EXHIBIT 99.2
CONSOLIDATED STATEMENTSOF INCOME (UNAUDITED)
For the 3 months ending September 30, 2012 and 2011
3rd Quarter | ||||||||||||
(in thousands, except per share data) | 2012 | 2011 | Change | |||||||||
Operating Revenues | ||||||||||||
Oil and gas operations | $ | 233,515 | $ | 318,952 | $ | (85,437) | ||||||
Natural gas distribution | 61,809 | 59,616 | 2,193 | |||||||||
Total operating revenues | 295,324 | 378,568 | (83,244) | |||||||||
Operating Expenses | ||||||||||||
Cost of gas | 20,924 | 21,748 | (824) | |||||||||
Operations and maintenance | 128,587 | 111,749 | 16,838 | |||||||||
Depreciation, depletion and amortization | 104,338 | 72,802 | 31,536 | |||||||||
Taxes, other than income taxes | 20,110 | 20,129 | (19) | |||||||||
Accretion expense | 1,907 | 1,728 | 179 | |||||||||
Total operating expenses | 275,866 | 228,156 | 47,710 | |||||||||
Operating Income | 19,458 | 150,412 | (130,954) | |||||||||
Other Income (Expense) | ||||||||||||
Interest expense | (17,198) | (11,976) | (5,222) | |||||||||
Other income | 1,523 | 619 | 904 | |||||||||
Other expense | (84) | (2,074) | 1,990 | |||||||||
Total other expense | (15,759) | (13,431) | (2,328) | |||||||||
Income Before Income Taxes | 3,699 | 136,981 | (133,282) | |||||||||
Income tax expense | 1,653 | 49,382 | (47,729) | |||||||||
Net Income | $ | 2,046 | $ | 87,599 | $ | (85,553) | ||||||
Diluted Earnings Per Average Common Share | $ | 0.03 | $ | 1.21 | $ | (1.18) | ||||||
Basic Earnings Per Average Common Share | $ | 0.03 | $ | 1.22 | $ | (1.19) | ||||||
Diluted Avg. Common Shares Outstanding | 72,316 | 72,375 | (59) | |||||||||
Basic Avg. Common Shares Outstanding | 72,130 | 72,068 | 62 | |||||||||
Dividends Per Common Share | $ | 0.14 | $ | 0.135 | $ | 0.005 |
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CONSOLIDATED STATEMENTSOF INCOME (UNAUDITED) For the 9 months ending September 30, 2012 and 2011 |
Year-to-date | ||||||||||||
(in thousands, except per share data) | 2012 | 2011 | Change | |||||||||
Operating Revenues | ||||||||||||
Oil and gas operations | $ | 856,940 | $ | 779,834 | $ | 77,106 | ||||||
Natural gas distribution | 327,183 | 415,497 | (88,314) | |||||||||
Total operating revenues | 1,184,123 | 1,195,331 | (11,208) | |||||||||
Operating Expenses | ||||||||||||
Cost of gas | 94,179 | 185,916 | (91,737) | |||||||||
Operations and maintenance | 351,861 | 318,763 | 33,098 | |||||||||
Depreciation, depletion and amortization | 300,863 | 199,559 | 101,304 | |||||||||
Asset impairment | 21,545 | — | 21,545 | |||||||||
Taxes, other than income taxes | 65,868 | 69,399 | (3,531) | |||||||||
Accretion expense | 5,581 | 5,066 | 515 | |||||||||
Total operating expenses | 839,897 | 778,703 | 61,194 | |||||||||
Operating Income | 344,226 | 416,628 | (72,402) | |||||||||
Other Income (Expense) | ||||||||||||
Interest expense | (48,458) | (30,843) | (17,615) | |||||||||
Other income | 3,740 | 1,727 | 2,013 | |||||||||
Other expense | (305) | (1,449) | 1,144 | |||||||||
Total other expense | (45,023) | (30,565) | (14,458) | |||||||||
Income Before Income Taxes | 299,203 | 386,063 | (86,860) | |||||||||
Income tax expense | 108,464 | 140,871 | (32,407) | |||||||||
Net Income | $ | 190,739 | $ | 245,192 | $ | (54,453) | ||||||
