<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 December 31, 1999

                                       OR

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

     For the transition period from ________________ to __________________

COMMISSION FILE NUMBER 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)

Registrants' 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 FEBRUARY 9, 2000
---------------------------                   -------------------------------
Common Stock, $.01 par value                             5,599,726


<PAGE>   2





                            NORTH COAST ENERGY, INC.

<TABLE>
<CAPTION>

                                                                                                    PAGE NO.
                                                                                                     -------
PART I  - FINANCIAL INFORMATION

<S>                                                                                                 <C>
Consolidated Balance Sheets -
 December 31, 1999 (Unaudited) and March 31, 1999 (Audited)                                               2

Unaudited Consolidated Statements of Operations -
     For the Three and Nine Months Ended December 31, 1999 and 1998                                       4

Unaudited Consolidated Statements of Cash Flows -
     For the Nine Months Ended December 31, 1999 and 1998                                                 6

Unaudited Notes to Consolidated Financial Statements                                                      8

Management's Discussion and Analysis of Financial Condition and Results of Operations                    12


PART II - OTHER INFORMATION                                                                              20
</TABLE>









<PAGE>   3





                    NORTH COAST ENERGY, INC. AND SUBSIDIARIES

                           CONSOLIDATED BALANCE SHEETS

                      December 31, 1999 and March 31, 1999

                                   (Unaudited)

                                     ASSETS
                                     ------

<TABLE>
<CAPTION>
                                                  December 31,         March 31,
                                                      1999               1999
                                                  --------------   -----------------

<S>                                                <C>             <C>
CURRENT ASSETS:
   Cash and equivalents                              $5,422,283      $  1,956,617
   Accounts receivable:
     Trade, net                                       3,811,698         2,740,394
     Affiliates                                         114,934           115,278
   Inventories                                          251,156           210,556
   Deferred income taxes                                 57,000            57,000
   Refundable income taxes                               38,000            38,000
   Prepaid expenses                                      55,825           180,000
                                                    -----------       -----------

         Total current assets                         9,750,896         5,297,845



PROPERTY AND EQUIPMENT, at cost:
   Land                                                  97,822            97,822
   Oil and gas properties (successful efforts)       47,386,907        42,964,679
   Pipelines                                          6,682,693         6,543,928
   Vehicles                                           1,035,687           937,613
   Furniture and fixtures                               609,611           588,473
   Buildings and improvements                           837,957           823,225
                                                    -----------       -----------
                                                     56,650,677        51,955,740

   Less accumulated depreciation, depletion,
     amortization and impairment                    (17,051,694)      (15,537,255)
                                                    ------------      ------------
                                                     39,598,983        36,418,485

OTHER ASSETS
   Advanced royalties                                 1,439,000         1,570,000
   Other, net                                           271,950           287,137
                                                    -----------      ------------
                                                      1,710,950         1,857,137

                                                    $51,060,829       $43,573,467
                                                    ===========       ===========
</TABLE>





       The accompanying notes are an integral part of these Balance Sheets

                                       2
<PAGE>   4




                    NORTH COAST ENERGY, INC. AND SUBSIDIARIES

                           CONSOLIDATED BALANCE SHEETS

                      December 31, 1999 and March 31, 1999

                                   (Unaudited)

                      LIABILITIES AND STOCKHOLDERS' EQUITY
                      ------------------------------------
<TABLE>
<CAPTION>
                                                                                  December 31,    March 31,
                                                                                      1999           1999
                                                                                  ------------   -----------
<S>                                                                                <C>           <C>
CURRENT LIABILITIES:
   Current portion of long-term debt                                               $ 2,314,000   $      97,600
   Accounts payable                                                                  1,918,288       2,355,982
   Accrued expenses                                                                    415,667         444,808
   Billings in excess of costs on uncompleted contracts                              2,946,240               -
                                                                                   -----------     -----------

         Total current liabilities                                                   7,594,195       2,898,390

LONG-TERM DEBT, net of current portion                                              20,389,624      21,493,922

ACCRUED PLUGGING LIABILITY                                                             736,635         872,408

DEFERRED INCOME TAXES, NET                                                             366,200         366,200

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY:
   Series A, 6% Noncumulative Convertible
     Preferred stock, par value $.01 per
     share; 563,270 shares authorized; 73,096
     and 73,816 issued and outstanding
     (aggregate liquidation value of $730,960
     and 738,160, respectively)                                                            730             738
   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; 5,599,706 and  4,556,814 issued and outstanding                        55,997          45,568
   Additional paid-in capital                                                       26,327,921      21,914,939
   Retained deficit                                                                 (4,412,802)     (4,021,027)
                                                                                   -----------     -----------

         Total stockholders' equity                                                 21,974,175      17,942,547
                                                                                   -----------     -----------

                                                                                   $51,060,829     $43,573,467
                                                                                   ===========     ===========
</TABLE>




       The accompanying notes are an integral part of these Balance Sheets

                                       3
<PAGE>   5



                    NORTH COAST ENERGY, INC. AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF OPERATIONS

                For The Periods Ended December 31, 1999 and 1998

                                   (Unaudited)

