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 September 30, 2000

                                       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)

<TABLE>
<CAPTION>
<S>                                                                                            <C>
         Delaware                                                                              22-3520840
(State or other jurisdiction of                                                             (I.R.S. employer
incorporation or organization)                                                              identification No.)
</TABLE>

                                  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 X  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 [X] No [ ]

         As of November 7, 2000, 2,000,000 shares, $.001 Par value per share, of
Able Energy, Inc. were issued and outstanding.


                                        1
<PAGE>
                                TABLE OF CONTENTS

<TABLE>
<CAPTION>


                                                                                            PAGE


PART I - FINANCIAL INFORMATION

ITEM 1 - FINANCIAL STATEMENTS (UNAUDITED)

<S>                                                                                              <C>
         Accountants' Report                                                                     3

         Consolidated Balance Sheets as of December 31, 1999 and
            September 30, 2000                                                                   4 - 5

         Consolidated Statements of Operations for the three and nine
            months ended September 30, 2000 and September 30, 1999                               6

         Consolidated Statement of Stockholders' Equity nine months
            ended September 30, 2000                                                             7

         Consolidated Statements of Cash Flows for the nine months
            ended September 30, 2000 and 1999                                                    8

         Notes to Unaudited Financial Statements                                                 9 - 19

</TABLE>


















                                        2
<PAGE>




To the Board of Directors
Able Energy, Inc.
Rockaway, New Jersey 07866


                         Independent Accountants' Report

We have reviewed the condensed  consolidated  balance sheet of Able Energy, Inc.
and   Subsidiaries  as  of  September  30,  2000,  and  the  related   condensed
consolidated  statements  of  operations  and cash  flows for the three and nine
month periods ended September 30, 2000 and 1999 and the  consolidated  statement
of  stockholders'  equity for the nine months ended  September  30, 2000.  These
financial statements are the responsibility of the Company's management.

We conducted our review in  accordance  with the  standards  established  by the
American  Institute  of  Certified  Public  Accountants.  A  review  of  interim
financial  information  consists primarily of applying analytical  procedures to
financial  data and making  inquiries of persons  responsible  for financial and
accounting matters. It is substantially less in scope than an audit conducted in
accordance with generally accepted auditing standards, the objective of which is
the  expression  of an opinion  regarding the  financial  statements  taken as a
whole. Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material  modifications that should
be made to the condensed consolidated financial statements referred to above for
them to be in conformity with generally accepted accounting principles.

We have  previously  audited,  in accordance  with generally  accepted  auditing
standards,  the  consolidated  balance  sheet as of December 31,  1999,  and the
related consolidated statements of income, retained earnings, and cash flows for
the year then ended (not  presented  herein);  and in our report dated March 16,
2000,  we  expressed  an  unqualified  opinion on those  consolidated  financial
statements.  In our  opinion,  the  information  set  forth in the  accompanying
condensed  consolidated balance sheet as of December 31, 1999, is fairly stated,
in all material  respects,  in relation to the  consolidated  balance sheet from
which it has been derived.





Rockaway, New Jersey
November 7, 2000


                                        3
<PAGE>
                       ABLE ENERGY, INC. AND SUBSIDIARIES

                           CONSOLIDATED BALANCE SHEET
<TABLE>
<CAPTION>


                                                            ASSETS

                                                                                               September               December 31,
                                                                                               30, 2000                    1999
                                                                                              (Unaudited)                Audited

Current Assets:
<S>                                                                                       <C>                           <C>
    Cash                                                                                  $ 2,708,560                   $ 2,926,412
    Accounts Receivable (Less Allowance for Doubtful
     Accounts of ($157,974) at 12/31/99 and ($157,974) 9/30/00                              2,289,457                     1,996,500
    Inventory                                                                                 867,248                       229,979
    Notes Receivable - Current Portion                                                         16,798                        61,748
    Miscellaneous Receivable                                                                   65,223                        22,640
    Prepaid Expense                                                                            64,631                        48,826
    Prepaid Expense - Income Taxes                                                            119,951                       119,951
    Deferred income Tax                                                                        48,270                        48,270
    Due From Officer                                                                           44,690                        44,690
                                                                                           ----------                   -----------
        Total Current Assets                                                                6,224,828                     5,499,016
                                                                                           ----------                   -----------

Property and Equipment:
    Land                                                                                      451,925                       451,925
    Building                                                                                1,106,850                     1,008,250
    Trucks                                                                                  2,265,545                     2,236,508
    Fuel Tanks                                                                                994,942                       836,790
    Machinery and Equipment                                                                   345,233                       346,198
    Leasehold Improvements                                                                    192,364                       187,364
    Cylinders                                                                                 364,940                       319,490
    Office Furniture and Equipment                                                             42,666                        14,841
     Web Site Development Costs                                                             2,207,888                       -
                                                                                           ----------                   -----------
                                                                                            7,972,353                     5,401,366
    Less: Accumulated depreciation                                                          1,635,100                     1,266,201
                                                                                           ----------                   -----------
        Net Property and Equipment                                                          6,337,253                     4,135,165
                                                                                           ----------                   -----------

