Harbinger Group Inc.
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SEC Filings

10-Q
HRG GROUP, INC. filed this Form 10-Q on 08/14/1995
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<PAGE>
 

<TABLE> 
<CAPTION> 

                                      Three Months Ended   Nine Months Ended
                                           June 30,             June 30,
                                      ------------------   -----------------
                                        1995      1994       1995      1994
                                      --------  --------   --------  -------
<S>                                   <C>       <C>        <C>       <C> 
Revenues
Gathering & Processing                $ 4,420    $ 7,255    $14,010  $ 18,458
NGL Marketing                           8,089     34,702     43,819   101,998
                                      -------    -------    -------  --------
                                      $12,509    $41,957    $57,829  $120,456
                                      =======    =======    =======  ========
Operating Results
Gathering & Processing                $   203    $  (164)   $   357  $    148
NGL Marketing                              35        147         63       696
Selling & Administrative                 (277)      (456)      (902)   (1,540)
                                      -------    -------    -------  --------
                                      $   (39)   $  (473)   $  (482) $   (696)
                                      =======    =======    =======  ========
</TABLE>
 

     For the third quarter of fiscal 1995, gathering and processing revenues 
were lower than the prior year as a result of the negative impact of 
lower natural gas prices, while operating results improved, reflecting increased
processing margins. However, marketing revenues and operating income have
declined in fiscal 1995 as compared to 1994, due to the Company's decision to
reduce its natural gas trading activities.

     A comparison of average daily volumes of gas, measured in millions of cubic
feet, gathered and processed during the three-month and nine-month periods ended
June 30, 1995 and 1994 is shown below.


<TABLE> 
<CAPTION> 

                                      Three Months Ended   Nine Months Ended
                                           June 30,             June 30,
                                      ------------------   -----------------
Average Daily Volumes                   1995      1994       1995      1994
---------------------                 --------  --------   --------  -------
(MMCF)
<S>                                   <C>       <C>        <C>       <C> 
Gathering                                57.0      47.7       53.5     44.9
Processing                               26.5      25.0       26.6     21.9
</TABLE>
 

     In April 1995, Zapata announced that the Company was considering the sale 
of its natural gas gathering and processing operation. Due to the preliminary 
nature of the decision process regarding the possible sale of the natural gas 
gathering and processing operation, the financial statement impact of the 
ultimate disposition of this business cannot be determined at this time.

OIL AND GAS--Revenues of $2.5 million and operating income of $310,000 for the 
third quarter of fiscal 1995 compared favorably to the corresponding fiscal 1994
period's revenues of $3.0 million and operating loss of $18.7 million. The 
fiscal 1994 period loss included an $18.8 million property valuation provision. 
Although the Company's U.S. natural gas prices improved during the third quarter
of fiscal 1995, current quarter prices were lower than the prior-year quarter 
prices. Zapata's domestic natural gas production for the third quarter of fiscal
1995 approximated the level of production in the corresponding fiscal 1994 
period. The Company's Bolivian operations contributed $399,000 to operating 
income in the third quarter of fiscal 1995 as compared to $483,000 in the third 
quarter of fiscal 1994.

                                      14



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