Exhibit 99
| | | | |
Release Date: | | National Fuel Gas Company | | Financial News |
| | Immediate May 3, 2012 | | 6363 Main Street/Williamsville, NY 14221 Timothy Silverstein Investor Relations 716-857-6987 David P. Bauer Treasurer 716-857-7318 |
NATIONAL FUEL REPORTS SECOND QUARTER EARNINGS
WILLIAMSVILLE, NY: National Fuel Gas Company (“National Fuel” or the “Company”) (NYSE:NFG) today announced consolidated earnings for the second quarter of fiscal 2012 and for the six months ended March 31, 2012.
HIGHLIGHTS
| • | | Earnings for the second quarter were $67.4 million or $0.81 per share. During the quarter Seneca Resources Corporation (“Seneca”) recorded the effect of the new Pennsylvania impact fee. The fee, which applies to all Marcellus Shale wells drilled in Pennsylvania both prior to and subsequent to passage of the bill, reduced current quarter earnings by $6.4 million or $0.08 per share. Excluding the impact fee, operating results before items impacting comparability (“Operating Results”) for the second quarter of fiscal 2012 were $73.8 million or $0.89 per share. |
| • | | In the Pipeline and Storage segment, second quarter earnings increased $1.9 million, or $0.02 per share, largely driven by the impact of the Line N Expansion and Tioga County Extension projects that were placed in service during the first quarter. Also, as part of the ongoing expansion of the Company’s pipeline and gathering infrastructure, construction of National Fuel Gas Midstream Corporation’s Trout Run Gathering System is nearing completion and is expected to be in service during the third quarter of fiscal 2012. |
| • | | Seneca’s production of crude oil and natural gas in the current quarter was 18.4 billion cubic feet equivalent (“Bcfe”) compared to 18.2 Bcfe in the second quarter of 2011. Excluding 2011 production from the Gulf of Mexico assets that Seneca sold in April, 2011, Seneca’s production increased approximately 18%. Appalachian production increased approximately 22% to 13.3 Bcfe, including production from the Marcellus Shale of 11.5 Bcfe. California crude oil production increased approximately 11.5%. Production for the entire 2012 fiscal year is projected to be between 81 and 90 Bcfe. |
| • | | A conference call is scheduled for Friday, May 4, 2012, at 11 a.m. Eastern Time. |
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MANAGEMENT COMMENTS
David F. Smith, Chairman and Chief Executive Officer of National Fuel Gas Company, stated: “The combined effects of declining natural gas prices realized by our Exploration and Production segment, and the warmest winter on record in our Utility segment’s Pennsylvania service territory, were evident in our second quarter results. Since these factors are beyond our control, our focus instead remains on the ongoing financial and operational strength of National Fuel.
“We continue to make strategic decisions intended to maximize the long-term value of our asset base. During the quarter, Seneca reduced its rig count in Appalachia by one-third to four rigs, and plans to drop an additional rig in the third quarter. At that time, there will be two development rigs and one rig dedicated to the ongoing delineation of Seneca’s prospects in the Utica Shale and rich-gas regions of the Marcellus. With no near-term lease expiration concerns, our primary objective is to safeguard both the long-term value of these assets and the overall strength of our balance sheet.
“At the same time, we continue to invest capital in our California oil assets, where we saw an 11.5 percent increase in crude oil production over last year’s quarter. We also remain focused on the expansion of our pipeline network, completing two projects last fall which contributed to the increase in the Pipeline and Storage segment’s earnings. Progress is continuing on several additional projects expected to be in service in the coming year, providing additional growth within our pipeline businesses.
“As we’ve said in the past, we believe our integrated business model creates long-term value for our shareholders through all economic cycles. The low natural gas price environment will be difficult for independent producers, but our diverse asset base and strong balance sheet positions us well to meet any challenges that we may encounter.”
SUMMARY OF RESULTS
National Fuel had consolidated earnings for the quarter ended March 31, 2012, of $67.4 million, or $0.81 per share, compared to the prior year’s second quarter earnings of $115.6 million, or $1.38 per share, a decrease of $48.2 million or $0.57 per share. The decrease is mainly due to the 2011 gain of $31.4 million, or $0.38 per share, on the sale of Horizon Power Inc’s interest in certain entities that owned landfill gas electric generation assets in the All Other category. Lower earnings in the Exploration and Production, Utility and Energy Marketing segments also contributed to the decrease in earnings. (Note: All references to earnings per share are to diluted earnings per share, and all amounts used in the discussion of earnings and operating results before items impacting comparability (“Operating Results”) are after tax unless otherwise noted.)
Consolidated earnings for the six months ended March 31, 2012, of $128.1 million, or $1.53 per share, decreased $46.1 million, or $0.55 per share, from the same period in the prior year, where earnings were $174.2 million or $2.08 per share.
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| | | | | | | | | | | | | | | | |
| | | Three Months
Ended March 31, | | | Six Months
Ended March 31, | |
| | | 2012 | | | 2011 | | | 2012 | | | 2011 | |
| (in thousands except per share amounts) | | | | | | | | | | | | |
Reported GAAP earnings | | $ | 67,392 | | | $ | 115,611 | | | $ | 128,091 | | | $ | 174,154 | |
Items impacting comparability1: | | | | | | | | | | | | | | | | |
Pennsylvania impact fee | | | 6,400 | | | | | | | | 6,400 | | | | | |
Gain on sale of landfill gas electric generation investments | | | | | | | (31,418 | ) | | | | | | | (31,418 | ) |
| | | | | | | | | | | | | | | | |
Operating Results | | $ | 73,792 | | | $ | 84,193 | | | $ | 134,491 | | | $ | 142,736 | |
| | | | | | | | | | | | | | | | |
Reported GAAP earnings per share | | $ | 0.81 | | | $ | 1.38 | | | $ | 1.53 | | | $ | 2.08 | |
Items impacting comparability1: | | | | | | | | | | | | | | | | |
Pennsylvania impact fee | | | 0.08 | | | | | | | | 0.08 | | | | | |
Gain on sale of landfill gas electric generation investments | | | | | | | (0.38 | ) | | | | | | | (0.38 | ) |
| | | | | | | | | | | | | | | | |
Operating Results | | $ | 0.89 | | | $ | 1.00 | | | $ | 1.61 | | | $ | 1.70 | |
| | | | | | | | | | | | | | | | |
| 1 | See discussion of these individual items below. |
As outlined in the table above, certain items included in GAAP earnings impacted the comparability of the Company’s financial results when comparing the quarter and six months ended March 31, 2012, to the comparable periods in fiscal 2011. Excluding these items, Operating Results for the current quarter of $73.8 million, or $0.89 per share, decreased $10.4 million, or $0.11 per share, from the prior year’s second quarter where Operating Results were $84.2 million or $1.00 per share. Excluding these items, Operating Results for the six months ended March 31, 2012, of $134.5 million, or $1.61 per share, decreased $8.2 million, or $0.09 per share, from the same period in the prior year, where Operating Results were $142.7 million or $1.70 per share. Items impacting comparability will be discussed in more detail within the discussion of segment earnings below.
DISCUSSION OF RESULTS BY SEGMENT
The following discussion of the earnings of each segment is summarized in a tabular form at pages 9 and 10 of this report. It may be helpful to refer to those tables while reviewing this discussion.
Exploration and Production Segment
The Exploration and Production segment operations are carried out by Seneca Resources Corporation (“Seneca”). Seneca explores for, develops and produces natural gas and oil reserves in California and Appalachia. Seneca completed the sale of its offshore Gulf of Mexico assets in April 2011.
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The Exploration and Production segment’s earnings in the second quarter of fiscal 2012 of $22.2 million, or $0.27 per share, decreased $11.1 million, or $0.13 per share, when compared with the prior year’s second quarter.
In February 2012, the Commonwealth of Pennsylvania passed a natural gas impact fee. The legislation, which covers essentially all of Seneca’s Marcellus Shale wells, imposes an annual fee for a period of fifteen years on each well drilled. The impact fee is adjusted annually based on three factors: the age of the well, changes in the Consumer Price Index, and the average monthly NYMEX price for natural gas. The fee is retroactive and applies to wells drilled in the current fiscal year, and in all previous years. The impact fee increased property, franchise and other taxes in the current year’s second quarter by $9.8 million (pre-tax). Of this amount $1.9 million (pre-tax) relates to the second quarter of fiscal 2012, $2.0 million (pre-tax) to the first quarter of fiscal 2012 and $5.9 million (pre-tax) to prior fiscal years.
Excluding the impact fee, the Exploration and Production segment’s Operating Results in the second quarter of fiscal 2012 were $28.6 million, or $0.35 per share, a decrease of $4.7 million, or $0.05 per share when compared with the prior year’s second quarter.
Overall production of natural gas and crude oil for the current quarter of 18.4 Bcfe increased approximately 0.2 Bcfe compared to the prior year’s second quarter. Excluding Gulf of Mexico production of 2.6 Bcfe due to the sale of Seneca’s offshore Gulf of Mexico assets, production increased approximately 17.8 percent or 2.8 Bcfe. Production from Seneca’s Appalachia properties increased approximately 21.7 percent, mainly due to a 2.5 Bcfe, or 27.8 percent increase, in production from Marcellus wells. Crude oil production in California increased 11.5 percent due to additional wells drilled at the Sespe and Midway Sunset fields.
Changes in commodity prices realized after hedging also impacted earnings. The weighted average natural gas price received by Seneca (after hedging) for the quarter ended March 31, 2012, was $4.64 per thousand cubic feet (“Mcf”), a decrease of $0.68 per Mcf compared to the prior year’s second quarter. Higher crude oil prices realized after hedging increased earnings. The weighted average oil price received by Seneca (after hedging) for the quarter ended March 31, 2012, was $93.40 per Barrel (“Bbl”), an increase of $11.12 per Bbl.
Depletion, lease operating expenses (“LOE”) and general and administrative expenses (“G&A”) for the current year’s second quarter increased over last year’s second quarter. On a per unit basis, depletion increased $0.11 per thousand cubic feet equivalent (“Mcfe”) due to higher capital spending in the East. LOE increased $0.10 per Mcfe largely due to higher transportation and compression costs and an increase in costs on non-operated joint venture wells. G&A increased $0.08 per Mcfe due to higher labor expenses including increased staffing, mainly in the East.
The Exploration and Production segment’s earnings of $52.5 million, or $0.63 per share, for the six months ended March 31, 2012, decreased $8.2 million, or $0.10 per share, when compared with the six months ended March 31, 2011. Excluding the impact fee discussed above, the Exploration and Production segment’s Operating Results for the six months ended March 31, 2012, were $58.9 million, or $0.71 per share, a decrease of $1.8 million, or $0.02 per share, when compared with the prior year’s six month period.
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Overall production for the six months ended March 31, 2012, increased approximately 8.2 percent. Excluding Gulf of Mexico production of 5.3 Bcfe due to the April 2011 sale of Seneca’s offshore Gulf of Mexico assets, production increased approximately 28.0 percent or 8.0 Bcfe. Production from Seneca’s Appalachia properties increased approximately 38.8 percent, mainly due to a 7.9 Bcfe or 53.0 percent increase in production from Marcellus wells. Crude oil production in California increased 9.9 percent.
Changes in commodity prices realized after hedging also impacted earnings. The weighted average natural gas price received by Seneca (after hedging) for the six-month period ended March 31, 2012, was $4.71 per Mcf, a decrease of $0.59 per Mcf. Higher crude oil prices realized after hedging increased earnings. The weighted average crude oil price received by Seneca (after hedging) for the six-month period ended March 31, 2012, was $92.39 per Bbl, an increase of $13.18 per Bbl.
