-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, NA+ptB60zWmtuZAOXkuxYGjk7ROTUuswRs05Zv+s9xQp1zsW7SoBCnYAt2QNaLiv Hb6KkuESsgmBZm0Iz9c4Fw== 0000075491-97-000015.txt : 19970714 0000075491-97-000015.hdr.sgml : 19970714 ACCESSION NUMBER: 0000075491-97-000015 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19970630 ITEM INFORMATION: Changes in control of registrant FILED AS OF DATE: 19970711 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: PACIFIC GAS TRANSMISSION CO CENTRAL INDEX KEY: 0000075491 STANDARD INDUSTRIAL CLASSIFICATION: NATURAL GAS TRANSMISSION [4922] IRS NUMBER: 941512922 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-25842 FILM NUMBER: 97639731 BUSINESS ADDRESS: STREET 1: 2100 SW RIVER PKWY CITY: PORTLAND STATE: OR ZIP: 97201 BUSINESS PHONE: 5038334000 MAIL ADDRESS: STREET 1: 2100 SW RIVER PARKWAY CITY: PORTLAND STATE: OR ZIP: 97201 8-K 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 Form 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of Earliest Event Reported): June 30, 1997 COMMISSION FILE NO. 0-25842 Pacific Gas Transmission Company (Exact name of registrant as specified in its charter) California 94-1512922 (State or other jurisdiction of (I.R.S. employer Identification incorporation or organization) No.) 2100 SW River Parkway, Portland, 97201 OR (Zip code) (Address of principal executive offices) Registrant's telephone number, including area code: (503) 833-4000 Item 2. Disposition of Assets On June 30, 1997, Pacific Gas Transmission Company ("PGT") distributed all of the shares of PG&E Energy Trading Corporation ("Energy Trading") to PGT's sole shareholder PG&E Gas Transmission Corporation. The value of this distribution as reflected on PGT's financial statements as of June 30, 1997 was $49.3 million. PG&E Gas Transmission Corporation, in turn immediately thereafter, distributed these shares to its sole shareholder PG&E Corporation. During 1996, PGT acquired the gas marketing operations of Edisto Resources Corporation in the United States and Canada, known jointly as "Energy Source, Inc." which was subsequently renamed PG&E Energy Trading Corporation. Energy Trading is engaged in the purchase and resale of natural gas to a diversified customer base, primarily consisting of industrial and commercial companies, local distribution companies, and industry partners. The transfer of Energy Trading is in connection with PG&E Corporation's decision to reorganize certain aspects of its corporate structure and business lines. Item 7. Pro Forma Financial Information 1. Pro Forma Condensed Consolidated Income Statements for the Year Ended December 31, 1996 (Unaudited) (Page 3) 2. Pro Forma Condensed Consolidated Balance Sheets as of March 31, 1997 (Unaudited) (Page 4) 3. Pro Forma Condensed Consolidated Income Statements for the Three Months Ended March 31, 1997 (Unaudited) (Page 5) 4. Notes to Pro Forma Condensed Consolidated Financial Statements (Unaudited) (Page 6) SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. PACIFIC GAS TRANSMISSION COMPANY ------------------------------------ (Registrant) July 11, 1997 By: /s/ STANLEY C. KARCZEWSKI ----------------------------------- Name: Stanley C. Karczewski Title: Vice President of Finance and Controller and Chief Financial Officer PACIFIC GAS TRANSMISSION COMPANY PRO FORMA CONDENSED CONSOLIDATED INCOME STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 1996 - ------------------------------------------------------------------------------
Historical Disposition Consolidated of PG&E Pro Forma Pro Forma Pacific Gas Energy Adjustments Pacific Gas Transmission Trading due to the Transmission Company Corporation Disposition Company (In Thousands) Audited Unaudited Unaudited Unaudited OPERATING REVENUES: Gas marketing $ 281,292 $ 281,292 $ - $ - Gas transportation 194,881 - - 194,881 Gas transportation for PG&E 37,726 - - 37,726 Gas supply restructuring 32,120 - - 32,120 cost recovery Other 766 - - 766 - ------------------------------------------------------------------------------ Total operating 546,785 281,292 - 265,493 revenues - ------------------------------------------------------------------------------ OPERATING EXPENSES: Gas marketing cost of sales 280,483 280,483 - - Gas supply restructuring costs 32,120 - - 32,120 Operations and maintenance 63,688 901 - 62,787 Depreciation and amortization 39,077 174 - 38,903 Property and other taxes 8,867 - - 8,867 - ------------------------------------------------------------------------------- Total operating expenses 424,235 281,558 - 142,677 - ------------------------------------------------------------------------------- OPERATING INCOME (LOSS) 122,550 (266) - 122,816 OTHER INCOME AND (INCOME (4,854) 57 (b) 35 (4,876) DEDUCTIONS) INTEREST EXPENSE 45,662 35 - 45,627 - ------------------------------------------------------------------------------ INCOME (LOSS) BEFORE 72,034 (244) 35 72,313 INCOME TAX EXPENSE INCOME TAX EXPENSE 28,889 75 14 28,828 - ------------------------------------------------------------------------------- NET INCOME $ 43,145 $ (319) $ 21 $ 43,485 ==============================================================================
