EXHIBIT 99.2
VECTREN CORPORATION | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
(Unaudited - in millions, except per share amounts) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
OPERATING REVENUES: | ||||||||||||||||
Gas utility | $ | 149.3 | $ | 144.0 | $ | 478.6 | $ | 436.8 | ||||||||
Electric utility | 143.3 | 141.8 | 277.4 | 273.8 | ||||||||||||
Nonutility | 351.7 | 344.9 | 546.8 | 544.5 | ||||||||||||
Total operating revenues | 644.3 | 630.7 | 1,302.8 | 1,255.1 | ||||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Cost of gas sold | 41.6 | 37.2 | 186.8 | 150.1 | ||||||||||||
Cost of fuel & purchased power | 47.8 | 43.6 | 90.1 | 84.7 | ||||||||||||
Cost of nonutility revenues | 111.6 | 120.4 | 178.4 | 182.2 | ||||||||||||
Other operating | 284.6 | 273.3 | 513.1 | 497.6 | ||||||||||||
Merger-related | 15.3 | — | 15.3 | — | ||||||||||||
Depreciation & amortization | 72.4 | 68.3 | 143.8 | 136.1 | ||||||||||||
Taxes other than income taxes | 15.5 | 13.9 | 35.4 | 29.1 | ||||||||||||
Total operating expenses | 588.8 | 556.7 | 1,162.9 | 1,079.8 | ||||||||||||
OPERATING INCOME | 55.5 | 74.0 | 139.9 | 175.3 | ||||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||||
Equity in (losses) of unconsolidated affiliates | (17.8 | ) | (0.3 | ) | (17.9 | ) | (0.8 | ) | ||||||||
Other income - net | 10.0 | 7.1 | 18.9 | 15.1 | ||||||||||||
Total other income (expense) | (7.8 | ) | 6.8 | 1.0 | 14.3 | |||||||||||
INTEREST EXPENSE | 24.0 | 21.4 | 47.5 | 42.7 | ||||||||||||
INCOME BEFORE INCOME TAXES | 23.7 | 59.4 | 93.4 | 146.9 | ||||||||||||
INCOME TAXES | 1.5 | 21.8 | 7.7 | 54.0 | ||||||||||||
NET INCOME | $ | 22.2 | $ | 37.6 | $ | 85.7 | $ | 92.9 | ||||||||
WEIGHTED AVERAGE AND DILUTED COMMON SHARES | ||||||||||||||||
OUTSTANDING | 83.1 | 82.9 | 83.1 | 82.9 | ||||||||||||
BASIC AND DILUTED EARNINGS PER SHARE OF COMMON STOCK | $ | 0.27 | $ | 0.45 | $ | 1.03 | $ | 1.12 |
EXHIBIT 99.2
VECTREN UTILITY HOLDINGS | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
(Unaudited - in millions) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
OPERATING REVENUES: | ||||||||||||||||
Gas utility | $ | 149.3 | $ | 144.0 | $ | 478.6 | $ | 436.8 | ||||||||
Electric utility | 143.3 | 141.8 | 277.4 | 273.8 | ||||||||||||
Other | 0.1 | 0.1 | 0.1 | 0.1 | ||||||||||||
Total operating revenues | 292.7 | 285.9 | 756.1 | 710.7 | ||||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Cost of gas sold | 41.6 | 37.2 | 186.8 | 150.1 | ||||||||||||
Cost of fuel & purchased power | 47.8 | 43.6 | 90.1 | 84.7 | ||||||||||||
Other operating | 87.4 | 83.2 | 182.2 | 168.8 | ||||||||||||
Depreciation & amortization | 61.9 | 57.9 | 122.9 | 115.3 | ||||||||||||
Taxes other than income taxes | 14.8 | 13.1 | 33.9 | 27.5 | ||||||||||||
Total operating expenses | 253.5 | 235.0 | 615.9 | 546.4 | ||||||||||||
OPERATING INCOME | 39.2 | 50.9 | 140.2 | 164.3 | ||||||||||||
OTHER INCOME - NET | 9.7 | 6.6 | 18.5 | 13.7 | ||||||||||||
INTEREST EXPENSE | 20.1 | 17.6 | 40.0 | 35.2 | ||||||||||||
INCOME BEFORE INCOME TAXES | 28.8 | 39.9 | 118.7 | 142.8 | ||||||||||||
INCOME TAXES | 3.3 | 14.4 | 18.9 | 51.4 | ||||||||||||
NET INCOME | $ | 25.5 | $ | 25.5 | $ | 99.8 | $ | 91.4 | ||||||||
EXHIBIT 99.2
VECTREN CORPORATION | ||||||||
AND SUBSIDIARY COMPANIES | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(Unaudited - in millions) | ||||||||
