<PAGE>
<TABLE>
<CAPTION>
Revenues Operating Income (Loss)
---------------------------------- -------------------------------------
Nine Months Twelve Months Ended Nine Months Twelve Months Ended
Ended September 30, Ended September 30,
June 30, ------------------- June 30, -------------------
1995 1994 1995 1995 1994 1995
------------- -------- -------- ----------- ------- ---------
<S> <C> <C> <C> <C> <C> <C>
Gathering and Processing.... $14,010 $ 22,867 $ 11,671 $ 357 $ 718 $ 427
NGL Marketing............... 43,819 133,274 174,620 63 703 1,345
Selling and Administrative.. (902) (2,484) (2,324)
------- -------- -------- ----- ------- -------
Total..................... $57,829 $156,141 $186,291 $(482) $(1,063) $ (552)
======= ======== ======== ===== ======= =======
</TABLE>
Gathering and Processing. Cimarron owns and operates approximately 487 miles
of natural gas gathering systems in West Texas and Oklahoma and a gas processing
plant in Sutton County, Texas. The systems gather approximately 50 million
cubic feet ("MMcf") of natural gas per day and the Sutton plant is capable of
processing 25 MMcf of natural gas per day following the expansion of the plant's
capacity in 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 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
4-inch to 10-inch gathering lines with capacity of about 25 MMcf per day. That
system is connected to 34 wells owned by third parties. The related
turboexpanded plant, with a throughput capacity of approximately 14 MMcf per
day, began operations in 1979.
A comparison of average daily volumes of gas, measured in thousandths of cubic
feet, gathered and processed during the nine months ended June 30, 1995 and
fiscal 1994 and 1993 is shown below.
<TABLE>
<CAPTION>
Nine Months Twelve Months
Ended Ended September 30,
June 30, -------------------
1995 1994 1993
---- -------- --------
<S> <C> <C> <C>
Gathering............ 53,500 45,500 14,382
Processing........... 26,600 22,200 10,063
</TABLE>
Marketing and Trading. 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 liquids for its own account, with volumes
of approximately 28,000 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 risks through unanticipated price changes. Other marketing services
are carried out on a contract basis, with little financial risk to the Company.
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