The accompanying Notes to Pro Forma Condensed Consolidated Financial Statements are an integral part of these statements. PACIFIC GAS TRANSMISSION COMPANY PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEETS AS OF MARCH 31, 1997 (UNAUDITED) - ------------------------------------------------------------------------------
Historical Disposition Consolidated of PG&E Pro Forma Pro Forma Pacific Gas Energy Adjustments Pacific Gas Transmission Trading Due to the Transmission (In Thousands) Company Corporation Disposition Company - ---------------------------------------------------------------------------- ASSETS - ----------------------------------------------------------------------------- PROPERTY PLANT & EQUIPMENT: Property, plant and equipment $ 1,614,015 $ 3,860 $ - $ 1,610,155 Accumulated depreciation (429,050) (2,243) - (426,807) - ------------------------------------------------------------------------------ Total property, plant & equipment - net 1,184,965 1,617 - 1,183,348 - ------------------------------------------------------------------------------ CURRENT ASSETS: Cash and cash equivalents 26,652 12,149 - 14,503 Assets from risk management 23,703 23,703 - - activities Accounts receivable from gas 342,167 342,167 - - marketing Accounts receivable - gas 19,929 - - 19,929 transportation Allowance for uncollectible (1,524) (1,524) - - accounts Other current assets 23,971 3,869 (a)10,244 30,346 - ------------------------------------------------------------------------------ Total current assets 434,898 380,364 10,244 64,778 - ------------------------------------------------------------------------------ DEFERRED CHARGES: Goodwill, net of amortization 27,403 27,403 - - Other deferred charges 64,845 566 - 64,279 - ------------------------------------------------------------------------------ Total deferred charges 92,248 27,969 - 64,279 - ------------------------------------------------------------------------------ TOTAL ASSETS $ 1,712,111 $ 409,950 $ 10,244 $ 1,312,405 ============================================================================== Capitalization and Liabilities - ------------------------------------------------------------------------------ CAPITALIZATION: Common stock equity $ 519,815 $ 56,257 $ - $ 463,558 Long-term debt 649,671 - - 649,671 - ------------------------------------------------------------------------------ Total capitalization 1,169,486 56,257 - 1,113,229 - ------------------------------------------------------------------------------ CURRENT LIABILITIES: Accounts payable from gas 336,684 336,684 - - marketing Other current liabilities 49,798 17,009 (a)10,244 43,033 - ------------------------------------------------------------------------------ Total current liabilities 386,482 353,693 10,244 43,033 - ------------------------------------------------------------------------------ DEFERRED CREDITS: Deferred income taxes 137,639 - - 137,639 Other 18,504 - - 18,504 - ------------------------------------------------------------------------------ Total deferred credits 156,143 - - 156,143 - ------------------------------------------------------------------------------ TOTAL CAPITALIZATION AND $ 1,712,111 $ 409,950 $ 10,244 $ 1,312,405 LIABILITIES ==============================================================================
The accompanying Notes to Pro Forma Condensed Consolidated Financial Statements are an integral part of these statements. Pacific Gas Transmission Company Pro Forma Condensed Consolidated Income Statements For the Three Months Ended March 31, 1997 (Unaudited) - -------------------------------------------------------------------------------