Depletion, LOE and G&A for the six months ended March 31, 2012 increased compared to the prior year’s six-month period due in part to the higher production activity discussed above. On a per unit basis, depletion increased $0.12 per Mcfe, LOE increased $0.01 per Mcfe and G&A increased $0.06 per Mcfe primarily due to the reasons described above for the quarter.
Pipeline and Storage Segment
The Pipeline and Storage segment operations are carried out by National Fuel Gas Supply Corporation and Empire Pipeline, Inc. The Pipeline and Storage segment provides natural gas transportation and storage services to affiliated and non-affiliated companies through an integrated system of pipelines and underground natural gas storage fields in western New York and western Pennsylvania.
The Pipeline and Storage segment’s earnings of $12.8 million, or $0.15 per share, for the quarter ended March 31, 2012, increased $1.9 million, or $0.02 per share, when compared with the same period in the prior fiscal year. The increase in earnings is mainly due to higher transportation revenues from the Tioga County Extension and Line N Expansion projects, which were completed and placed in service in the current year’s first quarter and offset a decrease in revenue due to the turnback of other pipeline capacity at Niagara. Lower operating expenses also contributed to the increase in earnings for the quarter. Earnings were reduced by lower efficiency gas revenues due to the decline in natural gas prices and higher depreciation expense.
The Pipeline and Storage segment’s earnings of $22.8 million, or $0.27 per share, for the six months ended March 31, 2012, increased $3.3 million, or $0.04 per share, when compared with the same period in the prior fiscal year. The increase was mostly due to higher transportation revenues from the Tioga County Extension and Line N Expansion projects noted above. Earnings were reduced by lower efficiency gas revenues due to the decline in natural gas prices and higher depreciation.
Utility Segment
The Utility segment operations are carried out by National Fuel Gas Distribution Corporation, which sells or transports natural gas to customers located in western New York and northwestern Pennsylvania.
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The Utility segment’s earnings of $28.3 million, or $0.34 per share, for the quarter ended March 31, 2012, decreased $4.8 million, or $0.06 per share, when compared with the same period in the prior fiscal year. Warmer weather in Pennsylvania was the main reason for the decrease in earnings in the current year’s second quarter. Temperatures in Pennsylvania were 27.4 percent warmer in the current year’s second quarter than the second quarter of 2011. In New York, the warmer weather did not have a significant impact on earnings for the quarter. The impact of weather variations on earnings in New York is mitigated by that jurisdiction’s weather normalization clause.
The Utility segment’s earnings of $47.6 million, or $0.57 per share, for the six months ended March 31, 2012, decreased from earnings of $56.1 million, or $0.67 per share, for the six months ended March 31, 2011. Warmer weather in Pennsylvania and the impact of certain regulatory adjustments were the main reasons for the decrease in earnings. Higher operating expenses also reduced earnings.
Energy Marketing
National Fuel Resources, Inc. (“NFR”) comprises the Company’s Energy Marketing segment. NFR markets natural gas to industrial, wholesale, commercial, public authority and residential customers primarily in western and central New York and northwestern Pennsylvania, offering competitively priced natural gas to its customers.
The Energy Marketing segment’s earnings for the quarter ended March 31, 2012, of $3.3 million, or $0.04 per share decreased $3.0 million, or $0.03 per share, from the prior year’s second quarter earnings of $6.3 million or $0.07 per share. Earnings for the six months ended March 31, 2012, of $3.7 million, or $0.04 per share, decreased $3.5 million, or $0.05 per share, from the prior year’s six-month period. The decrease in earnings in both the current year’s second quarter and six-month period was mainly due to lower average margins and lower retail sales volumes. The decrease in margins was primarily driven by a lower benefit derived from the Energy Marketing segment’s contracts for storage capacity. The lower sales volumes were largely a result of warmer weather.
Corporate and All Other
The Corporate and All Other category includes the following active, wholly owned subsidiaries of the Company: National Fuel Gas Midstream Corporation (“Midstream”), formed to build, own and operate natural gas processing and pipeline gathering facilities in the Appalachian region; and Seneca’s Northeast division, which markets high quality hardwoods from Appalachian land holdings.
Earnings in the Corporate and All Other category for the quarter ended March 31, 2012, were $0.8 million, or $0.01 per share, a decrease of $31.2 million, or $0.37 per share, compared to the prior year’s second quarter earnings. The comparability of the results for the quarters ended March 31, 2012, and March 31, 2011, was impacted by a $31.4 million gain realized on the February 2011 Horizon Power, Inc. sale of its interest in certain entities that owned landfill gas electric generation assets.
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Excluding the item noted above, Operating Results in the Corporate and All Other category of $0.8 million, or $0.01 per share, for the quarter ended March 31, 2012, increased from Operating Results of $0.6 million, or less than $0.01 per share in the prior year’s second quarter. The increase in earnings is mainly due to higher earnings from Midstream’s pipeline gathering and natural gas processing operations and Seneca’s increased sales of standing timber.
Earnings in the Corporate and All Other category for the six months ended March 31, 2012, were $1.4 million, or $0.02 per share, a decrease of $29.2 million, or $0.34 per share, when compared to the earnings for the six months ended March 31, 2011. The comparability of the results for the six months ended March 31, 2012, and the prior year’s six-month period was impacted by the $31.4 million gain on the sale of landfill gas electric generation assets described above.
Excluding this item, Operating Results of $1.4 million, or $0.02 per share, for the six-month period ended March 31, 2012, compares to a loss of $0.8 million, or $0.02 per share, in the prior year’s six-month period. The increase in Operating Results is mainly due to higher earnings from Midstream’s pipeline gathering and natural gas processing operations and Seneca’s increased sales of standing timber.
EARNINGS GUIDANCE
The Company is updating its earnings guidance for fiscal 2012 to reflect actual results for the six months ended March 31, 2012, and a change in assumed natural gas prices for the second half of fiscal 2012. The revised GAAP earnings range is $2.30 to $2.45 per share. This includes forecast oil and gas production for fiscal 2012 for the Exploration and Production segment in the range between 81 and 90 Bcfe, hedges currently in place, and NYMEX equivalent flat commodity pricing on non-hedged volumes exclusive of basis differential of $2.25 per MMBtu for natural gas and $100 per Bbl for crude oil.
EARNINGS TELECONFERENCE
The Company will host a conference call on Friday, May 4, 2012, at 11 a.m. (Eastern Time) to discuss this announcement. There are two ways to access this call. For those with Internet access, visit the investor relations page at National Fuel’s website atinvestor.nationalfuelgas.com. For those without Internet access, access is also provided by dialing (toll-free) 1-866-831-6162, and using the passcode “73317573.” For those unable to listen to the live conference call, a replay will be available at approximately 2 p.m. (Eastern Time) at the same website link and by phone at (toll-free) 1-888-286-8010 using passcode “11631131.” Both the webcast and telephonic replay will be available until the close of business on Friday, May 11, 2012.
National Fuel is an integrated energy company with $5.8 billion in assets comprised of the following four operating segments: Exploration and Production, Pipeline and Storage, Utility, and Energy Marketing. Additional information about National Fuel is available at:www.nationalfuelgas.com or through its investor information service at 1-800-334-2188.
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Analyst Contact: | | Timothy J. Silverstein | | (716) 857-6987 |
Media Contact: | | Donna L. DeCarolis | | (716) 857-7872 |
Certain statements contained herein, including those regarding estimated future earnings, and statements that are identified by the use of the words “anticipates,” “estimates,” “expects,” “forecasts,” “intends,” “plans,” “predicts,” “projects,” “believes,” “seeks,” “will,” “may” and similar expressions, are “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties, which could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. The Company’s expectations, beliefs and projections contained herein are expressed in good faith and are believed to have a reasonable basis, but there can be no assurance that such expectations, beliefs or projections will result or be achieved or accomplished. In addition to other factors, the following are important factors that could cause actual results to differ materially from those discussed in the forward-looking statements: factors affecting the Company’s ability to successfully identify, drill for and produce economically viable natural gas and oil reserves, including among others geology, lease availability, title disputes, weather conditions, shortages, delays or unavailability of equipment and services required in drilling operations, insufficient gathering, processing and transportation capacity, the need to obtain governmental approvals and permits, and compliance with environmental laws and regulations; changes in laws, regulations or judicial interpretations to which the Company is subject, including those involving derivatives, taxes, safety, employment, climate change, other environmental matters, real property, and exploration and production activities such as hydraulic fracturing; changes in the price of natural gas or oil; uncertainty of oil and gas reserve estimates; significant differences between the Company’s projected and actual production levels for natural gas or oil; changes in demographic patterns and weather conditions; impairments under the SEC’s full cost ceiling test for natural gas and oil reserves; changes in the availability, price or accounting treatment of derivative financial instruments; governmental/regulatory actions, initiatives and proceedings, including those involving rate cases (which address, among other things, allowed rates of return, rate design and retained natural gas), environmental/safety requirements, affiliate relationships, industry structure, and franchise renewal; delays or changes in costs or plans with respect to Company projects or related projects of other companies, including difficulties or delays in obtaining necessary governmental approvals, permits or orders or in obtaining the cooperation of interconnecting facility operators; financial and economic conditions, including the availability of credit, and occurrences affecting the Company’s ability to obtain financing on acceptable terms for working capital, capital expenditures and other investments, including any downgrades in the Company’s credit ratings and changes in interest rates and other capital market conditions; changes in economic conditions, including global, national or regional recessions, and their effect on the demand for, and customers’ ability to pay for, the Company’s products and services; the creditworthiness or performance of the Company’s key suppliers, customers and counterparties; economic disruptions or uninsured losses resulting from major accidents, fires, severe weather, natural disasters, terrorist activities, acts of war, cyber attacks or pest infestation; changes in price differential between similar quantities of natural gas at different geographic locations, and the effect of such changes on the demand for pipeline transportation capacity to or from such locations; other changes in price differentials between similar quantities of oil or natural gas having different quality, heating value, geographic location or delivery date; significant differences between the Company’s projected and actual capital expenditures and operating expenses; changes in actuarial assumptions, the interest rate environment and the return on plan/trust assets related to the Company’s pension and other post-retirement benefits, which can affect future funding obligations and costs and plan liabilities; the cost and effects of legal and administrative claims against the Company or activist shareholder campaigns to effect changes at the Company; increasing health care costs and the resulting effect on health insurance premiums and on the obligation to provide other post-retirement benefits; or increasing costs of insurance, changes in coverage and the ability to obtain insurance. The Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date thereof.
