Exhibit 99.2
VECTREN CORPORATION | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
(Millions, except per share amounts) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months | Nine Months | |||||||||||||||
Ended September 30 | Ended September 30 | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
OPERATING REVENUES: | ||||||||||||||||
Gas utility | $ | 93.4 | $ | 143.9 | $ | 759.9 | $ | 1,002.4 | ||||||||
Electric utility | 143.0 | 147.9 | 400.7 | 402.3 | ||||||||||||
Nonutility revenues | 113.2 | 119.6 | 359.7 | 372.7 | ||||||||||||
Total operating revenues | 349.6 | 411.4 | 1,520.3 | 1,777.4 | ||||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Cost of gas sold | 28.0 | 80.2 | 440.6 | 686.0 | ||||||||||||
Cost of fuel and purchased power | 50.1 | 48.7 | 147.4 | 143.2 | ||||||||||||
Cost of nonutility revenues | 36.2 | 51.0 | 153.7 | 198.4 | ||||||||||||
Other operating | 129.6 | 127.9 | 377.6 | 368.4 | ||||||||||||
Depreciation and amortization | 53.9 | 47.7 | 158.3 | 142.5 | ||||||||||||
Taxes other than income taxes | 11.3 | 12.7 | 48.0 | 53.9 | ||||||||||||
Total operating expenses | 309.1 | 368.2 | 1,325.6 | 1,592.4 | ||||||||||||
OPERATING INCOME | 40.5 | 43.2 | 194.7 | 185.0 | ||||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||||
Equity in earnings (losses) of unconsolidated affiliates | (0.6 | ) | 21.5 | (11.3 | ) | 29.0 | ||||||||||
Other income (loss)- net | 4.1 | (3.7 | ) | 10.6 | 2.4 | |||||||||||
Total other income (expense) | 3.5 | 17.8 | (0.7 | ) | 31.4 | |||||||||||
INTEREST EXPENSE | 25.8 | 23.9 | 74.0 | 72.4 | ||||||||||||
INCOME BEFORE INCOME TAXES | 18.2 | 37.1 | 120.0 | 144.0 | ||||||||||||
INCOME TAXES | 5.8 | 13.9 | 41.5 | 52.1 | ||||||||||||
NET INCOME | $ | 12.4 | $ | 23.2 | $ | 78.5 | $ | 91.9 | ||||||||
AVERAGE COMMON SHARES OUTSTANDING | 80.8 | 80.6 | 80.7 | 77.6 | ||||||||||||
DILUTED COMMON SHARES OUTSTANDING | 81.1 | 80.9 | 81.0 | 78.0 | ||||||||||||
EARNINGS PER SHARE OF COMMON STOCK | ||||||||||||||||
BASIC | $ | 0.15 | $ | 0.29 | $ | 0.97 | $ | 1.18 | ||||||||
DILUTED | $ | 0.15 | $ | 0.29 | $ | 0.97 | $ | 1.17 |
VECTREN UTILITY HOLDINGS | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
(Millions) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months | Nine Months | |||||||||||||||
Ended September 30 | Ended September 30 | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
OPERATING REVENUES: | ||||||||||||||||
Gas utility | $ | 93.4 | $ | 143.9 | $ | 759.9 | $ | 1,002.4 | ||||||||
Electric utility | 143.0 | 147.9 | 400.7 | 402.3 | ||||||||||||
Other | 0.4 | 0.6 | 1.2 | 1.8 | ||||||||||||
Total operating revenues | 236.8 | 292.4 | 1,161.8 | 1,406.5 | ||||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Cost of gas sold | 28.0 | 80.2 | 440.6 | 686.0 | ||||||||||||
Cost of fuel and purchased power | 50.1 | 48.7 | 147.4 | 143.2 | ||||||||||||
Other operating | 69.9 | 69.2 | 227.9 | 217.7 | ||||||||||||
Depreciation and amortization | 45.9 | 41.6 | 134.8 | 123.2 | ||||||||||||
Taxes other than income taxes | 10.8 | 11.7 | 46.2 | 51.8 | ||||||||||||
Total operating expenses | 204.7 | 251.4 | 996.9 | 1,221.9 | ||||||||||||
OPERATING INCOME | 32.1 | 41.0 | 164.9 | 184.6 | ||||||||||||
OTHER INCOME - NET | 2.1 | 0.7 | 6.1 | 4.9 | ||||||||||||
INTEREST EXPENSE | 20.2 | 19.6 | 58.9 | 59.5 | ||||||||||||
INCOME BEFORE INCOME TAXES | 14.0 | 22.1 | 112.1 | 130.0 | ||||||||||||
INCOME TAXES | 5.3 | 8.5 | 40.6 | 49.6 | ||||||||||||
NET INCOME | $ | 8.7 | $ | 13.6 | $ | 71.5 | $ | 80.4 |
