<PAGE>   1
                                    FORM 10-Q
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

             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 0-18691

                            NORTH COAST ENERGY, INC.
             (Exact name of Registrant as specified in its charter)

                      DELAWARE                           34-1594000
              (State of Incorporation)                 I.R.S. (Employer
                                                      Identification No.)

                 1993 CASE PARKWAY
                   TWINSBURG, OHIO                         44087-2343
      (Address of principal executive offices)              (Zip Code)

Registrant's telephone number, including area code:  (330) 425-2330

Indicate by check mark whether the 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 the registrant
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.

                                   Yes  X        No
                                      -----         ----

                APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                  PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12, 13, or 15 (d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court.

                                 Yes ___ No ___

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer's classes of
Common Stock, as of the latest practicable date.

                Class                       Outstanding at November 8, 2000
     ----------------------------           -------------------------------
     Common Stock, $.01 par value                       15,204,749


<PAGE>   2




                    NORTH COAST ENERGY, INC. AND SUBSIDIARIES


<TABLE>
<CAPTION>
                                                                                                     Page No.
                                                                                                     -------
<S>                                                                                                  <C>
PART I  - FINANCIAL INFORMATION

Consolidated Balance Sheets -
 September 30, 2000 (Unaudited) and March 31, 2000 (Audited)                                              3

Unaudited Consolidated Statements of Operations -
     For the Three and Six Months Ended September 30, 2000 and 1999                                       5

Unaudited Consolidated Statements of Cash Flows -
     For the Six Months Ended September 30, 2000 and 1999                                                 6

Unaudited Notes to Consolidated Financial Statements                                                      8

Management's Discussion and Analysis of Financial Condition and Results of Operations                    16


PART II - OTHER INFORMATION                                                                              25
</TABLE>
<PAGE>   3

                    NORTH COAST ENERGY, INC AND SUBSIDIARIES

                           CONSOLIDATED BALANCE SHEETS

                      September 30, 2000 and March 31, 2000
--------------------------------------------------------------------------------

                                  (Unaudited)

<TABLE>
<CAPTION>
ASSETS                                                   September 30,    March 31,
------                                                        2000           2000
                                                         ------------   ------------
<S>                                                      <C>            <C>
CURRENT ASSETS
    Cash and equivalents                                 $ 15,121,329   $  6,206,686
    Accounts receivable:
        Trade, net                                          5,163,596      7,202,492
        Affiliates                                            182,900        205,775
    Inventories                                               776,117        450,718
    Other, net                                                301,468        297,720
                                                         ------------   ------------
            Total current assets                           21,545,410     14,363,391

PROPERTY AND EQUIPMENT, at cost
    Land                                                      222,822        222,822
    Oil and gas properties (successful efforts)           103,175,424    102,177,522
    Pipelines                                              15,924,864     15,798,806
    Vehicles                                                1,982,775      1,970,687
    Furniture and fixtures                                    788,419        627,414
    Building and improvements                               1,858,470      1,845,457
                                                         ------------   ------------
                                                          123,952,774    122,642,708
Less accumulated depreciation, depletion, amortization
    and impairment                                         21,945,978     17,879,417
                                                         ------------   ------------
                                                          102,006,796    104,763,291

OTHER ASSETS, net                                           3,744,792      4,491,322
                                                         ------------   ------------

                                                         $127,296,998   $123,618,004
                                                         ============   ============
</TABLE>

  The accompanying notes are an integral part of these consolidated financial
                                  statements.

                                        3


<PAGE>   4


                    NORTH COAST ENERGY, INC AND SUBSIDIARIES

                           CONSOLIDATED BALANCE SHEETS

                      September 30, 2000 and March 31, 2000
--------------------------------------------------------------------------------

                                   (Unaudited)

<TABLE>
<CAPTION>
LIABILITIES AND STOCKHOLDERS' EQUITY                                  September 30,       March 31,
------------------------------------                                      2000             2000
                                                                      -------------    -------------
<S>                                                                   <C>              <C>
CURRENT LIABILITIES
    Current portion of long-term debt                                 $     127,300    $   3,124,600
    Accounts payable                                                      6,457,344        4,963,160
    Accrued expenses                                                        365,321          357,716
    Billings in excess of costs on uncompleted contracts                       --            568,056
                                                                      -------------    -------------
        Total current liabilities                                         6,949,965        9,013,532

LONG-TERM DEBT, net of current portion
    Affiliates                                                           10,000,000       72,500,000
    Non-affiliates                                                       60,564,294       17,622,181
                                                                      -------------    -------------
                                                                         70,564,294       90,122,181

ACCRUED PLUGGING LIABILITY                                                  722,567          724,535

DEFERRED INCOME TAXES                                                       366,246          366,200

STOCKHOLDERS' EQUITY:
    Series A, 6% Noncumulative Convertible
        Preferred stock, par value $.01 per share;
        563,270 shares authorized; 73,096 issued
        and outstanding (aggregate liquidation
        value of $730,960)                                                      731              731
    Series B, Cumulative Convertible Preferred stock, par value
        $.01 per share; 625,000 shares authorized, 232,864 issued
        and outstanding (aggregate liquidation value $2,328,640
        plus dividends in arrears of $326,010)                                2,329            2,329
    Undesignated Serial Preferred stock, par value $.01 per share;
        811,730 shares authorized; none issued and outstanding                 --               --
    Common Stock, par value $.01 per share; 60,000,000 shares
        authorized; 15,199,706 and 5,599,706 issued and outstanding         151,997           55,997
    Additional paid-in capital                                           50,178,556       26,274,574
    Retained deficit                                                     (1,639,687)      (2,942,075)
                                                                      -------------    -------------
            Total stockholders' equity                                   48,693,926       23,391,556
                                                                      -------------    -------------

                                                                      $ 127,296,998    $ 123,618,004
                                                                      =============    =============
</TABLE>

   The accompanying notes are an integral part of these consolidated financial
                                   statements.

                                        4


<PAGE>   5


                    NORTH COAST ENERGY, INC. and SUBSIDIARIES

                      CONSOLIDATED STATEMENT OF OPERATIONS

                For the periods ended September 30, 2000 and 1999
--------------------------------------------------------------------------------
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                             Three Months Ended                Six Months Ended
                                                         ----------------------------    ----------------------------
                                                             2000            1999            2000            1999
                                                         ------------    ------------    ------------    ------------
<S>                                                      <C>             <C>             <C>             <C>
REVENUE
      Oil and gas production                             $  7,576,947    $  1,715,090    $ 14,145,032    $  3,226,956
      Drilling revenues                                          --              --           671,840            --
      Transportation fees                                     896,081          94,030       1,526,100         242,298
      Gas marketing revenues                                  618,987         347,290       1,136,585         601,562
      Administrative and agency fees                          151,521         159,089         308,497         316,124
      Well operating services                                 494,721         224,045         958,220         472,812
      Other                                                   419,197          13,542         740,972         107,803
                                                         ------------    ------------    ------------    ------------
                                                           10,157,454       2,553,086      19,487,246       4,967,555
  COSTS AND EXPENSES
      Oil and gas production expenses                       2,833,243         666,948       5,015,495       1,212,781
      Drilling costs                                          322,559         135,777         975,018         240,162
      Transportation costs                                    209,400          74,100         399,100         134,800
      Gas marketing costs                                     555,354         305,980       1,062,809         542,878
      Well operating costs                                    266,070         113,025         742,500         368,912
      Other                                                   126,889          22,057         178,508          90,667
      General and administrative expenses                     744,688         571,015       1,480,120       1,374,990
      Depreciation, depletion, amortization,
       impairment and other                                 2,520,261         475,054       4,659,561         955,386
                                                         ------------    ------------    ------------    ------------
                                                            7,578,464       2,363,956      14,513,111       4,920,576
                                                         ------------    ------------    ------------    ------------