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NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
QUARTER ENDED MARCH 31, 2012
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Exploration & | | | Pipeline & | | | | | | Energy | | | Corporate / | | | | |
| (Thousands of Dollars) | | Production | | | Storage | | | Utility | | | Marketing | | | All Other | | | Consolidated* | |
Second quarter 2011 GAAP earnings | | $ | 33,299 | | | $ | 10,955 | | | $ | 33,081 | | | $ | 6,299 | | | $ | 31,977 | | | $ | 115,611 | |
Items impacting comparability: | | | | | | | | | | | | | | | | | | | | | | | | |
Gain on sale of unconsolidated subsidiaries | | | | | | | | | | | | | | | | | | | (31,418 | ) | | | (31,418 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Second quarter 2011 operating results | | | 33,299 | | | | 10,955 | | | | 33,081 | | | | 6,299 | | | | 559 | | | | 84,193 | |
| | | | | | |
Drivers of operating results | | | | | | | | | | | | | | | | | | | | | | | | |
Higher (lower) Appalachian and West Coast crude oil prices | | | 6,151 | | | | | | | | | | | | | | | | | | | | 6,151 | |
Higher (lower) Appalachian and West Coast natural gas prices | | | (6,644 | ) | | | | | | | | | | | | | | | | | | | (6,644 | ) |
Higher (lower) Appalachian and West Coast natural gas production | | | 8,230 | | | | | | | | | | | | | | | | | | | | 8,230 | |
Higher (lower) Appalachian and West Coast crude oil production | | | 3,700 | | | | | | | | | | | | | | | | | | | | 3,700 | |
Lower Gulf Coast natural gas and crude oil revenues | | | (12,524 | ) | | | | | | | | | | | | | | | | | | | (12,524 | ) |
Lower (higher) lease operating expenses | | | (1,308 | ) | | | | | | | | | | | | | | | | | | | (1,308 | ) |
Lower (higher) depreciation / depletion | | | (1,530 | ) | | | (423 | ) | | | | | | | | | | | | | | | (1,953 | ) |
Higher (lower) processing plant revenues | | | 664 | | | | | | | | | | | | | | | | | | | | 664 | |
| | | | | | |
Higher (lower) transportation revenues | | | | | | | 4,964 | | | | | | | | | | | | | | | | 4,964 | |
Higher (lower) efficiency gas revenues | | | | | | | (2,887 | ) | | | | | | | | | | | | | | | (2,887 | ) |
Higher (lower) gathering and processing revenues | | | | | | | | | | | | | | | | | | | 242 | | | | 242 | |
Lower (higher) operating expenses | | | (838 | ) | | | 606 | | | | (433 | ) | | | | | | | | | | | (665 | ) |
Lower (higher) property, franchise and other taxes | | | 1,526 | | | | | | | | | | | | | | | | | | | | 1,526 | |
| | | | | | |
Warmer weather | | | | | | | | | | | (4,379 | ) | | | | | | | | | | | (4,379 | ) |
| | | | | | |
Higher (lower) income from unconsolidated subsidiaries | | | | | | | | | | | | | | | | | | | (361 | ) | | | (361 | ) |
| | | | | | |
Higher (lower) margins | | | | | | | | | | | | | | | (3,026 | ) | | | 519 | | | | (2,507 | ) |
| | | | | | |
Higher (lower) interest income | | | | | | | | | | | | | | | | | | | 2,390 | | | | 2,390 | |
(Higher) lower interest expense | | | (2,038 | ) | | | | | | | 398 | | | | | | | | (2,276 | ) | | | (3,916 | ) |
| | | | | | |
Lower (higher) income tax expense / effective tax rate | | | (337 | ) | | | | | | | | | | | | | | | (170 | ) | | | (507 | ) |
| | | | | | |
All other / rounding | | | 241 | | | | (374 | ) | | | (392 | ) | | | 37 | | | | (129 | ) | | | (617 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Second quarter 2012 operating results | | | 28,592 | | | | 12,841 | | | | 28,275 | | | | 3,310 | | | | 774 | | | | 73,792 | |
Items impacting comparability: | | | | | | | | | | | | | | | | | | | | | | | | |
Pennsylvania impact fee | | | (6,400 | ) | | | | | | | | | | | | | | | | | | | (6,400 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Second quarter 2012 GAAP earnings | | $ | 22,192 | | | $ | 12,841 | | | $ | 28,275 | | | $ | 3,310 | | | $ | 774 | | | $ | 67,392 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| * | Amounts do not reflect intercompany eliminations |
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NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
QUARTER ENDED MARCH 31, 2012
| | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| | | Exploration & | | | Pipeline & | | | | | | Energy | | | Corporate / | | | | |
| | | Production | | | Storage | | | Utility | | | Marketing | | | All Other | | | Consolidated* | |
Second quarter 2011 GAAP earnings | | $ | 0.40 | | | $ | 0.13 | | | $ | 0.40 | | | $ | 0.07 | | | $ | 0.38 | | | $ | 1.38 | |
Items impacting comparability: | | | | | | | | | | | | | | | | | | | | | | | | |
Gain on sale of unconsolidated subsidiaries | | | | | | | | | | | | | | | | | | | (0.38 | ) | | | (0.38 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Second quarter 2011 operating results | | | 0.40 | | | | 0.13 | | | | 0.40 | | | | 0.07 | | | | — | | | | 1.00 | |
| | | | | | |
Drivers of operating results | | | | | | | | | | | | | | | | | | | | | | | | |
Higher (lower) Appalachian and West Coast crude oil prices | | | 0.07 | | | | | | | | | | | | | | | | | | | | 0.07 | |
Higher (lower) Appalachian and West Coast natural gas prices | | | (0.08 | ) | | | | | | | | | | | | | | | | | | | (0.08 | ) |
Higher (lower) Appalachian and West Coast natural gas production | | | 0.10 | | | | | | | | | | | | | | | | | | | | 0.10 | |
Higher (lower) Appalachian and West Coast crude oil production | | | 0.04 | | | | | | | | | | | | | | | | | | | | 0.04 | |
Lower Gulf Coast natural gas and crude oil revenues | | | (0.15 | ) | | | | | | | | | | | | | | | | | | | (0.15 | ) |
Lower (higher) lease operating expenses | | | (0.02 | ) | | | | | | | | | | | | | | | | | | | (0.02 | ) |
Lower (higher) depreciation / depletion | | | (0.02 | ) | | | (0.01 | ) | | | | | | | | | | | | | | | (0.03 | ) |
Higher (lower) processing plant revenues | | | 0.01 | | | | | | | | | | | | | | | | | | | | 0.01 | |
| | | | | | |
Higher (lower) transportation revenues | | | | | | | 0.06 | | | | | | | | | | | | | | | | 0.06 | |
Higher (lower) efficiency gas revenues | | | | | | | (0.03 | ) | | | | | | | | | | | | | | | (0.03 | ) |
Higher (lower) gathering and processing revenues | | | | | | | | | | | | | | | | | | | — | | | | — | |
Lower (higher) operating expenses | | | (0.01 | ) | | | 0.01 | | | | (0.01 | ) | | | | | | | | | | | (0.01 | ) |
Lower (higher) property, franchise and other taxes | | | 0.02 | | | | | | | | | | | | | | | | | | | | 0.02 | |
| | | | | | |
Warmer weather | | | | | | | | | | | (0.05 | ) | | | | | | | | | | | (0.05 | ) |
| | | | | | |
Higher (lower) income from unconsolidated subsidiaries | | | | | | | | | | | | | | | | | | | — | | | | — | |
| | | | | | |
Higher (lower) margins | | | | | | | | | | | | | | | (0.04 | ) | | | 0.01 | | | | (0.03 | ) |
| | | | | | |
Higher (lower) interest income | | | | | | | | | | | | | | | | | | | 0.03 | | | | 0.03 | |
(Higher) lower interest expense | | | (0.02 | ) | | | | | | | — | | | | | | | | (0.03 | ) | | | (0.05 | ) |
| | | | | | |
Lower (higher) income tax expense / effective tax rate | | | | | | | | | | | | | | | | | | | — | | | | — | |
| | | | | | |
All other / rounding | | | 0.01 | | | | (0.01 | ) | | | — | | | | 0.01 | | | | — | | | | 0.01 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Second quarter 2012 operating results | | | 0.35 | | | | 0.15 | | | | 0.34 | | | | 0.04 | | | | 0.01 | | | | 0.89 | |
Items impacting comparability: | | | | | | | | | | | | | | | | | | | | | | | | |
Pennsylvania impact fee | | | (0.08 | ) | | | | | | | | | | | | | | | | | | | (0.08 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Second quarter 2012 GAAP earnings | | $ | 0.27 | | | $ | 0.15 | | | $ | 0.34 | | | $ | 0.04 | | | $ | 0.01 | | | $ | 0.81 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| * | Amounts do not reflect intercompany eliminations |
Page 10
NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
SIX MONTHS ENDED MARCH 31, 2012
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Exploration & | | | Pipeline & | | | | | | Energy | | | Corporate / | | | | |
| (Thousands of Dollars) | | Production | | | Storage | | | Utility | | | Marketing | | | All Other | | | Consolidated** | |
Six months ended March 31, 2011 GAAP earnings | | $ | 60,672 | | | $ | 19,533 | | | $ | 56,071 | | | $ | 7,231 | | | $ | 30,647 | | | $ | 174,154 | |
Items impacting comparability: | | | | | | | | | | | | | | | | | | | | | | | | |
Gain on sale of unconsolidated subsidiaries | | | | | | | | | | | | | | | | | | | (31,418 | ) | | | (31,418 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Six months ended March 31, 2011 operating results | | | 60,672 | | | | 19,533 | | | | 56,071 | | | | 7,231 | | | | (771 | ) | | | 142,736 | |
| | | | | | |
Drivers of operating results | | | | | | | | | | | | | | | | | | | | | | | | |
Higher (lower) crude oil prices | | | 13,827 | | | | | | | | | | | | | | | | | | | | 13,827 | |
Higher (lower) natural gas prices | | | (11,863 | ) | | | | | | | | | | | | | | | | | | | (11,863 | ) |
Higher (lower) natural gas production | | | 25,324 | | | | | | | | | | | | | | | | | | | | 25,324 | |
Higher (lower) crude oil production | | | 6,311 | | | | | | | | | | | | | | | | | | | | 6,311 | |
Lower Gulf Coast natural gas and crude oil revenues | | | (24,624 | ) | | | | | | | | | | | | | | | | | | | (24,624 | ) |
Lower (higher) lease operating expenses | | | (2,124 | ) | | | | | | | | | | | | | | | | | | | (2,124 | ) |
Lower (higher) depreciation / depletion | | | (6,611 | ) | | | (1,141 | ) | | | | | | | | | | | | | | | (7,752 | ) |
Higher (lower) processing plant revenues | | | 822 | | | | | | | | | | | | | | | | | | | | 822 | |
| | | | | | |
Higher (lower) transportation revenues | | | | | | | 7,741 | | | | | | | | | | | | | | | | 7,741 | |
Higher (lower) efficiency gas revenues | | | | | | | (3,665 | ) | | | | | | | | | | | | | | | (3,665 | ) |
Higher (lower) gathering and processing revenues | | | | | | | | | | | | | | | | | | | 1,260 | | | | 1,260 | |
Lower (higher) operating expenses | | | (2,242 | ) | | | | | | | (755 | ) | | | | | | | | | | | (2,997 | ) |
Lower (higher) property, franchise and other taxes | | | 1,711 | | | | | | | | | | | | | | | | | | | | 1,711 | |