Other Assets:
    Deposits                                                                                  109,810                        94,625
    Notes Receivable - Less Current Portion                                                   193,814                       126,863
    Customer List, Less Amortization of 1999 ($125,045), and
      2000 ($156,594).                                                                        454,256                       485,805
    Covenant Not to Compete, Less Amortization of 1999
     ($125,123) and 2000 ($167,658).                                                          115,909                       158,444
                                                                                         ------------                  ------------
         Total Other Assets                                                                   873,789                       865,737
                                                                                         ------------                  ------------

        Total Assets                                                                      $13,435,870                   $10,499,918
                                                                                          ===========                   ===========
</TABLE>


                             See Accompanying Notes
                                        4
<PAGE>
                       ABLE ENERGY, INC. AND SUBSIDIARIES

                       CONSOLIDATED BALANCE SHEET (Cont'd)

                       LIABILITIES & STOCKHOLDERS' EQUITY

<TABLE>
<CAPTION>



                                                                                       September 30,               December 31,
                                                                                                2000                       1999
                                                                                         (Unaudited)                  (Audited)
Current Liabilities:
<S>                                                                                      <C>                        <C>     <C>
    Accounts Payable                                                                     $ 1,795,923                $ 1,638 699
    Note Payable - Bank                                                                      711,652                    201,214
    Current Portion of Long-Term Debt                                                        567,195                    789,978
    Accrued Expenses                                                                         917,023                    260,818
    Customer Advance Payments                                                              1,755,878                    156,738
    Current Portion of Deferred Income                                                             -                     14,548
    Escrow Deposits                                                                           35,000                     15,000
                                                                                        ------------                -----------
        Total Current Liabilities                                                          5,782,671                  3,076,995


Deferred Income: less current portion                                                         88,857                     53,342
Deferred Income Taxes                                                                         59,191                     56,201
Long Term Debt: less current portion                                                       1,756,683                  1,529,444
                                                                                        ------------                -----------
        Total Liabilities                                                                  7,687,402                  4,715,982
                                                                                        ------------                -----------

Stockholders' Equity:
    Common Stock
    Authorized 10,000,000 Shares, Par Value $.001 per
       share Issued and Outstanding 2,000,000 shares                                           2,000                      2,000
    Paid in Surplus                                                                        5,662,775                  5,662,775
    Retained Earnings                                                                         83,693                    119,161
                                                                                        ------------                -----------
        Total Stockholders' Equity                                                         5,748,468                  5,783,936
                                                                                        ------------                -----------

        Total Liabilities and Stockholders' Equity                                       $13,435,870                $10,499,918
                                                                                         ===========                ===========


</TABLE>









                             See Accompanying Notes
                                        5
<PAGE>
                       ABLE ENERGY, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENT OF OPERATIONS

                                   (UNAUDITED)




<TABLE>
<CAPTION>
                                                         Three Months September 30,    Nine Months Ended September 30,



                                                          2000            1999            2000           1999
                                                          ----            ----            ----           ----
<S>                                                  <C>             <C>             <C>             <C>
Net Sales                                            $  5,872,015    $  3,382,508    $ 21,838,999    $ 12,940,203

Cost of Sales                                           5,268,106       3,334,807      18,311,124      10,640,692
                                                     ------------    ------------    ------------    ------------

   Gross Profit                                           603,909          47,701       3,527,875       2,299,511
                                                     ------------    ------------    ------------    ------------

Expenses
   Selling, General and Administrative Expenses         1,132,622         761,476       3,127,812       2,100,476
   Depreciation and Amortization Expense                  171,528         124,790         509,628         340,230
                                                     ------------    ------------    ------------    ------------
      Total Expenses                                    1,304,150         886,266       3,637,440       2,440,706
                                                     ------------    ------------    ------------    ------------

   Income (Loss) From Operations                         (700,241)       (838,565)       (109,565)       (141,195)
                                                     ------------    ------------    ------------    ------------

Other Income (Expenses):
   Interest and Other Income                              117,273          60,247         262,558         108,301
   Interest Expense                                       (45,165)        (53,424)       (143,265)       (130,364)
   Loss on Abandonment of Fixed Assets                       --              --           (42,206)           --
                                                     ------------    ------------    ------------    ------------
      Total Other Income (Expenses)                        72,108           6,823          77,087         (22,063)
                                                     ------------    ------------    ------------    ------------

   Income (Loss) Before Provision for Income Taxes
    and Extraordinary Item                               (628,133)       (831,742)        (32,478)       (163,258)

Provision (Reduction) for Income Taxes                   (250,510)       (305,320)          2,990         (33,310)
                                                     ------------    ------------    ------------    ------------

