIABILITIES $ 143,509 $ 238,388 $ 2,933 $ 384,830 $ (143,621) $ 241,209 ========== =========== ========= ========== ============ ========== 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, 2002, incorporated herein by reference. HORIZON ENERGY DEVELOPMENT, B.V. CONSOLIDATING STATEMENT OF INCOME FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 (THOUSANDS OF DOLLARS) Consolidated UE Horizon Energy Total Before Eliminations Horizon B.V. Horizon B.V.(Consolidated) Kromeriz Development s.r.o. Eliminations (Dr) Cr and Subsidiaries ---------- -------------- -------- ------------------ ------------ ------------ ---------------- OPERATING REVENUE: $ - $ 94,630 $ 602 $ 998 $ 96,230 $ (1,001) $ 95,229 ---------- ----------- --------- ---------- ------------ ---------- --------- OPERATING EXPENSE: Fuel Used in Heat and Electric Generation - 50,224 306 - 50,530 - 50,530 Operation and Maintenance 26 22,738 247 760 23,771 (1,001) 22,770 Property, Franchise & Other Taxes 20 2,220 1 98 2,339 - 2,339 Depreciation, Depletion and Amortization - 11,922 27 21 11,970 - 11,970 Income Taxes - 1,996 - 90 2,086 - 2,086 ---------- ----------- --------- ---------- ------------ ---------- --------- 46 89,100 581 969 90,696 (1,001) 89,695 ---------- ----------- --------- ---------- ------------ ---------- --------- Operating Income (Loss) (46) 5,530 21 29 5,534 - 5,534 ---------- ----------- --------- ---------- ------------ ---------- --------- OTHER INCOME: Unremitted Earnings of Subsidiaries 4,190 - - - 4,190 (4,190) - Other (234) 1,141 3 99 1,009 - 1,009 ---------- ----------- --------- ---------- ------------ ---------- --------- 3,956 1,141 3 99 5,199 (4,190) 1,009 ---------- ----------- --------- ---------- ------------ ---------- --------- Income (Loss) Before Interest Charges and and Minority Interest in Foreign Subsidiaries 3,910 6,671 24 128 10,733 (4,190) 6,543 ---------- ----------- --------- ---------- ------------ ---------- --------- INTEREST CHARGES: Interest on Long-Term Debt - 1,897 7 - 1,904 - 1,904 Interest-Intercompany 4 - - - 4 - 4 Other Interest 1 - - - 1 - 1 ---------- ----------- --------- ---------- ------------ ---------- --------- 5 1,897 7 - 1,909 - 1,909 ---------- ----------- --------- ---------- ------------ ---------- --------- Minority Interest in Foreign Subsidiaries - (730) - - (730) - (730) ---------- ----------- --------- ---------- ------------ ---------- --------- Net Income (Loss) Available for Common Stock $ 3,905 $ 4,044 $ 17 $ 128 $ 8,094 $ (4,190) $ 3,904 ========== =========== ========= ========== ============ ========== ========= 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, 2002, incorporated herein by reference. HORIZON ENERGY DEVELOPMENT, B.V. CONSOLIDATING STATEMENT OF EARNINGS REINVESTED IN THE BUSINESS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 (THOUSANDS OF DOLLARS) Consolidated UE Power Horizon Energy Total Before Eliminations Horizon B.V. Horizon B.V. (Consolidated) Development Kromeriz Development s.r.o. Eliminations (Dr) Cr and Subsidiaries ------------ -------------- ----------- -------- ------------------ ------------ ------------ ---------------- EARNINGS REINVESTED IN THE BUSINESS Balance at Beginning of Year $ 22,794 $ 21,620 $ (258) $ (1,642) $ 770 $ 43,284 $ (20,489) $ 22,795 Net Income (Loss) Available for Common Stock 3,905 4,044 - 17 128 8,094 (4,190) 3,904 Elim. of Power Development and Kromeriz Earn. Reinvest. in Business due to liquidation of Power Development and sale of Kromeriz - - 258 1,625 - 1,883 (1,883) - Dividends on Common Stock - - - - - - - - ---------- ----------- --------- ---------- ------------ ---------- --------- ---------- Balance at End of Year $ 26,699 $ 25,664 $ - $ - $ 898 $ 53,261 $ (26,562) $ 26,699 ========== =========== ========= ========== ============ ========== ========= ========== 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, 2002, incorporated herein by reference. HORIZON ENERGY DEVELOPMENT, B.V. CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 (THOUSANDS OF DOLLARS) Consolidated UE Power Horizon Energy Total Before Horizon B.V. Horizon B.V.