| | | | | | |
Warmer weather in Pennsylvania | | | | | | | | | | | (6,646 | ) | | | | | | | | | | | (6,646 | ) |
Regulatory true-up adjustments | | | | | | | | | | | (873 | ) | | | | | | | | | | | (873 | ) |
| | | | | | |
Higher (lower) income from unconsolidated subsidiaries | | | | | | | | | | | | | | | | | | | 302 | | | | 302 | |
| | | | | | |
Higher (lower) margins | | | | | | | | | | | | | | | (3,465 | ) | | | 913 | | | | (2,552 | ) |
| | | | | | |
Higher AFUDC * | | | | | | | 612 | | | | | | | | | | | | | | | | 612 | |
Higher (lower) interest income | | | | | | | | | | | | | | | | | | | 1,884 | | | | 1,884 | |
Lower (higher) interest expense | | | (1,476 | ) | | | | | | | 772 | | | | | | | | (1,590 | ) | | | (2,294 | ) |
| | | | | | |
(Higher) lower income tax expense | | | (1,267 | ) | | | | | | | (652 | ) | | | | | | | (363 | ) | | | (2,282 | ) |
| | | | | | |
All other / rounding | | | 447 | | | | (279 | ) | | | (289 | ) | | | (27 | ) | | | (219 | ) | | | (367 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Six months ended March 31, 2012 operating results | | | 58,907 | | | | 22,801 | | | | 47,628 | | | | 3,739 | | | | 1,416 | | | | 134,491 | |
Items impacting comparability: | | | | | | | | | | | | | | | | | | | | | | | | |
Pennsylvania impact fee | | | (6,400 | ) | | | | | | | | | | | | | | | | | | | (6,400 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Six months ended March 31, 2012 GAAP earnings | | $ | 52,507 | | | $ | 22,801 | | | $ | 47,628 | | | $ | 3,739 | | | $ | 1,416 | | | $ | 128,091 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| * | AFUDC = Allowance for Funds Used During Construction |
| ** | Amounts do not reflect intercompany eliminations |
Page 11
NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
SIX MONTHS ENDED MARCH 31, 2012
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Exploration & | | | Pipeline & | | | | | | Energy | | | Corporate / | | | | |
| | | Production | | | Storage | | | Utility | | | Marketing | | | All Other | | | Consolidated** | |
Six months ended March 31, 2011 GAAP earnings | | $ | 0.73 | | | $ | 0.23 | | | $ | 0.67 | | | $ | 0.09 | | | $ | 0.36 | | | $ | 2.08 | |
Items impacting comparability: | | | | | | | | | | | | | | | | | | | | | | | | |
Gain on sale of unconsolidated subsidiaries | | | | | | | | | | | | | | | | | | | (0.38 | ) | | | (0.38 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Six months ended March 31, 2011 operating results | | | 0.73 | | | | 0.23 | | | | 0.67 | | | | 0.09 | | | | (0.02 | ) | | | 1.70 | |
| | | | | | |
Drivers of operating results | | | | | | | | | | | | | | | | | | | | | | | | |
Higher (lower) crude oil prices | | | 0.17 | | | | | | | | | | | | | | | | | | | | 0.17 | |
Higher (lower) natural gas prices | | | (0.14 | ) | | | | | | | | | | | | | | | | | | | (0.14 | ) |
Higher (lower) natural gas production | | | 0.30 | | | | | | | | | | | | | | | | | | | | 0.30 | |
Higher (lower) crude oil production | | | 0.08 | | | | | | | | | | | | | | | | | | | | 0.08 | |
Lower Gulf Coast natural gas and crude oil revenues | | | (0.29 | ) | | | | | | | | | | | | | | | | | | | (0.29 | ) |
Lower (higher) lease operating expenses | | | (0.03 | ) | | | | | | | | | | | | | | | | | | | (0.03 | ) |
Lower (higher) depreciation / depletion | | | (0.08 | ) | | | (0.01 | ) | | | | | | | | | | | | | | | (0.09 | ) |
Higher (lower) processing plant revenues | | | 0.01 | | | | | | | | | | | | | | | | | | | | 0.01 | |
| | | | | | |
Higher (lower) transportation revenues | | | | | | | 0.09 | | | | | | | | | | | | | | | | 0.09 | |
Higher (lower) efficiency gas revenues | | | | | | | (0.04 | ) | | | | | | | | | | | | | | | (0.04 | ) |
Higher (lower) gathering and processing revenues | | | | | | | | | | | | | | | | | | | 0.02 | | | | 0.02 | |
Lower (higher) operating expenses | | | (0.03 | ) | | | | | | | (0.01 | ) | | | | | | | | | | | (0.04 | ) |
Lower (higher) property, franchise and other taxes | | | 0.02 | | | | | | | | | | | | | | | | | | | | 0.02 | |
| | | | | | |
Warmer weather in Pennsylvania | | | | | | | | | | | (0.08 | ) | | | | | | | | | | | (0.08 | ) |
Regulatory true-up adjustments | | | | | | | | | | | (0.01 | ) | | | | | | | | | | | (0.01 | ) |
| | | | | | |
Higher (lower) income from unconsolidated subsidiaries | | | | | | | | | | | | | | | | | | | — | | | | — | |
| | | | | | |
Higher (lower) margins | | | | | | | | | | | | | | | (0.04 | ) | | | 0.01 | | | | (0.03 | ) |
| | | | | | |
Higher AFUDC * | | | | | | | 0.01 | | | | | | | | | | | | | | | | 0.01 | |
Higher (lower) interest income | | | | | | | | | | | | | | | | | | | 0.02 | | | | 0.02 | |
Lower (higher) interest expense | | | (0.02 | ) | | | | | | | 0.01 | | | | | | | | (0.02 | ) | | | (0.03 | ) |
| | | | | | |
(Higher) lower income tax expense | | | (0.02 | ) | | | | | | | (0.01 | ) | | | | | | | — | | | | (0.03 | ) |
| | | | | | |
All other / rounding | | | 0.01 | | | | (0.01 | ) | | | — | | | | (0.01 | ) | | | 0.01 | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Six months ended March 31, 2012 operating results | | | 0.71 | | | | 0.27 | | | | 0.57 | | | | 0.04 | | | | 0.02 | | | | 1.61 | |
Items impacting comparability: | | | | | | | | | | | | | | | | | | | | | | | | |
Pennsylvania impact fee | | | (0.08 | ) | | | | | | | | | | | | | | | | | | | (0.08 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Six months ended March 31, 2012 GAAP earnings | | $ | 0.63 | | | $ | 0.27 | | | $ | 0.57 | | | $ | 0.04 | | | $ | 0.02 | | | $ | 1.53 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| * | AFUDC = Allowance for Funds Used During Construction |
| ** | Amounts do not reflect intercompany eliminations |
Page 12
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| (Thousands of Dollars, except per share amounts) | | Three Months Ended
March 31,
(Unaudited) | | | Six Months Ended
March 31,
(Unaudited) | |
SUMMARY OF OPERATIONS | | 2012 | | | 2011 | | | 2012 | | | 2011 | |
Operating Revenues | | $ | 552,309 | | | $ | 660,881 | | | $ | 984,732 | | | $ | 1,111,829 | |
| | | | | | | | | | | | | | | | |
Operating Expenses: | | | | | | | | | | | | | | | | |
Purchased Gas | | | 208,537 | | | | 306,595 | | | | 340,730 | | | | 469,633 | |
Operation and Maintenance | | | 118,047 | | | | 116,721 | | | | 218,106 | | | | 214,171 | |
Property, Franchise and Other Taxes | | | 30,477 | | | | 23,798 | | | | 49,707 | | | | 43,534 | |
Depreciation, Depletion and Amortization | | | 63,151 | | | | 60,011 | | | | 125,698 | | | | 113,324 | |
| | | | | | | | | | | | | | | | |
| | | 420,212 | | | | 507,125 | | | | 734,241 | | | | 840,662 | |
| | | | |
Operating Income | | | 132,097 | | | | 153,756 | | | | 250,491 | | | | 271,167 | |
Other Income (Expense): | | | | | | | | | | | | | | | | |
Gain on Sale of Unconsolidated Subsidiaries | | | — | | | | 50,879 | | | | — | | | | 50,879 | |
Interest Income | | | 192 | | | | 68 | | | | 1,297 | | | | 951 | |
Other Income | | | 1,654 | | | | 2,424 | | | | 2,990 | | | | 2,317 | |
Interest Expense on Long-Term Debt | | | (20,425 | ) | | | (17,926 | ) | | | (39,066 | ) | | | (38,118 | ) |
Other Interest Expense | | | (1,253 | ) | | | (1,454 | ) | | | (2,023 | ) | | | (2,855 | ) |
| | | | | | | | | | | | | | | | |
Income Before Income Taxes | | | 112,265 | | | | 187,747 | | | | 213,689 | | | | 284,341 | |
Income Tax Expense | | | 44,873 | | | | 72,136 | | | | 85,598 | | | | 110,187 | |
| | | | | | | | | | | | | | | | |
Net Income Available for Common Stock | | $ | 67,392 | | | $ | 115,611 | | | $ | 128,091 | | | $ | 174,154 | |
| | | | | | | | | | | | | | | | |
Earnings Per Common Share: | | | | | | | | | | | | | | | | |
Basic | | $ | 0.81 | | | $ | 1.40 | | | $ | 1.54 | | | $ | 2.12 | |
| | | | | | | | | | | | | | | | |
Diluted | | $ | 0.81 | | | $ | 1.38 | | | $ | 1.53 | | | $ | 2.08 | |
| | | | | | | | | | | | | | | | |
Weighted Average Common Shares: | | | | | | | | | | | | | | | | |
Used in Basic Calculation | | | 83,107,884 | | | | 82,400,851 | | | | 82,988,750 | | | | 82,311,162 | |
| | | | | | | | | | | | | | | | |
Used in Diluted Calculation | | | 83,678,261 | | | | 83,673,977 | | | | 83,712,681 | | | | 83,561,775 | |
| | | | | | | | | | | | | | | | |
Page 13
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
| | | | | | | | |
(Thousands of Dollars) | | March 31,
2012 | | | September 30,
2011 | |
ASSETS | | | | | | | | |
Property, Plant and Equipment | | $ | 6,180,827 | | | $ | 5,646,918 | |
Less - Accumulated Depreciation, Depletion and Amortization | | | 1,750,636 | | | | 1,646,394 | |
| | | | | | | | |
Net Property, Plant and Equipment | | | 4,430,191 | | | | 4,000,524 | |
| | | | | | | | |
Current Assets: | | | | | | | | |
Cash and Temporary Cash Investments | | | 192,243 | | | | 80,428 | |
Hedging Collateral Deposits | | | 18,872 | | | | 19,701 | |
Receivables - Net | | | 168,757 | | | | 131,885 | |
Unbilled Utility Revenue | | | 31,318 | | | | 17,284 | |
Gas Stored Underground | | | 16,195 | | | | 54,325 | |
Materials and Supplies - at average cost | | | 28,395 | | | | 27,932 | |
Other Current Assets | | | 40,354 | | | | 38,334 | |
Deferred Income Taxes | | | 20,281 | | | | 15,423 | |
| | | | | | | | |
Total Current Assets | | | 516,415 | | | | 385,312 | |
| | | | | | | | |
Other Assets: | | | | | | | | |
Recoverable Future Taxes | | | 146,561 | | | | 144,377 | |
Unamortized Debt Expense | | | 14,552 | | | | 10,571 | |
Other Regulatory Assets | | | 504,399 | | | | 510,986 | |
Deferred Charges | | | 7,993 | | | | 5,552 | |
Other Investments | | | 85,555 | | | | 79,365 | |
Goodwill | | | 5,476 | | | | 5,476 | |
Fair Value of Derivative Financial Instruments | | | 121,760 | | | | 76,085 | |
Other | | | 2,594 | | | | 2,836 | |
| | | | | | | | |
Total Other Assets | | | 888,890 | | | | 835,248 | |
| | | | | | | | |
Total Assets | | $ | 5,835,496 | | | $ | 5,221,084 | |
| | | | | | | | |
CAPITALIZATION AND LIABILITIES | | | | | | | | |
Capitalization: | | | | | | | | |
Comprehensive Shareholders’ Equity | | | | | | | | |
Common Stock, $1 Par Value Authorized - 200,000,000 Shares; Issued and Outstanding - 83,173,850 Shares and 82,812,677 Shares, Respectively | | $ | 83,174 | | | $ | 82,813 | |
