Exhibit 99
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| Release Date: | | Immediate August 2, 2012 | | 6363 Main Street/Williamsville, NY 14221 Timothy Silverstein Investor Relations 716-857-6987 David P. Bauer Treasurer 716-857-7318 |
NATIONAL FUEL REPORTS THIRD QUARTER EARNINGS
WILLIAMSVILLE, NY: National Fuel Gas Company (“National Fuel” or the “Company”) (NYSE:NFG) today announced consolidated earnings for the third quarter of fiscal 2012 and for the nine months ended June 30, 2012.
HIGHLIGHTS
| • | | Earnings for the third quarter were $43.2 million or $0.52 per share. This compares to earnings of $46.9 million or $0.56 per share in the prior year’s third quarter. The decrease in earnings in the Exploration and Production segment is due to lower commodity prices, and the decrease in earnings in the Utility and Energy Marketing segments is due to warmer weather. |
| • | | In the Pipeline and Storage segment, third quarter earnings of $12.6 million, or $0.15 per share, increased $8.1 million, or $0.10 per share, compared to the prior year’s third quarter, largely driven by the impact of the Line N Expansion and Tioga County Extension projects that were placed in service during the first quarter. |
| • | | Seneca’s production of crude oil and natural gas in the current quarter was 22.1 billion cubic feet equivalent (“Bcfe”), a 30.7% increase over the 16.9 Bcfe in the third quarter of 2011. Appalachian production increased 38.4% to 16.8 Bcfe, including 15.0 Bcfe of production from the Marcellus Shale wells, an increase of 45.6% over the prior year’s third quarter. California crude oil production increased 7.4%. Production for the entire 2012 fiscal year is projected to be between 81 and 85 Bcfe. |
| • | | National Fuel Gas Midstream Corporation’s Trout Run Gathering System located in Lycoming County, Pa., was completed and placed in service on May 30, 2012. |
| • | | The Company is updating and narrowing its GAAP earnings guidance range for fiscal 2012 to reflect actual results for the nine months ended June 30, 2012. The revised GAAP earnings guidance range is $2.38 to $2.48 per share. |
| • | | The Company’s preliminary GAAP earnings guidance for fiscal 2013 is in the range of $2.45 to $2.75 per share. The 2013 preliminary guidance includes oil and gas production for the Exploration and Production segment in the range of 92 to 105 Bcfe and is based on an assumed flat NYMEX price of $3.25 per MMBtu for natural gas and $85 per Bbl for crude oil. |
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| • | | A conference call is scheduled for Friday, August 3, 2012, at 11 a.m. Eastern Time. |
MANAGEMENT COMMENTS
David F. Smith, Chairman and Chief Executive Officer of National Fuel Gas Company, stated: “In our fiscal third quarter, we were very pleased with our operational performance. Seneca’s Marcellus production continues to grow rapidly, increasing nearly 50 percent over last year’s quarter, with favorable hedging helping to offset lower natural gas prices. In addition, we continue to see great success in California, where crude oil production was up 7.4 percent. In our midstream businesses, the Trout Run Gathering System was placed in service this May, and our Northern Access and Line N 2012 expansion projects are on track for completion this fall.
“In short, even though earnings this quarter were impacted by the lowest natural gas prices in more than a decade, our ongoing accomplishments in all of our businesses make us well positioned for long-term growth.”
SUMMARY OF RESULTS
National Fuel had consolidated earnings for the quarter ended June 30, 2012, of $43.2 million, or $0.52 per share, compared to the prior year’s third quarter earnings of $46.9 million, or $0.56 per share, a decrease of $3.7 million or $0.04 per share. The decrease is mainly due to lower earnings in the Exploration and Production, Utility and Energy Marketing segments, offset by higher earnings in the Pipeline and Storage segment and the All Other category. (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 nine months ended June 30, 2012, of $171.3 million, or $2.05 per share, decreased $49.7 million, or $0.59 per share, from the same period in the prior year, where earnings were $221.0 million or $2.64 per share.
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| | | | | | | | | | | | | | | | |
| | | Three Months | | | Nine Months | |
| | | Ended June 30, | | | Ended June 30, | |
| | | 2012 | | | 2011 | | | 2012 | | | 2011 | |
| (in thousands except per share amounts) | | | | | | | | | | | | |
Reported GAAP earnings | | $ | 43,184 | | | $ | 46,891 | | | $ | 171,275 | | | $ | 221,045 | |
Items impacting comparability1: | | | | | | | | | | | | | | | | |
Pennsylvania impact fee | | | 1,661 | | | | | | | | 8,061 | | | | | |
Gain on sale of landfill gas electric generation investments | | | | | | | | | | | | | | | (31,418 | ) |
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Operating Results | | $ | 44,845 | | | $ | 46,891 | | | $ | 179,336 | | | $ | 189,627 | |
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Reported GAAP earnings per share | | $ | 0.52 | | | $ | 0.56 | | | $ | 2.05 | | | $ | 2.64 | |
Items impacting comparability1: | | | | | | | | | | | | | | | | |
Pennsylvania impact fee | | | 0.02 | | | | | | | | 0.10 | | | | | |
Gain on sale of landfill gas electric generation investments | | | | | | | | | | | | | | | (0.37 | ) |
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Operating Results | | $ | 0.54 | | | $ | 0.56 | | | $ | 2.15 | | | $ | 2.27 | |
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| 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 nine months ended June 30, 2012, to the comparable periods in fiscal 2011. Excluding these items, Operating Results for the current quarter of $44.8 million, or $0.54 per share, decreased $2.1 million, or $0.02 per share, from the prior year’s third quarter where Operating Results were $46.9 million or $0.56 per share. Excluding these items, Operating Results for the nine months ended June 30, 2012, of $179.3 million, or $2.15 per share, decreased $10.3 million, or $0.12 per share, from the same period in the prior year, where Operating Results were $189.6 million or $2.27 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.
The Exploration and Production segment’s earnings in the third quarter of fiscal 2012 of $21.9 million, or $0.26 per share, decreased $10.9 million, or $0.13 per share, when compared with the prior year’s third quarter.
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In February 2012, the Commonwealth of Pennsylvania passed legislation that includes 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 15 years on each well drilled. The per well 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 applied 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 third quarter by $2.6 million (pre-tax).
