Exhibit 99.2
CONSOLIDATED STATEMENTSOF INCOME (UNAUDITED)
For the 3 months ending September 30, 2008 and 2007
| 3rd Quarter | ||||||||||||
(in thousands, except per share data) | 2008 | 2007 | Change | |||||||||
Operating Revenues | ||||||||||||
Oil and gas operations | $ | 247,753 | $ | 208,423 | $ | 39,330 | ||||||
Natural gas distribution | 82,452 | 67,599 | 14,853 | |||||||||
Total operating revenues | 330,205 | 276,022 | 54,183 | |||||||||
Operating Expenses | ||||||||||||
Cost of gas | 35,901 | 31,088 | 4,813 | |||||||||
Operations and maintenance | 88,168 | 84,857 | 3,311 | |||||||||
Depreciation, depletion and amortization | 47,111 | 41,457 | 5,654 | |||||||||
Taxes, other than income taxes | 27,266 | 18,988 | 8,278 | |||||||||
Accretion expense | 1,081 | 1,000 | 81 | |||||||||
Total operating expenses | 199,527 | 177,390 | 22,137 | |||||||||
Operating Income | 130,678 | 98,632 | 32,046 | |||||||||
Other Income (Expense) | ||||||||||||
Interest expense | (10,319 | ) | (11,418 | ) | 1,099 | |||||||
Other income | 725 | 885 | (160 | ) | ||||||||
Other expense | (2,009 | ) | (244 | ) | (1,765 | ) | ||||||
Total other expense | (11,603 | ) | (10,777 | ) | (826 | ) | ||||||
Income from Continuing Operations Before Income Taxes | 119,075 | 87,855 | 31,220 | |||||||||
Income tax expense | 46,011 | 29,841 | 16,170 | |||||||||
Income from Continuing Operations | 73,064 | 58,014 | 15,050 | |||||||||
Discontinued Operations, Net of Taxes | ||||||||||||
Income from discontinued operations | — | 2 | (2 | ) | ||||||||
Gain on disposal of discontinued operations | — | 18 | (18 | ) | ||||||||
Income from Discontinued Operations | — | 20 | (20 | ) | ||||||||
Net Income | $ | 73,064 | $ | 58,034 | $ | 15,030 | ||||||
Diluted Earnings Per Average Common Share | ||||||||||||
Continuing operations | $ | 1.01 | $ | 0.80 | $ | 0.21 | ||||||
Discontinued operations | — | — | — | |||||||||
Net Income | $ | 1.01 | $ | 0.80 | $ | 0.21 | ||||||
Basic Earnings Per Average Common Share | ||||||||||||
Continuing operations | $ | 1.02 | $ | 0.81 | $ | 0.21 | ||||||
Discontinued operations | — | — | — | |||||||||
Net Income | $ | 1.02 | $ | 0.81 | $ | 0.21 | ||||||
Diluted Avg. Common Shares Outstanding | 72,116 | 72,275 | (159 | ) | ||||||||
Basic Avg. Common Shares Outstanding | 71,590 | 71,623 | (33 | ) | ||||||||
Dividends Per Common Share | $ | 0.12 | $ | 0.115 | $ | 0.005 | ||||||
CONSOLIDATED STATEMENTSOF INCOME (UNAUDITED)
For the 9 months ending September 30, 2008 and 2007
| Year-to-date | ||||||||||||
(in thousands, except per share data) | 2008 | 2007 | Change | |||||||||
Operating Revenues | ||||||||||||
Oil and gas operations | $ | 704,428 | $ | 605,812 | $ | 98,616 | ||||||
Natural gas distribution | 488,689 | 477,793 | 10,896 | |||||||||
Total operating revenues | 1,193,117 | 1,083,605 | 109,512 | |||||||||
Operating Expenses | ||||||||||||
Cost of gas | 253,159 | 252,584 | 575 | |||||||||
Operations and maintenance | 268,147 | 251,011 | 17,136 | |||||||||
