Exhibit 99.2
CONSOLIDATED STATEMENTSOF INCOME (UNAUDITED)
For the 3 months ending June 30, 2007 and 2006
2nd Quarter | Change | |||||||||||
(in thousands, except per share data) | 2007 | 2006 | ||||||||||
Operating Revenues | ||||||||||||
Oil and gas operations | $ | 203,356 | $ | 169,178 | $ | 34,178 | ||||||
Natural gas distribution | 111,566 | 113,196 | (1,630 | ) | ||||||||
Total operating revenues | 314,922 | 282,374 | 32,548 | |||||||||
Operating Expenses | ||||||||||||
Cost of gas | 53,358 | 57,831 | (4,473 | ) | ||||||||
Operations & maintenance | 84,111 | 78,401 | 5,710 | |||||||||
Depreciation, depletion and amortization | 38,707 | 34,499 | 4,208 | |||||||||
Taxes, other than income taxes | 21,870 | 21,433 | 437 | |||||||||
Accretion expense | 971 | 912 | 59 | |||||||||
Total operating expenses | 199,017 | 193,076 | 5,941 | |||||||||
Operating Income | 115,905 | 89,298 | 26,607 | |||||||||
Other Income (Expense) | ||||||||||||
Interest expense | (12,016 | ) | (12,366 | ) | 350 | |||||||
Other income | 950 | 255 | 695 | |||||||||
Other expense | (187 | ) | (272 | ) | 85 | |||||||
Total other expense | (11,253 | ) | (12,383 | ) | 1,130 | |||||||
Income from Continuing Operations Before Income Taxes | 104,652 | 76,915 | 27,737 | |||||||||
Income tax expense | 36,749 | 27,313 | 9,436 | |||||||||
Income from Continuing Operations | 67,903 | 49,602 | 18,301 | |||||||||
Discontinued Operations, Net of Taxes | ||||||||||||
Income (loss) from discontinued operations | - | (1 | ) | 1 | ||||||||
Gain on disposal of discontinued operations | - | - | - | |||||||||
Income (Loss) from Discontinued Operations | - | (1 | ) | 1 | ||||||||
Net Income | $ | 67,903 | $ | 49,601 | $ | 18,302 | ||||||
Diluted Earnings Per Average Common Share | ||||||||||||
Continuing operations | $ | 0.94 | $ | 0.67 | $ | 0.27 | ||||||
Discontinued operations | - | - | - | |||||||||
Net Income | $ | 0.94 | $ | 0.67 | $ | 0.27 | ||||||
Basic Earnings Per Average Common Share | ||||||||||||
Continuing operations | $ | 0.95 | $ | 0.68 | $ | 0.27 | ||||||
Discontinued operations | - | - | - | |||||||||
Net Income | $ | 0.95 | $ | 0.68 | $ | 0.27 | ||||||
Diluted Avg. Common Shares Outstanding | 72,249 | 73,902 | (1,653 | ) | ||||||||
Basic Avg. Common Shares Outstanding | 71,592 | 73,028 | (1,436 | ) | ||||||||
Dividends Per Common Share | $ | 0.115 | $ | 0.11 | $ | 0.005 |
1
CONSOLIDATED STATEMENTSOF INCOME (UNAUDITED)
For the 6 months ending June 30, 2007 and 2006
Year-to-date | Change | |||||||||||
(in thousands, except per share data) | 2007 | 2006 | ||||||||||
Operating Revenues | ||||||||||||
Oil and gas operations | $ | 397,389 | $ | 338,697 | $ | 58,692 | ||||||
Natural gas distribution | 410,194 | 431,819 | (21,625 | ) | ||||||||
Total operating revenues | 807,583 | 770,516 | 37,067 | |||||||||
Operating Expenses | ||||||||||||
Cost of gas | 221,496 | 251,881 | (30,385 | ) | ||||||||
Operations & maintenance | 166,154 | 152,884 | 13,270 | |||||||||