   Net Income (Loss) - Continuing Operations             (377,623)       (526,422)        (35,468)       (129,948)

   Extraordinary Item                                        --            55,019            --            55,019
                                                     ------------    ------------    ------------    ------------

Net Income (Loss)                                    $   (377,623)   $   (471,403)   $    (35,468)   $    (74,929)
                                                     ============    ============    ============    ============

Net Income (Loss) Per Share - Continuing             $       (.19)   $       (.39)   $       (.02)   $       (.09)
                                                     ------------    ------------    ------------    ------------
Operations
                                                     $       --      $        .04    $       --      $        .04
                                                     ------------    ------------    ------------    ------------
Extraordinary Item - Per Share
                                                     $       (.19)   $       (.35)   $       (.02)   $       (.05)
                                                     ------------    ------------    ------------    ------------
    Net Income (Loss) Per Share

Weighted Average Number of Common Shares                2,000,000       1,366,300       2,000,000       1,366,300
  Outstanding                                        ============    ============    ============    ============
</TABLE>







                             See Accompanying Notes
                                        6
<PAGE>
                       ABLE ENERGY, INC. AND SUBSIDIARIES

                 CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY

                      NINE MONTHS ENDED SEPTEMBER 30, 2000

                                   (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>          <C>
Balance - January 1, 2000       2,000,000    $    2,000    $5,662,775   $  119,161   $5,783,936

Net Loss                                                                   (35,468)     (35,468)
                               ----------    ----------    ----------   ----------   ----------

Balance - September 30, 2000    2,000,000    $    2,000    $5,662,775   $   83,693   $5,748,468
                               ==========    ==========    ==========   ==========   ==========
</TABLE>



















                             See Accompanying Notes
                                        7

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

                                   (UNAUDITED)
<TABLE>
<CAPTION>

                                                                                               NINE MONTHS ENDED SEPTEMBER 30
                                                                                             UNAUDITED

                                                                                                  2000                     1999
                                                                                                  ----                     ----
Cash Flows From Operating Activities
<S>                                                                                             <C>                     <C>
   Net Income (Loss) - Continuing Operations                                                     $ (35,468)              $ (129,948)
   Adjustments to Reconcile Net Income to Cash
   used by Operating Activities:
      Depreciation and Amortization                                                                509,628                  340,230
      Extraordinary Item - Net                                                                           -                   55,019
      Loss on Disposition of  Equipment                                                             42,206                        -
      (Increase) Decrease in:
         Accounts Receivable                                                                      (292,957)                (237,418)
         Inventory                                                                                (637,269)                (123,115)
         Prepaid Expenses                                                                          (15,805)                 (21,595)
         Deposits                                                                                  (15,185)                   9,364
      Increase (Decrease) in:
         Accounts Payable                                                                          157,224                 (249,509)
         Accrued Expenses                                                                          656,205                  259,270
         Other Taxes Payable                                                                             -                   17,477
         Customer Advance Payments                                                               1,599,140                  (43,916)
         Income Taxes Payable                                                                            -                  (10,002)
         Deferred income Taxes                                                                       2,990                    5,839
         Deferred Income                                                                            20,967                   (4,849)
                                                                                              ------------            -------------
           Net Cash Provided (Used) by Operating Activities                                      1,991,676                 (133,153)
                                                                                              ------------            -------------

Cash Flows From Investing Activities
   Purchase of Property and Equipment                                                             (471,950)              (1,957,099)
   Web Site Development Costs                                                                   (2,207,888)                       -
   (Increase)  Decrease in Shareholder's Loan                                                            -                  (10,517)
    Note and Other Receivables                                                                    (64,584)                    1,286
    Purchase of intangible Assets                                                                        -                 (139,850)
                                                                                              ------------            -------------
          Net Cash Used  By Investing Activities                                                (2,744,422)              (2,106,180)
                                                                                              ------------            -------------

Cash Flows From Financing Activities
   Increase in Notes Payable                                                                       510,438                1,371,591
   Decrease in Long-Term Debt                                                                     (495,544)                (846,414)
   Increase in Long-Term Debt                                                                      500,000                        -
   Increase Escrow Deposit Payable                                                                  20,000                        -
   Funds from Sale of Common Stock                                                                       -                5,660,775
                                                                                              ------------            -------------
           Net Cash Provided  By Financing
          Activities                                                                               534,894                6,185,952
                                                                                              ------------            ------------

Net (Decrease) Increase In Cash                                                                  (217,852)                3,946,619
Cash - Beginning of Year                                                                         2,926,412                  125,844
                                                                                              ------------            ------------
Cash - End of Year                                                                              $2,708,560               $4,072,463
                                                                                                ==========               ==========

The Company had Interest Cash Expenditures of:                                                 $   143,265              $   130,364
The Company had Tax Cash Expenditures of:                                                      $         -              $    25,002


</TABLE>


                             See Accompanying Notes
                                        8
<PAGE>
                       ABLE ENERGY, INC. AND SUBSIDIARIES

               NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENT

                    DECEMBER 31, 1999 AND SEPTEMBER 30, 2000




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.