Excluding the impact fee, the Exploration and Production segment’s Operating Results in the third quarter of fiscal 2012 were $23.6 million, or $0.28 per share, a decrease of $9.2 million, or $0.11 per share, when compared with the prior year’s third quarter.
Overall production of natural gas and crude oil for the current quarter of 22.1 Bcfe increased approximately 5.2 Bcfe compared to the prior year’s third quarter. Production from Seneca’s Appalachia properties increased 38.4 percent, mainly due to a 4.7 Bcfe, or 45.6 percent increase, in production from Marcellus wells. Crude oil production in California increased 7.4 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 June 30, 2012, was $3.93 per thousand cubic feet (“Mcf”), a decrease of $1.55 per Mcf compared to the prior year’s third quarter. Higher crude oil prices realized after hedging increased earnings. The weighted average oil price received by Seneca (after hedging) for the quarter ended June 30, 2012, was $89.70 per Barrel (“Bbl”), an increase of $5.33 per Bbl.
Depletion, lease operating expenses (“LOE”) and general and administrative expenses (“G&A”) for the current year’s third quarter increased over last year’s third quarter. On a per unit basis, depletion increased $0.19 per thousand cubic feet equivalent (“Mcfe”) due to higher capital spending in the East. LOE decreased $0.12 per Mcfe and G&A decreased $0.08 per Mcfe, largely due to the increase in Marcellus production.
The Exploration and Production segment’s earnings of $74.4 million, or $0.89 per share, for the nine months ended June 30, 2012, decreased $19.0 million, or $0.23 per share, when compared with the nine months ended June 30, 2011. The impact fee, described above, recorded in the current nine-month period was $12.4 million (pre-tax) of which $6.3 million (pre-tax) related to prior fiscal years. Excluding the impact fee, the Exploration and Production segment’s Operating Results for the nine months ended June 30, 2012, were $82.5 million, or $0.99 per share, a decrease of $11.0 million, or $0.13 per share, when compared with the prior year’s nine month period.
Overall production for the nine months ended June 30, 2012, increased 15.7 percent. Excluding fiscal 2011 Gulf of Mexico production of 5.2 Bcfe due to the April 2011 sale of Seneca’s offshore Gulf of Mexico assets, production increased 28.9 percent or 13.2 Bcfe. Production from Seneca’s Appalachia properties increased 38.6 percent, mainly due to a 12.6 Bcfe or 50 percent increase in production from Marcellus wells. Crude oil production in California increased 9.1 percent.
Changes in commodity prices realized after hedging also impacted earnings. The weighted average natural gas price received by Seneca (after hedging) for the nine-month period ended June
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30, 2012, was $4.40 per Mcf, a decrease of $0.96 per Mcf. Higher crude oil prices realized after hedging increased earnings. The weighted average crude oil price received by Seneca (after hedging) for the nine-month period ended June 30, 2012, was $91.50 per Bbl, an increase of $10.72 per Bbl.
Depletion, LOE and G&A for the nine months ended June 30, 2012, increased compared to the prior year’s nine-month period due in part to the higher production activity discussed above. On a per unit basis, depletion increased $0.14 per Mcfe, LOE decreased $0.04 per Mcfe and G&A per Mcfe was unchanged.
Pipeline and Storage Segment
The Pipeline and Storage segment operations are carried out by National Fuel Gas Supply Corporation (“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 $12.6 million, or $0.15 per share, for the quarter ended June 30, 2012, increased $8.1 million, or $0.10 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 fiscal year’s first quarter, and lower operating expenses.
The Pipeline and Storage segment’s earnings of $35.4 million, or $0.42 per share, for the nine months ended June 30, 2012, increased $11.4 million, or $0.13 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 and lower operating expenses noted above. Earnings were reduced by lower efficiency gas revenues due to the decline in natural gas prices and higher depreciation expense.
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.
The Utility segment’s earnings of $5.1 million, or $0.06 per share, for the quarter ended June 30, 2012, decreased $1.2 million, or $0.02 per share, when compared with the same period in the prior fiscal year due mainly to weather in Pennsylvania that was 7.7 percent warmer in the current year’s third quarter than the third 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. Higher depreciation expense and higher income taxes also reduced earnings. Lower operating expenses and higher normalized usage in Pennsylvania partially offset the impact of the above items.
The Utility segment’s earnings of $52.7 million, or $0.63 per share, for the nine months ended June 30, 2012, decreased from earnings of $62.4 million, or $0.74 per share, for the nine months
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ended June 30, 2011. Warmer weather in Pennsylvania was the main reason for the decrease in earnings. Temperatures in Pennsylvania were 22.4 percent warmer in the nine-month period ended June 30, 2012, than the prior year’s nine-month period. Higher depreciation expense, higher income taxes and the impact of certain regulatory adjustments also decreased earnings. Lower operating expenses, lower interest expense and higher normalized usage in Pennsylvania partially offset the above items.
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 June 30, 2012, of $0.9 million, or $0.01 per share, decreased $1.0 million, or $0.01 per share, from the prior year’s third quarter earnings of $1.9 million or $0.02 per share. Earnings for the nine months ended June 30, 2012, of $4.7 million, or $0.06 per share, decreased $4.5 million, or $0.05 per share, from the prior year’s nine-month period. The decrease in earnings in both the current year’s third quarter and nine-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 June 30, 2012, were $2.6 million, or $0.04 per share, an increase of $1.2 million, or $0.02 per share, compared to the prior year’s third quarter earnings. The increase in earnings is mainly due to higher earnings from Midstream’s pipeline gathering and natural gas processing operations, lower Corporate operating expenses and lower state franchise taxes.
Earnings in the Corporate and All Other category for the nine months ended June 30, 2012, were $4.0 million, or $0.05 per share, a decrease of $28.0 million, or $0.33 per share, when compared to the earnings for the nine months ended June 30, 2011. The comparability of the results for the quarters ended June 30, 2012, and June 30, 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 electric generation assets powered by landfill gas.
Excluding this item, Operating Results of $4.0 million, or $0.05 per share, for the nine-month period ended June 30, 2012, increased $3.4 million, or $0.04 per share, when compared with the prior year’s nine-month period. The increase in Operating Results is mainly due to higher earnings
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from Midstream’s pipeline gathering and natural gas processing operations, lower Corporate operating expenses and lower state franchise taxes.
