<PAGE>

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                             ----------------------

                                   FORM 10-QSB
    (Mark One)

          [ X ]   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                  SECURITIES EXCHANGE ACT OF 1934

                  For the quarterly period ended June 30, 1999

                                       OR

          [   ]   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                  SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to ____________

                        Commission file number: 333-59109

                                ABLE ENERGY, INC.
             (Exact name of registrant as specified in its charter)

          DELAWARE                                              22-3520840
(State or other jurisdiction of                              (I.R.S. employer
incorporation or organization)                              identification No.)

            344 ROUTE 46
            ROCKAWAY, NJ                                          07866
(Address of principal executive offices)                        (Zip code)

Registrant's telephone number, including area code: (973) 625-1012

                                 NOT APPLICABLE
             (Former name, former address and former fiscal year, if
                           changed since last report)

         Indicate by check whether registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that registrant was required
to file such reports), and (2) has been subject to such filing requirements for
the past 90 days. Yes [ ] No [X]

         As of August 9, 1999, 2,000,000 shares, $.001 par value per share, of
Able Energy, Inc. were issued and outstanding.

                             ----------------------
<PAGE>

PART I - FINANCIAL INFORMATION

ITEM 1 - FINANCIAL STATEMENTS (UNAUDITED)

                                TABLE OF CONTENTS

                                                                         PAGE
                                                                         ----

         Consolidated Balance Sheets as of December 31, 1998 and
            June 30, 1999                                                3 - 4

         Consolidated Statements of Income for the three and six
            months ended June 30, 1999 and June 30, 1998                   5

         Consolidated Statement of Stockholders' Equity six months
            ended June 30, 1999                                            6

         Consolidated Statements of Cash Flows for the six months
            ended June 30, 1999 and 1998                                   7

         Notes to Unaudited Financial Statements                         8 - 13
<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES

                           CONSOLIDATED BALANCE SHEET

                                     ASSETS

<TABLE>
<CAPTION>
                                                               JUNE 30,   DECEMBER 31,
                                                                 1999        1998
                                                              (UNAUDITED)   AUDITED
                                                              ----------   ----------
<S>                                                           <C>          <C>
CURRENT ASSETS:
    Cash                                                      $6,107,665   $  125,844
    Accounts Receivable (Less Allowance for Doubtful
       Accounts of ($69,235) at 12/31/98 and 6/30/99             652,902      658,139
    Inventory                                                    143,581      129,483
    Notes Receivable - Current Portion                            30,168       36,651
    Miscellaneous Receivable                                      33,565       13,074
    Prepaid Expense                                               66,784       51,709
    Prepaid Expense - Income Taxes                                  --         96,003
    Deferred income Tax                                           20,970       24,460
    Due From Officer                                              39,515       34,173
                                                              ----------   ----------
        TOTAL CURRENT ASSETS                                   7,095,150    1,169,536
                                                              ----------   ----------

PROPERTY AND EQUIPMENT:
    Land                                                          90,800       90,800
    Building                                                     150,000      150,000
    Trucks                                                     1,673 447    1,300,046
    Fuel Tanks                                                   633,542      487,677
    Machinery and Equipment                                      224,292      275,938
    Leasehold Improvements                                       124,986      160,429
    Cylinders                                                    151,270      204,477
    Office Furniture and Equipment                                10,514        9,313
                                                              ----------   ----------
                                                               3,058,851    2,678,680
    Less: Accumulated depreciation                             1,037,368      859,316
                                                              ----------   ----------
        NET PROPERTY AND EQUIPMENT                             2,021,483    1,819,364
                                                              ----------   ----------

OTHER ASSETS:
    Deposits                                                       1,796       14,371
    Notes Receivable - Less Current Portion                      138,227      146,885
    Customer List, Less Amortization of 1998 ($85,650), and
      1999 ( 104,683)                                            466,317      485,350
    Covenant Not to Compete, Less Amortization of 1998
     ($81,743) and 1999 (97,903)                                  85,664      104,020
                                                              ----------   ----------
         TOTAL OTHER ASSETS                                      692,004      750,626
                                                              ----------   ----------

        TOTAL ASSETS                                          $9,808,637   $3,739,526
                                                              ==========   ==========
</TABLE>

                             See Accompanying Notes


                                        3
<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES

                       CONSOLIDATED BALANCE SHEET (CONT'D)


                       LIABILITIES & STOCKHOLDERS' EQUITY

<TABLE>
<CAPTION>
                                                         JUNE 30,   DECEMBER 31,
                                                           1999        1998
                                                        (UNAUDITED)  (AUDITED)
                                                        ----------   ----------
<S>                                                     <C>          <C>
CURRENT LIABILITIES:
    Accounts Payable                                    $  590,461   $  689,246
    Note Payable - Bank                                    280,453      100,434
    Current Portion of Long-Term Debt                      692,104      651,817
    Covenant Not To Compete                                 36,714       36,714
    Accrued Expenses                                       144,605       62,244
    Taxes Payable                                           24,635       15,298
    Customer Advance Payments                               66,473      355,983
    Income Taxes Payable - Current                         164,737         --
    Income Taxes Payable - Prior                            23,960       33,962
    Current Portion of Deferred Income                      14,548       14,548
    Escrow Deposits                                         15,000       15,088
                                                        ----------   ----------
        TOTAL CURRENT LIABILITIES                        2,053,690    1,975,334