(Consolidated) Development Kromeriz Development s.r.o. Eliminations Eliminations and Subsidiaries ---------- -------------- ----------- -------- ------------------ ------------ ------------ ---------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net Income $ 3,905 $ 4,044 $ - $ 17 $ 128 $ 8,094 $ (4,190) $ 3,904 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Unremit. Earn. of Subs. (4,190) - - - - (4,190) 4,190 - Depreciation, Depletion & Amortization - 11,922 - 27 21 11,970 - 11,970 Deferred Income Taxes - 2,453 - - - 2,453 - 2,453 Minority Interest in Foreign Subsidiaries - 730 - - - 730 - 730 Other 233 686 - - 23 942 - 942 Change in: Accounts Receivable-Intercompany - - - - (19) (19) 19 - Receivables and Unbilled Utility Revenue - (1,498) - (359) 37 (1,820) - (1,820) Material and Supplies - 279 - - - 279 - 279 Prepayments - (17) - (1) - (18) - (18) Accounts Payable - 4,293 - 403 3 4,699 293 4,992 Accounts Payable - Intercompany 4 - - - - 4 - 4 Other Accruals and Current Liabilities 9 275 - 37 (96) 225 - 225 Other Assets (5) (706) - (189) - (900) - (900) Other Liabilities - 290 - - - 290 - 290 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Net Cash Provided by (Used in) Operations (44) 22,751 - (65) 97 22,739 312 23,051 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- CASH FLOWS FROM INVESTING ACTIVITIES: Capital Expenditures - (4,240) - - (4) (4,244) - (4,244) Change in Notes Receivable - Intercompany - - - - 148 148 (148) - Other 22 1,079 - 26 60 1,187 (81) 1,106 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Net Cash Provided by (Used In) Investing Activities 22 (3,161) - 26 204 (2,909) (229) (3,138) ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- CASH FLOWS FROM FINANCING ACTIVITIES: Change in Notes Payable to Banks - (12,350) - - - (12,350) - (12,350) Change in Notes Payable-Intercompany 50 - - 164 - 214 (164) 50 Reduction of Long-Term Debt - (6,023) - - - (6,023) - (6,023) ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Net Cash Provided by (Used in) Financing Activities 50 (18,373) - 164 - (18,159) (164) (18,323) ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Effect of Exchange Rates on Cash - 1,917 - (52) 367 2,232 - 2,232 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Net Increase in Cash and Temporary Cash Investments 28 3,134 - 73 668 3,903 (81) 3,822 Cash and Temporary Cash Investments of Beginning of Period 34 4,426 2 6 1,470 5,938 - 5,938 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Cash and Temporary Cash Investments at End of Year $ 62 $ 7,560 $ 2 $ 79 $ 2,138 $ 9,841 $ (81) $ 9,760 ========== ========== ========== ========== ========== ========== ========== ========== 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, 2002, incorporated herein by reference. HORIZON ENERGY DEVELOPMENT, B.V. CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 (THOUSANDS OF DOLLARS) Consolidated UE Power Horizon Energy Total Before Eliminations Horizon B.V. Horizon B.V. (Consolidated) Development Kromeriz Development s.r.o. Eliminations (Dr) Cr and Subsidiaries ---------- -------------- ----------- -------- ------------------ ------------ ------------ ---------------- Net Income (Loss) Available for Common Stock $ 3,905 $ 4,044 $ - $ 17 $ 128 $ 8,094 $ (4,190) $ 3,904 ---------- ----------- --------- ---------- ------------ ---------- --------- ---------- Other Comprehensive Income (Loss) : Foreign Currency Translation Adjustment 24,083 23,353 713 299 432 48,880 (24,797) 24,083 Unrealized Loss on Derivative Financial Instruments Arising During the Period (110) (110) - - - (220) 110 (110) Reclassification Adjustment for Realized Loss on Derivative Financial Instruments in Net Income 602 602 - - - 1,204 (602) 602 ---------- ----------- --------- ---------- ------------ ---------- --------- ---------- Other Comprehensive Income (Loss), Before Tax 24,575 23,845 713 299 432 49,864 (25,289) 24,575 Income Tax Benefit Related to Unrealized Loss on Derivative Financial Instruments Arising During the Period (34) (34) - - - (68) 34 (34) Reclassification Adjustment for Income Tax Benefit on Derivative Financial Instruments in Net Income 187 187 - - - 374 (187) 187 ---------- ----------- --------- ---------- ------------ ---------- --------- ---------- Income Taxes - Net 153 153 - - - 306 (153) 153 ---------- ----------- --------- ---------- ------------ ---------- --------- ---------- Other Comprehensive Income 24,422 23,692 713 299 432 49,558 (25,136) 24,422 ---------- ----------- --------- ---------- ------------ ---------- --------- ---------- Comprehensive Income $ 28,327 $ 27,736 $ 713 $ 316 $ 560 $ 57,652 $(29,326) $ 28,326 ========== =========== ========= ========== ============ ========== ========= ========== 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, 2002, incorporated herein by reference. UNITED ENERGY, a.s. CONSOLIDATING BALANCE SHEET AT SEPTEMBER 30, 2002 (THOUSANDS OF DOLLARS) Consolidated Teplarna Total Before UE and UE Liberec ENOP Eliminations Eliminations Subsidiaries ------------ ------------- ------------ ------------ ------------ ------------ ASSETS PROPERTY, PLANT & EQUIPMENT $ 311,127 $ 19,369 $ 38 $ 330,534 $ - $ 330,534 Less: Accumulated DD&A 116,710 6,642 15 123,367 - 123,367 ------------ ------------- ------------ ------------ ------------ ------------ 194,417 12,727 23 207,167 - 207,167 ------------ ------------- ------------ ------------ ------------ ------------ CURRENT ASSETS: Cash and Temporary Cash Investments 4,519 2,645 396 7,560 - 7,560 Notes Receivable - Intercompany - - - - - - Allowance for Uncollectible Accounts (901) (589) (4) (1,494) - (1,494) Accounts Receivable - Intercompany - - - - - - Accounts Receivable 5,338 2,012 8 7,358 - 7,358 Unbilled Uility Revenue 5,897 227 - 6,124 - 6,124 Materials and Supplies 3,217 122 - 3,339 - 3,339 Prepayments 36 12 - 48 - 48 ------------ ------------- ------------ ------------ ------------ ------------ 18,106 4,429 400 22,935 - 22,935 ------------ ------------- ------------ ------------ ------------ ------------ OTHER ASSETS: Investment in Assoc. Companies 10,726 - - 10,726 (10,726) - Goodwill 8,763 (935) 93 7,921 - 7,921 Other Assets 355 10 - 365 - 365 ------------ ------------- ------------ ------------ ------------ ------------ 19,844 (925) 93 19,012 (10,726) 8,286 ------------ ------------- ------------ ------------ ------------ ------------ TOTAL ASSETS $ 232,367 $ 16,231 $ 516 $ 249,114 $ (10,726) $ 238,388 ============ ============= ============ ============ ============ ============ 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 25,664 54 (305) 25,413 251 25,664 Accum. Other Comprehensive Income 4,318 (1,159) (31) 3,128 1,190 4,318 ------------ ------------- ------------ ------------ ------------ ------------ Total Common Stock Equity 140,574 10,176 550 151,300 (10,726) 140,574 ------------ ------------- ------------ ------------ ------------ ------------ Long-Term Debt, Net of Current Portion 21,178 - - 21,178 - 21,178 ------------ ------------- ------------ ------------ ------------ ------------ Total Capitalization 161,752 10,176 550 172,478 (10,726) 161,752 ------------ ------------- ------------ ------------ ------------ ------------ Minority Interest in Foreign Subsidiaries 24,012 4,773 - 28,785 - 28,785 ------------ ------------- ------------ ------------ ------------ ------------ CURRENT AND ACCRUED LIABILITIES: Notes Payable - Intercompany - - - - - - Notes Payable to Banks 2,278 - - 2,278 - 2,278 Current Portion of Long-Term Debt 10,564 - - 10,564 - 10,564 Accounts Payable 17,309 1,192 68 18,569 11 18,580 Accounts Payable - Intercompany 11 - - 11 (11) - Other Accruals and Current Liabilities 823 (49) 25 799 - 799 ------------ ------------- ------------ ------------ ------------ ------------ 30,985 1,143 93 32,221 - 32,221 ------------ ------------- ------------ ------------ ------------ ------------ DEFERRED CREDITS: Accumulated Deferred Income Taxes 15,185 139 (127) 15,197 - 15,197 Other Deferred Credits 433 - - 433 - 433 ------------ ------------- ------------ ------------ ------------ ------------ 15,618 139 (127) 15,630 - 15,630 ------------ ------------- ------------ ------------ ------------ ------------ TOTAL CAPITALIZATION & LIABILITIES $ 232,367 $ 16,231 $ 516 $ 249,114 $ (10,726) $ 238,388 ============ ============= ============ ============ ============ ============ 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, 2002, incorporated herein by reference. UNITED ENERGY, a.s. CONSOLIDATING STATEMENT OF INCOME FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 (THOUSANDS OF DOLLARS) Consolidated Teplarna Total Before Eliminations UE and UE Liberec ENOP Eliminations (Dr) Cr Subsidiaries ------------ ------------- ------------ ------------ ------------ ------------ OPERATING REVENUE: $ 79,711 $ 17,626 $ 2 $ 97,339 $ (2,709) $ 94,630 ------------ ------------- ------------ ------------ ------------ ------------ OPERATING EXPENSE: Fuel Used in Heat and Electric Generation 38,844 11,381 (1) 50,224 - 50,224 Operation and Maintenance 20,146 5,267 34 25,447 (2,709) 22,738 Property, Franchise & Other Taxes 1,861 359 - 2,220 - 2,220 Depreciation, Depletion and Amortization 11,211 1,000 (289) 11,922 - 11,922 Income Taxes 2,000 (66) 62 1,996 - 1,996 ------------ ------------- ------------ ------------ ------------ ------------ 74,062 17,941 (194) 91,809 (2,709) 89,100 ------------ ------------- ------------ ------------ ------------ ------------ Operating Income (Loss) 5,649 (315) 196 5,530 - 5,530 ------------ ------------- ------------ ------------ ------------ ------------ OTHER INCOME: Unremitted Earnings of Subsidiaries 123 - - 123 (123) - Other 967 148 26 1,141 - 1,141 ------------ ------------- ------------ ------------ ------------ ------------ 1,090 148 26 1,264 (123) 1,141 ------------ ------------- ------------ ------------ ------------ ------------ Income (Loss) Before Interest Charges and and Minority Interest in Foreign Subsidiaries 6,739 (167) 222 6,794 (123) 6,671 ------------ ------------- ------------ ------------ ------------ ------------ INTEREST CHARGES: Interest on