Paid in Capital | | | 660,495 | | | | 650,749 | |
Earnings Reinvested in the Business | | | 1,275,107 | | | | 1,206,022 | |
| | | | | | | | |
Total Common Shareholders' Equity Before Items of Other Comprehensive Loss | | | 2,018,776 | | | | 1,939,584 | |
Accumulated Other Comprehensive Loss | | | (51,889 | ) | | | (47,699 | ) |
| | | | | | | | |
Total Comprehensive Shareholders’ Equity | | | 1,966,887 | | | | 1,891,885 | |
Long-Term Debt, Net of Current Portion | | | 1,149,000 | | | | 899,000 | |
| | | | | | | | |
Total Capitalization | | | 3,115,887 | | | | 2,790,885 | |
| | | | | | | | |
Current and Accrued Liabilities: | | | | | | | | |
Notes Payable to Banks and Commercial Paper | | | 20,000 | | | | 40,000 | |
Current Portion of Long-Term Debt | | | 250,000 | | | | 150,000 | |
Accounts Payable | | | 98,053 | | | | 126,709 | |
Amounts Payable to Customers | | | 17,327 | | | | 15,519 | |
Dividends Payable | | | 29,527 | | | | 29,399 | |
Interest Payable on Long-Term Debt | | | 29,491 | | | | 25,512 | |
Customer Advances | | | 204 | | | | 19,643 | |
Customer Security Deposits | | | 17,021 | | | | 17,321 | |
Other Accruals and Current Liabilities | | | 197,952 | | | | 94,787 | |
Fair Value of Derivative Financial Instruments | | | 66,887 | | | | 9,728 | |
| | | | | | | | |
Total Current and Accrued Liabilities | | | 726,462 | | | | 528,618 | |
| | | | | | | | |
Deferred Credits: | | | | | | | | |
Deferred Income Taxes | | | 1,040,789 | | | | 955,384 | |
Taxes Refundable to Customers | | | 65,550 | | | | 65,543 | |
Unamortized Investment Tax Credit | | | 2,296 | | | | 2,586 | |
Cost of Removal Regulatory Liability | | | 146,771 | | | | 135,940 | |
Other Regulatory Liabilities | | | 37,327 | | | | 31,026 | |
Pension and Other Post-Retirement Liabilities | | | 472,717 | | | | 481,520 | |
Asset Retirement Obligations | | | 77,230 | | | | 75,731 | |
Other Deferred Credits | | | 150,467 | | | | 153,851 | |
| | | | | | | | |
Total Deferred Credits | | | 1,993,147 | | | | 1,901,581 | |
| | | | | | | | |
Commitments and Contingencies | | | — | | | | — | |
| | | | | | | | |
Total Capitalization and Liabilities | | $ | 5,835,496 | | | $ | 5,221,084 | |
| | | | | | | | |
Page 14
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| | | | | | | | |
| | | Six Months Ended March 31, | |
(Thousands of Dollars) | | 2012 | | | 2011 | |
Operating Activities: | | | | | | | | |
Net Income Available for Common Stock | | $ | 128,091 | | | $ | 174,154 | |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | | | | | | | | |
Gain on Sale of Unconsolidated Subsidiaries | | | — | | | | (50,879 | ) |
Depreciation, Depletion and Amortization | | | 125,698 | | | | 113,324 | |
Deferred Income Taxes | | | 81,696 | | | | 106,510 | |
Excess Tax Benefits Associated with Stock-Based Compensation Awards | | | (1,076 | ) | | | — | |
Other | | | 4,269 | | | | 5,703 | |
Change in: | | | | | | | | |
Hedging Collateral Deposits | | | 829 | | | | (50,692 | ) |
Receivables and Unbilled Utility Revenue | | | (50,906 | ) | | | (123,393 | ) |
Gas Stored Underground and Materials and Supplies | | | 37,156 | | | | 30,144 | |
Prepayments and Other Current Assets | | | (943 | ) | | | 57,447 | |
Accounts Payable | | | (28,656 | ) | | | 33,234 | |
Amounts Payable to Customers | | | 1,808 | | | | (12,634 | ) |
Customer Advances | | | (19,439 | ) | | | (24,938 | ) |
Customer Security Deposits | | | (300 | ) | | | (256 | ) |
Other Accruals and Current Liabilities | | | 65,039 | | | | 93,473 | |
Other Assets | | | (48,692 | ) | | | 15,239 | |
Other Liabilities | | | 44,323 | | | | (23,214 | ) |
| | | | | | | | |
Net Cash Provided by Operating Activities | | $ | 338,897 | | | $ | 343,222 | |
| | | | | | | | |
Investing Activities: | | | | | | | | |
Capital Expenditures | | $ | (499,607 | ) | | $ | (392,338 | ) |
Net Proceeds from Sale of Unconsolidated Subsidiaries | | | — | | | | 59,365 | |
Other | | | (789 | ) | | | (3,097 | ) |
| | | | | | | | |
Net Cash Used in Investing Activities | | $ | (500,396 | ) | | $ | (336,070 | ) |
| | | | | | | | |
Financing Activities: | | | | | | | | |
Changes in Notes Payable to Banks and Commercial Paper | | $ | (20,000 | ) | | $ | — | |
Excess Tax Benefits Associated with Stock-Based Compensation Awards | | | 1,076 | | | | — | |
Reduction of Long-Term Debt | | | (150,000 | ) | | | (200,000 | ) |
Net Proceeds From Issuance of Long-Term Debt | | | 496,085 | | | | — | |
Dividends Paid on Common Stock | | | (58,877 | ) | | | (56,723 | ) |
Net Proceeds From Issuance (Repurchase) of Common Stock | | | 5,030 | | | | (2,833 | ) |
| | | | | | | | |
Net Cash Provided By (Used in) Financing Activities | | $ | 273,314 | | | $ | (259,556 | ) |
| | | | | | | | |
Net Increase (Decrease) in Cash and Temporary Cash Investments | | | 111,815 | | | | (252,404 | ) |
Cash and Temporary Cash Investments at Beginning of Period | | | 80,428 | | | | 397,171 | |
| | | | | | | | |
Cash and Temporary Cash Investments at March 31 | | $ | 192,243 | | | $ | 144,767 | |
| | | | | | | | |
Page 15
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
| | | 00000000 | | | | 00000000 | | | | 00000000 | | | | 00000000 | | | | 00000000 | | | | 00000000 | |
| (Thousands of Dollars, except per share amounts) | | Three Months Ended
March 31, | | | Six Months Ended
March 31, | |
EXPLORATION AND PRODUCTION SEGMENT | | 2012 | | | 2011 | | | Variance | | | 2012 | | | 2011 | | | Variance | |
Total Operating Revenues | | $ | 136,926 | | | $ | 137,430 | | | $ | (504 | ) | | $ | 272,899 | | | $ | 257,598 | | | $ | 15,301 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Operating Expenses: | | | | | | | | | | | | | | | | | | | | | | | | |
Operation and Maintenance: | | | | | | | | | | | | | | | | | | | | | | | | |
General and Administrative Expense | | | 14,441 | | | | 12,798 | | | | 1,643 | | | | 28,301 | | | | 23,988 | | | | 4,313 | |
Lease Operating Expense | | | 20,978 | | | | 18,966 | | | | 2,012 | | | | 39,583 | | | | 36,315 | | | | 3,268 | |
All Other Operation and Maintenance Expense | | | 1,542 | | | | 1,900 | | | | (358 | ) | | | 3,074 | | | | 3,942 | | | | (868 | ) |
Property, Franchise and Other Taxes | | | 12,188 | | | | 4,690 | | | | 7,498 | | | | 14,734 | | | | 7,520 | | | | 7,214 | |
Depreciation, Depletion and Amortization | | | 42,339 | | | | 39,984 | | | | 2,355 | | | | 83,822 | | | | 73,652 | | | | 10,170 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 91,488 | | | | 78,338 | | | | 13,150 | | | | 169,514 | | | | 145,417 | | | | 24,097 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Operating Income | | | 45,438 | | | | 59,092 | | | | (13,654 | ) | | | 103,385 | | | | 112,181 | | | | (8,796 | ) |
Other Income (Expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Interest Income | | | 320 | | | | (51 | ) | | | 371 | | | | 668 | | | | (1 | ) | | | 669 | |
Other Interest Expense | | | (7,189 | ) | | | (3,906 | ) | | | (3,283 | ) | | | (12,493 | ) | | | (10,008 | ) | | | (2,485 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Income Before Income Taxes | | | 38,569 | | | | 55,135 | | | | (16,566 | ) | | | 91,560 | | | | 102,172 | | | | (10,612 | ) |
Income Tax Expense | | | 16,377 | | | | 21,836 | | | | (5,459 | ) | | | 39,053 | | | | 41,500 | | | | (2,447 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Income | | $ | 22,192 | | | $ | 33,299 | | | $ | (11,107 | ) | | $ | 52,507 | | | $ | 60,672 | | | $ | (8,165 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Income Per Share (Diluted) | | $ | 0.27 | | | $ | 0.40 | | | $ | (0.13 | ) | | $ | 0.63 | | | $ | 0.73 | | | $ | (0.10 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| | | Three Months Ended
March 31, | | | Six Months Ended
March 31, | |
PIPELINE AND STORAGE SEGMENT | | 2012 | | | 2011 | | | Variance | | | 2012 | | | 2011 | | | Variance | |
Revenues from External Customers | | $ | 42,120 | | | $ | 39,669 | | | $ | 2,451 | | | $ | 77,345 | | | $ | 73,182 | | | $ | 4,163 | |
Intersegment Revenues | | | 21,294 | | | | 20,632 | | | | 662 | | | | 42,359 | | | | 40,514 | | | | 1,845 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Operating Revenues | | | 63,414 | | | | 60,301 | | | | 3,113 | | | | 119,704 | | | | 113,696 | | | | 6,008 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Operating Expenses: | | | | | | | | | | | | | | | | | | | | | | | | |
Purchased Gas | | | 127 | | | | 8 | | | | 119 | | | | 128 | | | | (25 | ) | | | 153 | |
Operation and Maintenance | | | 20,529 | | | | 21,462 | | | | (933 | ) | | | 40,042 | | | | 39,983 | | | | 59 | |
Property, Franchise and Other Taxes | | | 5,505 | | | | 5,397 | | | | 108 | | | | 10,913 | | | | 10,608 | | | | 305 | |
Depreciation, Depletion and Amortization | | | 9,892 | | | | 9,242 | | | | 650 | | | | 19,983 | | | | 18,229 | | | | 1,754 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 36,053 | | | | 36,109 | | | | (56 | ) | | | 71,066 | | | | 68,795 | | | | 2,271 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Operating Income | | | 27,361 | | | | 24,192 | | | | 3,169 | | | | 48,638 | | | | 44,901 | | | | 3,737 | |
Other Income (Expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Interest Income | | | 34 | | | | 103 | | | | (69 | ) | | | 90 | | | | 178 | | | | (88 | ) |
Other Income | | | 481 | | | | 449 | | | | 32 | | | | 1,507 | | | | 715 | | | | 792 | |
Other Interest Expense | | | (6,566 | ) | | | (6,505 | ) | | | (61 | ) | | | (12,899 | ) | | | (13,082 | ) | | | 183 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Income Before Income Taxes | | | 21,310 | | | | 18,239 | | | | 3,071 | | | | 37,336 | | | | 32,712 | | | | 4,624 | |
Income Tax Expense | | | 8,469 | | | | 7,284 | | | | 1,185 | | | | 14,535 | | | | 13,179 | | | | 1,356 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Income | | $ | 12,841 | | | $ | 10,955 | | | $ | 1,886 | | | $ | 22,801 | | | $ | 19,533 | | | $ | 3,268 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Income Per Share (Diluted) | | $ | 0.15 | | | $ | 0.13 | | | $ | 0.02 | | | $ | 0.27 | | | $ | 0.23 | | | $ | 0.04 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Page 16