Diluted Earnings Per Average Common Share | $ | 2.64 | $ | 3.39 | $ | (0.75) | ||||||
Basic Earnings Per Average Common Share | $ | 2.64 | $ | 3.40 | $ | (0.76) | ||||||
Diluted Avg. Common Shares Outstanding | 72,301 | 72,409 | (108) | |||||||||
Basic Avg. Common Shares Outstanding | 72,121 | 72,045 | 76 | |||||||||
Dividends Per Common Share | $ | 0.42 | $ | 0.405 | $ | 0.015 |
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CONSOLIDATED BALANCE SHEETS (UNAUDITED)
As of September 30, 2012 and December 31, 2011
(in thousands) |
September 30, 2012 | December 31, 2011 | ||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 47,137 | $ | 9,541 | ||||
Accounts receivable, net of allowance | 194,473 | 231,925 | ||||||
Inventories | 73,950 | 74,012 | ||||||
Regulatory asset | 56,188 | 57,143 | ||||||
Other | 55,517 | 71,547 | ||||||
| ||||||||
Total current assets | 427,265 | 444,168 | ||||||
| ||||||||
Property, Plant and Equipment | ||||||||
Oil and gas properties, net | 4,448,844 | 3,783,842 | ||||||
Utility plant, net | 835,175 | 813,428 | ||||||
Other property, net | 23,953 | 23,506 | ||||||
| ||||||||
Total property, plant and equipment, net | 5,307,972 | 4,620,776 | ||||||
| ||||||||
Other Assets | ||||||||
Regulatory asset | 94,869 | 95,633 | ||||||
Long-term derivative instruments | 43,137 | 31,056 | ||||||
Other | 46,586 | 45,783 | ||||||
| ||||||||
Total other assets | 184,592 | 172,472 | ||||||
| ||||||||
TOTAL ASSETS | $ | 5,919,829 | $ | 5,237,416 | ||||
| ||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current Liabilities | ||||||||
Long-term debt due within one year | $ | — | $ | 1,000 | ||||
Notes payable to banks | 480,000 | 15,000 | ||||||
Accounts payable | 264,930 | 302,048 | ||||||
Regulatory liability | 27,372 | 58,279 | ||||||
Other | 190,929 | 167,552 | ||||||
| ||||||||
Total current liabilities | 963,231 | 543,879 | ||||||
| ||||||||
Long-term debt | 1,153,591 | 1,153,700 | ||||||
| ||||||||
Deferred Credits and Other Liabilities | ||||||||
Regulatory liability | 77,692 | 87,234 | ||||||
Deferred income taxes | 885,839 | 806,127 | ||||||
Long-term derivative instruments | 11,110 | �� | 34,663 | |||||
Other | 207,277 | 179,650 | ||||||
| ||||||||
Total deferred credits and other liabilities | 1,181,918 | 1,107,674 | ||||||
| ||||||||
Total Shareholders’ Equity | 2,621,089 | 2,432,163 | ||||||
| ||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 5,919,829 | $ | 5,237,416 | ||||
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SELECTED BUSINESS SEGMENT DATA (UNAUDITED) For the 3 months ending September 30, 2012 and 2011 |
3rd Quarter | ||||||||||||
(in thousands, except sales price data) | 2012 | 2011 | Change | |||||||||
Oil and Gas Operations (GAAP) | ||||||||||||
Operating revenues | ||||||||||||
Natural gas | $ | 67,542 | $ | 96,604 | $ | (29,062) | ||||||
Oil | 148,004 | 197,636 | (49,632) | |||||||||
Natural gas liquids | 17,566 | 24,476 | (6,910) | |||||||||
Other | 403 | 236 | 167 | |||||||||
Total (GAAP) | $ | 233,515 | $ | 318,952 | $ | (85,437) | ||||||
Oil and Gas Operations excluding mark-to-market (Non-GAAP) | ||||||||||||
Operating revenues | ||||||||||||
Natural gas | $ | 71,701 | $ | 96,604 | $ | (24,903) | ||||||
