Spire Alabama 8-K Financial statements and exhibits

Consolidated Statements of Income (Unaudited)
For the 3 months ending June 30, 2003 and 2002

	2ndQuarter
(in thousands, except per share data)		2003		2002		Change
Operating Revenues
Oil and gas operations	$	89,756	$	62,097	$	27,659
Natural gas distribution		94,248		75,709		18,539
Total operating revenues		184,004		137,806		46,198
Operating Expenses
Cost of gas		42,107		29,993		12,114
Operations & maintenance		47,705		44,842		2,863
DD&A		29,521		25,987		3,534
Taxes, other than income taxes		14,166		11,176		2,990
Total operating expenses		133,499		111,998		21,501
Operating Income		50,505		25,808		24,697
Other Income (Expense)
Interest expense		(10,734)		(11,172)		438
Accretion expense		(466)		(472)		6
Other income		1,999		3,129		(1,130)
Other expense		(2,263)		(3,086)		823
Total other expense		(11,464)		(11,601)		137
Income Before Income Taxes		39,041		14,207		24,834
Income tax expense		14,584		1,407		13,177
Income from Continuing Operations		24,457		12,800		11,657
Discontinued Operations, Net of Taxes
Income (loss) from operations		151		(362)		513
Gain (loss) on disposal		(1,261)		306		(1,567)
Income (Loss) from Discontinued Operations		(1,110)		(56)		(1,054)
Net Income	$	23,347	$	12,744	$	10,603
Diluted Earnings Per Share
Continuing operations	$	0.69	$	0.37	$	0.32
Discontinued operations		(0.03)		-		(0.03)
Cumulative effect of change in accounting principle		-		-		-
Net Income	$	0.66	$	0.37	$	0.29
Basic Earnings Per Share
Continuing operations	$	0.70	$	0.38	$	0.32
Discontinued operations		(0.03)		(0.01)		(0.02)
Cumulative effect of change in accounting principle		-		-		-
Net Income	$	0.67	$	0.37	$	0.30
Diluted Avg. Common Shares Outstanding		35,349		34,406		943
Basic Avg. Common Shares Outstanding		35,000		34,093		907
Dividends Per Share	$	0.18	$	0.175	$	0.005

Consolidated Statements of Income (Unaudited)
For the 6 months ending June 30, 2003 and 2002

	Year to Date
(in thousands, except per share data)			2003		2002			Change
Operating Revenues
Oil and gas operations	$		178,274	$	106,954		$	71,320
Natural gas distribution			315,387		272,233			43,154
Total operating revenues			493,661		379,187			114,474
Operating Expenses
Cost of gas			154,079		126,141			27,938
Operations & maintenance			98,502		89,772			8,730
DD&A			58,246		49,028			9,218
Taxes, other than income taxes			35,688		27,080			8,608
Total operating expenses			346,515		292,021			54,494
Operating Income			147,146		87,166			59,980
Other Income (Expense)
Interest expense			(21,556)		(21,841)			285
Accretion expense			(960)		(851)			(109)
Other income			5,119		6,707			(1,588)
Other expense			(5,352)		(6,603)			1,251
Total other expense			(22,749)		(22,588)			(161)
Income Before Income Taxes			124,397		64,578			59,819
Income tax expense			46,602		12,671			33,931
Income from Continuing Operations			77,795		51,907			25,888
Discontinued Operations, Net of Taxes
Income (loss) from operations			809		(567)			1,376
Gain (loss) on disposal			(676)		306			(982)
Income (Loss) from Discontinued Operations			133		(261)			394
Cumulative effect on prior years of a change in accounting principle, net of taxes		-				(2,220)			2,220
Net Income	$		77,928	$	49,426		$	28,502
Diluted Earnings Per Share
Continuing operations	$		2.21	$	1.58		$	0.63
Discontinued operations			-		(0.01)			0.01
Cumulative effect of change in accounting principle			-		(0.07)			0.07
Net Income	$		2.21	$	1.50		$	0.71
Basic Earnings Per Share
Continuing operations	$		2.23	$	1.59		$	0.64
Discontinued operations			-		(0.01)			0.01
Cumulative effect of change in accounting principle			-		(0.07)			0.07
Net Income	$		2.23	$	1.51		$	0.72
Diluted Avg. Common Shares Outstanding			35,193		32,927			2,266
Basic Avg. Common Shares Outstanding			34,868		32,645			2,223
Dividends Per Share	$		0.36	$	0.35		$	0.01

