<PAGE>
ZAPATA CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)
NOTE 4. DISCONTINUED NATURAL GAS COMPRESSION OPERATIONS--(CONTINUED)
The consolidated financial statements have been restated to report the net
assets and operating results of the Energy Industries operations as a
discontinued operation. Summarized results and financial position of the Energy
Industries discontinued operations are shown below (amounts in millions):
<TABLE>
<CAPTION>
YEARS ENDED
SEPTEMBER 30,
-------------
1995 1994
------ ------
<S> <C> <C>
FINANCIAL RESULTS
Revenues................................................. $ 66.6 $ 72.5
Expenses................................................. 63.2 67.7
------ ------
Income before taxes...................................... 3.4 4.8
Income tax provision..................................... 1.4 1.9
------ ------
Net income*.............................................. $ 2.0 $ 2.9
====== ======
<CAPTION>
SEPTEMBER 30,
-------------
1995 1994
------ ------
<S> <C> <C>
FINANCIAL POSITION
Current assets........................................... $ 32.1 $ 30.7
Investments and other assets............................. 20.3 19.4
Property and equipment, net.............................. 61.5 52.5
------ ------
113.9 102.6
------ ------
Debt..................................................... 27.8 15.2
Other liabilities........................................ 5.6 6.7
------ ------
33.4 21.9
------ ------
Net book value......................................... $ 80.5 $ 80.7
====== ======
</TABLE>
- --------
* Net income includes allocations of interest expense on general corporate
debt of $1.7 million in 1995, and $3.4 million in 1994. 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 5. DISCONTINUED NATURAL GAS GATHERING, PROCESSING AND MARKETING OPERATIONS
Acquisition
During the first quarter of fiscal 1993, Zapata acquired the common stock of
Cimarron Gas Holding Company ("Cimarron") for $3.8 million consisting of $2.5
million in cash and 437,333 shares of Common Stock. Zapata accounted for the
acquisition using the purchase method of accounting and recorded $2.0 million
of goodwill in connection therewith. The goodwill was being amortized over 20
years. The following assets and liabilities were acquired effective October 1,
1992 (in millions):
<TABLE>
<S> <C>
Current assets..................................................... $20.3
Property and equipment, net........................................ 2.0
-----
$22.3
=====
Current liabilities................................................ $19.6
Long-term debt..................................................... .7
-----
$20.3
=====
</TABLE>
36