EARNINGS GUIDANCE
The Company is updating and narrowing its GAAP earnings guidance range for fiscal 2012 to reflect actual results for the nine months ended June 30, 2012. The revised GAAP earnings range is $2.38 to $2.48 per share, excluding any period end regulatory adjustments. The previous guidance range had been $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 85 Bcfe, hedges currently in place, and NYMEX equivalent flat commodity pricing on non-hedged volumes exclusive of basis differential of $3.00 per MMBtu for natural gas and $85 per Bbl for crude oil.
The Company’s preliminary GAAP earnings guidance for fiscal 2013 is in the range of $2.45 to $2.75. This includes oil and gas production for the Exploration and Production segment in the range of 92 to 105 Bcfe and is based on an assumed flat NYMEX price of $3.25 per MMBTU for natural gas and $85 per Bbl for crude oil.
EARNINGS TELECONFERENCE
The Company will host a conference call on Friday, August 3, 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) 1-866-578-5788, and using the passcode “62532693.” 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 “85783979.” Both the webcast and telephonic replay will be available until the close of business on Friday, August 10, 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,
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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; impairments under the SEC’s full cost ceiling test for natural gas and oil reserves; 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; 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 laws, 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 JUNE 30, 2012
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| | | Exploration & | | | Pipeline & | | | | | | Energy | | | Corporate / | | | | |
| (Thousands of Dollars) | | Production | | | Storage | | | Utility | | | Marketing | | | All Other | | | Consolidated* | |
Third quarter 2011 GAAP earnings | | $ | 32,784 | | | $ | 4,503 | | | $ | 6,328 | | | $ | 1,891 | | | $ | 1,385 | | | $ | 46,891 | |
| | | | | | |
Drivers of operating results | | | | | | | | | | | | | | | | | | | | | | | | |
Higher (lower) crude oil prices | | | 2,495 | | | | | | | | | | | | | | | | | | | | 2,495 | |
Higher (lower) natural gas prices | | | (17,904 | ) | | | | | | | | | | | | | | | | | | | (17,904 | ) |
Higher (lower) natural gas production | | | 17,315 | | | | | | | | | | | | | | | | | | | | 17,315 | |
Higher (lower) crude oil production | | | 3,098 | | | | | | | | | | | | | | | | | | | | 3,098 | |
Lower (higher) lease operating expenses | | | (2,029 | ) | | | | | | | | | | | | | | | | | | | (2,029 | ) |
Lower (higher) depreciation / depletion | | | (10,059 | ) | | | | | | | (698 | ) | | | | | | | (244 | ) | | | (11,001 | ) |
| | | | | | |
Higher (lower) transportation revenues | | | | | | | 5,766 | | | | | | | | | | | | | | | | 5,766 | |
Higher (lower) efficiency gas revenues | | | | | | | (766 | ) | | | | | | | | | | | | | | | (766 | ) |
Higher (lower) gathering and processing revenues | | | | | | | | | | | | | | | | | | | 1,140 | | | | 1,140 | |
Lower (higher) operating expenses | | | (1,395 | ) | | | 2,052 | | | | 796 | | | | | | | | 321 | | | | 1,774 | |
Lower (higher) property, franchise and other taxes | | | | | | | | | | | 323 | | | | | | | | 713 | | | | 1,036 | |
| | | | | | |
Warmer weather | | | | | | | | | | | (2,311 | ) | | | | | | | | | | | (2,311 | ) |
Usage | | | | | | | | | | | 733 | | | | | | | | | | | | 733 | |
| | | | | | |
Higher (lower) margins | | | | | | | | | | | | | | | (876 | ) | | | (652 | ) | | | (1,528 | ) |
| | | | | | |
(Higher) lower interest expense | | | (2,879 | ) | | | | | | | 358 | | | | | | | | | | | | (2,521 | ) |
| | | | | | |
Lower (higher) income tax expense / effective tax rate | | | 1,585 | | | | 762 | | | | (779 | ) | | | | | | | | | | | 1,568 | |
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All other / rounding | | | 565 | | | | 310 | | | | 346 | | | | (92 | ) | | | (40 | ) | | | 1,089 | |
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Third quarter 2012 operating results | | | 23,576 | | | | 12,627 | | | | 5,096 | | | | 923 | | | | 2,623 | | | | 44,845 | |
Items impacting comparability: | | | | | | | | | | | | | | | | | | | | | | | | |
Pennsylvania impact fee | | | (1,661 | ) | | | | | | | | | | | | | | | | | | | (1,661 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Third quarter 2012 GAAP earnings | | $ | 21,915 | | | $ | 12,627 | | | $ | 5,096 | | | $ | 923 | | | $ | 2,623 | | | $ | 43,184 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| * | 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 JUNE 30, 2012
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Exploration & | | | Pipeline & | | | | | | Energy | | | Corporate / | | | | |
| | | Production | | | Storage | | | Utility | | | Marketing | | | All Other | | | Consolidated* | |
Third quarter 2011 GAAP earnings | | $ | 0.39 | | | $ | 0.05 | | | $ | 0.08 | | | $ | 0.02 | | | $ | 0.02 | | | $ | 0.56 | |
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Drivers of operating results | | | | | | | | | | | | | | | | | | | | | | | | |
Higher (lower) crude oil prices | | | 0.03 | | | | | | | | | | | | | | | | | | | | 0.03 | |
Higher (lower) natural gas prices | | | (0.21 | ) | | | | | | | | | | | | | | | | | | | (0.21 | ) |
