Exhibit 99.2
CONSOLIDATED STATEMENTSOF INCOME (UNAUDITED)
For the 3 months ending September 30, 2013 and 2012
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| 3rd Quarter | ||||||||||||
| (in thousands, except per share data) | 2013 | 2012 | Change | |||||||||
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Operating Revenues | ||||||||||||
Oil and gas operations | $ | 272,038 | $ | 214,620 | $ | 57,418 | ||||||
Natural gas distribution | 48,368 | 61,809 | (13,441) | |||||||||
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Total operating revenues | 320,406 | 276,429 | 43,977 | |||||||||
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Operating Expenses | ||||||||||||
Cost of gas | 20,435 | 20,924 | (489) | |||||||||
Operations and maintenance | 141,271 | 123,730 | 17,541 | |||||||||
Depreciation, depletion and amortization | 136,123 | 96,634 | 39,489 | |||||||||
Taxes, other than income taxes | 24,858 | 19,572 | 5,286 | |||||||||
Accretion expense | 1,771 | 1,605 | 166 | |||||||||
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Total operating expenses | 324,458 | 262,465 | 61,993 | |||||||||
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Operating Income (Loss) | (4,052) | 13,964 | (18,016) | |||||||||
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Other Income (Expense) | ||||||||||||
Interest expense | (17,689) | (17,195) | (494) | |||||||||
Other income | 13,062 | 1,488 | 11,574 | |||||||||
Other expense | (434) | (84) | (350) | |||||||||
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Total other expense | (5,061) | (15,791) | 10,730 | |||||||||
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Income (Loss) from Continuing Operations Before Income Taxes | (9,113) | (1,827) | (7,286) | |||||||||
Income tax expense (benefit) | (3,627) | (322) | (3,305) | |||||||||
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Income (Loss) from Continuing Operations | (5,486) | (1,505) | (3,981) | |||||||||
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Discontinued Operations, Net of Taxes | ||||||||||||
Income (loss) from discontinued operations | 1,866 | 3,551 | (1,685) | |||||||||
Gain (loss) on disposal | (15,678) | – | (15,678) | |||||||||
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Income (Loss) from Discontinued Operations | (13,812) | 3,551 | (17,363) | |||||||||
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Net Income (Loss) | $ | (19,298) | $ | 2,046 | $ | (21,344) | ||||||
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Diluted Earnings Per Average Common Share | $ | $ | ||||||||||
Continuing operations | (0.08) | (0.02) | (0.06) | |||||||||
Discontinued operations | (0.19) | 0.05 | (0.24) | |||||||||
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Net Income (Loss) | $ | (0.27) | $ | 0.03 | $ | (0.30) | ||||||
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Basic Earnings Per Average Common Share | $ | $ | $ | |||||||||
Continuing operations | (0.08) | (0.02) | (0.06) | |||||||||
Discontinued operations | (0.19) | 0.05 | (0.24) | |||||||||
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Net Income (Loss) | $ | (0.27) | $ | 0.03 | $ | (0.30) | ||||||
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Diluted Avg. Common Shares Outstanding | 72,346 | 72,316 | 30 | |||||||||
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Basic Avg. Common Shares Outstanding | 72,346 | 72,130 | 216 | |||||||||
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Dividends Per Common Share | $ | 0.145 | $ | 0.14 | $ | 0.005 | ||||||
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CONSOLIDATED STATEMENTSOF INCOME (UNAUDITED)
For the 9 months ending September 30, 2013 and 2012
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| Year-to-date | ||||||||||||
| (in thousands, except per share data) | 2013 | 2012 | Change | |||||||||
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Operating Revenues | ||||||||||||
Oil and gas operations | $ | 875,350 | $ | 799,339 | $ | 76,011 | ||||||
Natural gas distribution | 390,567 | 327,183 | 63,384 | |||||||||
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Total operating revenues | 1,265,917 | 1,126,522 | 139,395 | |||||||||
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Operating Expenses | ||||||||||||
Cost of gas | 163,448 | 94,179 | 69,269 | |||||||||
