Harbinger Group Inc.
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SEC Filings

HRG GROUP, INC. filed this Form POS AM on 02/22/1994
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processing 17 MMcf of natural gas per day.  A project to expand the Sutton
Plant's capacity to 25 MMcf of natural gas per day is expected to be completed
in March 1994.     
     Cimarron's other gathering and processing activities consist of ownership
interests in two natural gas gathering systems, one in Smith County, Texas, and
one in Texas and Beaver Counties, Oklahoma, and ownership interests in related
gas processing plants.  The gathering system in Smith County includes
approximately eight miles of eight-inch gathering lines with capacity of about
30 MMcf per day.  Five wells owned by others are currently connected to the
system.  The related skid-mounted cryogenic gas processing plant, which began
operations in August 1992, has a throughput capacity of approximately 23 MMcf
per day.  The gathering system in Oklahoma includes approximately 170 miles of
four- to ten-inch gathering lines with capacity of about 25 MMcf per day.  That
system is connected to 54 wells owned by third parties.  The related turbo
expander plant, with a throughput capacity of approximately 14 MMcf per day,
began operations in 1979.     
     In June 1993, Cimarron began acquisition of right-of-ways and planning for
the construction of a 27.5 mile low-pressure gas gathering system in northern
Caddo and southern Blaine Counties, Oklahoma.  This natural gas gathering system
was completed in December 1993 and transports gas volumes of approximately 8.5
MMcf of natural gas per day.  Construction costs were approximately $2.6
     Marketing.  Cimarron provides marketing services to natural gas liquids
processing plant owners and operators.  The services include transportation,
fractionation, distribution, accounting, price forecasting and sales of natural
gas liquids for the account of such owners and operators.  Cimarron also
actively markets natural gas liquids for its own account, with volumes of
approximately 27,000 barrels per day of natural gas liquids in the Midwest and
Gulf Coast markets.     
     Successful results from Cimarron's marketing activities are dependent upon
the ability of Cimarron's marketers to perform an intermediary service for
sellers and buyers of natural gas liquids without exposing the Company to undue
financial risk through unanticipated price changes.  Other marketing services
are carried out on a contract basis, with little financial risk to the 
     In addition, Cimarron maintains a fleet of approximately 131 leased and
three owned railcars which transport feedstocks (butane, isobutane, gasoline,
MTBE and various aromatic mixtures) to refineries and petrochemical plants, and
Cimarron supplies wholesale propane in truckload quantities to propane retailers
and wholesalers.     
     Competition.  Cimarron's Smith County gathering system and processing
plant, which are operated by Cimarron's joint venture partner, face competition
for new well additions and additional gas processing from one nearby competing
system.  However, the Company believes that Cimarron's processing plant has
superior liquid extraction capabilities.  The gathering system and processing
plant in Oklahoma, which are operated by Cimarron, face competition for new well
additions and additional gas processing from several nearby competing systems.
However, the Company believes that Cimarron's processing plant has a competitive
advantage resulting from its better location.     
     Cimarron's marketing activities face significant competition.  Cimarron's
competitors in its marketing efforts include other oil and gas production
companies, major interstate pipelines and their marketing affiliates, and
national and local gas gatherers, brokers, marketers and distributors of varying
sizes, financial resources and experience. Certain competitors, such as major
oil and gas production companies, have financial and other resources
substantially in excess of those available to Cimarron.  Cimarron's marketing
activities are also affected by the actions of governmental regulatory
authorities such as the Federal Energy Regulatory Commission ("FERC").  Cimarron
itself is not, however, directly subject to regulation by the FERC.  It is
impossible to predict how future regulatory actions will impact Cimarron's
marketing activities.     
     The Company's principal oil and gas exploration and production activity is
the production of natural gas.  The Company conducts oil and gas operations in
the United States and in Bolivia.  Since commencing oil and gas exploration and
production operations in 1972, the Company from time to time has actively
explored for oil and gas in various areas     


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