<PAGE>
Natural gas compressor package rental utilization is affected by the
number and age of producing oil and gas wells, the volume of natural gas
consumed and natural gas prices. Average rental rates are determined by the
demand for compressor packages and vary by size and horsepower of a compressor
package. Energy Industries' average utilization, rental rates and fleet size
during the last two quarters are in the following table. Utilization of the
Company's rental units remained below the reported industry average, however,
efforts undertaken to address this issue have resulted in an increase in the
Company's utilization rate.
<TABLE>
<CAPTION>
June 30, 1994 March 31, 1994
-------------- ---------------
<S> <C> <C>
Average fleet utilization:
Horsepower 77.8% 76.2%
Average monthly rental rate, based on:
Horsepower $ 17.43 $ 17.26
Average fleet size:
Number of units 701 662
Horsepower 107,494 104,524
</TABLE>
In addition to operating a fleet of natural gas compressor packages
for rental purposes, Energy Industries designs, fabricates and sells natural gas
compressor packages to customer specifications. Energy Industries sells
compressor packages to natural gas producers, gatherers and transmission
companies which expect the long life of their associated reserves or pipeline to
justify the capital cost of acquiring, rather than renting, a natural gas
compressor package. Most of Energy Industries' natural gas compressor package
sales are for larger, high horsepower packages. Fabrication backlog for the
division remains at a high level.
NATURAL GAS GATHERING, PROCESSING AND MARKETING - Zapata's natural gas
gathering, processing and marketing operations are conducted through Cimarron
Gas Holding Company and its subsidiaries. Cimarron was acquired early in fiscal
1993 to serve as the vehicle for the Company's expansion into the natural gas
services market. As a division of Zapata, Cimarron's operations involve two
major categories of business activities: the gathering and processing of natural
gas and its constituent products and the marketing and trading of natural gas
liquids (NGL's).
Revenues and operating results for the third quarter of fiscal 1994
and 1993 are presented in the following table by major category, in thousands.
For the third quarter of fiscal 1994, marketing revenues declined primarily due
to the Company's decision to reduce its natural gas trading activities while
gathering and processing revenues increased as a result of the expansion of the
division's gathering and processing operations during 1993. The gathering and
processing operation however, incurred an operating loss for the third quarter
as depressed prices for natural gas liquids resulted in reduced processing
margins. Subsequent to the end of the quarter, liquids prices and processing
margins improved.
<TABLE>
<CAPTION>
Revenues Operating Results
---------------- -------------------
1994 1993 1994 1993
------- ------- -------- ---------
<S> <C> <C> <C> <C>
Gathering & Processing $ 7,255 $ 2,500 $(164) $ 147
NGL Marketing 34,702 38,472 147 191
Selling & Administrative --- --- (456) (678)
------- ------- ----- -----
$41,957 $40,972 $(473) $(340)
======= ======= ===== =====
</TABLE>
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