Exhibit 99.2
CONSOLIDATED STATEMENTSOF INCOME (UNAUDITED)
For the 3 months ending March 31, 2013 and 2012
1st Quarter | ||||||||||||
(in thousands, except per share data) | 2013 | 2012 | Change | |||||||||
Operating Revenues | ||||||||||||
Oil and gas operations | $ | 254,994 | $ | 223,957 | $ | 31,037 | ||||||
Natural gas distribution | 237,685 | 194,487 | 43,198 | |||||||||
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Total operating revenues | 492,679 | 418,444 | 74,235 | |||||||||
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Operating Expenses | ||||||||||||
Cost of gas | 95,442 | 59,586 | 35,856 | |||||||||
Operations and maintenance | 145,837 | 110,561 | 35,276 | |||||||||
Depreciation, depletion and amortization | 115,295 | 94,534 | 20,761 | |||||||||
Asset impairment | — | 21,545 | (21,545 | ) | ||||||||
Taxes, other than income taxes | 28,772 | 26,235 | 2,537 | |||||||||
Accretion expense | 1,997 | 1,813 | 184 | |||||||||
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Total operating expenses | 387,343 | 314,274 | 73,069 | |||||||||
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Operating Income | 105,336 | 104,170 | 1,166 | |||||||||
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Other Income (Expense) | ||||||||||||
Interest expense | (16,754 | ) | (15,425 | ) | (1,329 | ) | ||||||
Other income | 1,758 | 2,032 | (274 | ) | ||||||||
Other expense | (69 | ) | (113 | ) | 44 | |||||||
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Total other expense | (15,065 | ) | (13,506 | ) | (1,559 | ) | ||||||
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Income Before Income Taxes | 90,271 | 90,664 | (393 | ) | ||||||||
Income tax expense | 33,579 | 33,258 | 321 | |||||||||
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Net Income | $ | 56,692 | $ | 57,406 | $ | (714 | ) | |||||
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Diluted Earnings Per Average Common Share | $ | 0.78 | $ | 0.79 | $ | (0.01 | ) | |||||
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Basic Earnings Per Average Common Share | $ | 0.79 | $ | 0.80 | $ | (0.01 | ) | |||||
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Diluted Avg. Common Shares Outstanding | 72,288 | 72,326 | (38 | ) | ||||||||
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Basic Avg. Common Shares Outstanding | 72,143 | 72,102 | 41 | |||||||||
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Dividends Per Common Share | $ | 0.145 | $ | 0.14 | $ | 0.005 | ||||||
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CONSOLIDATED BALANCE SHEETS (UNAUDITED)
As of March 31, 2013 and December 31, 2012
(in thousands) | March 31, 2013 | December 31, 2012 | ||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 20,303 | $ | 9,704 | ||||
Accounts receivable, net of allowance | 242,421 | 277,900 | ||||||
Inventories | 37,656 | 63,994 | ||||||
Regulatory asset | 24,135 | 45,515 | ||||||
Other | 41,245 | 28,007 | ||||||
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Total current assets | 365,760 | 425,120 | ||||||
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Property, Plant and Equipment | ||||||||
Oil and gas properties, net | 4,853,675 | 4,673,886 | ||||||
Utility plant, net | 852,299 | 842,643 | ||||||
Other property, net | 25,218 | 25,107 | ||||||
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Total property, plant and equipment, net | 5,731,192 | 5,541,636 | ||||||
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Other Assets | ||||||||
Regulatory asset | 109,002 | 110,566 | ||||||
Long-term derivative instruments | 26,199 | 40,577 | ||||||
Other | 61,939 | 57,991 | ||||||
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Total other assets | 197,140 | 209,134 | ||||||
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TOTAL ASSETS | $ | 6,294,092 | $ | 6,175,890 | ||||
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LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current Liabilities | ||||||||
Long-term debt due within one year | $ | 75,000 | $ | 50,000 | ||||
Notes payable to banks | 712,000 | 643,000 | ||||||
Accounts payable | 285,920 | 257,579 | ||||||
Regulatory liability | 41,886 | 45,116 | ||||||
Other | 159,093 | 164,087 | ||||||
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Total current liabilities | 1,273,899 | 1,159,782 | ||||||
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Long-term debt | 1,078,529 | 1,103,528 | ||||||
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Deferred Credits and Other Liabilities | ||||||||