<TABLE>
<CAPTION>
                                                       THREE MONTHS ENDED                        NINE MONTHS ENDED
                                                       ------------------                        -----------------
                                                     1999                1998               1999              1998
                                                     ----                ----               ----              ----
<S>                                            <C>                   <C>             <C>                 <C>
REVENUE:
 Oil and gas production                        $   2,362,473         $ 2,202,823      $   5,589,429      $   5,630,426
 Drilling revenues                                         -              -                      -             326,958
 Well operating, transportation and other            782,835             493,262          2,207,310          1,427,673
 Administrative and agency fees                      401,053             360,792            717,177            779,200
                                                   ---------          ----------         ----------        -----------
                                                   3,546,361           3,056,877          8,513,916          8,164,257
COSTS AND EXPENSES:
 Oil and gas production expenses                   1,008,445           1,072,629          2,356,026          2,269,790
 Drilling costs                                      143,932             151,351            384,094            723,139
 Oil and gas operations                              210,356              62,285          1,212,813            507,682
 General and administrative expenses                 511,799             522,936          1,886,789          1,534,075
 Depreciation, depletion, amortization,
   impairment and other                              639,503             568,572          1,594,889          1,581,044
                                                  ----------         -----------          ---------         ----------
                                                   2,514,035           2,377,773          7,434,611          6,615,730
                                                   ---------          ----------          ---------          ---------

INCOME FROM OPERATIONS                             1,032,326             679,104          1,079,305          1,548,527
                                                  ----------          ----------          ---------          ---------

OTHER INCOME (EXPENSES)
 Interest income                                      47,493              20,482            106,897             66,158
 Other                                                    75                (817)             1,291              1,537
 Gain (loss) on sale of property
   and equipment                                        (144)               (125)               208             (2,597)
 Interest expense                                   (490,536)           (437,836)        (1,404,828)        (1,437,355)
                                               --------------       ------------         ----------         ----------
                                                    (443,112)           (418,296)        (1,296,432)        (1,372,257)
                                                -------------        ------------        ----------         ----------


INCOME (LOSS) BEFORE INCOME TAXES                     589,214            260,808           (217,127)           176,270

PROVISION FOR INCOME TAXES
 Current                                                   -                    -                -                  -
 Deferred                                                  -                    -                -                  -
                                                 ------------         ------------    -------------    ---------------
                                                           -                    -                -                  -
                                                 ------------         ------------    -------------    ---------------


NET INCOME (LOSS)                                $     589,214      $     260,808    $     (217,127)       $   176,270
                                                 =============      =============     =============        ===========
</TABLE>









    The accompanying notes are an integral part of these Financial Statements

                                       4
<PAGE>   6





                    NORTH COAST ENERGY, INC. AND SUBSIDIARIES

                CONSOLIDATED STATEMENTS OF OPERATIONS (continued)

                For The Periods Ended December 31, 1999 and 1998

                                   (Unaudited)

<TABLE>
<CAPTION>
                                                       THREE MONTHS ENDED                     NINE MONTHS ENDED
                                                      1999            1998                1999                  1998
                                                      ----            ----                ----                  ----
<S>                                            <C>                 <C>                 <C>               <C>
Net loss applicable to Common
  Stock (after Preferred Stock dividends
  paid or in arrears of $58,216 and $58,216
  for the three months ended December 31, 1999
  and 1998; and $174,648 and $183,748 for the
  nine months ended December 31,  1999
  and 1998)                                    $     530,998         $   202,592        $  (391,775)     $      (7,478)
                                               =============         ===========        ===========      =============


NET INCOME (LOSS) PER SHARE
  (basic and diluted)                          $         .10         $       .04        $      (.08)     $        (.00)
                                               ==============        ============       ===========      ==============


WEIGHTED AVERAGE SHARES
  OUTSTANDING                                      5,579,332           4,552,449          4,897,763          3,751,245
                                                   =========           =========          =========          =========
</TABLE>











    The accompanying notes are an integral part of these Financial Statements


                                       5
<PAGE>   7

                    NORTH COAST ENERGY, INC. AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF CASH FLOWS

              For The Nine Months Ended December 31, 1999 and 1998

                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                     1999                1998
                                                                     ----                ----
CASH FLOWS FROM OPERATING ACTIVITIES:
<S>                                                             <C>                 <C>

 Net loss                                                       $   (217,127)      $    176,270
 Adjustments to reconcile net loss
  to cash provided (used) by operating activities-
   Depreciation, depletion, amortization, and other                1,594,889          1,581,044
   Abandonment of oil and gas properties                                  --                 --
   (Gain) loss on sale of property and equipment                        (144)             2,597
Change in:
    Accounts receivable                                           (1,070,960)        (1,323,563)
    Other current assets                                              83,575            (79,672)
    Other assets                                                     123,087            (15,243)
    Accounts payable                                                (437,694)           171,448
    Other liabilities                                               (135,773)                --
    Accrued expenses                                                 (29,141)           193,393
    Billings in excess of costs on uncompleted contracts           2,946,240          1,908,832
                                                                ------------       ------------

    Total adjustments                                              3,074,079          2,438,836
                                                                ------------       ------------

    Net cash provided (used) by operating activities               2,856,952          2,615,106
                                                                ------------       ------------

CASH FLOWS FROM INVESTING ACTIVITIES:
 Purchase of property and equipment                               (4,752,143)       (19,058,995)
                                                                ------------       ------------