DEFERRED INCOME: less current portion                       53,341       58,191
DEFERRED INCOME TAXES                                       58,381       50,601
COVENANT NOT TO COMPETE: less current portion               48,951       67,308
LONG TERM DEBT: less current portion                       992,142    1,043,209
                                                        ----------   ----------
        TOTAL LIABILITIES                                3,206,505    3,194,643
                                                        ----------   ----------

STOCKHOLDERS' EQUITY:
    Common Stock
    Authorized 10,000,000 Shares, Par Value $.001 per
       share Issued and Outstanding 2,000,000 shares         2,000            1
    Paid in Surplus                                      5,662,775        3,999
    Retained Earnings                                      937,357      540,883
                                                        ----------   ----------
        TOTAL STOCKHOLDERS' EQUITY                       6,602,132      544,883
                                                        ----------   ----------

        TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY      $9,808,637   $3,739,526
                                                        ==========   ==========
</TABLE>

                             See Accompanying Notes


                                        4
<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES
                        CONSOLIDATED STATEMENT OF INCOME

                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                        THREE MONTHS JUNE 30,      SIX MONTHS ENDED JUNE 30,
                                                     --------------------------    --------------------------
                                                        1999           1998           1999           1998
                                                     -----------    -----------    -----------    -----------
<S>                                                  <C>            <C>            <C>            <C>
NET SALES                                            $ 3,376,760    $ 3,096,590    $ 9,557,695    $ 8,601,102

COST OF SALES                                          2,878,708      2,523,853      7,305,885      6,675,323
                                                     -----------    -----------    -----------    -----------

   GROSS PROFIT                                          498,052        572,737      2,251,810      1,925,779
                                                     -----------    -----------    -----------    -----------

EXPENSES
   Selling, General and Administrative Expenses          638,427        567,868      1,339,000      1,314,206
   Depreciation and Amortization Expense                 107,189         88,528        215,440        194,608
                                                     -----------    -----------    -----------    -----------
      TOTAL EXPENSES                                     745,616        656,396      1,554,440      1,508,814
                                                     -----------    -----------    -----------    -----------

   INCOME (LOSS) FROM OPERATIONS                        (247,564)       (83,659)       697,370        416,965
                                                     -----------    -----------    -----------    -----------

OTHER INCOME (EXPENSES):
   Interest and Other Income                              28,963          4,639         48,054          9,625
   Interest Expense                                      (48,513)       (34,637)       (76,940)       (86,729)
                                                     -----------    -----------    -----------    -----------
      TOTAL OTHER INCOME (EXPENSES)                      (19,550)       (29,998)       (28,886)       (77,104)
                                                     -----------    -----------    -----------    -----------

   INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES      (267,114)      (113,657)       668,484        339,861

PROVISION (REDUCTION) FOR INCOME TAXES                  (106,600)       (47,450)       272,010        138,250
                                                     -----------    -----------    -----------    -----------

   NET INCOME (LOSS)                                 $  (160,514)   $   (66,207)   $   396,474    $   201,611
                                                     ===========    ===========    ===========    ===========

NET INCOME (LOSS) PER SHARE                          $      (.15)   $      (.07)   $       .38    $       .20
                                                     ===========    ===========    ===========    ===========

WEIGHTED AVERAGE NUMBER OF COMMON SHARES
   OUTSTANDING                                         1,044,198      1,000,000      1,044,198      1,000,000
                                                     ===========    ===========    ===========    ===========
</TABLE>

                             See Accompanying Notes


                                        5
<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES

                 CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY

                         SIX MONTHS ENDED JUNE 30, 1999

                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                         COMMON STOCK
                                        .001 PAR VALUE
                                        --------------
                                                                ADDITIONAL                    TOTAL
                                                                 PAID-IN       RETAINED    STOCKHOLDERS'
                                     SHARES        AMOUNT        SURPLUS       EARNINGS       EQUITY
                                   -----------   -----------   -----------    -----------   -----------
<S>                                <C>           <C>           <C>            <C>           <C>
Balance - January 1, 1999                1,000   $         1   $     3,999    $   540,883   $   544,883

Common Stock Split - 1,000 for 1       999,000           999          (999)          --            --

Sale of Common Stock                 1,000,000         1,000     5,659,775           --       5,660,775

Net Income                                                                        396,474       396,474
                                   -----------   -----------   -----------    -----------   -----------

Balance - June 30, 1999              2,000,000   $     2,000   $ 5,662,775    $   937,357   $ 6,602,132
                                   ===========   ===========   ===========    ===========   ===========
</TABLE>

