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 | ||||||||||||||||||
2006 | 2005 | 2006 | 2005 | ||||||||||||||||
OPERATING REVENUES: | |||||||||||||||||||
Gas utility | $ | 159.1 | $ | 186.0 | $ | 731.8 | $ | 702.7 | |||||||||||
Electric utility | 96.0 | 96.9 | 201.2 | 191.6 | |||||||||||||||
Energy services and other | 62.4 | 43.3 | 159.0 | 109.1 | |||||||||||||||
Total operating revenues | 317.5 | 326.2 | 1,092.0 | 1,003.4 | |||||||||||||||
OPERATING EXPENSES: | |||||||||||||||||||
Cost of gas sold | 88.5 | 116.3 | 517.5 | 487.2 | |||||||||||||||
Cost of fuel and purchased power | 30.9 | 33.0 | 69.0 | 62.2 | |||||||||||||||
Cost of energy services and other | 47.6 | 31.4 | 126.0 | 83.0 | |||||||||||||||
Other operating | 68.3 | 65.8 | 141.1 | 136.9 | |||||||||||||||
Depreciation and amortization | 41.9 | 38.5 | 83.5 | 75.6 | |||||||||||||||
Taxes other than income taxes | 11.8 | 12.0 | 34.9 | 34.1 | |||||||||||||||
Total operating expenses | 289.0 | 297.0 | 972.0 | 879.0 | |||||||||||||||
OPERATING INCOME | 28.5 | 29.2 | 120.0 | 124.4 | |||||||||||||||
OTHER INCOME: | |||||||||||||||||||
Equity in earnings of unconsolidated affiliates | (2.2 | ) | 0.7 | 11.5 | 7.1 | ||||||||||||||
Other - net | (8.2 | ) | 1.6 | (6.1 | ) | 4.0 | |||||||||||||
Total other income | (10.4 | ) | 2.3 | 5.4 | 11.1 | ||||||||||||||
INTEREST EXPENSE | 21.9 | 19.7 | 45.7 | 39.8 | |||||||||||||||
INCOME BEFORE INCOME TAXES | (3.8 | ) | 11.8 | 79.7 | 95.7 | ||||||||||||||
INCOME TAXES | (8.1 | ) | (1.6 | ) | 17.8 | 26.2 | |||||||||||||
NET INCOME | $ | 4.3 | $ | 13.4 | $ | 61.9 | $ | 69.5 | |||||||||||
AVERAGE COMMON SHARES OUTSTANDING | 75.7 | 75.6 | 75.7 | 75.6 | |||||||||||||||
DILUTED COMMON SHARES OUTSTANDING | 76.0 | 76.1 | 76.1 | 76.2 | |||||||||||||||
EARNINGS PER SHARE OF COMMON STOCK | |||||||||||||||||||
BASIC | $ | 0.06 | $ | 0.18 | $ | 0.82 | $ | 0.92 | |||||||||||
DILUTED | $ | 0.06 | $ | 0.18 | $ | 0.81 | $ | 0.91 |
VECTREN UTILITY HOLDINGS | |||||||||||||||||||
AND SUBSIDIARY COMPANIES | |||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||||
(Millions - Unaudited) | |||||||||||||||||||
Three Months | Six Months | ||||||||||||||||||
Ended June 30 | Ended June 30 | ||||||||||||||||||
2006 | 2005 | 2006 | 2005 | ||||||||||||||||
OPERATING REVENUES: | |||||||||||||||||||
Gas utility | $ | 159.1 | $ | 186.0 | $ | 731.8 | $ | 702.7 | |||||||||||
Electric utility | 96.0 | 96.9 | 201.2 | 191.6 | |||||||||||||||
Other | 0.5 | 0.1 | 0.9 | 0.3 | |||||||||||||||
Total operating revenues | 255.6 | 283.0 | 933.9 | 894.6 | |||||||||||||||
OPERATING EXPENSES: | |||||||||||||||||||
Cost of gas sold | 88.5 | 116.3 | 517.5 | 487.2 | |||||||||||||||
Fuel for electric generation | 30.9 | 33.0 | 69.0 | 62.2 | |||||||||||||||
