Exhibit 99.2
CONSOLIDATED STATEMENTSOF INCOME (UNAUDITED)
For the 3 months ending June 30, 2012 and 2011
2nd Quarter | ||||||||||||
(in thousands, except per share data) | 2012 | 2011 | Change | |||||||||
Operating Revenues | ||||||||||||
Oil and gas operations | $ | 399,468 | $ | 244,090 | $ | 155,378 | ||||||
Natural gas distribution | 70,887 | 86,309 | (15,422 | ) | ||||||||
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Total operating revenues | 470,355 | 330,399 | 139,956 | |||||||||
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Operating Expenses | ||||||||||||
Cost of gas | 13,669 | 32,419 | (18,750 | ) | ||||||||
Operations and maintenance | 112,713 | 103,232 | 9,481 | |||||||||
Depreciation, depletion and amortization | 101,991 | 65,629 | 36,362 | |||||||||
Taxes, other than income taxes | 19,523 | 21,095 | (1,572 | ) | ||||||||
Accretion expense | 1,861 | 1,689 | 172 | |||||||||
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Total operating expenses | 249,757 | 224,064 | 25,693 | |||||||||
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Operating Income | 220,598 | 106,335 | 114,263 | |||||||||
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Other Income (Expense) | ||||||||||||
Interest expense | (15,835 | ) | (9,463 | ) | (6,372 | ) | ||||||
Other income | 659 | 779 | (120 | ) | ||||||||
Other expense | (582 | ) | (113 | ) | (469 | ) | ||||||
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Total other expense | (15,758 | ) | (8,797 | ) | (6,961 | ) | ||||||
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Income Before Income Taxes | 204,840 | 97,538 | 107,302 | |||||||||
Income tax expense | 73,553 | 34,213 | 39,340 | |||||||||
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Net Income | $ | 131,287 | $ | 63,325 | $ | 67,962 | ||||||
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Diluted Earnings Per Average Common Share | $ | 1.82 | $ | 0.87 | $ | 0.95 | ||||||
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Basic Earnings Per Average Common Share | $ | 1.82 | $ | 0.88 | $ | 0.94 | ||||||
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Diluted Avg. Common Shares Outstanding | 72,330 | 72,420 | (90 | ) | ||||||||
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Basic Avg. Common Shares Outstanding | 72,117 | 72,065 | 52 | |||||||||
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Dividends Per Common Share | $ | 0.14 | $ | 0.135 | $ | 0.005 | ||||||
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18
CONSOLIDATED STATEMENTSOF INCOME (UNAUDITED)
For the 6 months ending June 30, 2012 and 2011
Year-to-date | ||||||||||||
(in thousands, except per share data) | 2012 | 2011 | Change | |||||||||
Operating Revenues | ||||||||||||
Oil and gas operations | $ | 623,425 | $ | 460,882 | $ | 162,543 | ||||||
Natural gas distribution | 265,374 | 355,881 | (90,507 | ) | ||||||||
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Total operating revenues | 888,799 | 816,763 | 72,036 | |||||||||
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Operating Expenses | ||||||||||||
Cost of gas | 73,255 | 164,168 | (90,913 | ) | ||||||||
Operations and maintenance | 223,274 | 207,014 | 16,260 | |||||||||
Depreciation, depletion and amortization | 196,525 | 126,757 | 69,768 | |||||||||
Asset impairment | 21,545 | — | 21,545 | |||||||||
Taxes, other than income taxes | 45,758 | 49,270 | (3,512 | ) | ||||||||
Accretion expense | 3,674 | 3,338 | 336 | |||||||||
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Total operating expenses | 564,031 | 550,547 | 13,484 | |||||||||
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Operating Income | 324,768 | 266,216 | 58,552 | |||||||||
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Other Income (Expense) | ||||||||||||
