EXHIBIT 99.2:
CONSOLIDATED STATEMENTSOF INCOME (UNAUDITED)
For the 3 months ending March 31, 2007 and 2006
1st Quarter | Change | |||||||||||
(in thousands, except per share data) | 2007 | 2006 | ||||||||||
Operating Revenues | ||||||||||||
Oil and gas operations | $ | 194,033 | $ | 169,519 | $ | 24,514 | ||||||
Natural gas distribution | 298,628 | 318,623 | (19,995 | ) | ||||||||
Total operating revenues | 492,661 | 488,142 | 4,519 | |||||||||
Operating Expenses | ||||||||||||
Cost of gas | 168,138 | 194,050 | (25,912 | ) | ||||||||
Operations & maintenance | 82,043 | 74,483 | 7,560 | |||||||||
Depreciation, depletion and amortization | 38,020 | 34,297 | 3,723 | |||||||||
Taxes, other than income taxes | 30,312 | 32,679 | (2,367 | ) | ||||||||
Accretion expense | 950 | 898 | 52 | |||||||||
Total operating expenses | 319,463 | 336,407 | (16,944 | ) | ||||||||
Operating Income | 173,198 | 151,735 | 21,463 | |||||||||
Other Income (Expense) | ||||||||||||
Interest expense | (12,221 | ) | (13,177 | ) | 956 | |||||||
Other income | 561 | 707 | (146 | ) | ||||||||
Other expense | (195 | ) | (229 | ) | 34 | |||||||
Total other expense | (11,855 | ) | (12,699 | ) | 844 | |||||||
Income from Continuing Operations Before Income Taxes | 161,343 | 139,036 | 22,307 | |||||||||
Income tax expense | 57,462 | 51,535 | 5,927 | |||||||||
Income from Continuing Operations | 103,881 | 87,501 | 16,380 | |||||||||
Discontinued Operations, Net of Taxes | ||||||||||||
Income (loss) from discontinued operations | 1 | (7 | ) | 8 | ||||||||
Gain on disposal of discontinued operations | — | — | — | |||||||||
Income (Loss) from Discontinued Operations | 1 | (7 | ) | 8 | ||||||||
Net Income | $ | 103,882 | $ | 87,494 | $ | 16,388 | ||||||
Diluted Earnings Per Average Common Share | ||||||||||||
Continuing operations | $ | 1.44 | $ | 1.18 | $ | 0.26 | ||||||
Discontinued operations | — | — | — | |||||||||
Net Income | $ | 1.44 | $ | 1.18 | $ | 0.26 | ||||||
Basic Earnings Per Average Common Share | ||||||||||||
Continuing operations | $ | 1.45 | $ | 1.19 | $ | 0.26 | ||||||
Discontinued operations | — | — | — | |||||||||
Net Income | $ | 1.45 | $ | 1.19 | $ | 0.26 | ||||||
Diluted Avg. Common Shares Outstanding | 72,124 | 74,094 | (1,970 | ) | ||||||||
Basic Avg. Common Shares Outstanding | 71,482 | 73,268 | (1,786 | ) | ||||||||
Dividends Per Common Share | $ | 0.115 | $ | 0.11 | $ | 0.005 | ||||||
1
CONSOLIDATED STATEMENTSOF INCOME (UNAUDITED)2
For the 12 months ending March 31, 2007 and 2006
Trailing 12 Months | Change | |||||||||||
(in thousands, except per share data) | 2007 | 2006 | ||||||||||
Operating Revenues | ||||||||||||
Oil and gas operations | $ | 755,056 | $ | 594,333 | $ | 160,723 | ||||||
Natural gas distribution | 643,449 | 661,195 | (17,746 | ) | ||||||||
Total operating revenues | 1,398,505 | 1,255,528 | 142,977 | |||||||||
Operating Expenses | ||||||||||||
Cost of gas | 347,185 | 372,817 | (25,632 | ) | ||||||||
Operations & maintenance | 309,717 | 282,805 | 26,912 | |||||||||
Depreciation, depletion and amortization | 145,809 | 134,563 | 11,246 | |||||||||
Taxes, other than income taxes | 93,360 | 100,112 | (6,752 | ) | ||||||||
Accretion expense | 3,671 | 2,902 | 769 | |||||||||
Total operating expenses | 899,742 | 893,199 | 6,543 | |||||||||
