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 | |||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||
OPERATING REVENUES: | ||||||||||||||||
Gas utility | $ | 114.0 | $ | 116.8 | $ | 890.0 | $ | 848.6 | ||||||||
Electric utility | 143.6 | 123.2 | 361.6 | 324.4 | ||||||||||||
Nonutility revenues | 123.8 | 100.5 | 385.5 | 259.5 | ||||||||||||
Total operating revenues | 381.4 | 340.5 | 1,637.1 | 1,432.5 | ||||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Cost of gas sold | 52.9 | 59.9 | 592.0 | 577.4 | ||||||||||||
Cost of fuel and purchased power | 50.5 | 46.8 | 129.5 | 115.8 | ||||||||||||
Cost of nonutility revenues | 57.5 | 48.8 | 210.2 | 174.8 | ||||||||||||
Other operating | 116.4 | 101.8 | 334.4 | 242.9 | ||||||||||||
Depreciation and amortization | 47.3 | 44.0 | 139.7 | 127.5 | ||||||||||||
Taxes other than income taxes | 11.7 | 10.8 | 50.9 | 45.7 | ||||||||||||
Total operating expenses | 336.3 | 312.1 | 1,456.7 | 1,284.1 | ||||||||||||
OPERATING INCOME | 45.1 | 28.4 | 180.4 | 148.4 | ||||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||||
Equity in earnings (losses) of unconsolidated affiliates | (4.0 | ) | 3.2 | 18.7 | 14.7 | |||||||||||
Other - net | 13.9 | 1.6 | 23.1 | (4.5 | ) | |||||||||||
Total other income (expense) | 9.9 | 4.8 | 41.8 | 10.2 | ||||||||||||
INTEREST EXPENSE | 25.7 | 24.2 | 74.1 | 69.9 | ||||||||||||
INCOME BEFORE INCOME TAXES | 29.3 | 9.0 | 148.1 | 88.7 | ||||||||||||
INCOME TAXES | 12.2 | (3.0 | ) | 44.9 | 14.8 | |||||||||||
NET INCOME | $ | 17.1 | $ | 12.0 | $ | 103.2 | $ | 73.9 | ||||||||
AVERAGE COMMON SHARES OUTSTANDING | 75.9 | 75.7 | 75.9 | 75.7 | ||||||||||||
DILUTED COMMON SHARES OUTSTANDING | 76.4 | 76.0 | 76.5 | 76.0 | ||||||||||||
EARNINGS PER SHARE OF COMMON STOCK | ||||||||||||||||
BASIC | $ | 0.23 | $ | 0.16 | $ | 1.36 | $ | 0.98 | ||||||||
DILUTED | $ | 0.22 | $ | 0.16 | $ | 1.35 | $ | 0.97 |
VECTREN UTILITY HOLDINGS | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
(Millions) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months | Nine Months | |||||||||||||||
Ended September 30 | Ended September 30 | |||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||
OPERATING REVENUES: | ||||||||||||||||
Gas utility | $ | 114.0 | $ | 116.8 | $ | 890.0 | $ | 848.6 | ||||||||
Electric utility | 143.6 | 123.2 | 361.6 | 324.4 | ||||||||||||
Other | 0.4 | 0.5 | 1.3 | 1.4 | ||||||||||||
Total operating revenues | 258.0 | 240.5 | 1,252.9 | 1,174.4 | ||||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Cost of gas sold | 52.9 | 59.9 | 592.0 | 577.4 | ||||||||||||
Cost of fuel and purchased power | 50.5 | 46.8 | 129.5 | 115.8 | ||||||||||||
Other operating | 65.6 | 61.6 | 198.4 | 182.8 | ||||||||||||
Depreciation and amortization | 40.4 | 38.0 | 119.4 | 112.8 | ||||||||||||
Taxes other than income taxes | 11.3 | 10.5 | 49.6 | 44.9 | ||||||||||||
Total operating expenses | 220.7 | 216.8 | 1,088.9 | 1,033.7 | ||||||||||||
OPERATING INCOME | 37.3 | 23.7 | 164.0 | 140.7 | ||||||||||||
OTHER INCOME - NET | 1.3 | 2.0 | 6.2 | 4.8 | ||||||||||||
INTEREST EXPENSE | 20.8 | 19.2 | 58.8 | 57.4 | ||||||||||||
INCOME BEFORE INCOME TAXES | 17.8 | 6.5 | 111.4 | 88.1 | ||||||||||||
INCOME TAXES | 7.1 | - | 41.8 | 31.1 | ||||||||||||
NET INCOME | $ | 10.7 | $ | 6.5 | $ | 69.6 | $ | 57.0 |
VECTREN CORPORATION | ||||||||
AND SUBSIDIARY COMPANIES | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(Millions - Unaudited) | ||||||||