                             See Accompanying Notes


                                        6
<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENT OF CASH FLOWS

                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                        SIX MONTHS ENDED JUNE 30
                                                               UNAUDITED
                                                               ---------
                                                          1999           1998
                                                       -----------    -----------
<S>                                                    <C>            <C>
CASH FLOWS FROM OPERATING ACTIVITIES
   Net Income                                          $   396,474    $   201,611
   Adjustments to Reconcile Net Income to Cash
   used by Operating Activities:
      Depreciation and Amortization                        215,440        194,608
      Gain on Sale of  Equipment                              --
      Excess of Subsidiary Losses over Investment             --
      (Increase) Decrease in:
         Accounts Receivable                                 5,237        168,782
         Inventory                                         (14,098)        31,545
         Prepaid Expenses                                   84,419        (32,688)
         Deposits                                           12,575           --
      Increase (Decrease) in:
         Accounts Payable                                  (98,785)       (97,038)
         Accrued Expenses                                   82,273         15,474
         Other Taxes Payable                                 9,337         (3,131)
         Customer Advance Payments                        (289,510)       (88,550)
         Income Taxes Payable                              154,735         77,200
         Deferred income Taxes                               7,780          4,250
         Deferred Income                                    (4,850)          (100)
                                                       -----------    -----------
           NET CASH PROVIDED BY OPERATING ACTIVITIES       561,027        471,963
                                                       -----------    -----------

CASH FLOWS FROM INVESTING ACTIVITIES
   Purchase of Property and Equipment                     (380,171)      (162,367)
  (Increase)  Decrease in Shareholder's Loan                (5,342)        34,692
 Other Receivables                                          (5,350)        (3,123)
                                                       -----------    -----------
          NET CASH USED BY INVESTING ACTIVITIES           (390,863)      (130,798)
                                                       -----------    -----------

CASH FLOWS FROM FINANCING ACTIVITIES
   Increase in Notes Payable                               525,032      1,022,822
   Decrease in Notes Payable                              (374,150)      (968,196)
   Loan From Employee                                         --           13,545
   Funds from Sale of Common Stock                       5,660,775           --
                                                       -----------    -----------
           NET CASH (USED) PROVIDED  BY FINANCING
          ACTIVITIES                                     5,811,657         68,171
                                                       -----------    -----------

NET INCREASE IN CASH                                     5,981,821        409,336
Cash - Beginning of Year                                   125,844        155,904
                                                       -----------    -----------
Cash - End of Year                                     $ 6,107,665    $   565,240
                                                       ===========    ===========

The Company had Interest Cash Expenditures of:         $    76,940    $    86,729
The Company had Tax Cash Expenditures of:              $    10,002    $    50,650
</TABLE>

                             See Accompanying Notes


                                        7
<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES

               NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENT

                       DECEMBER 31, 1998 AND JUNE 30, 1999

NOTE 1            BASIS OF PRESENTATION

                  Able Energy, Inc. was incorporated in the state of Delaware on
                  March 13, 1997. Mr. Timothy Harrington exchanged his stock in
                  the following companies: Able Oil Company (a New Jersey
                  corporation), Able Oil Company Montgomery, Inc. (a
                  Pennsylvania corporation), A & O Environmental Services, Inc.
                  (a New Jersey corporation), Able Oil Melbourne, Inc. (a
                  Florida corporation) and his 99% interest in Able Propane, LLC
                  for 1,000 shares of Able Energy, Inc. and became its sole
                  shareholder. In December 1998, the Company sold A & O
                  Environmental Services, Inc. and Able Oil Company Montgomery,
                  Inc.

                  The consolidated interim financial statements included herein
                  have been prepared by the Company, without audit, pursuant to
                  the rules and regulations of the Securities Exchange
                  Commission. Certain information and footnote disclosures
                  normally included in financial statements prepared in
                  accordance with generally accepted accounting principles have
                  been condensed or omitted pursuant to such rules and
                  regulations, although the Company believes that the
                  disclosures are adequate to make the information presented not
                  misleading.

                  These statements reflect all adjustments, consisting of normal
                  recurring adjustments which, in the opinion of management, are
                  necessary for fair presentation of the information contained
                  therein. It is suggested that these consolidated financial
                  statements be read in conjunction with the financial
                  statements and notes thereto included in the Company's annual
                  report for the year ended December 31, 1998. The Company
                  follows the same accounting policies in preparation of interim
                  reports.

                  Results of operations for the interim periods are not
                  indicative of annual results.

NOTE 2            SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

                  NATURE OF OPERATIONS
                  Able Oil Company and Able Melbourne are full service oil
                  companies that market and distribute home heating oil, diesel
                  fuel and kerosene to residential and commercial customers
                  operating in the northern New Jersey and Melbourne, Florida,
                  respectively. Able Propane, which was incorporated in July
                  1996, installs propane tanks which it owns and sells propane
                  for heating and cooking.

                  The Company's operations are subject to seasonal fluctuations
                  with a majority of the Company's business occurring in the
                  late fall and winter months. Approximately 70% of the
                  Company's revenues are earned and received from October
                  through March, and the overwhelming majority of such revenues
                  are derived from the sale of home heating oil. However, the
                  seasonality of the Company's business is offset, in part, by
                  the increase in revenues from the sale of diesel and gasoline
                  fuels during the spring and summer months due to the increased
                  use of automobiles and construction apparatus.


                                        8
<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES

          NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENT (CONT'D)

                       DECEMBER 31, 1998 AND JUNE 30, 1999

NOTE 2            SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D)

                  PRINCIPLES OF CONSOLIDATION
                  The consolidated financial statements include the accounts of
                  Able Energy, Inc. and its subsidiaries. The minority interest
                  of 1% in Able Propane, LLC is so immaterial and has not been
                  shown separately. All material intercompany balances and
                  transactions were eliminated in consolidation.