VECTREN CORPORATION | ||||||||
AND SUBSIDIARY COMPANIES | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(Millions - Unaudited) | ||||||||
September 30, | December 31, | |||||||
2009 | 2008 | |||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash & cash equivalents | $ | 15.3 | $ | 93.2 | ||||
Accounts receivable - less reserves of $6.0 & | ||||||||
$5.6, respectively | 126.8 | 226.7 | ||||||
Accrued unbilled revenues | 46.8 | 197.0 | ||||||
Inventories | 163.6 | 131.0 | ||||||
Recoverable fuel & natural gas costs | - | 3.1 | ||||||
Prepayments & other current assets | 109.7 | 124.6 | ||||||
Total current assets | 462.2 | 775.6 | ||||||
Utility Plant | ||||||||
Original cost | 4,530.9 | 4,335.3 | ||||||
Less: accumulated depreciation & amortization | 1,689.4 | 1,615.0 | ||||||
Net utility plant | 2,841.5 | 2,720.3 | ||||||
Investments in unconsolidated affiliates | 172.9 | 179.1 | ||||||
Other utility and corporate investments | 29.6 | 25.7 | ||||||
Other nonutility investments | 46.1 | 45.9 | ||||||
Nonutility property - net | 455.2 | 390.2 | ||||||
Goodwill - net | 240.8 | 240.2 | ||||||
Regulatory assets | 218.8 | 216.7 | ||||||
Other assets | 33.7 | 39.2 | ||||||
TOTAL ASSETS | $ | 4,500.8 | $ | 4,632.9 | ||||
LIABILITIES & SHAREHOLDERS' EQUITY | ||||||||
Current Liabilities | ||||||||
Accounts payable | $ | 135.4 | $ | 266.1 | ||||
Accounts payable to affiliated companies | 24.5 | 75.2 | ||||||
Refundable fuel & natural gas costs | 34.1 | 4.1 | ||||||
Accrued liabilities | 154.9 | 175.0 | ||||||
Short-term borrowings | 161.4 | 519.5 | ||||||
Current maturities of long-term debt | 0.3 | 0.4 | ||||||
Long-term debt subject to tender | 10.0 | 80.0 | ||||||
Total current liabilities | 520.6 | 1,120.3 | ||||||
Long-term Debt - Net of Current Maturities & | ||||||||
Debt Subject to Tender | 1,629.4 | 1,247.9 | ||||||
Deferred Income Taxes & Other Liabilities | ||||||||
Deferred income taxes | 432.6 | 353.4 | ||||||
Regulatory liabilities | 322.1 | 315.1 | ||||||
Deferred credits & other liabilities | 232.2 | 244.6 | ||||||
Total deferred credits & other liabilities | 986.9 | 913.1 | ||||||
Common Shareholders' Equity | ||||||||
Common stock (no par value) – issued & outstanding | ||||||||
81.1 and 81.0 shares, respectively | 664.0 | 659.1 | ||||||
Retained earnings | 710.1 | 712.8 | ||||||
Accumulated other comprehensive income (loss) | (10.2 | ) | (20.3 | ) | ||||
Total common shareholders' equity | 1,363.9 | 1,351.6 | ||||||
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY | $ | 4,500.8 | $ | 4,632.9 |
VECTREN CORPORATION | ||||||||
AND SUBSIDIARY COMPANIES | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Millions - Unaudited) | ||||||||
For the nine months ended | ||||||||
September 30, | ||||||||
2009 | 2008 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 78.5 | $ | 91.9 | ||||
Adjustments to reconcile net income to cash from operating activities: | ||||||||
Depreciation & amortization | 158.3 | 142.5 | ||||||
Deferred income taxes & investment tax credits | 55.2 | 57.2 | ||||||
Equity in earnings (loss) of unconsolidated affiliates | 11.3 | (29.0 | ) | |||||
Provision for uncollectible accounts | 15.3 | 12.9 | ||||||
Expense portion of pension & postretirement periodic benefit cost | 7.8 | 5.8 | ||||||
Other non-cash charges - net | (1.0 | ) | 19.1 | |||||
Changes in working capital accounts: | ||||||||
Accounts receivable & accrued unbilled revenue | 234.0 | 148.7 | ||||||
Inventories | (32.0 | ) | (77.3 | ) | ||||
