Exhibit 99.2
CONSOLIDATED STATEMENTSOF INCOME (UNAUDITED)
For the 3 months ending March 31, 2012 and 2011
1st Quarter | Change | |||||||||||
(in thousands, except per share data) | 2012 | 2011 | ||||||||||
Operating Revenues | ||||||||||||
Oil and gas operations | $ | 223,957 | $ | 216,792 | $ | 7,165 | ||||||
Natural gas distribution | 194,487 | 269,572 | (75,085 | ) | ||||||||
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Total operating revenues | 418,444 | 486,364 | (67,920 | ) | ||||||||
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Operating Expenses | ||||||||||||
Cost of gas | 59,586 | 131,749 | (72,163 | ) | ||||||||
Operations and maintenance | 110,561 | 103,782 | 6,779 | |||||||||
Depreciation, depletion and amortization | 94,534 | 61,128 | 33,406 | |||||||||
Asset impairment | 21,545 | — | 21,545 | |||||||||
Taxes, other than income taxes | 26,235 | 28,175 | (1,940 | ) | ||||||||
Accretion expense | 1,813 | 1,649 | 164 | |||||||||
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Total operating expenses | 314,274 | 326,483 | (12,209 | ) | ||||||||
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Operating Income | 104,170 | 159,881 | (55,711 | ) | ||||||||
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Other Income (Expense) | ||||||||||||
Interest expense | (15,425 | ) | (9,404 | ) | (6,021 | ) | ||||||
Other income | 2,032 | 1,230 | 802 | |||||||||
Other expense | (113 | ) | (163 | ) | 50 | |||||||
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Total other expense | (13,506 | ) | (8,337 | ) | (5,169 | ) | ||||||
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Income Before Income Taxes | 90,664 | 151,544 | (60,880 | ) | ||||||||
Income tax expense | 33,258 | 57,276 | (24,018 | ) | ||||||||
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Net Income | $ | 57,406 | $ | 94,268 | $ | (36,862 | ) | |||||
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Diluted Earnings Per Average Common Share | $ | 0.79 | $ | 1.30 | $ | (0.51 | ) | |||||
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Basic Earnings Per Average Common Share | $ | 0.80 | $ | 1.31 | $ | (0.51 | ) | |||||
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Diluted Avg. Common Shares Outstanding | 72,326 | 72,240 | 86 | |||||||||
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Basic Avg. Common Shares Outstanding | 72,102 | 72,001 | 101 | |||||||||
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Dividends Per Common Share | $ | 0.14 | $ | 0.135 | $ | 0.005 | ||||||
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1
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
As of March 31, 2012 and December 31, 2011
(in thousands) | March 31, 2012 | December 31, 2011 | ||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 49,618 | $ | 9,541 | ||||
Accounts receivable, net of allowance | 203,642 | 231,925 | ||||||
Inventories | 72,539 | 74,012 | ||||||
Regulatory asset | 54,790 | 57,143 | ||||||
Other | 55,914 | 71,547 | ||||||
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Total current assets | 436,503 | 444,168 | ||||||
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Property, Plant and Equipment | ||||||||
Oil and gas properties, net | 4,005,163 | 3,783,842 | ||||||
Utility plant, net | 818,420 | 813,428 | ||||||
Other property, net | 23,827 | 23,506 | ||||||
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Total property, plant and equipment, net | 4,847,410 | 4,620,776 | ||||||
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Other Assets | ||||||||
Regulatory asset | 91,478 | 95,633 | ||||||
Long-term derivative instruments | 10,608 | 31,056 | ||||||
Other | 46,773 | 45,783 | ||||||
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Total other assets | 148,859 | 172,472 | ||||||
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TOTAL ASSETS | $ | 5,432,772 | $ | 5,237,416 | ||||
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LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current Liabilities | ||||||||
Long-term debt due within one year | $ | 1,000 | $ | 1,000 | ||||
Notes payable to banks | 165,000 | 15,000 | ||||||
Accounts payable | 340,633 | 302,048 | ||||||
Regulatory liability | 30,049 | 58,279 | ||||||
Other | 137,349 | 167,552 | ||||||
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Total current liabilities | 674,031 | 543,879 | ||||||
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Long-term debt | 1,153,686 | 1,153,700 | ||||||