    Net cash provided (used) for investing activities             (4,752,143)       (19,058,995)
                                                                ------------       ------------

CASH FLOWS FROM FINANCING ACTIVITIES:
 Payments of accounts payable used to
  finance property and equipment additions                                --                 --
 Borrowings under revolving credit facility                        2,000,000         17,962,370
 Payments on long-term debt                                          (83,589)           (79,177)
 Repayments of borrowings under revolving  credit facility          (900,000)        (4,500,000)
 Cash paid for deferred financing cost                                    --           (150,000)
 Proceeds from issuance of long-term debt                             95,691            158,031
 Net proceeds from the issuance of Common Stock                    4,423,403          4,934,768
 Distributions and dividends                                        (174,648)          (143,508)
                                                                ------------       ------------
    Net cash provided (used) by financing activities               5,360,857         18,182,484
                                                                ------------       ------------

INCREASE (DECREASE) IN CASH AND EQUIVALENTS                        3,465,666          1,738,595
</TABLE>







    The accompanying notes are an integral part of these Financial Statements

                                       6
<PAGE>   8


                    NORTH COAST ENERGY, INC. AND SUBSIDIARIES

                CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)

              For The Nine Months Ended December 31, 1999 and 1998

                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                         1999                    1998
                                                                         ----                    ----

<S>                                                                <C>                     <C>
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD                           $1,956,617              $1,578,984
                                                                      ----------              ----------

CASH AND EQUIVALENTS AT END OF PERIOD                                 $5,422,283              $3,317,579
                                                                      ==========              ==========


SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION:

Cash paid during the period for -
    Interest                                                          $1,459,800              $1,372,861
    Income taxes                                                      $       -               $   68,711

SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING
  AND FINANCING ACTIVITIES:

Long-term debt incurred for the purchase
 of property and equipment                                            $   95,691             $   158,031

Accounts payable from interest on
 long-term debt                                                       $   67,200             $   106,872

Stock bonus given to employees                                        $       -              $     9,759


</TABLE>




















    The accompanying notes are an integral part of these Financial Statements

                                       7
<PAGE>   9


                    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 for the fiscal year ended March 31, 1999.

         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),
         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>
<S>                                                                                                  <C>
         Capital Drilling Fund 1986-1 Limited Partnership                                              13.2%
         North Coast Energy/Capital 1987-1 Appalachian Drilling Program Limited Partnership            51.2%
         North Coast Energy/Capital 1987-2 Appalachian Drilling Program Limited Partnership            45.1%
         North Coast Energy/Capital 1988-1 Appalachian Drilling Program Limited Partnership            44.5%
         North Coast Energy/Capital 1988-2 Appalachian Drilling Program Limited Partnership            49.4%
         North Coast Energy 1989 Appalachian Drilling Program Limited Partnership                      36.7%
         North Coast Energy 1990-1 Appalachian Drilling Program Limited Partnership                    45.4%
         North Coast Energy 1990-2 Appalachian Drilling Program Limited Partnership                    37.1%
         North Coast Energy 1990-3 Appalachian Drilling Program Limited Partnership                    43.3%
         North Coast Energy 1991-1 Appalachian Drilling Program Limited Partnership                    38.0%
         North Coast Energy 1991-2 Appalachian Drilling Program Limited Partnership                    33.9%
         North Coast Energy 1991-3 Appalachian Drilling Program Limited Partnership                    39.2%
         North Coast Energy 1992-1 Appalachian Drilling Program Limited Partnership                    28.3%
         North Coast Energy 1992-2 Appalachian Drilling Program Limited Partnership                    37.9%
         North Coast Energy 1992-3 Appalachian Drilling Program Limited Partnership                    54.0%
</TABLE>



                                       8
<PAGE>   10

                    NORTH COAST ENERGY, INC. AND SUBSIDIARIES

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                                   (Unaudited)

Note 1.     Summary of Accounting Policies (Continued)
<TABLE>
<S>                                                                                                  <C>

         North Coast Energy 1993-1 Appalachian Drilling Program Limited Partnership                    42.6%
         North Coast Energy 1993-2 Appalachian Drilling Program Limited Partnership                    38.7%
         North Coast Energy 1993-3 Appalachian Drilling Program Limited Partnership                    36.7%
         North Coast Energy 1994-1 Appalachian Drilling Program Limited Partnership                    37.6%
         North Coast Energy 1994-2 Appalachian Drilling Program Limited Partnership                    29.4%
         North Coast Energy 1994-3 Appalachian Drilling Program Limited Partnership                    32.8%
         North Coast Energy 1995-1 Appalachian Drilling Program Limited Partnership                    20.0%
         North Coast Energy 1995-2 Appalachian Drilling Program Limited Partnership                    20.0%
         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.