June 30, | December 31, | |||||||
2018 | 2017 | |||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash & cash equivalents | $ | 9.8 | $ | 16.6 | ||||
Accounts receivable - less reserves of $5.8 & | ||||||||
$5.1, respectively | 232.0 | 262.9 | ||||||
Accrued unbilled revenues | 148.1 | 207.1 | ||||||
Inventories | 103.7 | 126.6 | ||||||
Recoverable fuel & natural gas costs | 9.7 | 19.2 | ||||||
Prepayments & other current assets | 43.1 | 47.0 | ||||||
Total current assets | 546.4 | 679.4 | ||||||
Utility Plant | ||||||||
Original cost | 7,260.3 | 7,015.4 | ||||||
Less: accumulated depreciation & amortization | 2,816.3 | 2,738.7 | ||||||
Net utility plant | 4,444.0 | 4,276.7 | ||||||
Investments in unconsolidated affiliates | 1.8 | 19.7 | ||||||
Other utility & corporate investments | 45.1 | 43.7 | ||||||
Other nonutility investments | 9.6 | 9.6 | ||||||
Nonutility plant - net | 479.4 | 464.1 | ||||||
Goodwill | 293.5 | 293.5 | ||||||
Regulatory assets | 441.3 | 416.8 | ||||||
Other assets | 35.0 | 35.8 | ||||||
TOTAL ASSETS | $ | 6,296.1 | $ | 6,239.3 | ||||
LIABILITIES & SHAREHOLDERS' EQUITY | ||||||||
Current Liabilities | ||||||||
Accounts payable | $ | 225.0 | $ | 366.2 | ||||
Accrued liabilities | 231.3 | 222.3 | ||||||
Short-term borrowings | 247.9 | 249.5 | ||||||
Current maturities of long-term debt | 60.0 | 100.0 | ||||||
Total current liabilities | 764.2 | 938.0 | ||||||
Long-term Debt - Net of Current Maturities | 1,928.7 | 1,738.7 | ||||||
Deferred Credits & Other Liabilities | ||||||||
Deferred income taxes | 501.1 | 491.3 | ||||||
Regulatory liabilities | 943.1 | 937.2 | ||||||
Deferred credits & other liabilities | 297.2 | 284.8 | ||||||
Total deferred credits & other liabilities | 1,741.4 | 1,713.3 | ||||||
Common Shareholders' Equity | ||||||||
Common stock (no par value) – issued & outstanding | ||||||||
83.1 & 83.0, respectively | 739.5 | 736.9 | ||||||
Retained earnings | 1,123.6 | 1,113.7 | ||||||
Accumulated other comprehensive (loss) | (1.3 | ) | (1.3 | ) | ||||
Total common shareholders' equity | 1,861.8 | 1,849.3 | ||||||
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY | $ | 6,296.1 | $ | 6,239.3 | ||||
EXHIBIT 99.2
VECTREN CORPORATION | ||||||||
AND SUBSIDIARY COMPANIES | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Millions - Unaudited) | ||||||||
Six Months Ended | ||||||||
June 30, | ||||||||
2018 | 2017 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 85.7 | $ | 92.9 | ||||
Adjustments to reconcile net income to cash from operating activities: | ||||||||
Depreciation & amortization | 143.8 | 136.1 | ||||||
Deferred income taxes & investment tax credits | (3.6 | ) | 53.4 | |||||
Provision for uncollectible accounts | 4.4 | 3.1 | ||||||
Expense portion of pension & postretirement benefit cost | 2.2 | 3.4 | ||||||
Other non-cash items - net | 18.3 | 5.5 | ||||||
Changes in working capital accounts: | ||||||||
Accounts receivable & accrued unbilled revenues | 85.5 | 53.9 | ||||||
Inventories | 22.9 | 11.3 | ||||||
Recoverable/refundable fuel & natural gas costs | 9.5 | (2.2 | ) | |||||
Prepayments & other current assets | 4.1 | (3.8 | ) | |||||
Accounts payable | (149.9 | ) | (69.9 | ) | ||||
Accrued liabilities | 9.9 | (6.4 | ) | |||||
Employer contributions to pension & postretirement plans | (5.6 | ) | (2.2 | ) | ||||
