Exhibit 99.2
CONSOLIDATED STATEMENTSOF INCOME (UNAUDITED)
For the 3 months ending March 31, 2008 and 2007
1st Quarter | ||||||||||||
(in thousands, except per share data) | 2008 | 2007 | Change | |||||||||
Operating Revenues | ||||||||||||
Oil and gas operations | $ | 224,895 | $ | 194,033 | $ | 30,862 | ||||||
Natural gas distribution | 296,751 | 298,628 | (1,877 | ) | ||||||||
Total operating revenues | 521,646 | 492,661 | 28,985 | |||||||||
Operating Expenses | ||||||||||||
Cost of gas | 161,389 | 168,138 | (6,749 | ) | ||||||||
Operations & maintenance | 86,552 | 82,043 | 4,509 | |||||||||
Depreciation, depletion and amortization | 42,416 | 38,020 | 4,396 | |||||||||
Taxes, other than income taxes | 34,905 | 30,312 | 4593 | |||||||||
Accretion expense | 1,045 | 950 | 95 | |||||||||
Total operating expenses | 326,307 | 319,463 | 6,844 | |||||||||
Operating Income | 195,339 | 173,198 | 22,141 | |||||||||
Other Income (Expense) | ||||||||||||
Interest expense | (11,122 | ) | (12,221 | ) | 1,099 | |||||||
Other income | 244 | 561 | (317 | ) | ||||||||
Other expense | (596 | ) | (195 | ) | (401 | ) | ||||||
Total other expense | (11,474 | ) | (11,855 | ) | 381 | |||||||
Income from Continuing Operations Before Income Taxes | 183,865 | 161,343 | 22,522 | |||||||||
Income tax expense | 67,177 | 57,462 | 9,715 | |||||||||
Income from Continuing Operations | 116,688 | 103,881 | 12,807 | |||||||||
Discontinued Operations, Net of Taxes | ||||||||||||
Income from discontinued operations | — | 1 | (1 | ) | ||||||||
Gain on disposal of discontinued operations | — | — | — | |||||||||
Income from Discontinued Operations | — | 1 | (1 | ) | ||||||||
Net Income | $ | 116,688 | $ | 103,882 | $ | 12,806 | ||||||
Diluted Earnings Per Average Common Share | ||||||||||||
Continuing operations | $ | 1.62 | $ | 1.44 | $ | 0.18 | ||||||
Discontinued operations | — | — | — | |||||||||
Net Income | $ | 1.62 | $ | 1.44 | $ | 0.18 | ||||||
Basic Earnings Per Average Common Share | ||||||||||||
Continuing operations | $ | 1.63 | $ | 1.45 | $ | 0.18 | ||||||
Discontinued operations | — | — | — | |||||||||
Net Income | $ | 1.63 | $ | 1.45 | $ | 0.18 | ||||||
Diluted Avg. Common Shares Outstanding | 72,125 | 72,124 | 1 | |||||||||
Basic Avg. Common Shares Outstanding | 71,637 | 71,482 | 155 | |||||||||
Dividends Per Common Share | $ | 0.12 | $ | 0.115 | $ | 0.005 | ||||||
14
CONSOLIDATED STATEMENTSOF INCOME (UNAUDITED)2
For the 12 months ending March 31, 2008 and 2007
Trailing 12 Months | ||||||||||||
(in thousands, except per share data) | 2008 | 2007 | Change | |||||||||
Operating Revenues | ||||||||||||
Oil and gas operations | $ | 856,454 | $ | 755,056 | $ | 101,398 | ||||||
Natural gas distribution | 607,591 | 643,449 | (35,858 | ) | ||||||||
Total operating revenues | 1,464,045 | 1,398,505 | 65,540 | |||||||||
Operating Expenses | ||||||||||||
Cost of gas | 311,680 | 347,185 | (35,505 | ) | ||||||||
Operations & maintenance | 337,952 | 309,717 | 28,235 | |||||||||
Depreciation, depletion and amortization | 165,773 | 145,809 | 19,964 | |||||||||
Taxes, other than income taxes | 100,424 | 93,360 | 7,064 | |||||||||
Accretion expense | 4,043 | 3,671 | 372 | |||||||||
Total operating expenses | 919,872 | 899,742 | 20,130 | |||||||||
Operating Income | 544,173 | 498,763 | 45,410 | |||||||||