Note 2.     Long-Term Debt
<TABLE>
<CAPTION>
                                                                         December 31, 1999  March 31, 1999
                                                                         ---------------    --------------
           Long-term debt consists of the following:
<S>                                                                    <C>              <C>
             Revolving credit notes payable - bank                          $21,927,635      $20,827,635

             Mortgage note payable to a bank, secured by land and
             a building, requiring monthly payments of approximately
             $1,019 (including interest at 8%) through July 2003                 37,126           44,290

             Mortgage note payable to a bank, secured by land and
             a building, requiring monthly payments of approximately
             $5,248 (including interest at 8.58% renegotiated every 5 years)    470,394          487,673

             Various installment notes payable, in aggregate monthly
             installments (including interest) of $8,750 at December 31,
             1999, and $7,500 at March 31, 1999                                 268,469          231,924
                                                                            -----------      -----------
                                                                             22,703,624       21,591,522

           Less current portion                                               2,314,000           97,600
                                                                            -----------      -----------
                                                                            $20,389,624      $21,493,922
                                                                            ===========      ===========
</TABLE>


                                       9


<PAGE>   11


                    NORTH COAST ENERGY, INC. AND SUBSIDIARIES

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                                   (Unaudited)

Note 2.     Long-Term Debt (Continued)

         On February 9, 1998, the Company entered into an agreement with ING
         (US) Capital LLC (successor in interest to ING (US) Capital
         Corporation)("ING Capital") to replace the $20,000,000 revolving credit
         facility with its previous lender. On May 29, 1998, the Company entered
         into an amended Credit Agreement with its lender increasing the Credit
         Facility from $20,000,000 to $25,000,000. The Agreement provides for a
         borrowing base which is determined semi-annually by the lender based
         upon the Company's financial position, oil and gas reserves, as well as
         outstanding letters of credit ($150,000 at December 31, 1999), as
         defined. At December 31, 1999, the Company's borrowing base was
         $25,000,000 subject to reduction for the outstanding letters of credit.
         Available borrowings under the facility at December 31, 1999 were
         $2,922,365 and may subsequently change based upon the semiannual
         reserve study and borrowing base determination.

         In June 1999, the Company and ING Capital entered into an amended
         credit agreement that extended the commitment period until and
         including July 2, 2000. At the termination of the commitment period,
         borrowings on the note are due and payable in 20 equal quarterly
         installments beginning on September 30, 2000. ING Capital has indicated
         to the company that sometime in the future it will discontinue lending
         to the oil and gas industry. The Company is currently in the process of
         reviewing its options and financing needs with several prospective
         lenders.

         Amounts outstanding under the reducing revolving line of credit bear
         interest at the lending bank's prime rate plus .75% or LIBOR plus
         2.50%, or approximately 9% and 7.85% at December 31, 1999 and December
         31, 1998, respectively. The agreement requires the Company to pay a
         commitment fee of .5% on the unused amount of available borrowings. The
         agreement contains certain restrictive covenants, including working
         capital, current ratio, tangible net worth, and EBITDA calculations, as
         defined. The Company was in compliance with all covenants and
         restrictions at December 31, 1999.

         The revolving credit facility and the notes are collateralized by
         substantially all of the Company's assets including receivables,
         inventory, equipment and a first mortgage on certain of the Company's
         interests in oil and gas wells and reserves.

Note 3.  Billings in Excess of Costs on Uncompleted Contracts

         Billings in excess of costs on uncompleted contracts consist of:


<TABLE>
<CAPTION>
                                                                    December 31,           March 31,
                                                                        2000                2000
                                                                        ----                ----
<S>                                                               <C>                  <C>
                 Billings on uncompleted contracts                  $ 5,335,588          $     -
                 Costs incurred on uncompleted contracts              2,389,348                -
                                                                    -----------          ------------
                                                                    $ 2,946,240          $      -
                                                                    ===========          ============
</TABLE>

Note 4.  Commitment and Contingencies

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

         At December 31, 1999, the Company has committed to fund certain costs
         of the North Coast Energy Appalachian Drilling Programs estimated to be
         approximately $1,514,000 for tangible well equipment and pipeline
         construction.


                                       10


<PAGE>   12



                    NORTH COAST ENERGY, INC. AND SUBSIDIARIES

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                                   (Unaudited)

Note 5. Preferred Dividends

         On December 31, 1999 and 1998, the Company paid a dividend of $58,216
         on the cumulative convertible Series B Preferred Stock. For purposes of
         computing earnings per share for the nine months ended December 31,
         1999, dividends paid and in arrears on the cumulative convertible
         Series B Preferred Stock were $174,648. Cumulative dividends in arrears
         on the cumulative convertible Series B Preferred Stock are $326,010 at
         December 31, 1999.

Note 6.  Sale of Common Stock

         Pursuant to the terms of a stock purchase agreement by and between
         North Coast and NUON International bv ("NUON") dated August 1, 1997,
         North Coast agreed to sell up to 1,149,426 shares of Common Stock each
         year over a three year period. On September 30, 1998, North Coast sold
         1,149,426 shares of its Common Stock to NUON for $4.35 per share. North
         Coast also sold on September 30, 1999 1,042,125 shares of Common Stock
         for $4.35 per share to conclude the Company's obligation under the
         August 1, 1997 stock purchase agreement.

         Effective April 30, 1999, the chief executive officer of North Coast
         was paid $370,000 in lieu of continuing his employment contract by
         signing a separation agreement with North Coast. NUON exercised its
         option to purchase the chief executive officer's Common Stock; which
         directly reduced the amount of Common Stock NUON was required to
         purchase in September, 1999 under its August 1, 1997 stock purchase
         agreement. Additionally, the former chief executive officer received a
         ten-year warrant to purchase, at $5.00 per share, 60,000 shares of the
         Company's common stock.

