Exhibit 99.2
CONSOLIDATED STATEMENTSOF INCOME (UNAUDITED)
For the 3 months ending June 30, 2008 and 2007
| 2nd Quarter | ||||||||||||
(in thousands, except per share data) | 2008 | 2007 | Change | |||||||||
Operating Revenues | ||||||||||||
Oil and gas operations | $ | 231,780 | $ | 203,356 | $ | 28,424 | ||||||
Natural gas distribution | 109,486 | 111,566 | (2,080 | ) | ||||||||
Total operating revenues | 341,266 | 314,922 | 26,344 | |||||||||
Operating Expenses | ||||||||||||
Cost of gas | 55,869 | 53,358 | 2,511 | |||||||||
Operations and maintenance | 93,427 | 84,111 | 9,316 | |||||||||
Depreciation, depletion and amortization | 44,114 | 38,707 | 5,407 | |||||||||
Taxes, other than income taxes | 29,868 | 21,870 | 7,998 | |||||||||
Accretion expense | 1,055 | 971 | 84 | |||||||||
Total operating expenses | 224,333 | 199,017 | 25,316 | |||||||||
Operating Income | 116,933 | 115,905 | 1,028 | |||||||||
Other Income (Expense) | ||||||||||||
Interest expense | (10,258 | ) | (12,016 | ) | 1,758 | |||||||
Other income | 486 | 950 | (464 | ) | ||||||||
Other expense | (452 | ) | (187 | ) | (265 | ) | ||||||
Total other expense | (10,224 | ) | (11,253 | ) | 1,029 | |||||||
Income from Continuing Operations Before Income Taxes | 106,709 | 104,652 | 2,057 | |||||||||
Income tax expense | 39,831 | 36,749 | 3,082 | |||||||||
Income from Continuing Operations | 66,878 | 67,903 | (1,025 | ) | ||||||||
| Discontinued Operations, Net of Taxes | ||||||||||||
Income from discontinued operations | — | — | — | |||||||||
Gain on disposal of discontinued operations | — | — | — | |||||||||
| Income from Discontinued Operations | — | — | — | |||||||||
| Net Income | $ | 66,878 | $ | 67,903 | $ | (1,025 | ) | |||||
| Diluted Earnings Per Average Common Share | ||||||||||||
Continuing operations | $ | 0.93 | $ | 0.94 | $ | (0.01 | ) | |||||
Discontinued operations | — | — | — | |||||||||
Net Income | $ | 0.93 | $ | 0.94 | $ | (0.01 | ) | |||||
| Basic Earnings Per Average Common Share | ||||||||||||
Continuing operations | $ | 0.93 | $ | 0.95 | $ | (0.02 | ) | |||||
Discontinued operations | — | — | — | |||||||||
Net Income | $ | 0.93 | $ | 0.95 | $ | (0.02 | ) | |||||
| Diluted Avg. Common Shares Outstanding | 72,055 | 72,249 | (194 | ) | ||||||||
| Basic Avg. Common Shares Outstanding | 71,585 | 71,592 | (7 | ) | ||||||||
| Dividends Per Common Share | $ | 0.12 | $ | 0.115 | $ | 0.005 | ||||||
CONSOLIDATED STATEMENTSOF INCOME (UNAUDITED)
For the 6 months ending June 30, 2008 and 2007
| Year-to-date | ||||||||||||
(in thousands, except per share data) | 2008 | 2007 | Change | |||||||||
Operating Revenues | ||||||||||||
Oil and gas operations | $ | 456,675 | $ | 397,389 | $ | 59,286 | ||||||
Natural gas distribution | 406,237 | 410,194 | (3,957 | ) | ||||||||
Total operating revenues | 862,912 | 807,583 | 55,329 | |||||||||
Operating Expenses | ||||||||||||
Cost of gas | 217,258 | 221,496 | (4,238 | ) | ||||||||
Operations and maintenance | 179,979 | 166,154 | 13,825 | |||||||||