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
| | | 000000000000 | | | | 000000000000 | | | | 000000000000 | | | | 000000000000 | | | | 000000000000 | | | | 000000000000 | |
| (Thousands of Dollars, except per share amounts) | | Three Months Ended
March 31, | | | Six Months Ended
March 31, | |
UTILITY SEGMENT | | 2012 | | | 2011 | | | Variance | | | 2012 | | | 2011 | | | Variance | |
Revenues from External Customers | | $ | 296,786 | | | $ | 361,745 | | | $ | (64,959 | ) | | $ | 505,596 | | | $ | 604,587 | | | $ | (98,991 | ) |
Intersegment Revenues | | | 5,551 | | | | 6,635 | | | | (1,084 | ) | | | 9,940 | | | | 11,205 | | | | (1,265 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Operating Revenues | | | 302,337 | | | | 368,380 | | | | (66,043 | ) | | | 515,536 | | | | 615,792 | | | | (100,256 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Operating Expenses: | | | | | | | | | | | | | | | | | | | | | | | | |
Purchased Gas | | | 166,845 | | | | 224,274 | | | | (57,429 | ) | | | 275,250 | | | | 361,049 | | | | (85,799 | ) |
Operation and Maintenance | | | 58,649 | | | | 58,808 | | | | (159 | ) | | | 103,982 | | | | 104,025 | | | | (43 | ) |
Property, Franchise and Other Taxes | | | 12,024 | | | | 12,960 | | | | (936 | ) | | | 22,571 | | | | 23,901 | | | | (1,330 | ) |
Depreciation, Depletion and Amortization | | | 10,505 | | | | 10,382 | | | | 123 | | | | 21,066 | | | | 20,623 | | | | 443 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 248,023 | | | | 306,424 | | | | (58,401 | ) | | | 422,869 | | | | 509,598 | | | | (86,729 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Operating Income | | | 54,314 | | | | 61,956 | | | | (7,642 | ) | | | 92,667 | | | | 106,194 | | | | (13,527 | ) |
Other Income (Expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Interest Income | | | 75 | | | | 3 | | | | 72 | | | | 721 | | | | 447 | | | | 274 | |
Other Income | | | 435 | | | | 279 | | | | 156 | | | | 677 | | | | 596 | | | | 81 | |
Other Interest Expense | | | (8,240 | ) | | | (8,852 | ) | | | 612 | | | | (16,400 | ) | | | (17,589 | ) | | | 1,189 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Income Before Income Taxes | | | 46,584 | | | | 53,386 | | | | (6,802 | ) | | | 77,665 | | | | 89,648 | | | | (11,983 | ) |
Income Tax Expense | | | 18,309 | | | | 20,305 | | | | (1,996 | ) | | | 30,037 | | | | 33,577 | | | | (3,540 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Income | | $ | 28,275 | | | $ | 33,081 | | | $ | (4,806 | ) | | $ | 47,628 | | | $ | 56,071 | | | $ | (8,443 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Income Per Share (Diluted) | | $ | 0.34 | | | $ | 0.40 | | | $ | (0.06 | ) | | $ | 0.57 | | | $ | 0.67 | | | $ | (0.10 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| | | Three Months Ended
March 31, | | | Six Months Ended
March 31, | |
ENERGY MARKETING SEGMENT | | 2012 | | | 2011 | | | Variance | | | 2012 | | | 2011 | | | Variance | |
Revenues from External Customers | | $ | 75,223 | | | $ | 121,321 | | | $ | (46,098 | ) | | $ | 126,445 | | | $ | 174,973 | | | $ | (48,528 | ) |
Intersegment Revenues | | | 269 | | | | — | | | | 269 | | | | 556 | | | | — | | | | 556 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Operating Revenues | | | 75,492 | | | | 121,321 | | | | (45,829 | ) | | | 127,001 | | | | 174,973 | | | | (47,972 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Operating Expenses: | | | | | | | | | | | | | | | | | | | | | | | | |
Purchased Gas | | | 68,271 | | | | 109,445 | | | | (41,174 | ) | | | 117,361 | | | | 160,003 | | | | (42,642 | ) |
Operation and Maintenance | | | 1,826 | | | | 1,582 | | | | 244 | | | | 3,572 | | | | 3,140 | | | | 432 | |
Property, Franchise and Other Taxes | | | 14 | | | | 18 | | | | (4 | ) | | | 23 | | | | 26 | | | | (3 | ) |
Depreciation, Depletion and Amortization | | | 23 | | | | 9 | | | | 14 | | | | 47 | | | | 18 | | | | 29 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 70,134 | | | | 111,054 | | | | (40,920 | ) | | | 121,003 | | | | 163,187 | | | | (42,184 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Operating Income | | | 5,358 | | | | 10,267 | | | | (4,909 | ) | | | 5,998 | | | | 11,786 | | | | (5,788 | ) |
Other Income (Expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Interest Income | | | 33 | | | | 26 | | | | 7 | | | | 69 | | | | 35 | | | | 34 | |
Other Income | | | 27 | | | | 25 | | | | 2 | | | | 62 | | | | 33 | | | | 29 | |
Other Interest Expense | | | (4 | ) | | | (5 | ) | | | 1 | | | | (8 | ) | | | (10 | ) | | | 2 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Income Before Income Taxes | | | 5,414 | | | | 10,313 | | | | (4,899 | ) | | | 6,121 | | | | 11,844 | | | | (5,723 | ) |
Income Tax Expense | | | 2,104 | | | | 4,014 | | | | (1,910 | ) | | | 2,382 | | | | 4,613 | | | | (2,231 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Income | | $ | 3,310 | | | $ | 6,299 | | | $ | (2,989 | ) | | $ | 3,739 | | | $ | 7,231 | | | $ | (3,492 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Income Per Share (Diluted) | | $ | 0.04 | | | $ | 0.07 | | | $ | (0.03 | ) | | $ | 0.04 | | | $ | 0.09 | | | $ | (0.05 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Page 17
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
| | | 00000000 | | | | 00000000 | | | | 00000000 | | | | 00000000 | | | | 00000000 | | | | 00000000 | |
| (Thousands of Dollars, except per share amounts) | | Three Months Ended
March 31, | | | Six Months Ended
March 31, | |
ALL OTHER | | 2012 | | | 2011 | | | Variance | | | 2012 | | | 2011 | | | Variance | |
Revenues from External Customers | | $ | 1,023 | | | $ | 472 | | | $ | 551 | | | $ | 1,960 | | | $ | 1,021 | | | $ | 939 | |
Intersegment Revenues | | | 3,159 | | | | 2,538 | | | | 621 | | | | 6,520 | | | | 4,216 | | | | 2,304 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Operating Revenues | | | 4,182 | | | | 3,010 | | | | 1,172 | | | | 8,480 | | | | 5,237 | | | | 3,243 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Operating Expenses: | | | | | | | | | | | | | | | | | | | | | | | | |
Purchased Gas | | | — | | | | — | | | | — | | | | — | | | | 49 | | | | (49 | ) |
Operation and Maintenance | | | 969 | | | | 1,129 | | | | (160 | ) | | | 1,918 | | | | 2,187 | | | | (269 | ) |
Property, Franchise and Other Taxes | | | 193 | | | | 183 | | | | 10 | | | | 364 | | | | 400 | | | | (36 | ) |
Depreciation, Depletion and Amortization | | | 198 | | | | 207 | | | | (9 | ) | | | 393 | | | | 427 | | | | (34 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 1,360 | | | | 1,519 | | | | (159 | ) | | | 2,675 | | | | 3,063 | | | | (388 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Operating Income | | | 2,822 | | | | 1,491 | | | | 1,331 | | | | 5,805 | | | | 2,174 | | | | 3,631 | |
Other Income (Expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Gain on Sale of Unconsolidated Subsidiaries | | | — | | | | 50,879 | | | | (50,879 | ) | | | — | | | | 50,879 | | | | (50,879 | ) |
Interest Income | | | 37 | | | | 85 | | | | (48 | ) | | | 99 | | | | 150 | | | | (51 | ) |
Other Income | | | (74 | ) | | | 509 | | | | (583 | ) | | | (149 | ) | | | (586 | ) | | | 437 | |
Other Interest Expense | | | (408 | ) | | | (550 | ) | | | 142 | | | | (862 | ) | | | (1,095 | ) | | | 233 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Income Before Income Taxes | | | 2,377 | | | | 52,414 | | | | (50,037 | ) | | | 4,893 | | | | 51,522 | | | | (46,629 | ) |
Income Tax Expense | | | 1,038 | | | | 20,233 | | | | (19,195 | ) | | | 2,150 | | | | 19,916 | | | | (17,766 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Income | | $ | 1,339 | | | $ | 32,181 | | | $ | (30,842 | ) | | $ | 2,743 | | | $ | 31,606 | | | $ | (28,863 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Income Per Share (Diluted) | | $ | 0.02 | | | $ | 0.38 | | | $ | (0.36 | ) | | $ | 0.03 | | | $ | 0.37 | | | $ | (0.34 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Page 18
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
| | | 1234567890 | | | | 1234567890 | | | | 1234567890 | | | | 1234567890 | | | | 1234567890 | | | | 1234567890 | |
| (Thousands of Dollars, except per share amounts) | | Three Months Ended
March 31, | | | Six Months Ended
March 31, | |
CORPORATE | | 2012 | | | 2011 | | | Variance | | | 2012 | | | 2011 | | | Variance | |
Revenues from External Customers | | $ | 231 | | | $ | 244 | | | $ | (13 | ) | | $ | 487 | | | $ | 468 | | | $ | 19 | |
Intersegment Revenues | | | 1,028 | | | | 899 | | | | 129 | | | | 2,056 | | | | 1,927 | | | | 129 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Operating Revenues | | | 1,259 | | | | 1,143 | | | | 116 | | | | 2,543 | | | | 2,395 | | | | 148 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Operating Expenses: | | | | | | | | | | | | | | | | | | | | | | | | |
Operation and Maintenance | | | 3,708 | | | | 3,648 | | | | 60 | | | | 7,056 | | | | 7,010 | | | | 46 | |
Property, Franchise and Other Taxes | | | 553 | | | | 550 | | | | 3 | | | | 1,102 | | | | 1,079 | | | | 23 | |
Depreciation, Depletion and Amortization | | | 194 | | | | 187 | | | | 7 | | | | 387 | | | | 375 | | | | 12 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 4,455 | | | | 4,385 | | | | 70 | | | | 8,545 | | | | 8,464 | | | | 81 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Operating Loss | | | (3,196 | ) | | | (3,242 | ) | | | 46 | | | | (6,002 | ) | | | (6,069 | ) | | | 67 | |
Other Income (Expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Interest Income | | | 22,463 | | | | 18,739 | | | | 3,724 | | | | 42,769 | | | | 39,820 | | | | 2,949 | |
Other Income | | | 785 | | | | 1,162 | | | | (377 | ) | | | 893 | | | | 1,559 | | | | (666 | ) |
Interest Expense on Long-Term Debt | | | (20,425 | ) | | | (17,926 | ) | | | (2,499 | ) | | | (39,066 | ) | | | (38,118 | ) | | | (948 | ) |
Other Interest Expense | | | (1,616 | ) | | | (473 | ) | | | (1,143 | ) | | | (2,480 | ) | | | (749 | ) | | | (1,731 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Loss Before Income Taxes | | | (1,989 | ) | | | (1,740 | ) | | | (249 | ) | | | (3,886 | ) | | | (3,557 | ) | | | (329 | ) |