Depreciation, depletion and amortization | 76,727 | 68,796 | 7,931 | |||||||||
Taxes, other than income taxes | 52,182 | 54,112 | (1,930 | ) | ||||||||
Accretion expense | 1,921 | 1,810 | 111 | |||||||||
Total operating expenses | 518,480 | 529,483 | (11,003 | ) | ||||||||
Operating Income | 289,103 | 241,033 | 48,070 | |||||||||
Other Income (Expense) | ||||||||||||
Interest expense | (24,237 | ) | (25,543 | ) | 1,306 | |||||||
Other income | 1,511 | 962 | 549 | |||||||||
Other expense | (382 | ) | (501 | ) | 119 | |||||||
Total other expense | (23,108 | ) | (25,082 | ) | 1,974 | |||||||
Income from Continuing Operations Before Income Taxes | 265,995 | 215,951 | 50,044 | |||||||||
Income tax expense | 94,211 | 78,848 | 15,363 | |||||||||
Income from Continuing Operations | 171,784 | 137,103 | 34,681 | |||||||||
Discontinued Operations, Net of Taxes | ||||||||||||
Income (loss) from discontinued operations | 1 | (8 | ) | 9 | ||||||||
Gain on disposal of discontinued operations | - | - | - | |||||||||
Income (Loss) from Discontinued Operations | 1 | (8 | ) | 9 | ||||||||
Net Income | $ | 171,785 | $ | 137,095 | $ | 34,690 | ||||||
Diluted Earnings Per Average Common Share | ||||||||||||
Continuing operations | $ | 2.38 | $ | 1.85 | $ | 0.53 | ||||||
Discontinued operations | - | - | - | |||||||||
Net Income | $ | 2.38 | $ | 1.85 | $ | 0.53 | ||||||
Basic Earnings Per Average Common Share | ||||||||||||
Continuing operations | $ | 2.40 | $ | 1.87 | $ | 0.53 | ||||||
Discontinued operations | - | - | - | |||||||||
Net Income | $ | 2.40 | $ | 1.87 | $ | 0.53 | ||||||
Diluted Avg. Common Shares Outstanding | 72,153 | 73,978 | (1,825 | ) | ||||||||
Basic Avg. Common Shares Outstanding | 71,538 | 73,148 | (1,610 | ) | ||||||||
Dividends Per Common Share | $ | 0.23 | $ | 0.22 | $ | 0.01 |
2
CONSOLIDATED STATEMENTSOF INCOME (UNAUDITED)
For the 12 months ending June 30, 2007 and 2006
Trailing 12 Months | ||||||||||||
(in thousands, except per share data) | 2007 | 2006 | Change | |||||||||
Operating Revenues | ||||||||||||
Oil and gas operations | $ | 789,234 | $ | 629,084 | $ | 160,150 | ||||||
Natural gas distribution | 641,819 | 667,194 | (25,375 | ) | ||||||||
Total operating revenues | 1,431,053 | 1,296,278 | 134,775 | |||||||||
Operating Expenses | ||||||||||||
Cost of gas | 342,712 | 380,224 | (37,512 | ) | ||||||||
Operations & maintenance | 315,427 | 294,302 | 21,125 | |||||||||
Depreciation, depletion and amortization | 150,017 | 135,961 | 14,056 | |||||||||
Taxes, other than income taxes | 93,797 | 101,751 | (7,954 | ) | ||||||||
Accretion expense | 3,730 | 3,160 | 570 | |||||||||
Total operating expenses | 905,683 | 915,398 | (9,715 | ) | ||||||||
Operating Income | 525,370 | 380,880 | 144,490 | |||||||||
Other Income (Expense) | ||||||||||||
Interest expense | (47,346 | ) | (49,149 | ) | 1,803 | |||||||
Other income | 1,422 | 2,255 | (833 | ) | ||||||||