Depreciation, depletion and amortization | 86,530 | 76,727 | 9,803 | |||||||||
Taxes, other than income taxes | 64,773 | 52,182 | 12,591 | |||||||||
Accretion expense | 2,100 | 1,921 | 179 | |||||||||
Total operating expenses | 550,640 | 518,480 | 32,160 | |||||||||
Operating Income | 312,272 | 289,103 | 23,169 | |||||||||
Other Income (Expense) | ||||||||||||
Interest expense | (21,380 | ) | (24,237 | ) | 2,857 | |||||||
Other income | 730 | 1,511 | (781 | ) | ||||||||
Other expense | (1,048 | ) | (382 | ) | (666 | ) | ||||||
Total other expense | (21,698 | ) | (23,108 | ) | 1,410 | |||||||
Income from Continuing Operations Before Income Taxes | 290,574 | 265,995 | 24,579 | |||||||||
Income tax expense | 107,008 | 94,211 | 12,797 | |||||||||
Income from Continuing Operations | 183,566 | 171,784 | 11,782 | |||||||||
Discontinued Operations, Net of Taxes | ||||||||||||
Income from discontinued operations | — | 1 | (1 | ) | ||||||||
Gain on disposal of discontinued operations | — | — | — | |||||||||
Income from Discontinued Operations | — | 1 | (1 | ) | ||||||||
Net Income | $ | 183,566 | $ | 171,785 | $ | 11,781 | ||||||
Diluted Earnings Per Average Common Share | ||||||||||||
Continuing operations | $ | 2.55 | $ | 2.38 | $ | 0.17 | ||||||
Discontinued operations | — | — | — | |||||||||
Net Income | $ | 2.55 | $ | 2.38 | $ | 0.17 | ||||||
Basic Earnings Per Average Common Share | ||||||||||||
Continuing operations | $ | 2.56 | $ | 2.40 | $ | 0.16 | ||||||
Discontinued operations | — | — | — | |||||||||
Net Income | $ | 2.56 | $ | 2.40 | $ | 0.16 | ||||||
Diluted Avg. Common Shares Outstanding | 72,054 | 72,153 | (99 | ) | ||||||||
Basic Avg. Common Shares Outstanding | 71,611 | 71,538 | 73 | |||||||||
Dividends Per Common Share | $ | 0.24 | $ | 0.23 | $ | 0.01 | ||||||
CONSOLIDATED STATEMENTSOF INCOME (UNAUDITED)
For the 12 months ending June 30, 2008 and 2007
| Trailing 12 Months | ||||||||||||
(in thousands, except per share data) | 2008 | 2007 | Change | |||||||||
Operating Revenues | ||||||||||||
Oil and gas operations | $ | 884,878 | $ | 789,234 | $ | 95,644 | ||||||
Natural gas distribution | 605,511 | 641,819 | (36,308 | ) | ||||||||
Total operating revenues | 1,490,389 | 1,431,053 | 59,336 | |||||||||
Operating Expenses | ||||||||||||
Cost of gas | 314,191 | 342,712 | (28,521 | ) | ||||||||
Operations and maintenance | 347,268 | 315,427 | 31,841 | |||||||||
Depreciation, depletion and amortization | 171,180 | 150,017 | 21,163 | |||||||||
Taxes, other than income taxes | 108,422 | 93,797 | 14,625 | |||||||||
Accretion expense | 4,127 | 3,730 | 397 | |||||||||
Total operating expenses | 945,188 | 905,683 | 39,505 | |||||||||
Operating Income | 545,201 | 525,370 | 19,831 | |||||||||
Other Income (Expense) | ||||||||||||
Interest expense | (44,243 | ) | (47,346 | ) | 3,103 | |||||||
Other income | 1,887 | 1,422 | 465 | |||||||||
Other expense | (1,625 | ) | (849 | ) | (776 | ) | ||||||
Total other expense | (43,981 | ) | (46,773 | ) | 2,792 | |||||||