Consolidated Statements of Income (Unaudited)
For the 12 months ending June 30, 2003 and 2002

	Trailing 12 Months
(in thousands, except per share data)			2003		2002			Change
Operating Revenues
Oil and gas operations	$		315,323	$	201,623		$	113,700
Natural gas distribution			467,585		429,582			38,003
Total operating revenues			782,908		631,205			151,703
Operating Expenses
Cost of gas			217,748		200,334			17,414
Operations & maintenance			200,922		187,655			13,267
DD&A			110,650		96,019			14,631
Taxes, other than income taxes			57,514		46,428			11,086
Total operating expenses			586,834		530,436			56,398
Operating Income			196,074		100,769			95,305
Other Income (Expense)
Interest expense			(43,427)		(43,191)			(236)
Accretion expense			(1,929)		(851)			(1,078)
Other income			14,057		14,865			7,807
Other expense			(13,853)		(14,280)			(8,188)
Total other expense			(45,152)		(43,457)			(1,695)
Income Before Income Taxes			150,922		57,312			93,610
Income tax expense			54,442		5,935			48,507
Income from Continuing Operations			96,480		51,377			45,103
Discontinued Operations, Net of Taxes
Income from operations			1,102		433			669
Gain (loss) on disposal			(439)		306			(745)
Income from Discontinued Operations			663		739			(76)
Cumulative effect on prior years of a change in accounting principle, net of taxes		-				(2,220)			2,220
Net Income	$		97,143	$	49,896		$	47,247
Diluted Earnings Per Share
Continuing operations	$		2.76	$	1.60		$	1.16
Discontinued operations			0.02		0.02			-
Cumulative effect of change in accounting principle			-		(0.06)			0.06
Net Income	$		2.78	$	1.56		$	1.22
Basic Earnings Per Share
Continuing operations	$		2.78	$	1.61		$	1.17
Discontinued operations			0.02		0.02			-
Cumulative effect of change in accounting principle			-		(0.06)			0.06
Net Income	$		2.80	$	1.57		$	1.23
Diluted Avg. Common Shares Outstanding			34,948		32,084			2,864
Basic Avg. Common Shares Outstanding			34,672		31,817			2,855
Dividends Per Share	$		0.72	$	0.70		$	0.02

Selected Business Segment Data (Unaudited)

For the 3 months ending June 30, 2003 and 2002

	2nd Quarter
(in thousands, except sales price data)		2003		2002		Change
Oil and Gas Operations
Operating revenues
Natural gas	$	60,420	$	35,509	$	24,911
Oil		21,796		20,227		1,569
Natural gas liquids		5,974		5,158		816
Other		1,566		1,203		363
Total	$	89,756	$	62,097	$	27,659
Production volumes from continuing operations
Natural gas (MMcf)		14,248		11,202		3,046
Oil (MBbl)		850		867		(17)
Natural gas liquids (MBbl)		410		410		-
Production volumes from continuing ops. (Mmcfe)		21,805		18,863		2,942
Total sales volume (Mmcfe)		21,959		19,766		2,193
Average sales price from continuing ops.
Natural gas (Mcf)	$	4.24	$	3.17	$	1.07
Oil (barrel)	$	25.65	$	23.33	$	2.32
Natural gas liquids (barrel)	$	14.58	$	12.59	$	1.99
Other data
Lease operating expense (LOE)
LOE and other	$	14,523	$	13,324	$	1,199
Production taxes		6,711		4,626		2,085
Total	$	21,234	$	17,950	$	3,284
DD&A	$	20,299	$	17,674	$	2,625
Capital expenditures	$	27,191	$	194,541	$	(167,350)
Exploration expense	$	38	$	272	$	(234)
Operating income	$	43,974	$	21,558	$	22,416
Natural Gas Distribution
Operating revenues
Residential	$	59,446	$	46,076	$	13,370
Commercial and industrial - small		24,773		18,939		5,834
Transportation		8,667		9,461		(794)
Other		1,362		1,233		129
Total	$	94,248	$	75,709	$	18,539
Gas delivery volumes (MMcf)
Residential		3,857		3,804		53
Commercial		2,129		2,068		61
Transportation		13,785		14,550		(765)
Total		19,771		20,422		(651)
Other data
Depreciation and amortization	$	9,222	$	8,313	$	909
Capital expenditures	$	14,996	$	15,810	$	(814)
Operating income	$	6,988	$	4,721	$	2,267
Selected Business Segment Data (Unaudited) For the 6 months ending June 30, 2003 and 2002

