Exhibit 99.2
CONSOLIDATED STATEMENTSOF INCOME (UNAUDITED)
For the 3 months ending September 30, 2007 and 2006
3rd Quarter | ||||||||||||
(in thousands, except per share data) | 2007 | 2006 | Change | |||||||||
Operating Revenues | ||||||||||||
Oil and gas operations | $ | 208,423 | $ | 171,516 | $ | 36,907 | ||||||
Natural gas distribution | 67,599 | 71,195 | (3,596 | ) | ||||||||
Total operating revenues | 276,022 | 242,711 | 33,311 | |||||||||
Operating Expenses | ||||||||||||
Cost of gas | 31,088 | 32,311 | (1,223 | ) | ||||||||
Operations & maintenance | 84,857 | 78,836 | 6,021 | |||||||||
Depreciation, depletion and amortization | 41,457 | 35,676 | 5,781 | |||||||||
Taxes, other than income taxes | 18,988 | 19,338 | (350 | ) | ||||||||
Accretion expense | 1,000 | 881 | 119 | |||||||||
Total operating expenses | 177,390 | 167,042 | 10,348 | |||||||||
Operating Income | 98,632 | 75,669 | 22,963 | |||||||||
Other Income (Expense) | ||||||||||||
Interest expense | (11,418 | ) | (12,267 | ) | 849 | |||||||
Other income | 885 | 448 | 437 | |||||||||
Other expense | (244 | ) | (207 | ) | (37 | ) | ||||||
Total other expense | (10,777 | ) | (12,026 | ) | 1,249 | |||||||
Income from Continuing Operations Before Income Taxes | 87,855 | 63,643 | 24,212 | |||||||||
Income tax expense | 29,841 | 22,346 | 7,495 | |||||||||
Income from Continuing Operations | 58,014 | 41,297 | 16,717 | |||||||||
Discontinued Operations, Net of Taxes | ||||||||||||
Income from discontinued operations | 2 | 2 | — | |||||||||
Gain on disposal of discontinued operations | 18 | 53 | (35 | ) | ||||||||
Income from Discontinued Operations | 20 | 55 | (35 | ) | ||||||||
Net Income | $ | 58,034 | $ | 41,352 | $ | 16,682 | ||||||
Diluted Earnings Per Average Common Share | ||||||||||||
Continuing operations | $ | 0.80 | $ | 0.56 | $ | 0.24 | ||||||
Discontinued operations | — | — | — | |||||||||
Net Income | $ | 0.80 | $ | 0.56 | $ | 0.24 | ||||||
Basic Earnings Per Average Common Share | ||||||||||||
Continuing operations | $ | 0.81 | $ | 0.57 | $ | 0.24 | ||||||
Discontinued operations | — | — | — | |||||||||
Net Income | $ | 0.81 | $ | 0.57 | $ | 0.24 | ||||||
Diluted Avg. Common Shares Outstanding | 72,275 | 73,191 | (916 | ) | ||||||||
Basic Avg. Common Shares Outstanding | 71,623 | 72,228 | (605 | ) | ||||||||
Dividends Per Common Share | $ | 0.115 | $ | 0.11 | $ | 0.005 | ||||||
11
CONSOLIDATED STATEMENTSOF INCOME (UNAUDITED)
For the 9 months ending September 30, 2007 and 2006
Year-to-date | ||||||||||||
(in thousands, except per share data) | 2007 | 2006 | Change | |||||||||
Operating Revenues | ||||||||||||
Oil and gas operations | $ | 605,812 | $ | 510,213 | $ | 95,599 | ||||||
Natural gas distribution | 477,793 | 503,014 | (25,221 | ) | ||||||||
Total operating revenues | 1,083,605 | 1,013,227 | 70,378 | |||||||||
Operating Expenses | ||||||||||||
Cost of gas | 252,584 | 284,192 | (31,608 | ) | ||||||||
Operations & maintenance | 251,011 | 231,720 | 19,291 | |||||||||
