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 | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
OPERATING REVENUES: | ||||||||||||||||
Gas utility | $ | 101.8 | $ | 93.4 | $ | 692.8 | $ | 759.9 | ||||||||
Electric utility | 173.2 | 143.0 | 469.1 | 400.7 | ||||||||||||
Nonutility | 147.7 | 113.2 | 403.5 | 359.7 | ||||||||||||
Total operating revenues | 422.7 | 349.6 | 1,565.4 | 1,520.3 | ||||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Cost of gas sold | 32.4 | 28.0 | 371.7 | 440.6 | ||||||||||||
Cost of fuel and purchased power | 64.5 | 50.1 | 180.3 | 147.4 | ||||||||||||
Cost of nonutility revenues | 60.7 | 36.2 | 170.6 | 153.7 | ||||||||||||
Other operating | 137.2 | 129.6 | 398.4 | 377.6 | ||||||||||||
Depreciation and amortization | 57.6 | 53.9 | 170.6 | 158.3 | ||||||||||||
Taxes other than income taxes | 11.7 | 11.3 | 46.9 | 48.0 | ||||||||||||
Total operating expenses | 364.1 | 309.1 | 1,338.5 | 1,325.6 | ||||||||||||
OPERATING INCOME | 58.6 | 40.5 | 226.9 | 194.7 | ||||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||||
Equity in earnings (losses) of unconsolidated affiliates | (8.2 | ) | (0.6 | ) | (13.9 | ) | (11.3 | ) | ||||||||
Other income - net | 1.6 | 4.1 | 2.0 | 10.6 | ||||||||||||
Total other income (expense) | (6.6 | ) | 3.5 | (11.9 | ) | (0.7 | ) | |||||||||
INTEREST EXPENSE | 26.0 | 25.8 | 78.0 | 74.0 | ||||||||||||
INCOME BEFORE INCOME TAXES | 26.0 | 18.2 | 137.0 | 120.0 | ||||||||||||
INCOME TAXES | 9.6 | 5.8 | 48.7 | 41.5 | ||||||||||||
NET INCOME | $ | 16.4 | $ | 12.4 | $ | 88.3 | $ | 78.5 | ||||||||
AVERAGE COMMON SHARES OUTSTANDING | 81.2 | 80.8 | 81.1 | 80.7 | ||||||||||||
DILUTED COMMON SHARES OUTSTANDING | 81.4 | 81.1 | 81.3 | 81.0 | ||||||||||||
EARNINGS PER SHARE OF COMMON STOCK | ||||||||||||||||
BASIC | $ | 0.20 | $ | 0.15 | $ | 1.09 | $ | 0.97 | ||||||||
DILUTED | $ | 0.20 | $ | 0.15 | $ | 1.09 | $ | 0.97 |
VECTREN UTILITY HOLDINGS | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
(Millions) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months | Nine Months | |||||||||||||||
Ended September 30 | Ended September 30 | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
OPERATING REVENUES: | ||||||||||||||||
Gas utility | $ | 101.8 | $ | 93.4 | $ | 692.8 | $ | 759.9 | ||||||||
Electric utility | 173.2 | 143.0 | 469.1 | 400.7 | ||||||||||||
Other | 0.4 | 0.4 | 1.2 | 1.2 | ||||||||||||
Total operating revenues | 275.4 | 236.8 | 1,163.1 | 1,161.8 | ||||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Cost of gas sold | 32.4 | 28.0 | 371.7 | 440.6 | ||||||||||||
Cost of fuel and purchased power | 64.5 | 50.1 | 180.3 | 147.4 | ||||||||||||
Other operating | 70.5 | 69.9 | 223.3 | 227.9 | ||||||||||||
Depreciation and amortization | 47.2 | 45.9 | 140.5 | 134.8 | ||||||||||||
Taxes other than income taxes | 11.2 | 10.8 | 45.1 | 46.2 | ||||||||||||
Total operating expenses | 225.8 | 204.7 | 960.9 | 996.9 | ||||||||||||
OPERATING INCOME | 49.6 | 32.1 | 202.2 | 164.9 | ||||||||||||
OTHER INCOME - NET | 0.9 | 2.1 | 3.9 | 6.1 | ||||||||||||
INTEREST EXPENSE | 20.4 | 20.2 | 61.0 | 58.9 | ||||||||||||
INCOME BEFORE INCOME TAXES | 30.1 | 14.0 | 145.1 | 112.1 | ||||||||||||
INCOME TAXES | 11.4 | 5.3 | 54.8 | 40.6 | ||||||||||||
NET INCOME | $ | 18.7 | $ | 8.7 | $ | 90.3 | $ | 71.5 |
VECTREN CORPORATION | ||||||||
AND SUBSIDIARY COMPANIES | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(Millions - Unaudited) | ||||||||
