Exhibit 99.2
VECTREN CORPORATION | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
(Millions, except per share amounts) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months | Six Months | |||||||||||||||
Ended June 30 | Ended June 30 | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
OPERATING REVENUES: | ||||||||||||||||
Gas utility | $ | 139.1 | $ | 224.9 | $ | 666.5 | $ | 858.5 | ||||||||
Electric utility | 132.7 | 127.2 | 257.7 | 254.4 | ||||||||||||
Nonutility revenues | 103.7 | 111.8 | 246.5 | 253.1 | ||||||||||||
Total operating revenues | 375.5 | 463.9 | 1,170.7 | 1,366.0 | ||||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Cost of gas sold | 58.0 | 143.8 | 412.6 | 605.8 | ||||||||||||
Cost of fuel and purchased power | 50.3 | 48.5 | 97.3 | 94.5 | ||||||||||||
Cost of nonutility revenues | 43.3 | 52.1 | 117.5 | 147.4 | ||||||||||||
Other operating | 125.3 | 124.7 | 248.0 | 240.5 | ||||||||||||
Depreciation and amortization | 53.0 | 47.4 | 104.4 | 94.8 | ||||||||||||
Taxes other than income taxes | 13.2 | 14.4 | 36.7 | 41.2 | ||||||||||||
Total operating expenses | 343.1 | 430.9 | 1,016.5 | 1,224.2 | ||||||||||||
OPERATING INCOME | 32.4 | 33.0 | 154.2 | 141.8 | ||||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||||
Equity in earnings (losses) of unconsolidated affiliates | (23.3 | ) | (6.5 | ) | (10.7 | ) | 7.5 | |||||||||
Other income- net | 4.1 | 3.1 | 6.5 | 6.1 | ||||||||||||
Total other income (expense) | (19.2 | ) | (3.4 | ) | (4.2 | ) | 13.6 | |||||||||
INTEREST EXPENSE | 25.5 | 23.2 | 48.2 | 48.5 | ||||||||||||
INCOME (LOSS) BEFORE INCOME TAXES | (12.3 | ) | 6.4 | 101.8 | 106.9 | |||||||||||
INCOME TAXES | (5.6 | ) | 1.7 | 35.7 | 38.2 | |||||||||||
NET INCOME (LOSS) | $ | (6.7 | ) | $ | 4.7 | $ | 66.1 | $ | 68.7 | |||||||
AVERAGE COMMON SHARES OUTSTANDING | 80.7 | 76.2 | 80.7 | 76.1 | ||||||||||||
DILUTED COMMON SHARES OUTSTANDING | 80.7 | 76.6 | 80.7 | 76.3 | ||||||||||||
EARNINGS (LOSS) PER SHARE OF COMMON STOCK | ||||||||||||||||
BASIC | $ | (0.08 | ) | $ | 0.06 | $ | 0.82 | $ | 0.90 | |||||||
DILUTED | $ | (0.08 | ) | $ | 0.06 | $ | 0.82 | $ | 0.89 |
VECTREN UTILITY HOLDINGS | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
(Millions) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months | Six Months | |||||||||||||||
Ended June 30 | Ended June 30 | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
OPERATING REVENUES: | ||||||||||||||||
Gas utility | $ | 139.1 | $ | 224.9 | $ | 666.5 | $ | 858.5 | ||||||||
Electric utility | 132.7 | 127.2 | 257.7 | 254.4 | ||||||||||||
Other | 0.4 | 0.6 | 0.8 | 1.2 | ||||||||||||
Total operating revenues | 272.2 | 352.7 | 925.0 | 1,114.1 | ||||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Cost of gas sold | 58.0 | 143.8 | 412.6 | 605.8 | ||||||||||||
Cost of fuel and purchased power | 50.3 | 48.5 | 97.3 | 94.5 | ||||||||||||
Other operating | 78.7 | 74.5 | 158.0 | 148.5 | ||||||||||||
Depreciation and amortization | 45.0 | 40.9 | 88.9 | 81.6 | ||||||||||||
Taxes other than income taxes | 12.6 | 13.9 | 35.4 | 40.1 | ||||||||||||
Total operating expenses | 244.6 | 321.6 | 792.2 | 970.5 | ||||||||||||
OPERATING INCOME | 27.6 | 31.1 | 132.8 | 143.6 | ||||||||||||
OTHER INCOME - NET | 2.5 | 2.2 | 4.0 | 4.2 | ||||||||||||
INTEREST EXPENSE | 20.0 | 19.1 | 38.7 | 39.9 | ||||||||||||
INCOME BEFORE INCOME TAXES | 10.1 | 14.2 | 98.1 | 107.9 | ||||||||||||
INCOME TAXES | 3.5 | 5.4 | 35.3 | 41.1 | ||||||||||||
NET INCOME | $ | 6.6 | $ | 8.8 | $ | 62.8 | $ | 66.8 |