                  INVENTORIES
                  Inventories are valued at the lower of cost (first in, first
                  out method) or market.


                  PROPERTY AND EQUIPMENT
                  Property and equipment are stated at cost less accumulated
                  depreciation. Depreciation is provided by using the
                  straight-line method based upon the estimated useful lives of
                  the assets (5 to 40 years).

                  For income tax basis, depreciation is calculated by a
                  combination of the straight-line and modified accelerated cost
                  recovery systems established by the Tax Reform Act of 1986.

                  Expenditures for maintenance and repairs are charged to
                  expense as incurred whereas expenditures for renewals and
                  betterments are capitalized.

                  The cost and related accumulated depreciation of assets sold
                  or otherwise disposed of during the period are removed from
                  the accounts. Any gain or loss is reflected in the year of
                  disposal.

                  INTANGIBLE ASSETS
                  Intangibles were amortized as follows:
                  Customer Lists of $571,000 and Covenant Not To Compete of
                  $183,567 related to the Connell's Fuel Oil Company acquisition
                  on October 28, 1996, by Able Oil Company are being amortized
                  over a straight-line period of 15 and 5 years, respectively.

                  For income tax basis, the Customer Lists and the Covenant Not
                  To Compete are being amortized over a straight-line method of
                  15 years as per the Tax Reform Act of 1993.

                  USE OF ESTIMATES

                  The preparation of financial statements in conformity with
                  generally accepted accounting principles requires management
                  to make estimates and assumptions that affect the amounts
                  reported in the financial statements and accompanying notes.
                  Although these estimates are based on management's knowledge
                  of current events and actions it may undertake in the future,
                  they may ultimately differ from actual results.


                                        9
<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES

          NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENT (CONT'D)

                       DECEMBER 31, 1998 AND JUNE 30, 1999

NOTE 2            SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D)

                  INCOME TAXES
                  Effective January 1, 1997, all the subsidiaries, which were
                  S-Corporations, terminated their S-Corporation elections. The
                  subsidiaries will be filing a consolidated tax return with
                  Able Energy, Inc. for 1997 and future years.

                  Effective January 1, 1997, the Company has elected to provide
                  for income taxes based on the provisions of Financial
                  Accounting Standards Board ("FASB") Statement of Financial
                  Accounting Standards ("SFAS") No. 109, "Accounting for Income
                  Taxes", which requires recognition of deferred tax assets and
                  liabilities for the expected future tax consequences of events
                  that have been included in the financial statements and tax
                  returns in different years. Under this method, deferred income
                  tax assets and liabilities are determined based on the
                  difference between the financial statement and tax bases of
                  assets and liabilities using enacted tax rates in effect for
                  the year in which the differences are expected to reverse.

                  CONCENTRATIONS OF CREDIT RISK
                  The Company performs on-going credit evaluations of its
                  customers' financial conditions and requires no collateral
                  from its customers.

                  Financial instruments which potentially subject the Company to
                  concentrations of credit risk consists of checking accounts
                  with a financial institution in excess of insured limits. The
                  Company does not anticipate non-performance by the financial
                  institution.

NOTE 3            NOTES RECEIVABLE

                  The Company has received payment from Able Oil Montgomery,
                  Inc. for the months of January 1999 through June 1999 on its
                  notes receivable of $140,000. The payments totaled $11,761,
                  including interest of $2,428. The Statement of Income
                  recognized income on this installment sale of $4,849 for the
                  six months ended June 30, 1999.

NOTE 4            INVENTORIES

<TABLE>
<CAPTION>
                     ITEMS                            1999             1998
                     -----                            ----             ----
<S>                                                 <C>              <C>
                     Heating Oil                    $ 50,612         $ 38,733
                     Diesel Fuel                       9,648            9,260
                     Kerosene                          1,941            2,082
                     Propane                           2,042               70
                     Parts and Supplies               79,338           79,338
                                                    --------         --------
                          TOTAL                     $143,581         $129,483
                                                    ========         ========
</TABLE>


                                       10
<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES

          NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENT (CONT'D)

                       DECEMBER 31, 1998 AND JUNE 30, 1999

NOTE 5            NOTES PAYABLE BANK

                  Notes payable to PNC Bank include a line of credit of $500,000
                  with interest at the rate of Prime plus 1/2%. The agreement,
                  dated October 20, 1997, and amended July 20, 1998 has a
                  current expiration date of August 31, 1999. There is also a
                  term loan with PNC Bank. The term loan was refinanced for a
                  total of $675,000 on June 12, 1998. The balance as of June 30,
                  1999 is $450,000. The bank has released as collateral the
                  stock of the Company owned by the prior sole shareholder. The
                  Company has replaced this with funds of $975,000 deposited in
                  the bank. All other collateral and covenants remain as per the
                  agreement.

NOTE 6            INCOME TAXES

                  Effective January 1, 1997, the Company adopted Statement of
                  Financial Accounting Standards No. 109, Accounting for Income
                  Taxes.

