<PAGE>
<TABLE>
<CAPTION>
THREE MONTHS ENDED DECEMBER 31,
-------------------------------
1995 1994
----- -----
<S> <C> <C>
FINANCIAL RESULTS
Revenues.......................... $13.1 $18.2
Expenses *........................ 13.0 17.0
----- -----
Income before taxes............... .1 1.2
Income tax provision.............. .1 .5
----- -----
Net income (loss)................. $ -- $ .7
===== =====
</TABLE>
_____________
* Expenses include allocations of interest expense on general corporate debt of
$260,000 and $475,000 in the three-month periods ending December 31, 1995 and
1994, respectively. Interest expense was allocated to discontinued operations
based on a ratio of net assets to be sold to the sum of total net assets of the
Company plus general corporate debt.
NOTE 3. DISCONTINUED NATURAL GAS GATHERING, PROCESSING AND MARKETING OPERATIONS
During fiscal 1995, the Company determined to dispose of its natural
gas gathering, processing and marketing operations, which are conducted through
a wholly owned subsidiary of the Company, Cimarron Gas Holding Company (together
with its subsidiaries, "Cimarron"). Although a sales price for the Cimarron
operations has not been determined, the Company estimates that, based on a
nonbinding letter of intent that the Company has entered into with two
purchasers, the sales price for Cimarron should be at least equal to book value.
The Company expects to complete the sale of Cimarron in fiscal 1996.
The consolidated financial statements reflect the net assets and
operating results of Cimarron's operations as a discontinued operation. The
summarized financial position of Cimarron's discontinued operations is shown
below (amounts in millions):
<TABLE>
<CAPTION>
DECEMBER 31, SEPTEMBER 30,
1995 1995
------------ -------------
<S> <C> <C>
FINANCIAL POSITION
Current assets............... $10.9 $ 9.6
Other assets................. 6.8 6.7
Property and equipment, net.. 16.6 16.9
----- -----
34.3 33.2
----- -----
Debt......................... 1.6 2.2
Other liabilities............ 11.2 9.6
----- -----
12.8 11.8
----- -----
Net book value............... $21.5 $21.4
===== =====
</TABLE>
7