          On August 27, 1999, the Company, through a newly formed wholly owned
     subsidiary, Able Energy - New York, Inc., purchased the assets of B & B
     Fuels of Warrensburg, New York. This acquisition was treated as a purchase.

          On August 31, 1999, the Company, through a newly formed wholly owned
     subsidiary, Able Energy Terminal, LLC, purchased the facility on Route 46,
     Rockaway, NJ. The facility has two tenants.

          The Company is the majority owner of a newly formed subsidiary, Price
     Energy.Com, which is in the process of establishing a Web Site for the sale
     of energy products through a network of suppliers originally on the East
     coast of the United States. The Web Site became active in October 2000.

          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, 1999. 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.

                                        9
<PAGE>
                       ABLE ENERGY, INC. AND SUBSIDIARIES

          NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (cont'd)

                    DECEMBER 31, 1999 AND SEPTEMBER 30, 2000


Note 2         Summary of Significant Accounting Policies

          Nature of Operations

          Able Oil Company, Able Melbourne and Able Energy - New York, Inc. 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, and Warrensburg, New
     York respectively. Able Propane, which was incorporated in July 1996,
     installs propane tanks, which it owns, and sells propane gas for heating
     and cooking along with other residential and commercial uses.

          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.

          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.

          Minority Interest

          the minority interest in Price Energy.Com is a deficit and, in
     accordance with Accounting Research Bulletin No. 51, subsidiary losses
     should not be charged against the minority interest to the extent of
     reducing it to a negative amount, as such, the losses have been charged
     against the Company, the majority owner. The loss for the period ended
     September 30, 2000 is $102,404.

          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.

                                       10
<PAGE>
                       ABLE ENERGY, INC. AND SUBSIDIARIES

          NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENT (Cont'd)

                    DECEMBER 31, 1999 AND SEPTEMBER 30, 2000



Note 2         Summary of Significant Accounting Policies (cont'd)

          Property and Equipment (cont'd)

          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.

          Web Site Development Costs

          Costs of $2,207,888 incurred in the developmental stage for computer
     hardware and software have been capitalized in accordance with accounting
     pronouncement SOP98-1. The costs will be amortized on a straight line basis
     during the estimated useful life.

          Intangible Assets

          Intangibles are stated at cost and 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. The current period amortization also includes a customer list
     of $39,850 and Covenant Not To Compete of $100,000 relating to the
     acquisition from B & B Fuels on August 27, 1999, is being amortized over a
     straight-line period of 10 and 5 years, respectively. The amortization for
     the nine months ended September 30, 2000 is $56,085.

          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.








                                       11
<PAGE>
                       ABLE ENERGY, INC. AND SUBSIDIARIES

          NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENT (Cont'd)

                    DECEMBER 31, 1999 AND SEPTEMBER 30, 2000


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
     are now filing a consolidated tax return with Able Energy, Inc.

          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 and savings accounts
     with several financial institutions in excess of insured limits. The excess
     above insured limits is approximately $1,737,235. The Company does not
     anticipate non-performance by the financial institution.

          Cash

          For the purpose of the statement of cash flows, cash is defined as
     balance held in corporate checking accounts and money market accounts.

          Advertising Expense

          Advertising costs are expensed at the time the advertisement appears
     in various publications and other media. The expense was $305,615 for the
     nine months ended September 30, 2000.

Note 3    Notes Receivable

          The Company has a Receivable from Able Montgomery, Inc. and Andrew W.
     Schmidt related to the sale of Able Montgomery, Inc. to Schmidt and a truck
     financed by Able Energy, Inc. No payments of principal or interest have
     been received for more than one year. A new note was drawn dated June 15,
     2000 for $170,000, including the prior balance, plus accrued interest. The
     Note bears interest at 9.5% per annum and payments commence October 1,
     2000. The payments will be monthly with a final payment of $55,981.07 due
     September 1, 2010.

                                       12

<PAGE>
                       ABLE ENERGY, INC. AND SUBSIDIARIES

          NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENT (Cont'd)

                    DECEMBER 31, 1999 AND SEPTEMBER 30, 2000


Note 3    Notes Receivable (cont'd)

          The note is secured by a pledge and security agreement and stock
     purchase agreement (Stock of Able Montgomery, Inc.), dated December 31,
     1998, and the assets of Andrew W. Schmidt with the note dated June 15,
     2000. The income on the sale of the company in December 1998 and the
     accrued interest on the drawing of the new note are shown as deferred
     income to be realized on collection of the notes. The note and deferred
     income are being shown as non-current on the Balance Sheet at September 30,
     2000.