  INCOME FROM OPERATIONS                                    2,578,990         189,130       4,974,135          46,979

  OTHER INCOME (EXPENSE)
      Interest income                                         199,693          42,215         287,120          59,404
      Other                                                    21,789           1,007          22,350           1,568
      Interest expense                                     (1,438,357)       (477,834)     (3,515,386)       (914,292)
                                                         ------------    ------------    ------------    ------------
                                                           (1,216,875)       (434,612)     (3,205,916)       (853,320)
                                                         ------------    ------------    ------------    ------------

  INCOME (LOSS) BEFORE PROVISION
      FOR INCOME TAXES                                      1,362,115        (245,482)      1,768,219        (806,341)

  PROVISION FOR INCOME TAXES                                  349,400            --           349,400            --
                                                         ------------    ------------    ------------    ------------

  NET INCOME (LOSS)                                      $  1,012,715    $   (245,482)   $  1,418,819    $   (806,341)
                                                         ============    ============    ============    ============

  NET INCOME (LOSS) APPLICABLE TO COMMON STOCK (after
      dividends on Cumulative Preferred Stock of
      $58,216 for the three months ended September 30,
      2000 and 1999 and $116,432 for the six months
      ended September 30, 2000 and 1999                  $    954,499    $   (303,698)   $  1,302,387    $   (922,773)
                                                         ============    ============    ============    ============

  NET INCOME (LOSS) PER SHARE
  (basic and diluted)                                    $       0.06    $      (0.07)   $       0.10    $      (0.20)
                                                         ============    ============    ============    ============
</TABLE>


   The accompanying notes are an integral part of these consolidated financial
                                  statements.

                                        5


<PAGE>   6


                    NORTH COAST ENERGY, INC. AND SUBSIDIARIES

                      CONSOLIDATED STATEMENT OF CASH FLOWS

              FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
--------------------------------------------------------------------------------

                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                                2000            1999
                                                                                           ------------    ------------
<S>                                                                                        <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES
    Net income (loss)                                                                      $  1,418,819    $   (806,341)
        Adjustments to reconcile net income to net cash
            provided by operating activities:
                 Depreciation, depletion, amortization, impairment
                     and other                                                                4,659,561         955,386
                 (Gain) loss on sale of property and equipment                                     --              (352)
                 Change in:
                                Accounts receivable                                           2,023,771          (3,006)
                                Inventories and other current assets                           (306,548)       (173,080)
                                Other assets, net                                               203,930         152,928
                                Accounts payable                                              1,494,186        (385,891)
                                Other liabilities                                                  --          (132,760)
                                Accrued expenses                                                  5,683         (18,341)
                                Billings in excess of costs on
                                     uncompleted contracts                                     (568,056)           --
                                                                                           ------------    ------------
                                         Total adjustments                                    7,512,527         394,884
                                                                                           ------------    ------------
                                         Net cash provided (used) by operating activities  $  8,931,346    $   (411,457)

CASH FLOWS FROM INVESTING ACTIVITIES
    Purchases of property and equipment                                                      (1,345,067)       (703,509)
                                                                                           ------------    ------------
                                         Net cash used by investing activities             $ (1,345,067)   $   (703,509)
</TABLE>

   The accompanying notes are an integral part of these consolidated financial
                                   statements.

                                        6


<PAGE>   7


                    NORTH COAST ENERGY, INC. AND SUBSIDIARIES

                      CONSOLIDATED STATEMENT OF CASH FLOWS

              For the six months ended September 30, 2000 and 1999
--------------------------------------------------------------------------------

                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                      2000            1999
                                                                 ------------    ------------
<S>                                                              <C>             <C>
CASH FLOWS FROM FINANCING ACTIVITIES
    Borrowings under revolving credit facility                      3,000,000       2,000,000
    Borrowings under credit agreement                              60,000,000            --
    Repayment of borrowings under revolving credit facility       (23,000,000)       (900,000)
    Payments on long-term debt                                    (62,555,187)        (55,086)
    Proceeds from issuance of long-term debt                       23,999,983            --
    Net proceeds from issuance of common stock                           --         4,385,548
    Distributions and dividends                                      (116,432)       (116,432)
                                                                 ------------    ------------
                 Net cash provided by financing activities       $  1,328,364    $  5,314,030

INCREASE IN CASH AND EQUIVALENTS                                    8,914,643       4,199,064

CASH AND EQUIVALENTS AT BEGINNING OF YEAR                           6,206,686       1,956,617
                                                                 ------------    ------------

CASH AND EQUIVALENTS AT END OF PERIOD                            $ 15,121,329    $  6,155,681
                                                                 ============    ============

Supplemental disclosures of cash flow
    information:
      Cash paid during the period for:

        Interest                                                 $  3,280,936    $    913,400

Supplemental disclosures of noncash investing
    and financing activities:

        Long-term debt incurred for the purpose of property
            and equipment                                                --      $     95,691
        Accounts payable incurred for the purchase of property
            and equipment                                                --      $  3,500,000
        Accounts payable from interest on long-term debt         $    234,450    $    123,100
</TABLE>

   The accompanying notes are an integral part of these consolidated financial
                                  statements.

                                        7


<PAGE>   8

                    NORTH COAST ENERGY, INC. AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                   (Unaudited)

Note 1.  Summary of Accounting Policies

         A. General

         The consolidated financial statements included herein, have been
         prepared by North Coast Energy, Inc. without audit. In the opinion of
         management, all adjustments (which include only normal recurring
         adjustments) necessary to present fairly the financial position have
         been made.

         Information and footnote disclosures normally included in financial
         statements prepared in accordance with generally accepted accounting
         principles have been condensed or omitted. It is suggested that these
         financial statements be read in conjunction with the financial
         statements and notes thereto which are incorporated in the Company's
         Annual Report on Form 10-K/A for the fiscal year ended March 31, 2000.

         The results of the operations for the interim periods may not
         necessarily be indicative of the results to be expected for the full
         year. In addition, the preparation of these financial statements in
         conformity with generally accepted accounting principles requires
         management to make estimates and assumptions that effect the reported
         amounts of assets and liabilities at the date of the consolidated
         financial statements and reported amounts of revenues and expenses
         during the reporting period. Actual results could differ from those
         estimates.