         A portion of the proceeds from the sale of Common Stock was utilized to
         reduce the amount outstanding under the Company's Credit Facility with
         the remaining proceeds being used for working capital purposes.

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.  Acquisition of Environmental Exploration Co.

         The Company acquired, effective September 11, 1999, the working
         interest and operations in approximately 220 producing wells,
         additional proved undeveloped locations and gas gathering systems from
         Environmental Exploration of Canton, Ohio. The transaction closed
         October 7, 1999 for a total purchase price of $3.5 million in cash
         which was funded through the sale of stock to NUON on September 30,
         1999.

                                       11
<PAGE>   13



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

GENERAL

         North Coast Energy, Inc., ("North Coast", the "Company") a Delaware
corporation, is an independent natural gas and oil company engaged in
exploration, development and production activities primarily in the Appalachian
Basin of Ohio and Pennsylvania. The Company's strategy focuses primarily on the
acquisition of proved developed and proved undeveloped natural gas and oil
properties and on the enhancement or development of such properties by the
Company or in conjunction with drilling partnerships which the Company sponsors
and manages (the "Drilling Programs"). The Drilling Programs are funded through
the sale of partnership interests to non-industry investors and by contributions
from the Company.

ACQUISITIONS AND DRILLING ACTIVITIES

         On October 7, 1999, the Company closed a $3.5 million cash acquisition
of 220 producing wells, undeveloped locations and gas gathering systems from
Environmental Exploration of Canton, Ohio. The transaction which was effective
September 11, 1999 included an estimated 6.6 Bcfe of net proved reserves.

         The Company formed its 1999-1 development-drilling program on December
30, 1999 with total capital contributed of $5,215,000. The funds from the 1999-1
Drilling Program will enable the Company to participate in the drilling of 31
gross (30 net) wells. Drilling commenced on December 27, 1999.

         The following table is a review of the results of operations of the
Company for the three and nine months ended December 31, 1999 and 1998. All
items in the table are calculated as a percentage of total revenues.

<TABLE>
<CAPTION>
                                                           Three Months        Nine Months
                                                              Ended                Ended
                                                           December 31,          December 31,
                                                         1999       1998       1999      1998
                                                         ----       ----       ----      ----
<S>                                                     <C>       <C>            <C>      <C>
Revenues:
   Oil and gas production                                 67%        72%        66%         69%
   Drilling revenues                                       0          0          0           4
   Well operating, transportation and other               22         16         26          17
   Administrative and agency fees                         11         12          8          10
                                                        ----       ----       ----        ----
         Total Revenues                                  100%       100%       100%        100%
                                                        ----       ----       ----        ----

Expenses:
   Oil and gas production expenses                        29%        35%        28%         28%
   Drilling costs                                          4          4          5           9
   Oil and gas operations                                  6          2         14           6
   General and administrative expenses                    14         17         22          19
   Depreciation, depletion, amortization and other        18         19         19          19
   Other                                                  12         14         15          17
                                                        ----       ----       ----        ----
         Total Expenses                                   83%        91%       103%         98%
                                                        ----       ----       ----        ----

Net Income (Loss)                                         17%         9%        (3)%         2%
                                                        ====       ====       ====        ====

Net Income (Loss) Applicable to Common Stock              15%         7%        (5)%        (0)%
                                                        ====       ====       ====        ====
</TABLE>


         The following discussion and analysis reviews the results of operations
and the financial condition for the Company for the nine and three months ended
December 31, 1999 and 1998. The review should be read in conjunction with the
financial information presented elsewhere herein.

                                       12
<PAGE>   14

COMPARISON OF NINE MONTHS ENDED DECEMBER 31, 1999 TO NINE MONTHS ENDED DECEMBER
31, 1998.

REVENUES

         Overall revenues increased to $8,513,916 for the nine months ended
December 31, 1999 compared to $8,164,257 for the nine months ended December 31,
1998.

         Oil and gas production increased 29,943 Mcfe to 2,219,965 Mcfe for the
nine months ended December 31, 1999 compared to 2,190,022 Mcfe for the
comparable period ended December 31, 1998. However, primarily as a result of a
decrease in the contract price paid for the gas produced from the wells acquired
from Kelt Ohio, gas and oil revenues decreased $40,997 for the nine months ended
December 31, 1999 compared to the nine months ended December 31, 1998. The
contract for the affected wells was renegotiated upward $.28 per Mcf effective
December 1999. The Company received an average price of $16.42 and $11.35 per
barrel of oil for the nine months ended December 31, 1999 and 1998 respectively,
and $2.50 and $2.62 per Mcf for natural gas for the nine months ended December
31, 1999 and 1998 respectively.

         The Company did not recognize any drilling revenues during the nine
months ended December 31, 1999 compared to $326,958 for the nine months ended
December 31, 1998. However, as a result of the increase in capital contributed
for the fiscal 2000 Drilling Program (1999-1), $5,215,000 compared to $3,515,000
in the fiscal 1999 drilling program (1998-1), the Company anticipates that the
majority of drilling revenues from the proposed 31 gross wells (30 net) will be
recognized at the year ending March 31, 2000.