Recoverable/refundable fuel & natural gas costs | 33.1 | (49.0 | ) | |||||
Prepayments & other current assets | 30.6 | (10.4 | ) | |||||
Accounts payable, including to affiliated companies | (169.9 | ) | (30.9 | ) | ||||
Accrued liabilities | (17.4 | ) | 75.1 | |||||
Unconsolidated affiliate dividends | 11.3 | 9.3 | ||||||
Changes in noncurrent assets | (6.9 | ) | 1.3 | |||||
Changes in noncurrent liabilities | (38.6 | ) | (23.5 | ) | ||||
Net cash flows from operating activities | 369.6 | 343.7 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Proceeds from: | ||||||||
Issuance of common stock | - | 124.9 | ||||||
Long-term debt | 311.6 | 171.2 | ||||||
Dividend reinvestment plan & other | 4.5 | - | ||||||
Requirements for: | ||||||||
Dividends on common stock | (81.2 | ) | (75.6 | ) | ||||
Retirement of long-term debt | (2.7 | ) | (104.1 | ) | ||||
Other financing activities | - | (0.1 | ) | |||||
Net change in short-term borrowings | (358.1 | ) | (202.9 | ) | ||||
Net cash flows from financing activities | (125.9 | ) | (86.6 | ) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Proceeds from: | ||||||||
Other collections | 1.2 | 6.1 | ||||||
Requirements for: | ||||||||
Capital expenditures, excluding AFUDC equity | (321.8 | ) | (258.7 | ) | ||||
Unconsolidated affiliate investments | (0.2 | ) | (0.2 | ) | ||||
Other investments | (0.8 | ) | (10.8 | ) | ||||
Net cash flows from investing activities | (321.6 | ) | (263.6 | ) | ||||
Net change in cash & cash equivalents | (77.9 | ) | (6.5 | ) | ||||
Cash & cash equivalents at beginning of period | 93.2 | 20.6 | ||||||
Cash & cash equivalents at end of period | $ | 15.3 | $ | 14.1 |
VECTREN CORPORATION | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
HIGHLIGHTS | ||||||||||||||||
(millions, except per share amounts) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months | Nine Months | |||||||||||||||
Ended September 30 | Ended September 30 | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
REPORTED EARNINGS (LOSSES): | ||||||||||||||||
Utility Group | $ | 8.7 | $ | 13.6 | $ | 71.5 | $ | 80.4 | ||||||||
Non-utility Group | ||||||||||||||||
Energy Marketing and Services | (4.8 | ) | 10.1 | 6.0 | 12.4 | |||||||||||
Coal Mining | 4.0 | (0.5 | ) | 7.4 | (1.6 | ) | ||||||||||
Energy Infrastructure Services | 4.6 | 6.0 | 7.6 | 5.5 | ||||||||||||
Other Businesses | (0.5 | ) | (5.8 | ) | (2.3 | ) | (4.2 | ) | ||||||||
Total Non-utility Operations | 3.3 | 9.8 | 18.7 | 12.1 | ||||||||||||
Corporate and Other | 0.4 | (0.2 | ) | 0.2 | (0.6 | ) | ||||||||||
Sub-Total Operations | 12.4 | 23.2 | 90.4 | 91.9 | ||||||||||||
Charge related to Liberty Gas Storage Investment | - | - | (11.9 | ) | - | |||||||||||
Vectren Consolidated | $ | 12.4 | $ | 23.2 | $ | 78.5 | $ | 91.9 | ||||||||
EARNINGS PER SHARE: | ||||||||||||||||
EPS FROM OPERATIONS | $ | 0.15 | $ | 0.29 | $ | 1.12 | $ | 1.18 | ||||||||
Charge related to Liberty Gas Storage Investment | - | - | (0.15 | ) | - | |||||||||||
REPORTED EPS | $ | 0.15 | $ | 0.29 | $ | 0.97 | $ | 1.18 |
VECTREN CORPORATION | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
SELECTED GAS DISTRIBUTION | ||||||||||||||||
OPERATING STATISTICS | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months | Nine Months | |||||||||||||||
Ended Sep 30 | Ended Sep 30 | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
GAS OPERATING REVENUES (Millions): | ||||||||||||||||
Residential | $ | 59.9 | $ | 85.4 | $ | 517.1 | $ | 663.7 | ||||||||
