<PAGE>
 
     Year-to-date fiscal 1994 revenues of $9.3 million and an operating loss of
$18.1 million compared unfavorably to the 1993 revenues of $16.6 million and
operating income of $5.6 million as a result of the write-down and lower natural
gas production.

MARINE PROTEIN - Revenues of $19.7 million and operating income of $2.1 million
for the third quarter of fiscal 1994 compared favorably to the 1993 third
quarter revenues of $13.0 million and operating income of $415,000.  The
improved results were achieved by increased sales volumes that resulted from
higher levels of inventories which were carried over from the fiscal 1993
fishing season.  Compared to the year-earlier period, sales volume of fish meal
during the third quarter of 1994 was 43% higher while the average per ton price
of $346 was 5% lower.  Likewise, fish oil volumes increased significantly while
the average per ton price of $302 was slightly lower.

     As a result of increased sales volumes, year-to-date fiscal 1994 revenues
of $62.3 million and operating income of $6.0 million compared favorably to the
1993 revenues of $35.6 million and operating income of $1.4 million.

OTHER INCOME (EXPENSE)
- - ----------------------

     The current quarter includes a $2.8 million gain related to the settlement
of a coal note receivable that had previously been written off while the prior
year quarter includes a $6.4 million prepayment penalty that Zapata was required
to pay in connection with the refinancing of its senior indebtedness and a $6.0
million write-down of the Company's investment in Arethusa Off-Shore Ltd. to
approximate estimated market value.

RECENTLY ISSUED ACCOUNTING STANDARDS
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     In November 1992, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standards No. 112, "Employers' Accounting for Post-
employment Benefits," which will require the recognition of an obligation by
employers who provide benefits to former or inactive employees after employment
but before retirement.  Adoption of the new standard by the Company is required
no later than the fiscal year ending September 30, 1995.  Based on existing
conditions and a preliminary review, management believes adoption of the new
standard will not have a material impact on the Company's results of operations
or financial position as the Company currently provides post-employment benefits
on a very limited basis.

     In May 1993, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 115, "Accounting for Certain Investments in
Debt and Equity Securities" ("SFAS 115"), which addresses the accounting and
reporting for investments in equity securities that have readily determinable
fair values and for all investments in debt securities.  Adoption by Zapata is
required no later than the fiscal year ending September 30, 1995.  Zapata
currently owns approximately 673,000 shares of Tidewater common stock which has
a book value of approximately $7.9 million.  Upon adoption of SFAS 115, this
security would be reported at fair value and any unrealized gain or loss
recorded as a separate component of stockholders' equity (net of deferred income
taxes).  If Zapata had implemented the new standard at June 30, 1994, an
adjustment would have been made to increase other assets by $7.7 million, with a
corresponding decrease of $2.7 million to the deferred income tax asset and an
increase of $5.0 million to stockholders' investment for the unrealized
appreciation.

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