         For the nine months ended December 31, 1999 well operating,
transportation and other revenues increased $779,637 to $2,207,310 from
$1,427,673 for the nine months ended December 31, 1998. The increase resulted
primarily from increases in third party gas sales.

EXPENSES

         For the nine months ended December 31, 1999 oil and gas production
expenses increased to $2,356,026 from $2,269,790 for the nine months ended
December 31, 1998.

         Drilling costs for the nine months ended December 31, 1999 compared to
the nine months ended December 31, 1998 decreased $339,045. This decrease
between comparable periods was due to the fewer number of wells recognized in
drilling revenue during the nine months ended December 31, 1999 compared to the
nine months ended December 30, 1998 as discussed with the drilling revenues
above. The Company allocates overhead to this activity although it is
anticipated that wells will not be contracted, drilled and completed until the
fourth quarter.

         The increase in the purchase of third party gas resulted in an increase
in oil and gas operations expense to $1,212,813 for the nine months ended
December 31, 1999 compared to $507,682 for the nine months ended December 31,
1998.

         The increase of $352,714 to $1,886,789 in general and administrative
expenses for the nine months ended December 31, 1999 compared to $1,534,075 for
the nine months ended December 31, 1998 reflects the payment of $370,000 and
$26,000 of associated legal and other costs related to the separation agreement
and employment agreement associated with the resignation of the Company's former
chief executive officer who resigned on April 30, 1999.

         Income from operations for the nine months ended December 31, 1999
decreased to $1,079,305 from $1,548,527 for the nine months ended December 31,
1998 primarily as a result of the payments and costs associated with the
resignation of the former chief executive officer. The net loss for the nine
months ended December 31, 1999 was $217,127 compared to net income of $176,270
for the nine months ended December 31, 1998. The net loss applicable to Common
Stock for the nine months ended December 31, 1999 after preferred dividends of
$174,648 was $391,775 compared to a net loss for the nine months ended December
31, 1998 of $7,478 applicable to Common

                                       13
<PAGE>   15


Stock after preferred dividends of $183,748. The increase in the net loss
applicable to Common Stock was primarily attributable to the payments made to
the former chief executive officer and associated legal and other costs.

COMPARISON OF THREE MONTHS ENDED DECEMBER 31, 1999 TO THREE MONTHS ENDED
DECEMBER 31, 1998.

REVENUES

         Overall revenues increased to $3,546,361 for the three months ended
December 31, 1999 from $3,056,877 for the three months ended December 31, 1998.

         Oil and gas production increased 92,022 Mcfe to 938,908 Mcfe for the
three months ended December 31, 1999 compared to 846,886 Mcf for the three
months ended December 31, 1998. Revenues from oil and gas production increased
$159,650 to $2,362,473 for the three months ended December 31, 1999 from
$2,208,823 for the three months ended December 31, 1998. The increase in oil and
gas production and revenues from oil and gas production for the three months
ended December 31, 1999 compared to the three months ended December 31, 1998
primarily results from the production associated with the Environmental
Exploration acquisition.

         An increase in third party gas sales resulted in an increase of
$289,573 in well operating, transportation and other revenues for the three
months ended December 31, 1999 compared to the three months ended December 31,
1998.

         The increase of $40,261 in administrative and agency fees for the three
months ended December 31, 1999 compared to the three months ended December 31,
1998 reflects the increase in drilling capital raised for drilling programs for
the three months ended December 31, 1999 compared to the three months ended
December 31, 1998.

EXPENSES

         Oil and gas production expenses decreased $64,184 to $1,008,445 for the
three months ended December 31, 1999 compared to $1,072,629 for the three months
ended December 31, 1998.

         An increase in third party gas purchases during the three months ended
December 31, 1999 compared to the three months ended December 31, 1998 resulted
in an increase in oil and gas operations expense to $210,356 from $62,285.

         Income from operations for the three months ended December 31, 1999
increased to $1,032,326 from $679,104 for the three months ended December 31,
1998. Net income for the three months ended December 31, 1999 increased $328,406
to $589,214 compared to $260,808 for the three months ended December 31, 1998
primarily as a result of an increase in oil and gas revenue, administrative and
agency fees and revenues from third party gas sales. Net income applicable to
Common Stock after preferred dividend payments of $58,216 was $530,998 for the
three months ended December 31, 1999 compared to $202,592 for the three months
ended December 31, 1998 after the payment of $58,216 in preferred dividends.

OTHER EVENTS

         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.

INFLATION AND CHANGES IN PRICES

         While the costs of operations have been and will continue to be
affected by inflation, oil and gas prices have fluctuated during recent years
and generally have not followed the same pattern as inflation. With today's
global economy, especially in the area of oil and natural gas, management
believes that other forces of the economy and world events, such as OPEC, the
weather, economic factors, and the effects of supply and demand of natural gas
in the United

                                       14
<PAGE>   16


States and regionally have a more immediate effect on current pricing than
inflation. North Coast received an average price of $16.42 and $11.35 per barrel
for the nine months ended December 31, 1999 and 1998, respectively, and $2.50
and $2.62 per Mcf for natural gas for the nine months ended December 31, 1999
and 1998, respectively. The increase in index prices which began in mid-1999 has
enabled North Coast to lock in a substantial portion of its winter production at
prices ranging from $3.03 per Mcf to $3.46 per Mcf. Other variables potentially
effecting gas prices are increased competition from Canadian gas, effects of gas
storage and FERC Order 636. FERC Order 636 may have contributed to the lower
spot market prices by mandating an unbundling of pipeline service and allowing
open access to a variety of geographical markets. Management cannot predict what
long-term effects FERC Order 636 will have on either spot market prices or
longer term gas contracts.