Operations and maintenance | 413,401 | 336,568 | 76,833 | |||||||||
Depreciation, depletion and amortization | 365,355 | 276,465 | 88,890 | |||||||||
Taxes, other than income taxes | 77,955 | 64,314 | 13,641 | |||||||||
Accretion expense | 5,187 | 4,691 | 496 | |||||||||
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Total operating expenses | 1,025,346 | 776,217 | 249,129 | |||||||||
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Operating Income (Loss) | 240,571 | 350,305 | (109,734) | |||||||||
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Other Income (Expense) | ||||||||||||
Interest expense | (51,751) | (48,447) | (3,304) | |||||||||
Other income | 15,578 | 3,678 | 11,900 | |||||||||
Other expense | (631) | (305) | (326) | |||||||||
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Total other expense | (36,804) | (45,074) | 8,270 | |||||||||
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Income (Loss) from Continuing Operations Before Income Taxes | 203,767 | 305,231 | (101,464) | |||||||||
Income tax expense (benefit) | 73,897 | 110,508 | (36,611) | |||||||||
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Income (Loss) from Continuing Operations | $ | 129,870 | $ | 194,723 | $ | (64,853) | ||||||
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Discontinued Operations, Net of Taxes | ||||||||||||
Income (loss) from operations | 6,269 | (3,984) | 10,253 | |||||||||
Gain (loss) on disposal | (15,678) | – | (15,678) | |||||||||
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Income (Loss) from Discontinued Operations | (9,409) | (3,984) | (5,425) | |||||||||
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Net Income (Loss) | 120,461 | 190,739 | (70,278) | |||||||||
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Diluted Earnings Per Average Common Share | $ | $ | $ | |||||||||
Continuing operations | 1.80 | 2.69 | (0.89) | |||||||||
Discontinued operations | (0.13) | (0.05) | (0.08) | |||||||||
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Net Income (Loss) | $ | 1.67 | $ | 2.64 | $ | (0.97) | ||||||
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Basic Earnings Per Average Common Share | $ | $ | $ | |||||||||
Continuing operations | 1.80 | 2.70 | (0.90) | |||||||||
Discontinued operations | (0.13) | (0.06) | (0.07) | |||||||||
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Net Income (Loss) | $ | 1.67 | $ | 2.64 | $ | (0.97) | ||||||
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Diluted Avg. Common Shares Outstanding | 72,272 | 72,301 | (29) | |||||||||
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Basic Avg. Common Shares Outstanding | 72,220 | 72,121 | 99 | |||||||||
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Dividends Per Common Share | $ | 0.435 | $ | 0.42 | $ | 0.015 | ||||||
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CONSOLIDATED BALANCE SHEETS (UNAUDITED)
As of September 30, 2013 and December 31, 2012
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| (in thousands) | September 30, 2013 | December 31, 2012 | ||||||
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ASSETS | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 12,413 | $ | 9,704 | ||||
Accounts receivable, net of allowance | 200,043 | 277,900 | ||||||
Inventories | 61,684 | 63,994 | ||||||
Regulatory asset | 11,213 | 45,515 | ||||||
Assets held for sale | 183,862 | – | ||||||
Other | 63,371 | 28,007 | ||||||
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Total current assets | 532,586 | 425,120 | ||||||
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Property, Plant and Equipment | ||||||||
Oil and gas properties, net | 4,997,661 | 4,673,886 | ||||||
Utility plant, net | 876,570 | 842,643 | ||||||
Other property, net | 29,733 | 25,107 | ||||||
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Total property, plant and equipment, net | 5,903,964 | 5,541,636 | ||||||
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Other Assets | ||||||||
Regulatory asset | 89,004 | 110,566 | ||||||
Long-term derivative instruments | 12,786 | 40,577 | ||||||
Other | 76,532 | 57,991 | ||||||
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Total other assets | 178,322 | 209,134 | ||||||
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TOTAL ASSETS | $ | 6,614,872 | $ | 6,175,890 | ||||