Other operating | 59.6 | 59.2 | 121.2 | 120.8 | |||||||||||||||
Depreciation and amortization | 37.7 | 34.5 | 74.8 | 67.9 | |||||||||||||||
Taxes other than income taxes | 11.6 | 11.7 | 34.4 | 33.5 | |||||||||||||||
Total operating expenses | 228.3 | 254.7 | 816.9 | 771.6 | |||||||||||||||
OPERATING INCOME | 27.3 | 28.3 | 117.0 | 123.0 | |||||||||||||||
OTHER INCOME - NET | 1.9 | 1.1 | 2.8 | 3.3 | |||||||||||||||
INTEREST EXPENSE | 18.2 | 16.4 | 38.2 | 33.3 | |||||||||||||||
INCOME BEFORE INCOME TAXES | 11.0 | 13.0 | 81.6 | 93.0 | |||||||||||||||
INCOME TAXES | 3.9 | 5.2 | 31.1 | 37.1 | |||||||||||||||
NET INCOME | $ | 7.1 | $ | 7.8 | $ | 50.5 | $ | 55.9 |
VECTREN CORPORATION | |||||||
AND SUBSIDIARY COMPANIES | |||||||
CONSOLIDATED BALANCE SHEETS | |||||||
(Millions - Unaudited) | |||||||
June 30, | December 31, | ||||||
2006 | 2005 | ||||||
ASSETS | |||||||
Current Assets | |||||||
Cash & cash equivalents | $ | 6.7 | $ | 20.4 | |||
Accounts receivable - less reserves of $4.4 & | |||||||
$2.8, respectively | 116.4 | 197.8 | |||||
Accrued unbilled revenues | 46.7 | 240.6 | |||||
Inventories | 125.6 | 144.6 | |||||
Recoverable fuel & natural gas costs | - | 15.4 | |||||
Prepayments & other current assets | 106.5 | 106.4 | |||||
Total current assets | 401.9 | 725.2 | |||||
Utility Plant | |||||||
Original cost | 3,726.2 | 3,632.0 | |||||
Less: accumulated depreciation & amortization | 1,420.7 | 1,380.1 | |||||
Net utility plant | 2,305.5 | 2,251.9 | |||||
Investments in unconsolidated affiliates | 187.3 | 214.7 | |||||
Other investments | 107.6 | 111.6 | |||||
Non-utility property - net | 243.3 | 240.3 | |||||
Goodwill - net | 207.1 | 207.1 | |||||
Regulatory assets | 102.7 | 89.9 | |||||
Other assets | 33.2 | 27.4 | |||||
TOTAL ASSETS | $ | 3,588.6 | $ | 3,868.1 | |||
LIABILITIES & SHAREHOLDERS' EQUITY | |||||||
Current Liabilities | |||||||
Accounts payable | $ | 92.8 | $ | 159.0 | |||
Accounts payable to affiliated companies | 49.9 | 162.3 | |||||
Refundable fuel & natural gas costs | 34.9 | 7.6 | |||||
Accrued liabilities | 131.7 | 156.6 | |||||
Short-term borrowings | 175.5 | 299.9 | |||||
Current maturities of long-term debt | 0.4 | 0.4 | |||||
Long-term debt subject to tender | - | 53.7 | |||||
Total current liabilities | 485.2 | 839.5 | |||||
Long-term Debt - Net of Current Maturities & | |||||||
Debt Subject to Tender | 1,251.7 | 1,198.0 | |||||
Deferred Income Taxes & Other Liabilities | |||||||
Deferred income taxes | 226.0 | 227.3 | |||||
Regulatory liabilities | 289.8 | 272.9 | |||||
Deferred credits & other liabilities | 191.0 | 186.7 | |||||
Total deferred credits & other liabilities | 706.8 | 686.9 | |||||
Minority Interest in Subsidiary | 0.4 | 0.4 | |||||
Common Shareholders' Equity | |||||||