Operating Income | 498,763 | 362,329 | 136,434 | |||||||||
Other Income (Expense) | ||||||||||||
Interest expense | (47,696 | ) | (48,307 | ) | 611 | |||||||
Other income | 865 | 2,517 | (1,652 | ) | ||||||||
Other expense | (1,072 | ) | (671 | ) | (401 | ) | ||||||
Total other expense | (47,903 | ) | (46,461 | ) | (1,442 | ) | ||||||
Income from Continuing Operations Before Income Taxes | 450,860 | 315,868 | 134,992 | |||||||||
Income tax expense | 160,957 | 114,423 | 46,534 | |||||||||
Income from Continuing Operations | 289,903 | 201,445 | 88,458 | |||||||||
Discontinued Operations, Net of Taxes | ||||||||||||
Income from discontinued operations | 2 | 6 | (4 | ) | ||||||||
Gain on disposal of discontinued operations | 53 | 9 | 44 | |||||||||
Income from Discontinued Operations | 55 | 15 | 40 | |||||||||
Net Income | $ | 289,958 | $ | 201,460 | $ | 88,498 | ||||||
Diluted Earnings Per Average Common Share | ||||||||||||
Continuing operations | $ | 3.99 | $ | 2.73 | $ | 1.26 | ||||||
Discontinued operations | — | — | — | |||||||||
Net Income | $ | 3.99 | $ | 2.73 | $ | 1.26 | ||||||
Basic Earnings Per Average Common Share | ||||||||||||
Continuing operations | $ | 4.02 | $ | 2.75 | $ | 1.27 | ||||||
Discontinued operations | — | — | — | |||||||||
Net Income | $ | 4.02 | $ | 2.75 | $ | 1.27 | ||||||
Diluted Avg. Common Shares Outstanding | 72,674 | 73,904 | (1,230 | ) | ||||||||
Basic Avg. Common Shares Outstanding | 72,138 | 73,160 | (1,022 | ) | ||||||||
Dividends Per Common Share | $ | 0.445 | $ | 0.41 | $ | 0.035 | ||||||
2
SELECTED BUSINESS SEGMENT DATA (UNAUDITED)
For the 3 months ending March 31, 2007 and 2006
1st Quarter | ||||||||||
(in thousands, except sales price data) | 2007 | 2006 | Change | |||||||
Oil and Gas Operations | ||||||||||
Operating revenues | ||||||||||
Natural gas | $ | 123,225 | $ | 116,084 | $ | 7,141 | ||||
Oil | 54,084 | 42,142 | 11,942 | |||||||
Natural gas liquids | 15,042 | 9,677 | 5,365 | |||||||
Other | 1,682 | 1,616 | 66 | |||||||
Total | $ | 194,033 | $ | 169,519 | $ | 24,514 | ||||
Production volumes from continuing operations | ||||||||||
Natural gas (MMcf) | 15,547 | 15,327 | 220 | |||||||
Oil (MBbl) | 927 | 917 | 10 | |||||||
Natural gas liquids (MMgal) | 18.9 | 16.6 | 2.3 | |||||||
Production volumes from continuing ops. (MMcfe) | 23,806 | 23,209 | 597 | |||||||
Total production volumes (MMcfe) | 23,805 | 23,209 | 596 | |||||||
Revenue per unit of production including effects of all derivative instruments | ||||||||||
Natural gas (Mcf) | $ | 7.93 | $ | 7.57 | $ | 0.36 | ||||
Oil (barrel) | $ | 58.36 | $ | 45.94 | $ | 12.42 | ||||
Natural gas liquids (gallon) | $ | 0.80 | $ | 0.58 | $ | 0.22 | ||||
Other data from continuing operations | ||||||||||
Lease operating expense (LOE) | ||||||||||
LOE and other | $ | 35,409 | $ | 33,862 | $ | 1,547 | ||||
Production taxes | 12,011 | 13,093 | (1,082 | ) | ||||||
Total | $ | 47,420 | $ | 46,955 | $ | 465 | ||||
Depreciation, depletion and amortization | $ | 26,473 | $ | 23,551 | $ | 2,922 | ||||
Capital expenditures | $ | 53,395 | $ | 44,905 | $ | 8,490 | ||||
Exploration expenditures | $ | 97 | $ | 109 | $ | (12 | ) | |||
Operating income | $ | 105,301 | $ | 88,539 | $ | 16,762 | ||||
Natural Gas Distribution | ||||||||||
Operating revenues | ||||||||||