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LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current Liabilities | ||||||||
Long-term debt due within one year | $ | 125,000 | $ | 50,000 | ||||
Notes payable to banks | 901,000 | 643,000 | ||||||
Accounts payable | 256,109 | 257,579 | ||||||
Regulatory liability | 40,168 | 45,116 | ||||||
Other | 219,012 | 164,087 | ||||||
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Total current liabilities | 1,541,289 | 1,159,782 | ||||||
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Long-term debt | 1,028,509 | 1,103,528 | ||||||
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Deferred Credits and Other Liabilities | ||||||||
Regulatory liability | 81,414 | 80,404 | ||||||
Deferred income taxes | 979,898 | 905,601 | ||||||
Long-term derivative instruments | 1,961 | 11,305 | ||||||
Other | 212,135 | 238,580 | ||||||
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Total deferred credits and other liabilities | 1,275,408 | 1,235,890 | ||||||
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Total Shareholders’ Equity | 2,769,666 | 2,676,690 | ||||||
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TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 6,614,872 | $ | 6,175,890 | ||||
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SELECTED BUSINESS SEGMENT DATA (UNAUDITED)
For the 3 months ending September 30, 2013 and 2012
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| 3rd Quarter | ||||||||||||
| (in thousands, except sales price data) | 2013 | 2012 | Change | |||||||||
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Oil and Gas Operations (GAAP) | ||||||||||||
Operating revenues from continuing operations | ||||||||||||
Natural gas | $ | 62,073 | $ | 49,422 | $ | 12,651 | ||||||
Oil | 183,950 | 147,710 | 36,240 | |||||||||
Natural gas liquids | 26,292 | 17,566 | 8,726 | |||||||||
Other | (277) | (78) | (199) | |||||||||
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Total (GAAP) | $ | 272,038 | $ | 214,620 | $ | 57,418 | ||||||
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Oil and Gas Operations excluding mark-to-market (Non-GAAP) | ||||||||||||
Operating revenues from continuing operations | ||||||||||||
Natural gas | $ | 60,389 | $ | 53,581 | $ | 6,808 | ||||||
Oil | 247,839 | 188,279 | 59,560 | |||||||||
Natural gas liquids | 27,647 | 19,590 | 8,057 | |||||||||
Other | (277) | (78) | (199) | |||||||||
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Total (Non-GAAP)* | $ | 335,598 | $ | 261,372 | $ | 74,226 | ||||||
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Production volumes | ||||||||||||
Natural gas (MMcf) | 14,868 | 14,622 | 246 | |||||||||
Oil (MBbl) | 2,764 | 2,275 | 489 | |||||||||
Natural gas liquids (MMgal) | 36.7 | 25.2 | 11.5 | |||||||||
Total production volumes (MMcfe) | 36,696 | 31,872 | 4,824 | |||||||||
Total production volumes (MBOE) | 6,116 | 5,312 | 804 | |||||||||
Revenue per unit of production including effects of designated cash flow hedges | ||||||||||||
Natural gas (Mcf) | $ | 4.06 | $ | 3.66 | $ | 0.40 | ||||||
Oil (barrel) | $ | 89.67 | $ | 82.76 | $ | 6.91 | ||||||
Natural gas liquids (gallon) | $ | 0.75 | $ | 0.78 | $ | (0.03) | ||||||
Revenue per unit of production excluding effects of all derivative instruments | ||||||||||||
Natural gas (Mcf) | $ | 3.39 | $ | 2.69 | $ | 0.70 | ||||||
Oil (barrel) | $ | 103.22 | $ | 86.55 | $ | 16.67 | ||||||
Natural gas liquids (gallon) | $ | 0.68 | $ | 0.68 | $ | – | ||||||
Other data | ||||||||||||
Lease operating expense (LOE) | ||||||||||||
LOE and other | $ | 69,086 | $ | 57,397 | $ | 11,689 | ||||||
Production taxes | 18,939 | 13,531 | 5,408 | |||||||||
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Total | $ | 88,025 | $ | 70,928 | $ | 17,097 | ||||||
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Depreciation, depletion and amortization | $ | 125,060 | $ | 86,062 | $ | 38,998 | ||||||
General and administrative expense | $ | 29,626 | $ | 18,468 | $ | 11,158 | ||||||
Capital expenditures | $ | 257,759 | $ | 323,037 | $ | (65,278) | ||||||
Exploration expenditures | $ | 8,949 | $ | 10,644 | $ | (1,695) | ||||||
Operating income | $ | 18,607 | $ | 26,913 | $ | (8,306) | ||||||
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*Operating revenues excluding mark-to-market losses of $63,560 and $46,752 in third quarter 2013 and 2012, respectively.