Regulatory liability | 68,812 | 80,404 | ||||||
Deferred income taxes | 931,628 | 905,601 | ||||||
Long-term derivative instruments | 9,705 | 11,305 | ||||||
Other | 240,095 | 238,580 | ||||||
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Total deferred credits and other liabilities | 1,250,240 | 1,235,890 | ||||||
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Total Shareholders’ Equity | 2,691,424 | 2,676,690 | ||||||
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TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 6,294,092 | $ | 6,175,890 | ||||
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SELECTED BUSINESS SEGMENT DATA (UNAUDITED)
For the 3 months ending March 31, 2013 and 2012
1st Quarter | ||||||||||||
(in thousands, except sales price data) | 2013 | 2012 | Change | |||||||||
Oil and Gas Operations (GAAP) | ||||||||||||
Operating revenues | ||||||||||||
Natural gas | $ | 71,072 | $ | 75,580 | $ | (4,508 | ) | |||||
Oil | 161,812 | 124,314 | 37,498 | |||||||||
Natural gas liquids | 21,116 | 23,712 | (2,596 | ) | ||||||||
Other | 994 | 351 | 643 | |||||||||
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Total (GAAP) | $ | 254,994 | $ | 223,957 | $ | 31,037 | ||||||
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Oil and Gas Operations excluding mark-to-market (Non-GAAP) | ||||||||||||
Operating revenues | ||||||||||||
Natural gas | $ | 75,447 | $ | 75,297 | $ | 150 | ||||||
Oil | 198,464 | 166,234 | 32,230 | |||||||||
Natural gas liquids | 21,137 | 22,747 | (1,610 | ) | ||||||||
Other | 994 | 351 | 643 | |||||||||
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Total (Non-GAAP)* | $ | 296,042 | $ | 264,629 | $ | 31,413 | ||||||
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Production volumes | ||||||||||||
Natural gas (MMcf) | 17,688 | 19,092 | (1,404 | ) | ||||||||
Oil (MBbl) | 2,317 | 1,953 | 364 | |||||||||
Natural gas liquids (MMgal) | 27.6 | 26.0 | 1.6 | |||||||||
Total production volumes (MMcfe) | 35,526 | 34,530 | 996 | |||||||||
Total production volumes (MBOE) | 5,921 | 5,755 | 166 | |||||||||
Revenue per unit of production including effects of designated cash flow hedges | ||||||||||||
Natural gas (Mcf) | $ | 4.27 | $ | 3.94 | $ | 0.33 | ||||||
Oil (barrel) | $ | 85.66 | $ | 85.12 | $ | 0.54 | ||||||
Natural gas liquids (gallon) | $ | 0.77 | $ | 0.87 | $ | (0.10 | ) | |||||
Revenue per unit of production excluding effects of all derivative instruments | ||||||||||||
Natural gas (Mcf) | $ | 3.31 | $ | 2.67 | $ | 0.64 | ||||||
Oil (barrel) | $ | 82.44 | $ | 98.58 | $ | (16.14 | ) | |||||
Natural gas liquids (gallon) | $ | 0.68 | $ | 0.95 | $ | (0.27 | ) | |||||
Other data | ||||||||||||
Lease operating expense (LOE) | ||||||||||||
LOE and other | $ | 81,546 | $ | 56,612 | $ | 24,934 | ||||||
Production taxes | 14,363 | 14,162 | 201 | |||||||||
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Total | $ | 95,909 | $ | 70,774 | $ | 25,135 | ||||||
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Depreciation, depletion and amortization | $ | 104,566 | $ | 84,088 | $ | 20,478 | ||||||
Asset impairment | $ | — | $ | 21,545 | $ | (21,545 | ) | |||||
General and administrative expense | $ | 24,695 | $ | 17,943 | $ | 6,752 | ||||||
Capital expenditures | $ | 285,053 | $ | 340,967 | $ | (55,914 | ) | |||||
Exploration expenditures | $ | 1,500 | $ | 1,789 | $ | (289 | ) | |||||
Operating income | $ | 26,327 | $ | 26,005 | $ | 322 |
* | Operating revenues excluding mark-to-market losses of $41,048 and $40,672 in first quarter 2013 and 2012, respectively. |
Natural Gas Distribution | ||||||||||||
Operating revenues | ||||||||||||
Residential | $ | 162,739 | $ | 130,509 | $ | 32,230 | ||||||
Commercial and industrial | 57,599 | 46,756 | 10,843 | |||||||||
Transportation | 18,240 | 15,598 | 2,642 | |||||||||
Other | (893 | ) | 1,624 | (2,517 | ) | |||||||
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Total | $ | 237,685 | $ | 194,487 | $ | 43,198 | ||||||
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Gas delivery volumes (MMcf) | ||||||||||||
Residential | 10,382 | 8,238 | 2,144 | |||||||||
Commercial and industrial | 4,207 | 3,442 | 765 | |||||||||
Transportation | 12,790 | 12,036 | 754 | |||||||||
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Total | 27,379 | 23,716 | 3,663 | |||||||||
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Other data | ||||||||||||
Depreciation and amortization | $ | 10,729 | $ | 10,446 | $ | 283 | ||||||
Capital expenditures | $ | 19,697 | $ | 14,943 | $ | 4,754 | ||||||
Operating income | $ | 79,293 | $ | 78,560 | $ | 733 |