VECTREN CORPORATION | ||||||||
AND SUBSIDIARY COMPANIES | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(Millions - Unaudited) | ||||||||
June 30, | December 31, | |||||||
2009 | 2008 | |||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash & cash equivalents | $ | 55.1 | $ | 93.2 | ||||
Accounts receivable - less reserves of $8.3 & | ||||||||
$5.6, respectively | 129.4 | 226.7 | ||||||
Accrued unbilled revenues | 51.8 | 197.0 | ||||||
Inventories | 107.8 | 131.0 | ||||||
Recoverable fuel & natural gas costs | - | 3.1 | ||||||
Prepayments & other current assets | 55.6 | 124.6 | ||||||
Total current assets | 399.7 | 775.6 | ||||||
Utility Plant | ||||||||
Original cost | 4,467.5 | 4,335.3 | ||||||
Less: accumulated depreciation & amortization | 1,660.7 | 1,615.0 | ||||||
Net utility plant | 2,806.8 | 2,720.3 | ||||||
Investments in unconsolidated affiliates | 170.0 | 179.1 | ||||||
Other utility and corporate investments | 28.4 | 25.7 | ||||||
Other nonutility investments | 46.1 | 45.9 | ||||||
Nonutility property - net | 429.1 | 390.2 | ||||||
Goodwill - net | 240.8 | 240.2 | ||||||
Regulatory assets | 210.6 | 216.7 | ||||||
Other assets | 33.8 | 39.2 | ||||||
TOTAL ASSETS | $ | 4,365.3 | $ | 4,632.9 | ||||
LIABILITIES & SHAREHOLDERS' EQUITY | ||||||||
Current Liabilities | ||||||||
Accounts payable | $ | 119.9 | $ | 266.1 | ||||
Accounts payable to affiliated companies | 27.0 | 75.2 | ||||||
Refundable fuel & natural gas costs | 27.5 | 4.1 | ||||||
Accrued liabilities | 170.9 | 175.0 | ||||||
Short-term borrowings | 88.8 | 519.5 | ||||||
Current maturities of long-term debt | 0.5 | 0.4 | ||||||
Long-term debt subject to tender | 10.0 | 80.0 | ||||||
Total current liabilities | 444.6 | 1,120.3 | ||||||
Long-term Debt - Net of Current Maturities & | ||||||||
Debt Subject to Tender | 1,608.0 | 1,247.9 | ||||||
Deferred Income Taxes & Other Liabilities | ||||||||
Deferred income taxes | 380.5 | 353.4 | ||||||
Regulatory liabilities | 319.7 | 315.1 | ||||||
Deferred credits & other liabilities | 237.6 | 244.6 | ||||||
Total deferred credits & other liabilities | 937.8 | 913.1 | ||||||
Common Shareholders' Equity | ||||||||
Common stock (no par value) – issued & outstanding | ||||||||
81.1 and 81.0 shares, respectively | 662.6 | 659.1 | ||||||
Retained earnings | 724.8 | 712.8 | ||||||
Accumulated other comprehensive income (loss) | (12.5 | ) | (20.3 | ) | ||||
Total common shareholders' equity | 1,374.9 | 1,351.6 | ||||||
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY | $ | 4,365.3 | $ | 4,632.9 |
VECTREN CORPORATION | ||||||||
AND SUBSIDIARY COMPANIES | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Millions - Unaudited) | ||||||||
For the six months ended | ||||||||
June 30, | ||||||||
2009 | 2008 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 66.1 | $ | 68.7 | ||||
Adjustments to reconcile net income to cash from operating activities: | ||||||||
Depreciation & amortization | 104.4 | 94.8 | ||||||
Deferred income taxes & investment tax credits | 20.5 | 18.9 | ||||||
Equity in earnings (loss) of unconsolidated affiliates | 10.7 | (7.5 | ) | |||||
Provision for uncollectible accounts | 9.4 | 8.9 | ||||||
Expense portion of pension & postretirement periodic benefit cost | 5.9 | 3.9 | ||||||
Other non-cash charges - net | (0.8 | ) | 7.2 | |||||
Changes in working capital accounts: | ||||||||
Accounts receivable & accrued unbilled revenue | 232.3 | 132.0 | ||||||
Inventories | 23.8 | 25.7 | ||||||