Other expense | (849 | ) | (675 | ) | (174 | ) | ||||||
Total other expense | (46,773 | ) | (47,569 | ) | 796 | |||||||
Income from Continuing Operations Before Income Taxes | 478,597 | 333,311 | 145,286 | |||||||||
Income tax expense | 170,393 | 119,836 | 50,557 | |||||||||
Income from Continuing Operations | 308,204 | 213,475 | 94,729 | |||||||||
Discontinued Operations, Net of Taxes | ||||||||||||
Income (loss) from discontinued operations | 3 | (9 | ) | 12 | ||||||||
Gain on disposal of discontinued operations | 53 | 22 | 31 | |||||||||
Income from Discontinued Operations | 56 | 13 | 43 | |||||||||
Net Income | $ | 308,260 | $ | 213,488 | $ | 94,772 | ||||||
Diluted Earnings Per Average Common Share | ||||||||||||
Continuing operations | $ | 4.26 | $ | 2.89 | $ | 1.37 | ||||||
Discontinued operations | - | - | - | |||||||||
Net Income | $ | 4.26 | $ | 2.89 | $ | 1.37 | ||||||
Basic Earnings Per Average Common Share | ||||||||||||
Continuing operations | $ | 4.29 | $ | 2.92 | $ | 1.37 | ||||||
Discontinued operations | 0.01 | - | 0.01 | |||||||||
Net Income | $ | 4.30 | $ | 2.92 | $ | 1.38 | ||||||
Diluted Avg. Common Shares Outstanding | 72,315 | 73,939 | (1,624 | ) | ||||||||
Basic Avg. Common Shares Outstanding | 71,765 | 73,149 | (1,384 | ) | ||||||||
Dividends Per Common Share | $ | 0.45 | $ | 0.42 | $ | 0.03 |
3
SELECTED BUSINESS SEGMENT DATA (UNAUDITED)
For the 3 months ending June 30, 2007 and 2006
2nd Quarter | ||||||||||
(in thousands, except sales price data) | 2007 | 2006 | Change | |||||||
Oil and Gas Operations | ||||||||||
Operating revenues | ||||||||||
Natural gas | $ | 124,712 | $ | 106,194 | $ | 18,518 | ||||
Oil | 60,615 | 47,475 | 13,140 | |||||||
Natural gas liquids | 16,548 | 13,807 | 2,741 | |||||||
Other | 1,481 | 1,702 | (221 | ) | ||||||
Total | $ | 203,356 | $ | 169,178 | $ | 34,178 | ||||
Production volumes from continuing operations | ||||||||||
Natural gas (MMcf) | 15,690 | 15,725 | (35 | ) | ||||||
Oil (MBbl) | 947 | 914 | 33 | |||||||
Natural gas liquids (MMgal) | 19.1 | 20.1 | (1 | ) | ||||||
Production volumes from continuing ops. (MMcfe) | 24,099 | 24,076 | 23 | |||||||
Total production volumes (MMcfe) | 24,099 | 24,075 | 24 | |||||||
Revenue per unit of production including effects of all derivative instruments | ||||||||||
Natural gas (Mcf) | $ | 7.95 | $ | 6.75 | $ | 1.2 | ||||
Oil (barrel) | $ | 64.03 | $ | 51.92 | $ | 12.11 | ||||
Natural gas liquids (gallon) | $ | 0.87 | $ | 0.69 | $ | 0.18 | ||||
Other data from continuing operations | ||||||||||
Lease operating expense (LOE) | ||||||||||
LOE and other | $ | 39,121 | $ | 31,622 | $ | 7,499 | ||||
Production taxes | 13,589 | 12,759 | 830 | |||||||
Total | $ | 52,710 | $ | 44,381 | $ | 8,329 | ||||
Depreciation, depletion and amortization | $ | 27,000 | $ | 23,566 | $ | 3,434 | ||||
Capital expenditures | $ | 107,126 | $ | 50,652 | $ | 56,474 | ||||
Exploration expenditures | $ | 178 | $ | 1,417 | $ | (1,239 | ) | |||