Long-Term Debt 1,897 - - 1,897 - 1,897 Interest-Intercompany - - - - - - Other Interest - - - - - - ------------ ------------- ------------ ------------ ------------ ------------ 1,897 - - 1,897 - 1,897 ------------ ------------- ------------ ------------ ------------ ------------ Minority Interest in Foreign Subsidiaries (798) 68 - (730) - (730) ------------ ------------- ------------ ------------ ------------ ------------ Net Income (Loss) Available for Common Stock $ 4,044 $ (99) $ 222 $ 4,167 $ (123) $ 4,044 ============ ============= ============ ============ ============ ============ 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, 2002, incorporated herein by reference. UNITED ENERGY, a.s. CONSOLIDATING STATEMENT OF EARNINGS REINVESTED IN THE BUSINESS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 (THOUSANDS OF DOLLARS) Consolidated Teplarna Total Before Eliminations UE and UE Liberec ENOP Eliminations (Dr) Cr Subsidiaries ------------ ------------- ------------ ------------ ------------ ------------ EARNINGS REIVESTED IN THE BUSINESS Balance at Beginning of Year $ 21,620 $ 153 $ (527) $ 21,246 $ 374 $ 21,620 Net Income (Loss) Available for Common Stock 4,044 (99) 222 4,167 (123) 4,044 ------------ ------------- ------------ ------------ ------------ ------------ Balance at End of Year $ 25,664 $ 54 $ (305) $ 25,413 $ 251 $ 25,664 ============ ============= ============ ============ ============ ============ 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, 2002, incorporated herein by reference. UNITED ENERGY, a.s. CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 (THOUSANDS OF DOLLARS) Total Before Consolidated Teplarna Eliminations UE and UE Liberec ENOP & Adjustments Eliminations Subsidiaries ------------ ------------ ------------ ------------ ------------ ------------ CASH FLOWS FROM OPERATING ACTIVITIES: Net Income (Loss) $ 4,044 $ (99) $ 222 $ 4,167 $ (123) $ 4,044 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Unremitted Earnings of Subsidiaries (123) - - (123) 123 - Depreciation, Depletion & Amortization 11,211 1,000 (289) 11,922 - 11,922 Deferred Income Taxes 2,304 87 62 2,453 - 2,453 Minority Interest in Foreign Subsidiaries 798 (68) - 730 - 730 Other 738 (58) 6 686 - 686 Change in: Receivables and Unbilled Utility Revenue (1,715) 104 113 (1,498) - (1,498) Material and Supplies 281 (2) - 279 - 279 Prepayments (14) (3) - (17) - (17) Accounts Payable 4,887 (581) (9) 4,297 (4) 4,293 Accounts Payable - Intercompany (4) - - (4) 4 - Other Accruals and Current Liabilities 52 242 (19) 275 - 275 Other Assets (539) (134) (33) (706) - (706) Other Liabilities 290 - - 290 - 290 ------------ ------------ ------------ ------------ ------------ ------------ Net Cash Provided by (Used in) Operations 22,210 488 53 22,751 - 22,751 ------------ ------------ ------------ ------------ ------------ ------------ CASH FLOWS FROM INVESTING ACTIVITIES: Capital Expenditures (3,325) (915) - (4,240) - (4,240) Other 1,016 22 41 1,079 - 1,079 ------------ ------------ ------------ ------------ ------------ ------------ Net Cash Provided by (Used In) Investing Activities (2,309) (893) 41 (3,161) - (3,161) ------------ ------------ ------------ ------------ ------------ ------------ CASH FLOWS FROM FINANCING ACTIVITIES: Change in Notes Payable to Banks (12,350) - - (12,350) - (12,350) Reduction of Long-Term Debt (6,023) - - (6,023) - (6,023) ------------ ------------ ------------ ------------ ------------ ------------ Net Cash Used in Financing Activities (18,373) - - (18,373) - (18,373) ------------ ------------ ------------ ------------ ------------ ------------ Effect of Exchange Rates on Cash 1,104 745 68 1,917 - 1,917 ------------ ------------ ------------ ------------ ------------ ------------ Net Increase in Cash and Temporary Cash Investments 2,632 340 162 3,134 - 3,134 Cash and Temporary Cash Investments of Beginning of Period 1,887 2,305 234 4,426 - 4,426 ------------ ------------ ------------ ------------ ------------ ------------ Cash and Temporary Cash Investments at End of Year $ 4,519 $ 2,645 $ 396 $ 7,560 $ - $ 7,560 ============ ============ ============ ============ ============ ============ 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, 2002, incorporated herein by reference. UNITED ENERGY, a.s. CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 (THOUSANDS OF DOLLARS) Consolidated Teplarna Total Before Eliminations UE and UE Liberec ENOP Eliminations (Dr) Cr Subsidiaries ------------ ------------- ------------ ------------ ------------ ------------ Net Income (Loss) Available for Common Stock $ 4,044 $ (99) $ 222 $ 4,167 $ (123) $ 4,044 ------------ ------------- ------------ ------------ ------------ ------------ Other Comprehensive