Recoverable/refundable fuel & natural gas costs | 26.5 | (32.3 | ) | |||||
Prepayments & other current assets | 67.5 | 41.2 | ||||||
Accounts payable, including to affiliated companies | (185.2 | ) | (48.2 | ) | ||||
Accrued liabilities | (2.6 | ) | 18.2 | |||||
Unconsolidated affiliate dividends | 10.9 | 9.1 | ||||||
Changes in noncurrent assets | 5.0 | 3.9 | ||||||
Changes in noncurrent liabilities | (26.5 | ) | (13.6 | ) | ||||
Net cash flows from operating activities | 367.9 | 330.9 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Proceeds from: | ||||||||
Issuance of common stock | - | 124.9 | ||||||
Long-term debt | 290.8 | 171.2 | ||||||
Stock option exercises & other | 3.1 | - | ||||||
Requirements for: | ||||||||
Dividends on common stock | (54.1 | ) | (49.4 | ) | ||||
Retirement of long-term debt | (1.7 | ) | (103.3 | ) | ||||
Other financing activities | - | (0.2 | ) | |||||
Net change in short-term borrowings | (430.7 | ) | (311.8 | ) | ||||
Net cash flows from financing activities | (192.6 | ) | (168.6 | ) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Proceeds from: | ||||||||
Other collections | 1.1 | 4.3 | ||||||
Requirements for: | ||||||||
Capital expenditures, excluding AFUDC equity | (213.6 | ) | (164.4 | ) | ||||
Unconsolidated affiliate investments | (0.1 | ) | (0.1 | ) | ||||
Other investments | (0.8 | ) | (10.7 | ) | ||||
Net cash flows from investing activities | (213.4 | ) | (170.9 | ) | ||||
Net change in cash & cash equivalents | (38.1 | ) | (8.6 | ) | ||||
Cash & cash equivalents at beginning of period | 93.2 | 20.6 | ||||||
Cash & cash equivalents at end of period | $ | 55.1 | $ | 12.0 |
VECTREN CORPORATION | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
HIGHLIGHTS | ||||||||||||||||
(millions, except per share amounts) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months | Six Months | |||||||||||||||
Ended June 30 | Ended June 30 | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
REPORTED EARNINGS: | ||||||||||||||||
Utility Group | $ | 6.6 | $ | 8.8 | $ | 62.8 | $ | 66.8 | ||||||||
Non-utility Group | ||||||||||||||||
Energy Marketing and Services | (4.7 | ) | (6.7 | ) | 10.8 | 2.3 | ||||||||||
Coal Mining | 0.7 | (0.2 | ) | 3.4 | (1.1 | ) | ||||||||||
Energy Infrastructure Services | 3.6 | 2.7 | 3.0 | (0.5 | ) | |||||||||||
Other Businesses | (0.7 | ) | 0.2 | (1.8 | ) | 1.6 | ||||||||||
Total Non-utility Operations | (1.1 | ) | (4.0 | ) | 15.4 | 2.3 | ||||||||||
Corporate and Other | (0.3 | ) | (0.1 | ) | (0.2 | ) | (0.4 | ) | ||||||||
Sub-Total Operations | 5.2 | 4.7 | 78.0 | 68.7 | ||||||||||||
Charge related to Liberty Gas Storage Investment | (11.9 | ) | - | (11.9 | ) | - | ||||||||||
Vectren Consolidated | $ | (6.7 | ) | $ | 4.7 | $ | 66.1 | $ | 68.7 | |||||||
EARNINGS PER SHARE: | ||||||||||||||||
EPS FROM OPERATIONS | $ | 0.07 | $ | 0.06 | $ | 0.97 | $ | 0.90 | ||||||||
Charge related to Liberty Gas Storage Investment | (0.15 | ) | - | (0.15 | ) | - | ||||||||||
REPORTED EPS | $ | (0.08 | ) | $ | 0.06 | $ | 0.82 | $ | 0.90 |
VECTREN CORPORATION | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
SELECTED GAS DISTRIBUTION | ||||||||||||||||
OPERATING STATISTICS | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months | Six Months | |||||||||||||||
Ended June 30 | Ended June 30 | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
GAS OPERATING REVENUES (Millions): | ||||||||||||||||
Residential | $ | 94.1 | $ | 146.5 | $ | 457.2 | $ | 578.3 | ||||||||
Commercial | 31.7 | 59.7 | 172.4 | 234.9 | ||||||||||||