	Year to Date
(in thousands, except sales price data)		2003		2002		Change
Oil and Gas Operations
Operating revenues
Natural gas	$	118,517	$	65,420	$	53,097
Oil		43,897		30,980		12,917
Natural gas liquids		12,650		9,044		3,606
Other		3,210		1,510		1,700
Total	$	178,274	$	106,954	$	71,320
Production volumes from continuing operations
Natural gas (MMcf)		27,515		22,371		5,144
Oil (MBbl)		1,701		1,339		362
Natural gas liquids (MBbl)		784		791		(7)
Production volumes from continuing ops. (Mmcfe)		42,425		35,150		7,275
Total sales volume (Mmcfe)		43,154		37,184		5,970
Average sales price from continuing ops.
Natural gas (Mcf)	$	4.31	$	2.92	$	1.39
Oil (barrel)	$	25.81	$	23.13	$	2.68
Natural gas liquids (barrel)	$	16.13	$	11.44	$	4.69
Other data
Lease operating expense (LOE)
LOE and other	$	31,315	$	24,910	$	6,405
Production taxes		13,960		8,056		5,904
Total	$	45,275	$	32,966	$	12,309
DD&A	$	40,099	$	32,485	$	7,614
Capital expenditures	$	81,022	$	216,199	$	(135,177)
Exploration expense	$	178	$	1,940	$	(1,762)
Operating income	$	83,670	$	30,562	$	53,108
Natural Gas Distribution
Operating revenues
Residential	$	213,385	$	183,487	$	29,898
Commercial and industrial - small		79,712		66,336		13,376
Transportation		19,798		20,103		(305)
Other		2,492		2,307		185
Total	$	315,387	$	272,233	$	43,154
Gas delivery volumes (MMcf)
Residential		19,917		18,098		1,819
Commercial		8,373		7,562		811
Transportation		28,178		29,601		(1,423)
Total		56,468		55,261		1,207
Other data
Depreciation and amortization	$	18,147	$	16,543	$	1,604
Capital expenditures	$	28,987	$	29,596	$	(609)
Operating income	$	64,188	$	57,532	$	6,656
Selected Business Segment Data (Unaudited) For the 12 months ending June 30, 2003 and 2002

	Trailing 12 Months
(in thousands, except sales price data)		2003		2002		Change
Oil and Gas Operations
Operating revenues
Natural gas	$	199,032	$	128,226	$	70,806
Oil		85,561		54,430		31,131
Natural gas liquids		25,463		18,277		7,186
Other		5,267		690		4,577
Total	$	315,323	$	201,623	$	113,700
Production volume from continuing operations
Natural gas (MMcf)		51,204		44,858		6,346
Oil (MBbl)		3,373		2,289		1,084
Natural gas liquids (MBbl)		1,705		1,609		96
Production volumes from continuing ops. (Mmcfe)		81,675		68,247		13,428
Total production volume (Mmcfe)		83,943		72,754		11,189
Average sales price from continuing ops.
Natural gas (Mcf)	$	3.89	$	2.86	$	1.03
Oil (barrel)	$	25.36	$	23.78	$	1.58
Natural gas liquids (barrel)	$	14.93	$	11.36	$	3.57
Other data
Lease operating expense (LOE)
LOE and other	$	63,391	$	49,509	$	13,882
Production taxes		24,159		15,700		8,459
Total	$	87,550	$	65,209	$	22,341
DD&A	$	75,364	$	63,418	$	11,946
Capital expenditures	$	170,299	$	286,570	$	(116,271)
Exploration expense	$	1,833	$	4,184	$	(2,351)
Operating income	$	131,532	$	43,540	$	87,992
Natural Gas Distribution
Operating revenues
Residential	$	306,986	$	280,454	$	26,532
Commercial and industrial - small		117,622		106,478		11,144
Transportation		38,091		37,651		440
Other		4,886		4,999		(113)
Total	$	467,585	$	429,582	$	38,003
Gas delivery volumes (MMcf)
Residential		28,177		25,210		2,967
Commercial		12,648		11,280		1,368
Transportation		58,222		56,814		1,408
Total		99,047		93,304		5,743
Other data
Depreciation and amortization	$	35,286	$	32,601	$	2,685
Capital expenditures	$	64,628	$	60,956	$	3,672
Operating income	$	66,026	$	59,032	$	6,994