Operating income | $ | 111,472 | $ | 87,138 | $ | 24,334 | ||||
Natural Gas Distribution | ||||||||||
Operating revenues | ||||||||||
Residential | $ | 66,828 | $ | 67,495 | $ | (667 | ) | |||
Commercial and industrial | 31,172 | 32,856 | (1,684 | ) | ||||||
Transportation | 11,367 | 10,261 | 1,106 | |||||||
Other | 2,199 | 2,584 | (385 | ) | ||||||
Total | $ | 111,566 | $ | 113,196 | $ | (1,630 | ) | |||
Gas delivery volumes (MMcf) | ||||||||||
Residential | 3,187 | 3,295 | (108 | ) | ||||||
Commercial and industrial | 1,981 | 2,084 | (103 | ) | ||||||
Transportation | 12,197 | 11,589 | 608 | |||||||
Total | 17,365 | 16,968 | 397 | |||||||
Other data | ||||||||||
Depreciation and amortization | $ | 11,707 | $ | 10,933 | $ | 774 | ||||
Capital expenditures | $ | 16,606 | $ | 21,590 | $ | (4,984 | ) | |||
Operating income | $ | 4,970 | $ | 2,711 | $ | 2,259 |
4
SELECTED BUSINESS SEGMENT DATA (UNAUDITED)
For the 6 months ending June 30, 2007 and 2006
Year-to-date | ||||||||||
(in thousands, except sales price data) | 2007 | 2006 | Change | |||||||
Oil and Gas Operations | ||||||||||
Operating revenues | ||||||||||
Natural gas | $ | 247,937 | $ | 222,278 | $ | 25,659 | ||||
Oil | 114,699 | 89,617 | 25,082 | |||||||
Natural gas liquids | 31,590 | 23,484 | 8,106 | |||||||
Other | 3,163 | 3,318 | (155 | ) | ||||||
Total | $ | 397,389 | $ | 338,697 | $ | 58,692 | ||||
Production volumes from continuing operations | ||||||||||
Natural gas (MMcf) | 31,237 | 31,052 | 185 | |||||||
Oil (MBbl) | 1,873 | 1,832 | 41 | |||||||
Natural gas liquids (MMgal) | 38.0 | 36.7 | 1.3 | |||||||
Production volumes from continuing ops. (MMcfe) | 47,905 | 47,285 | 620 | |||||||
Total production volumes (MMcfe) | 47,904 | 47,284 | 620 | |||||||
Revenue per unit of production including effects of all derivative instruments | ||||||||||
Natural gas (Mcf) | $ | 7.94 | $ | 7.16 | $ | 0.78 | ||||
Oil (barrel) | $ | 61.23 | $ | 48.93 | $ | 12.30 | ||||
Natural gas liquids (gallon) | $ | 0.83 | $ | 0.64 | $ | 0.19 | ||||
Other data from continuing operations | ||||||||||
Lease operating expense (LOE) | ||||||||||
LOE and other | $ | 74,530 | $ | 65,484 | $ | 9,046 | ||||
Production taxes | 25,600 | 25,852 | (252 | ) | ||||||
Total | $ | 100,130 | $ | 91,336 | $ | 8,794 | ||||
Depreciation, depletion and amortization | $ | 53,473 | $ | 47,117 | $ | 6,356 | ||||
Capital expenditures | $ | 160,521 | $ | 95,557 | $ | 64,964 | ||||
Exploration expenditures | $ | 275 | $ | 1,526 | $ | (1,251 | ) | |||
Operating income | $ | 216,773 | $ | 175,677 | $ | 41,096 | ||||
Natural Gas Distribution | ||||||||||
Operating revenues | ||||||||||
Residential | $ | 270,626 | $ | 286,001 | $ | (15,375 | ) | |||
Commercial and industrial | 108,894 | 117,413 | (8,519 | ) | ||||||
Transportation | 25,934 | 22,996 | 2,938 | |||||||
Other | 4,740 | 5,409 | (669 | ) | ||||||
Total | $ | 410,194 | $ | 431,819 | $ | (21,625 | ) | |||
Gas delivery volumes (MMcf) | ||||||||||