Common stock (no par value) – issued & outstanding | |||||||
76.2 and 76.0 shares, respectively | 524.6 | 528.1 | |||||
Retained earnings | 644.0 | 628.8 | |||||
Accumulated other comprehensive loss | (24.1 | ) | (13.6 | ) | |||
Total common shareholders' equity | 1,144.5 | 1,143.3 | |||||
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY | $ | 3,588.6 | $ | 3,868.1 |
VECTREN CORPORATION | |||||||
AND SUBSIDIARY COMPANIES | |||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(Millions - Unaudited) | |||||||
Six Months | |||||||
Ended June 30 | |||||||
2006 | 2005 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net income | $ | 61.9 | $ | 69.5 | |||
Adjustments to reconcile net income to cash from operating activities: | |||||||
Depreciation & amortization | 83.5 | 75.6 | |||||
Deferred income taxes & investment tax credits | 0.6 | (0.1 | ) | ||||
Equity in earnings of unconsolidated affiliates | (11.5 | ) | (7.1 | ) | |||
Provision for uncollectible accounts | 8.0 | 9.9 | |||||
Expense portion of pension & postretirement periodic benefit cost | 5.4 | 6.5 | |||||
Other non-cash charges - net | 12.8 | (1.7 | ) | ||||
Changes in working capital accounts: | |||||||
Acounts receivable & accrued unbilled revenue | 268.1 | 189.7 | |||||
Inventories | 19.0 | 2.1 | |||||
Recoverable fuel & natural gas costs | 42.7 | 30.8 | |||||
Prepayments & other current assets | (1.9 | ) | 39.9 | ||||
Accounts payable, including to affiliated companies | (183.6 | ) | (113.3 | ) | |||
Accrued liabilities | (32.2 | ) | 4.8 | ||||
Uconsolidated affiliate dividends | 32.1 | 7.0 | |||||
Changes in noncurrent assets | (17.8 | ) | (3.3 | ) | |||
Changes in noncurrent liabilities | (11.2 | ) | (9.3 | ) | |||
Net cash flows from operating activities | 275.9 | 301.0 | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Proceeds from: | |||||||
Stock option exercises & other stock plans | 0.1 | - | |||||
Requirements for: | |||||||
Dividends on common stock | (46.2 | ) | (45.2 | ) | |||
Redemption of preferred stock of subsidiary | - | (0.1 | ) | ||||
Net change in short-term borrowings | (124.4 | ) | (159.5 | ) | |||
Net cash flows from financing activities | (170.5 | ) | (204.8 | ) | |||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Proceeds from: | |||||||
Unconsolidated affiliate distributions | 0.3 | 0.2 | |||||
Notes receivable & other collections | 2.8 | 0.8 | |||||
Requirements for: | |||||||
Capital expenditures, excluding AFUDC equity | (107.6 | ) | (90.5 | ) | |||
Unconsolidated affiliate investments | (14.2 | ) | (6.8 | ) | |||
Notes receivable & other investments | (0.4 | ) | - | ||||
Net cash flows from investing activities | (119.1 | ) | (96.3 | ) | |||
Net decrease in cash & cash equivalents | (13.7 | ) | (0.1 | ) | |||