Income (Loss): Foreign Currency Translation Adjustment 23,354 2,088 85 25,527 (2,174) 23,353 Unrealized Loss on Derivative Financial Instruments Arising During the Period (110) - - (110) - (110) Reclassification Adjustment for Realized Loss on Derivative Financial Instruments in Net Income 602 - - 602 - 602 ------------ ------------- ------------ ------------ ------------ ------------ Other Comprehensive Income (Loss), Before Tax 23,846 2,088 85 26,019 (2,174) 23,845 Income Tax Benefit Related to Unrealized Loss on Derivative Financial Instruments Arising During the Period (34) - - (34) - (34) Reclassification Adjustment for Income Tax Benefit on Derivative Financial Instruments in Net Income 187 - - 187 - 187 ------------ ------------- ------------ ------------ ------------ ------------ Income Taxes - Net 153 - - 153 - 153 ------------ ------------- ------------ ------------ ------------ ------------ Other Comprehensive Income 23,693 2,088 85 25,866 (2,174) 23,692 ------------ ------------- ------------ ------------ ------------ ------------ Comprehensive Income $ 27,737 $ 1,989 $ 307 $ 30,033 $ (2,297) $ 27,736 ============ ============= ============ ============ ============ ============ 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, 2002, incorporated herein by reference.EXHIBITS
A. *(1) Annual Report on Form 10-K for fiscal year ended September 30, 2002 filed December 16, 2002 (File No. 1-3880). (2) National Fuel Gas Company 2002 Annual Report to Shareholders (paper copy submitted under cover of Form SE). *(3) National Fuel Gas Company Proxy Statement, dated and filed January 10, 2003 (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, designated as Exhibit ex99-1 for EDGAR purposes. (2) National Fuel Gas Distribution Corporation *i By-Laws, as amended March 11, 1998. (Exhibit (2)i, designated as Exhibit EX-99-1 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1999.) *ii Restated Certificate of Incorporation of National Fuel Gas Distribution Corporation, dated May 9, 1988 (Exhibit B-1 in File No. 70-7478). (3) National Fuel Gas Supply Corporation *i By-Laws, as amended (Exhibit (3)i, Form U5S for fiscal year ended September 30, 1989). *ii Articles of Incorporation of United Natural Gas Company, dated February 1, 1886 (Exhibit (3)ii, Form U5S for fiscal year ended September 30, 1984). *iii Certificate of Merger and Consolidation dated January 2, 1951 (Exhibit (3)iii, Form U5S for fiscal year ended September 30, 1984). *iv Joint Agreement and Plan of Merger, dated June 18, 1974 (Exhibit (3)iv, Form U5S for fiscal year ended September 30, 1987). *v Certificate of Merger and Plan of Merger of Penn-York Energy Corporation and National Fuel Gas Supply Corporation dated April 1, 1994 (Exhibit (3)v, designated as Exhibit EX-99-3 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1994). * Incorporated herein by reference as indicated.* Incorporated herein by reference as indicated.EXHIBITS (Continued) (4) Leidy Hub, Inc. (formerly Enerop Corporation) *i By-Laws (Exhibit A-15, File No. 70-7478). *ii Restated Certificate of Incorporation of Enerop Corporation dated October 15, 1993. (Exhibit (4)ii, designated as Exhibit Ex-99-2 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1999). *iii Action by Board of Directors to amend the By-Laws dated October 10, 1993 (Exhibit (4)iii, designated as Exhibit EX-3 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1993). (5) Seneca Resources Corporation *i By-Laws, as amended (Exhibit (5)i, Form U5S for fiscal year ended September 30, 1989). *ii Articles of Incorporation of Mars Natural Gas Company dated March 29, 1913 (Exhibit (5)ii, Form U5S for fiscal year ended September 30, 1984). *iii Secretary's Certificate dated January 4, 1918 (Exhibit (5)iii, Form U5S for fiscal year ended September 30, 1984). *iv Articles of Amendment, dated March 30, 1955 (Exhibit (5)iv, Form U5S for fiscal year ended September 30, 1984). *v Certificate of Amendment changing name of the Mars Company to Seneca Resources Corporation, January 29, 1976 (Exhibit (5)v, Form U5S for fiscal year ended September 30, 1984). *vi Certificate of Merger and Plan of Merger of Seneca Resources Corporation and Empire Exploration, Inc. dated April 29, 1994 (Exhibit (5)vi, designated as Exhibit EX-99-2 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1994). *vii Articles of Merger and Plan of Merger of HarCor Energy, Inc. with and into Seneca Resources Corporation, filed August 31, 1999. (Exhibit (5)vii, designated as Exhibit EX-99-3 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1999.) *viii Certificate of Ownership and Merger merging HarCor Energy, Inc. into Seneca Resources Corporation filed August 31, 1999. (Exhibit (5)viii, designated as Exhibit EX-99-4 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1999.) * Incorporated herein by reference as indicated. 