September 30, | December 31, | |||||||
2010 | 2009 | |||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash & cash equivalents | $ | 7.2 | $ | 11.9 | ||||
Accounts receivable - less reserves of $4.2 & | ||||||||
$5.2, respectively | 132.5 | 162.4 | ||||||
Accrued unbilled revenues | 54.7 | 144.7 | ||||||
Inventories | 188.3 | 167.8 | ||||||
Recoverable fuel & natural gas costs | 12.5 | - | ||||||
Prepayments & other current assets | 111.0 | 95.1 | ||||||
Total current assets | 506.2 | 581.9 | ||||||
Utility Plant | ||||||||
Original cost | 4,737.4 | 4,601.4 | ||||||
Less: accumulated depreciation & amortization | 1,808.7 | 1,722.6 | ||||||
Net utility plant | 2,928.7 | 2,878.8 | ||||||
Investments in unconsolidated affiliates | 124.9 | 186.2 | ||||||
Other utility and corporate investments | 32.5 | 33.2 | ||||||
Other nonutility investments | 40.9 | 46.2 | ||||||
Nonutility property - net | 485.5 | 482.6 | ||||||
Goodwill - net | 242.0 | 242.0 | ||||||
Regulatory assets | 185.7 | 187.9 | ||||||
Other assets | 33.7 | 33.0 | ||||||
TOTAL ASSETS | $ | 4,580.1 | $ | 4,671.8 | ||||
LIABILITIES & SHAREHOLDERS' EQUITY | ||||||||
Current Liabilities | ||||||||
Accounts payable | $ | 132.9 | $ | 183.8 | ||||
Accounts payable to affiliated companies | 23.5 | 54.1 | ||||||
Refundable fuel & natural gas costs | - | 22.3 | ||||||
Accrued liabilities | 183.5 | 174.7 | ||||||
Short-term borrowings | 157.3 | 213.5 | ||||||
Current maturities of long-term debt | 48.2 | 48.0 | ||||||
Long-term debt subject to tender | - | 51.3 | ||||||
Total current liabilities | 545.4 | 747.7 | ||||||
Long-term Debt - Net of Current Maturities & | ||||||||
Debt Subject to Tender | 1,590.3 | 1,540.5 | ||||||
Deferred Income Taxes & Other Liabilities | ||||||||
Deferred income taxes | 495.0 | 458.7 | ||||||
Regulatory liabilities | 331.6 | 322.1 | ||||||
Deferred credits & other liabilities | 207.0 | 205.6 | ||||||
Total deferred credits & other liabilities | 1,033.6 | 986.4 | ||||||
Common Shareholders' Equity | ||||||||
Common stock (no par value) – issued & outstanding | ||||||||
81.4 and 81.1 shares, respectively | 675.1 | 666.8 | ||||||
Retained earnings | 742.7 | 737.2 | ||||||
Accumulated other comprehensive income (loss) | (7.0 | ) | (6.8 | ) | ||||
Total common shareholders' equity | 1,410.8 | 1,397.2 | ||||||
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY | $ | 4,580.1 | $ | 4,671.8 |
VECTREN CORPORATION | ||||||||
AND SUBSIDIARY COMPANIES | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Millions - Unaudited) | ||||||||
For the nine months ended | ||||||||
September 30, | ||||||||
2010 | 2009 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 88.3 | $ | 78.5 | ||||
Adjustments to reconcile net income to cash from operating activities: | ||||||||
Depreciation & amortization | 170.6 | 158.3 | ||||||
Deferred income taxes & investment tax credits | 33.9 | 55.2 | ||||||
Equity in losses of unconsolidated affiliates | 13.9 | 11.3 | ||||||
Provision for uncollectible accounts | 13.2 | 15.3 | ||||||
Expense portion of pension & postretirement benefit cost | 6.7 | 7.8 | ||||||
Other non-cash charges - net | 19.4 | (1.0 | ) | |||||
Changes in working capital accounts: | ||||||||
Accounts receivable & accrued unbilled revenue | 106.7 | 234.0 | ||||||
Inventories | (20.5 | ) | (32.0 | ) | ||||
Recoverable/refundable fuel & natural gas costs | (34.8 | ) | 33.1 | |||||
