Could Natural Gas Reports Be More Informative?

Abstract

IN THE SPACE OF A FEW YEARS, the transportation and sale of natural gas have become one of the major industries of the country. Representing as it does a net capital investment of over $8.5 billion and marketing new securities at a yearly rate of nearly $700 million, the industry has rapidly become a favorite among investors and promises to play an increasingly important role in the newissue market. In the course of a survey of data issued by some 65 natural gas companies, I had the occasion to scan numerous annual reports and almost as many interim statements and offering prospectuses. Although impressed with the variety of information disclosed, I was left reluctantly with the conclusion that most companies still have some way to go before they reach the high-water mark of data presentation set by the comparable electric power industry. This statement does not apply to composite industry statistics, for whose fine work in a relatively new field the American Gas Association is to be commended. It applies to individual corporate reports.