September 30, | December 31, | |||||||
2007 | 2006 | |||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash & cash equivalents | $ | 11.2 | $ | 32.8 | ||||
Accounts receivable - less reserves of $3.7 & | ||||||||
$3.3, respectively | 145.2 | 198.6 | ||||||
Accrued unbilled revenues | 60.7 | 146.5 | ||||||
Inventories | 198.8 | 163.5 | ||||||
Recoverable fuel & natural gas costs | - | 1.8 | ||||||
Prepayments & other current assets | 132.1 | 172.7 | ||||||
Total current assets | 548.0 | 715.9 | ||||||
Utility Plant | ||||||||
Original cost | 3,990.8 | 3,820.2 | ||||||
Less: accumulated depreciation & amortization | 1,499.1 | 1,434.7 | ||||||
Net utility plant | 2,491.7 | 2,385.5 | ||||||
Investments in unconsolidated affiliates | 194.5 | 181.0 | ||||||
Other investments | 73.0 | 74.5 | ||||||
Nonutility property - net | 312.9 | 294.4 | ||||||
Goodwill - net | 238.0 | 237.8 | ||||||
Regulatory assets | 184.8 | 163.5 | ||||||
Other assets | 37.9 | 39.0 | ||||||
TOTAL ASSETS | $ | 4,080.8 | $ | 4,091.6 | ||||
LIABILITIES & SHAREHOLDERS' EQUITY | ||||||||
Current Liabilities | ||||||||
Accounts payable | $ | 164.8 | $ | 180.0 | ||||
Accounts payable to affiliated companies | 33.7 | 89.9 | ||||||
Refundable fuel & natural gas costs | 25.9 | 35.3 | ||||||
Accrued liabilities | 151.0 | 147.2 | ||||||
Short-term borrowings | 486.7 | 464.8 | ||||||
Current maturities of long-term debt | 17.8 | 24.2 | ||||||
Long-term debt subject to tender | 20.0 | 20.0 | ||||||
Total current liabilities | 899.9 | 961.4 | ||||||
Long-term Debt - Net of Current Maturities & | ||||||||
Debt Subject to Tender | 1,208.3 | 1,208.0 | ||||||
Deferred Income Taxes & Other Liabilities | ||||||||
Deferred income taxes | 256.6 | 260.7 | ||||||
Regulatory liabilities | 303.1 | 291.1 | ||||||
Deferred credits & other liabilities | 199.8 | 195.8 | ||||||
Total deferred credits & other liabilities | 759.5 | 747.6 | ||||||
Minority Interest in Subsidiary | 0.4 | 0.4 | ||||||
Common Shareholders' Equity | ||||||||
Common stock (no par value) – issued & outstanding | ||||||||
76.5 and 76.1 shares, respectively | 531.7 | 525.5 | ||||||
Retained earnings | 674.2 | 643.6 | ||||||
Accumulated other comprehensive income | 6.8 | 5.1 | ||||||
Total common shareholders' equity | 1,212.7 | 1,174.2 | ||||||
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY | $ | 4,080.8 | $ | 4,091.6 |
VECTREN CORPORATION | ||||||||
AND SUBSIDIARY COMPANIES | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Millions - Unaudited) | ||||||||
Nine months ended September 30, | ||||||||
2007 | 2006 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 103.2 | $ | 73.9 | ||||
Adjustments to reconcile net income to cash from operating activities: | ||||||||
Depreciation & amortization | 139.7 | 127.5 | ||||||
Deferred income taxes & investment tax credits | 18.0 | (1.6 | ) | |||||
Equity in earnings of unconsolidated affiliates | (18.7 | ) | (14.7 | ) | ||||
Provision for uncollectible accounts | 12.7 | 12.4 | ||||||
Expense portion of pension & postretirement periodic benefit cost | 7.3 | 8.1 | ||||||
Other non-cash charges - net | - | 10.3 | ||||||
Changes in working capital accounts: | ||||||||
Accounts receivable & accrued unbilled revenue | 126.5 | 279.1 | ||||||
Inventories | (35.3 | ) | (43.0 | ) | ||||
Recoverable/refundable fuel & natural gas costs | (7.6 | ) | 31.9 | |||||