         B. Principles of Consolidation

         The consolidated financial statements include the accounts of North
         Coast Energy, Inc. and its wholly owned subsidiaries (the Company),
         Peake Energy, Inc. (Peake), North Coast Operating Company (NCOC), and
         NCE Securities, Inc. (NCE Securities). In addition, the Company's
         investments in oil and gas drilling partnerships, which are accounted
         for under the proportional consolidation method, are reflected in the
         accompanying financial statements. The Company's ownership of revenues
         in these drilling partnerships are as follows:

<TABLE>
<CAPTION>
<S>                                                                                                       <C>
         Capital Drilling Fund 1986-1 Limited Partnership                                                 13.2%
         North Coast Energy/Capital 1987-1 Appalachian Drilling Program Limited Partnership               54.2%
         North Coast Energy/Capital 1987-2 Appalachian Drilling Program Limited Partnership               48.4%
         North Coast Energy/Capital 1988-1 Appalachian Drilling Program Limited Partnership               44.4%
         North Coast Energy/Capital 1988-2 Appalachian Drilling Program Limited Partnership               62.6%
         North Coast Energy 1989 Appalachian Drilling Program Limited Partnership                         45.0%
         North Coast Energy 1990-1 Appalachian Drilling Program Limited Partnership                       49.5%
         North Coast Energy 1990-2 Appalachian Drilling Program Limited Partnership                       44.3%
         North Coast Energy 1990-3 Appalachian Drilling Program Limited Partnership                       43.0%
         North Coast Energy 1991-1 Appalachian Drilling Program Limited Partnership                       39.0%
         North Coast Energy 1991-2 Appalachian Drilling Program Limited Partnership                       33.9%
         North Coast Energy 1991-3 Appalachian Drilling Program Limited Partnership                       41.8%
         North Coast Energy 1992-1 Appalachian Drilling Program Limited Partnership                       29.7%
         North Coast Energy 1992-2 Appalachian Drilling Program Limited Partnership                       38.6%
</TABLE>

                                       8

<PAGE>   9
                    NORTH COAST ENERGY, INC. AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                   (Unaudited)


Note 1.     Summary of Accounting Policies (Continued)

<TABLE>
<CAPTION>
<S>                                                                                                       <C>
         North Coast Energy 1992-3 Appalachian Drilling Program Limited Partnership                    58.6%
         North Coast Energy 1993-1 Appalachian Drilling Program Limited Partnership                    43.8%
         North Coast Energy 1993-2 Appalachian Drilling Program Limited Partnership                    38.2%
         North Coast Energy 1993-3 Appalachian Drilling Program Limited Partnership                    39.0%
         North Coast Energy 1994-1 Appalachian Drilling Program Limited Partnership                    39.3%
         North Coast Energy 1994-2 Appalachian Drilling Program Limited Partnership                    31.2%
         North Coast Energy 1994-3 Appalachian Drilling Program Limited Partnership                    35.2%
         North Coast Energy 1995-1 Appalachian Drilling Program Limited Partnership                    20.0%
         North Coast Energy 1995-2 Appalachian Drilling Program Limited Partnership                    20.8%
         North Coast Energy 1996-1 Appalachian Drilling Program Limited Partnership                    20.0%
         North Coast Energy 1996-2 Appalachian Drilling Program Limited Partnership                    20.0%
         North Coast Energy 1997-1 Appalachian Drilling Program Limited Partnership                    38.2%
         North Coast Energy 1997-2 Appalachian Drilling Program Limited Partnership                    22.1%
         North Coast Energy 1998-1 Appalachian Drilling Program Limited Partnership                    20.1%
         North Coast Energy 1999-1 Appalachian Drilling Program Limited Partnership                    20.9%
</TABLE>

         All significant intercompany accounts and transactions have been
         eliminated.

         C.       Per Share Amounts

         The average number of outstanding shares used in computing basic
         (diluted) net income per share was 15,199,706 (15,233,330) and
         4,551,111 (4,585,080) for the three months ended September 30, 2000 and
         1999, respectively, and 13,406,299 (13,439,924) and 4,559,041
         (4,593,041) for the six months ended September 30, 2000 and 1999,
         respectively.

         D.       Reclassifications

         Certain reclassifications were made to prior period financial statement
         presentations to conform with current period presentations.

Note 2. Acquisitions

       On March 17, 2000, the Company acquired Peake Energy, Inc. ("Peake")
       through a purchase of all of Peake's outstanding capital stock (the
       "Acquisition") from Belden & Blake Corporation ("BBC"). Peake owns oil
       and gas properties consisting of approximately 1,900 wells and in excess
       of 900 miles of natural gas gathering lines in West Virginia, Kentucky
       and Virginia.

       The Acquisition was consummated pursuant to a Stock Purchase Agreement
       dated March 17, 2000 ("Closing Date") between the Company and BBC, with
       an effective date of January 1, 2000 ("Effective Date").

       The purchase price for the Peake stock was $72.5 million subject to
       various adjustments. The cash paid in connection with the Acquisition was
       obtained from loans from NUON International

                                       9

<PAGE>   10
                    NORTH COAST ENERGY, INC. AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                   (Unaudited)

       Note 2. Acquisitions (Continued)

       Projects B.V. ("NUON"), the Company's majority stockholder (see Note 4).
       The purchase price was determined through arm's-length negotiation
       between the Company and BBC and was based upon the Company's valuation of
       Peake's business and assets. There were no material relationships between
       the Company, its officers, directors or affiliates, and BBC or its
       officers, directors and affiliates. The estimated final acquisition cost
       (which includes $69.6 million for the stock following the closing
       adjustment, intervening transactions between the Effective Date and
       Closing Date and direct acquisition costs of $174,800 incurred by the
       Company) was allocated to the net assets acquired March 17, 2000. The
       following summary presents the three and six months ended September 30,
       2000 and 1999 unaudited pro forma consolidated results of operations as
       if the acquisition had occurred on the first day of each period and
       includes adjustments for the issuance of 9.6 million common shares to
       NUON for conversion of the $24 million promissory note, estimated amounts
       of depreciation, depletion, and amortization of fixed assets acquired
       based on their estimated fair values, and increased interest expense and
       income taxes. The pro forma amounts include Peake's operation based on
       Peake's year ended December 31, 1999. The pro forma results are for
       illustrative purposes only and do not purport to be indicative of the
       actual results which would have occurred had the transaction been
       consummated as of an earlier date, nor are they indicative of results of
       operations which may occur in the future. These results do not reflect
       any synergies that may or may not be achieved.


                                             Unaudited Pro Forma
                                       For the period ended September 30,
                                    Three Months Ended     Six Months Ended
                                      2000       1999       2000       1999
                                    --------   --------   --------   --------
                                (Dollars in Thousands, Except Per Share Amounts)

REVENUES                            $ 10,157   $  6,100   $ 19,487   $ 12,062
                                    ========   ========   ========   ========

NET INCOME                             1,013        156      1,419         (3)
                                    ========   ========   ========   ========

NET INCOME, applicable to
    common stock (after Preferred
    stock dividends of $58,216
    and $116,432)                        954         98      1,302       (119)
                                    ========   ========   ========   ========

NET INCOME PER SHARE
(basic and diluted)                 $   0.06   $   0.02   $   0.10   $  (0.01)
                                    ========   ========   ========   ========

       Effective September 11, 1999, the Company acquired, for $3.5 million, the
       working interest and operations in approximately 220 producing wells,
       proved undeveloped locations and gas gathering systems from Environmental
       Exploration of North Canton, Ohio.

                                       10
<PAGE>   11
                    NORTH COAST ENERGY, INC. AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                   (Unaudited)

Note 3.  Billings in Excess of Costs on Uncompleted Contracts

       Billings in excess of costs on uncompleted contracts consist of the
following:

                                          September 30,     March 31,
                                               2000            2000
                                          -------------   -------------
Billings on uncompleted contracts         $        --     $     671,840
Costs incurred on uncompleted contracts            --           103,784
                                          -------------   -------------
                                          $        --     $     568,056
                                          =============   =============

       At September 30, 2000 all billing contracts were complete.