Higher (lower) natural gas production | | | 0.21 | | | | | | | | | | | | | | | | | | | | 0.21 | |
Higher (lower) crude oil production | | | 0.04 | | | | | | | | | | | | | | | | | | | | 0.04 | |
Lower (higher) lease operating expenses | | | (0.02 | ) | | | | | | | | | | | | | | | | | | | (0.02 | ) |
Lower (higher) depreciation / depletion | | | (0.12 | ) | | | | | | | (0.01 | ) | | | | | | | — | | | | (0.13 | ) |
| | | | | | |
Higher (lower) transportation revenues | | | | | | | 0.07 | | | | | | | | | | | | | | | | 0.07 | |
Higher (lower) efficiency gas revenues | | | | | | | (0.01 | ) | | | | | | | | | | | | | | | (0.01 | ) |
Higher (lower) gathering and processing revenues | | | | | | | | | | | | | | | | | | | 0.01 | | | | 0.01 | |
Lower (higher) operating expenses | | | (0.02 | ) | | | 0.02 | | | | 0.01 | | | | | | | | — | | | | 0.01 | |
Lower (higher) property, franchise and other taxes | | | | | | | | | | | — | | | | | | | | 0.01 | | | | 0.01 | |
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Warmer weather | | | | | | | | | | | (0.03 | ) | | | | | | | | | | | (0.03 | ) |
Usage | | | | | | | | | | | 0.01 | | | | | | | | | | | | 0.01 | |
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Higher (lower) margins | | | | | | | | | | | | | | | (0.01 | ) | | | (0.01 | ) | | | (0.02 | ) |
| | | | | | |
(Higher) lower interest expense | | | (0.03 | ) | | | | | | | — | | | | | | | | | | | | (0.03 | ) |
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Lower (higher) income tax expense / effective tax rate | | | 0.02 | | | | 0.01 | | | | (0.01 | ) | | | | | | | | | | | 0.02 | |
| | | | | | |
All other / rounding | | | (0.01 | ) | | | 0.01 | | | | 0.01 | | | | — | | | | 0.01 | | | | 0.02 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Third quarter 2012 operating results | | | 0.28 | | | | 0.15 | | | | 0.06 | | | | 0.01 | | | | 0.04 | | | | 0.54 | |
Items impacting comparability: | | | | | | | | | | | | | | | | | | | | | | | | |
Pennsylvania impact fee | | | (0.02 | ) | | | | | | | | | | | | | | | | | | | (0.02 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Third quarter 2012 GAAP earnings | | $ | 0.26 | | | $ | 0.15 | | | $ | 0.06 | | | $ | 0.01 | | | $ | 0.04 | | | $ | 0.52 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| * | Amounts do not reflect intercompany eliminations |
Page 11
NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
NINE MONTHS ENDED JUNE 30, 2012
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Exploration & | | | Pipeline & | | | | | | Energy | | | Corporate / | | | | |
| (Thousands of Dollars) | | Production | | | Storage | | | Utility | | | Marketing | | | All Other | | | Consolidated** | |
Nine months ended June 30, 2011 GAAP earnings | | $ | 93,455 | | | $ | 24,036 | | | $ | 62,399 | | | $ | 9,122 | | | $ | 32,033 | | | $ | 221,045 | |
Items impacting comparability: | | | | | | | | | | | | | | | | | | | | | | | | |
Gain on sale of unconsolidated subsidiaries | | | | | | | | | | | | | | | | | | | (31,418 | ) | | | (31,418 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Nine months ended June 30, 2011 operating results | | | 93,455 | | | | 24,036 | | | | 62,399 | | | | 9,122 | | | | 615 | | | | 189,627 | |
| | | | | | |
Drivers of operating results | | | | | | | | | | | | | | | | | | | | | | | | |
Higher (lower) Appalachian and West Coast crude oil prices | | | 16,045 | | | | | | | | | | | | | | | | | | | | 16,045 | |
Higher (lower) Appalachian and West Coast natural gas prices | | | (28,237 | ) | | | | | | | | | | | | | | | | | | | (28,237 | ) |
Higher (lower) Appalachian and West Coast natural gas production | | | 41,531 | | | | | | | | | | | | | | | | | | | | 41,531 | |
Higher (lower) Appalachian and West Coast crude oil production | | | 9,147 | | | | | | | | | | | | | | | | | | | | 9,147 | |
Lower Gulf Coast natural gas and crude oil revenues | | | (24,506 | ) | | | | | | | | | | | | | | | | | | | (24,506 | ) |
Lower (higher) lease operating expenses | | | (4,153 | ) | | | | | | | | | | | | | | | | | | | (4,153 | ) |
Lower (higher) depreciation / depletion | | | (16,670 | ) | | | (1,138 | ) | | | (987 | ) | | | | | | | (230 | ) | | | (19,025 | ) |
Higher (lower) processing plant revenues | | | 992 | | | | | | | | | | | | | | | | | | | | 992 | |
| | | | | | |
Higher (lower) transportation revenues | | | | | | | 13,506 | | | | | | | | | | | | | | | | 13,506 | |
Higher (lower) efficiency gas revenues | | | | | | | (4,431 | ) | | | | | | | | | | | | | | | (4,431 | ) |
Higher (lower) gathering and processing revenues | | | | | | | | | | | | | | | | | | | 2,401 | | | | 2,401 | |
Lower (higher) operating expenses | | | (3,636 | ) | | | 2,013 | | | | | | | | | | | | 465 | | | | (1,158 | ) |
Lower (higher) property, franchise and other taxes | | | 1,975 | | | | | | | | 727 | | | | | | | | 722 | | | | 3,424 | |
| | | | | | |
Warmer weather | | | | | | | | | | | (10,002 | ) | | | | | | | | | | | (10,002 | ) |
Usage | | | | | | | | | | | 930 | | | | | | | | | | | | 930 | |
Regulatory true-up adjustments | | | | | | | | | | | (873 | ) | | | | | | | | | | | (873 | ) |
| | | | | | |
Higher (lower) income from unconsolidated subsidiaries | | | | | | | | | | | | | | | | | | | 305 | | | | 305 | |
| | | | | | |
Higher (lower) margins | | | | | | | | | | | | | | | (4,340 | ) | | | 261 | | | | (4,079 | ) |
| | | | | | |