Depreciation, depletion and amortization | 133,641 | 118,184 | 15,457 | |||||||||
Taxes, other than income taxes | 92,039 | 71,170 | 20,869 | |||||||||
Accretion expense | 3,181 | 2,921 | 260 | |||||||||
Total operating expenses | 750,167 | 695,870 | 54,297 | |||||||||
Operating Income | 442,950 | 387,735 | 55,215 | |||||||||
Other Income (Expense) | ||||||||||||
Interest expense | (31,699 | ) | (35,655 | ) | 3,956 | |||||||
Other income | 1,455 | 2,396 | (941 | ) | ||||||||
Other expense | (3,057 | ) | (626 | ) | (2,431 | ) | ||||||
Total other expense | (33,301 | ) | (33,885 | ) | 584 | |||||||
Income from Continuing Operations Before Income Taxes | 409,649 | 353,850 | 55,799 | |||||||||
Income tax expense | 153,019 | 124,052 | 28,967 | |||||||||
Income from Continuing Operations | 256,630 | 229,798 | 26,832 | |||||||||
Discontinued Operations, Net of Taxes | ||||||||||||
Income from discontinued operations | — | 3 | (3 | ) | ||||||||
Gain on disposal of discontinued operations | — | 18 | (18 | ) | ||||||||
Income from Discontinued Operations | — | 21 | (21 | ) | ||||||||
Net Income | $ | 256,630 | $ | 229,819 | $ | 26,811 | ||||||
Diluted Earnings Per Average Common Share | ||||||||||||
Continuing operations | $ | 3.56 | $ | 3.18 | $ | 0.38 | ||||||
Discontinued operations | — | — | — | |||||||||
Net Income | $ | 3.56 | $ | 3.18 | $ | 0.38 | ||||||
Basic Earnings Per Average Common Share | ||||||||||||
Continuing operations | $ | 3.58 | $ | 3.21 | $ | 0.37 | ||||||
Discontinued operations | — | — | — | |||||||||
Net Income | $ | 3.58 | $ | 3.21 | $ | 0.37 | ||||||
Diluted Avg. Common Shares Outstanding | 72,129 | 72,173 | (44 | ) | ||||||||
Basic Avg. Common Shares Outstanding | 71,604 | 71,566 | 38 | |||||||||
Dividends Per Common Share | $ | 0.36 | $ | 0.345 | $ | 0.015 | ||||||
CONSOLIDATED STATEMENTSOF INCOME (UNAUDITED)
For the 12 months ending September 30, 2008 and 2007
| Trailing 12 Months | ||||||||||||
(in thousands, except per share data) | 2008 | 2007 | Change | |||||||||
Operating Revenues | ||||||||||||
Oil and gas operations | $ | 924,208 | $ | 826,141 | $ | 98,067 | ||||||
Natural gas distribution | 620,364 | 638,223 | (17,859 | ) | ||||||||
Total operating revenues | 1,544,572 | 1,464,364 | 80,208 | |||||||||
Operating Expenses | ||||||||||||
Cost of gas | 319,004 | 341,489 | (22,485 | ) | ||||||||
Operations and maintenance | 350,579 | 321,448 | 29,131 | |||||||||
Depreciation, depletion and amortization | 176,834 | 155,798 | 21,036 | |||||||||
Taxes, other than income taxes | 116,700 | 93,447 | 23,253 | |||||||||
Accretion expense | 4,208 | 3,849 | 359 | |||||||||
Total operating expenses | 967,325 | 916,031 | 51,294 | |||||||||
Operating Income | 577,247 | 548,333 | 28,914 | |||||||||
Other Income (Expense) | ||||||||||||
Interest expense | (43,144 | ) | (46,497 | ) | 3,353 | |||||||
Other income | 1,727 | 1,859 | (132 | ) | ||||||||
Other expense | (3,390 | ) | (886 | ) | (2,504 | ) | ||||||
Total other expense | (44,807 | ) | (45,524 | ) | 717 | |||||||
Income from Continuing Operations Before Income Taxes | 532,440 | 502,809 | 29,631 | |||||||||
