<PAGE>
 
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.
 
  Year-to-date, fiscal 1995 revenues of $7.5 million and operating income of
$528,000 compared favorably to the fiscal 1994 revenues of $9.3 million and
operating loss of $18.1 million due primarily to the 1994 property write-down.
Bolivian operations contributed operating income of $1.2 million in fiscal
1995 and $2.4 million in fiscal 1994.
 
  Natural Gas Compression--In April 1995, Zapata announced that the Company
was considering the sale of its natural gas compression operations. In June
1995, Zapata announced that it had entered into an agreement to sell the
assets of its natural gas compression division for $130 million to Enterra
Corporation. The sale is subject to stockholder approval and certain
governmental approvals.
 
  The major segments of Energy Industries' natural gas compression revenues
and operating results for the three-month and nine-month periods ended June
30, 1995 and the three-month and eight-month periods ended June 30, 1994, in
thousands, are identified below.
 

<TABLE>
<CAPTION>
                                                        NINE MONTHS EIGHT MONTHS
                                  THREE MONTHS ENDED       ENDED       ENDED
                                       JUNE 30,          JUNE 30,     JUNE 30,
                                  --------------------  ----------- ------------
                                    1995       1994        1995         1994
                                  ---------  ---------  ----------- ------------
<S>                               <C>        <C>        <C>         <C>
REVENUES
Compressor Rental................ $   4,403  $   5,163    $12,978     $12,066
Fabrication and Sales............     8,989      9,272     21,879      17,150
Parts & Service..................     4,731      5,187     14,919      14,123
Other............................     1,206      2,188      3,310       6,535
                                  ---------  ---------    -------     -------
                                  $  19,329  $  21,810    $53,086     $49,874
                                  =========  =========    =======     =======
OPERATING RESULTS
Compressor Rental................ $   1,175  $   1,336    $ 3,592     $ 3,686
Fabrication and Sales............       875      1,206      2,421       1,762
Parts & Service..................       850      1,152      2,818       2,760
Other............................       198        383        348         908
Selling & Administrative.........    (1,394)    (1,617)    (4,378)     (4,274)
                                  ---------  ---------    -------     -------
                                  $   1,704  $   2,460    $ 4,801     $ 4,842
                                  =========  =========    =======     =======
</TABLE>

 
  (The Other segment includes the results of the heat exchanger manufacturing
operation which was sold during the second quarter of fiscal 1995 and used
equipment sales.)
 
  Natural gas compressor package rental utilization is affected primarily by
the number and age of producing oil and gas wells, the volume of natural gas
consumed and natural gas prices. Rental rates are determined primarily by the
demand for compressor packages and vary by size and horsepower of a compressor
package. Energy Industries' utilization, rental rates and fleet size as of
June 30, 1995 and 1994 are compared in the following table.
 
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