Note 4          Inventories
<TABLE>
<CAPTION>

                     Items                                                        2000                  1999
                     -----                                                        ----                  ----
<S>                                                                            <C>                    <C>
                     Heating Oil                                               $703,833               $ 89,419
                     Diesel Fuel                                                 54,661                 37,596
                     Kerosene                                                     8,205                  4,709
                     Propane                                                      9,055                  5,541
                     Parts and Supplies                                          91,494                 92,714
                                                                              ---------              ---------
                          Total                                                $867,248               $229,979
                                                                               ========               ========
</TABLE>


Note 5         Notes Payable Bank

          The Agreement with Able Oil Company and PNC Bank, dated August 11,
     1999, was amended July 14, 2000. The amended is as follows:

  1. The line of credit is increased from $500,000 to $750,000.

  2. The current expiration date is September 30, 2001.

  3. Security is hereby amended to reduce the required amount of pledged
     cash collateral from $972,000 to $490,000. This is represented by a first
     priority lien on collateral consisting of a Provident Institution Money
     Market Fund.

  4. Security is added by a guaranty and suretyship agreement with Able
     Energy, Inc., Able Propane, LLC, Able Energy Terminal, LLC, Able Oil
     Melbourne, Inc. and Able Energy New York, Inc. and will unconditionally
     jointly and severally guarantee payment to the Bank.

  5. A security agreement granting the bank a first priority perfected
     lien on the existing and future personal property of Able Oil Company and
     the companies listed in item 4 above. Notwithstanding the aforesaid
     requirement, the named entities may finance the acquisition of equipment
     with other financial parties by way of true leases or financing leases
     having an aggregate outstanding balance of $1,000,000 at any given time,
     providing to such third party financiers liens upon the equipment thus
     financed, which liens shall be superior in priority to the lien of the bank
     in any such equipment.


                                       13
<PAGE>
                       ABLE ENERGY, INC. AND SUBSIDIARIES

          NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENT (Cont'd)

                    DECEMBER 31, 1999 AND SEPTEMBER 30, 2000


Note 5         Notes Payable Bank (cont'd)

  6. The agreement calls for certain financial covenants commencing with
     the fiscal year end 2000.

     The line of credit bears an interest rate of Prime minus one-half
     (1/2%) with an outstanding balance of $711,652 at September 30, 2000.

     There is a term loan with PNC Bank which was refinanced for a total of
     $675,000 on June 12, 1998 with a current interest rate of 8.15%. The
     balance at September 30, 2000 is $170,000 and has nine months to maturity.

Note 6          Long-Term Debt

          Mortgage note payable dated, August 27, 1999, related to the purchase
     of B & B Fuels facility and equipment. The total note is $145,000. The note
     is payable in the monthly amount of principal and interest of $1,721.18
     with and interest rate of 7.5% per annum. The initial payment was made on
     September 27, 1999, and continues monthly until August 27, 2009 which is
     the final payment. The note is secured by a mortgage made by Able Energy
     New York, Inc. on property at 2 and 4 Green Terrace and 4 Horican Avenue,
     Town of Warrensburg, Warren County, New York. The balance due on this Note
     at September 30, 2000 was $133,999.

          Mortgage note payable dated, August 31, 1999, related to the purchase
     of the facility and equipment in Rockaway, New Jersey by Able Energy
     Terminal, LLC ("Terminal"). The note is in the amount of $650,000.

          Pursuant to Section 4.4 of the Agreement of Sale to purchase the
     Terminal, the Principal Sum of the $650,000 note shall be reduced by an
     amount equal to one-half of all sums expended by Borrower on the
     investigation and remediation of the property provided, however, that the
     amount of said reduction shall not exceed $250,000 (the "Remediation
     Amount").

          The "Principal Sum" less the "Remediation Amount" shall be an amount
     equal to $400,000 (the "Reduced Principal Sum"). The Reduced Principal Sum
     shall bear interest from the date hereof at the rate of 8.25% per annum.
     Any portion of the Remediation Amount not utilized in the investigation and
     remediation of the property shall not begin to accrue interest until such
     time that (i) a No Further Action Letter" is obtained from the Department
     of Environmental Protection, and (ii) an outstanding lawsuit concerning the
     property is resolved through settlement or litigation (subject to no
     further appeals). All payments on this Note shall be applied first to the
     payment of interest, with any balance to the payment and reduction of the
     Reduced Principal Sum.


                                       14

<PAGE>
                       ABLE ENERGY, INC. AND SUBSIDIARIES

          NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENT (Cont'd)

                    DECEMBER 31, 1999 AND SEPTEMBER 30, 2000


Note 6          Long-Term Debt (cont'd)

          Interest shall be due and payable commencing on September 30, 1999 on
     the Reduced Principal Sum of the note on the last day of each month up to
     and including July 31, 2004.

          The Note is collateralized by the property and equipment purchased and
     assignment of the leases. The balance due on this Note at September 30,
     2000 was $650,000.