Income tax expense | 196,396 | 177,888 | 18,508 | |||||||||
Income from Continuing Operations | 336,044 | 324,921 | 11,123 | |||||||||
Discontinued Operations, Net of Taxes | ||||||||||||
Income from discontinued operations | — | 3 | (3 | ) | ||||||||
Gain on disposal of discontinued operations | — | 18 | (18 | ) | ||||||||
Income from Discontinued Operations | — | 21 | (21 | ) | ||||||||
Net Income | $ | 336,044 | $ | 324,942 | $ | 11,102 | ||||||
Diluted Earnings Per Average Common Share | ||||||||||||
Continuing operations | $ | 4.66 | $ | 4.50 | $ | 0.16 | ||||||
Discontinued operations | — | — | — | |||||||||
Net Income | $ | 4.66 | $ | 4.50 | $ | 0.16 | ||||||
Basic Earnings Per Average Common Share | ||||||||||||
Continuing operations | $ | 4.69 | $ | 4.54 | $ | 0.15 | ||||||
Discontinued operations | — | — | ||||||||||
Net Income | $ | 4.69 | $ | 4.54 | $ | 0.15 | ||||||
Diluted Avg. Common Shares Outstanding | 72,141 | 72,170 | (29 | ) | ||||||||
Basic Avg. Common Shares Outstanding | 71,626 | 71,598 | 28 | |||||||||
Dividends Per Common Share | $ | 0.475 | $ | 0.455 | $ | 0.02 | ||||||
SELECTED BUSINESS SEGMENT DATA (UNAUDITED)
For the 3 months ending September 30, 2008 and 2007
| 3rd Quarter | ||||||||||||
(in thousands, except sales price data) | 2008 | 2007 | Change | |||||||||
Oil and Gas Operations | ||||||||||||
Operating revenues | ||||||||||||
Natural gas | $ | 145,283 | $ | 123,499 | $ | 21,784 | ||||||
Oil | 82,375 | 66,689 | 15,686 | |||||||||
Natural gas liquids | 18,404 | 17,486 | 918 | |||||||||
Other | 1,691 | 749 | 942 | |||||||||
Total | $ | 247,753 | $ | 208,423 | $ | 39,330 | ||||||
Production volumes from continuing operations | ||||||||||||
Natural gas (MMcf) | 17,258 | 16,495 | 763 | |||||||||
Oil (MBbl) | 1,055 | 1,025 | 30 | |||||||||
Natural gas liquids (MMgal) | 17.8 | 19.6 | (1.8 | ) | ||||||||
Production volumes from continuing ops. (MMcfe) | 26,134 | 25,445 | 689 | |||||||||
Total production volumes (MMcfe) | 26,134 | 25,445 | 689 | |||||||||
Revenue per unit of production including effects of all derivative instruments | ||||||||||||
Natural gas (Mcf) | $ | 8.42 | $ | 7.49 | $ | 0.93 | ||||||
Oil (barrel) | $ | 78.08 | $ | 65.06 | $ | 13.02 | ||||||
Natural gas liquids (gallon) | $ | 1.03 | $ | 0.89 | $ | 0.14 | ||||||
Other data from continuing operations | ||||||||||||
Lease operating expense (LOE) | ||||||||||||
LOE and other | $ | 43,890 | $ | 38,706 | $ | 5,184 | ||||||
Production taxes | 20,610 | 12,968 | 7,642 | |||||||||
Total | $ | 64,500 | $ | 51,674 | $ | 12,826 | ||||||
Depreciation, depletion and amortization | $ | 34,849 | $ | 29,610 | $ | 5,239 | ||||||
General and administrative expense | $ | 10,228 | $ | 12,844 | $ | (2,616 | ) | |||||
Capital expenditures | $ | 122,597 | $ | 94,274 | $ | 28,323 | ||||||
Exploration expenditures | $ | 906 | $ | 1,396 | $ | (490 | ) | |||||
Operating income | $ | 137,270 | $ | 112,899 | $ | 24,371 | ||||||
Natural Gas Distribution | ||||||||||||