Note 4. Long-Term Debt

         Long-term debt consists of the following:

<TABLE>
<CAPTION>
                                                            September 30,     March 31,
                                                                2000            2000
                                                            -------------   -------------

<S>                                                         <C>             <C>
NUON Non-Negotiable Subordinated Promissory
     Note due February 28, 2015; interest at LIBOR
     rate plus 2.30%                                        $  10,000,000   $  48,500,000

NUON Non-Negotiable Subordinated Convertible
     Promissory Note due February 28, 2015; interest
     at LIBOR rate plus 2.30% convertible at $2.50 share             --        24,000,000

Revolving credit note payable-Bank interest at a               60,000,000            --
     varying rate based on LIBOR plus 1.25% to
     2.00% (See note below)

Revolving credit note payable converted to term loan-
     Bank interest rate of LIBOR plus 2.30%                          --        20,000,000

Mortgage note payable to a bank, secured by land
     and a building, requiring monthly payments of
     approximately $5,248 (including interest at 8.58%)
     through May 2001.  Thereafter, the balance of the
     note will be amortized over a ten-year period, at
     an interest rate to be renegotiated every five years         454,603         464,818

Various installment and mortgage notes payable                    236,991         281,963
                                                            -------------   -------------
                                                               70,691,594      93,246,781
Less current portion                                              127,300       3,124,600
                                                            -------------   -------------

                                                            $  70,564,294   $  90,122,181
                                                            =============   =============
</TABLE>

                                       11

<PAGE>   12


                    NORTH COAST ENERGY, INC. AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                   (Unaudited)

Note 4. Long-term Debt (Continued)

         Effective September 26, 2000, the Company entered into a Credit
         Agreement (the "Agreement") with Union Bank of California, NA ("UBOC")
         as Agent and certain other financial institutions as lenders
         (collectively "UBOC") to replace the $25 million revolving credit
         facility with ING (U.S.) Capital LLC. ING Capital had indicated to the
         Company that it intended to discontinue lending to the oil and gas
         industry and the commitment period under the facility terminated on
         July 2, 2000. The maturity date for the new facility is September 26,
         2005.

         The Agreement with UBOC provides for an initial borrowing base of $65
         million, which is subject to redetermination by the lenders on a
         semi-annual basis, and a maximum loan amount of $125 million. There is
         also a $5 million sub-limit for letters of credit issued under the
         borrowing base, with outstanding letters of credit under the Agreement
         as of September 30, 2000 of $150,000. Available borrowings under the
         facility as of September 30, 2000 were $5 million. The initial
         borrowing was $60 million with $30 million on a three-month interest
         basis and $30 million on a six month interest basis.

         Amounts outstanding under the senior secured revolving credit facility
         bear interest based upon usage as a percentage of the borrowing base,
         to wit: 0-50% at the UBOC reference rate (RR) or LIBOR plus 1.50%;
         51-75% at the UBOC RR or LIBOR plus 1.75%; 76-100% at the UBOC RR plus
         .25% or LIBOR plus 2.00%, or approximately 8.75% at September 30, 2000
         on the six month borrowing and 8.66% on the amount borrowed for the
         three month period.

         The Agreement required the Company to pay a facility fee on the initial
         borrowing base and at the time of each increase in the borrowing base,
         a commitment or "unused" fee payable quarterly in arrears on the
         unutilized portion of the borrowing base at a rate of .375% per annum,
         and agent fees as established by a separate agreement paid
         semi-annually. The Agreement also contains certain restrictive
         covenants, including working capital, and EBITDA interest coverage and
         fixed charge coverage calculations, as defined. Additionally, the
         Company is restricted from paying cash dividends on any of its common
         stock under the terms of the Agreement.

         The revolving credit facility and the notes are collateralized by a
         perfected first priority mortgage, security interest and assignment of
         production covering at least 80% of the Company's oil and gas
         properties, as well as its receivables, inventory, and equipment.

         On March 17, 2000, in connection with the Peake acquisition, NUON
         loaned $72.5 million to the Company in the form of a $48.5 million
         Non-Negotiable Subordinated Promissory Note and a $24 million
         Non-Negotiable Subordinated Convertible Promissory Note. Interest on
         both notes is payable semi-annually and accrues interest at the six
         month LIBOR plus 2.30%. The principal amount of each note is payable
         on February 28, 2015. Subsequent to year-end (May 2000), NUON
         converted the principal amount of the convertible note to shares of the
         Company's common stock based upon the exchange price of

                                       12

<PAGE>   13

                    NORTH COAST ENERGY, INC. AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                   (Unaudited)

Note 4. Long-term Debt (Continued)

         $2.50 per share. The conversion election was subject to stockholder
         approval. Both notes are (were) subordinated to the Company's senior
         debt. NUON has the right to secure the indebtedness by a lien on
         Peake's assets, subject to the rights of the senior lender. The Company
         agreed to grant NUON registration rights for shares issued in the
         conversion. As a result of the execution of the UBOC Agreement, the
         Company paid $38.5 million of the original $48.5 million Non-Negotiable
         Subordinated Promissory Note plus accrued interest to NUON on September
         29, 2000. There remains $10 million of the loan outstanding, which
         continues to accrue interest per the terms of the Note.

Note 5.  Commitment and Contingencies

         The Company and a commercial bank have issued standby letters of credit
         which provide a guaranteed total amount of $150,000 in lieu of coverage
         provided by insurance for performance and road bond deposits against
         damage.

         On April 30, 1999, Charles M. Lombardy, Jr., the Chief Executive
         Officer of the Company, was paid $370,000 in lieu of continuing his
         employment contract by signing a separation agreement with the Company.
         Additionally, Lombardy received a ten-year warrant to purchase, at
         $5.00 per share, 60,000 shares of the Company's common stock. NUON
         purchased the 107,301 common shares owned by Lombardy for $470,000
         directly reducing the amount of common shares NUON would be required to
         purchase under the NUON Agreement.

Note 6.  Preferred Dividends

         The Company paid a dividend of $58,216 on the Cumulative Convertible
         Series B Preferred Stock for the three months ended September 30, 2000
         and 1999, and $116,432 for the six months ended September 30, 2000 and
         1999. Cumulative dividends in arrears on the Cumulative Convertible
         Series B Preferred Stock are $326,010 at September 30, 2000.

Note 7.  Reverse Stock Split

         On March 17, 1999, the Company's Board of Directors authorized a
         1-for-5 reverse split of its common stock effective June 7, 1999 for
         stockholders of record at the close of business on May 12, 1999. The
         par value of the common stock was not changed. All share and per-share
         amounts in the accompanying consolidated financial statements have been
         restated to give retroactive effect to the reverse stock split.

Note 8.  Sale of Common Stock and Conversion of Note

         In September 1997, the Company sold 1,149,426 shares of its common
         stock for $5 million to NUON, a limited liability company organized
         under the laws of the Netherlands, pursuant to

                                       13
<PAGE>   14

                    NORTH COAST ENERGY, INC. AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                   (Unaudited)

Note 8.  Sale of Common Stock and Conversion of Note (Continued)

         the terms of a stock purchase agreement ("Agreement") by and between
         the Company and NUON dated August 1, 1997. In September 1999 and 1998,
         NUON exercised its option under the Agreement to purchase an additional
         1,042,125 and 1,149,425, shares, respectively, of common stock at $4.35
         per share. Additionally, in September 1999, NUON purchased an
         additional 107,301 shares from the Company's former Chief Executive
         Officer. NUON has no further rights or options to purchase shares under
         the Agreement. On May 4, 2000, NUON converted $24 million of debt
         related to the Peake acquisition to 9.6 million shares of common stock
         of the Company. After the conversion of the debt, NUON owns 85.96% of
         the Company's common stock.