Interest expense | (31,260 | ) | (18,867 | ) | (12,393 | ) | ||||||
Other income | 2,217 | 2,009 | 208 | |||||||||
Other expense | (221 | ) | (276 | ) | 55 | |||||||
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Total other expense | (29,264 | ) | (17,134 | ) | (12,130 | ) | ||||||
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Income Before Income Taxes | 295,504 | 249,082 | 46,422 | |||||||||
Income tax expense | 106,811 | 91,489 | 15,322 | |||||||||
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Net Income | $ | 188,693 | $ | 157,593 | $ | 31,100 | ||||||
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Diluted Earnings Per Average Common Share | $ | 2.61 | $ | 2.18 | $ | 0.43 | ||||||
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Basic Earnings Per Average Common Share | $ | 2.62 | $ | 2.19 | $ | 0.43 | ||||||
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Diluted Avg. Common Shares Outstanding | 72,336 | 72,364 | (28 | ) | ||||||||
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Basic Avg. Common Shares Outstanding | 72,110 | 72,033 | 77 | |||||||||
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Dividends Per Common Share | $ | 0.28 | $ | 0.27 | $ | 0.01 | ||||||
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19
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
As of June 30, 2012 and December 31, 2011
(in thousands) | June 30, 2012 | December 31, 2011 | ||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 61,306 | $ | 9,541 | ||||
Accounts receivable, net of allowance | 247,095 | 231,925 | ||||||
Inventories | 75,428 | 74,012 | ||||||
Regulatory asset | 60,485 | 57,143 | ||||||
Other | 27,135 | 71,547 | ||||||
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Total current assets | 471,449 | 444,168 | ||||||
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Property, Plant and Equipment | ||||||||
Oil and gas properties, net | 4,219,527 | 3,783,842 | ||||||
Utility plant, net | 826,426 | 813,428 | ||||||
Other property, net | 23,914 | 23,506 | ||||||
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Total property, plant and equipment, net | 5,069,867 | 4,620,776 | ||||||
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Other Assets | ||||||||
Regulatory asset | 89,785 | 95,633 | ||||||
Long-term derivative instruments | 103,273 | 31,056 | ||||||
Other | 45,166 | 45,783 | ||||||
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Total other assets | 238,224 | 172,472 | ||||||
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TOTAL ASSETS | $ | 5,779,540 | $ | 5,237,416 | ||||
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LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current Liabilities | ||||||||
Long-term debt due within one year | $ | 1,000 | $ | 1,000 | ||||
Notes payable to banks | 310,000 | 15,000 | ||||||
Accounts payable | 252,586 | 302,048 | ||||||
Regulatory liability | 28,497 | 58,279 | ||||||
Other | 197,478 | 167,552 | ||||||
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Total current liabilities | 789,561 | 543,879 | ||||||
Long-term debt | 1,153,599 | 1,153,700 | ||||||
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Deferred Credits and Other Liabilities | ||||||||
Regulatory liability | 77,144 | 87,234 | ||||||
Deferred income taxes | 877,749 | 806,127 | ||||||
Long-term derivative instruments | 1,624 | 34,663 | ||||||
Other | 187,319 | 179,650 | ||||||
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Total deferred credits and other liabilities | 1,143,836 | 1,107,674 | ||||||
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Total Shareholders’ Equity | 2,692,544 | 2,432,163 | ||||||
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TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 5,779,540 | $ | 5,237,416 | ||||