Historical Disposition Consolidated of PG&E Pro Forma Pro Forma Pacific Gas Energy Adjustments Pacific Gas Transmission Trading due to the Transmission Company Corporation Disposition Company - ------------------------------------------------------------------------------- (In Thousands) OPERATING REVENUES: Gas marketing $ 922,479 $ 922,479 $ - $ - Gas transportation 48,666 - - 48,666 Gas transportation for PG&E 12,687 - - 12,687 - ------------------------------------------------------------------------------- Total operating revenues 983,832 922,479 - 61,353 - ------------------------------------------------------------------------------- OPERATING EXPENSES: Gas marketing cost of sales 920,203 920,203 - - Operations and maintenance 20,001 2,657 - 17,344 Depreciation and amortization 10,930 600 - 10,330 Property and other taxes 3,068 - - 3,068 - ------------------------------------------------------------------------------- Total operating expenses 954,202 923,460 - 30,742 - ------------------------------------------------------------------------------- OPERATING INCOME (LOSS) 29,630 (981) - 30,611 OTHER INCOME AND (INCOME (247) 713 (b) 139 (821) DEDUCTIONS) INTEREST EXPENSE 12,255 274 - 11,981 - ------------------------------------------------------------------------------- INCOME (LOSS) BEFORE INCOME 17,128 (542) 139 17,809 TAX EXPENSE INCOME TAX EXPENSE 8,157 37 (c) 54 8,174 - -------------------------------------------------------------------------------- NET INCOME (LOSS) $ 8,971 $ (579) $ 85 $ 9,635 ===============================================================================
The accompanying Notes to Pro Forma Condensed Consolidated Financial Statements are an integral part of these statements. Notes to Pro Forma Condensed Consolidated Financial Statements (Unaudited) Note 1: Basis of Presentation The accompanying unaudited pro forma condensed consolidated balance sheet reflects the financial position of Pacific Gas Transmission Company ("PGT" or the "Company") after giving effect to the disposition of PG&E Energy Trading Corporation ("Energy Trading") on June 30, 1997 and the related results as if it were consummated at March 31, 1997. The unaudited pro forma condensed consolidated income statements reflect the disposition of Energy Trading as if it had occurred as of the beginning of the periods presented. The unaudited pro forma condensed consolidated financial information has been prepared by the Company based upon assumptions deemed proper by the Company. This information is presented for illustrative purposes only and is not necessarily indicative of the future financial position or future results of operations of the Company, or of the financial position or results of operations of the Company that would have actually occurred had the transaction been in effect as of the date or for the periods presented. In addition, it should be noted that the Company's financial statements will reflect the disposition only from June 30, 1997, the date of the disposition. The unaudited pro forma condensed consolidated financial information should be read in conjunction with the historical financial statements and related notes of the Company. Pacific Gas Transmission Company - Represents the condensed consolidated balance sheet of the Company as of March 31, 1997 and the condensed consolidated income statements of the Company for (a) the year ended December 31, 1996 and (b) for the three months ended March 31, 1997, condensed from the related statements as they appear in the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 1997 and the Company's 1996 Annual Report on Form 10-K. PG&E Energy Trading Corporation - Represents the condensed consolidated balance sheet of the Energy Trading (formerly Energy Source, Inc.) as of March 31, 1997 and the condensed consolidated income statements of Energy Trading for (a) the year ended December 31, 1996 and (b) for the three months ended March 31, 1997, condensed from Energy Trading's financial statements as they were included in the Company's consolidated financial statements in its Quarterly Report on Form 10-Q for the quarter ended March 31, 1997 and its 1996 Annual Report on Form 10-K. The Company's results for 1996 include Energy Trading's operations for the one month ended December 31, 1996, subsequent to the acquisition of Energy Source, Inc. effective November 30, 1996. Note 2: Pro Forma Adjustments Balance Sheet (a) Note and related interest receivable for note between PGT and Energy Trading previously eliminated during consolidation. Income Statement (b) Interest income related to the note between PGT and Energy Trading previously eliminated during consolidation. (c) Income taxes related to the interest income from the note between PGT and Energy Trading previously eliminated during consolidation. -----END PRIVACY-ENHANCED MESSAGE-----