Higher AFUDC * | | | | | | | 707 | | | | | | | | | | | | | | | | 707 | |
Higher (lower) interest income | | | 480 | | | | | | | | | | | | | | | | | | | | 480 | |
Lower (higher) interest expense | | | (4,354 | ) | | | | | | | 1,130 | | | | | | | | | | | | (3,224 | ) |
| | | | | | |
(Higher) lower income tax expense | | | | | | | 1,022 | | | | (1,432 | ) | | | | | | | | | | | (410 | ) |
| | | | | | |
All other / rounding | | | 414 | | | | (287 | ) | | | 833 | | | | (120 | ) | | | (501 | ) | | | 339 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Nine months ended June 30, 2012 operating results | | | 82,483 | | | | 35,428 | | | | 52,725 | | | | 4,662 | | | | 4,038 | | | | 179,336 | |
Items impacting comparability: | | | | | | | | | | | | | | | | | | | | | | | | |
Pennsylvania impact fee | | | (8,061 | ) | | | | | | | | | | | | | | | | | | | (8,061 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Nine months ended June 30, 2012 GAAP earnings | | $ | 74,422 | | | $ | 35,428 | | | $ | 52,725 | | | $ | 4,662 | | | $ | 4,038 | | | $ | 171,275 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| * | AFUDC = Allowance for Funds Used During Construction |
| ** | Amounts do not reflect intercompany eliminations |
Page 12
NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
NINE MONTHS ENDED JUNE 30, 2012
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Exploration & | | | Pipeline & | | | | | | Energy | | | Corporate / | | | | |
| | | Production | | | Storage | | | Utility | | | Marketing | | | All Other | | | Consolidated** | |
Nine months ended June 30, 2011 GAAP earnings | | $ | 1.12 | | | $ | 0.29 | | | $ | 0.74 | | | $ | 0.11 | | | $ | 0.38 | | | $ | 2.64 | |
Items impacting comparability: | | | | | | | | | | | | | | | | | | | | | | | | |
Gain on sale of unconsolidated subsidiaries | | | | | | | | | | | | | | | | | | | (0.37 | ) | | | (0.37 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Nine months ended June 30, 2011 operating results | | | 1.12 | | | | 0.29 | | | | 0.74 | | | | 0.11 | | | | 0.01 | | | | 2.27 | |
| | | | | | |
Drivers of operating results | | | | | | | | | | | | | | | | | | | | | | | | |
Higher (lower) Appalachian and West Coast crude oil prices | | | 0.19 | | | | | | | | | | | | | | | | | | | | 0.19 | |
Higher (lower) Appalachian and West Coast natural gas prices | | | (0.34 | ) | | | | | | | | | | | | | | | | | | | (0.34 | ) |
Higher (lower) Appalachian and West Coast natural gas production | | | 0.50 | | | | | | | | | | | | | | | | | | | | 0.50 | |
Higher (lower) Appalachian and West Coast crude oil production | | | 0.11 | | | | | | | | | | | | | | | | | | | | 0.11 | |
Lower Gulf Coast natural gas and crude oil revenues | | | (0.29 | ) | | | | | | | | | | | | | | | | | | | (0.29 | ) |
Lower (higher) lease operating expenses | | | (0.05 | ) | | | | | | | | | | | | | | | | | | | (0.05 | ) |
Lower (higher) depreciation / depletion | | | (0.20 | ) | | | (0.01 | ) | | | (0.01 | ) | | | | | | | — | | | | (0.22 | ) |
Higher (lower) processing plant revenues | | | 0.01 | | | | | | | | | | | | | | | | | | | | 0.01 | |
| | | | | | |
Higher (lower) transportation revenues | | | | | | | 0.16 | | | | | | | | | | | | | | | | 0.16 | |
Higher (lower) efficiency gas revenues | | | | | | | (0.05 | ) | | | | | | | | | | | | | | | (0.05 | ) |
Higher (lower) gathering and processing revenues | | | | | | | | | | | | | | | | | | | 0.03 | | | | 0.03 | |
Lower (higher) operating expenses | | | (0.04 | ) | | | 0.02 | | | | | | | | | | | | 0.01 | | | | (0.01 | ) |
Lower (higher) property, franchise and other taxes | | | 0.02 | | | | | | | | 0.01 | | | | | | | | 0.01 | | | | 0.04 | |
| | | | | | |
Warmer weather | | | | | | | | | | | (0.12 | ) | | | | | | | | | | | (0.12 | ) |
Usage | | | | | | | | | | | 0.01 | | | | | | | | | | | | 0.01 | |
Regulatory true-up adjustments | | | | | | | | | | | (0.01 | ) | | | | | | | | | | | (0.01 | ) |
| | | | | | |
Higher (lower) income from unconsolidated subsidiaries | | | | | | | | | | | | | | | | | | | — | | | | — | |
| | | | | | |
Higher (lower) margins | | | | | | | | | | | | | | | (0.05 | ) | | | — | | | | (0.05 | ) |
| | | | | | |
Higher AFUDC * | | | | | | | 0.01 | | | | | | | | | | | | | | | | 0.01 | |
Higher (lower) interest income | | | 0.01 | | | | | | | | | | | | | | | | | | | | 0.01 | |
Lower (higher) interest expense | | | (0.05 | ) | | | | | | | 0.01 | | | | | | | | | | | | (0.04 | ) |
| | | | | | |
(Higher) lower income tax expense | | | | | | | 0.01 | | | | (0.02 | ) | | | | | | | | | | | (0.01 | ) |
| | | | | | |
All other / rounding | | | — | | | | (0.01 | ) | | | 0.02 | | | | — | | | | (0.01 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Nine months ended June 30, 2012 operating results | | | 0.99 | | | | 0.42 | | | | 0.63 | | | | 0.06 | | | | 0.05 | | | | 2.15 | |
Items impacting comparability: | | | | | | | | | | | | | | | | | | | | | | | | |
Pennsylvania impact fee | | | (0.10 | ) | | | | | | | | | | | | | | | | | | | (0.10 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Nine months ended June 30, 2012 GAAP earnings | | $ | 0.89 | | | $ | 0.42 | | | $ | 0.63 | | | $ | 0.06 | | | $ | 0.05 | | | $ | 2.05 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| * | AFUDC = Allowance for Funds Used During Construction |
| ** | Amounts do not reflect intercompany eliminations |
Page 13
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
| | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Nine Months Ended | |
| | | June 30, | | | June 30, | |
| | | (Unaudited) | | | (Unaudited) | |
| (Thousands of Dollars, except per share amounts) | | 2012 | | | 2011 | | | 2012 | | | 2011 | |
SUMMARY OF OPERATIONS | | | | | | | | | | | | | | | | |
Operating Revenues | | $ | 328,861 | | | $ | 380,979 | | | $ | 1,313,593 | | | $ | 1,492,808 | |
| | | | | | | | | | | | | | | | |
Operating Expenses: | | | | | | | | | | | | | | | | |
Purchased Gas | | | 50,160 | | | | 112,725 | | | | 390,889 | | | | 582,358 | |
Operation and Maintenance | | | 93,749 | | | | 95,977 | | | | 311,857 | | | | 310,148 | |
Property, Franchise and Other Taxes | | | 20,432 | | | | 20,179 | | | | 70,138 | | | | 63,714 | |
Depreciation, Depletion and Amortization | | | 74,227 | | | | 57,293 | | | | 199,925 | | | | 170,617 | |
| | | | | | | | | | | | | | | | |
| | | 238,568 | | | | 286,174 | | | | 972,809 | | | | 1,126,837 | |
Operating Income | | | 90,293 | | | | 94,805 | | | | 340,784 | | | | 365,971 | |
| | | | |
Other Income (Expense): | | | | | | | | | | | | | | | | |
Gain on Sale of Unconsolidated Subsidiaries | | | — | | | | — | | | | — | | | | 50,879 | |
Interest Income | | | 390 | | | | 325 | | | | 1,686 | | | | 1,277 | |
Other Income | | | 1,086 | | | | 1,813 | | | | 4,076 | | | | 4,130 | |
Interest Expense on Long-Term Debt | | | (21,529 | ) | | | (17,876 | ) | | | (60,594 | ) | | | (55,994 | ) |
Other Interest Expense | | | (828 | ) | | | (1,159 | ) | | | (2,851 | ) | | | (4,014 | ) |
| | | | | | | | | | | | | | | | |
Income Before Income Taxes | | | 69,412 | | | | 77,908 | | | | 283,101 | | | | 362,249 | |
| | | | |
Income Tax Expense | | | 26,228 | | | | 31,017 | | | | 111,826 | | | | 141,204 | |
| | | | | | | | | | | | | | | | |
Net Income Available for Common Stock | | $ | 43,184 | | | $ | 46,891 | | | $ | 171,275 | | | $ | 221,045 | |
| | | | | | | | | | | | | | | | |
Earnings Per Common Share: | | | | | | | | | | | | | | | | |
Basic | | $ | 0.52 | | | $ | 0.57 | | | $ | 2.06 | | | $ | 2.68 | |
| | | | | | | | | | | | | | | | |
Diluted | | $ | 0.52 | | | $ | 0.56 | | | $ | 2.05 | | | $ | 2.64 | |
| | | | | | | | | | | | | | | | |
Weighted Average Common Shares: | | | | | | | | | | | | | | | | |
Used in Basic Calculation | | | 83,227,602 | | | | 82,687,467 | | | | 83,068,083 | | | | 82,436,603 | |
| | | | | | | | | | | | | | | | |
Used in Diluted Calculation | | | 83,674,823 | | | | 83,782,493 | | | | 83,690,436 | | | | 83,649,498 | |
| | | | | | | | | | | | | | | | |
Page 14
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
| | | | | | | | |
| | | June 30, | | | September 30, | |
(Thousands of Dollars) | | 2012 | | | 2011 | |
ASSETS | | | | | | | | |
Property, Plant and Equipment | | $ | 6,438,525 | | | $ | 5,646,918 | |
Less—Accumulated Depreciation, Depletion and Amortization | | | 1,817,655 | | | | 1,646,394 | |
| | | | | | | | |
Net Property, Plant and Equipment | | | 4,620,870 | | | | 4,000,524 | |
| | | | | | | | |
Current Assets: | | | | | | | | |
Cash and Temporary Cash Investments | | | 140,815 | | | | 80,428 | |
Hedging Collateral Deposits | | | 3,392 | | | | 19,701 | |
Receivables—Net | | | 113,949 | | | | 131,885 | |
Unbilled Utility Revenue | | | 12,212 | | | | 17,284 | |
Gas Stored Underground | | | 24,787 | | | | 54,325 | |
Materials and Supplies—at average cost | | | 28,137 | | | | 27,932 | |
Unrecovered Purchased Gas Costs | | | 2,100 | | | | — | |
Other Current Assets | | | 48,246 | | | | 64,923 | |
Deferred Income Taxes | | | 14,727 | | | | 15,423 | |
| | | | | | | | |
Total Current Assets | | | 388,365 | | | | 411,901 | |
| | | | | | | | |
Other Assets: | | | | | | | | |
Recoverable Future Taxes | | | 147,652 | | | | 144,377 | |
Unamortized Debt Expense | | | 13,991 | | | | 10,571 | |
Other Regulatory Assets | | | 481,900 | | | | 484,397 | |
Deferred Charges | | | 5,781 | | | | 5,552 | |
Other Investments | | | 84,495 | | | | 79,365 | |
Goodwill | | | 5,476 | | | | 5,476 | |
Fair Value of Derivative Financial Instruments | | | 85,905 | | | | 76,085 | |
Other | | | 2,418 | | | | 2,836 | |
| | | | | | | | |
Total Other Assets | | | 827,618 | | | | 808,659 | |
| | | | | | | | |
Total Assets | | $ | 5,836,853 | | | $ | 5,221,084 | |
| | | | | | | | |
CAPITALIZATION AND LIABILITIES | | | | | | | | |
Capitalization: | | | | | | | | |
Comprehensive Shareholders’ Equity | | | | | | | | |
Common Stock, $1 Par Value Authorized—200,000,000 Shares; Issued and Outstanding—83,270,363 Shares and 82,812,677 Shares, Respectively | | $ | 83,270 | | | $ | 82,813 | |
Paid in Capital | | | 666,012 | | | | 650,749 | |
Earnings Reinvested in the Business | | | 1,287,898 | | | | 1,206,022 | |
| | | | | | | | |
Total Common Shareholders’ Equity Before Items of Other Comprehensive Loss | | | 2,037,180 | | | | 1,939,584 | |
Accumulated Other Comprehensive Loss | | | (47,940 | ) | | | (47,699 | ) |
| | | | | | | | |
Total Comprehensive Shareholders’ Equity | | | 1,989,240 | | | | 1,891,885 | |
Long-Term Debt, Net of Current Portion | | | 1,149,000 | | | | 899,000 | |
| | | | | | | | |
Total Capitalization | | | 3,138,240 | | | | 2,790,885 | |
| | | | | | | | |
Current and Accrued Liabilities: | | | | | | | | |
Notes Payable to Banks and Commercial Paper | | | 70,200 | | | | 40,000 | |
Current Portion of Long-Term Debt | | | 250,000 | | | | 150,000 | |