Oil | 188,573 | 144,505 | 44,068 | |||||||||
Natural gas liquids | 19,590 | 24,381 | (4,791) | |||||||||
Other | 403 | 236 | 167 | |||||||||
Total (Non-GAAP)* | $ | 280,267 | $ | 265,726 | $ | 14,541 | ||||||
Production volumes | ||||||||||||
Natural gas (MMcf) | 18,882 | 17,796 | 1,086 | |||||||||
Oil (MBbl) | 2,279 | 1,709 | 570 | |||||||||
Natural gas liquids (MMgal) | 25.2 | 24.3 | 0.90 | |||||||||
Total production volumes (MMcfe) | 36,156 | 31,518 | 4,638 | |||||||||
Total production volumes (MBOE) | 6,026 | 5,253 | 773 | |||||||||
Revenue per unit of production including effects of designated cash flow hedges | ||||||||||||
Natural gas (Mcf) | $ | 3.80 | $ | 5.43 | $ | (1.63) | ||||||
Oil (barrel) | $ | 82.74 | $ | 84.56 | $ | (1.82) | ||||||
Natural gas liquids (gallon) | $ | 0.78 | $ | 1.00 | $ | (0.22) | ||||||
Revenue per unit of production excluding effects of all derivative instruments | ||||||||||||
Natural gas (Mcf) | $ | 2.72 | $ | 4.11 | $ | (1.39) | ||||||
Oil (barrel) | $ | 86.53 | $ | 86.17 | $ | 0.36 | ||||||
Natural gas liquids (gallon) | $ | 0.68 | $ | 1.17 | $ | (0.49) | ||||||
Other data | ||||||||||||
Lease operating expense (LOE) | ||||||||||||
LOE and other | $ | 63,731 | $ | 54,563 | $ | 9,168 | ||||||
Production taxes | 14,069 | 14,367 | (298) | |||||||||
Total | $ | 77,800 | $ | 68,930 | $ | 8,870 | ||||||
Depreciation, depletion and amortization | $ | 93,766 | $ | 62,822 | $ | 30,944 | ||||||
General and administrative expense | $ | 16,989 | $ | 13,366 | $ | 3,623 | ||||||
Capital expenditures | $ | 323,037 | $ | 266,745 | $ | 56,292 | ||||||
Exploration expenditures | $ | 10,646 | $ | 10,775 | $ | (129) | ||||||
Operating income | $ | 32,407 | $ | 161,331 | $ | (128,924) |
*Operating revenues excluding mark-to-market losses of $46,752 and gains of $53,226 in third quarter 2012 and 2011, respectively.
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Natural Gas Distribution | ||||||||||||
Operating revenues | ||||||||||||
Residential | $ | 30,658 | $ | 30,541 | $ | 117 | ||||||
Commercial and industrial | 17,695 | 16,984 | 711 | |||||||||
Transportation | 13,505 | 12,114 | 1,391 | |||||||||
Other | (49) | (23) | (26) | |||||||||
Total | $ | 61,809 | $ | 59,616 | $ | 2,193 | ||||||
Gas delivery volumes (MMcf) | ||||||||||||
Residential | 1,378 | 1,385 | (7) | |||||||||
Commercial and industrial | 1,246 | 1,181 | 65 | |||||||||
Transportation | 11,252 | 10,004 | 1,248 | |||||||||
Total | 13,876 | 12,570 | 1,306 | |||||||||
Other data | ||||||||||||
Depreciation and amortization | $ | 10,572 | $ | 9,980 | $ | 592 | ||||||
Capital expenditures | $ | 18,813 | $ | 21,333 | $ | (2,520) | ||||||
Operating loss | $ | (12,743) | $ | (10,681) | $ | (2,062) |
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SELECTED BUSINESS SEGMENT DATA (UNAUDITED)
For the 9 months ending September 30, 2012 and 2011
Year-to-date | ||||||||||||
(in thousands, except sales price data) | 2012 | 2011 | Change | |||||||||
| ||||||||||||
Oil and Gas Operations (GAAP) | ||||||||||||
Operating revenues | ||||||||||||
Natural gas | $ | 211,371 | $ | 290,240 | $ | (78,869) | ||||||
Oil | 579,278 | 419,830 | 159,448 | |||||||||
Natural gas liquids | 64,970 | 63,491 | 1,479 | |||||||||