Residential | 14,766 | 14,980 | (214 | ) | ||||||
Commercial and industrial | 6,853 | 7,025 | (172 | ) | ||||||
Transportation | 25,617 | 24,948 | 669 | |||||||
Total | 47,236 | 46,953 | 283 | |||||||
Other data | ||||||||||
Depreciation and amortization | $ | 23,254 | $ | 21,679 | $ | 1,575 | ||||
Capital expenditures | $ | 31,573 | $ | 40,435 | $ | (8,862 | ) | |||
Operating income | $ | 73,407 | $ | 66,438 | $ | 6,969 |
5
SELECTED BUSINESS SEGMENT DATA (UNAUDITED)
For the 12 months ending June 30, 2007 and 2006
Trailing 12 Months | ||||||||||
(in thousands, except sales price data) | 2007 | 2006 | Change | |||||||
Oil and Gas Operations | ||||||||||
Operating revenues | ||||||||||
Natural gas | $ | 463,219 | $ | 425,913 | $ | 37,306 | ||||
Oil | 206,541 | 151,464 | 55,077 | |||||||
Natural gas liquids | 58,364 | 44,141 | 14,223 | |||||||
Other | 61,110 | 7,566 | 53,544 | |||||||
Total | $ | 789,234 | $ | 629,084 | $ | 160,150 | ||||
Production volumes from continuing operations | ||||||||||
Natural gas (MMcf) | 63,009 | 62,242 | 767 | |||||||
Oil (MBbl) | 3,686 | 3,481 | 205 | |||||||
Natural gas liquids (MMgal) | 77.6 | 72.9 | 4.7 | |||||||
Production volumes from continuing ops. (MMcfe) | 98,216 | 93,538 | 4,678 | |||||||
Total production volumes (MMcfe) | 98,215 | 93,558 | 4,657 | |||||||
Revenue per unit of production including effects of all derivative instruments | ||||||||||
Natural gas (Mcf) | $ | 7.35 | $ | 6.84 | $ | 0.51 | ||||
Oil (barrel) | $ | 56.03 | $ | 43.51 | $ | 12.52 | ||||
Natural gas liquids (gallon) | $ | 0.75 | $ | 0.61 | $ | 0.14 | ||||
Other data | ||||||||||
Lease operating expense (LOE) | ||||||||||
LOE and other | $ | 143,899 | $ | 121,610 | $ | 22,289 | ||||
Production taxes | 49,257 | 56,050 | (6,793 | ) | ||||||
Total | $ | 193,156 | $ | 177,660 | $ | 15,496 | ||||
Depreciation, depletion and amortization | $ | 104,198 | $ | 92,987 | $ | 11,211 | ||||
Capital expenditures | $ | 324,642 | $ | 360,759 | $ | (36,117 | ) | |||
Exploration expenditures | $ | 2,930 | $ | 1,708 | $ | 1,222 | ||||
Operating income | $ | 446,245 | $ | 315,208 | $ | 131,037 | ||||
Natural Gas Distribution | ||||||||||
Operating revenues | ||||||||||
Residential | $ | 410,691 | $ | 427,821 | $ | (17,130 | ) | |||
Commercial and industrial | 173,381 | 189,490 | (16,109 | ) | ||||||
Transportation | 48,888 | 43,012 | 5,876 | |||||||
Other | 8,859 | 6,871 | 1,988 | |||||||
Total | $ | 641,819 | $ | 667,194 | $ | (25,375 | ) | |||
Gas delivery volumes (MMcf) | ||||||||||
Residential | 22,096 | 22,398 | (302 | ) | ||||||
Commercial and industrial | 11,054 | 11,817 | (763 | ) | ||||||
Transportation | 51,429 | 49,115 | 2,314 | |||||||
Total | 84,579 | 83,330 | 1,249 | |||||||
Other data | ||||||||||
Depreciation and amortization | $ | 45,819 | $ | 42,974 | $ | 2,845 | ||||
Capital expenditures | $ | 67,295 | $ | 78,012 | $ | (10,717 | ) | |||
Operating income | $ | 81,243 | $ | 67,326 | $ | 13,917 |
6