Accounts Payable | | | 88,119 | | | | 126,709 | |
Amounts Payable to Customers | | | 17,761 | | | | 15,519 | |
Dividends Payable | | | 30,393 | | | | 29,399 | |
Interest Payable on Long-Term Debt | | | 16,320 | | | | 25,512 | |
Customer Advances | | | 315 | | | | 19,643 | |
Customer Security Deposits | | | 16,847 | | | | 17,321 | |
Other Accruals and Current Liabilities | | | 160,899 | | | | 108,636 | |
Fair Value of Derivative Financial Instruments | | | 16,193 | | | | 9,728 | |
| | | | | | | | |
Total Current and Accrued Liabilities | | | 667,047 | | | | 542,467 | |
| | | | | | | | |
Deferred Credits: | | | | | | | | |
Deferred Income Taxes | | | 1,062,824 | | | | 955,384 | |
Taxes Refundable to Customers | | | 65,554 | | | | 65,543 | |
Unamortized Investment Tax Credit | | | 2,150 | | | | 2,586 | |
Cost of Removal Regulatory Liability | | | 148,668 | | | | 135,940 | |
Other Regulatory Liabilities | | | 39,657 | | | | 17,177 | |
Pension and Other Post-Retirement Liabilities | | | 481,331 | | | | 481,520 | |
Asset Retirement Obligations | | | 78,232 | | | | 75,731 | |
Other Deferred Credits | | | 153,150 | | | | 153,851 | |
| | | | | | | | |
Total Deferred Credits | | | 2,031,566 | | | | 1,887,732 | |
| | | | | | | | |
Commitments and Contingencies | | | — | | | | — | |
| | | | | | | | |
Total Capitalization and Liabilities | | $ | 5,836,853 | | | $ | 5,221,084 | |
| | | | | | | | |
Page 15
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| | | | | | | | |
| | | Nine Months Ended June 30, | |
(Thousands of Dollars) | | 2012 | | | 2011 | |
Operating Activities: | | | | | | | | |
Net Income Available for Common Stock | | $ | 171,275 | | | $ | 221,045 | |
Adjustments to Reconcile Net Income to Net Cash | | | | | | | | |
Provided by Operating Activities: | | | | | | | | |
Gain on Sale of Unconsolidated Subsidiaries | | | — | | | | (50,879 | ) |
Depreciation, Depletion and Amortization | | | 199,925 | | | | 170,617 | |
Deferred Income Taxes | | | 104,948 | | | | 140,326 | |
Excess Tax Costs (Benefits) Associated with Stock-Based Compensation Awards | | | (1,511 | ) | | | 1,224 | |
Other | | | 6,618 | | | | 7,351 | |
Change in: | | | | | | | | |
Hedging Collateral Deposits | | | 16,309 | | | | (26,850 | ) |
Receivables and Unbilled Utility Revenue | | | 23,008 | | | | (25,919 | ) |
Gas Stored Underground and Materials and Supplies | | | 30,853 | | | | 22,387 | |
Unrecovered Purchased Gas Costs | | | (2,100 | ) | | | — | |
Prepayments and Other Current Assets | | | 18,190 | | | | 83,541 | |
Accounts Payable | | | (38,590 | ) | | | 5,506 | |
Amounts Payable to Customers | | | 2,242 | | | | (12,448 | ) |
Customer Advances | | | (19,328 | ) | | | (26,617 | ) |
Customer Security Deposits | | | (474 | ) | | | (648 | ) |
Other Accruals and Current Liabilities | | | 17,083 | | | | 36,446 | |
Other Assets | | | (12,796 | ) | | | 8,582 | |
Other Liabilities | | | 25,338 | | | | (17,382 | ) |
| | | | | | | | |
Net Cash Provided by Operating Activities | | $ | 540,990 | | | $ | 536,282 | |
| | | | | | | | |
Investing Activities: | | | | | | | | |
Capital Expenditures | | $ | (776,896 | ) | | $ | (583,739 | ) |
Net Proceeds from Sale of Unconsolidated Subsidiaries | | | — | | | | 59,365 | |
Net Proceeds from Sale of Oil and Gas Producing Properties | | | — | | | | 69,435 | |
Other | | | (1,267 | ) | | | (2,908 | ) |
| | | | | | | | |
Net Cash Used in Investing Activities | | $ | (778,163 | ) | | $ | (457,847 | ) |
| | | | | | | | |
Financing Activities: | | | | | | | | |
Changes in Notes Payable to Banks and Commercial Paper | | $ | 30,200 | | | $ | — | |
Excess Tax Benefits (Costs) Associated with Stock-Based Compensation Awards | | | 1,511 | | | | (1,224 | ) |
Reduction of Long-Term Debt | | | (150,000 | ) | | | (200,000 | ) |
Net Proceeds From Issuance of Long-Term Debt | | | 496,085 | | | | — | |
Dividends Paid on Common Stock | | | (88,404 | ) | | | (85,201 | ) |
Net Proceeds From Issuance (Repurchase) of Common Stock | | | 8,168 | | | | (4,471 | ) |
| | | | | | | | |
Net Cash Provided By (Used in) Financing Activities | | $ | 297,560 | | | $ | (290,896 | ) |
| | | | | | | | |
Net Increase (Decrease) in Cash and Temporary Cash Investments | | | 60,387 | | | | (212,461 | ) |
Cash and Temporary Cash Investments at Beginning of Period | | | 80,428 | | | | 397,171 | |
| | | | | | | | |
Cash and Temporary Cash Investments at June 30 | | $ | 140,815 | | | $ | 184,710 | |
| | | | | | | | |
Page 16
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Nine Months Ended | |
| | | June 30, | | | June 30, | |
| (Thousands of Dollars, except per share amounts) | | 2012 | | | 2011 | | | Variance | | | 2012 | | | 2011 | | | Variance | |
EXPLORATION AND PRODUCTION SEGMENT | | | | | | | | | | | | | | | | | | | | | | | | |
Total Operating Revenues | | $ | 138,549 | | | $ | 130,974 | | | $ | 7,575 | | | $ | 411,449 | | | $ | 388,571 | | | $ | 22,878 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Operating Expenses: | | | | | | | | | | | | | | | | | | | | | | | | |
Operation and Maintenance: | | | | | | | | | | | | | | | | | | | | | | | | |
General and Administrative Expense | | | 12,952 | | | | 11,342 | | | | 1,610 | | | | 41,253 | | | | 35,330 | | | | 5,923 | |
Lease Operating Expense | | | 20,238 | | | | 17,421 | | | | 2,817 | | | | 59,821 | | | | 53,736 | | | | 6,085 | |