Note 7          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 Continuing Operation is accounted for as follows: 2000
<TABLE>
<CAPTION>

                                                                                                      Percent of
                                                                                                        Pretax
                                                                                Amount                  Income

<S>                                                                             <C>                       <C>
Statutory Federal Income Tax                                                    $1,950                    15.0%

Increase resulting from State Income
Tax, net of Federal Tax benefit                                                  1,040                     7.6%
                                                                               -------                   -----

Income Taxes                                                                    $2,990                    22.6%
                                                                                ======                   =====

Income Taxes consist of:
 Current                                                                       $   -0-
 Deferred                                                                        2,990
                                                                                ------
    Total                                                                       $2,990
                                                                                ======
</TABLE>










                                       15

<PAGE>
                       ABLE ENERGY, INC. AND SUBSIDIARIES

          NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENT (Cont'd)

                    DECEMBER 31, 1999 AND SEPTEMBER 30, 2000



Note 7          Income Taxes (cont'd)
<TABLE>
<CAPTION>

                                                                                   1999

                                                                                                      Percent of
                                                                                                        Pretax
                                                                                Amount                  Income

<S>                                                                          <C>                        <C>
Statutory Federal Income Tax                                                 $(27,405)                  (15.0%)

Increase resulting from State Income
Tax, net of Federal Tax benefit                                                (5,905)                   (7.6%)
                                                                             --------                   ------

Income Taxes                                                                 $(33,310)                  (22.6%)
                                                                             ========                  =======

Income Taxes consist of:
 Current                                                                     $(27,775)
 Deferred                                                                      (5,535)
                                                                            ---------
    Total                                                                    $(33,310)
                                                                             ========
</TABLE>


                  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>
                                                                                                     2000

                                                                                   Temporary                 Tax
                                                                                  Difference               Effect

<S>                                                                             <C>                    <C>
Depreciation                                                                    $ (192,389)            $ (59,191)
Allowance for Doubtful Accounts                                                     157,974                44,235
Gain on Sale of Subsidiary                                                           18,766                 4,035

</TABLE>
<TABLE>
                                                                                                     1999

                                                                                   Temporary                 Tax
                                                                                  Difference               Effect

<S>                                                                              <C>                    <C>
Depreciation                                                                     $(179,190)             $(56,440)
Allowance for Doubtful Accounts                                                      73,335                20,530
Gain on Sale of Subsidiary                                                           18,766                 4,035

</TABLE>



                                       16
<PAGE>
                       ABLE ENERGY, INC. AND SUBSIDIARIES

          NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENT (Cont'd)

                    DECEMBER 31, 1999 AND SEPTEMBER 30, 2000



Note 8         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 is under contract with Unocal to purchase #2 oil in
     the months of November and December 2000, and January, February and March
     2001. The total is 26,000 barrels or 1,092,000 gallons. The average price
     which has been preset is $0.926 per gallon, or $1,011,654.

          In accordance with the agreement on the purchase of the property on
     Route 46, Rockaway, New Jersey by Able Energy Terminal, LLC, the purchaser
     shall commence after closing, the investigation and remediation of the
     property and any hazardous substances emanating from the property in order
     to obtain a No Further Action letter from the New Jersey Department of
     Environmental Protection (NJDEP). The purchaser will also pursue recovery
     of all costs and damages related thereto in the lawsuit by the seller
     against a former tenant on the purchased property. Purchaser will assume
     all responsibility and direction for the lawsuit, subject to the sharing of
     any recoveries from the lawsuit with the seller, 50-50. The seller by
     reduction of its mortgage will pay costs related to the above up to
     $250,000 (see Note 6). In the opinion of management, the Company will not
     sustain costs in this matter which will have a material adverse effect on
     its financial condition.

          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, 1998 and December 31, 1999.

Note 9         Operating Lease

          Able Energy Terminal, LLC, has acquired the following lease on the
     property it purchased on Route 46 in Rockaway, New Jersey.

          The lease with Able Oil Company, a wholly owned subsidiary of Able
     Energy, Inc., has an expiration date of July 31, 2004. The lease provides
     for a monthly payment of $1,200 plus a one cent per gallon through put, as
     per a monthly rack meter reading.

          Estimated future rents are $14,400 per year, plus the one cent per
     gallon through put charges per the monthly rack meter readings.