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Deferred Credits and Other Liabilities | ||||||||
Regulatory liability | 74,159 | 87,234 | ||||||
Deferred income taxes | 813,451 | 806,127 | ||||||
Long-term derivative instruments | 61,066 | 34,663 | ||||||
Other | 182,555 | 179,650 | ||||||
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Total deferred credits and other liabilities | 1,131,231 | 1,107,674 | ||||||
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Total Shareholders’ Equity | 2,473,824 | 2,432,163 | ||||||
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TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 5,432,772 | $ | 5,237,416 | ||||
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2
SELECTED BUSINESS SEGMENT DATA (UNAUDITED)
For the 3 months ending March 31, 2012 and 2011
1st Quarter | Change | |||||||||||
(in thousands, except sales price data) | 2012 | 2011 | ||||||||||
Oil and Gas Operations | ||||||||||||
Operating revenues | ||||||||||||
Natural gas | $ | 75,580 | $ | 95,599 | $ | (20,019 | ) | |||||
Oil | 124,314 | 103,256 | 21,058 | |||||||||
Natural gas liquids | 23,712 | 17,533 | 6,179 | |||||||||
Other | 351 | 404 | (53 | ) | ||||||||
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Total | $ | 223,957 | $ | 216,792 | $ | 7,165 | ||||||
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Production volumes | ||||||||||||
Natural gas (MMcf) | 19,092 | 17,334 | 1,758 | |||||||||
Oil (MBbl) | 1,953 | 1,364 | 589 | |||||||||
Natural gas liquids (MMgal) | 26.0 | 19.7 | 6.3 | |||||||||
Total production volumes (MMcfe) | 34,530 | 28,338 | 6,192 | |||||||||
Total production volumes (MBOE) | 5,755 | 4,723 | 1,032 | |||||||||
Revenue per unit of production including effects of all derivative instruments | ||||||||||||
Natural gas (Mcf) | $ | 3.96 | $ | 5.52 | $ | (1.56 | ) | |||||
Oil (barrel) | $ | 63.65 | $ | 75.70 | $ | (12.05 | ) | |||||
Natural gas liquids (gallon) | $ | 0.91 | $ | 0.89 | $ | 0.02 | ||||||
Revenue per unit of production including effects of qualifying cash flow hedges | ||||||||||||
Natural gas (Mcf) | $ | 3.94 | $ | 5.52 | $ | (1.58 | ) | |||||
Oil (barrel) | $ | 85.12 | $ | 75.70 | $ | 9.42 | ||||||
Natural gas liquids (gallon) | $ | 0.87 | $ | 0.89 | $ | (0.02 | ) | |||||
Revenue per unit of production excluding effects of all derivative instruments | ||||||||||||
Natural gas (Mcf) | $ | 2.69 | $ | 4.01 | $ | (1.32 | ) | |||||
Oil (barrel) | $ | 77.12 | $ | 88.67 | $ | (11.55 | ) | |||||
Natural gas liquids (gallon) | $ | 0.99 | $ | 1.01 | $ | (0.02 | ) | |||||
Other data | ||||||||||||
Lease operating expense (LOE) | ||||||||||||
LOE and other | $ | 56,612 | $ | 46,945 | $ | 9,667 | ||||||
Production taxes | 14,162 | 12,283 | 1,879 | |||||||||
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Total | $ | 70,774 | $ | 59,228 | $ | 11,546 | ||||||
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Depreciation, depletion and amortization | $ | 84,088 | $ | 51,348 | $ | 32,740 | ||||||
Asset impairment | $ | 21,545 | $ | — | $ | 21,545 | ||||||
General and administrative expense | $ | 17,943 | $ | 18,894 | $ | (951 | ) | |||||
Capital expenditures | $ | 340,967 | $ | 140,323 | $ | 200,644 | ||||||
Exploration expenditures | $ | 1,789 | $ | 614 | $ | 1,175 | ||||||
Operating income | $ | 26,005 | $ | 85,059 | $ | (59,054 | ) | |||||
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Natural Gas Distribution | ||||||||||||
Operating revenues | ||||||||||||
Residential | $ | 130,509 | $ | 187,674 | $ | (57,165 | ) | |||||
Commercial and industrial | 46,756 | 66,906 | (20,150 | ) | ||||||||
Transportation | 15,598 | 16,493 | (895 | ) | ||||||||
Other | 1,624 | (1,501 | ) | 3,125 | ||||||||
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Total | $ | 194,487 | $ | 269,572 | $ | (75,085 | ) | |||||
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Gas delivery volumes (MMcf) | ||||||||||||
Residential | 8,238 | 12,591 | (4,353 | ) | ||||||||
Commercial and industrial | 3,442 | 5,000 | (1,558 | ) | ||||||||
Transportation | 12,036 | 12,970 | (934 | ) | ||||||||
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Total | 23,716 | 30,561 | (6,845 | ) | ||||||||
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Other data | ||||||||||||
Depreciation and amortization | $ | 10,446 | $ | 9,780 | $ | 666 | ||||||
Capital expenditures | $ | 14,943 | $ | 13,540 | $ | 1,403 | ||||||
Operating income | $ | 78,560 | $ | 75,059 | $ | 3,501 | ||||||
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