Prepayments & other current assets | (16.4 | ) | 30.6 | |||||
Accounts payable, including to affiliated companies | (82.9 | ) | (169.9 | ) | ||||
Accrued liabilities | 15.7 | (17.4 | ) | |||||
Unconsolidated affiliate dividends | 42.7 | 11.3 | ||||||
Employer contributions to pension & postretirement plans | (12.4 | ) | (27.3 | ) | ||||
Changes in noncurrent assets | (9.8 | ) | (6.9 | ) | ||||
Changes in noncurrent liabilities | (11.9 | ) | (11.3 | ) | ||||
Net cash flows from operating activities | 322.4 | 369.6 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Proceeds from: | ||||||||
Dividend reinvestment plan & other common stock issuances | 7.2 | 4.5 | ||||||
Long-term debt, net of issuance costs | - | 311.6 | ||||||
Requirements for: | ||||||||
Dividends on common stock | (82.7 | ) | (81.2 | ) | ||||
Retirement of long-term debt | (2.1 | ) | (2.7 | ) | ||||
Net change in short-term borrowings | (56.2 | ) | (358.1 | ) | ||||
Net cash flows from financing activities | (133.8 | ) | (125.9 | ) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Proceeds from: | ||||||||
Unconsolidated affiliate distributions | 0.5 | - | ||||||
Other collections | 10.2 | 1.2 | ||||||
Requirements for: | ||||||||
Capital expenditures, excluding AFUDC equity | (200.9 | ) | (321.8 | ) | ||||
Unconsolidated affiliate investments | (0.2 | ) | (0.2 | ) | ||||
Other investments | (2.9 | ) | (0.8 | ) | ||||
Net cash flows from investing activities | (193.3 | ) | (321.6 | ) | ||||
Net change in cash & cash equivalents | (4.7 | ) | (77.9 | ) | ||||
Cash & cash equivalents at beginning of period | 11.9 | 93.2 | ||||||
Cash & cash equivalents at end of period | $ | 7.2 | $ | 15.3 |
VECTREN CORPORATION | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
HIGHLIGHTS | ||||||||||||||||
(millions, except per share amounts) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months | Nine Months | |||||||||||||||
Ended September 30 | Ended September 30 | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
REPORTED EARNINGS: | ||||||||||||||||
Utility Group | $ | 18.7 | $ | 8.7 | $ | 90.3 | $ | 71.5 | ||||||||
Nonutility Group | ||||||||||||||||
Energy Marketing and Services | (10.4 | ) | (4.8 | ) | (9.1 | ) | 6.0 | |||||||||
Charge related to Liberty Gas Storage Investment | - | - | - | (11.9 | ) | |||||||||||
Subtotal Energy Marketing and Services | (10.4 | ) | (4.8 | ) | (9.1 | ) | (5.9 | ) | ||||||||
Coal Mining | 2.5 | 4.0 | 8.1 | 7.4 | ||||||||||||
Energy Infrastructure Services | 6.0 | 4.6 | 6.4 | 7.6 | ||||||||||||
Other Businesses | (0.3 | ) | (0.5 | ) | (7.3 | ) | (2.3 | ) | ||||||||
Total Nonutility Group | (2.2 | ) | 3.3 | (1.9 | ) | 6.8 | ||||||||||
Corporate and Other | (0.1 | ) | 0.4 | (0.1 | ) | 0.2 | ||||||||||
Vectren Consolidated | $ | 16.4 | $ | 12.4 | $ | 88.3 | $ | 78.5 | ||||||||
REPORTED EPS | $ | 0.20 | $ | 0.15 | $ | 1.09 | $ | 0.97 |
VECTREN CORPORATION | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
SELECTED GAS DISTRIBUTION | ||||||||||||||||
OPERATING STATISTICS | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months | Nine Months | |||||||||||||||
Ended September 30 | Ended September 30 | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
GAS OPERATING REVENUES (Millions): | ||||||||||||||||
Residential | $ | 65.3 | $ | 59.9 | $ | 471.7 | $ | 517.1 | ||||||||
Commercial | 24.6 | 22.0 | 172.6 | 194.4 | ||||||||||||