Commercial | 22.0 | 43.9 | 194.4 | 278.8 | ||||||||||||
Industrial | 10.1 | 12.8 | 39.1 | 49.9 | ||||||||||||
Other Revenue | 1.4 | 1.8 | 9.3 | 10.0 | ||||||||||||
$ | 93.4 | $ | 143.9 | $ | 759.9 | $ | 1,002.4 | |||||||||
GAS MARGIN (Millions): | ||||||||||||||||
Residential | $ | 42.9 | $ | 39.2 | $ | 211.7 | $ | 203.0 | ||||||||
Commercial | 11.9 | 12.4 | 64.2 | 65.3 | ||||||||||||
Industrial | 9.0 | 9.9 | 33.4 | 37.2 | ||||||||||||
Other | 1.6 | 2.2 | 10.0 | 10.9 | ||||||||||||
$ | 65.4 | $ | 63.7 | $ | 319.3 | $ | 316.4 | |||||||||
GAS SOLD & TRANSPORTED (MMDth): | ||||||||||||||||
Residential | 3.8 | 3.8 | 49.2 | 52.7 | ||||||||||||
Commercial | 2.5 | 2.5 | 22.3 | 23.9 | ||||||||||||
Industrial | 15.3 | 18.4 | 55.1 | 67.5 | ||||||||||||
21.6 | 24.7 | 126.6 | 144.1 | |||||||||||||
AVERAGE GAS CUSTOMERS | ||||||||||||||||
Residential | 882,860 | 887,185 | 895,030 | 900,122 | ||||||||||||
Commercial | 81,914 | 82,764 | 83,109 | 83,883 | ||||||||||||
Industrial | 1,622 | 1,610 | 1,622 | 1,610 | ||||||||||||
966,396 | 971,559 | 979,761 | 985,615 | |||||||||||||
YTD WEATHER AS A PERCENT OF NORMAL: | ||||||||||||||||
Heating Degree Days (Ohio) | 104 | % | 101 | % |
VECTREN CORPORATION | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
SELECTED ELECTRIC | ||||||||||||||||
OPERATING STATISTICS | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months | Nine Months | |||||||||||||||
Ended Sep 30 | Ended Sep 30 | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
ELECTRIC OPERATING REVENUES (Millions): | ||||||||||||||||
Residential | $ | 52.9 | $ | 53.7 | $ | 140.9 | $ | 133.8 | ||||||||
Commercial | 36.4 | 35.2 | 104.7 | 96.4 | ||||||||||||
Industrial | 44.9 | 40.3 | 123.6 | 117.4 | ||||||||||||
Municipals | - | - | - | 1.0 | ||||||||||||
Other Revenue | 1.6 | 1.7 | 4.6 | 4.9 | ||||||||||||
Total Retail | 135.8 | 130.9 | 373.8 | 353.5 | ||||||||||||
Net Wholesale Revenues | 7.2 | 17.0 | 26.9 | 48.8 | ||||||||||||
$ | 143.0 | $ | 147.9 | $ | 400.7 | $ | 402.3 | |||||||||
ELECTRIC MARGIN (Millions): | ||||||||||||||||
Residential | $ | 38.3 | $ | 40.7 | $ | 100.7 | $ | 100.2 | ||||||||
Commercial | 24.2 | 24.9 | 69.4 | 67.6 | ||||||||||||
Industrial | 23.3 | 23.0 | 63.6 | 64.5 | ||||||||||||
Municipals | - | - | - | - | ||||||||||||
Other | 1.5 | 1.6 | 4.3 | 4.6 | ||||||||||||
Total Retail | 87.3 | 90.2 | 238.0 | 236.9 | ||||||||||||
Net Wholesale Margin | 5.6 | 9.0 | 15.3 | 22.2 | ||||||||||||
$ | 92.9 | $ | 99.2 | $ | 253.3 | $ | 259.1 | |||||||||
ELECTRICITY SOLD (GWh): | ||||||||||||||||
Residential | 421.4 | 462.4 | 1,134.0 | 1,182.4 | ||||||||||||
Commercial | 348.6 | 371.4 | 988.1 | 1,013.2 | ||||||||||||
Industrial | 620.5 | 619.0 | 1,686.9 | 1,859.5 | ||||||||||||
Municipals | - | - | - | 44.3 | ||||||||||||
Other Sales - Street Lighting | 4.5 | 4.3 | 14.1 | 14.0 | ||||||||||||
Total Retail | 1,395.0 | 1,457.1 | 3,823.1 | 4,113.4 | ||||||||||||
Wholesale | 87.9 | 371.1 | 494.3 | 1,111.4 | ||||||||||||
1,482.9 | 1,828.2 | 4,317.4 | 5,224.8 | |||||||||||||
AVERAGE ELECTRIC CUSTOMERS | ||||||||||||||||
Residential | 122,222 | 122,373 | 122,307 | 122,505 | ||||||||||||
Commercial | 18,388 | 18,393 | 18,360 | 18,434 | ||||||||||||
Industrial | 106 | 103 | 105 | 102 | ||||||||||||
Other | 33 | 34 | 33 | 34 | ||||||||||||
140,749 | 140,903 | 140,805 | 141,075 | |||||||||||||
YTD WEATHER AS A PERCENT OF NORMAL: | ||||||||||||||||
Cooling Degree Days (Indiana) | 79 | % | 100 | % | 92 | % | 99 | % | ||||||||
Heating Degree Days (Indiana) | 93 | % | 100 | % |