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 EX-99-5 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1999.) * Incorporated herein by reference as indicated. EXHIBITS (Continued) *iv Articles of Amendment of the Articles of the Corporation, dated June 8, 2000. (Exhibit (9)iv, designated as Exhibit EX-99-2 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2000.) (10) Data-Track Account Services, Inc. *i Restated Articles of Incorporation, dated March 2, 1984 (Exhibit A-1, File No. 70-7512). *ii By-Laws (Exhibit A-2, File No. 70-7512). (11) National Fuel Resources, Inc. *i Articles of Incorporation, dated January 9, 1991 (Exhibit (14)i, designated as Exhibit EX-3(a) for EDGAR purposes, Form U5S for fiscal year ended September 30, 1992). *ii By-Laws (Exhibit (14)ii, designated as Exhibit EX-3(b) for EDGAR purposes, Form U5S for fiscal year ended September 30, 1992). (12) Horizon Power, Inc. (formerly NFR Power, Inc.) *i Certificate of Incorporation, dated December 13, 1995. (Exhibit (13)i, designated as Exhibit EX-3-1 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1999.) *ii By-Laws. (Exhibit (13)ii, designated as Exhibit EX-3-2 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1999.) *iii Certificate of Amendment of the Certificate of Incorporation of NFR Power, Inc., dated June 20, 2001. (Designated as Exhibit ex99-5 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2001). (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) * Incorporated herein by reference as indicated. EXHIBITS (Continued) (15) Energy Systems North East, LLC *i Certificate of Formation, dated September 26, 2000. (Designated as Exhibit ex99-8 for EDGAR purposes, 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 EX-99-2 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1996). *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 EX-99-9 for EDGAR purposes, Form U5S/A for fiscal year ended September 30, 1996). *ii Notarial Deed, dated December 2, 1993 (Exhibit (15)ii, designated as Exhibit EX-99-10 for EDGAR purposes, Form U5S/A for fiscal year ended September 30, 1996). *iii Notarial Deed, dated June 28, 1996 (Exhibit (15)iii, designated as Exhibit EX-99-11 for EDGAR purposes, Form U5S/A for fiscal year ended September 30, 1996). * Incorporated herein by reference as indicated. EXHIBITS (Continued) *iv Notarial Deed, dated November 27, 1996 (Exhibit (15)iv, designated as Exhibit EX-99-12 for EDGAR purposes, Form U5S/A for fiscal year ended September 30, 1996). v Notarial Deed, dated April 24, 2002 that adopted new Founder's Deed, dated April 24, 2002. Designated as Exhibit ex99-2 for EDGAR purposes. (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 EX-99-6 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1999. ii Founders Deed, dated November 15, 1994, as amended on December 13, 2001. Designated as Exhibit ex99-3 for EDGAR purposes. (23) ENOP, s.r.o. i Founders Deed, dated December 19, 1995, as amended On December 13, 2001. Designated as Exhibit ex99-4 for EDGAR purposes. (24) United Energy, a.s. *i Notarial Record from Prvni severozapadni teplarenska, a.s., dated September 28, 1998. (Exhibit (28) i, designated as Exhibit EX-99-3 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2000.) *ii Notarial Record from Severoceske Teplarny, a.s. dated September 28, 1998. (Exhibit (28) ii, designated as Exhibit EX-99-4 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2000.) * Incorporated herein by reference as indicated. EXHIBITS (Continued) *iii Court Resolution, dated December 9, 1999. (Exhibit (28) iii, designated as Exhibit EX-99-5 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2000.) *iv Court Resolution, dated July 13, 2000. (Exhibit (28) iv, designated as Exhibit EX-99-6 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2000.) v Articles of Association, dated April 28, 1992, as amended on June 28, 2001 as amended on June 27, 2002. Designated as Exhibit ex99-5 for EDGAR purposes. (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 EX-99-7 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1999.) (26) Roystone Gas Processing Plant Partnership *i Facility Construction, Ownership and Operating Agreement, dated November 1, 1994. (Exhibit (33)i, designated as Exhibit EX-99-8 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1999.) ii Ratification and Joinder Agreement, dated September 1, 2002, designated as Exhibit EX-99-6 for EDGAR purposes. (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. Designated as Exhibit ex99-7 for EDGAR purposes. *iii Marketing Partnership Agreement among Coastal Gas Marketing DirectLink Corp., MGS