Income Tax Benefit | | | (1,424 | ) | | | (1,536 | ) | | | 112 | | | | (2,559 | ) | | | (2,598 | ) | | | 39 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Loss | | $ | (565 | ) | | $ | (204 | ) | | $ | (361 | ) | | $ | (1,327 | ) | | $ | (959 | ) | | $ | (368 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Loss Per Share (Diluted) | | $ | (0.01 | ) | | $ | — | | | $ | (0.01 | ) | | $ | (0.01 | ) | | $ | (0.01 | ) | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 1234567890 | | | | 1234567890 | | | | 1234567890 | | | | 1234567890 | | | | 1234567890 | | | | 1234567890 | |
| | | Three Months Ended
March 31, | | | Six Months Ended
March 31, | |
INTERSEGMENT ELIMINATIONS | | 2012 | | | 2011 | | | Variance | | | 2012 | | | 2011 | | | Variance | |
Intersegment Revenues | | $ | (31,301 | ) | | $ | (30,704 | ) | | $ | (597 | ) | | $ | (61,431 | ) | | $ | (57,862 | ) | | $ | (3,569 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Operating Expenses: | | | | | | | | | | | | | | | | | | | | | | | | |
Purchased Gas | | | (26,706 | ) | | | (27,132 | ) | | | 426 | | | | (52,009 | ) | | | (51,443 | ) | | | (566 | ) |
Operation and Maintenance | | | (4,595 | ) | | | (3,572 | ) | | | (1,023 | ) | | | (9,422 | ) | | | (6,419 | ) | | | (3,003 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | (31,301 | ) | | | (30,704 | ) | | | (597 | ) | | | (61,431 | ) | | | (57,862 | ) | | | (3,569 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Operating Income | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Other Income (Expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Interest Income | | | (22,770 | ) | | | (18,837 | ) | | | (3,933 | ) | | | (43,119 | ) | | | (39,678 | ) | | | (3,441 | ) |
Other Interest Expense | | | 22,770 | | | | 18,837 | | | | 3,933 | | | | 43,119 | | | | 39,678 | | | | 3,441 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Income | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Income Per Share (Diluted) | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Page 19
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT INFORMATION (Continued)
(Thousands of Dollars)
| | | 0000000000 | | | | 0000000000 | | | | 0000000000 | | | | 0000000000 | | | | 0000000000 | | | | 0000000000 | |
| | | Three Months Ended
March 31,
(Unaudited) | | | Six Months Ended
March 31,
(Unaudited) | |
| | | 2012 | | | 2011 | | | Increase
(Decrease) | | | 2012 | | | 2011 | | | Increase
(Decrease) | |
Capital Expenditures: | | | | | | | | | | | | | | | | | | | | | | | | |
Exploration and Production | | $ | 217,254 | (1)(2) | | $ | 135,364 | (3)(4) | | $ | 81,890 | | | $ | 409,131 | (1)(2) | | $ | 315,194 | (3)(4) | | $ | 93,937 | |
Pipeline and Storage | | | 19,031 | (1)(2) | | | 30,279 | (3) | | | (11,248 | ) | | | 63,221 | (1)(2) | | | 39,498 | (3) | | | 23,723 | |
Utility | | | 14,076 | | | | 14,514 | | | | (438 | ) | | | 25,340 | | | | 25,435 | | | | (95 | ) |
Energy Marketing | | | 126 | | | | 174 | | | | (48 | ) | | | 266 | | | | 261 | | | | 5 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Reportable Segments | | | 250,487 | | | | 180,331 | | | | 70,156 | | | | 497,958 | | | | 380,388 | | | | 117,570 | |
All Other | | | 12,233 | (1)(2) | | | 1,440 | | | | 10,793 | | | | 43,637 | (1)(2) | | | 2,269 | | | | 41,368 | |
Corporate | | | 94 | | | | 4 | | | | 90 | | | | 170 | | | | 15 | | | | 155 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Capital Expenditures | | $ | 262,814 | | | $ | 181,775 | | | $ | 81,039 | | | $ | 541,765 | | | $ | 382,672 | | | $ | 159,093 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| (1) | Capital expenditures for the quarter and six months ended March 31, 2012 include $93.6 million of accrued capital expenditures in the Exploration and Production segment, the majority of which was in the Appalachian region, $12.9 million of accrued capital expenditures in the Pipeline and Storage segment, and $7.9 million of accrued capital expenditures in the All Other category. These amounts have been excluded from the Consolidated Statement of Cash Flows at March 31, 2012 since they represent non-cash investing activities at that date. |
| (2) | Capital expenditures for the six months ended March 31, 2012 exclude $63.5 million of capital expenditures in the Exploration and Production segment, the majority of which was in the Appalachian region, $7.3 million of capital expenditures in the Pipeline and Storage segment, and $1.4 million of capital expenditures in the All Other category. These amounts were accrued at September 30, 2011 and paid during the six months ended March 31, 2012. These amounts were excluded from the Consolidated Statements of Cash Flows at September 30, 2011 since they represented non-cash investing activities at that date. These amounts have been included in the Consolidated Statement of Cash Flows at March 31, 2012. |
| (3) | Capital expenditures for the quarter and six months ended March 31, 2011 include $43.9 million of accrued capital expenditures in the Exploration and Production segment, the majority of which was in the Appalachian region, and $2.0 million of accrued capital expenditures in the Pipeline and Storage segment. These amounts were excluded from the Consolidated Statement of Cash Flows at March 31, 2011 since they represented non-cash investing activities at that date. |
| (4) | Capital expenditures for the Exploration and Production segment for the six months ended March 31, 2011 exclude $55.5 million of capital expenditures, the majority of which was in the Appalachian region. This amount was accrued at September 30, 2010 and paid during the six months ended March 31, 2011. This amount was excluded from the Consolidated Statements of Cash Flows at September 30, 2010 since it represented a non-cash investing activity at that date. This amount has been included in the Consolidated Statement of Cash Flows at March 31, 2011. |
DEGREE DAYS
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | Percent Colder (Warmer) Than: | |
| | | Normal | | | 2012 | | | 2011 | | | Normal (1) | | | Last Year (1) | |
Three Months Ended March 31 | | | | | | | | | | | | | | | | | | | | |
Buffalo, NY | | | 3,364 | | | | 2,572 | | | | 3,494 | | | | (23.5 | ) | | | (26.4 | ) |
Erie, PA | | | 3,176 | | | | 2,403 | | | | 3,312 | | | | (24.3 | ) | | | (27.4 | ) |
| | | | | |
Six Months Ended March 31 | | | | | | | | | | | | | | | | | | | | |
Buffalo, NY | | | 5,624 | | | | 4,420 | | | | 5,826 | | | | (21.4 | ) | | | (24.1 | ) |
Erie, PA | | | 5,257 | | | | 4,124 | | | | 5,472 | | | | (21.6 | ) | | | (24.6 | ) |
| (1) | Percents compare actual 2012 degree days to normal degree days and actual 2012 degree days to actual 2011 degree days. |
Page 20
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
EXPLORATION AND PRODUCTION INFORMATION
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended
March 31, | | | Six Months Ended
March 31, | |
| | | 2012 | | | 2011 | | | Increase
(Decrease) | | | 2012 | | | 2011 | | | Increase
(Decrease) | |
Gas Production/Prices: | | | | | | | | | | | | | | | | | | | | | | | | |
Production (MMcf) | | | | | | | | | | | | | | | | | | | | | | | | |
Appalachia | | | 13,236 | | | | 10,848 | | | | 2,388 | | | | 26,347 | | | | 18,930 | | | | 7,417 | |
West Coast | | | 828 | | | | 855 | | | | (27 | ) | | | 1,645 | | | | 1,790 | | | | (145 | ) |
Gulf Coast | | | — | | | | 2,056 | | | | (2,056 | ) | | | — | | | | 4,070 | | | | (4,070 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Production | | | 14,064 | | | | 13,759 | | | | 305 | | | | 27,992 | | | | 24,790 | | | | 3,202 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Average Prices (Per Mcf) | | | | | | | | | | | | | | | | | | | | | | | | |
Appalachia | | $ | 2.74 | | | $ | 4.40 | | | $ | (1.66 | ) | | $ | 3.06 | | | $ | 4.24 | | | $ | (1.18 | ) |
West Coast | | | 3.49 | | | | 4.46 | | | | (0.97 | ) | | | 4.22 | | | | 4.18 | | | | 0.04 | |
Gulf Coast | | | N/M | | | | 4.87 | | | | N/M | | | | N/M | | | | 4.71 | | | | N/M | |
Weighted Average | | | 2.78 | | | | 4.48 | | | | (1.70 | ) | | | 3.13 | | | | 4.31 | | | | (1.18 | ) |
Weighted Average after Hedging | | | 4.64 | | | | 5.32 | | | | (0.68 | ) | | | 4.71 | | | | 5.30 | | | | (0.59 | ) |
| | | | | | |
Oil Production/Prices: | | | | | | | | | | | | | | | | | | | | | | | | |
Production (Thousands of Barrels) | | | | | | | | | | | | | | | | | | | | | | | | |
Appalachia | | | 8 | | | | 11 | | | | (3 | ) | | | 18 | | | | 21 | | | | (3 | ) |
West Coast | | | 717 | | | | 643 | | | | 74 | | | | 1,426 | | | | 1,297 | | | | 129 | |
Gulf Coast | | | — | | | | 92 | | | | (92 | ) | | | — | | | | 197 | | | | (197 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Production | | | 725 | | | | 746 | | | | (21 | ) | | | 1,444 | | | | 1,515 | | | | (71 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Average Prices (Per Barrel) | | | | | | | | | | | | | | | | | | | | | | | | |
Appalachia | | $ | 100.35 | | | $ | 86.53 | | | $ | 13.82 | | | $ | 93.54 | | | $ | 84.07 | | | $ | 9.47 | |
West Coast | | | 112.17 | | | | 95.35 | | | | 16.82 | | | | 110.71 | | | | 87.84 | | | | 22.87 | |
Gulf Coast | | | N/M | | | | 96.12 | | | | N/M | | | | N/M | | | | 89.61 | | | | N/M | |
Weighted Average | | | 112.05 | | | | 95.31 | | | | 16.74 | | | | 110.50 | | | | 88.01 | | | | 22.49 | |
Weighted Average after Hedging | | | 93.40 | | | | 82.28 | | | | 11.12 | | | | 92.39 | | | | 79.21 | | | | 13.18 | |
| | | | | | |
Total Production (Mmcfe) | | | 18,414 | | | | 18,235 | | | | 179 | | | | 36,656 | | | | 33,880 | | | | 2,776 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Selected Operating Performance Statistics: | | | | | | | | | | | | | | | | | | | | | | | | |
General & Administrative Expense per Mcfe(1) | | $ | 0.78 | | | $ | 0.70 | | | $ | 0.08 | | | $ | 0.77 | | | $ | 0.71 | | | $ | 0.06 | |
Lease Operating Expense per Mcfe(1) | | $ | 1.14 | | | $ | 1.04 | | | $ | 0.10 | | | $ | 1.08 | | | $ | 1.07 | | | $ | 0.01 | |
