<PAGE>
 
                        ZAPATA CORPORATION        
                           BALANCE SHEET          
             LIABILITIES AND STOCKHOLDERS' INVESTMENT
             ----------------------------------------            
                         (in thousands)      
                                                                 

           
                                     June 30,       September 30,
                                      1994              1993     
                                   -----------      ------------
Current liabilities:                                    
    Current maturities of 
       long-term debt                 $2,997           $2,714  

    Accounts payable and accrued 
       liabilities                    40,111           36,550  

    Income taxes payable               1,600              783  
                                   ---------        ---------
      Total current liabilities       44,708           40,047  
                                   ---------        ---------
Long-term debt                        70,323          139,646  
                                   ---------        ---------
Deferred income taxes                    ---            3,686
                                   ---------        ---------
Other liabilities                     15,559           15,474  
                                   ---------        ---------
Stockholders' investment:                               
    Preferred and preference 
       stock                           2,258            4,503  

    Common stock                       7,920            7,235  

    Capital in excess of par 
       value                         152,037          121,847  

    Reinvested earnings from         
       October 1, 1990                21,293           12,679  
                                   ---------        ---------
                                     183,508          146,264  
                                   ---------        ---------
    Total liabilities and
       stockholders' investment     $314,098         $345,117 
                                   =========        =========

(The accompanying notes are an integral part of the financial
statements.)    
      



                                          

                                       4