Marketing Corp., Niagara Independence Marketing Company and Williams Independence Marketing Company (Exhibit (27)iii, designated as Exhibit EX-99-5 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1997). * Incorporated herein by reference as indicated. EXHIBITS (Continued) (28) Seneca Independence Pipeline Company *i Certificate of Incorporation of Empire Oklahoma, Inc., dated April 16, 1996 (Exhibit (28)i, designated as Exhibit EX-99-6 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1997). *ii Certificate of Amendment of Certificate of Incorporation of Empire Oklahoma, Inc., dated July 24, 1997 (Exhibit (28)ii, designated as Exhibit EX-99-7 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1997). *iii By-Laws amended September 20, 1999. (Exhibit (35)iii, designated as Exhibit EX-99-10 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1999.) (29) National Fuel Exploration Corp. i Certificate of Amendment and Registration of Restated Articles dated 10/31/02. Designated as Exhibit ex99-8 for EDGAR purposes. ii Articles of Amendment dated 10/1/02. Designated as Exhibit ex99-9 for EDGAR purposes. iii Certificate of Amendment and Registration of Restated Articles dated 8/2/02. Designated as Exhibit ex99-10 for EDGAR purposes. iv Articles of Amendment dated 8/2/02. Designated as Exhibit ex99-11 for EDGAR purposes. v Certificate of Amendment and Registration of Restated Articles dated 7/30/02. Designated as Exhibit ex99-12 for EDGAR purposes. vi Articles of Amendment dated July 29, 2002. Designated as Exhibit ex99-13 for EDGAR purposes. *vii Certificate of Amalgamation and Articles of Amalgamation, dated June 16, 2000. (Exhibit (33)i, designated as Exhibit EX-99-7 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2000.) *viii By-Laws No. 1, dated April 28, 2000. (Exhibit (33)ii, designated as Exhibit EX-99-8 for EDGAR purposes, Form U5S for fiscal year ended September 30, 2000.) (30) Player Resources Ltd. i Certificate of Amendment and Registration of Restated Articles dated 8/2/02. Designated as Exhibit ex99-14 for EDGAR purposes. * Incorporated herein by reference as indicated. EXHIBITS (Continued) ii Articles of Amendment dated 8/2/02. Designated as Exhibit ex99-15 for EDGAR purposes. iii Certificate of Amendment and Registration of Restated Articles dated 7/29/02. Designated as Exhibit ex99-16 for EDGAR purposes. iv Articles of Amendment dated 7/29/02. Designated as Exhibit ex99-17 for EDGAR purposes. *v 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). *vi 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). (31) Seneca Player Corp. i Certificate of Incorporation of JN Acquisition Corp. dated October 26, 1999. Designated as Exhibit ex99-18 for EDGAR purposes. ii Certificate of Amendment of Certificate of Incorporation of Seneca Player Corp. dated December 19, 2001. Designated as Exhibit ex-99-19 for EDGAR purposes. (32) 3062782 Nova Scotia Company i Certificate of Incorporation dated December 27, 2001. Designated as Exhibit ex99-20 for EDGAR purposes. ii Memorandum and Articles of Association of 306782 Nova Scotia Company dated December 27, 2001. Designated as Exhibit ex99-21 for EDGAR purposes. (33) 3062783 Nova Scotia Company i Certificate of Incorporation dated December 27, 2001. Designated as Exhibit ex-99-22 for EDGAR purposes. ii Memorandum and Articles of Association of 3062783 Nova Scotia Company dated December 27, 2001. Designated as Exhibit ex99-23 for EDGAR purposes. (34) Seneca New Brunswick Limited Partnership i Declaration of Limited Partnership. Designated as Exhibit ex99-24 for EDGAR purposes. ii Limited Partnership Agreement dated December 31, 2001, between 3062783 Nova Scotia Company and 3062782 Nova Scotia Company. Designated as Exhibit ex99-25 for EDGAR purposes. * Incorporated herein by reference as indicated. EXHIBITS (Continued) (35) Horizon Energy Bulgaria Ltd. i Articles of Association of One-Man Limited Liability Company dated August 25, 2001, designated as Exhibit ex99-26 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). D. Tax Allocation Agreement pursuant to Rule 45(c). Designated as Exhibit ex99-27 for EDGAR purposes. E. *(1) Employee Relocation Manual filed pursuant to Rule 48(b) (Exhibit E(1), designated as Exhibit EX-99-9 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1997). *(2) National Fuel Employee Computer Purchase Program filed pursuant to Rule 48(b). (Exhibit E(2), designated as Exhibit EX99-15 for EDGAR purposes, Form U5S for fiscal year ended September 30, 1998). (3) Independence Pipeline Company Unaudited Financial Statements for the quarter and year-to-date period ended December 31, 2001 and for the quarter and year-to-date period ended September 30, 2002 filed pursuant to Rule 16. These documents