Cash & cash equivalents at beginning of period | 20.4 | 9.6 | |||||
Cash & cash equivalents at end of period | $ | 6.7 | $ | 9.5 |
VECTREN CORPORATION | |||||||||||||||||||
AND SUBSIDIARY COMPANIES | |||||||||||||||||||
HIGHLIGHTS | |||||||||||||||||||
(Millions - Unaudited) | |||||||||||||||||||
Three Months | Six Months | ||||||||||||||||||
Ended June 30 | Ended June 30 | ||||||||||||||||||
2006 | 2005 | 2006 | 2005 | ||||||||||||||||
REPORTED EARNINGS: | |||||||||||||||||||
Utility Group | $ | 7.1 | $ | 7.8 | $ | 50.5 | $ | 55.9 | |||||||||||
Non-utility Group | |||||||||||||||||||
Energy Marketing and Services | 0.3 | 1.0 | 13.2 | 8.1 | |||||||||||||||
Mining Operations | 0.9 | 1.3 | 2.7 | 2.6 | |||||||||||||||
Energy Infrastructure Services | 0.8 | 0.2 | (0.4 | ) | (1.9 | ) | |||||||||||||
Other Businesses | 0.2 | (0.2 | ) | 0.2 | (0.7 | ) | |||||||||||||
Total Non-utility Operations | 2.2 | 2.3 | 15.7 | 8.1 | |||||||||||||||
Corporate and Other | - | (0.1 | ) | - | (1.0 | ) | |||||||||||||
Sub-Total Operations | 9.3 | 10.0 | 66.2 | 63.0 | |||||||||||||||
Synfuels-related | (5.0 | ) | 3.4 | (4.3 | ) | 6.5 | |||||||||||||
Vectren Consolidated | $ | 4.3 | $ | 13.4 | $ | 61.9 | $ | 69.5 |
VECTREN CORPORATION | |||||||||||||||||||
AND SUBSIDIARY COMPANIES | |||||||||||||||||||
SELECTED GAS DISTRIBUTION | |||||||||||||||||||
OPERATING STATISTICS | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
Three Months | Six Months | ||||||||||||||||||
Ended June 30 | Ended June 30 | ||||||||||||||||||
2006 | 2005 | 2006 | 2005 | ||||||||||||||||
GAS OPERATING REVENUES (Millions): | |||||||||||||||||||
Residential | $ | 101.9 | $ | 120.4 | $ | 486.5 | $ | 468.9 | |||||||||||
Commercial | 40.8 | 48.1 | 202.9 | 194.7 | |||||||||||||||
Industrial | 12.6 | 12.7 | 34.7 | 31.7 | |||||||||||||||
Miscellaneous Revenue | 3.8 | 4.8 | 7.7 | 7.4 | |||||||||||||||
$ | 159.1 | $ | 186.0 | $ | 731.8 | $ | 702.7 | ||||||||||||
GAS MARGIN (Millions): | |||||||||||||||||||
Residential | $ | 44.4 | $ | 45.2 | $ | 137.3 | $ | 140.0 | |||||||||||
Commercial | 12.6 | 12.7 | 44.4 | 45.6 | |||||||||||||||
Industrial | 9.8 | 9.7 | 24.7 | 25.3 | |||||||||||||||
Miscellaneous | 3.8 | 2.1 | 7.9 | 4.6 | |||||||||||||||
$ | 70.6 | $ | 69.7 | $ | 214.3 | $ | 215.5 | ||||||||||||
GAS SOLD & TRANSPORTED (MMDth): | |||||||||||||||||||
Residential | 7.7 | 9.2 | 39.4 | 47.6 | |||||||||||||||
Commercial | 3.7 | 4.3 | 17.3 | 20.9 | |||||||||||||||
Industrial | 18.0 | 19.2 | 43.5 | 46.0 | |||||||||||||||
29.4 | 32.7 | 100.2 | 114.5 | ||||||||||||||||
AVERAGE GAS CUSTOMERS | |||||||||||||||||||
Residential | 890,674 | 885,954 | 898,361 | 893,186 | |||||||||||||||
Commercial | 83,179 | 82,870 | 83,823 | 83,586 | |||||||||||||||