Industrial | 10.5 | 14.5 | 29.0 | 37.1 | ||||||||||||
Other Revenue | 2.8 | 4.2 | 7.9 | 8.2 | ||||||||||||
$ | 139.1 | $ | 224.9 | $ | 666.5 | $ | 858.5 | |||||||||
GAS MARGIN (Millions): | ||||||||||||||||
Residential | $ | 53.7 | $ | 50.6 | $ | 168.8 | $ | 163.8 | ||||||||
Commercial | 14.8 | 15.2 | 52.3 | 52.9 | ||||||||||||
Industrial | 9.3 | 10.8 | 24.4 | 27.3 | ||||||||||||
Other | 3.3 | 4.5 | 8.4 | 8.7 | ||||||||||||
$ | 81.1 | $ | 81.1 | $ | 253.9 | $ | 252.7 | |||||||||
GAS SOLD & TRANSPORTED (MMDth): | ||||||||||||||||
Residential | 8.6 | 8.7 | 45.4 | 48.9 | ||||||||||||
Commercial | 4.0 | 3.8 | 19.8 | 21.4 | ||||||||||||
Industrial | 15.7 | 20.4 | 39.8 | 49.1 | ||||||||||||
28.3 | 32.9 | 105.0 | 119.4 | |||||||||||||
AVERAGE GAS CUSTOMERS | ||||||||||||||||
Residential | 892,613 | 899,510 | 901,114 | 906,590 | ||||||||||||
Commercial | 82,901 | 83,766 | 83,708 | 84,443 | ||||||||||||
Industrial | 1,633 | 1,611 | 1,622 | 1,611 | ||||||||||||
977,147 | 984,887 | 986,444 | 992,644 | |||||||||||||
YTD WEATHER AS A PERCENT OF NORMAL: | ||||||||||||||||
Heating Degree Days (Ohio) | 99 | % | 101 | % | 104 | % | 103 | % |
VECTREN CORPORATION | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
SELECTED ELECTRIC | ||||||||||||||||
OPERATING STATISTICS | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months | Six Months | |||||||||||||||
Ended June 30 | Ended June 30 | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
ELECTRIC OPERATING REVENUES (Millions): | ||||||||||||||||
Residential | $ | 44.5 | $ | 37.3 | $ | 88.0 | $ | 78.9 | ||||||||
Commercial | 37.3 | 31.3 | 68.3 | 60.1 | ||||||||||||
Industrial | 42.9 | 38.6 | 78.7 | 75.0 | ||||||||||||
Municipals | - | 0.3 | - | 1.0 | ||||||||||||
Other Revenue | 1.5 | 6.1 | 3.0 | 7.7 | ||||||||||||
Total Retail | 126.2 | 113.6 | 238.0 | 222.7 | ||||||||||||
Net Wholesale Revenues | 6.5 | 13.6 | 19.7 | 31.7 | ||||||||||||
$ | 132.7 | $ | 127.2 | $ | 257.7 | $ | 254.4 | |||||||||
ELECTRIC MARGIN (Millions): | ||||||||||||||||
Residential | $ | 31.5 | $ | 27.5 | $ | 62.4 | $ | 58.3 | ||||||||
Commercial | 24.1 | 21.1 | 45.2 | 41.6 | ||||||||||||
Industrial | 21.6 | 19.1 | 40.3 | 39.3 | ||||||||||||
Municipals | - | - | - | - | ||||||||||||
Other | 1.2 | 5.9 | 2.8 | 7.5 | ||||||||||||
Total Retail | 78.4 | 73.6 | 150.7 | 146.7 | ||||||||||||
Net Wholesale Margin | 4.0 | 5.1 | 9.7 | 13.2 | ||||||||||||
$ | 82.4 | $ | 78.7 | $ | 160.4 | $ | 159.9 | |||||||||
ELECTRICITY SOLD (GWh): | ||||||||||||||||
Residential | 334.8 | 314.6 | 712.6 | 720.0 | ||||||||||||
Commercial | 345.7 | 332.0 | 639.5 | 641.8 | ||||||||||||
Industrial | 557.4 | 639.8 | 1,066.4 | 1,240.5 | ||||||||||||
Municipals | - | 13.0 | - | 44.3 | ||||||||||||
Other Sales - Street Lighting | 4.5 | 4.4 | 9.6 | 9.7 | ||||||||||||
Total Retail | 1,242.4 | 1,303.8 | 2,428.1 | 2,656.3 | ||||||||||||
Wholesale | 64.8 | 276.9 | 406.4 | 740.3 | ||||||||||||
1,307.2 | 1,580.7 | 2,834.5 | 3,396.6 | |||||||||||||
AVERAGE ELECTRIC CUSTOMERS | ||||||||||||||||
Residential | 122,107 | 122,387 | 122,348 | 122,571 | ||||||||||||
Commercial | 18,349 | 18,440 | 18,347 | 18,454 | ||||||||||||
Industrial | 105 | 101 | 104 | 102 | ||||||||||||
Other | 33 | 34 | 33 | 34 | ||||||||||||
140,594 | 140,962 | 140,832 | 141,161 | |||||||||||||
YTD WEATHER AS A PERCENT OF NORMAL: | ||||||||||||||||
Cooling Degree Days (Indiana) | 120 | % | 97 | % | 119 | % | 97 | % | ||||||||
Heating Degree Days (Indiana) | 93 | % | 108 | % | 94 | % | 102 | % |