Other Income (Expense) | ||||||||||||
Interest expense | (46,001 | ) | (47,696 | ) | 1,695 | |||||||
Other income | 2,351 | 865 | 1,486 | |||||||||
Other expense | (1,360 | ) | (1,072 | ) | (288 | ) | ||||||
Total other expense | (45,010 | ) | (47,903 | ) | 2,893 | |||||||
Income from Continuing Operations Before Income Taxes | 499,163 | 450,860 | 48,303 | |||||||||
Income tax expense | 177,144 | 160,957 | 16,187 | |||||||||
Income from Continuing Operations | 322,019 | 289,903 | 32,116 | |||||||||
Discontinued Operations, Net of Taxes | ||||||||||||
Income from discontinued operations | 2 | 2 | — | |||||||||
Gain on disposal of discontinued operations | 18 | 53 | (35 | ) | ||||||||
Income from Discontinued Operations | 20 | 55 | (35 | ) | ||||||||
Net Income | $ | 322,039 | $ | 289,958 | $ | 32,081 | ||||||
Diluted Earnings Per Average Common Share | ||||||||||||
Continuing operations | $ | 4.47 | $ | 3.99 | $ | 0.48 | ||||||
Discontinued operations | — | — | — | |||||||||
Net Income | $ | 4.47 | $ | 3.99 | $ | 0.48 | ||||||
Basic Earnings Per Average Common Share | ||||||||||||
Continuing operations | $ | 4.49 | $ | 4.02 | $ | 0.47 | ||||||
Discontinued operations | — | — | — | |||||||||
Net Income | $ | 4.49 | $ | 4.02 | $ | 0.47 | ||||||
Diluted Avg. Common Shares Outstanding | 72,088 | 72,674 | (586 | ) | ||||||||
Basic Avg. Common Shares Outstanding | 71,650 | 72,138 | (488 | ) | ||||||||
Dividends Per Common Share | $ | 0.465 | $ | 0.445 | $ | 0.02 | ||||||
15
SELECTED BUSINESS SEGMENT DATA (UNAUDITED)
For the 3 months ending March 31, 2008 and 2007
1st Quarter | ||||||||||
(in thousands, except sales price data) | 2008 | 2007 | Change | |||||||
Oil and Gas Operations | ||||||||||
Operating revenues | ||||||||||
Natural gas | $ | 130,954 | $ | 123,225 | $ | 7,729 | ||||
Oil | 64,099 | 54,084 | 10,015 | |||||||
Natural gas liquids | 17,446 | 15,042 | 2,404 | |||||||
Other | 12,396 | 1,682 | 10,714 | |||||||
Total | $ | 224,895 | $ | 194,033 | $ | 30,862 | ||||
Production volumes from continuing operations | ||||||||||
Natural gas (MMcf) | 16,427 | 15,547 | 880 | |||||||
Oil (MBbl) | 944 | 927 | 17 | |||||||
Natural gas liquids (MMgal) | 16.7 | 18.9 | (2.2 | ) | ||||||
Production volumes from continuing ops. (MMcfe) | 24,483 | 23,806 | 677 | |||||||
Total production volumes (MMcfe) | 24,483 | 23,805 | 678 | |||||||
Revenue per unit of production including effects of all derivative instruments | ||||||||||
Natural gas (Mcf) | $ | 7.97 | $ | 7.93 | $ | 0.04 | ||||
Oil (barrel) | $ | 67.90 | $ | 58.36 | $ | 9.54 | ||||
Natural gas liquids (gallon) | $ | 1.04 | $ | 0.80 | $ | 0.24 | ||||
Other data from continuing operations | ||||||||||
Lease operating expense (LOE) | ||||||||||
LOE and other | $ | 43,135 | $ | 35,409 | $ | 7,726 | ||||
Production taxes | 16,576 | 12,011 | 4,565 | |||||||
Total | $ | 59,711 | $ | 47,420 | $ | 12,291 | ||||
Depreciation, depletion and amortization | $ | 30,396 | $ | 26,473 | $ | 3,923 | ||||
General and administrative expense | $ | 11,899 | $ | 13,792 | $ | (1,893 | ) | |||
Capital expenditures | $ | 74,397 | $ | 53,395 | $ | 21,002 | ||||
Exploration expenditures | $ | 349 | $ | 97 | $ | 252 | ||||
Operating income | $ | 121,495 | $ | 105,301 | $ | 16,194 | ||||
Natural Gas Distribution | ||||||||||
Operating revenues | ||||||||||
