EXHIBIT 99.2
VECTREN CORPORATION | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
(Unaudited - in millions, except per share amounts) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
OPERATING REVENUES: | ||||||||||||||||
Gas utility | $ | 122.1 | $ | 120.4 | $ | 600.7 | $ | 557.2 | ||||||||
Electric utility | 160.0 | 159.2 | 437.4 | 433.0 | ||||||||||||
Nonutility | 382.9 | 411.6 | 929.8 | 956.1 | ||||||||||||
Total operating revenues | 665.0 | 691.2 | 1,967.9 | 1,946.3 | ||||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Cost of gas sold | 24.5 | 23.9 | 211.4 | 174.0 | ||||||||||||
Cost of fuel & purchased power | 47.5 | 44.1 | 137.7 | 128.8 | ||||||||||||
Cost of nonutility revenues | 121.4 | 136.2 | 299.8 | 318.4 | ||||||||||||
Other operating | 296.2 | 296.7 | 809.3 | 794.2 | ||||||||||||
Merger-related | 11.1 | — | 26.4 | — | ||||||||||||
Depreciation & amortization | 73.9 | 69.5 | 217.7 | 205.7 | ||||||||||||
Taxes other than income taxes | 14.1 | 13.5 | 49.6 | 42.5 | ||||||||||||
Total operating expenses | 588.7 | 583.9 | 1,751.9 | 1,663.6 | ||||||||||||
OPERATING INCOME | 76.3 | 107.3 | 216.0 | 282.7 | ||||||||||||
OTHER INCOME: | ||||||||||||||||
Equity in (losses) of unconsolidated affiliates | (0.3 | ) | (0.2 | ) | (18.3 | ) | (1.0 | ) | ||||||||
Other income - net | 9.6 | 9.1 | 28.7 | 24.1 | ||||||||||||
Total other income | 9.3 | 8.9 | 10.4 | 23.1 | ||||||||||||
INTEREST EXPENSE | 24.6 | 22.2 | 72.1 | 64.9 | ||||||||||||
INCOME BEFORE INCOME TAXES | 61.0 | 94.0 | 154.3 | 240.9 | ||||||||||||
INCOME TAXES | 10.6 | 32.1 | 18.2 | 86.1 | ||||||||||||
NET INCOME | $ | 50.4 | $ | 61.9 | $ | 136.1 | $ | 154.8 | ||||||||
WEIGHTED AVERAGE AND DILUTED COMMON SHARES | ||||||||||||||||
OUTSTANDING | 83.1 | 83.0 | 83.1 | 83.0 | ||||||||||||
BASIC AND DILUTED EARNINGS PER SHARE OF COMMON STOCK | $ | 0.61 | $ | 0.75 | $ | 1.64 | $ | 1.87 |
EXHIBIT 99.2
VECTREN UTILITY HOLDINGS | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
(Unaudited - in millions) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
OPERATING REVENUES: | ||||||||||||||||
Gas utility | $ | 122.1 | $ | 120.4 | $ | 600.7 | $ | 557.2 | ||||||||
Electric utility | 160.0 | 159.2 | 437.4 | 433.0 | ||||||||||||
Other | 0.1 | 0.1 | 0.2 | 0.2 | ||||||||||||
Total operating revenues | 282.2 | 279.7 | 1,038.3 | 990.4 | ||||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Cost of gas sold | 24.5 | 23.9 | 211.4 | 174.0 | ||||||||||||
Cost of fuel & purchased power | 47.5 | 44.1 | 137.7 | 128.8 | ||||||||||||
Other operating | 83.5 | 82.0 | 265.6 | 250.4 | ||||||||||||
Depreciation & amortization | 63.4 | 59.0 | 186.3 | 174.3 | ||||||||||||
Taxes other than income taxes | 13.5 | 12.6 | 47.5 | 40.1 | ||||||||||||
Total operating expenses | 232.4 | 221.6 | 848.5 | 767.6 | ||||||||||||
OPERATING INCOME | 49.8 | 58.1 | 189.8 | 222.8 | ||||||||||||
OTHER INCOME - NET | 9.2 | 8.1 | 27.9 | 21.4 | ||||||||||||
INTEREST EXPENSE | 20.3 | 18.3 | 60.3 | 53.5 | ||||||||||||
INCOME BEFORE INCOME TAXES | 38.7 | 47.9 | 157.4 | 190.7 | ||||||||||||
INCOME TAXES | 5.7 | 17.1 | 24.6 | 68.5 | ||||||||||||
NET INCOME | $ | 33.0 | $ | 30.8 | $ | 132.8 | $ | 122.2 | ||||||||
EXHIBIT 99.2
VECTREN CORPORATION | ||||||||
AND SUBSIDIARY COMPANIES | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(Unaudited - in millions) | ||||||||
September 30, | December 31, | |||||||