Prepayments & other current assets | 2.5 | (29.7 | ) | |||||
Accounts payable, including to affiliated companies | (74.3 | ) | (146.1 | ) | ||||
Accrued liabilities | (15.0 | ) | (42.0 | ) | ||||
Unconsolidated affiliate dividends | 20.0 | 33.5 | ||||||
Changes in noncurrent assets | (13.5 | ) | (20.7 | ) | ||||
Changes in noncurrent liabilities | (33.3 | ) | (15.3 | ) | ||||
Net cash flows from operating activities | 232.2 | 263.6 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Proceeds from: | ||||||||
Long-term debt | - | 0.1 | ||||||
Stock option exercises | 5.2 | (0.4 | ) | |||||
Requirements for: | ||||||||
Dividends on common stock | (71.8 | ) | (69.3 | ) | ||||
Retirement of long-term debt, including premiums paid | (6.6 | ) | (0.4 | ) | ||||
Net change in short-term borrowings | 21.9 | 32.3 | ||||||
Net cash flows from financing activities | (51.3 | ) | (37.7 | ) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Proceeds from: | ||||||||
Unconsolidated affiliate distributions | 11.7 | 1.9 | ||||||
Other collections | 37.3 | 2.9 | ||||||
Requirements for: | ||||||||
Capital expenditures, excluding AFUDC equity | (239.0 | ) | (185.9 | ) | ||||
Unconsolidated affiliate investments | (12.4 | ) | (16.7 | ) | ||||
Other investments | (0.1 | ) | (41.9 | ) | ||||
Net cash flows from investing activities | (202.5 | ) | (239.7 | ) | ||||
Net decrease in cash & cash equivalents | (21.6 | ) | (13.8 | ) | ||||
Cash & cash equivalents at beginning of period | 32.8 | 20.4 | ||||||
Cash & cash equivalents at end of period | $ | 11.2 | $ | 6.6 |
VECTREN CORPORATION & #160; | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
HIGHLIGHTS | ||||||||||||||||
(millions, except per share amounts) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months | Nine Months | |||||||||||||||
Ended September 30 | Ended September 30 | |||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||
REPORTED EARNINGS: | ||||||||||||||||
Utility Group | $ | 10.7 | $ | 6.5 | $ | 69.6 | $ | 57.0 | ||||||||
Non-utility Group | ||||||||||||||||
Energy Marketing and Services | (2.0 | ) | (0.2 | ) | 15.6 | 13.0 | ||||||||||
Coal Mining | 0.4 | 1.6 | 2.7 | 4.3 | ||||||||||||
Energy Infrastructure Services | 4.6 | 3.6 | 6.6 | 3.2 | ||||||||||||
Other Businesses | 0.1 | (0.1 | ) | 0.2 | 0.1 | |||||||||||
Total Non-utility Operations | 3.1 | 4.9 | 25.1 | 20.6 | ||||||||||||
Corporate and Other | (0.2 | ) | - | 0.2 | - | |||||||||||
Sub-Total Operations | 13.6 | 11.4 | 94.9 | 77.6 | ||||||||||||
Synfuels-related | 3.5 | 0.6 | 8.3 | (3.7 | ) | |||||||||||
Vectren Consolidated | $ | 17.1 | $ | 12.0 | $ | 103.2 | $ | 73.9 |
VECTREN CORPORATION & #160; | ||||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||||
SELECTED GAS DISTRIBUTION | ||||||||||||||||||
OPERATING STATISTICS 160; | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
Three Months | Nine Months | |||||||||||||||||
Ended September 30 | Ended September 30 | |||||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||||
GAS OPERATING REVENUES (Millions): | ||||||||||||||||||
Residential | $ | 67.2 | $ | 68.7 | $ | 591.2 | $ | 555.2 | ||||||||||
Commercial | 30.9 | 33.5 | 240.7 | 236.4 | ||||||||||||||
Industrial | 12.1 | 12.4 | 47.5 | 47.1 | ||||||||||||||
Miscellaneous Revenue | 3.8 | 2.2 | 10.6 | 9.9 | ||||||||||||||
$ | 114.0 | $ | 116.8 | $ | 890.0 | $ | 848.6 | |||||||||||