Depreciation, depletion and amortization | 118,184 | 104,472 | 13,712 | |||||||||
Taxes, other than income taxes | 71,170 | 73,450 | (2,280 | ) | ||||||||
Accretion expense | 2,921 | 2,691 | 230 | |||||||||
Total operating expenses | 695,870 | 696,525 | (655 | ) | ||||||||
Operating Income | 387,735 | 316,702 | 71,033 | |||||||||
Other Income (Expense) | ||||||||||||
Interest expense | (35,655 | ) | (37,810 | ) | 2,155 | |||||||
Other income | 2,396 | 1,410 | 986 | |||||||||
Other expense | (626 | ) | (708 | ) | 82 | |||||||
Total other expense | (33,885 | ) | (37,108 | ) | 3,223 | |||||||
Income from Continuing Operations Before Income Taxes | 353,850 | 279,594 | 74,256 | |||||||||
Income tax expense | 124,052 | 101,194 | 22,858 | |||||||||
Income from Continuing Operations | 229,798 | 178,400 | 51,398 | |||||||||
Discontinued Operations, Net of Taxes | ||||||||||||
Income (loss) from discontinued operations | 3 | (6 | ) | 9 | ||||||||
Gain on disposal of discontinued operations | 18 | 53 | (35 | ) | ||||||||
Income from Discontinued Operations | 21 | 47 | (26 | ) | ||||||||
Net Income | $ | 229,819 | $ | 178,447 | $ | 51,372 | ||||||
Diluted Earnings Per Average Common Share | ||||||||||||
Continuing operations | $ | 3.18 | $ | 2.42 | $ | 0.76 | ||||||
Discontinued operations | — | — | — | |||||||||
Net Income | $ | 3.18 | $ | 2.42 | $ | 0.76 | ||||||
Basic Earnings Per Average Common Share | ||||||||||||
Continuing operations | $ | 3.21 | $ | 2.45 | $ | 0.76 | ||||||
Discontinued operations | — | — | — | |||||||||
Net Income | $ | 3.21 | $ | 2.45 | $ | 0.76 | ||||||
Diluted Avg. Common Shares Outstanding | 72,173 | 73,671 | (1,498 | ) | ||||||||
Basic Avg. Common Shares Outstanding | 71,566 | 72,839 | (1,273 | ) | ||||||||
Dividends Per Common Share | $ | 0.345 | $ | 0.33 | $ | 0.015 | ||||||
12
CONSOLIDATED STATEMENTSOF INCOME (UNAUDITED)
For the 12 months ending September 30, 2007 and 2006
Trailing 12 Months | ||||||||||||
(in thousands, except per share data) | 2007 | 2006 | Change | |||||||||
Operating Revenues | ||||||||||||
Oil and gas operations | $ | 826,141 | $ | 674,340 | $ | 151,801 | ||||||
Natural gas distribution | 638,223 | 673,968 | (35,745 | ) | ||||||||
Total operating revenues | 1,464,364 | 1,348,308 | 116,056 | |||||||||
Operating Expenses | ||||||||||||
Cost of gas | 341,489 | 385,149 | (43,660 | ) | ||||||||
Operations & maintenance | 321,448 | 305,320 | 16,128 | |||||||||
Depreciation, depletion and amortization | 155,798 | 137,422 | 18,376 | |||||||||
Taxes, other than income taxes | 93,447 | 101,566 | (8,119 | ) | ||||||||
Accretion expense | 3,849 | 3,373 | 476 | |||||||||
Total operating expenses | 916,031 | 932,830 | (16,799 | ) | ||||||||
Operating Income | 548,333 | 415,478 | 132,855 | |||||||||
Other Income (Expense) | ||||||||||||
Interest expense | (46,497 | ) | (49,816 | ) | 3,319 | |||||||
Other income | 1,859 | 1,879 | (20 | ) | ||||||||
Other expense | (886 | ) | (780 | ) | (106 | ) | ||||||
