<PAGE>
 
                       ZAPATA CORPORATION
                    STATEMENT OF CASH FLOWS                     
                   NINE MONTHS ENDED JUNE 30
                 -----------------------------
                        (in thousands)                           

<TABLE> 
<CAPTION> 
                                               1994       1993 
                                             --------   --------
<S>                                          <C>        <C> 
Operating activities:                                 
  Net income                                  $10,026     $9,986
                                             --------   --------
  Adjustments to reconcile net income to net       
    cash used in operating activities:        
      Depreciation, depletion, amortization
        and valuation provision                30,779     16,165
      Gain on sale of Tidewater common stock  (37,457)   (32,928)
      Changes in assets and liabilities:            
        Receivables                            (4,012)     6,086
        Inventories                            (3,311)    (4,253)
        Accounts payable and accrued 
           liabilities                         (2,278)    (4,108)
        Other assets and liabilities            3,319     (2,718)
                                             --------   --------
            Total adjustments                 (12,960)   (21,756)
                                             --------   --------
            Net cash used in
               operating activities            (2,934)   (11,770)
                                             --------   -------- 
Investing activities:                                 
  Proceeds from dispositions                   88,533     74,332
  Restricted cash investments                  75,083    (75,735)
  Proceeds from notes receivable                1,061        952
  Business acquisitions                       (73,222)    (2,491)
  Capital expenditures                        (20,049)    (1,685)
                                             --------   --------
             Net cash provided from
               (used in) investing 
               activities                      71,406     (4,627)
                                             --------   --------
Financing activities:                                 
  Interest obligations deferred                 1,297        523
  Borrowings                                      170     82,625
  Proceeds from issuance of preference and
    common stock                                  ---     28,750
  Principal payments of long-term 
    obligations                               (70,827)  (106,800)
  Preferred stock redemption                   (2,245)       ---
  Dividend payments                              (404)       ---
                                             --------   --------
             Net cash provided from 
                (used in) financing 
                activities                    (72,009)     5,098
                                             --------   --------
Net decrease in cash and cash equivalents      (3,537)   (11,299)
Cash and cash equivalents at beginning of
   period                                      15,273     35,544
                                             --------   --------
Cash and cash equivalents at end of period    $11,736    $24,245
                                             ========   ========

</TABLE>

 

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

                                       7