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20
SELECTED BUSINESS SEGMENT DATA (UNAUDITED)
For the 3 months ending June 30, 2012 and 2011
2nd Quarter | ||||||||||||
(in thousands, except sales price data) | 2012 | 2011 | Change | |||||||||
Oil and Gas Operations | ||||||||||||
Operating revenues | ||||||||||||
Natural gas | $ | 68,249 | $ | 98,037 | $ | (29,788 | ) | |||||
Oil | 306,960 | 118,938 | 188,022 | |||||||||
Natural gas liquids | 23,692 | 21,482 | 2,210 | |||||||||
Other | 567 | 5,633 | (5,066 | ) | ||||||||
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Total | $ | 399,468 | $ | 244,090 | $ | 155,378 | ||||||
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Production volumes | ||||||||||||
Natural gas (MMcf) | 19,278 | 17,778 | 1,500 | |||||||||
Oil (MBbl) | 2,195 | 1,501 | 694 | |||||||||
Natural gas liquids (MMgal) | 27.8 | 22.6 | 5.2 | |||||||||
Total production volumes (MMcfe) | 36,414 | 30,012 | 6,402 | |||||||||
Total production volumes (MBOE) | 6,069 | 5,002 | 1,067 | |||||||||
Revenue per unit of production including effects of all derivative instruments | ||||||||||||
Natural gas (Mcf) | $ | 3.54 | $ | 5.51 | $ | (1.97 | ) | |||||
Oil (barrel) | $ | 139.85 | $ | 79.24 | $ | 60.61 | ||||||
Natural gas liquids (gallon) | $ | 0.85 | $ | 0.95 | $ | (0.10 | ) | |||||
Revenue per unit of production including effects of qualifying cash flow hedges | ||||||||||||
Natural gas (Mcf) | $ | 3.55 | $ | 5.51 | $ | (1.96 | ) | |||||
Oil (barrel) | $ | 85.70 | $ | 79.24 | $ | 6.46 | ||||||
Natural gas liquids (gallon) | $ | 0.75 | $ | 0.95 | $ | (0.20 | ) | |||||
Revenue per unit of production excluding effects of all derivative instruments | ||||||||||||
Natural gas (Mcf) | $ | 2.19 | $ | 4.18 | $ | (1.99 | ) | |||||
Oil (barrel) | $ | 85.70 | $ | 96.79 | $ | (11.09 | ) | |||||
Natural gas liquids (gallon) | $ | 0.71 | $ | 1.12 | $ | (0.41 | ) | |||||
Other data | ||||||||||||
Lease operating expense (LOE) | ||||||||||||
LOE and other | $ | 58,779 | $ | 50,712 | $ | 8,067 | ||||||
Production taxes | 13,205 | 14,192 | (987 | ) | ||||||||
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Total | $ | 71,984 | $ | 64,904 | $ | 7,080 | ||||||
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Depreciation, depletion and amortization | $ | 91,458 | $ | 55,783 | $ | 35,675 | ||||||
General and administrative expense | $ | 16,807 | $ | 15,089 | $ | 1,718 | ||||||
Capital expenditures | $ | 293,909 | $ | 259,533 | $ | 34,376 | ||||||
Exploration expenditures | $ | 952 | $ | 1,207 | $ | (255 | ) | |||||
Operating income | $ | 216,406 | $ | 105,418 | $ | 110,988 | ||||||
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Natural Gas Distribution | ||||||||||||
Operating revenues | ||||||||||||
Residential | $ | 40,371 | $ | 51,370 | $ | (10,999 | ) | |||||
Commercial and industrial | 20,442 | 23,393 | (2,951 | ) | ||||||||
Transportation | 13,661 | 11,961 | 1,700 | |||||||||
Other | (3,587 | ) | (415 | ) | (3,172 | ) | ||||||
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Total | $ | 70,887 | $ | 86,309 | $ | (15,422 | ) | |||||
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Gas delivery volumes (MMcf) | ||||||||||||
Residential | 1,985 | 2,749 | (764 | ) | ||||||||
Commercial and industrial | 1,449 | 1,662 | (213 | ) | ||||||||
Transportation | 11,547 | 10,739 | 808 | |||||||||
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Total | 14,981 | 15,150 | (169 | ) | ||||||||
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Other data | ||||||||||||
Depreciation and amortization | $ | 10,533 | $ | 9,846 | $ | 687 | ||||||
Capital expenditures | $ | 18,030 | $ | 22,297 | $ | (4,267 | ) | |||||
Operating income | $ | 4,448 | $ | 1,163 | $ | 3,285 | ||||||
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SELECTED BUSINESS SEGMENT DATA (UNAUDITED)