Residential | $ | 199,575 | $ | 203,798 | $ | (4,223 | ) | |||
Commercial and industrial | 77,505 | 77,722 | (217 | ) | ||||||
Transportation | 15,503 | 14,567 | 936 | |||||||
Other | 4,168 | 2,541 | 1,627 | |||||||
Total | $ | 296,751 | $ | 298,628 | $ | (1,877 | ) | |||
Gas delivery volumes (MMcf) | ||||||||||
Residential | 11,531 | 11,579 | (48 | ) | ||||||
Commercial and industrial | 4,976 | 4,872 | 104 | |||||||
Transportation | 14,297 | 13,420 | 877 | |||||||
Total | 30,804 | 29,871 | 933 | |||||||
Other data | ||||||||||
Depreciation and amortization | $ | 12,020 | $ | 11,547 | $ | 473 | ||||
Capital expenditures | $ | 13,070 | $ | 14,967 | $ | (1,897 | ) | |||
Operating income | $ | 74,488 | $ | 68,437 | $ | 6,051 | ||||
16
SELECTED BUSINESS SEGMENT DATA (UNAUDITED)
For the 12 months ending March 31, 2008 and 2007
Trailing 12 Months | ||||||||||
(in thousands, except sales price data) | 2008 | 2007 | Change | |||||||
Oil and Gas Operations | ||||||||||
Operating revenues | ||||||||||
Natural gas | $ | 507,135 | $ | 444,701 | $ | 62,434 | ||||
Oil | 261,512 | 193,401 | 68,111 | |||||||
Natural gas liquids | 71,027 | 55,623 | 15,404 | |||||||
Other | 16,780 | 61,331 | (44,551 | ) | ||||||
Total | $ | 856,454 | $ | 755,056 | $ | 101,398 | ||||
Production volumes from continuing operations | ||||||||||
Natural gas (MMcf) | 65,180 | 63,044 | 2,136 | |||||||
Oil (MBbl) | 3,897 | 3,654 | 243 | |||||||
Natural gas liquids (MMgal) | 75.1 | 78.6 | (3.5 | ) | ||||||
Production volumes from continuing ops. (MMcfe) | 99,283 | 96,193 | 3,090 | |||||||
Total production volumes (MMcfe) | 99,283 | 96,191 | 3,092 | |||||||
Revenue per unit of production including effects of all derivative instruments | ||||||||||
Natural gas (Mcf) | $ | 7.78 | $ | 7.05 | $ | 0.73 | ||||
Oil (barrel) | $ | 67.11 | $ | 52.93 | $ | 14.18 | ||||
Natural gas liquids (gallon) | $ | 0.95 | $ | 0.71 | $ | 0.24 | ||||
Other data | ||||||||||
Lease operating expense (LOE) | ||||||||||
LOE and other | $ | 156,006 | $ | 136,400 | $ | 19,606 | ||||
Production taxes | 58,363 | 48,427 | 9,936 | |||||||
Total | $ | 214,369 | $ | 184,827 | $ | 29,542 | ||||
Depreciation, depletion and amortization | $ | 118,164 | $ | 100,764 | $ | 17,400 | ||||
General and administrative expense | $ | 48,971 | $ | 39,714 | $ | 9,257 | ||||
Capital expenditures | $ | 400,481 | $ | 268,168 | $ | 132,313 | ||||
Exploration expenditures | $ | 3,146 | $ | 4,169 | $ | (1,023 | ) | |||
Operating income | $ | 467,761 | $ | 421,911 | $ | 45,850 | ||||
Natural Gas Distribution | ||||||||||
Operating revenues | ||||||||||
Residential | $ | 384,068 | $ | 411,358 | $ | (27,290 | ) | |||
Commercial and industrial | 164,686 | 175,065 | (10,379 | ) | ||||||
Transportation | 50,191 | 47,782 | 2,409 | |||||||
Other | 8,646 | 9,244 | (598 | ) | ||||||
Total | $ | 607,591 | $ | 643,449 | $ | (35,858 | ) | |||
Gas delivery volumes (MMcf) | ||||||||||
Residential | 20,617 | 22,204 | (1,587 | ) | ||||||
Commercial and industrial | 10,697 | 11,157 | (460 | ) | ||||||
Transportation | 52,324 | 50,821 | 1,503 | |||||||
Total | 83,638 | 84,182 | (544 | ) | ||||||
Other data | ||||||||||
Depreciation and amortization | $ | 47,609 | $ | 45,045 | $ | 2,564 | ||||
Capital expenditures | $ | 56,965 | $ | 72,279 | $ | (15,314 | ) | |||
Operating income | $ | 78,793 | $ | 78,984 | $ | (191 | ) | |||
17