Income from Continuing Operations Before Income Taxes | 501,220 | 478,597 | 22,623 | |||||||||
Income tax expense | 180,226 | 170,393 | 9,833 | |||||||||
Income from Continuing Operations | 320,994 | 308,204 | 12,790 | |||||||||
Discontinued Operations, Net of Taxes | ||||||||||||
Income from discontinued operations | 2 | 3 | (1 | ) | ||||||||
Gain on disposal of discontinued operations | 18 | 53 | (35 | ) | ||||||||
Income from Discontinued Operations | 20 | 56 | (36 | ) | ||||||||
Net Income | $ | 321,014 | $ | 308,260 | $ | 12,754 | ||||||
Diluted Earnings Per Average Common Share | ||||||||||||
Continuing operations | $ | 4.46 | $ | 4.26 | $ | 0.20 | ||||||
Discontinued operations | — | — | — | |||||||||
Net Income | $ | 4.46 | $ | 4.26 | $ | 0.20 | ||||||
Basic Earnings Per Average Common Share | ||||||||||||
Continuing operations | $ | 4.48 | $ | 4.29 | $ | 0.19 | ||||||
Discontinued operations | — | 0.01 | (0.01 | ) | ||||||||
Net Income | $ | 4.48 | $ | 4.30 | $ | 0.18 | ||||||
Diluted Avg. Common Shares Outstanding | 72,044 | 72,315 | (271 | ) | ||||||||
Basic Avg. Common Shares Outstanding | 71,641 | 71,765 | (124 | ) | ||||||||
Dividends Per Common Share | $ | 0.47 | $ | 0.45 | $ | 0.02 | ||||||
SELECTED BUSINESS SEGMENT DATA (UNAUDITED)
For the 3 months ending June 30, 2008 and 2007
| 2nd Quarter | |||||||||||
(in thousands, except sales price data) | 2008 | 2007 | Change | ||||||||
Oil and Gas Operations | |||||||||||
Operating revenues | |||||||||||
Natural gas | $ | 135,216 | $ | 124,712 | $ | 10,504 | |||||
Oil | 74,928 | 60,615 | 14,313 | ||||||||
Natural gas liquids | 20,065 | 16,548 | 3,517 | ||||||||
Other | 1,571 | 1,481 | 90 | ||||||||
Total | $ | 231,780 | $ | 203,356 | $ | 28,424 | |||||
Production volumes from continuing operations | |||||||||||
Natural gas (MMcf) | 16,396 | 15,690 | 706 | ||||||||
Oil (MBbl) | 1,006 | 947 | 59 | ||||||||
Natural gas liquids (MMgal) | 18.1 | 19.1 | (1.0 | ) | |||||||
Production volumes from continuing ops. (MMcfe) | 25,022 | 24,099 | 923 | ||||||||
Total production volumes (MMcfe) | 25,022 | 24,099 | 923 | ||||||||
Revenue per unit of production including effects of all derivative instruments | |||||||||||
Natural gas (Mcf) | $ | 8.25 | $ | 7.95 | $ | 0.30 | |||||
Oil (barrel) | $ | 74.51 | $ | 64.03 | $ | 10.48 | |||||
Natural gas liquids (gallon) | $ | 1.11 | $ | 0.87 | $ | 0.24 | |||||
Other data from continuing operations | |||||||||||
Lease operating expense (LOE) | |||||||||||
LOE and other | $ | 41,602 | $ | 39,121 | $ | 2,481 | |||||
Production taxes | 21,553 | 13,589 | 7,964 | ||||||||
Total | $ | 63,155 | $ | 52,710 | $ | 10,445 | |||||
Depreciation, depletion and amortization | $ | 31,995 | $ | 27,000 | $ | 4,995 | |||||
General and administrative expense | $ | 13,528 | $ | 11,025 | $ | 2,503 | |||||
Capital expenditures | $ | 98,513 | $ | 107,126 | $ | (8,613 | ) | ||||
Exploration expenditures | $ | 2,960 | $ | 178 | $ | 2,782 | |||||
Operating income | $ | 119,087 | $ | 111,472 | $ | 7,615 | |||||
