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, | ||||||||||||||||||
2006 | 2005 | 2006 | 2005 | ||||||||||||||||
OPERATING REVENUES: | |||||||||||||||||||
Gas utility | $ | 116.8 | $ | 136.8 | $ | 848.6 | $ | 839.5 | |||||||||||
Electric utility | 123.2 | 128.7 | 324.4 | 320.3 | |||||||||||||||
Nonutility revenues | 100.5 | 45.3 | 259.5 | 154.4 | |||||||||||||||
Total operating revenues | 340.5 | 310.8 | 1,432.5 | 1,314.2 | |||||||||||||||
OPERATING EXPENSES: | |||||||||||||||||||
Cost of gas sold | 59.9 | 81.6 | 577.4 | 568.8 | |||||||||||||||
Cost of fuel and purchased power | 46.8 | 48.1 | 115.8 | 110.3 | |||||||||||||||
Cost of nonutility revenues | 48.8 | 32.5 | 174.8 | 115.5 | |||||||||||||||
Other operating | 101.8 | 67.2 | 242.9 | 204.1 | |||||||||||||||
Depreciation and amortization | 44.0 | 41.2 | 127.5 | 116.8 | |||||||||||||||
Taxes other than income taxes | 10.8 | 10.3 | 45.7 | 44.4 | |||||||||||||||
Total operating expenses | 312.1 | 280.9 | 1,284.1 | 1,159.9 | |||||||||||||||
OPERATING INCOME | 28.4 | 29.9 | 148.4 | 154.3 | |||||||||||||||
OTHER INCOME: | |||||||||||||||||||
Equity in earnings of unconsolidated affiliates | 3.2 | 5.4 | 14.7 | 12.5 | |||||||||||||||
Other - net | 1.6 | 1.6 | (4.5 | ) | 5.6 | ||||||||||||||
Total other income | 4.8 | 7.0 | 10.2 | 18.1 | |||||||||||||||
INTEREST EXPENSE | 24.2 | 21.0 | 69.9 | 60.8 | |||||||||||||||
INCOME BEFORE INCOME TAXES | 9.0 | 15.9 | 88.7 | 111.6 | |||||||||||||||
INCOME TAXES | (3.0 | ) | (0.6 | ) | 14.8 | 25.6 | |||||||||||||
NET INCOME | $ | 12.0 | $ | 16.5 | $ | 73.9 | $ | 86.0 | |||||||||||
AVERAGE COMMON SHARES OUTSTANDING | 75.7 | �� | 75.7 | 75.7 | 75.6 | ||||||||||||||
DILUTED COMMON SHARES OUTSTANDING | 76.0 | 76.2 | 76.0 | 76.2 | |||||||||||||||
EARNINGS PER SHARE OF COMMON STOCK | |||||||||||||||||||
BASIC | $ | 0.16 | $ | 0.22 | $ | 0.98 | $ | 1.14 | |||||||||||
DILUTED | $ | 0.16 | $ | 0.22 | $ | 0.97 | $ | 1.13 |
VECTREN UTILITY HOLDINGS | |||||||||||||||||||
AND SUBSIDIARY COMPANIES | |||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||||
(Millions) | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
Three Months | Nine Months | ||||||||||||||||||
Ended September 30, | Ended September 30, | ||||||||||||||||||
2006 | 2005 | 2006 | 2005 | ||||||||||||||||
OPERATING REVENUES: | |||||||||||||||||||
Gas utility | $ | 116.8 | $ | 136.8 | $ | 848.6 | $ | 839.5 | |||||||||||
Electric utility | 123.2 | 128.7 | 324.4 | 320.3 | |||||||||||||||
Other | 0.5 | 0.2 | 1.4 | 0.5 | |||||||||||||||
Total operating revenues | 240.5 | 265.7 | 1,174.4 | 1,160.3 | |||||||||||||||
OPERATING EXPENSES: | |||||||||||||||||||
Cost of gas sold | 59.9 | 81.6 | 577.4 | 568.8 | |||||||||||||||
Fuel for electric generation | 46.8 | 48.1 | 115.8 | 110.3 | |||||||||||||||