         Currently, North Coast sells natural gas under both fixed price
contracts and on the spot market. The spot market price North Coast receives for
gas production is related to several variables, including the weather and the
effects of gas storage. North Coast anticipates that spot market prices will
continue to fluctuate in response to various factors primarily weather and
demand.

         In an effort to position itself to take advantage of future increases
in demand for natural gas, North Coast continues to construct new pipeline
systems in the Appalachian Basin and to contract with other pipeline systems in
the region to transport natural gas production from its wells.

LIQUIDITY AND CAPITAL RESOURCES

         The Company's working capital was $2,157,000 at December 31, 1999
compared to $2,399,000 at March 31, 1999. The decrease of $242,000 in working
capital at December 31, 1999 reflects the payment of borrowings on the credit
facility and the reclassification of a portion of long-term debt to current. As
of December 31, 1999, the Company had $21,927,635 outstanding under its Credit
Facility.

         The following table summarizes the Company's financial position at
December 31, 1999 and March 31, 1999:

<TABLE>
<CAPTION>
                                                    December 31, 1999           March 31, 1999
                                                   -----------------            --------------

(Amounts in Thousands)                             Amount        %             Amount       %
                                                   ------       ---            ------      ---
<S>                                             <C>           <C>            <C>          <C>
Working capital                                  $ 2,157         5%           $ 2,399       6%
Property and equipment (net)                      39,599        91%            36,418      89%
Other                                              1,711         4%             1,857       5%
                                                 -------      ------          -------     -----
   Total                                         $43,467       100%           $40,674     100%
                                                 =======      ======          =======     =====

Long-term debt                                   $20,390        47%           $21,494      53%
Deferred income taxes and other liabilities        1,103         3%             1,238       3%
Stockholders' equity                              21,974        50%            17,942      44%
                                                 -------      ------          -------     -----
   Total                                         $43,467       100%           $40,674     100%
                                                 =======      ======          =======     =====
</TABLE>



CAPITAL RESOURCES AND REQUIREMENTS

         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 financings.

                                       15

<PAGE>   17




         The following table summarizes the Company's Statements of Cash Flows
for the nine months ended December, 1999 and 1998:

<TABLE>
<CAPTION>
                                                                   Nine Months Ended December 31,
                                                                   ------------------------------
(Amounts in Thousands)                                            1999                     1998
                                                                  ----                     ----
                                                          Amount          %       Amount            %
                                                          ------          -       ------            -

<S>                                                     <C>            <C>       <C>              <C>
Net cash provided (used) by operating activities         $  2,857         35%    $  2,615            13%
Net cash provided (used) for investing activities          (4,752)       (58)%    (19,059)          (92)%
Net cash provided (used) by financing activities            5,361         65%      18,183            87%
                                                         --------     ------   ----------          -----


Increase (decrease) in cash and equivalents                $3,466         42%    $  1,739             8%
                                                           ======        ====    ========          ====
</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 was relatively constant between the nine months ended December 31,
1999 and 1998.

         Net cash used for investing activities decreased to $4,752,143 for the
nine months ended December 31, 1999 from $19,058,995 for the nine months ended
December 31, 1998. The decrease was primarily due to the Kelt acquisition which
was completed during the nine months ended December 31, 1998. North Coast has
funded its obligations to its fiscal 1999 drilling program, and development
activities in addition to the acquisition of assets acquired from Environmental
Exploration. North Coast anticipates funding its fiscal 2000 drilling program
over the next six months.

         Net cash from financing activities decreased to $5,360,857 for the nine
months ended December 31, 1999 from $18,182,484 for the nine months ended
December 31, 1998. This decrease primarily reflects the Company's borrowings
under its credit facility to finance the Kelt acquisition in 1998. The net
proceeds from the issuance of Common Stock reflect the investments of NUON for
the nine months ended December 31, 1999 and 1998.

BANK FINANCING

         On February 9, 1998, North Coast entered into an agreement with ING
(U.S.) Capital Corporation to replace the $20.0 million revolving credit
facility with its previous lender. North Coast's amended credit facility, dated
May 29, 1998, expanded North Coast's $20.0 million revolving credit facility
with ING to a $25.0 million revolving credit facility. The credit agreement also
provides for a borrowing base which is determined semi-annually by the lender
based upon North Coast's financial position, oil and gas reserves, as well as
outstanding letters of credit ($150,000 at December 31, 1999). The credit
agreement requires payment of an agent fee of 0.75% on amounts available and a
0.50% commitment fee on amounts not borrowed up to the available credit line. At
December 31, 1999, North Coast's borrowing base was $25.0 million subject to
reduction for the outstanding letters of credit. Available borrowings under the
facility at December 31, 1999 were $2,922,365 and may change based upon the
semi-annual reserve study and borrowing base determination. (See note 5 to North
Coast's March 31, 1999 financial statements relating to long-term debt.) The
credit facility provides that the payment of dividends with respect to the
Common Stock is prohibited. As of December 31, 1999, North Coast had $21,927,635
outstanding under the credit facility, and was in compliance with its loan
covenants. Amounts borrowed under the credit facility bear interest at the prime
rate of the lending bank plus 0.75% or LIBOR plus 2.50%. The revolving line of
credit is reviewed semi-annually and may be extended by an amendment to the
current facility or converted to a term loan on July 2, 2000.