Natural Gas Distribution | ||||||||||||
Operating revenues | ||||||||||||
Residential | $ | 31,201 | $ | 30,658 | $ | 543 | ||||||
Commercial and industrial | 18,194 | 17,695 | 499 | |||||||||
Transportation | 13,197 | 13,505 | (308) | |||||||||
Other | (14,224) | (49) | (14,175) | |||||||||
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Total | $ | 48,368 | $ | 61,809 | $ | (13,441) | ||||||
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Gas delivery volumes (MMcf) | ||||||||||||
Residential | 1,384 | 1,378 | 6 | |||||||||
Commercial and industrial | 1,272 | 1,246 | 26 | |||||||||
Transportation | 11,237 | 11,252 | (15) | |||||||||
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Total | 13,893 | 13,876 | 17 | |||||||||
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Other data | ||||||||||||
Depreciation and amortization | $ | 11,063 | $ | 10,572 | $ | 491 | ||||||
Capital expenditures | $ | 20,980 | $ | 18,813 | $ | 2,167 | ||||||
Operating income (loss) | $ | (22,544) | $ | (12,743) | $ | (9,801) | ||||||
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SELECTED BUSINESS SEGMENT DATA (UNAUDITED)
For the 9 months ending September 30, 2013 and 2012
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| Year-to-date | ||||||||||||
| (in thousands, except sales price data) | 2013 | 2012 | Change | |||||||||
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Oil and Gas Operations (GAAP) | ||||||||||||
Operating revenues from continuing operations | ||||||||||||
Natural gas | $ | 196,311 | $ | 156,308 | $ | 40,003 | ||||||
Oil | 607,975 | 578,167 | 29,808 | |||||||||
Natural gas liquids | 71,556 | 64,970 | 6,586 | |||||||||
Other | (492) | (106) | (386) | |||||||||
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Total (GAAP) | $ | 875,350 | $ | 799,339 | $ | 76,011 | ||||||
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Oil and Gas Operations excluding mark-to-market (Non-GAAP) | ||||||||||||
Operating revenues from continuing operations | ||||||||||||
Natural gas | $ | 179,701 | $ | 160,429 | $ | 19,272 | ||||||
Oil | 671,836 | 541,812 | 130,024 | |||||||||
Natural gas liquids | 72,764 | 63,169 | 9,595 | |||||||||
Other | (492) | (106) | (386) | |||||||||
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Total (Non-GAAP)* | $ | 923,809 | $ | 765,304 | $ | 158,505 | ||||||
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Production volumes | ||||||||||||
Natural gas (MMcf) | 43,428 | 44,076 | (648) | |||||||||
Oil (MBbl) | 7,670 | 6,414 | 1,256 | |||||||||
Natural gas liquids (MMgal) | 98.5 | 79.0 | 19.5 | |||||||||
Total production volumes (MMcfe) | 103,518 | 93,846 | 9,672 | |||||||||
Total production volumes (MBOE) | 17,253 | 15,641 | 1,612 | |||||||||
Revenue per unit of production including effects of designated cash flow hedges | ||||||||||||
Natural gas (Mcf) | $ | 4.14 | $ | 3.64 | $ | 0.50 | ||||||
Oil (barrel) | $ | 87.59 | $ | 84.47 | $ | 3.12 | ||||||
Natural gas liquids (gallon) | $ | 0.74 | $ | 0.80 | $ | (0.06) | ||||||
Revenue per unit of production excluding effects of all derivative instruments | ||||||||||||
Natural gas (Mcf) | $ | 3.51 | $ | 2.51 | $ | 1.00 | ||||||
Oil (barrel) | $ | 92.69 | $ | 89.92 | $ | 2.77 | ||||||
Natural gas liquids (gallon) | $ | 0.65 | $ | 0.78 | $ | (0.13) | ||||||
Other data | ||||||||||||
Lease operating expense (LOE) | ||||||||||||
LOE and other | $ | 210,455 | $ | 159,052 | $ | 51,403 | ||||||
Production taxes | 49,598 | 39,882 | 9,716 | |||||||||
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Total | $ | 260,053 | $ | 198,934 | $ | 61,119 | ||||||
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Depreciation, depletion and amortization | $ | 332,690 | $ | 244,914 | $ | 87,776 | ||||||
General and administrative expense | $ | 81,570 | $ | 56,521 | $ | 25,049 | ||||||
Capital expenditures | $ | 892,691 | $ | 957,913 | $ | (65,222) | ||||||
Exploration expenditures | $ | 13,902 | $ | 13,382 | $ | 52 | ||||||
Operating income | $ | 181,948 | $ | 280,897 | $ | (98,949) | ||||||
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* Operating revenues excluding mark-to-market loss of $48,459 and gain of $34,035 in 2013 and 2012, respectively.
Natural Gas Distribution | ||||||||||||
Operating revenues | ||||||||||||
Residential | $ | 259,492 | $ | 201,537 | $ | 57,955 | ||||||
Commercial and industrial | 103,419 | 84,889 | 18,530 | |||||||||
Transportation | 45,261 | 42,765 | 2,496 | |||||||||
Other | (17,605) | (2,008) | (15,597) | |||||||||
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Total | $ | 390,567 | $ | 327,183 | $ | 63,384 | ||||||
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Gas delivery volumes (MMcf) | ||||||||||||
Residential | 15,379 | 11,601 | 3,778 | |||||||||
Commercial and industrial | 7,434 | 6,137 | 1,297 | |||||||||
Transportation | 34,733 | 34,835 | (102) | |||||||||
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Total | 57,546 | 52,573 | 4,973 | |||||||||
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Other data | ||||||||||||
Depreciation and amortization | $ | 32,665 | $ | 31,551 | $ | 1,114 | ||||||
Capital expenditures | $ | 67,790 | $ | 51,786 | $ | 16,004 | ||||||
Operating income | $ | 58,968 | $ | 70,265 | $ | (11,297) | ||||||
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