Harbinger Group Inc.
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SEC Filings

HRG GROUP, INC. filed this Form 10-Q on 02/14/1994
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Natural Gas Compression - In November 1993 Zapata purchased Energy Industries, a
participant in all segments of the natural gas compression industry.  Energy
Industries operates the fifth largest rental fleet of natural gas compressor
packages in the United States.  Its compressor fleet is located in Texas,
Louisiana, Arkansas, Oklahoma and New Mexico, as well as offshore in the Gulf of

     Energy Industries primarily supplies natural gas compressor packages in
natural gas production and processing applications.  In natural gas production
applications, natural gas compression is used to increase the flow rate of gas
wells with low reservoir pressures.  In natural gas processing applications,
natural gas compression is used in the process of separating the various
hydrocarbon components of the wellhead natural gas stream.  In interstate
natural gas pipeline applications, natural gas compression is used to increase
the pressure of natural gas from reservoir levels to interstate pipeline
standards.  Energy Industries maintains an inventory of compressor and engine
components to support the fabrication, service and repair of natural gas
compressor packages.

     The major segments of Energy Industries' natural gas compression revenues
and operating results for the two-month period ended December 31, 1993, in
thousands, are identified below.

<S>                                 <C>       <C>
                                    Revenues   Results
                                    --------  ---------
   Compressor Rental                 $2,914   $   976
   Fabrication and Sales              3,493       334
   Parts and Service                  4,166       777
   Other                              2,058        92
   Selling and Administrative           ---    (1,192)
                                     ------   -------
                                    $12,631   $   987
                                    =======   =======

     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 two-month period ended December 31, 1993 are shown below.
Utilization of the Company's rental units was below the reported industry
average of approximately 83%.

Average fleet utilization:
- ---------------------------
<S>                                                 <C>
     Number of units                                    76.2%
     Horsepower                                         76.8%
Average monthly rental rate, based on:
- --------------------------------------
     Number of units                                $  2,604
     Horsepower                                     $  16.83
Average fleet size:
- -------------------
     Number of units                                     684
     Horsepower                                      106,139


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