Residential | $ | 203,798 | $ | 218,506 | $ | (14,708 | ) | |||
Commercial and industrial | 77,722 | 84,557 | (6,835 | ) | ||||||
Transportation | 14,567 | 12,735 | 1,832 | |||||||
Other | 2,541 | 2,825 | (284 | ) | ||||||
Total | $ | 298,628 | $ | 318,623 | $ | (19,995 | ) | |||
Gas delivery volumes (MMcf) | ||||||||||
Residential | 11,579 | 11,685 | (106 | ) | ||||||
Commercial and industrial | 4,872 | 4,941 | (69 | ) | ||||||
Transportation | 13,420 | 13,359 | 61 | |||||||
Total | 29,871 | 29,985 | (114 | ) | ||||||
Other data | ||||||||||
Depreciation and amortization | $ | 11,547 | $ | 10,746 | $ | 801 | ||||
Capital expenditures | $ | 14,967 | $ | 18,845 | $ | (3,878 | ) | |||
Operating income | $ | 68,437 | $ | 63,727 | $ | 4,710 | ||||
3
SELECTED BUSINESS SEGMENT DATA (UNAUDITED)
For the 12 months ending March 31, 2007 and 2006
Trailing 12 Months | ||||||||||
(in thousands, except sales price data) | 2007 | 2006 | Change | |||||||
Oil and Gas Operations | ||||||||||
Operating revenues | ||||||||||
Natural gas | $ | 444,701 | $ | 414,119 | $ | 30,582 | ||||
Oil | 193,401 | 132,488 | 60,913 | |||||||
Natural gas liquids | 55,623 | 39,987 | 15,636 | |||||||
Other | 61,331 | 7,739 | 53,592 | |||||||
Total | $ | 755,056 | $ | 594,333 | $ | 160,723 | ||||
Production volumes from continuing operations | ||||||||||
Natural gas (MMcf) | 63,044 | 61,693 | 1,351 | |||||||
Oil (MBbl) | 3,654 | 3,414 | 240 | |||||||
Natural gas liquids (MMgal) | 78.6 | 71.4 | 7.2 | |||||||
Production volumes from continuing ops. (MMcfe) | 96,193 | 92,373 | 3,820 | |||||||
Total production volumes (MMcfe) | 96,191 | 92,402 | 3,789 | |||||||
Revenue per unit of production including effects of all derivative instruments | ||||||||||
Natural gas (Mcf) | $ | 7.05 | $ | 6.71 | $ | 0.34 | ||||
Oil (barrel) | $ | 52.93 | $ | 38.80 | $ | 14.13 | ||||
Natural gas liquids (gallon) | $ | 0.71 | $ | 0.56 | $ | 0.15 | ||||
Other data | ||||||||||
Lease operating expense (LOE) | ||||||||||
LOE and other | $ | 136,400 | $ | 115,354 | $ | 21,046 | ||||
Production taxes | 48,427 | 55,160 | (6,733 | ) | ||||||
Total | $ | 184,827 | $ | 170,514 | $ | 14,313 | ||||
Depreciation, depletion and amortization | $ | 100,764 | $ | 91,879 | $ | 8,885 | ||||
Capital expenditures | $ | 268,168 | $ | 358,132 | $ | (89,964 | ) | |||
Exploration expenditures | $ | 4,169 | $ | 461 | $ | 3,708 | ||||
Operating income | $ | 421,911 | $ | 293,438 | $ | 128,473 | ||||
Natural Gas Distribution | ||||||||||
Operating revenues | ||||||||||
Residential | $ | 411,358 | $ | 425,105 | $ | (13,747 | ) | |||
Commercial and industrial | 175,065 | 186,214 | (11,149 | ) | ||||||
Transportation | 47,782 | 42,996 | 4,786 | |||||||
Other | 9,244 | 6,880 | 2,364 | |||||||
Total | $ | 643,449 | $ | 661,195 | $ | (17,746 | ) | |||
Gas delivery volumes (MMcf) | ||||||||||
Residential | 22,204 | 23,274 | (1,070 | ) | ||||||
Commercial and industrial | 11,157 | 12,144 | (987 | ) | ||||||
Transportation | 50,821 | 49,468 | 1,353 | |||||||
Total | 84,182 | 84,886 | (704 | ) | ||||||
Other data | ||||||||||
Depreciation and amortization | $ | 45,045 | $ | 42,684 | $ | 2,361 | ||||
Capital expenditures | $ | 72,279 | $ | 77,319 | $ | (5,040 | ) | |||
Operating income | $ | 78,984 | $ | 70,245 | $ | 8,739 | ||||
4