                  The differences between the statutory Federal Income Tax and
                  Income Taxes is accounted for as follows:

<TABLE>
<CAPTION>
                                                                   1999
                                                                   ----
                                                                        PERCENT OF
                                                                          PRETAX
                                                            AMOUNT        INCOME
                                                           --------       ------
<S>                                                        <C>             <C>
Statutory Federal Income Tax                               $210,700        34.0%

Increase resulting from State Income
Tax, net of Federal Tax benefit                              61,310         5.9%
                                                           --------        ----

Income Taxes                                               $272,010        39.9%
                                                           ========        ====

Income Taxes consist of:
 Current                                                    264,860
 Deferred                                                     7,150
                                                           --------
    TOTAL                                                  $272,010
                                                           ========
</TABLE>


                                       11
<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES

          NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENT (CONT'D)

                       DECEMBER 31, 1998 AND JUNE 30, 1999

NOTE 6            INCOME TAXES

                  The types of temporary differences between the tax bases of
                  assets and liabilities and their financial reporting amounts
                  that give rise to a significant portion of the deferred tax
                  liability and deferred tax asset and their approximate tax
                  effects are as follows at:

<TABLE>
<CAPTION>
                                                                1998
                                                                ----
                                                     TEMPORARY          TAX
                                                     DIFFERENCE        EFFECT
                                                     ----------       ---------
Depreciation                                         $(159,389)       $ (50,601)
Allowance for Doubtful Accounts                         69,235           19,385
Gain on Sale of Subsidiary                              23,615            5,075

<CAPTION>
                                                                1999
                                                                ----
                                                     TEMPORARY          TAX
                                                     DIFFERENCE        EFFECT
                                                     ----------       ---------
<S>                                                  <C>              <C>
Depreciation                                         $(172,590)       $ (58,381)
Allowance for Doubtful Accounts                         69,235           16,695
Gain on Sale of Subsidiary                              18,766            4,275
</TABLE>

NOTE 7            COMMITMENTS AND CONTINGENCIES

                  The Company is subject to laws and regulations relating to the
                  protection of the environment. While it is not possible to
                  quantify with certainty the potential impact of actions
                  regarding environmental matters, in the opinion of management,
                  compliance with the present environmental protection laws will
                  not have a material adverse effect on the financial condition,
                  competitive position, or capital expenditures of the Company.

                  Able Oil Company has contracted with Unocal to take deliveries
                  of 12,000 barrels of #2 oil. The oil will be stored in Able
                  storage tanks and remain the property of Unocal until
                  purchased by Able Oil. Able Oil is under contract to purchase
                  the product in the months of November and December 1999 and
                  January 2000. The pricing will be the NYMEX less $.01 per
                  barrel. At June 30, 1999, Able Oil had in their tanks 6,907
                  barrels or 290,097 gallons of oil belonging to Unocal. The
                  total exposure for the cost of this oil priced at future
                  November, December 1999 and January 2000 is $146,961.

                  Able Oil Company has been examined by the Internal Revenue
                  Service through the year ended December 31, 1995. The only
                  open year for Able Oil Company is December 31, 1996 and Able
                  Energy, Inc., et al, open years are December 31, 1997 and
                  December 31, 1998.


                                       12
<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES

          NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENT (CONT'D)

                       DECEMBER 31, 1998 AND JUNE 30, 1999

NOTE 8            COMMON STOCK SPLIT

                  In conjunction with the Company's initial public offering, its
                  common stock was split 1000-for-l.

<TABLE>
<CAPTION>
                                                                 AFTER SPLIT AND
                                                      ORIGINAL   PUBLIC OFFERING
                                                      --------   ---------------
<S>                                                   <C>         <C>
                Authorized Shares                        10,000     10,000,000
                                                      ---------   ------------
                Issued and Outstanding Shares             1,000      1,000,000
                Public Offering Shares                        0      1,000,000

                Total Issued and Outstanding Shares                  2,000,000

                Par Value $.001 per Share                    $1    $     2,000
                                                                   ===========
</TABLE>

NOTE 9            PUBLIC OFFERING

                  On June 25, 1999, the Company consummated its initial public
                  offering. The Company sold 1 million shares of its common
                  stock to the public at $7 per share.

<TABLE>
<S>                                                               <C>         <C>
                           Total                                              $7,000,000

                  Less: Underwriting Commission                   $700,000
                  Underwriter's Non-Accountable
                          Expense Allocation                       210,000
                  Other Expenses of Offering                       108,000     1,018,000
                                                                 ---------    ----------
                  Net to Company after underwriting Costs                      5,982,000

                  Other Offering Costs:
                  Legal Fees                                       154,000
                  Accounting Fees                                   50,000
                  Printing Costs                                   100,000
                  Stock Exchange and Other Registration Costs       17,225       321,225
                                                                 ---------    ----------

                  Net Funds Realized                                          $5,660,775
</TABLE>

NOTE 10           PER SHARE INFORMATION

                  Per share information has been computed based on the weighted
                  average number of shares. The shares give effect to a
                  1,000-for-1 stock split by the Company and its public offering
                  of 1,000,000 shares.