                                       17
<PAGE>
                       ABLE ENERGY, INC. AND SUBSIDIARIES

          NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENT (Cont'd)

                    DECEMBER 31, 1999 AND SEPTEMBER 30, 2000


Note 9         Operating Lease (cont'd)

          The Company leased 9,800 square feet in the Rockaway Business Centre
     on Green Pond Road in Rockaway, New Jersey. The facility will be used as a
     call center and will combine the administrative operations in New Jersey in
     one facility. The lease has a term of five (5) years from August 1, 2000
     through July 31, 2005. The rent for the first year is $7,145,83 per month
     and the second through fifth year is $7,431.67 per month, plus 20.5% of the
     building's annual operational costs and it's portion of utilities. The
     monthly rent, including Common Area Charges, as of October 2000 is $9,084
     per month. The lease does not contain any option for renewal. The rent
     expense was $11,003 through September 30, 2000. The estimated future rents
     are as follows:
<TABLE>
<CAPTION>

                                    Year Ended December 31,
<S>                                         <C>                                         <C>
                                            2000                                        $ 27,250
                                            2001                                         110,000
                                            2002                                         113,000
                                            2003-2005                                    290,000
                                                                                         -------
                                                     Total                              $540,250
                                                                                        ========
</TABLE>

          The Company leased an additional facility on Route 46 in Rockaway, New
     Jersey. The lease has a term of one year from September 1, 1999 to August
     31, 2000. The rent is $1,300 per month, $15,600 for the year, plus 10% of
     the increase in real estate taxes over the base year, 1999. The Company has
     the option to renew for five additional one-year terms. The renewals are at
     an increase of $100 per month during each renewal term. The estimated
     future rent upon one year renewal is $16,800. The Company vacated this
     leased facility in October 2000.

Note 10          Franchising

          The Company has begun operations to sell franchises permitting the
     operation of a franchised business specializing in residential and
     commercial sales of fuel oil, diesel fuel, gasoline, propane and related
     services. The Company will provide training, advertising and use of Able
     credit for the purchase of product, among other things, as specified in the
     Agreement. The franchisee has an option to sell the business back to the
     Company after two (2) years of operations for a price calculated per the
     Agreement. The Company has signed its first franchise agreement in
     September 2000. The franchisee has paid the company the following:

  1. A non-refundable franchise fee of $25,000 has been recorded as Other
     income. Operations began in September 2000.

                                       18
<PAGE>
                       ABLE ENERGY, INC. AND SUBSIDIARIES

          NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENT (Cont'd)

                    DECEMBER 31, 1999 AND SEPTEMBER 30, 2000


Note 10          Franchising (cont'd)

  2. An advertising deposit of $15,000 and a $5,000 escrow deposit. This
     $20,000 is shown as an Escrow Deposit liability. The $15,000 will be
     charged to advertising as the funds are used.


Note 11          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 spilt by
     the Company and its public offering of 1,000,000 shares.






























                                       19
<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, 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 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 September 30, 2000, compared to the three months
     ended September 30, 1999.

          The Company reported revenues of $5,872,015 for the three months ended
     September 30, 2000, an increase of 73.60% over the prior year's revenues
     for the same three month period. This increase can be attributed to
     increased customer base, increased sales as a result of cooler weather in
     the Northeast during this quarter and an increase in the price of products
     sold by the Company above the price of the prior year. The acquisition of B
     & B Fuels increased sales for the quarter by approximately $267,000.
     Increased revenues can also be attributable to increased marketing efforts.

          Gross profit margin, as a percentage of revenues, for the three months
     ended September 30, 2000, increased 8.87%, from 1.41% one year ago to
     10.28% in 2000. The increase in margin is primarily a result of increased
     customer base of home heating oil customer and better control of cost/price
     relationship.

          Selling, General and Administrative expenses increased by $371,146, or
     48.74%, from $761,476 for the three months ended September 30, 1999 to
     $1,132,622 for the three months ended September 30, 2000. This increase was
     attributable to the operations of two subsidiaries formed in August 1999 of
     approximately $71,000, start up costs of a new subsidiary, Price Energy.Com
     of salaries and computer consulting costs of approximately $101,000, and an
     increase in insurance, advertising, professional fees, labor costs, and
     benefits.

          Operating loss for the three months ended September 30, 2000 was
     $700,241, a decrease of 16.50% over the Company's operating loss of
     $838,565 for the three months ended September
<PAGE>
     30, 1999. This operating loss was attributable to the Company's
     marketing program, additional staff, and exploring and start-up of a new
     venture which increased professional fees and other costs.

          The unusual loss for the period was exacerbated by a number of events
     and investments which should lead to longer term growth and efficiency of
     operations for the Company. The Company centralized its administrative
     operations in a new leased call center in Rockaway, New Jersey, in
     preparation for its busy fall and winter months. The Company invested in a
     new subsidiary Price Energy. Com for energy sales via the internet. The
     Company has invested in higher advertising and wireless technology.

          Net loss for the three months ended September 30, 2000 decreased by
     $93,780, or 19.90%, to $377,623 as compared to the same period for the
     previous year loss of $471,403. This net loss was the result of greater
     marketing costs, sales promotion, higher staff salaries and start up costs
     of a new subsidiary.

          Nine months ended September 30, 2000, compared to the nine months
     ended September 30, 1999.

          The Company reported revenues of $21,838,999 for the nine months ended
     September 30, 2000, an increase of 68.77% over the prior year's revenues of
     $12,940,203 for the same nine month period. This increase can be attributed
     to increased sales as a result of cooler weather in the Northeast during
     the March quarter and April and an increase in the price of products sold
     by the Company above the price of the prior year. The acquisition of B & B
     Fuels increased sales for the nine months by approximately $1,000,000.
     Increased revenues can also be attributable to increased marketing efforts.