Natural Gas Distribution | |||||||||||
Operating revenues | |||||||||||
Residential | $ | 63,711 | $ | 66,828 | $ | (3,117 | ) | ||||
Commercial and industrial | 31,378 | 31,172 | 206 | ||||||||
Transportation | 11,506 | 11,367 | 139 | ||||||||
Other | 2,891 | 2,199 | 692 | ||||||||
Total | $ | 109,486 | $ | 111,566 | $ | (2,080 | ) | ||||
Gas delivery volumes (MMcf) | |||||||||||
Residential | 3,211 | 3,187 | 24 | ||||||||
Commercial and industrial | 1,983 | 1,981 | 2 | ||||||||
Transportation | 11,264 | 12,197 | (933 | ) | |||||||
Total | 16,458 | 17,365 | (907 | ) | |||||||
Other data | |||||||||||
Depreciation and amortization | $ | 12,119 | $ | 11,707 | $ | 412 | |||||
Capital expenditures | $ | 15,926 | $ | 16,606 | $ | (680 | ) | ||||
Operating income | $ | (1,472 | ) | $ | 4,970 | $ | (6,442 | ) | |||
SELECTED BUSINESS SEGMENT DATA (UNAUDITED)
For the 6 months ending June 30, 2008 and 2007
| Year-to-date | ||||||||||
(in thousands, except sales price data) | 2008 | 2007 | Change | |||||||
Oil and Gas Operations | ||||||||||
Operating revenues | ||||||||||
Natural gas | $ | 266,170 | $ | 247,937 | $ | 18,233 | ||||
Oil | 139,027 | 114,699 | 24,328 | |||||||
Natural gas liquids | 37,511 | 31,590 | 5,921 | |||||||
Other | 13,967 | 3,163 | 10,804 | |||||||
Total | $ | 456,675 | $ | 397,389 | $ | 59,286 | ||||
Production volumes from continuing operations | ||||||||||
Natural gas (MMcf) | 32,823 | 31,237 | 1,586 | |||||||
Oil (MBbl) | 1,950 | 1,873 | 77 | |||||||
Natural gas liquids (MMgal) | 34.9 | 38.0 | (3.1 | ) | ||||||
Production volumes from continuing ops. (MMcfe) | 49,505 | 47,905 | 1,600 | |||||||
Total production volumes (MMcfe) | 49,505 | 47,904 | 1,601 | |||||||
Revenue per unit of production including effects of all derivative instruments | ||||||||||
Natural gas (Mcf) | $ | 8.11 | $ | 7.94 | $ | 0.17 | ||||
Oil (barrel) | $ | 71.31 | $ | 61.23 | $ | 10.08 | ||||
Natural gas liquids (gallon) | $ | 1.08 | $ | 0.83 | $ | 0.25 | ||||
Other data from continuing operations | ||||||||||
Lease operating expense (LOE) | ||||||||||
LOE and other | $ | 84,737 | $ | 74,530 | $ | 10,207 | ||||
Production taxes | 38,129 | 25,600 | 12,529 | |||||||
Total | $ | 122,866 | $ | 100,130 | $ | 22,736 | ||||
Depreciation, depletion and amortization | $ | 62,391 | $ | 53,473 | $ | 8,918 | ||||
General and administrative expense | $ | 25,427 | $ | 24,817 | $ | 610 | ||||
Capital expenditures | $ | 172,910 | $ | 160,521 | $ | 12,389 | ||||
Exploration expenditures | $ | 3,309 | $ | 275 | $ | 3,034 | ||||
Operating income | $ | 240,582 | $ | 216,773 | $ | 23,809 | ||||
Natural Gas Distribution | ||||||||||
Operating revenues | ||||||||||
Residential | $ | 263,286 | $ | 270,626 | $ | (7,340 | ) | |||
Commercial and industrial | 108,883 | 108,894 | (11 | ) | ||||||
Transportation | 27,009 | 25,934 | 1,075 | |||||||
Other | 7,059 | 4,740 | 2,319 | |||||||
Total | $ | 406,237 | $ | 410,194 | $ | (3,957 | ) | |||
Gas delivery volumes (MMcf) | ||||||||||
Residential | 14,742 | 14,766 | (24 | ) | ||||||