Note 9.  Hedge

         The Company's primary commodity market risk exposure is to changes in
         the pricing applicable to its natural gas and oil production, which is
         normally priced with reference to a defined benchmark, such as natural
         gas or light, sweet crude oil traded on the New York Mercantile
         Exchange (NYMEX) or published indices based on prices of spot gas
         delivered to various regional pipelines. Actual prices received vary
         from the benchmark depending on quality and location differentials.
         Occasionally, the Company enters into financial market transactions
         with creditworthy counterparties, primarily to reduce the risk
         associated with the pricing of a portion of the natural gas that it
         sells. The Company has entered into a financial instrument whereby the
         Company has hedged 5,000 DTH of daily production from May 2000 to
         December 31, 2001, at a price of $3.05/DTH. This "fixed price" hedge
         calls for a monthly settlement such that if the Inside FERC, First of
         the Month, Columbia Gas Transmission Appalachian Index is less than the
         $3.05/DTH, the counterparty pays the Company for the difference times
         the DTH hedged during the month. If the Columbia Gas Transmission
         Appalachian Index is greater than $3.05 DTH, the Company remits to the
         counterparty the excess times the number of DTH. As a result of this
         arrangement, the Company's oil and gas revenues were reduced by
         $636,100 for the quarter ended September 30, 2000 and $889,000 for the
         six months ended September 30, 2000. As part of the financial
         instrument North Coast, on July 24, 2000, supplied a letter of credit
         in the amount of $1.2 million to the purchaser of the Company's
         financial hedge as collateral for its mark to market exposure, and on
         October 6, 2000, an additional letter of credit in the amount of
         $750,000.

Note 10. Accounting Standards

         In June 1998, SFAS 133, "Accounting for Derivative Instruments and
         Hedging Activities," was issued. SFAS 133 establishes accounting and
         reporting standards for derivative instruments and hedging activities.
         SFAS 133, as amended by SFAS 137 and SFAS 138, is effective for all
         fiscal quarters of all fiscal years beginning after June 15, 2000. The
         effect of the adoption of this standard is expected to have no material
         effect on the Company's financial statements.

         In December 1999, the Securities and Exchange Commission issued Staff
         Accounting Bulletin ("SAB") 101, "Revenue Recognition in Financial
         Statements." SAB 101 summarizes the staff's views and provides guidance
         on applying generally accepted accounting principles to revenue

                                       14

<PAGE>   15

                    NORTH COAST ENERGY, INC. AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                   (Unaudited)

Note 10. Accounting Standards (Continued)

       recognition. SAB 101, as amended by SAB 101A and SAB 101B, must be
       adopted no later than the fourth fiscal quarter of fiscal years beginning
       after December 15, 1999. The Company has not determined the effects, if
       any, the SAB may have on its financial statements.

       In March 2000, the Financial Accounting Standards Board (FASB) issued
       Interpretation No. 44, "Accounting for Certain Transactions Involving
       Stock Compensation" an interpretation of APB Opinion No. 25 ("FIN 44").
       This Interpretation clarifies the definition of employee for purposes of
       applying Accounting Principles Board Opinion No. 25, "Accounting for
       Stock Issued to Employees" (APB 25), the criteria for determining whether
       a plan qualifies as a noncompensatory plan, the accounting consequence of
       various modifications to the terms of a previously issued stock option or
       award, and accounting for an exchange of stock compensation awards in a
       business combination. This Interpretation is effective July 1, 2000, but
       certain conclusions in this Interpretation cover specific events that
       occur after December 15, 1998, or January 12, 2000. The Company believes
       that the impact of FIN. 44 will not have a material effect on its
       financial position or results of operations.

                                       15

<PAGE>   16

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

GENERAL

         North Coast Energy, Inc., an affiliate of nv NUON, ("North Coast",
the "Company") a Delaware corporation and its subsidiaries, are engaged in the
acquisition and enhancement of developed producing natural gas and oil
properties and the exploration, development and production of undeveloped
natural gas and oil properties, owned by the Company or in conjunction with
joint ventures or partnerships sponsored and managed by the Company. North Coast
derives its revenues from its own oil and gas production and turnkey drilling,
well operations, gas gathering, transportation and gas marketing services it
provides for third parties.

         The following table is a review of the results of operations of the
Company for the three and six months ended September 30, 2000 and September 30,
1999. All items in the table are calculated as a percentage of total revenues.

<TABLE>
<CAPTION>
                                                  Three Months Ended               Six Months Ended
                                                     September 30,                   September 30,
                                            ----------------------------     ----------------------------
                                                 2000            1999             2000            1999
                                            ------------    ------------     ------------    ------------
<S>                                                   <C>             <C>              <C>             <C>
Revenues:
    Oil and gas production                            75%             67%              73%             65%
    Drilling revenues                                  0               0                3               0
    Transportation fees                                9               4                8               5
    Gas marketing revenues                             6              13                6              12
    Administrative and agency fees                     1               6                1               6
    Well operating services                            5               9                5              10
    Other                                              4               1                4               2
                                            ------------    ------------     ------------    ------------
            Total Revenues                           100%            100%             100%            100%
                                            ============    ============     ============    ============

Costs and expenses:
    Oil and gas production expenses                   28              26%              26%             24%
    Drilling costs                                     3               5                5               5
    Transportation costs                               2               3                2               3
    Gas marketing costs                                6              12                5              11
    Well operating costs                               3               5                4               7
    Other                                              1               1                1               2
    General and administrative expenses                7              22                7              28
    Depreciation, depletion, amortization
         impairment and other                         25              19               24              19
    Interest expense                                  12              17               16              17
                                            ------------    ------------     ------------    ------------
            Total Expenses                            87             110%              90%            116%
                                            ------------    ------------     ------------    ------------

                 Subtotal                             13%            (10)%             10%            (16)%

Provision for income taxes                             3%              0%               3%              0%

                                            ------------    ------------     ------------    ------------
Net Income (Loss)                                     10%            (10)%              7%            (16)%
                                            ============    ============     ============    ============
</TABLE>


                                       16

<PAGE>   17


         The following discussion and analysis reviews the results of operations
and the financial condition for the Company for the six and three months ended
September 30, 2000 and 1999. The review should be read in conjunction with the
financial information presented elsewhere herein.

COMPARISON OF SIX MONTHS ENDED SEPTEMBER 30, 2000 TO SIX MONTHS ENDED SEPTEMBER
30, 1999.

REVENUES

         Oil and gas revenues increased $10,918,076 (338%) to $14,145,032 for
the six months ended September 30, 2000 compared to oil and gas revenues of
$3,226,956 for the six months ended September 30, 1999. The increase in oil and
gas revenues reflects increased production resulting from the Company's
acquisition activities, successful exploration and developmental drilling
program and the higher natural gas and oil prices that the Company has received
for its increasing volumes of natural gas and oil. For the six months ended
September 30, 2000, the Company's production volumes increased 3,130,886 MCFE
(mcf equivalents) to 4,411,937 MCFE compared to 1,281,051 MCFE for the six
months ended September 30, 1999. The Company received an average price of $3.10
and $2.53 per MCF for natural gas sold for the six months ended September 30,
2000 and 1999, respectively, and $27.27 and $14.48 per barrel of oil sold for
the six months ended September 30, 2000 and 1999 respectively.

         During the six months ended September 30, 2000 the Company recognized
drilling revenues of $671,840 resulting from four year end drilling program
wells, which were in progress during the current fiscal year. No drilling
revenues were recognized during the six months ended September 30, 1999. North
Coast anticipates drilling additional wells in connection with its drilling
program to be formed prior to the end of the calendar year. The Company raised
$5,276,230 and $3,515,000 for its fiscal 2000 and 1999 drilling programs
respectively.