2018 | 2017 | |||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash & cash equivalents | $ | 28.8 | $ | 16.6 | ||||
Accounts receivable - less reserves of $4.1 & | ||||||||
$5.1, respectively | 230.5 | 262.9 | ||||||
Accrued unbilled revenues | 156.2 | 207.1 | ||||||
Inventories | 119.4 | 126.6 | ||||||
Recoverable fuel & natural gas costs | 7.8 | 19.2 | ||||||
Prepayments & other current assets | 53.9 | 47.0 | ||||||
Total current assets | 596.6 | 679.4 | ||||||
Utility Plant | ||||||||
Original cost | 7,394.5 | 7,015.4 | ||||||
Less: accumulated depreciation & amortization | 2,850.9 | 2,738.7 | ||||||
Net utility plant | 4,543.6 | 4,276.7 | ||||||
Investments in unconsolidated affiliates | 1.5 | 19.7 | ||||||
Other utility & corporate investments | 48.6 | 43.7 | ||||||
Other nonutility investments | 9.6 | 9.6 | ||||||
Nonutility plant - net | 483.0 | 464.1 | ||||||
Goodwill | 293.5 | 293.5 | ||||||
Regulatory assets | 469.5 | 416.8 | ||||||
Other assets | 34.6 | 35.8 | ||||||
TOTAL ASSETS | $ | 6,480.5 | $ | 6,239.3 | ||||
LIABILITIES & SHAREHOLDERS' EQUITY | ||||||||
Current Liabilities | ||||||||
Accounts payable | $ | 232.1 | $ | 366.2 | ||||
Accrued liabilities | 246.1 | 222.3 | ||||||
Short-term borrowings | 325.3 | 249.5 | ||||||
Current maturities of long-term debt | 60.0 | 100.0 | ||||||
Total current liabilities | 863.5 | 938.0 | ||||||
Long-term Debt - Net of Current Maturities | 1,978.9 | 1,738.7 | ||||||
Deferred Credits & Other Liabilities | ||||||||
Deferred income taxes | 518.4 | 491.3 | ||||||
Regulatory liabilities | 938.8 | 937.2 | ||||||
Deferred credits & other liabilities | 306.1 | 284.8 | ||||||
Total deferred credits & other liabilities | 1,763.3 | 1,713.3 | ||||||
Common Shareholders' Equity | ||||||||
Common stock (no par value) – issued & outstanding | ||||||||
83.1 & 83.0, respectively | 739.5 | 736.9 | ||||||
Retained earnings | 1,136.6 | 1,113.7 | ||||||
Accumulated other comprehensive (loss) | (1.3 | ) | (1.3 | ) | ||||
Total common shareholders' equity | 1,874.8 | 1,849.3 | ||||||
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY | $ | 6,480.5 | $ | 6,239.3 | ||||
EXHIBIT 99.2
VECTREN CORPORATION | ||||||||
AND SUBSIDIARY COMPANIES | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Millions - Unaudited) | ||||||||
Nine Months Ended | ||||||||
September 30, | ||||||||
2018 | 2017 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 136.1 | $ | 154.8 | ||||
Adjustments to reconcile net income to cash from operating activities: | ||||||||
Depreciation & amortization | 217.7 | 205.7 | ||||||
Deferred income taxes & investment tax credits | 12.6 | 76.6 | ||||||
Provision for uncollectible accounts | 5.3 | 4.0 | ||||||
Expense portion of pension & postretirement benefit cost | 3.3 | 4.4 | ||||||
Other non-cash items - net | 18.3 | 4.1 | ||||||
Changes in working capital accounts: | ||||||||
Accounts receivable & accrued unbilled revenues | 78.0 | 3.6 | ||||||
Inventories | 7.2 | (1.1 | ) | |||||
Recoverable/refundable fuel & natural gas costs | 11.4 | — | ||||||
Prepayments & other current assets | (6.7 | ) | (3.1 | ) | ||||
Accounts payable | (144.0 | ) | (54.3 | ) | ||||
Accrued liabilities | 24.7 | 4.9 | ||||||
Unconsolidated affiliate dividends | — | 0.1 | ||||||
Employer contributions to pension & postretirement plans | (6.9 | ) | (3.5 | ) | ||||