Total other expense | (45,524 | ) | (48,717 | ) | 3,193 | |||||||
Income from Continuing Operations Before Income Taxes | 502,809 | 366,761 | 136,048 | |||||||||
Income tax expense | 177,888 | 131,066 | 46,822 | |||||||||
Income from Continuing Operations | 324,921 | 235,695 | 89,226 | |||||||||
Discontinued Operations, Net of Taxes | ||||||||||||
Income (loss) from discontinued operations | 3 | (10 | ) | 13 | ||||||||
Gain on disposal of discontinued operations | 18 | 65 | (47 | ) | ||||||||
Income from Discontinued Operations | 21 | 55 | (34 | ) | ||||||||
Net Income | $ | 324,942 | $ | 235,750 | $ | 89,192 | ||||||
Diluted Earnings Per Average Common Share | ||||||||||||
Continuing operations | $ | 4.50 | $ | 3.20 | $ | 1.30 | ||||||
Discontinued operations | — | — | — | |||||||||
Net Income | $ | 4.50 | $ | 3.20 | $ | 1.30 | ||||||
Basic Earnings Per Average Common Share | ||||||||||||
Continuing operations | $ | 4.54 | $ | 3.23 | $ | 1.31 | ||||||
Discontinued operations | — | — | — | |||||||||
Net Income | $ | 4.54 | $ | 3.23 | $ | 1.31 | ||||||
Diluted Avg. Common Shares Outstanding | 72,170 | 73,744 | (1,574 | ) | ||||||||
Basic Avg. Common Shares Outstanding | 71,598 | 72,934 | (1,336 | ) | ||||||||
Dividends Per Common Share | $ | 0.455 | $ | 0.43 | $ | 0.025 | ||||||
13
SELECTED BUSINESS SEGMENT DATA (UNAUDITED)
For the 3 months ending September 30, 2007 and 2006
3rd Quarter | ||||||||||||
(in thousands, except sales price data) | 2007 | 2006 | Change | |||||||||
Oil and Gas Operations | ||||||||||||
Operating revenues | ||||||||||||
Natural gas | $ | 123,499 | $ | 108,795 | $ | 14,704 | ||||||
Oil | 66,689 | 46,529 | 20,160 | |||||||||
Natural gas liquids | 17,486 | 14,668 | 2,818 | |||||||||
Other | 749 | 1,524 | (775 | ) | ||||||||
Total | $ | 208,423 | $ | 171,516 | $ | 36,907 | ||||||
Production volumes from continuing operations | ||||||||||||
Natural gas (MMcf) | 16,495 | 16,004 | 491 | |||||||||
Oil (MBbl) | 1,025 | 905 | 120 | |||||||||
Natural gas liquids (MMgal) | 19.6 | 20.4 | (0.8 | ) | ||||||||
Production volumes from continuing ops. (MMcfe) | 25,445 | 24,340 | 1,105 | |||||||||
Total production volumes (MMcfe) | 25,445 | 24,340 | 1,105 | |||||||||
Revenue per unit of production including effects of all derivative instruments | ||||||||||||
Natural gas (Mcf) | $ | 7.49 | $ | 6.80 | $ | 0.69 | ||||||
Oil (barrel) | $ | 65.06 | $ | 51.43 | $ | 13.63 | ||||||
Natural gas liquids (gallon) | $ | 0.89 | $ | 0.72 | $ | 0.17 | ||||||
Other data from continuing operations | ||||||||||||
Lease operating expense (LOE) | ||||||||||||
LOE and other | $ | 38,706 | $ | 35,305 | $ | 3,401 | ||||||
Production taxes | 12,968 | 12,602 | 366 | |||||||||
Total | $ | 51,674 | $ | 47,907 | $ | 3,767 | ||||||
Depreciation, depletion and amortization | $ | 29,610 | $ | 24,475 | $ | 5,135 | ||||||
Capital expenditures | $ | 94,274 | $ | 61,049 | $ | 33,225 | ||||||
Exploration expenditures | $ | 1,396 | $ | 1,986 | $ | (590 | ) | |||||