                                       13
<PAGE>

                       ABLE ENERGY, INC. AND SUBSIDIARIES

ITEM 2            MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                  AND RESULTS OF OPERATIONS

                  Statements in this Quarterly Report on Form 10-QSB concerning
                  the Company's outlook or future economic performance,
                  anticipated profitability, gross billings, expenses or other
                  financial items, and statements concerning assumption made or
                  exceptions to any future events, conditions, performance or
                  other matter are "forward looking statements," as that term is
                  defined under the Federal Securities Laws. Forward-looking
                  statements are subject to risks, uncertainties, and other
                  factors which would cause actual results to differ materially
                  from those stated in such statements. Such risks,
                  uncertainties, and other factors which would cause actual
                  results to differ materially from those stated in such
                  statements. Such risks, and uncertainties and factors include,
                  but are not limited to: (i) changes in external competitive
                  market factors or trends in the Company's results of
                  operation; (ii) unanticipated working capital or other cash
                  requirements; and (iii) changes in the Company's business
                  strategy or an inability to execute its competitive factors
                  that may prevent the Company from competing successfully in
                  the marketplace.

                  REVENUE RECOGNITION

                  Sales of fuel oil and heating equipment are recognized at the
                  time of delivery to the customer, and sales of equipment are
                  recognized at the time of installation. Revenue from repairs
                  and maintenance service is recognized upon completion of the
                  service. Payments received from customers for heating
                  equipment service contracts are deferred and amortized into
                  income over the term of the respective service contracts, on a
                  straight line basis, which generally do not exceed one year.

                  RESULTS OF OPERATIONS

                  THREE MONTHS ENDED JUNE 30, 1999, COMPARED TO THE THREE MONTHS
                  ENDED JUNE 30, 1998.

                  The Company reported revenues of $3,376,760 for the three
                  months ended June 30, 1999, an increase of 9.05% over the
                  prior year's revenues for the same three month period. This
                  increase can be attributed to an aggressive marketing program
                  and fuel sold at a discount, under a promotion. There was also
                  an increase in service work during this period. Revenues for
                  the three months ended June 30, 1998 include $152,119 of sales
                  made by subsidiaries which were sold in December 1998. Had
                  such revenues not been included in total revenue for the three
                  month period ended June 30, 1998, the increase in revenues
                  from such period to the three month period ended June 30, 1999
                  would have been 14.68%.

                  Gross profit margin, as a percentage of revenues, for the
                  three months ended June 30, 1999 remained relatively constant,
                  decreasing 0.40%, from 15.1% one year ago to 14.7% in 1999.
                  This decrease is a result of the Company's fuel promotion and
                  lower pricing of fuel oil. These figures do not take into
                  account the subsidiaries sold in December 1998, whose effect
                  on gross margin was immaterial.


                                       14
<PAGE>

                  Selling, General and Administrative expenses increased by
                  $70,559, or 12.43%, from $567,868 for the three months ended
                  June 30, 1998 to $638,427 for the three months ended June 30,
                  1999. Had the expenses attributable to the two subsidiaries
                  sold in December 1998 not been included, this increase would
                  have been $197,595 or 44.82%. This increase was due to an
                  increase in marketing costs, sales promotion and additional
                  staff which were carried over from the winter months.

                  Operating loss for the three months ended June 30, 1999 was
                  $247,564, an increase of 195.9% over the Company's operating
                  loss of $83,659 for the three months ended June 30, 1998. This
                  increase in operating loss was attributable to lower gross
                  profit resulting from lower product sale prices and the
                  Company's marketing program.

                  Net loss for the three months ended June 30, 1999 increased by
                  $94,307, or 142%, to $160,514, as compared to the same period
                  for the previous year. This increase in net loss was the
                  result of greater marketing costs, sales promotion with
                  discounted sale prices and higher staff salaries which were
                  carried over from the winter months that were more productive
                  than the prior year.

                  SIX MONTHS ENDED JUNE 30, 1999, COMPARED TO THE SIX MONTHS
                  ENDED JUNE 30, 1998.

                  The Company reported revenues of $9,557,659 for the six months
                  ended June 30, 1999, an increase of 11.12% over the prior
                  year's revenues of $8,601,102 for the same six month period.
                  This increase can be attributed to increased sales as a result
                  of cooler weather in the Northeast during the March quarter as
                  compared to warmer weather experienced by the Northeast during
                  November and December 1998. Therefore, some customers who
                  would normally receive delivery of fuel oil in the fourth
                  quarter of 1998, instead, received delivery in the first
                  quarter of 1999. Increased revenues can also be attributable
                  to increased marketing efforts. Revenues for the six months
                  ended June 30, 1998 include $441,328 of sales made by
                  subsidiaries which were sold in December 1998. Had such
                  revenues not been included in total revenue for the six month
                  period ended June 30, 1998, the increase in revenues from such
                  period, as compared to the six month period ended June 30,
                  1999, would have been 17.13%.

                  Gross profit margin, as a percentage of revenues, for the six
                  months ended June 30, 1999, increased to 23.56% of net
                  revenues, representing an increase of 1.6% over a margin of
                  22.40% for the same six month period one year ago. This
                  improvement in margin is primarily a result of stable retail
                  prices for home heating oil with lower product cost.


                                       15
<PAGE>

                  Selling, General and Administrative expenses increased by
                  $24,794, or 1.89%, from $1,314,206 for the six months ended
                  June 30, 1998 to $1,339,000 for the six months ended June 30,
                  1999. These expenses include the expenses of two subsidiaries
                  sold December 1998. If these expenses were eliminated, the
                  increase would be $174,374, or 14.97%, which is due to
                  aggressive marketing, sales promotion and higher staff costs.