Changes in noncurrent assets | (29.0 | ) | (28.0 | ) | ||||
Changes in noncurrent liabilities | (13.5 | ) | (7.7 | ) | ||||
Net cash from operating activities | 314.5 | 360.5 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Proceeds from: | ||||||||
Long-term debt, net of issuance costs | 299.3 | 99.2 | ||||||
Dividend reinvestment plan & other common stock issuances | 1.7 | 4.6 | ||||||
Requirements for: | ||||||||
Dividends on common stock | (112.1 | ) | (104.5 | ) | ||||
Retirement of long-term debt | (100.0 | ) | — | |||||
Net change in short-term borrowings | 75.8 | 31.5 | ||||||
Net cash from financing activities | 164.7 | 30.8 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Proceeds from sale of assets and other collections | 5.7 | 4.8 | ||||||
Requirements for: | ||||||||
Capital expenditures, excluding AFUDC equity | (472.7 | ) | (453.5 | ) | ||||
Other costs | — | (3.4 | ) | |||||
Changes in restricted cash | — | 0.9 | ||||||
Net cash from investing activities | (467.0 | ) | (451.2 | ) | ||||
Net change in cash & cash equivalents | 12.2 | (59.9 | ) | |||||
Cash & cash equivalents at beginning of period | 16.6 | 68.6 | ||||||
Cash & cash equivalents at end of period | $ | 28.8 | $ | 8.7 | ||||
EXHIBIT 99.2
VECTREN CORPORATION | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
HIGHLIGHTS | ||||||||||||||||
(Unaudited - in millions, except per share amounts) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
EARNINGS: | ||||||||||||||||
Utility Group | ||||||||||||||||
Gas Utility Services | $ | (0.6 | ) | $ | 1.0 | $ | 60.7 | $ | 55.8 | |||||||
Electric Utility Services | 30.6 | 27.2 | 62.4 | 56.8 | ||||||||||||
Other Operations | 3.0 | 2.6 | 9.7 | 9.6 | ||||||||||||
Total Utility Group | 33.0 | 30.8 | 132.8 | 122.2 | ||||||||||||
Nonutility Group | ||||||||||||||||
Infrastructure Services | 22.1 | 26.6 | 26.0 | 28.6 | ||||||||||||
Energy Services | 4.5 | 4.9 | 12.2 | 4.9 | ||||||||||||
Other Businesses, excluding Equity Investment Impairment Charge - ProLiance | (0.3 | ) | (0.2 | ) | (0.8 | ) | (0.5 | ) | ||||||||
Nonutility Group, excluding reconciling items | 26.3 | 31.3 | 37.4 | 33.0 | ||||||||||||
Corporate and Other, excluding Merger-Related Costs | (0.1 | ) | (0.2 | ) | (0.8 | ) | (0.4 | ) | ||||||||
Vectren Consolidated, excluding reconciling items | $ | 59.2 | $ | 61.9 | $ | 169.4 | $ | 154.8 | ||||||||
Reconciling Items: | ||||||||||||||||
Other Businesses - Equity Investment Impairment Charge - ProLiance | — | — | (13.1 | ) | — | |||||||||||
Corporate and Other - Merger-Related Costs | (8.8 | ) | — | (20.2 | ) | — | ||||||||||
Vectren Consolidated | $ | 50.4 | $ | 61.9 | $ | 136.1 | $ | 154.8 | ||||||||
EARNINGS PER SHARE: | ||||||||||||||||
Utility Group | $ | 0.40 | $ | 0.37 | $ | 1.60 | $ | 1.47 | ||||||||
Nonutility Group, excluding reconciling items | 0.32 | 0.38 | 0.45 | 0.40 | ||||||||||||
Corporate and Other, excluding reconciling items | (0.01 | ) | — | (0.01 | ) | — | ||||||||||
EPS, excluding reconciling items | $ | 0.71 | $ | 0.75 | $ | 2.04 | $ | 1.87 | ||||||||
Reconciling Items: | ||||||||||||||||
Other Businesses - Equity Investment Impairment Charge - ProLiance | — | — | (0.16 | ) | — | |||||||||||
Corporate and Other - Merger-Related Costs | (0.10 | ) | — | (0.24 | ) | — | ||||||||||
Reported EPS | $ | 0.61 | $ | 0.75 | $ | 1.64 | $ | 1.87 | ||||||||
EXHIBIT 99.2