Operating revenues | ||||||||||||
Residential | $ | 38,347 | $ | 35,685 | $ | 2,662 | ||||||
Commercial and industrial | 24,121 | 21,384 | 2,737 | |||||||||
Transportation | 10,816 | 10,575 | 241 | |||||||||
Other | 9,168 | (45 | ) | 9,213 | ||||||||
Total | $ | 82,452 | $ | 67,599 | $ | 14,853 | ||||||
Gas delivery volumes (MMcf) | ||||||||||||
Residential | 1,505 | 1,537 | (32 | ) | ||||||||
Commercial and industrial | 1,390 | 1,520 | (130 | ) | ||||||||
Transportation | 10,706 | 12,779 | (2,073 | ) | ||||||||
Total | 13,601 | 15,836 | (2,235 | ) | ||||||||
Other data | ||||||||||||
Depreciation and amortization | $ | 12,262 | $ | 11,847 | $ | 415 | ||||||
Capital expenditures | $ | 15,959 | $ | 14,023 | $ | 1,936 | ||||||
Operating loss | $ | (5,891 | ) | $ | (13,673 | ) | $ | 7,782 | ||||
SELECTED BUSINESS SEGMENT DATA (UNAUDITED)
For the 9 months ending September 30, 2008 and 2007
| Year-to-date | ||||||||||
(in thousands, except sales price data) | 2008 | 2007 | Change | |||||||
Oil and Gas Operations | ||||||||||
Operating revenues | ||||||||||
Natural gas | $ | 411,453 | $ | 371,436 | $ | 40,017 | ||||
Oil | 221,402 | 181,388 | 40,014 | |||||||
Natural gas liquids | 55,915 | 49,076 | 6,839 | |||||||
Other | 15,658 | 3,912 | 11,746 | |||||||
Total | $ | 704,428 | $ | 605,812 | $ | 98,616 | ||||
Production volumes from continuing operations | ||||||||||
Natural gas (MMcf) | 50,081 | 47,732 | 2,349 | |||||||
Oil (MBbl) | 3,005 | 2,898 | 107 | |||||||
Natural gas liquids (MMgal) | 52.7 | 57.6 | (4.9 | ) | ||||||
Production volumes from continuing ops. (MMcfe) | 75,639 | 73,350 | 2,289 | |||||||
Total production volumes (MMcfe) | 75,639 | 73,349 | 2,290 | |||||||
Revenue per unit of production including effects of all derivative instruments | ||||||||||
Natural gas (Mcf) | $ | 8.22 | $ | 7.78 | $ | 0.44 | ||||
Oil (barrel) | $ | 73.69 | $ | 62.58 | $ | 11.11 | ||||
Natural gas liquids (gallon) | $ | 1.06 | $ | 0.85 | $ | 0.21 | ||||
Other data from continuing operations | ||||||||||
Lease operating expense (LOE) | ||||||||||
LOE and other | $ | 128,627 | $ | 113,236 | $ | 15,391 | ||||
Production taxes | 58,739 | 38,568 | 20,171 | |||||||
Total | $ | 187,366 | $ | 151,804 | $ | 35,562 | ||||
Depreciation, depletion and amortization | $ | 97,240 | $ | 83,083 | $ | 14,157 | ||||
General and administrative expense | $ | 37,755 | $ | 39,582 | $ | (1,827 | ) | |||
Capital expenditures | $ | 295,507 | $ | 254,795 | $ | 40,712 | ||||
Exploration expenditures | $ | 4,215 | $ | 1,671 | $ | 2,544 | ||||
Operating income | $ | 377,852 | $ | 329,672 | $ | 48,180 | ||||
Natural Gas Distribution | ||||||||||
Operating revenues | ||||||||||
Residential | $ | 301,633 | $ | 306,312 | $ | (4,679 | ) | |||
Commercial and industrial | 133,004 | 130,279 | 2,725 | |||||||
Transportation | 37,825 | 36,509 | 1,316 | |||||||
Other | 16,227 | 4,693 | 11,534 | |||||||
Total | $ | 488,689 | $ | 477,793 | $ | 10,896 | ||||
Gas delivery volumes (MMcf) | ||||||||||
Residential | 16,247 | 16,303 | (56 | ) | ||||||