Depreciation, Depletion & Amortization per Mcfe(1) | | $ | 2.30 | | | $ | 2.19 | | | $ | 0.11 | | | $ | 2.29 | | | $ | 2.17 | | | $ | 0.12 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| (1) | Refer to page 16 for the General and Administrative Expense, Lease Operating Expense and Depreciation, Depletion, and Amortization Expense for the Exploration and Production segment. |
N/M Not Meaningful
Page 21
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
EXPLORATION AND PRODUCTION INFORMATION
Hedging Summary for the Remaining Six Months of Fiscal 2012
| | | | | | |
SWAPS | | Volume | | Average Hedge Price | |
Oil | | 0.8 MMBBL | | $ | 77.03 / BBL | |
Gas | | 17.5 BCF | | $ | 5.89 / MCF | |
| | |
Hedging Summary for Fiscal 2013 | | | | | | |
| | |
SWAPS | | Volume | | Average Hedge Price | |
Oil | | 1.5 MMBBL | | $ | 92.52 / BBL | |
Gas | | 38.9 BCF | | $ | 4.97 / MCF | |
| | |
Hedging Summary for Fiscal 2014 | | | | | | |
| | |
SWAPS | | Volume | | Average Hedge Price | |
Oil | | 0.6 MMBBL | | $ | 95.68 / BBL | |
Gas | | 19.5 BCF | | $ | 4.34 / MCF | |
| | |
Hedging Summary for Fiscal 2015 | | | | | | |
| | |
SWAPS | | Volume | | Average Hedge Price | |
Gas | | 4.1 BCF | | $ | 4.04 / MCF | |
| | |
Hedging Summary for Fiscal 2016 | | | | | | |
| | |
SWAPS | | Volume | | Average Hedge Price | |
Gas | | 4.1 BCF | | $ | 4.04 / MCF | |
| | |
Hedging Summary for Fiscal 2017 | | | | | | |
| | |
SWAPS | | Volume | | Average Hedge Price | |
Gas | | 4.2 BCF | | $ | 4.04 / MCF | |
Gross Wells in Process of Drilling
Six Months Ended March 31, 2012
| | | | | | | | | | | | |
| | | East | | | West | | | Total
Company | |
Wells in Process - Beginning of Period | | | | | | | | | | | | |
Exploratory | | | 5.00 | | | | 0.00 | | | | 5.00 | |
Developmental | | | 101.00 | (1) | | | 0.00 | | | | 101.00 | |
Wells Commenced | | | | | | | | | | | | |
Exploratory | | | 3.00 | | | | 0.00 | | | | 3.00 | |
Developmental | | | 29.00 | | | | 37.00 | | | | 66.00 | |
Wells Completed | | | | | | | | | | | | |
Exploratory | | | 6.00 | | | | 0.00 | | | | 6.00 | |
Developmental | | | 31.00 | | | | 35.00 | | | | 66.00 | |
Wells Plugged & Abandoned | | | | | | | | | | | | |
Exploratory | | | 0.00 | | | | 0.00 | | | | 0.00 | |
Developmental | | | 0.00 | | | | 0.00 | | | | 0.00 | |
Wells in Process - End of Period | | | | | | | | | | | | |
Exploratory | | | 2.00 | | | | 0.00 | | | | 2.00 | |
Developmental | | | 99.00 | | | | 2.00 | | | | 101.00 | |
| (1) | Beginning of year number has been adjusted to remove one developmental well. |
Net Wells in Process of Drilling
Six Months Ended March 31, 2012
| | | | | | | | | | | | |
| | | East | | | West | | | Total
Company | |
Wells in Process - Beginning of Period | | | | | | | | | | | | |
Exploratory | | | 5.00 | | | | 0.00 | | | | 5.00 | |
Developmental | | | 68.00 | (2) | | | 0.00 | | | | 68.00 | |
Wells Commenced | | | | | | | | | | | | |
Exploratory | | | 3.00 | | | | 0.00 | | | | 3.00 | |
Developmental | | | 23.00 | | | | 36.99 | | | | 59.99 | |
Wells Completed | | | | | | | | | | | | |
Exploratory | | | 6.00 | | | | 0.00 | | | | 6.00 | |
Developmental | | | 23.50 | | | | 34.99 | | | | 58.49 | |
Wells Plugged & Abandoned | | | | | | | | | | | | |
Exploratory | | | 0.00 | | | | 0.00 | | | | 0.00 | |
Developmental | | | 0.00 | | | | 0.00 | | | | 0.00 | |
Wells in Process - End of Period | | | | | | | | | | | | |
Exploratory | | | 2.00 | | | | 0.00 | | | | 2.00 | |
Developmental | | | 67.50 | | | | 2.00 | | | | 69.50 | |
| (2) | Beginning of year number has been adjusted to remove one developmental well. |
Page 22
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
FISCAL 2012 EARNINGS GUIDANCE AND SENSITIVITIES
| | 000000000000000 | | 000000000000000 | | 000000000000000 | | 000000000000000 | | 000000000000000 | | 000000000000000 |
Fiscal 2012 (Diluted earnings per share guidance*) | | Earnings per share sensitivity to changes
from NYMEX prices used in guidance* ^ |
| | | | | $0.25 change per MMBtu gas | | $5 change per Bbl oil |
| | | Range | | Increase | | Decrease | | Increase | | Decrease |
Consolidated Earnings | | $2.30 - $2.45 | | + $0.04 | | - $0.04 | | + $0.02 | | - $0.02 |
| * | Please refer to forward looking statement footnote beginning at page 8 of this document. |
| ^ | This sensitivity table is current as of May 3, 2012 and only considers revenue from the Exploration and Production segment's crude oil and natural gas sales. This revenue is based upon pricing used in the Company's earnings forecast. For its fiscal 2012 earnings forecast, the Company is utilizing flat NYMEX equivalent commodity pricing, exclusive of basis differential, of $2.25 per MMBtu for natural gas and $100 per Bbl for crude oil. The sensitivities will become obsolete with the passage of time, changes in Seneca's production forecast, changes in basis differential, as additional hedging contracts are entered into, and with the settling of hedge contracts at their maturity. |
Page 23
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
Pipeline & Storage Throughput - (millions of cubic feet - MMcf)
| | | 00000000 | | | | 00000000 | | | | 00000000 | | | | 00000000 | | | | 00000000 | | | | 00000000 | |
| | | Three Months Ended
March 31, | | | Six Months Ended
March 31, | |
| | | 2012 | | | 2011 | | | Increase
(Decrease) | | | 2012 | | | 2011 | | | Increase
(Decrease) | |
Firm Transportation - Affiliated | | | 37,490 | | | | 46,277 | | | | (8,787 | ) | | | 63,668 | | | | 78,345 | | | | (14,677 | ) |
Firm Transportation - Non-Affiliated | | | 80,560 | | | | 77,692 | | | | 2,868 | | | | 137,990 | | | | 134,873 | | | | 3,117 | |
Interruptible Transportation | | | 456 | | | | 1,095 | | | | (639 | ) | | | 1,264 | | | | 1,220 | | | | 44 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 118,506 | | | | 125,064 | | | | (6,558 | ) | | | 202,922 | | | | 214,438 | | | | (11,516 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Utility Throughput - (MMcf)
| | | 000000000 | | | | 000000000 | | | | 000000000 | | | | 000000000 | | | | 000000000 | | | | 000000000 | |
| | | Three Months Ended
March 31, | | | Six Months Ended
March 31, | |
| | | 2012 | | | 2011 | | | Increase
(Decrease) | | | 2012 | | | 2011 | | | Increase
(Decrease) | |
Retail Sales: | | | | | | | | | | | | | | | | | | | | | | | | |
Residential Sales | | | 21,384 | | | | 28,048 | | | | (6,664 | ) | | | 35,933 | | | | 45,207 | | | | (9,274 | ) |
Commercial Sales | | | 3,161 | | | | 4,372 | | | | (1,211 | ) | | | 5,155 | | | | 6,842 | | | | (1,687 | ) |
Industrial Sales | | | 187 | | | | 393 | | | | (206 | ) | | | 288 | | | | 539 | | | | (251 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 24,732 | | | | 32,813 | | | | (8,081 | ) | | | 41,376 | | | | 52,588 | | | | (11,212 | ) |
Off-System Sales | | | 6,799 | | | | 3,458 | | | | 3,341 | | | | 9,544 | | | | 5,321 | | | | 4,223 | |
Transportation | | | 22,719 | | | | 27,472 | | | | (4,753 | ) | | | 39,647 | | | | 45,581 | | | | (5,934 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 54,250 | | | | 63,743 | | | | (9,493 | ) | | | 90,567 | | | | 103,490 | | | | (12,923 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Energy Marketing Volumes
| | | 000000000 | | | | 000000000 | | | | 000000000 | | | | 000000000 | | | | 000000000 | | | | 000000000 | |
| | | Three Months Ended
March 31, | | | Six Months Ended
March 31, | |
| | | 2012 | | | 2011 | | | Increase
(Decrease) | | | 2012 | | | 2011 | | | Increase
(Decrease) | |
Natural Gas (MMcf) | | | 17,727 | | | | 21,609 | | | | (3,882 | ) | | | 28,039 | | | | 32,355 | | | | (4,316 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Page 24
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
| | | | | | | | |
| | | 2012 | | | 2011 | |
Quarter Ended March 31 (unaudited) | | | | | | | | |
Operating Revenues | | $ | 552,309,000 | | | $ | 660,881,000 | |
| | | | | | | | |
Net Income Available for Common Stock | | $ | 67,392,000 | | | $ | 115,611,000 | |
| | | | | | | | |
Earnings Per Common Share: | | | | | | | | |
Basic | | $ | 0.81 | | | $ | 1.40 | |
| | | | | | | | |
Diluted | | $ | 0.81 | | | $ | 1.38 | |
| | | | | | | | |
Weighted Average Common Shares: | | | | | | | | |
Used in Basic Calculation | | | 83,107,884 | | | | 82,400,851 | |
| | | | | | | | |
Used in Diluted Calculation | | | 83,678,261 | | | | 83,673,977 | |
| | | | | | | | |
Six Months Ended March 31 (unaudited) | | | | | | | | |
Operating Revenues | | $ | 984,732,000 | | | $ | 1,111,829,000 | |
| | | | | | | | |
Net Income Available for Common Stock | | $ | 128,091,000 | | | $ | 174,154,000 | |
| | | | | | | | |
Earnings Per Common Share: | | | | | | | | |
Basic | | $ | 1.54 | | | $ | 2.12 | |
| | | | | | | | |
Diluted | | $ | 1.53 | | | $ | 2.08 | |
| | | | | | | | |
Weighted Average Common Shares: | | | | | | | | |
Used in Basic Calculation | | | 82,988,750 | | | | 82,311,162 | |
| | | | | | | | |
Used in Diluted Calculation | | | 83,712,681 | | | | 83,561,775 | |
| | | | | | | | |
Twelve Months Ended March 31 (unaudited) | | | | | | | | |
Operating Revenues | | $ | 1,651,745,000 | | | $ | 1,750,217,000 | |
| | | | | | | | |
Income from Continuing Operations | | $ | 212,338,000 | | | $ | 249,189,000 | |
Income from Discontinued Operations, Net of Tax | | | — | | | | 5,952,000 | |
| | | | | | | | |
Net Income Available for Common Stock | | $ | 212,338,000 | | | $ | 255,141,000 | |
| | | | | | | | |
Earnings Per Common Share: | | | | | | | | |
Basic: | | | | | | | | |
Income from Continuing Operations | | $ | 2.56 | | | $ | 3.04 | |
Income from Discontinued Operations | | | — | | | | 0.07 | |
| | | | | | | | |
Net Income Available for Common Stock | | $ | 2.56 | | | $ | 3.11 | |
| | | | | | | | |
Diluted: | | | | | | | | |
Income from Continuing Operations | | $ | 2.54 | | | $ | 2.99 | |
Income from Discontinued Operations | | | — | | | | 0.07 | |
| | | | | | | | |
Net Income Available for Common Stock | | $ | 2.54 | | | $ | 3.06 | |
| | | | | | | | |
Weighted Average Common Shares: | | | | | | | | |
Used in Basic Calculation | | | 82,852,270 | | | | 82,100,883 | |
| | | | | | | | |
Used in Diluted Calculation | | | 83,747,858 | | | | 83,283,900 | |
| | | | | | | | |
Page 25