Other operating | 61.6 | 58.9 | 182.8 | 179.7 | |||||||||||||||
Depreciation and amortization | 38.0 | 36.3 | 112.8 | 104.2 | |||||||||||||||
Taxes other than income taxes | 10.5 | 10.1 | 44.9 | 43.6 | |||||||||||||||
Total operating expenses | 216.8 | 235.0 | 1,033.7 | 1,006.6 | |||||||||||||||
OPERATING INCOME | 23.7 | 30.7 | 140.7 | 153.7 | |||||||||||||||
OTHER INCOME - NET | 2.0 | 1.3 | 4.8 | 4.6 | |||||||||||||||
INTEREST EXPENSE | 19.2 | 17.5 | 57.4 | 50.8 | |||||||||||||||
INCOME BEFORE INCOME TAXES | 6.5 | 14.5 | 88.1 | 107.5 | |||||||||||||||
INCOME TAXES | - | 5.6 | 31.1 | 42.7 | |||||||||||||||
NET INCOME | $ | 6.5 | $ | 8.9 | $ | 57.0 | $ | 64.8 |
VECTREN CORPORATION | |||||||||||||||||||
AND SUBSIDIARY COMPANIES | |||||||||||||||||||
HIGHLIGHTS | |||||||||||||||||||
(millions, except per share amounts) | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
Three Months | Nine Months | ||||||||||||||||||
Ended September 30, | Ended September 30, | ||||||||||||||||||
2006 | 2005 | 2006 | 2005 | ||||||||||||||||
REPORTED EARNINGS: | |||||||||||||||||||
Utility Group | $ | 6.5 | $ | 8.9 | $ | 57.0 | $ | 64.8 | |||||||||||
Non-utility Group | |||||||||||||||||||
Energy Marketing and Services | (0.2 | ) | 3.0 | 13.0 | 11.1 | ||||||||||||||
Mining Operations | 1.6 | 1.6 | 4.3 | 4.2 | |||||||||||||||
Energy Infrastructure Services | 3.6 | 1.3 | 3.2 | (0.6 | ) | ||||||||||||||
Other Businesses | (0.1 | ) | (0.7 | ) | 0.1 | (1.4 | ) | ||||||||||||
Total Non-utility Operations | 4.9 | 5.2 | 20.6 | 13.3 | |||||||||||||||
Corporate and Other | - | (0.9 | ) | - | (1.9 | ) | |||||||||||||
Sub-Total Operations | 11.4 | 13.2 | 77.6 | 76.2 | |||||||||||||||
Synfuels-related | 0.6 | 3.3 | (3.7 | ) | 9.8 | ||||||||||||||
Vectren Consolidated | $ | 12.0 | $ | 16.5 | $ | 73.9 | $ | 86.0 |
VECTREN CORPORATION | |||||||||||||||||||
AND SUBSIDIARY COMPANIES | |||||||||||||||||||
SELECTED GAS DISTRIBUTION | |||||||||||||||||||
OPERATING STATISTICS | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
Three Months | Nine Months | ||||||||||||||||||
Ended September 30, | Ended September 30, | ||||||||||||||||||
2006 | 2005 | 2006 | 2005 | ||||||||||||||||
GAS OPERATING REVENUES (Millions): | |||||||||||||||||||
Residential | $ | 68.7 | $ | 80.4 | $ | 555.2 | $ | 549.3 | |||||||||||
Commercial | 33.5 | 41.6 | 236.4 | 236.3 | |||||||||||||||
Industrial | 12.4 | 13.9 | 47.1 | 45.6 | |||||||||||||||
Miscellaneous Revenue | 2.2 | 0.9 | 9.9 | 8.3 | |||||||||||||||
$ | 116.8 | $ | 136.8 | $ | 848.6 | $ | 839.5 | ||||||||||||
GAS MARGIN (Millions): | |||||||||||||||||||
Residential | $ | 34.6 | $ | 34.8 | $ | 171.9 | $ | 174.8 | |||||||||||
Commercial | 10.2 | 10.0 | 54.6 | 55.6 | |||||||||||||||
Industrial | 9.5 | 9.1 | 34.2 | 34.4 | |||||||||||||||