Operating income | $ | 112,899 | $ | 85,239 | $ | 27,660 | ||||||
Natural Gas Distribution | ||||||||||||
Operating revenues | ||||||||||||
Residential | $ | 35,685 | $ | 36,635 | $ | (950 | ) | |||||
Commercial and industrial | 21,384 | 22,300 | (916 | ) | ||||||||
Transportation | 10,575 | 10,115 | 460 | |||||||||
Other | (45 | ) | 2,145 | (2,190 | ) | |||||||
Total | $ | 67,599 | $ | 71,195 | $ | (3,596 | ) | |||||
Gas delivery volumes (MMcf) | ||||||||||||
Residential | 1,537 | 1,601 | (64 | ) | ||||||||
Commercial and industrial | 1,520 | 1,534 | (14 | ) | ||||||||
Transportation | 12,779 | 12,999 | (220 | ) | ||||||||
Total | 15,836 | 16,134 | (298 | ) | ||||||||
Other data | ||||||||||||
Depreciation and amortization | $ | 11,847 | $ | 11,201 | $ | 646 | ||||||
Capital expenditures | $ | 14,023 | $ | 18,512 | $ | (4,489 | ) | |||||
Operating (loss) | $ | (13,673 | ) | $ | (8,921 | ) | $ | (4,752 | ) |
14
SELECTED BUSINESS SEGMENT DATA (UNAUDITED)
For the 9 months ending September 30, 2007 and 2006
Year-to-date | ||||||||||
(in thousands, except sales price data) | 2007 | 2006 | Change | |||||||
Oil and Gas Operations | ||||||||||
Operating revenues | ||||||||||
Natural gas | $ | 371,436 | $ | 331,073 | $ | 40,363 | ||||
Oil | 181,388 | 136,146 | 45,242 | |||||||
Natural gas liquids | 49,076 | 38,152 | 10,924 | |||||||
Other | 3,912 | 4,842 | (930 | ) | ||||||
Total | $ | 605,812 | $ | 510,213 | $ | 95,599 | ||||
Production volumes from continuing operations | ||||||||||
Natural gas (MMcf) | 47,732 | 47,056 | 676 | |||||||
Oil (MBbl) | 2,898 | 2,736 | 162 | |||||||
Natural gas liquids (MMgal) | 57.6 | 57.1 | 0.5 | |||||||
Production volumes from continuing ops. (MMcfe) | 73,350 | 71,625 | 1,725 | |||||||
Total production volumes (MMcfe) | 73,349 | 71,624 | 1,725 | |||||||
Revenue per unit of production including effects of all derivative instruments | ||||||||||
Natural gas (Mcf) | $ | 7.78 | $ | 7.04 | $ | 0.74 | ||||
Oil (barrel) | $ | 62.58 | $ | 49.75 | $ | 12.83 | ||||
Natural gas liquids (gallon) | $ | 0.85 | $ | 0.67 | $ | 0.18 | ||||
Other data from continuing operations | ||||||||||
Lease operating expense (LOE) | ||||||||||
LOE and other | $ | 113,236 | $ | 100,789 | $ | 12,447 | ||||
Production taxes | 38,568 | 38,454 | 114 | |||||||
Total | $ | 151,804 | $ | 139,243 | $ | 12,561 | ||||
Depreciation, depletion and amortization | $ | 83,083 | $ | 71,592 | $ | 11,491 | ||||
Capital expenditures | $ | 254,795 | $ | 156,606 | $ | 98,189 | ||||
Exploration expenditures | $ | 1,671 | $ | 3,512 | $ | (1,841 | ) | |||
Operating income | $ | 329,672 | $ | 260,916 | $ | 68,756 | ||||
Natural Gas Distribution | ||||||||||
Operating revenues | ||||||||||
Residential | $ | 306,312 | $ | 322,635 | $ | (16,323 | ) | |||
Commercial and industrial | 130,279 | 139,713 | (9,434 | ) | ||||||
Transportation | 36,509 | 33,111 | 3,398 | |||||||
Other | 4,693 | 7,555 | (2,862 | ) | ||||||
Total | $ | 477,793 | $ | 503,014 | $ | (25,221 | ) | |||
Gas delivery volumes (MMcf) | ||||||||||