                  Operating Income for the six months ended June 30, 1999 was
                  $697,370, an increase of 67.25% over the Company's operating
                  income of $416,965 for the six months ended June 30, 1998.
                  This increase in operating income was attributable to stable
                  retail prices for home heating oil and lower home heating oil
                  product costs paid by the Company during the last twelve
                  months as a result of unusually low fuel prices. The operating
                  income for the two subsidiaries sold in December 1998 was
                  included in this calculation but was not material with respect
                  to this six months comparison.

                  Net income for the six months ended June 30, 1999 increased by
                  $194,863 or 96.65% to $396,474 as compared to the same period
                  in previous year. This increase in net income is a direct
                  result of continued sales growth and improved gross margin,
                  occasioned primarily by lower wholesale fuel prices, which
                  more than offset the Company's investment in consumer
                  promotions and advertising. As a percentage of net revenues,
                  income for the first six months of 1999 increased to 4.14% as
                  compared to 2.34% for the same period in the previous year. In
                  addition to an increase in gross margin, as described above,
                  the Company also profited from certain forward purchase
                  contracts and from sales to customers with automatic delivery
                  contracts.

                  CONCENTRATION OF REVENUE WITH GUARANTEED MAXIMUM PRICE
                  CUSTOMERS

                  Approximately 5% of the Company's heating oil volume is sold
                  to individual customers under an agreement which
                  pre-establishes the maximum sales price of oil over a twelve
                  month period. The maximum price at which oil is sold to these
                  customers is renegotiated in each spring to reflect current
                  market conditions. The Company currently enters into a forward
                  purchase contract for a substantial majority of the oil it
                  sells to these customers. Should the cost of oil rise above
                  the capped sales price, margins for the capped-price customer
                  whose oil was not purchased in advance would be lower than
                  expected. Conversely, should the cost of oil decrease below
                  the capped sales price, margins for the capped-price customers
                  whose oil was purchased in advance would be higher than
                  expected. The capped-priced customers' payments are received
                  in advance and are shown on the Company's balance sheet as
                  customer deposits in current liabilities.


                                       16
<PAGE>

                  LIQUIDITY AND CAPITAL RESOURCES

                  For the six month period ended June 30, 1999, compared to the
                  six months ended June 30, 1998, the Company's cash position
                  increased by $5,552,865 from $554,800 to $6,107,665. For the
                  six months ended June 30, 1999, operations generated $114,721
                  in cash, and $5,867,100 in cash was generated from the
                  Company's initial public offering. For the six months ended
                  June 30, 1998, cash was generated through operations, net
                  income and collections of accounts receivable.

                  As a result of a refinancing with its primary financial
                  institution, PNC Bank, the Company has access to $500,000 of
                  credit line funds. The Company's credit line was increased
                  from $350,000 to $500,000 at 0.5% above the prime rate, and
                  its current outstanding credit line and other debt with the
                  bank was rolled into a 3-year term loan in the principal
                  amount of $675,000, bearing interest at a rate of
                  approximately 1% above prime rate. As of June 30, 1999,
                  $280,000 of this line of credit was used by the Company. Both
                  the credit line and the term loan are guaranteed by $975,000
                  which is deposited in with PNC Bank.

                  The Company received net proceeds from its initial public
                  offering in an amount estimated to be $5,867,100. The Company
                  believes that the net proceeds of this offering, coupled with
                  the refinancing and income from operations, will fulfill the
                  Company's working capital needs for the next 24 months. As the
                  Company continues to grow, bank borrowings, or other debt
                  placements and equity offerings may be considered, in part, or
                  in combination, as the Company's situation warrants.

                  SEASONALITY

                  The Company's operations are subject to seasonal fluctuations,
                  with a majority of the Company's business occurring in the
                  late fall and winter months. Approximately 70% of the
                  Company's revenues are earned and received from October
                  through March, and the overwhelming majority of such revenues
                  are derived from the sale of home heating oil. However, the
                  seasonality of the Company's business is offset, in part, by
                  an increase in revenues from the sale of diesel and gasoline
                  fuels during the spring and summer months, due to the
                  increased use of automobiles and construction apparatus.

                  From May through September, Able Oil can experience
                  considerable reduction of retail heating oil sales. Similarly,
                  Able Propane can experience up to 80% decrease in heating
                  related propane sales during the months of April to September,
                  which is offset somewhat by an increase of pool heating and
                  cooking fuel.

                  Over 90% of Able Melbourne's revenues are derived from the
                  sale of diesel fuel for construction vehicles, and commercial
                  and recreational sea-going vessels during Florida's fishing
                  season which begins in April and ends in November. Only a
                  small percentage of Able Melbourne's revenues are derived from
                  the sale of home heating fuel. Most of these sales occur from
                  December through March, Florida's cooler months.


                                       17
<PAGE>

                  YEAR 2000

                  Many existing computer programs use only a two digit suffix to
                  identify a year in the date field with an assumed prefix of
                  "19". Consequently, this limits those systems to dates between
                  1900 and 1999. If not corrected, many computer systems and
                  applications could fail or create erroneous results at or in
                  connection with applications after the year 2000.

                  Approximately 50% of the Company's customers receive their
                  home heating oil and/or propane pursuant to an automatic
                  delivery system whereby deliveries are scheduled by computer,
                  based on each customer's historical consumption patterns and
                  prevailing weather conditions. In the event that the Company
                  does have Year 2000 problems, failures and interruptions
                  resulting from computing system problems could have a material
                  adverse effect on the Company's results of operations.