         Transportation fees increased $1,283,802 (530%) to $1,526,100 for the
six months ended September 30, 2000, compared to $242,298 for the six months
ended September 30, 1999. This increase results from the additional natural gas
gathering systems acquired in the Peake acquisition.

         Gas marketing revenues increased $535,023 (89%) to $1,136,585 for the
six months ended September 30, 2000, compared to $601,562 for the six months
ended September 30, 1999 primarily as a result of an increase in third party
natural gas marketed by the Company's internal gas marketing department to its
industrial and commercial customers for the six months ended September 30, 2000.

          Administrative and agency fees declined $7,627 (2%) to $308,497
compared to $316,124 for the six months ended September 30, 1999, as a result of
the elimination of the portion of the limited partners' interest that the
Company purchased.

         Well operating revenues increased $485,408 (103%) to $958,220 for the
six months ended September 30, 2000, from $472,812 for the six months ended
September 30, 1999. This increase reflects the increase in the number of wells
the Company receives third party operating revenues from, as a result of both
its drilling programs and its acquisition activities.

         The increase in other revenues of $633,169 (587%) to $740,972 for the
six months ended September 30, 2000, from $107,803 for the six months ended
September 30, 1999, reflects increased revenues from the Company's oilfield
services activities as well as payment for Section 29 Tax Credit monetization
acquired in the Peake acquisition.

                                       17

<PAGE>   18

EXPENSES

         For the six months ended September 30, 2000 oil and gas production
expenses increased $3,802,714 (314%) to $5,015,495 from $1,212,781 for the six
months ended September 30, 1999, reflecting the increased costs associated with
over 2,100 additional wells acquired or drilled by the Company since September
30, 1999.

         Drilling expenses increased $734,856 (306%) to $975,018 for the six
months ended September 30, 2000, from $240,162 for the six months ended
September 30, 1999, primarily as a result of the carry over drilling activities
from the Company's year end drilling program and the additional technical staff
expenses related to North Coast's exploration program.

         Transportation costs increased $264,300 (196%) to $399,100 for the six
months ended September 30, 2000, from $134,800 for the six months ended
September 30, 1999 primarily as a result of the costs associated with the
acquired gathering systems, the increased volumes of natural gas and the
increase in third party gas transported through the Company's gathering lines.

         Gas marketing costs increased $519,931 (96%) to $1,062,809 for the
six months ended September 30, 2000, from $542,878 for the six months ended
September 30, 1999, primarily as a result of the costs associated with the
acquired gathering systems, the increased volumes of natural gas and the
increase in third party gas purchases through the Company's gas marketing
department.

         Well operating costs reflecting the Company's expenses relating to
third party well operating increased $373,588 (101%) to $742,500 for the six
months ended September 30, 2000 from $368,912 for the six months ended September
30, 1999, as a result of the increase in number of wells operated for third
parties through the Company's partnership and acquisition activities.

         Other expenses, primarily reflecting the Company's oilfield services
activities increased $87,841 (97%) to $178,508 for the six months ended
September 30, 2000, from $90,667 for the six months ended September 30, 1999, as
a result of the increased volume of services provided by this activity.

         General and administrative expenses increased $105,130 (8%) to
$1,480,120 for the six months ended September 30, 2000, from $1,374,990 for the
six months ended September 30, 1999, primarily reflecting the additional
administrative staff acquired or hired following the Peake acquisition as well
as the realignment of personnel to profit centers. The prior year's financial
statements have been reclassified to conform with the current period
presentation.

         Depreciation, depletion, amortization, impairment, and other (DD&A)
increased $3,704,175 (388%) to $4,659,561 for the six months ended September 30,
2000, from $955,386 for the six months ended September 30, 1999. This increase
reflects the additional production volumes attributable to the Company's oil and
gas sales as a result of the company's drilling and acquisition activities. In
addition, DD&A also contains $542,000 in amortization of the Section 29 Tax
Credit monetization.

         Net income for the six months ended September 30, 2000, increased
$2,225,160 to $1,418,819 from a loss of $806,341 for the six months ended
September 30. 1999. The increase in net income reflects the increase in
production combined with an increase in natural gas and oil prices as well as
improved financial results from the Company's other streams of income. The
Company's net income attributable to common stock was $1,302,387 ($.10/share)
for the six months ended September 30, 2000, compared to a loss of $922,773
($(.20)/share) for the six months ended September 30, 1999, reflecting dividend
earned on the Company's Series B Cumulative Preferred Stock.

                                       18
<PAGE>   19

COMPARISON OF THE THREE MONTHS ENDED SEPTEMBER 30, 2000 TO THE THREE MONTHS
ENDED SEPTEMBER 30, 1999

REVENUES

         Oil and gas revenues increased $5,861,857 (342%) to $7,576,947 for the
three months ended September 30, 1999, from $1,715,090 the three months ended
September 30, 2000. The increase in oil and gas revenues reflects significantly
higher volumes of gas and oil production attributable to the Company as a result
of its acquisition activities and its successful exploration, development, and
drilling activities combined with higher prices received for both oil and
natural gas. The Company's production volumes for the three months ended
September 30, 2000 were 2,193,100 MCFE (mcf equivalents) of natural gas compared
to 680,647 MCFE for the three months ended September 30, 1999. The Company
received an average price of $3.18 and $2.53 per mcf for natural gas sold for
the three months ended September 30, 2000 and 1999, respectively.

         Transportation fees increased $802,051 (853%) to $896,081 for the three
months ended September 30, 2000, compared to $94,030 for the three months ended
September 30, 1999. This increase results from the additional natural gas
gathering systems acquired in the Peake acquisition.

         Gas marketing revenues increased $271,697 (78%) to $618,987 for the
three months ended September 30, 2000, compared $347,290 for the three months
ended September 30, 1999. This increase results from the additional natural gas
gathering systems acquired in the Peake acquisition along with third party gas
sales to the Company's industrial and commercial customers.

         Revenues from administrative and agency fees were reasonably flat and
the Company did not recognize any drilling revenues.

         Well operating revenues increased $270,676 (121%) to $494,721 for the
three months ended September 30, 2000, compared to $224,045 for the three
months ended September 30, 1999, primarily due to the increased number of wells
operated for third parties resulting from the Company's acquisition activities
and drilling programs.

         Other revenues attributable to North Coast's oilfield services
activities and revenues from Section 29 Tax Credit monetization increased
$405,655 (2,996%) to $419,197 for the three months ended September 30, 2000,
from $13,542 on September 30, 1999. The Company acquired the Section 29 Tax
Credit monetization with the acquisition of Peake Energy.

EXPENSES

         Oil and gas production expenses increased $2,166,295 (325%) to
$2,833,243 for the three months ended September 30, 2000, from $666,948 for the
three months ended September 30, 1999, reflecting the costs associated with over
2,100 newly drilled or acquired wells.

         Drilling costs increased $186,782 (138%) to $322,559 for the three
months ended September 30, 2000, compared to $135,777 at September 30, 1999,
reflecting the growth and costs of additional technical staff for the Company's
exploration activities.

         Transportation costs increased $135,300 (183%) for the three months
ended September 30, 2000, to $209,400 on September 30, 2000, from $74,100 on
September 30, 1999, primarily as a result of the costs associated with the
acquired gas gathering systems, the increased volumes of natural gas and the
increase of third party gas sales through the Company's gas marketing
department.