         The lender has provided a third amendment to the credit facility which
continues the facility without payment of principal until September 30, 2000.
The lender has also indicated that, in the future, it intends to discontinue
lending in the oil and gas business in the United States and has requested that
North Coast find another lender.

                                       16
<PAGE>   18

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

         In addition, at December 31, 1999, North Coast had approximately
$37,126 outstanding under a mortgage note payable for its facility in
Youngstown. The mortgage note bears interest at the rate of 8% and requires
North Coast to make monthly payments of approximately $1,019 through July 2003.
North Coast entered into a mortgage note for its headquarters on May 13, 1996
for $540,000 with a 15-year term and an interest rate of 8.58%. The mortgage
note may be renegotiated every five years. The amount outstanding under the
mortgage note at December 31, 1999 was $470,394.

         Pursuant to the terms of a stock purchase agreement by and between
North Coast and NUON dated August 1, 1997, North Coast agreed to sell up to
1,149,426 shares of Common Stock each year over a three year period. On
September 30, 1998, North Coast sold 1,149,426 shares of its Common Stock to
NUON for $4.35 per share. North Coast also sold on September 30, 1999, 1,042,125
shares of Common Stock for $4.35 per share to conclude the Company's obligation
under the August 1, 1997 stock purchase agreement. With the completion of the
Common Stock sale, NUON holds approximately 62% of the outstanding Common Stock
of North Coast.

         In connection with the sale of shares of Common Stock on September 30,
1999 to NUON, a fee consisting of cash payment of $75,000 and five-year warrants
to purchase 26,800 shares of Common Stock at a price of $4.375 per share was
incurred.

         Effective April 30, 1999, the chief executive officer of North Coast
was paid $370,000 in lieu of continuing his employment contract by signing a
separation agreement with North Coast. NUON exercised its option to purchase the
chief executive officer's Common Stock; which directly reduced the amount of
Common Stock NUON was required to purchase in September, 1999 under its August
1, 1997 stock purchase agreement. Additionally, the former chief executive
officer received a ten-year warrant to purchase, at $5.00 per share, 60,000
shares of the Company's Common Stock.

         North Coast continues to review potential acquisitions in the oil and
gas industry and mid to downstream energy areas, in addition to its drilling and
development activities which includes investing its proportionate share of costs
to drill wells in conjunction with its fiscal 2000 Drilling Program. Management
believes the financing through equity provided from NUON, funds raised in
drilling programs and the Company's existing borrowing base or borrowings
provided by a different lender will be sufficient to fund North Coast's
obligations, operations and debt service requirements for the next year.

         If suitable financing on acceptable terms could not be negotiated prior
to September 30, 2000 with another lender North Coast would be required to make
quarterly principle payments currently in excess of $1 million. Without
additional equity or other financing North Coast may have to cut costs, reduce
staff or sell assets to meet this ongoing principal payment obligation.
Management believes, however, that financing at some acceptable level would be
available before September 30, 2000.

YEAR 2000 DISCLOSURE

         North Coast developed an action plan and identified the resources
required to convert its computer systems and software applications to achieve
Year 2000 readiness. The costs associated with this action plan were
approximately $60,000. The Company did not incur any significant operational
problems as a result of the year 2000 issue.

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. In June 1999, the
FASB issued SFAS No. 137, "Accounting for Derivative Instruments and Hedging
Activities - Deferral of the Effective Date of FASB Statement No. 133 - an
Amendment of FASB Statement No. 133." SFAS No. 137 delayed

                                       17
<PAGE>   19


the original implementation date of SFAS No. 133 until June 15, 2000. The effect
of the adoption or anticipated adoption of the above standards is expected to
have no material effect on North Coast's financial statements.

 FORWARD-LOOKING STATEMENTS

         This report on Form 10-Q contains forward-looking statements that
involve risks and uncertainties. The Company's actual results may differ
significantly from the results discussed in the forward-looking statements.
Factors that may cause such a difference include, but are not limited to, the
competition within the oil and gas industry, the price of oil and gas in the
Appalachian Basin area, the weather in the Company's geographic region, possible
acquisitions by the Company, the cost of the locating and drilling oil and gas
wells in the Appalachian Basin area, the amount of funds raised in Drilling
Programs, the availability of financing, the availability of equity and the
ability to locate productive oil and gas prospects for development by the
Company.


                                       18
<PAGE>   20




                    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

         Not applicable

Item 5.  Other Information

         Not applicable

Item 6.  Exhibits and Reports on Form 8-K

         a).  Exhibits

         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.



                                       19

<PAGE>   21

                                   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.


February 14, 2000              /s/ Omer Yonel
                               --------------------------------------------
                               Omer Yonel
                               Chief Executive Officer and Director


February 14, 2000              /s/ Tim Wagers
                               --------------------------------------------
                               Tim Wagers
                               Principal Accounting and Financial Officer




                                       20