Industrial | 10.8 | 10.1 | 40.6 | 39.1 | ||||||||||||
Other Revenue | 1.1 | 1.4 | 7.9 | 9.3 | ||||||||||||
$ | 101.8 | $ | 93.4 | $ | 692.8 | $ | 759.9 | |||||||||
GAS MARGIN (Millions): | ||||||||||||||||
Residential | $ | 45.8 | $ | 42.9 | $ | 213.2 | $ | 211.7 | ||||||||
Commercial | 11.7 | 11.9 | 62.4 | 64.2 | ||||||||||||
Industrial | 10.4 | �� | 9.0 | 36.8 | 33.4 | |||||||||||
Other | 1.5 | 1.6 | 8.7 | 10.0 | ||||||||||||
$ | 69.4 | $ | 65.4 | $ | 321.1 | $ | 319.3 | |||||||||
GAS SOLD & TRANSPORTED (MMDth): | ||||||||||||||||
Residential | 3.5 | 3.8 | 47.9 | 49.2 | ||||||||||||
Commercial | 2.4 | 2.5 | 21.5 | 22.3 | ||||||||||||
Industrial | 19.3 | 15.3 | 65.1 | 55.1 | ||||||||||||
25.2 | 21.6 | 134.5 | 126.6 | |||||||||||||
AVERAGE GAS CUSTOMERS | ||||||||||||||||
Residential | 886,200 | 882,860 | 896,375 | 895,030 | ||||||||||||
Commercial | 81,725 | 81,914 | 82,709 | 83,109 | ||||||||||||
Industrial | 1,642 | 1,622 | 1,632 | 1,622 | ||||||||||||
969,567 | 966,396 | 980,716 | 979,761 | |||||||||||||
YTD WEATHER AS A PERCENT OF NORMAL: | ||||||||||||||||
Heating Degree Days (Ohio) | 69 | % | 100 | % | 102 | % | 104 | % |
VECTREN CORPORATION | ||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||
SELECTED ELECTRIC | ||||||||||||||||
OPERATING STATISTICS | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months | Nine Months | |||||||||||||||
Ended September 30 | Ended September 30 | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
ELECTRIC OPERATING REVENUES (Millions): | ||||||||||||||||
Residential | $ | 66.1 | $ | 53.4 | $ | 164.0 | $ | 142.4 | ||||||||
Commercial | 40.7 | 36.9 | 113.6 | 105.6 | ||||||||||||
Industrial | 53.9 | 43.9 | 151.5 | 121.2 | ||||||||||||
Other Revenue | 2.1 | 1.6 | 5.5 | 4.6 | ||||||||||||
Total Retail | 162.8 | 135.8 | 434.6 | 373.8 | ||||||||||||
Net Wholesale Revenues | 10.4 | 7.2 | 34.5 | 26.9 | ||||||||||||
$ | 173.2 | $ | 143.0 | $ | 469.1 | $ | 400.7 | |||||||||
ELECTRIC MARGIN (Millions): | ||||||||||||||||
Residential | $ | 46.5 | $ | 38.8 | $ | 114.9 | $ | 102.2 | ||||||||
Commercial | 26.5 | 24.7 | 73.9 | 70.3 | ||||||||||||
Industrial | 26.9 | 22.3 | 74.1 | 61.2 | ||||||||||||
Other | 2.0 | 1.5 | 5.1 | 4.3 | ||||||||||||
Total Retail | 101.9 | 87.3 | 268.0 | 238.0 | ||||||||||||
Net Wholesale Margin | 6.8 | 5.6 | 20.8 | 15.3 | ||||||||||||
$ | 108.7 | $ | 92.9 | $ | 288.8 | $ | 253.3 | |||||||||
ELECTRICITY SOLD (GWh): | ||||||||||||||||
Residential | 511.4 | 421.4 | 1,278.8 | 1,134.0 | ||||||||||||
Commercial | 375.5 | 348.6 | 1,036.5 | 988.1 | ||||||||||||
Industrial | 712.2 | 620.5 | 2,019.7 | 1,686.9 | ||||||||||||
Other Sales - Street Lighting | 4.9 | 4.5 | 16.0 | 14.1 | ||||||||||||
Total Retail | 1,604.0 | 1,395.0 | 4,351.0 | 3,823.1 | ||||||||||||
Wholesale | 122.0 | 87.9 | 466.2 | 494.3 | ||||||||||||
1,726.0 | 1,482.9 | 4,817.2 | 4,317.4 | |||||||||||||
AVERAGE ELECTRIC CUSTOMERS | ||||||||||||||||
Residential | 122,738 | 122,222 | 122,840 | 122,307 | ||||||||||||
Commercial | 18,335 | 18,388 | 18,341 | 18,360 | ||||||||||||
Industrial | 109 | 106 | 108 | 105 | ||||||||||||
Other | 33 | 33 | 33 | 33 | ||||||||||||
141,215 | 140,749 | 141,322 | 140,805 | |||||||||||||
YTD WEATHER AS A PERCENT OF NORMAL: | ||||||||||||||||
Cooling Degree Days (Indiana) | 129 | % | 79 | % | 134 | % | 92 | % | ||||||||
Heating Degree Days (Indiana) | 22 | % | 40 | % | 98 | % | 93 | % |