GAS MARGIN (Millions): | ||||||||||||||||||
Residential | $ | 35.8 | $ | 34.6 | $ | 190.4 | $ | 171.9 | ||||||||||
Commercial | 10.1 | 10.2 | 59.4 | 54.6 | ||||||||||||||
Industrial | 9.2 | 9.5 | 34.9 | 34.2 | ||||||||||||||
Miscellaneous | 6.0 | 2.6 | 13.3 | 10.5 | ||||||||||||||
$ | 61.1 | $ | 56.9 | $ | 298.0 | $ | 271.2 | |||||||||||
GAS SOLD & TRANSPORTED (MMDth): | ||||||||||||||||||
Residential | 3.8 | 4.1 | 51.7 | 43.5 | ||||||||||||||
Commercial | 2.6 | 2.9 | 23.4 | 20.2 | ||||||||||||||
Industrial | 18.0 | 17.7 | 62.5 | 61.2 | ||||||||||||||
24.4 | 24.7 | 137.6 | 124.9 | |||||||||||||||
AVERAGE GAS CUSTOMERS | ||||||||||||||||||
Residential | 889,257 | 882,366 | 899,926 | 893,029 | ||||||||||||||
Commercial | 82,870 | 82,358 | 83,790 | 83,334 | ||||||||||||||
Industrial | 1,655 | 1,636 | 1,643 | 1,645 | ||||||||||||||
973,782 | 966,360 | 985,359 | 978,008 | |||||||||||||||
YTD WEATHER AS A PERCENT OF NORMAL: | ||||||||||||||||||
Heating Degree Days (Ohio) | 96 | % | 87 | % |
VECTREN CORPORATION | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
SELECTED ELECTRIC 160; | ||||||||||||||||
OPERATING STATISTICS | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months | Nine Months | |||||||||||||||
Ended September 30 | Ended September 30 | |||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||
ELECTRIC OPERATING REVENUES (Millions): | ||||||||||||||||
Residential | $ | 56.2 | $ | 43.6 | $ | 123.2 | $ | 101.7 | ||||||||
Commercial | 34.3 | 27.7 | 84.0 | 72.2 | ||||||||||||
Industrial | 39.1 | 36.2 | 105.0 | 97.0 | ||||||||||||
Municipals | 8.3 | 7.8 | 20.1 | 20.0 | ||||||||||||
Miscellaneous Revenue | 0.9 | 3.2 | 5.6 | 9.1 | ||||||||||||
Total Retail | 138.8 | 118.5 | 337.9 | 300.0 | ||||||||||||
Net Wholesale Revenues | 4.8 | 4.7 | 23.7 | 24.4 | ||||||||||||
$ | 143.6 | $ | 123.2 | $ | 361.6 | $ | 324.4 | |||||||||
ELECTRIC MARGIN (Millions): | ||||||||||||||||
Residential | $ | 41.3 | $ | 31.3 | $ | 90.7 | $ | 75.7 | ||||||||
Commercial | 23.2 | 18.0 | 57.2 | 49.9 | ||||||||||||
Industrial | 21.6 | 18.9 | 56.4 | 53.4 | ||||||||||||
Municipals | 3.6 | 3.5 | 9.3 | 10.1 | ||||||||||||
Miscellaneous | 0.8 | 3.1 | 5.4 | 8.8 | ||||||||||||
Total Retail | 90.5 | 74.8 | 219.0 | 197.9 | ||||||||||||
Net Wholesale Margin | 2.6 | 1.6 | 13.1 | 10.7 | ||||||||||||
$ | 93.1 | $ | 76.4 | $ | 232.1 | $ | 208.6 | |||||||||
ELECTRICITY SOLD (GWh): | ||||||||||||||||
Residential | 547.7 | 474.6 | 1,290.3 | 1,147.3 | ||||||||||||
Commercial | 406.7 | 372.4 | 1,067.4 | 1,005.1 | ||||||||||||
Industrial | 638.7 | 674.7 | 1,942.4 | 1,983.9 | ||||||||||||
Municipals | 187.4 | 178.1 | 469.4 | 480.3 | ||||||||||||
Miscellaneous Sales | 4.7 | 4.8 | 14.1 | 14.4 | ||||||||||||
Total Retail | 1,785.2 | 1,704.6 | 4,783.6 | 4,631.0 | ||||||||||||
Wholesale | 96.5 | 110.8 | 544.1 | 763.1 | ||||||||||||
1,881.7 | 1,815.4 | 5,327.7 | 5,394.1 | |||||||||||||
AVERAGE ELECTRIC CUSTOMERS | ||||||||||||||||
Residential | 122,194 | 121,263 | 122,078 | 121,015 | ||||||||||||
Commercial | 18,489 | 18,428 | 18,478 | 18,361 | ||||||||||||
Industrial | 109 | 107 | 109 | 107 | ||||||||||||
All Others | 38 | 36 | 37 | 36 | ||||||||||||
140,830 | 139,834 | 140,702 | 139,519 | |||||||||||||
YTD WEATHER AS A PERCENT OF NORMAL: | ||||||||||||||||
Cooling Degree Days (Indiana) | 127 | % | 95 | % | 127 | % | 95 | % | ||||||||
Heating Degree Days (Indiana) | 90 | % | 84 | % |