Miscellaneous | 2.6 | 1.3 | 10.5 | 5.9 | |||||||||||||||
$ | 56.9 | $ | 55.2 | $ | 271.2 | $ | 270.7 | ||||||||||||
GAS SOLD & TRANSPORTED (MMDth): | |||||||||||||||||||
Residential | 4.1 | 4.0 | 43.5 | 51.6 | |||||||||||||||
Commercial | 2.9 | 2.8 | 20.2 | 23.7 | |||||||||||||||
Industrial | 17.7 | 17.4 | 61.2 | 63.4 | |||||||||||||||
24.7 | 24.2 | 124.9 | 138.7 | ||||||||||||||||
AVERAGE GAS CUSTOMERS | |||||||||||||||||||
Residential | 882,366 | 877,273 | 893,029 | 887,883 | |||||||||||||||
Commercial | 82,358 | 81,967 | 83,334 | 83,046 | |||||||||||||||
Industrial | 1,636 | 1,638 | 1,645 | 1,616 | |||||||||||||||
966,360 | 960,878 | 978,008 | 972,545 | ||||||||||||||||
YTD WEATHER AS A PERCENT OF NORMAL: | |||||||||||||||||||
Heating Degree Days | 84 | % | 91 | % |
VECTREN CORPORATION | |||||||||||||||||||
AND SUBSIDIARY COMPANIES | |||||||||||||||||||
SELECTED ELECTRIC | |||||||||||||||||||
OPERATING STATISTICS | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
Three Months | Nine Months | ||||||||||||||||||
Ended September 30, | Ended September 30, | ||||||||||||||||||
2006 | 2005 | 2006 | 2005 | ||||||||||||||||
ELECTRIC OPERATING REVENUES (Millions): | |||||||||||||||||||
Residential | $ | 43.6 | $ | 48.1 | $ | 101.7 | $ | 106.2 | |||||||||||
Commercial | 27.7 | 28.1 | 72.2 | 72.1 | |||||||||||||||
Industrial | 36.2 | 34.1 | 97.0 | 89.9 | |||||||||||||||
Municipals | 7.8 | 7.8 | 20.0 | 20.0 | |||||||||||||||
Miscellaneous Revenue | 3.2 | 1.9 | 9.1 | 4.3 | |||||||||||||||
Total Retail | 118.5 | 120.0 | 300.0 | 292.5 | |||||||||||||||
Net Wholesale Revenues | 4.7 | 8.7 | 24.4 | 27.8 | |||||||||||||||
$ | 123.2 | $ | 128.7 | $ | 324.4 | $ | 320.3 | ||||||||||||
ELECTRIC MARGIN (Millions): | |||||||||||||||||||
Residential | $ | 31.3 | $ | 35.6 | $ | 75.7 | $ | 80.6 | |||||||||||
Commercial | 18.0 | 18.8 | 49.9 | 50.6 | |||||||||||||||
Industrial | 18.9 | 18.0 | 53.4 | 49.6 | |||||||||||||||
Municipals | 3.5 | 3.2 | 10.1 | 10.0 | |||||||||||||||
Miscellaneous | 3.1 | 1.7 | 8.8 | 4.1 | |||||||||||||||
Total Retail | 74.8 | 77.3 | 197.9 | 194.9 | |||||||||||||||
Net Wholesale Margin | 1.6 | 3.3 | 10.7 | 15.1 | |||||||||||||||
$ | 76.4 | $ | 80.6 | $ | 208.6 | $ | 210.0 | ||||||||||||
ELECTRICITY SOLD (GWh): | |||||||||||||||||||
Residential | 474.6 | 536.8 | 1,147.3 | 1,228.1 | |||||||||||||||
Commercial | 372.4 | 395.8 | 1,005.1 | 1,035.9 | |||||||||||||||
Industrial | 674.7 | 684.9 | 1,983.9 | 1,954.9 | |||||||||||||||
Municipals | 178.1 | 200.5 | 480.3 | 519.5 | |||||||||||||||
Miscellaneous Sales | 4.8 | 4.7 | 14.4 | 13.8 | |||||||||||||||
Total Retail | 1,704.6 | 1,822.7 | 4,631.0 | 4,752.2 | |||||||||||||||
Wholesale | 110.8 | 727.0 | 763.1 | 2,423.9 | |||||||||||||||
1,815.4 | 2,549.7 | 5,394.1 | 7,176.1 | ||||||||||||||||
AVERAGE ELECTRIC CUSTOMERS | |||||||||||||||||||