Other | 1,321 | 6,273 | (4,952) | |||||||||
| ||||||||||||
Total (GAAP) | $ | 856,940 | $ | 779,834 | $ | 77,106 | ||||||
| ||||||||||||
Oil and Gas Operations excluding mark-to-market (Non-GAAP) | ||||||||||||
Operating revenues | ||||||||||||
Natural gas | $ | 215,492 | $ | 290,240 | $ | (74,748) | ||||||
Oil | 542,923 | 366,700 | 176,223 | |||||||||
Natural gas liquids | 63,169 | 63,396 | (227) | |||||||||
Other | 1,321 | 6,273 | (4,952) | |||||||||
| ||||||||||||
Total (Non-GAAP)* | $ | 822,905 | $ | 726,609 | $ | 96,296 | ||||||
| ||||||||||||
Production volumes | ||||||||||||
Natural gas (MMcf) | 57,252 | 52,908 | 4,344 | |||||||||
Oil (MBbl) | 6,427 | 4,574 | 1,853 | |||||||||
Natural gas liquids (MMgal) | 79.0 | 66.6 | 12.4 | |||||||||
Total production volumes (MMcfe) | 107,100 | 89,868 | 17,232 | |||||||||
Total production volumes (MBOE) | 17,850 | 14,978 | 2,872 | |||||||||
Revenue per unit of production including effects of designated cash flow hedges | ||||||||||||
Natural gas (Mcf) | $ | 3.76 | $ | 5.49 | $ | (1.73) | ||||||
Oil (barrel) | $ | 84.48 | $ | 80.17 | $ | 4.31 | ||||||
Natural gas liquids (gallon) | $ | 0.80 | $ | 0.95 | $ | (0.15) | ||||||
Revenue per unit of production excluding effects of all derivative instruments | ||||||||||||
Natural gas (Mcf) | $ | 2.53 | $ | 4.10 | $ | (1.57) | ||||||
Oil (barrel) | $ | 89.91 | $ | 90.40 | $ | (0.49) | ||||||
Natural gas liquids (gallon) | $ | 0.78 | $ | 1.11 | $ | (0.33) | ||||||
Other data | ||||||||||||
Lease operating expense (LOE) | ||||||||||||
LOE and other | $ | 179,122 | $ | 152,220 | $ | 26,902 | ||||||
Production taxes | 41,436 | 40,842 | 594 | |||||||||
| ||||||||||||
Total | $ | 220,558 | $ | 193,062 | $ | 27,496 | ||||||
| ||||||||||||
Depreciation, depletion and amortization | $ | 269,312 | $ | 169,953 | $ | 99,359 | ||||||
Asset impairment | $ | 21,545 | $ | — | $ | 21,545 | ||||||
General and administrative expense | $ | 51,739 | $ | 47,349 | $ | 4,390 | ||||||
Capital expenditures | $ | 957,913 | $ | 666,601 | $ | 291,312 | ||||||
Exploration expenditures | $ | 13,387 | $ | 12,596 | $ | 791 | ||||||
Operating income | $ | 274,818 | $ | 351,808 | $ | (76,990) | ||||||
*Operating revenues excluding mark-to-market gains of $34,035 and $53,225 in 2012 and 2011, respectively.
6
Natural Gas Distribution | ||||||||||||
Operating revenues | ||||||||||||
Residential | $ | 201,537 | $ | 269,584 | $ | (68,047) | ||||||
Commercial and industrial | 84,889 | 107,283 | (22,394) | |||||||||
Transportation | 42,765 | 40,568 | 2,197 | |||||||||
Other | (2,008) | (1,938) | (70) | |||||||||
Total | $ | 327,183 | $ | 415,497 | $ | (88,314) | ||||||
Gas delivery volumes (MMcf) | ||||||||||||
Residential | 11,601 | 16,725 | (5,124) | |||||||||
Commercial and industrial | 6,137 | 7,843 | (1,706) | |||||||||
Transportation | 34,835 | 33,713 | 1,122 | |||||||||
| ||||||||||||
Total | 52,573 | 58,281 | (5,708) | |||||||||
| ||||||||||||
Other data | ||||||||||||
Depreciation and amortization | $ | 31,551 | $ | 29,606 | $ | 1,945 | ||||||
Capital expenditures | $ | 51,786 | $ | 57,170 | $ | (5,384) | ||||||
Operating income | $ | 70,265 | $ | 65,541 | $ | 4,724 | ||||||
|
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