are subject to a request for confidential treatment under Rule 104(b). F. Schedules supporting items of this Report - None. G. *(1) Organization chart showing relationship to United Energy, a.s., a foreign utility company. (Exhibit G (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, 2001. Designated as Exhibit ex99-28 for EDGAR purposes. (2) Teplarna Liberec, a.s. Audited Financial Statements for the Calendar Year Ended December 31, 2001. Designated as Exhibit ex99-29 for EDGAR purposes. (3) Teplarna Kromeriz, a.s. Audited Financial Statements for the Calendar Year Ended December 31, 2001. Designated as Exhibit ex99-30 for EDGAR purposes. * Incorporated herein by reference as indicated. EXHIBITS (Continued) (4) Horizon Power, Inc. Audited Financial Statements for the Fiscal Year Ended September 30, 2002. Designated as Exhibit ex99-31 for EDGAR purposes. (5) Energy Systems North East, LLC Unaudited Financial Statements for the Fiscal Year Ended September 30, 2002. Designated as Exhibit ex99-32 for EDGAR purposes.
S I G N A T U R E
The undersigned System company has duly caused this annual report to be signed on its behalf by the undersigned thereunto duly authorized pursuant to the requirements of the Public Utility Holding Company Act of 1935.
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NATIONAL FUEL GAS COMPANY |
EXHIBIT INDEX
ex99-1 National Fuel Gas Company By-Laws as amended on December 12, 2002 ex99-2 Notarial Deed, dated April 24, 2002 that adopted new Founder's Deed, dated April 24, 2002, of Horizon Energy Development, s.r.o. ex99-3 Founders Deed, dated November 15, 1994, as amended on December 13, 2001, of Lounske tepelne hospodarstvi, s.r.o. ex99-4 Founders Deed, dated December 19, 1995, as amended on December 13, 2001, of ENOP, s.r.o. ex99-5 Articles of Association, dated April 28, 1992, as amended on June 28, 2001 as amended on June 27, 2002, of United Energy, a.s. ex99-6 Ratification and Joinder Agreement, dated September 1, 2002, of Roystone Gas Processing Plant Partnership ex99-7 By-Laws as amended January 2, 2002, of Niagara Independence Marketing Company ex99-8 Certificate of Amendment and Registration of Restated Articles dated 10/31/02, of National Fuel Exploration Corp. ex99-9 Articles of Amendment dated 10/1/02, of National Fuel Exploration Corp. ex99-10 Certificate of Amendment and Registration of Restated Articles dated 8/2/02, of National Fuel Exploration Corp. ex99-11 Articles of Amendment dated 8/2/02, of National Fuel Exploration Corp. ex99-12 Certificate of Amendment and Registration of Restated Articles dated 7/30/02, of National Fuel Exploration Corp. ex99-13 Articles of Amendment dated July 29, 2002, of National Fuel Exploration Corp. ex99-14 Certificate of Amendment and Registration of Restated Articles dated 8/2/02, of Player Resources Ltd. ex99-15 Articles of Amendment dated 8/2/02, of Player Resources Ltd. ex99-16 Certificate of Amendment and Registration of Restated Articles dated 7/29/02, of Player Resources Ltd. ex99-17 Articles of Amendment dated 7/29/02, of Player Resources Ltd. ex99-18 Certificate of Incorporation of JN Acquisition Corp. dated October 26, 1999, of Seneca Player Corp. ex99-19 Certificate of Amendment of Certificate of Incorporation of Seneca Player Corp. dated December 19, 2001, of Seneca Player Corp. ex99-20 Certificate of Incorporation dated December 27, 2001, of 3062782 Nova Scotia Company ex99-21 Memorandum and Articles of Association of 306782 Nova Scotia Company dated December 27, 2001, of 3062782 Nova Scotia Company ex99-22 Certificate of Incorporation dated December 27, 2001, of 3062783 Nova Scotia Company ex99-23 Memorandum and Articles of Association of 3062783 Nova Scotia Company dated December 27, 2001, of 3062783 Nova Scotia Company ex99-24 Declaration of Limited Partnership, of Seneca New Brunswick Limited Partnership ex99-25 Limited Partnership Agreement dated December 31, 2001, between 3062783 Nova Scotia Company and 3062782 Nova Scotia Company, of Seneca New Brunswick Limited Partnership ex99-26 Articles of Association of One-Man Limited Liability Company dated August 25, 2001, of Horizon Energy Bulgaria Ltd. ex99-27 Tax Allocation Agreement pursuant to Rule 45(c) ex99-28 United Energy, a.s. Audited Financial Statements for the Calendar Year Ended December 31, 2001 ex99-29 Teplarna Liberec, a.s. Audited Financial Statements for the Calendar Year Ended December 31, 2001 ex99-30 Teplarna Kromeriz, a.s. Audited Financial Statements for the Calendar Year Ended December 31, 2001 ex99-31 Horizon Power, Inc. Audited Financial Statements for the Fiscal Year Ended September 30, 2002 ex99-32 Energy Systems North East, LLC Unaudited Financial Statements for the Fiscal Year Ended September 30, 2002