Residential | 121,263 | 120,077 | 121,016 | 119,877 | |||||||||||||||
Commercial | 18,865 | 18,718 | 18,798 | 18,680 | |||||||||||||||
Industrial | 107 | 106 | 107 | 106 | |||||||||||||||
All Others | 45 | 54 | 49 | 55 | |||||||||||||||
140,280 | 138,955 | 139,970 | 138,718 | ||||||||||||||||
YTD WEATHER AS A PERCENT OF NORMAL: | |||||||||||||||||||
Cooling Degree Days | 95 | % | 114 | % | 95 | % | 107 | % | |||||||||||
Heating Degree Days | 84 | % | 91 | % |
VECTREN CORPORATION | ||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||||
(Millions - Unaudited) | ||||||||||
September 30, | December 31, | |||||||||
2006 | 2005 | |||||||||
ASSETS | ||||||||||
Current Assets | ||||||||||
Cash & cash equivalents | $ | 6.6 | $ | 20.4 | ||||||
Accounts receivable - less reserves of $3.8 & | ||||||||||
$2.8, respectively | 128.9 | 197.8 | ||||||||
Accrued unbilled revenues | 50.0 | 240.6 | ||||||||
Inventories | 188.9 | 144.6 | ||||||||
Recoverable fuel & natural gas costs | - | 15.4 | ||||||||
Prepayments & other current assets | 136.4 | 106.4 | ||||||||
Total current assets | 510.8 | 725.2 | ||||||||
Utility Plant | ||||||||||
Original cost | 3,777.7 | 3,632.0 | ||||||||
Less: accumulated depreciation & amortization | 1,441.0 | 1,380.1 | ||||||||
Net utility plant | 2,336.7 | 2,251.9 | ||||||||
Investments in unconsolidated affiliates | 177.2 | 214.7 | ||||||||
Other investments | 107.6 | 111.6 | ||||||||
Non-utility property - net | 283.2 | 240.3 | ||||||||
Goodwill - net | 238.1 | 207.1 | ||||||||
Regulatory assets | 112.8 | 89.9 | ||||||||
Other assets | 52.4 | 27.4 | ||||||||
TOTAL ASSETS | $ | 3,818.8 | $ | 3,868.1 | ||||||
LIABILITIES & SHAREHOLDERS' EQUITY | ||||||||||
Current Liabilities | ||||||||||
Accounts payable | $ | 150.3 | $ | 159.0 | ||||||
Accounts payable to affiliated companies | 42.2 | 162.3 | ||||||||
Refundable fuel & natural gas costs | 24.1 | 7.6 | ||||||||
Accrued liabilities | 133.7 | 156.6 | ||||||||
Short-term borrowings | 332.2 | 299.9 | ||||||||
Current maturities of long-term debt | 24.3 | 0.4 | ||||||||
Long-term debt subject to tender | - | 53.7 | ||||||||
Total current liabilities | 706.8 | 839.5 | ||||||||
Long-term Debt - Net of Current Maturities & | ||||||||||
Debt Subject to Tender | 1,251.8 | 1,198.0 | ||||||||
Deferred Income Taxes & Other Liabilities | ||||||||||
Deferred income taxes | 233.9 | 227.3 | ||||||||
Regulatory liabilities | 289.4 | 272.9 | ||||||||
Deferred credits & other liabilities | 197.6 | 186.7 | ||||||||
Total deferred credits & other liabilities | 720.9 | 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 | 524.8 | 528.1 | ||||||||
Retained earnings | 632.7 | 628.8 | ||||||||
Accumulated other comprehensive loss | (18.6 | ) | (13.6 | ) | ||||||