Changes in noncurrent assets | (7.3 | ) | (13.5 | ) | ||||
Changes in noncurrent liabilities | (1.5 | ) | (9.8 | ) | ||||
Net cash from operating activities | 218.4 | 251.8 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Proceeds from: | ||||||||
Long-term debt, net of issuance costs | (0.6 | ) | — | |||||
Dividend reinvestment plan & other common stock issuances | 1.7 | 3.1 | ||||||
Requirements for dividends on common stock | (74.8 | ) | (69.6 | ) | ||||
Net change in short-term borrowings | 148.4 | 51.8 | ||||||
Net cash from financing activities | 74.7 | (14.7 | ) | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Proceeds from sale of assets and other collections | 5.4 | 1.3 | ||||||
Requirements for: | ||||||||
Capital expenditures, excluding AFUDC equity | (305.3 | ) | (293.5 | ) | ||||
Other costs | — | (3.4 | ) | |||||
Changes in restricted cash | — | 0.9 | ||||||
Net cash from investing activities | (299.9 | ) | (294.7 | ) | ||||
Net change in cash & cash equivalents | (6.8 | ) | (57.6 | ) | ||||
Cash & cash equivalents at beginning of period | 16.6 | 68.6 | ||||||
Cash & cash equivalents at end of period | $ | 9.8 | $ | 11.0 | ||||
EXHIBIT 99.2
VECTREN CORPORATION | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
HIGHLIGHTS | ||||||||||||||||
(Unaudited - in millions, except per share amounts) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
EARNINGS: | ||||||||||||||||
Utility Group | ||||||||||||||||
Gas Utility Services | $ | 5.3 | $ | 7.0 | $ | 61.3 | $ | 54.9 | ||||||||
Electric Utility Services | 17.8 | 15.9 | 31.8 | 29.6 | ||||||||||||
Other Operations | 2.4 | 2.6 | 6.7 | 6.9 | ||||||||||||
Total Utility Group | 25.5 | 25.5 | 99.8 | 91.4 | ||||||||||||
Nonutility Group | ||||||||||||||||
Infrastructure Services | 19.7 | 11.4 | 3.9 | 2.1 | ||||||||||||
Energy Services | 2.2 | 1.1 | 7.7 | — | ||||||||||||
Other Businesses, excluding Equity Investment Impairment Charge - ProLiance | (0.2 | ) | (0.3 | ) | (0.5 | ) | (0.4 | ) | ||||||||
Nonutility Group, excluding reconciling items | 21.7 | 12.2 | 11.1 | 1.7 | ||||||||||||
Corporate and Other, excluding Merger-Related Costs | (0.5 | ) | (0.1 | ) | (0.7 | ) | (0.2 | ) | ||||||||
Vectren Consolidated, excluding reconciling items | $ | 46.7 | $ | 37.6 | $ | 110.2 | $ | 92.9 | ||||||||
Reconciling Items: | ||||||||||||||||
Other Businesses - Equity Investment Impairment Charge - ProLiance | (13.1 | ) | — | (13.1 | ) | — | ||||||||||
Corporate and Other - Merger-Related Costs | (11.4 | ) | — | (11.4 | ) | — | ||||||||||
Vectren Consolidated | $ | 22.2 | $ | 37.6 | $ | 85.7 | $ | 92.9 | ||||||||
EARNINGS PER SHARE: | ||||||||||||||||
Utility Group | $ | 0.31 | $ | 0.31 | $ | 1.20 | $ | 1.10 | ||||||||
Nonutility Group, excluding reconciling items | 0.26 | 0.15 | 0.13 | 0.02 | ||||||||||||
Corporate and Other, excluding reconciling items | (0.01 | ) | — | (0.01 | ) | — | ||||||||||
EPS, excluding reconciling items | $ | 0.56 | $ | 0.45 | $ | 1.33 | $ | 1.12 | ||||||||
Reconciling Items: | ||||||||||||||||
Other Businesses - Equity Investment Impairment Charge - ProLiance | (0.16 | ) | — | (0.16 | ) | — | ||||||||||
Corporate and Other - Merger-Related Costs | (0.14 | ) | — | (0.14 | ) | — | ||||||||||
Reported EPS | $ | 0.27 | $ | 0.45 | $ | 1.03 | $ | 1.12 |
EXHIBIT 99.2
VECTREN CORPORATION | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
