<PAGE>
UNAUDITED PRO FORMA CONDENSED BALANCE SHEET
AS OF JUNE 30, 1995
(IN THOUSANDS, EXCEPT FOR PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
PRO FORMA PRO FORMA
ADJUSTMENTS ADJUSTMENTS
----------- -----------
DOMESTIC ENERGY
OIL & GAS ADJUSTED INDUSTRIES AS
HISTORICAL SALE(1) HISTORICAL SALE(2) ADJUSTED(3)
---------- ----------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Current assets
Cash................... $ 4,158 $ 3,365 $ 7,523 $131,460 $ 94,981
(2,202)
(26,800)
(14,000)
(1,000)
Receivables............ 31,228 (633) 30,595 (10,197) 20,398
Inventories............ 54,131 54,131 (24,174) 29,957
Other current assets... 4,269 4,269 4,269
--------- -------- -------- -------- --------
Total current assets. 93,786 2,732 96,518 53,087 149,605
--------- -------- -------- -------- --------
Investments and other
assets................. 51,902 8,834 60,736 (7,771) 46,949
(20,016)
14,000
--------- -------- -------- -------- --------
Property and equipment.. 232,870 (74,536) 158,334 (67,307) 91,027
Accumulated
depreciation........... (108,972) 63,377 (45,595) 7,810 (37,785)
--------- -------- -------- -------- --------
123,898 (11,159) 112,739 (59,497) 53,242
--------- -------- -------- -------- --------
Total assets......... $ 269,586 $ 407 $269,993 $(20,197) $249,796
========= ======== ======== ======== ========
Current liabilities
Current maturities of
long-term debt........ $ 8,866 $ 8,866 $ (429) $ 8,437
Other current
liabilities........... 36,256 407 36,663 (6,638) 30,025
--------- -------- -------- -------- --------
Total current
liabilities........... 45,122 407 45,529 (7,067) 38,462
--------- -------- -------- -------- --------
Long-term debt.......... 61,948 61,948 (27,563) 34,385
--------- -------- -------- --------
Other liabilities....... 19,365 19,365 19,365
--------- -------- --------
Stockholders' equity:
Preferred stock........ 3 3 3
Common stock........... 7,376 7,376 7,376
Capital in excess of
par value............. 129,344 129,344 129,344
Reinvested earnings.... 7,168 7,168 14,433 21,601
Investment unrealized
loss, net of tax...... (740) (740) (740)
--------- -------- -------- -------- --------
143,151 0 143,151 14,433 157,584
--------- -------- -------- -------- --------
Total liabilities and
stockholders' equity.. $ 269,586 $ 407 $269,993 $(20,197) $249,796
========= ======== ======== ======== ========
Book value per share.... $ 4.84 $ -- $ 4.84 $ 0.49 $ 5.33
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The following notes set forth the explanations and assumptions used in
preparing the unaudited pro forma condensed balance sheet as of June 30, 1995
(amounts in thousands).
(1) In August 1995, the Company completed the sale of its remaining U.S.
offshore oil and gas properties. The Company received cash of $3,365, a
production payment entitling the Company to a share of future revenues
derived from the properties and other contract consideration. No gain or
loss was recognized from the sale.
(2) To record the sale of Energy Industries, which resulted in net proceeds to
the Company of $89,660, comprised of gross proceeds of $131,460 (purchase
price of $130,000 plus a net asset value adjustment as of June 30, 1995 of
$1,460) less: $26,800 repayment of debt, $14,000 in estimated federal and
state income taxes and $1,000 in estimated commissions and fees. As of June
30, 1995, the after-tax book gain was estimated to have been $14,433. The
after-tax book gain of $14,433 was based on sales proceeds of $131,460
less: $108,256 for the book value of the assets sold and write-off of the
remaining unamortized
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