Industrial | 1,643 | 1,635 | 1,650 | 1,606 | |||||||||||||||
975,496 | 970,459 | 983,834 | 978,378 | ||||||||||||||||
YTD WEATHER AS A PERCENT OF NORMAL: | |||||||||||||||||||
Heating Degree Days | 81 | % | 88 | % | 83 | % | 92 | % |
VECTREN CORPORATION | |||||||||||||||||||
AND SUBSIDIARY COMPANIES | |||||||||||||||||||
SELECTED ELECTRIC | |||||||||||||||||||
OPERATING STATISTICS | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
Three Months | Six Months | ||||||||||||||||||
Ended June 30 | Ended June 30 | ||||||||||||||||||
2006 | 2005 | 2006 | 2005 | ||||||||||||||||
ELECTRIC OPERATING REVENUES (Millions): | |||||||||||||||||||
Residential | $ | 27.9 | $ | 29.7 | $ | 58.1 | $ | 58.1 | |||||||||||
Commercial | 22.6 | 23.7 | 44.5 | 44.0 | |||||||||||||||
Industrial | 30.5 | 29.8 | 60.8 | 55.8 | |||||||||||||||
Municipals | 6.6 | 6.6 | 12.2 | 12.2 | |||||||||||||||
Miscellaneous Revenue | 3.0 | 1.5 | 5.9 | 2.4 | |||||||||||||||
Total Retail | 90.6 | 91.3 | 181.5 | 172.5 | |||||||||||||||
Net Wholesale Revenues | 5.4 | 5.6 | 19.7 | 19.1 | |||||||||||||||
$ | 96.0 | $ | 96.9 | $ | 201.2 | $ | 191.6 | ||||||||||||
ELECTRIC MARGIN (Millions): | |||||||||||||||||||
Residential | $ | 21.9 | $ | 22.9 | $ | 44.4 | $ | 45.0 | |||||||||||
Commercial | 16.5 | 16.8 | 31.9 | 31.8 | |||||||||||||||
Industrial | 17.9 | 16.3 | 34.5 | 31.6 | |||||||||||||||
Municipals | 3.9 | 3.5 | 6.6 | 6.8 | |||||||||||||||
Miscellaneous | 2.9 | 1.6 | 5.7 | 2.4 | |||||||||||||||
Total Retail | 63.1 | 61.1 | 123.1 | 117.6 | |||||||||||||||
Net Wholesale Margin | 2.0 | 2.8 | 9.1 | 11.8 | |||||||||||||||
$ | 65.1 | $ | 63.9 | $ | 132.2 | $ | 129.4 | ||||||||||||
ELECTRICITY SOLD (GWh): | |||||||||||||||||||
Residential | 317.3 | 329.0 | 672.7 | 691.3 | |||||||||||||||
Commercial | 331.1 | 336.5 | 632.7 | 640.1 | |||||||||||||||
Industrial | 671.3 | 651.1 | 1,309.2 | 1,270.0 | |||||||||||||||
Municipals | 156.9 | 169.4 | 302.2 | 319.0 | |||||||||||||||
Miscellaneous Sales | 4.4 | 4.3 | 9.6 | 9.1 | |||||||||||||||
Total Retail | 1,481.0 | 1,490.3 | 2,926.4 | 2,929.5 | |||||||||||||||
Wholesale | 189.7 | 632.9 | 652.3 | 1,696.9 | |||||||||||||||
1,670.7 | 2,123.2 | 3,578.7 | 4,626.4 | ||||||||||||||||
AVERAGE ELECTRIC CUSTOMERS | |||||||||||||||||||
Residential | 120,869 | 119,720 | 120,893 | 119,776 | |||||||||||||||
Commercial | 18,796 | 18,695 | 18,764 | 18,661 | |||||||||||||||
Industrial | 107 | 107 | 107 | 106 | |||||||||||||||
All Others | 49 | 55 | 50 | 55 | |||||||||||||||
139,821 | 138,577 | 139,814 | 138,598 | ||||||||||||||||
YTD WEATHER AS A PERCENT OF NORMAL: | |||||||||||||||||||
Cooling Degree Days | 94 | % | 93 | % | 94 | % | 92 | % | |||||||||||
Heating Degree Days | 81 | % | 88 | % | 83 | % | 92 | % |