Total common shareholders' equity | 1,138.9 | 1,143.3 | ||||||||
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY | $ | 3,818.8 | $ | 3,868.1 |
VECTREN CORPORATION | ||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||
(Millions - Unaudited) | ||||||||||
Nine Months Ended | ||||||||||
September 30, | ||||||||||
2006 | 2005 | |||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||
Net income | $ | 73.9 | $ | 86.0 | ||||||
Adjustments to reconcile net income to cash from operating activities: | ||||||||||
Depreciation & amortization | 127.5 | 116.8 | ||||||||
Deferred income taxes & investment tax credits | (1.6 | ) | (5.5 | ) | ||||||
Equity in earnings of unconsolidated affiliates | (14.7 | ) | (12.5 | ) | ||||||
Provision for uncollectible accounts | 12.4 | 10.8 | ||||||||
Expense portion of pension & postretirement periodic benefit cost | 8.1 | 9.7 | ||||||||
Other non-cash charges - net | 10.3 | 0.4 | ||||||||
Changes in working capital accounts: | ||||||||||
Accounts receivable & accrued unbilled revenue | 279.1 | 189.3 | ||||||||
Inventories | (43.0 | ) | (21.6 | ) | ||||||
Recoverable fuel & natural gas costs | 31.9 | 5.3 | ||||||||
Prepayments & other current assets | (29.7 | ) | (33.1 | ) | ||||||
Accounts payable, including to affiliated companies | (146.1 | ) | (66.6 | ) | ||||||
Accrued liabilities | (42.0 | ) | (12.8 | ) | ||||||
Unconsolidated affiliate dividends | 33.5 | 9.0 | ||||||||
Changes in noncurrent assets | (20.7 | ) | (5.7 | ) | ||||||
Changes in noncurrent liabilities | (15.3 | ) | (9.4 | ) | ||||||
Net cash flows from operating activities | 263.6 | 260.1 | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||
Proceeds from: | ||||||||||
Long-term debt - net of issuance costs | 0.1 | - | ||||||||
Requirements for: | ||||||||||
Dividends on common stock | (69.3 | ) | (67.3 | ) | ||||||
Retirement of long-term debt, including premiums paid | (0.4 | ) | (0.4 | ) | ||||||
Other financing activities | (0.4 | ) | (0.6 | ) | ||||||
Net change in short-term borrowings | 32.3 | (43.3 | ) | |||||||
Net cash flows from financing activities | (37.7 | ) | (111.6 | ) | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||
Proceeds from: | ||||||||||
Unconsolidated affiliate distributions | 1.9 | 0.3 | ||||||||
Other collections | 2.9 | 0.9 | ||||||||
Requirements for: | ||||||||||
Capital expenditures, excluding AFUDC equity | (185.9 | ) | (140.6 | ) | ||||||
Unconsolidated affiliate investments | (16.7 | ) | (14.6 | ) | ||||||
Other investments | (41.9 | ) | - | |||||||
Net cash flows from investing activities | (239.7 | ) | (154.0 | ) | ||||||
Net decrease in cash & cash equivalents | (13.8 | ) | (5.5 | ) | ||||||
Cash & cash equivalents at beginning of period | 20.4 | 9.6 | ||||||||
Cash & cash equivalents at end of period | $ | 6.6 | $ | 4.1 |