VECTREN CORPORATION | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
SELECTED GAS DISTRIBUTION | ||||||||||||||||
OPERATING STATISTICS | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
GAS UTILITY (Millions): | ||||||||||||||||
Residential Margin | $ | 60.2 | $ | 59.6 | $ | 228.8 | $ | 231.4 | ||||||||
Commercial Margin | 12.6 | 12.8 | 61.4 | 61.7 | ||||||||||||
Industrial Margin | 14.8 | 15.9 | 52.6 | 53.1 | ||||||||||||
Other Margin | 1.4 | 1.5 | 6.8 | 6.4 | ||||||||||||
Regulatory Expense Recovery Mechanisms | 8.6 | 6.7 | 39.7 | 30.6 | ||||||||||||
Total Gas Utility Margin | 97.6 | 96.5 | 389.3 | 383.2 | ||||||||||||
Cost of Gas Sold | 24.5 | 23.9 | 211.4 | 174.0 | ||||||||||||
Total Gas Utility Revenue | $ | 122.1 | $ | 120.4 | $ | 600.7 | $ | 557.2 | ||||||||
GAS SOLD & TRANSPORTED (MMDth): | ||||||||||||||||
Residential | 3.3 | 3.6 | 52.0 | 40.4 | ||||||||||||
Commercial | 2.6 | 2.4 | 24.6 | 18.9 | ||||||||||||
Industrial | 31.1 | 25.4 | 109.8 | 87.2 | ||||||||||||
37.0 | 31.4 | 186.4 | 146.5 | |||||||||||||
AVERAGE GAS CUSTOMERS | ||||||||||||||||
Residential | 933,310 | 925,396 | 942,200 | 933,852 | ||||||||||||
Commercial | 85,168 | 84,686 | 85,983 | 85,451 | ||||||||||||
Industrial | 1,754 | 1,743 | 1,753 | 1,742 | ||||||||||||
1,020,232 | 1,011,825 | 1,029,936 | 1,021,045 | |||||||||||||
WEATHER AS A PERCENT OF NORMAL (ANNUALIZED): | ||||||||||||||||
Heating Degree Days (Ohio) | 102 | % | 89 | % | ||||||||||||
Heating Degree Days (Indiana) | 99 | % | 80 | % | ||||||||||||
EXHIBIT 99.2
VECTREN CORPORATION | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
SELECTED ELECTRIC | ||||||||||||||||
OPERATING STATISTICS | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
ELECTRIC UTILITY (Millions): | ||||||||||||||||
Residential Margin | $ | 46.2 | $ | 46.7 | $ | 117.4 | $ | 116.2 | ||||||||
Commercial Margin | 27.4 | 29.7 | 75.2 | 80.8 | ||||||||||||
Industrial Margin | 25.0 | 26.4 | 69.6 | 73.2 | ||||||||||||
Other Margin | 0.7 | 0.9 | 1.9 | 2.8 | ||||||||||||
Regulatory Expense Recovery Mechanisms | 4.9 | 3.3 | 13.4 | 8.1 | ||||||||||||
Wholesale and Transmission | 8.3 | 8.1 | 22.2 | 23.1 | ||||||||||||
Total Electric Utility Margin | 112.5 | 115.1 | 299.7 | 304.2 | ||||||||||||
Cost of Fuel & Purchased Power | 47.5 | 44.1 | 137.7 | 128.8 | ||||||||||||
Total Electric Utility Revenue | $ | 160.0 | $ | 159.2 | $ | 437.4 | $ | 433.0 | ||||||||
ELECTRICITY SOLD (GWh): | ||||||||||||||||
Residential | 451.1 | 429.0 | 1,176.0 | 1,066.3 | ||||||||||||
Commercial | 358.6 | 367.5 | 972.3 | 976.5 | ||||||||||||
Industrial | 613.6 | 587.8 | 1,668.6 | 1,600.7 | ||||||||||||
Other Sales - Street Lighting | 5.1 | 5.1 | 16.0 | 16.0 | ||||||||||||
Total Retail | 1,428.4 | 1,389.4 | 3,832.9 | 3,659.5 | ||||||||||||
Wholesale | 121.9 | 56.7 | 468.6 | 295.9 | ||||||||||||
1,550.3 | 1,446.1 | 4,301.5 | 3,955.4 | |||||||||||||
AVERAGE ELECTRIC CUSTOMERS | ||||||||||||||||
Residential | 127,459 | 126,467 | 127,296 | 126,338 | ||||||||||||
Commercial | 18,705 | 18,679 | 18,672 | 18,639 | ||||||||||||
Industrial | 115 | 111 | 115 | 112 | ||||||||||||
Other | 40 | 40 | 40 | 40 | ||||||||||||
146,319 | 145,297 | 146,123 | 145,129 | |||||||||||||
WEATHER AS A PERCENT OF NORMAL (ANNUALIZED): | ||||||||||||||||
Cooling Degree Days (Indiana) | 111 | % | 100 | % | 130 | % | 108 | % | ||||||||
Heating Degree Days (Indiana) | 99 | % | 80 | % | ||||||||||||