Commercial and industrial | 6,959 | 6,853 | 106 | |||||||
Transportation | 25,561 | 25,617 | (56 | ) | ||||||
Total | 47,262 | 47,236 | 26 | |||||||
Other data | ||||||||||
Depreciation and amortization | $ | 24,139 | $ | 23,254 | $ | 885 | ||||
Capital expenditures | $ | 28,996 | $ | 31,573 | $ | (2,577 | ) | |||
Operating income | $ | 73,016 | $ | 73,407 | $ | (391 | ) | |||
SELECTED BUSINESS SEGMENT DATA (UNAUDITED)
For the 12 months ending June 30, 2008 and 2007
| Trailing 12 Months | ||||||||||
(in thousands, except sales price data) | 2008 | 2007 | Change | |||||||
Oil and Gas Operations | ||||||||||
Operating revenues | ||||||||||
Natural gas | $ | 517,639 | $ | 463,219 | $ | 54,420 | ||||
Oil | 275,825 | 206,541 | 69,284 | |||||||
Natural gas liquids | 74,544 | 58,364 | 16,180 | |||||||
Other | 16,870 | 61,110 | (44,240 | ) | ||||||
Total | $ | 884,878 | $ | 789,234 | $ | 95,644 | ||||
Production volumes from continuing operations | ||||||||||
Natural gas (MMcf) | 65,886 | 63,009 | 2,877 | |||||||
Oil (MBbl) | 3,956 | 3,686 | 270 | |||||||
Natural gas liquids (MMgal) | 74.1 | 77.6 | (3.5 | ) | ||||||
Production volumes from continuing ops. (MMcfe) | 100,206 | 96,216 | 3,990 | |||||||
Total production volumes (MMcfe) | 100,206 | 96,215 | 3,991 | |||||||
Revenue per unit of production including effects of all derivative instruments | ||||||||||
Natural gas (Mcf) | $ | 7.86 | $ | 7.35 | $ | 0.51 | ||||
Oil (barrel) | $ | 69.73 | $ | 56.03 | $ | 13.70 | ||||
Natural gas liquids (gallon) | $ | 1.01 | $ | 0.75 | $ | 0.26 | ||||
Other data | ||||||||||
Lease operating expense (LOE) | ||||||||||
LOE and other | $ | 158,487 | $ | 143,899 | $ | 14,588 | ||||
Production taxes | 66,327 | 49,257 | 17,070 | |||||||
Total | $ | 224,814 | $ | 193,156 | $ | 31,658 | ||||
Depreciation, depletion and amortization | $ | 123,159 | $ | 104,198 | $ | 18,961 | ||||
General and administrative expense | $ | 51,474 | $ | 38,975 | $ | 12,499 | ||||
Capital expenditures | $ | 391,868 | $ | 324,642 | $ | 67,226 | ||||
Exploration expenditures | $ | 5,928 | $ | 2,930 | $ | 2,998 | ||||
Operating income | $ | 475,376 | $ | 446,245 | $ | 29,131 | ||||
Natural Gas Distribution | ||||||||||
Operating revenues | ||||||||||
Residential | $ | 380,951 | $ | 410,691 | $ | (29,740 | ) | |||
Commercial and industrial | 164,892 | 173,381 | (8,489 | ) | ||||||
Transportation | 50,330 | 48,888 | 1,442 | |||||||
Other | 9,338 | 8,859 | 479 | |||||||
Total | $ | 605,511 | $ | 641,819 | $ | (36,308 | ) | |||
Gas delivery volumes (MMcf) | ||||||||||
Residential | 20,641 | 22,096 | (1,455 | ) | ||||||
Commercial and industrial | 10,699 | 11,054 | (355 | ) | ||||||
Transportation | 51,391 | 51,429 | (38 | ) | ||||||
Total | 82,731 | 84,579 | (1,848 | ) | ||||||
Other data | ||||||||||
Depreciation and amortization | $ | 48,021 | $ | 45,819 | $ | 2,202 | ||||
Capital expenditures | $ | 56,285 | $ | 67,295 | $ | (11,010 | ) | |||
Operating income | $ | 72,351 | $ | 81,243 | $ | (8,892 | ) | |||