For the 6 months ending June 30, 2012 and 2011
Year-to-date | ||||||||||||
(in thousands, except sales price data) | 2012 | 2011 | Change | |||||||||
Oil and Gas Operations | ||||||||||||
Operating revenues | ||||||||||||
Natural gas | $ | 143,829 | $ | 193,636 | $ | (49,807 | ) | |||||
Oil | 431,274 | 222,194 | 209,080 | |||||||||
Natural gas liquids | 47,404 | 39,015 | 8,389 | |||||||||
Other | 918 | 6,037 | (5,119 | ) | ||||||||
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Total | $ | 623,425 | $ | 460,882 | $ | 162,543 | ||||||
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Production volumes | ||||||||||||
Natural gas (MMcf) | 38,370 | 35,112 | 3,258 | |||||||||
Oil (MBbl) | 4,148 | 2,865 | 1,283 | |||||||||
Natural gas liquids (MMgal) | 53.8 | 42.3 | 11.5 | |||||||||
Total production volumes (MMcfe) | 70,944 | 58,350 | 12,594 | |||||||||
Total production volumes (MBOE) | 11,824 | 9,725 | 2,099 | |||||||||
Revenue per unit of production including effects of all derivative instruments | ||||||||||||
Natural gas (Mcf) | $ | 3.75 | $ | 5.51 | $ | (1.76 | ) | |||||
Oil (barrel) | $ | 103.97 | $ | 77.55 | $ | 26.42 | ||||||
Natural gas liquids (gallon) | $ | 0.88 | $ | 0.92 | $ | (0.04 | ) | |||||
Revenue per unit of production including effects of qualifying cash flow hedges | ||||||||||||
Natural gas (Mcf) | $ | 3.75 | $ | 5.51 | $ | (1.76 | ) | |||||
Oil (barrel) | $ | 85.43 | $ | 77.55 | $ | 7.88 | ||||||
Natural gas liquids (gallon) | $ | 0.81 | $ | 0.92 | $ | (0.11 | ) | |||||
Revenue per unit of production excluding effects of all derivative instruments | ||||||||||||
Natural gas (Mcf) | $ | 2.43 | $ | 4.10 | $ | (1.67 | ) | |||||
Oil (barrel) | $ | 91.77 | $ | 92.92 | $ | (1.15 | ) | |||||
Natural gas liquids (gallon) | $ | 0.83 | $ | 1.07 | $ | (0.24 | ) | |||||
Other data | ||||||||||||
Lease operating expense (LOE) | ||||||||||||
LOE and other | $ | 115,391 | $ | 97,657 | $ | 17,734 | ||||||
Production taxes | 27,367 | 26,475 | 892 | |||||||||
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Total | $ | 142,758 | $ | 124,132 | $ | 18,626 | ||||||
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Depreciation, depletion and amortization | $ | 175,546 | $ | 107,131 | $ | 68,415 | ||||||
Asset impairment | $ | 21,545 | $ | — | $ | 21,545 | ||||||
General and administrative expense | $ | 34,750 | $ | 33,983 | $ | 767 | ||||||
Capital expenditures | $ | 634,876 | $ | 399,856 | $ | 235,020 | ||||||
Exploration expenditures | $ | 2,741 | $ | 1,821 | $ | 920 | ||||||
Operating income | $ | 242,411 | $ | 190,477 | $ | 51,934 | ||||||
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Natural Gas Distribution | ||||||||||||
Operating revenues | ||||||||||||
Residential | $ | 170,879 | $ | 239,044 | $ | (68,165 | ) | |||||
Commercial and industrial | 67,198 | 90,299 | (23,101 | ) | ||||||||
Transportation | 29,259 | 28,454 | 805 | |||||||||
Other | (1,962 | ) | (1,916 | ) | (46 | ) | ||||||
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Total | $ | 265,374 | $ | 355,881 | $ | (90,507 | ) | |||||
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Gas delivery volumes (MMcf) | ||||||||||||
Residential | 10,223 | 15,340 | (5,117 | ) | ||||||||
Commercial and industrial | 4,891 | 6,662 | (1,771 | ) | ||||||||
Transportation | 23,583 | 23,709 | (126 | ) | ||||||||
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Total | 38,697 | 45,711 | (7,014 | ) | ||||||||
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Other data | ||||||||||||
Depreciation and amortization | $ | 20,979 | $ | 19,626 | $ | 1,353 | ||||||
Capital expenditures | $ | 32,973 | $ | 35,837 | $ | (2,864 | ) | |||||
Operating income | $ | 83,008 | $ | 76,222 | $ | 6,786 | ||||||
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