                                       19
<PAGE>   20

         Gas marketing costs increased $249,374 (82%) for the three months ended
September 30, 2000, from $305,980 to $555,354 primarily as a result of the costs
associated with the acquired gas gathering systems, the increased volumes of
natural gas and the increase of third party gas purchases through the Company's
gas marketing department.

         Well operating costs increased $153,045 (135%) to $266,070 for the
three months ended September 30, 2000, from $113,025 for the three months ended
September 30, 1999, as a result of the increase in number of wells operated for
third parties and the Company's costs associated with these operations.

         Other expenses related primarily to the Company's oilfield services
activities increased $104,832 (475%) to $126,889 for the three months ended
September 30, 2000, from $22,057 for the three months ended September 30, 1999,
as a result of an increase in the amount of services provided.

         General and administrative expenses increased $173,673 (30%) to
$744,688 for the three months ended September 30, 2000, from $571,015 for the
three months ended September 30, 1999.

         The increase in depreciation, depletion, amortization, impairment and
other (DD&A) of $2,045,207 (431%) to $2,520,261 for the three months ended
September 30, 2000, from $475,054 for the three months ended September 30,
1999, reflects increased production volumes resulting from North Coast's
drilling and acquisition activities. In addition, DD&A also contains $274,000
of the Section 29 Tax Credit monetization.

         Net income for the three months ended September 30, 2000 increased
$1,258,197 to $1,012,715 ($.06/share) from a loss of $245,482 ($(.07)/share)
for the three months ended September 30, 1999 primarily reflecting higher
production volumes of natural gas and oil and higher prices received as well as
increases in other areas of income attributable to the Company's drilling and
operating activities.

OTHER EVENTS

         On May 4, 2000, the Company's majority shareholder, NUON, converted $24
million of debt related to the March 17, 2000, Peake acquisition to 9.6 million
shares of common stock of the Company.

         As detailed below, on September 26, 2000, the Company entered into a
$125 million credit agreement with a consortium of banks lead by Union Bank of
California to replace its prior credit facility.

INFLATION AND CHANGES IN PRICES

         Inflation affects the Company's operating expenses as well as interest
rates, which may have an effect on the Company's profitability. Oil and gas
prices have not followed inflation and have fluctuated during recent years as a
result of other forces such as OPEC, economic factors, demand for and supply of
natural gas in the United States and within the Company's regional area of
operation. Oil prices have increased as a result of continued production
constraints by members of OPEC, which has reduced the available supply of crude
oil to world markets. Natural gas prices have also increased during the six
months ended September 30, 2000. These increases in price are attributed to
lower storage supplies following the winter of 1999/2000 and higher natural gas
demand for electric generation in the United States. As a result of these market
forces, the Company received an average

                                       20
<PAGE>   21

price of $27.27 per barrel of oil for the six months ended September 30, 2000,
compared to $14.48 for the six months ended September 30, 1999. The Company
received an average price of $3.10 per Mcf for its natural gas for the six
months ended September 30, 2000, compared to $2.53 for the six months ended
September 30, 1999.

         The Company can not predict the duration of the current strength of oil
and gas markets and prices, as those forces noted above as well as other
variables may change.

         Currently, the Company sells natural gas under fixed price contracts,
on the spot market and through a fixed price commodity hedge. The Company has
positioned itself to take advantage of current market conditions by fixing its
gas contracts of a year or longer at prices substantially higher than were
received in recent years while keeping a portion of its natural gas production
un-contracted and available for sale in today's rising gas price market.
Additionally, the Company continues to acquire and construct new pipeline
systems to transport natural gas from the Company wells and third parties.

LIQUIDITY AND CAPITAL RESOURCES

         The Company's working capital was $14,595,000 at September 30, 2000,
compared to $5,351,000 at March 31, 2000. The increase of $9,244,000 in working
capital at September 30, 2000 reflects the cash flow from operations.

The following table summarizes the Company's financial position at September 30,
2000 and March 31, 2000:

<TABLE>
<CAPTION>
(Amounts in thousands)                          September 30,             March 31,
                                                      2000                  2000
                                               Amount       %         Amount       %
                                              --------   --------    --------   --------

<S>                                           <C>              <C>   <C>               <C>
Working Capital                               $ 14,595         12%   $  5,351          5%
Property and equipment (net)                   102,007         85%    104,763         91%
Other                                            3,745          3%      4,491          4%
                                              --------   --------    --------   --------
     Total                                    $120,347        100%   $114,605        100%
                                              ========   ========    ========   ========

Long-term debt                                $ 70,564         59%   $ 90,122         79%
Deferred income taxes and other liabilities      1,089          1%      1,091          1%
Stockholders' equity                            48,694         40%     23,392         20%
                                              --------   --------    --------   --------
     Total                                    $120,347        100%   $114,605        100%
                                              ========   ========    ========   ========
</TABLE>


The oil and gas exploration and development activities of North Coast
historically have been financed through the Drilling Programs, through
internally generated funds, and from bank and equity financing.

                                       21
<PAGE>   22

The following table summarizes the Company's Statements of Cash Flow for the
six months ended September 30, 2000 and 1999:

<TABLE>
<CAPTION>
(Amounts in Thousands)                                   September 30,               September 30,
                                                             2000                        1999
                                                     Amount          %            Amount          %
                                                   ----------    ----------     ----------    ----------
<S>                                                <C>                   <C>    <C>                   <C>
Net cash provided (used by) operating activities   $    8,931            92%    $     (411)           (7)%
Net cash provided (used by) investing activities       (1,345)          (14)%         (704)          (13)%
Net cash provided (used by) financing activities        1,328            14%         5,314            97%
                                                   ----------    ----------     ----------    ----------

Increase (decrease) in cash and equivalents        $    8,914            92%    $    4,199            77%
                                                   ==========    ==========     ==========    ==========
</TABLE>

Note: All items in the previous table are calculated as a percentage of total
cash sources. Total cash sources include the following items if positive: cash
flow from operations before working capital changes, changes in working capital,
net cash provided by investing activities and net cash provided by financing
activities, plus any decrease in cash and cash equivalents.

         As the above table indicates, the Company's cash provided by operating
activities increased $8,931,000 for the six months ended September 30, 2000,
compared to $(411,000) for the six months ended September 30, 1999. This
increase reflects the added cash flow that is generated by the Company's
acquisition of Peake. Net income increased by $2,200,000 and depreciation,
depletion, and amortization increased by $3,700,000. The increased activity
also made the working capital components increase cash by $2,853,000.

         Net cash used for investing activities increased $1,345,000 for the six
months ended September 30, 2000, from $704,000 for the three months ended
September 30, 1999. This increase in cash used for investing activities
reflects the Company's increase in drilling and exploration for its own
account. Ten wells were deepened or drilled since the beginning of the fiscal
year.

         Net cash from financing activities decreased $1,328,000 for the six
months ended September 30, 2000 from $5,314,000 for the six months ended
September 30, 1999. This decrease primarily reflects less borrowing due to
additional cash generated by operations.

         Effective September 26, 2000, the Company entered into a Credit
Agreement (the "Agreement") with Union Bank of California, NA ("UBOC") as Agent
and certain other financial institutions as lenders (collectively "UBOC") to
replace the $25,000,000 revolving credit facility with ING (U.S.) Capital LLC.
ING Capital had indicated to the Company that it intended to discontinue lending
to the oil and gas industry and the commitment period under the facility
terminated on July 2, 2000. The maturity date for the new facility is September
26, 2005.