Commercial and industrial | 8,349 | 8,373 | (24 | ) | ||||||
Transportation | 36,267 | 38,396 | (2,129 | ) | ||||||
Total | 60,863 | 63,072 | (2,209 | ) | ||||||
Other data | ||||||||||
Depreciation and amortization | $ | 36,401 | $ | 35,101 | $ | 1,300 | ||||
Capital expenditures | $ | 44,955 | $ | 45,596 | $ | (641 | ) | |||
Operating income | $ | 67,125 | $ | 59,734 | $ | 7,391 | ||||
SELECTED BUSINESS SEGMENT DATA (UNAUDITED)
For the 12 months ending September 30, 2008 and 2007
| Trailing 12 Months | ||||||||||
(in thousands, except sales price data) | 2008 | 2007 | Change | |||||||
Oil and Gas Operations | ||||||||||
Operating revenues | ||||||||||
Natural gas | $ | 539,423 | $ | 477,923 | $ | 61,500 | ||||
Oil | 291,511 | 226,701 | 64,810 | |||||||
Natural gas liquids | 75,462 | 61,182 | 14,280 | |||||||
Other | 17,812 | 60,335 | (42,523 | ) | ||||||
Total | $ | 924,208 | $ | 826,141 | $ | 98,067 | ||||
Production volumes from continuing operations | ||||||||||
Natural gas (MMcf) | 66,649 | 63,500 | 3,149 | |||||||
Oil (MBbl) | 3,986 | 3,807 | 179 | |||||||
Natural gas liquids (MMgal) | 72.3 | 76.9 | (4.6 | ) | ||||||
Production volumes from continuing ops. (MMcfe) | 100,895 | 97,321 | 3,574 | |||||||
Total production volumes (MMcfe) | 100,895 | 97,320 | 3,575 | |||||||
Revenue per unit of production including effects of all derivative instruments | ||||||||||
Natural gas (Mcf) | $ | 8.09 | $ | 7.53 | $ | 0.56 | ||||
Oil (barrel) | $ | 73.14 | $ | 59.55 | $ | 13.59 | ||||
Natural gas liquids (gallon) | $ | 1.04 | $ | 0.80 | $ | 0.24 | ||||
Other data from continuing operations | ||||||||||
Lease operating expense (LOE) | ||||||||||
LOE and other | $ | 163,671 | $ | 147,300 | $ | 16,371 | ||||
Production taxes | 73,969 | 49,623 | 24,346 | |||||||
Total | $ | 237,640 | $ | 196,923 | $ | 40,717 | ||||
Depreciation, depletion and amortization | $ | 128,398 | $ | 109,333 | $ | 19,065 | ||||
General and administrative expense | $ | 52,985 | $ | 43,640 | $ | 9,345 | ||||
Capital expenditures | $ | 420,191 | $ | 357,867 | $ | 62,324 | ||||
Exploration expenditures | $ | 5,438 | $ | 2,340 | $ | 3,098 | ||||
Operating income | $ | 499,747 | $ | 473,905 | $ | 25,842 | ||||
Natural Gas Distribution | ||||||||||
Operating revenues | ||||||||||
Residential | $ | 383,613 | $ | 409,743 | $ | (26,130 | ) | |||
Commercial and industrial | 167,629 | 172,465 | (4,836 | ) | ||||||
Transportation | 50,571 | 49,348 | 1,223 | |||||||
Other | 18,551 | 6,667 | 11,884 | |||||||
Total | $ | 620,364 | $ | 638,223 | $ | (17,859 | ) | |||
Gas delivery volumes (MMcf) | ||||||||||
Residential | 20,609 | 22,032 | (1,423 | ) | ||||||
Commercial and industrial | 10,569 | 11,040 | (471 | ) | ||||||
Transportation | 49,318 | 51,209 | (1,891 | ) | ||||||
Total | 80,496 | 84,281 | (3,785 | ) | ||||||
Other data | ||||||||||
Depreciation and amortization | $ | 48,436 | $ | 46,465 | $ | 1,971 | ||||
Capital expenditures | $ | 58,221 | $ | 62,806 | $ | (4,585 | ) | |||
Operating income | $ | 80,133 | $ | 76,491 | $ | 3,642 | ||||