Residential | 16,303 | 16,581 | (278 | ) | ||||||
Commercial and industrial | 8,373 | 8,559 | (186 | ) | ||||||
Transportation | 38,396 | 37,947 | 449 | |||||||
Total | 63,072 | 63,087 | (15 | ) | ||||||
Other data | ||||||||||
Depreciation and amortization | $ | 35,101 | $ | 32,880 | $ | 2,221 | ||||
Capital expenditures | $ | 45,596 | $ | 58,947 | $ | (13,351 | ) | |||
Operating income | $ | 59,734 | $ | 57,517 | $ | 2,217 |
15
SELECTED BUSINESS SEGMENT DATA (UNAUDITED)
For the 12 months ending September 30, 2007 and 2006
Trailing 12 Months | ||||||||||
(in thousands, except sales price data) | 2007 | 2006 | Change | |||||||
Oil and Gas Operations | ||||||||||
Operating revenues | ||||||||||
Natural gas | $ | 477,923 | $ | 449,621 | $ | 28,302 | ||||
Oil | 226,701 | 169,114 | 57,587 | |||||||
Natural gas liquids | 61,182 | 48,088 | 13,094 | |||||||
Other | 60,335 | 7,517 | 52,818 | |||||||
Total | $ | 826,141 | $ | 674,340 | $ | 151,801 | ||||
Production volumes from continuing operations | ||||||||||
Natural gas (MMcf) | 63,500 | 62,223 | 1,277 | |||||||
Oil (MBbl) | 3,807 | 3,573 | 234 | |||||||
Natural gas liquids (MMgal) | 76.9 | 75.1 | 1.8 | |||||||
Production volumes from continuing ops. (MMcfe) | 97,321 | 94,398 | 2,923 | |||||||
Total production volumes (MMcfe) | 97,320 | 94,420 | 2,900 | |||||||
Revenue per unit of production including effects of all derivative instruments | ||||||||||
Natural gas (Mcf) | $ | 7.53 | $ | 7.22 | $ | 0.31 | ||||
Oil (barrel) | $ | 59.55 | $ | 47.34 | $ | 12.21 | ||||
Natural gas liquids (gallon) | $ | 0.80 | $ | 0.64 | $ | 0.16 | ||||
Other data from continuing operations | ||||||||||
Lease operating expense (LOE) | ||||||||||
LOE and other | $ | 147,300 | $ | 129,519 | $ | 17,781 | ||||
Production taxes | 49,623 | 55,175 | (5,552 | ) | ||||||
Total | $ | 196,923 | $ | 184,694 | $ | 12,229 | ||||
Depreciation, depletion and amortization | $ | 109,333 | $ | 93,915 | $ | 15,418 | ||||
Capital expenditures | $ | 357,867 | $ | 377,600 | $ | (19,733 | ) | |||
Exploration expenditures | $ | 2,340 | $ | 3,620 | $ | (1,280 | ) | |||
Operating income | $ | 473,905 | $ | 348,079 | $ | 125,826 | ||||
Natural Gas Distribution | ||||||||||
Operating revenues | ||||||||||
Residential | $ | 409,743 | $ | 430,660 | $ | (20,917 | ) | |||
Commercial and industrial | 172,465 | 190,058 | (17,593 | ) | ||||||
Transportation | 49,348 | 43,750 | 5,598 | |||||||
Other | 6,667 | 9,500 | (2,833 | ) | ||||||
Total | $ | 638,223 | $ | 673,968 | $ | (35,745 | ) | |||
Gas delivery volumes (MMcf) | ||||||||||
Residential | 22,032 | 22,190 | (158 | ) | ||||||
Commercial and industrial | 11,040 | 11,560 | (520 | ) | ||||||
Transportation | 51,209 | 50,163 | 1,046 | |||||||
Total | 84,281 | 83,913 | 368 | |||||||
Other data | ||||||||||
Depreciation and amortization | $ | 46,465 | $ | 43,507 | $ | 2,958 | ||||
Capital expenditures | $ | 62,806 | $ | 78,661 | $ | (15,855 | ) | |||
Operating income | $ | 76,491 | $ | 69,430 | $ | 7,061 |
16