                  The Company has undertaken to review the potential impact of
                  the year 2000 issue to its internal operations. Such
                  assessment has included a review of the impact of the issue on
                  business systems and other areas. Based on the results of the
                  Company's review, it does not anticipate that the year 2000
                  issue will impact operations or operating results. Although
                  the Company has determined that all of its systems are
                  currently Year 2000 compliant, it has undertaken to replace
                  its computer systems. The Company anticipates that it will
                  have a new computer system in place by October 1999 at a cost
                  of approximately $50,000.

                  Additionally, the Company relies on its customers, suppliers,
                  utility service providers, financial institutions and other
                  partners in order to continue normal business operations. The
                  Company has been advised by most, if not all, of its external
                  vendors, business associates, and associated financial
                  institutions that they are now Year 2000 compliant. However,
                  at this time, it is impossible to assess the impact of the
                  year 2000 issue on each of these organizations. There can be
                  no guarantee that the systems of other unrelated entities will
                  be corrected on a timely basis and will not have a material
                  adverse effect on the Company. As the Company does not
                  typically engage in contracts with its vendors for the supply
                  of energy products, it is not dependent on any one vendor. In
                  the event any of the Company's vendors are affected by year
                  2000 issues, management believes that it will have access to a
                  number of alternative vendors and management believes that
                  such occurrence should not have material adverse effect on the
                  Company's business or operations.


                                       18
<PAGE>

                                     PART II

                                OTHER INFORMATION

ITEM 1.           LEGAL PROCEEDINGS

                  None.

ITEM 2.           CHANGES IN SECURITIES AND USE OF PROCEEDS

                  On June 21, 1999, the Company's registration statement on Form
                  SB-2, registration number 333-59109, was declared effective.
                  The registration statement related to the initial public
                  offering of 1,000,000 shares of the Company's common stock,
                  $.001 par value per share, at a public offering price of $7.00
                  per share. Kashner Davidson Securities Corp. served as the
                  managing underwriter of the offering.

                  An aggregate of 1,250,000 shares of the Company's common stock
                  were registered pursuant to its registration statement which
                  consisted of: (i) 1,000,000 shares offered to the public; (ii)
                  150,000 shares which underlie the over-allotment option
                  granted to the underwriters of the offering, of which 75,000
                  shares were to be offered by the Company and 75,000 shares
                  were to be offered by Timothy Harrington, the Company's Chief
                  Executive Officer; and (iii) 100,000 shares of common stock
                  issuable upon exercise of the underwriter's warrant, such
                  shares are exercisable for a period commencing June 21, 2000
                  until four years thereafter at an exercise price of $11.55 per
                  share. The aggregate price of the securities registered was
                  $9,205,100. Of the 1,250,000 shares that were registered,
                  1,000,000 shares were sold for an aggregate offering price of
                  $7,000,000.

                  The following table sets forth the expenses incurred by the
                  Company in connection with the offering from the effective
                  date of the Company's registration statement through June 30,
                  1999, plus the net amount of proceeds from the offering
                  received by the Company: the Company incurred the following
                  expenses:

<TABLE>
<CAPTION>
DESCRIPTION                                                            AMOUNT
-----------                                                            ------
<S>                                                                  <C>
Underwriters' Discount...................................            $  700,000
Underwriters' Non-Accountable Expense
Allowance................................................               210,000
Underwriters' Consulting Fee.............................               108,000
Printing Services.........................................              100,000
Accounting Services.......................................               50,000
Legal Services, Including Blue Sky Fees and
Expenses.................................................               154,000
Miscellaneous Expenses....................................               17,225
                                                                     ----------
Net Proceeds to Company..................................            $5,660,775
</TABLE>

                  As of June 30, 1999, none of the net proceeds from the
                  offering has been expended by the Company; however, $975,000
                  of the proceeds from the offering has been deposited with PNC
                  Bank as a guaranty for a line of credit and a term


                                       19
<PAGE>

                  loan with PNC Bank. The term loan and the line of credit total
                  an aggregate of $975,000 in indebtedness. Such indebtedness
                  was previously guaranteed by, among other things, all of the
                  shares of common stock of the Company beneficially owned by
                  Timothy Harrington, the Company's Chief Executive Officer.
                  Upon the deposit of the $975,000, PNC Bank released Mr.
                  Harrington's shares from the guaranty. See Note 5 to Financial
                  Statements.

ITEM 6.           EXHIBITS AND REPORTS ON FORM 8-K.

                  (A) Exhibits filed herewith:

                   EXHIBIT

                  10.1     Sale Agreement between the Comapny and Union Oil
                           Company of California, dated June 4, 1999
                  10.2     Storage Throughput Agreement between the Company and
                           Union Oil
                           Company of California, dated June 4, 1999
                  27.1     Financial Data Schedule

                  (B)      Forms 8-K filed during quarter:

                           None.


                                       20
<PAGE>

                                   SIGNATURES

                  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.

                                                    ABLE ENERGY, INC.

                                                    By: CHRISTOPHER P. WESTAD
                                                        ------------------------
                                                    Christopher P. Westad,
                                                    President and
                                                    Principal Financial Officer


                  Dated: August 13, 1999


                                       21