          Gross profit margin, as a percentage of revenues, for the nine months
     ended September 30, 2000, decreased to 16.15% of net revenues, representing
     an decrease of 1.62% over a margin of 17.77% for the same nine month period
     one year ago. This reduction in margin is primarily a result of unstable
     retail prices for home heating oil caused by a large raise in product cost.

          Selling, General and Administrative expenses increased by $1,027,336,
     or 48.91%, from $2,100,476 for the nine months ended September 30, 1999 to
     $3,127,812 for the nine months ended September 30, 2000. These expenses can
     be attributable to an increase in the size of general operations of the
     Company, including the operations of two subsidiaries formed in August
     1999, start-up costs of a new subsidiary, Price Energy.Com, salaries and
     computer consulting costs of approximately $102,000, and an increase in
     marketing, insurance, wages and benefits.

          Operating Loss for the nine months ended September 30, 2000 was $
     109,565, in comparison to the Company's operating loss of $141,195 for the
     nine months ended September 30, 1999. This operating loss was attributable
     to lower gross margin caused by unstable prices for home heating oil,
     start-up of a new venture, increased insurance, labor costs and benefits.

          Net Loss for the nine months ended September 30, 2000 was $35,468 in
     comparison to a loss of $74,929 for the same period in previous year. This
     net loss was the result of a reduction in margin primarily a result of
     unstable retail prices for home heating oil, additional marketing, start-up
     of a new venture and increased operating expenses with concentration on
     growth.

          Depreciation and amortization expense for the nine months ended
     September 30, 2000 was $509,628, an increase of $169,398 for the nine
     months ended September 30, 1999.
<PAGE>
          Amortization relates to the amortization of customer lists, being
     amortized over 15 years and two Non-Compete Agreements amortized over 5
     years, per the agreements. The increased depreciation relates to the
     purchase of additional trucks and other equipment in 1999, and the
     acquisition of equipment on the B & B Fuels purchase and the purchase of
     the Company's facility in Rockaway, New Jersey. Both acquisitions took
     place in August 1999.

          Interest expense for the nine months ended September 30, 2000, was
     $143,265 as compared to $130,364 for the nine months ended September 30,
     1999. This increase was due to debt incurred in connection with the
     acquisition of B & B Fuels (New York), the property in Rockaway, New
     Jersey, and additional trucks and other equipment.

          Liquidity and Capital Resources

          For the nine month period ended September 30, 2000, compared to the
     nine months ended September 30, 1999, the Company's cash position decreased
     by $1,363,903 from $4,072,463 to $2,708,560. For the nine months ended
     September 30, 1999, cash of $5,867,100 was generated from the Company's
     initial public offering. For the nine months ended September 30, 2000, cash
     was generated through operations, net income and collections of customer
     advance payments.

          The Company has the following Agreement with its primary financial
     institution. The company's credit line was increased by $250,000 to
     $750,000 at 1/2% below prime, the outstanding balance is $711,652 at
     September 30, 2000. The Company has a three year term loan of $675,000 with
     a balance of approximately $170,000 at September 30, 2000. The Agreement
     with the bank has a current expiration date of June 30, 2001.

          The Company received net proceeds from its initial public offering in
     an amount of $5,867,100. The Company believes that the net proceeds of this
     offering, coupled with the bank agreements and income from operations, will
     fulfill the Company's working capital needs for the next 9 months. As the
     Company continues to grow, investigate new ventures, and strengthens its
     infrastructure to position itself for additional growth, 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 products including propane gas
     and fuel oil. However, the seasonality of the Company's business is offset,
     in part, by an increase in revenues from the sale of HVAC products and
     services, 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.



<PAGE>
PART II - OTHER INFORMATION

ITEM 1.           Legal Proceedings

                  None.

ITEM 2.           Changes in Securities and Use of Proceeds

                  None.

ITEM 3.           Defaults Upon Senior Securities

                  None.

ITEM 4.           Submission of Matters to a Vote of Securityholders

                  None.

ITEM 5.           Other Events

                  None.

ITEM 6.           Exhibits and Reports on Form 8-K

                  (a) Exhibits

                           Exhibit 27: Financial Data Schedule

                  (b) Reports on Form 8-K

                           The  Company  did not  file any  reports  on Form 8-K
                           during the three month  period  ended  September  30,
                           2000.





<PAGE>
                                   SIGNATURES


     Pursuant to the Requirements of the Securities and Exchange Act of 1934,
the registrant has duly caused the project to be signed on its behalf by the
undersigned thereto duly authorized


                                                        ABLE ENERGY, INC.



November 14, 2000                              By: /s/Timothy Harrington
                                                      Timothy Harrington
                                                      Chief Executive Officer