SELECTED GAS DISTRIBUTION | ||||||||||||||||
OPERATING STATISTICS | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
GAS UTILITY (Millions): | ||||||||||||||||
Residential Margin | $ | 64.7 | $ | 65.9 | $ | 168.6 | $ | 171.8 | ||||||||
Commercial Margin | 15.2 | 15.4 | 48.8 | 48.8 | ||||||||||||
Industrial Margin | 15.8 | 16.1 | 37.9 | 37.2 | ||||||||||||
Other Margin | 2.3 | 2.2 | 5.4 | 5.0 | ||||||||||||
Regulatory Expense Recovery Mechanisms | 9.7 | 7.2 | 31.1 | 23.9 | ||||||||||||
Total Gas Utility Margin | 107.7 | 106.8 | 291.8 | 286.7 | ||||||||||||
Cost of Gas Sold | 41.6 | 37.2 | 186.8 | 150.1 | ||||||||||||
Total Gas Utility Revenue | $ | 149.3 | $ | 144.0 | $ | 478.6 | $ | 436.8 | ||||||||
GAS SOLD & TRANSPORTED (MMDth): | ||||||||||||||||
Residential | 10.5 | 7.0 | 48.7 | 36.8 | ||||||||||||
Commercial | 5.0 | 3.5 | 22.0 | 16.5 | ||||||||||||
Industrial | 36.4 | 26.9 | 78.7 | 61.8 | ||||||||||||
51.9 | 37.4 | 149.4 | 115.1 | |||||||||||||
AVERAGE GAS CUSTOMERS | ||||||||||||||||
Residential | 943,420 | 934,827 | 946,645 | 938,080 | ||||||||||||
Commercial | 86,049 | 85,445 | 86,391 | 85,834 | ||||||||||||
Industrial | 1,754 | 1,744 | 1,753 | 1,741 | ||||||||||||
1,031,223 | 1,022,016 | 1,034,789 | 1,025,655 | |||||||||||||
WEATHER AS A PERCENT OF NORMAL (ANNUALIZED): | ||||||||||||||||
Heating Degree Days (Ohio) | 102 | % | 89 | % | ||||||||||||
Heating Degree Days (Indiana) | 100 | % | 81 | % | ||||||||||||
EXHIBIT 99.2
VECTREN CORPORATION | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
SELECTED ELECTRIC | ||||||||||||||||
OPERATING STATISTICS | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
ELECTRIC UTILITY (Millions): | ||||||||||||||||
Residential Margin | $ | 36.6 | $ | 36.2 | $ | 71.2 | $ | 69.5 | ||||||||
Commercial Margin | 24.7 | 26.8 | 47.8 | 51.1 | ||||||||||||
Industrial Margin | 22.9 | 23.8 | 44.6 | 46.8 | ||||||||||||
Other Margin | 0.6 | 0.9 | 1.6 | 1.9 | ||||||||||||
Regulatory Expense Recovery Mechanisms | 3.5 | 2.5 | 8.1 | 4.8 | ||||||||||||
Wholesale and Transmission | 7.2 | 8.0 | 14.0 | 15.0 | ||||||||||||
Total Electric Utility Margin | 95.5 | 98.2 | 187.3 | 189.1 | ||||||||||||
Cost of Fuel & Purchased Power | 47.8 | 43.6 | 90.1 | 84.7 | ||||||||||||
Total Electric Utility Revenue | $ | 143.3 | $ | 141.8 | $ | 277.4 | $ | 273.8 | ||||||||
ELECTRICITY SOLD (GWh): | ||||||||||||||||
Residential | 356.0 | 321.1 | 724.9 | 637.3 | ||||||||||||
Commercial | 324.0 | 324.2 | 613.7 | 609.0 | ||||||||||||
Industrial | 559.6 | 521.4 | 1,055.0 | 1,012.9 | ||||||||||||
Other Sales - Street Lighting | 3.3 | 4.9 | 10.9 | 10.9 | ||||||||||||
Total Retail | 1,242.9 | 1,171.6 | 2,404.5 | 2,270.1 | ||||||||||||
Wholesale | 215.8 | 160.4 | 346.7 | 239.2 | ||||||||||||
1,458.7 | 1,332.0 | 2,751.2 | 2,509.3 | |||||||||||||
AVERAGE ELECTRIC CUSTOMERS | ||||||||||||||||
Residential | 127,193 | 126,302 | 127,215 | 126,274 | ||||||||||||
Commercial | 18,652 | 18,637 | 18,656 | 18,618 | ||||||||||||
Industrial | 115 | 113 | 115 | 113 | ||||||||||||
Other | 40 | 40 | 40 | 40 | ||||||||||||
146,000 | 145,092 | 146,026 | 145,045 | |||||||||||||
WEATHER AS A PERCENT OF NORMAL (ANNUALIZED): | ||||||||||||||||
Cooling Degree Days (Indiana) | 119 | % | 108 | % | 119 | % | 108 | % | ||||||||
Heating Degree Days (Indiana) | 100 | % | 81 | % | ||||||||||||