         The Agreement with UBOC provides for an initial borrowing base of
$65,000,000, which is subject to redetermination by the lenders on a semi-annual
basis, and a maximum loan amount of $125,000,000. There is also a $5,000,000
sub-limit for letters of credit issued under the borrowing base, with
outstanding letters of credit under the Agreement as of September 30, 2000 of
$150,000. Available borrowings under the facility as of September 30, 2000 were
$5,000,000. The initial borrowing was $60,000,000 with $30,000,000 on a
three-month interest basis and $30,000,000 on a six month interest basis.

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<PAGE>   23

         Amounts outstanding under the senior secured revolving credit facility
bear interest based upon usage as a percentage of the borrowing base, to wit:
0-50% at the UBOC reference rate (RR) or LIBOR plus 1.50%; 51-75% at the UBOC RR
or LIBOR plus 1.75%; 76-100% at the UBOC RR plus .25% or LIBOR plus 2.00%, or
approximately 8.75% at September 30, 2000 on the six month borrowing and 8.66%
on the amount borrowed for the three month period.

         The amounts borrowed under its reducing revolving line of credit are
secured by the Company's receivables, inventory, equipment and a first mortgage
on the Company's interests in oil and gas wells and reserves. The mortgage notes
are secured by land and buildings.

         The Agreement required the Company to pay a facility fee of .50% on the
initial borrowing base and a commitment or "unused" fee payable quarterly in
arrears on the unutilized portion of the borrowing base at a rate of .375% per
annum. The Agreement also contains certain restrictive covenants, including
working capital, and EBITDA interest coverage and fixed charge coverage
calculations, as defined. Additionally, the Company is restricted from paying
cash dividends on any of its common stock under the terms of the Agreement.

         The revolving credit facility and the notes are collateralized by a
perfected first priority mortgage, security interest and assignment of
production covering at least 80% of the Company's oil and gas properties, as
well as its receivables, inventory, and equipment.

         On March 17, 2000, in connection with the Peake acquisition, NUON
loaned $72.5 million to the Company in the form of a $48.5 million
Non-Negotiable Subordinated Promissory Note and a $24 million Non-Negotiable
Subordinated Convertible Promissory Note. Interest on both notes is payable
semi-annually and accrues interest at the six month LIBOR plus 2.30%. The
principal amount of each note is payable on February 28, 2015. Subsequent to
year-end (May 2000), NUON converted the principal amount of the convertible
note to shares of the Company's common stock based upon the exchange price of
$2.50 per share. The conversion election was subject to stockholder approval.
Both notes are (were) subordinated to the Company's senior debt. NUON has the
right to secure the indebtedness by a lien on Peake's assets, subject to the
rights of the senior lender. The Company agreed to grant NUON registration
rights for shares issued in the conversion. As a result of the execution of the
UBOC Agreement, the Company paid $38.5 million of the original $48.5 million
Non-Negotiable Subordinated Promissory Note plus accrued interest to NUON on
September 29, 2000. There remains $10 million of the loan outstanding, which
continues to accrue interest per the terms of the Note.

ACCOUNTING STANDARDS

         In June 1998, SFAS 133, "Accounting for Derivative Instruments and
Hedging Activities," was issued. SFAS 133 establishes accounting and reporting
standards for derivative instruments and hedging activities. SFAS 133, as
amended by SFAS 137, is effective for all fiscal quarters of all fiscal years
beginning after June 15, 2000. The effect of the anticipated adoption of this
standard is expected to have no material effect on the Company's financial
statements.

         In December 1999, the Securities and Exchange Commission issued Staff
Accounting Bulletin ("SAB") 101, "Revenue Recognition in Financial Statements."
SAB 101 summarizes the staff's views and provides guidance on applying generally
accepted accounting principles to revenue recognition. SAB 101, as amended by
SAB 101A and SAB 101B, must be adopted no later than the fourth fiscal quarter
of fiscal years beginning after December 15, 1999. The Company has not
determined the effects, if any, the SAB may have on its financial statements.

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<PAGE>   24

         In March 2000, the Financial Accounting Standards Board (FASB) issued
Interpretation No. 44, "Accounting for Certain Transactions Involving Stock
Compensation" an interpretation of APB Opinion No. 25 ("FIN 44"). This
Interpretation clarifies the definition of employee for purposes of applying
Accounting Principles Board Opinion No. 25, "Accounting for Stock Issued to
Employees" (APB 25), the criteria for determining whether a plan qualifies as a
noncompensatory plan, the accounting consequence of various modifications to the
terms of a previously issued stock option or award, and accounting for an
exchange of stock compensation awards in a business combination. This
Interpretation is effective July 1, 2000, but certain conclusions in this
Interpretation cover specific events that occur after December 15, 1998, or
January 12, 2000. The Company believes that the impact of FIN. 44 will not have
a material effect on its financial position or results of operations.

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<PAGE>   25


                    NORTH COAST ENERGY, INC. AND SUBSIDIARIES
                                     PART II

                                OTHER INFORMATION

Item 1.  Legal Proceedings

         Not applicable

Item 2.  Changes in Securities

         Not applicable

Item 3.  Defaults Upon Senior Securities

         Not applicable

Item 4.  Submission of Matters to a Vote of Security Holders

         On or about September 15, 2000, a Proxy Statement was mailed to all
         holders of record as of August 18, 2000, of the Company's common stock
         and Series A Preferred Stock along with a Notice of Annual Meeting of
         Stockholders to be held on October 6, 2000. At the meeting the
         stockholders were asked to consider and act upon the election of two
         directors whose terms of office expire in 2003, and the proposal to
         authorize, approve and adopt the North Coast Energy, Inc. 2000 Employee
         Stock Bonus Plan to replace a similar plan that is due to expire
         February 1, 2001. The Proxy Statement filed with the Securities and
         Exchange Commission on September 15, 2000, is incorporated by reference
         herein.

         At the Annual Meeting of Stockholders held on October 6, 2000, director
         Ralph L. Bradley was reelected, and nominee Ron L. Langenkamp was
         elected, to three year terms by identical votes of 14,912,693 in favor
         and 8,967 votes opposed. Director Jos J.M. Smits' term expired and he
         retired from the Board, being replaced by Mr. Langenkamp. Directors'
         Carel W.J. Kok, Omer Yonel, Cok van der Horst, C. Rand Michaels and
         Garry Regan continue in office. The North Coast Energy, Inc. 2000
         Employee Stock Bonus Plan was adopted by a vote of 14,871,460 in favor
         and 12,235 votes opposed.

Item 5.  Other Information

         Not applicable

Item 6.  Exhibits and Reports on Form 8-K

         a).  Exhibits

         10.27    $125,000,000 Credit Agreement dated September 26, 2000,
                  between North Coast Energy, Inc. as Borrower, Union Bank of
                  California, NA, as Agent, Bank One, Texas, NA, as Syndication
                  Agent, and certain financial institutions as Lenders.

         27.1     Financial Data Schedule*

         b).      Reports on Form 8-K:

         No reports on Form 8-K have been filed during the quarter for which
         this report was filed.

*Exhibit 27.1 furnished for Securities and Exchange Commission purposes only.


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<PAGE>   26

                                   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.

                                           NORTH COAST ENERGY, INC.


November 14, 2000                          /s/ Omer Yonel
                                           ------------------------------------
                                           Omer Yonel
                                           Chief Executive Officer and Director;
                                           Acting Principal Financial Officer

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