All Other Operation and Maintenance Expense | | | 1,790 | | | | 1,252 | | | | 538 | | | | 4,865 | | | | 5,196 | | | | (331 | ) |
Property, Franchise and Other Taxes | | | 4,264 | | | | 2,114 | | | | 2,150 | | | | 18,998 | | | | 9,634 | | | | 9,364 | |
Depreciation, Depletion and Amortization | | | 52,440 | | | | 36,964 | | | | 15,476 | | | | 136,262 | | | | 110,615 | | | | 25,647 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 91,684 | | | | 69,093 | | | | 22,591 | | | | 261,199 | | | | 214,511 | | | | 46,688 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Operating Income | | | 46,865 | | | | 61,881 | | | | (15,016 | ) | | | 150,250 | | | | 174,060 | | | | (23,810 | ) |
| | | | | | |
Other Income (Expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Interest Income | | | 403 | | | | (10 | ) | | | 413 | | | | 1,070 | | | | (11 | ) | | | 1,081 | |
Other Income | | | — | | | | 1 | | | | (1 | ) | | | — | | | | 1 | | | | (1 | ) |
Other Interest Expense | | | (8,372 | ) | | | (3,817 | ) | | | (4,555 | ) | | | (20,864 | ) | | | (13,825 | ) | | | (7,039 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Income Before Income Taxes | | | 38,896 | | | | 58,055 | | | | (19,159 | ) | | | 130,456 | | | | 160,225 | | | | (29,769 | ) |
Income Tax Expense | | | 16,981 | | | | 25,271 | | | | (8,290 | ) | | | 56,034 | | | | 66,770 | | | | (10,736 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Income | | $ | 21,915 | | | $ | 32,784 | | | $ | (10,869 | ) | | $ | 74,422 | | | $ | 93,455 | | | $ | (19,033 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Income Per Share (Diluted) | | $ | 0.26 | | | $ | 0.39 | | | $ | (0.13 | ) | | $ | 0.89 | | | $ | 1.12 | | | $ | (0.23 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Nine Months Ended | |
| | | June 30, | | | June 30, | |
| | | 2012 | | | 2011 | | | Variance | | | 2012 | | | 2011 | | | Variance | |
PIPELINE AND STORAGE SEGMENT | | | | | | | | | | | | | | | | | | | | | | | | |
Revenues from External Customers | | $ | 36,631 | | | $ | 29,933 | | | $ | 6,698 | | | $ | 113,976 | | | $ | 103,115 | | | $ | 10,861 | |
Intersegment Revenues | | | 22,076 | | | | 20,324 | | | | 1,752 | | | | 64,434 | | | | 60,838 | | | | 3,596 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Operating Revenues | | | 58,707 | | | | 50,257 | | | | 8,450 | | | | 178,410 | | | | 163,953 | | | | 14,457 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Operating Expenses: | | | | | | | | | | | | | | | | | | | | | | | | |
Purchased Gas | | | 65 | | | | 11 | | | | 54 | | | | 193 | | | | (14 | ) | | | 207 | |
Operation and Maintenance | | | 18,486 | | | | 21,643 | | | | (3,157 | ) | | | 58,529 | | | | 61,627 | | | | (3,098 | ) |
Property, Franchise and Other Taxes | | | 5,319 | | | | 5,173 | | | | 146 | | | | 16,232 | | | | 15,781 | | | | 451 | |
Depreciation, Depletion and Amortization | | | 9,563 | | | | 9,567 | | | | (4 | ) | | | 29,546 | | | | 27,796 | | | | 1,750 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 33,433 | | | | 36,394 | | | | (2,961 | ) | | | 104,500 | | | | 105,190 | | | | (690 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Operating Income | | | 25,274 | | | | 13,863 | | | | 11,411 | | | | 73,910 | | | | 58,763 | | | | 15,147 | |
| | | | | | |
Other Income (Expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Interest Income | | | 46 | | | | 73 | | | | (27 | ) | | | 137 | | | | 252 | | | | (115 | ) |
Other Income | | | 524 | | | | 621 | | | | (97 | ) | | | 2,031 | | | | 1,336 | | | | 695 | |
Other Interest Expense | | | (6,381 | ) | | | (6,423 | )�� | | | 42 | | | | (19,279 | ) | | | (19,505 | ) | | | 226 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Income Before Income Taxes | | | 19,463 | | | | 8,134 | | | | 11,329 | | | | 56,799 | | | | 40,846 | | | | 15,953 | |
Income Tax Expense | | | 6,836 | | | | 3,631 | | | | 3,205 | | | | 21,371 | | | | 16,810 | | | | 4,561 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Income | | $ | 12,627 | | | $ | 4,503 | | | $ | 8,124 | | | $ | 35,428 | | | $ | 24,036 | | | $ | 11,392 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Income Per Share (Diluted) | | $ | 0.15 | | | $ | 0.05 | | | $ | 0.10 | | | $ | 0.42 | | | $ | 0.29 | | | $ | 0.13 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Page 17
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Nine Months Ended | |
| | | June 30, | | | June 30, | |
| (Thousands of Dollars, except per share amounts) | | 2012 | | | 2011 | | | Variance | | | 2012 | | | 2011 | | | Variance | |
UTILITY SEGMENT | | | | | | | | | | | | | | | | | | | | | | | | |
Revenues from External Customers | | $ | 117,240 | | | $ | 146,215 | | | $ | (28,975 | ) | | $ | 622,836 | | | $ | 750,802 | | | $ | (127,966 | ) |
Intersegment Revenues | | | 2,703 | | | | 3,475 | | | | (772 | ) | | | 12,643 | | | | 14,680 | | | | (2,037 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Operating Revenues | | | 119,943 | | | | 149,690 | | | | (29,747 | ) | | | 635,479 | | | | 765,482 | | | | (130,003 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Operating Expenses: | | | | | | | | | | | | | | | | | | | | | | | | |
Purchased Gas | | | 41,628 | | | | 68,667 | | | | (27,039 | ) | | | 316,877 | | | | 429,716 | | | | (112,839 | ) |
Operation and Maintenance | | | 40,719 | | | | 42,524 | | | | (1,805 | ) | | | 144,701 | | | | 146,549 | | | | (1,848 | ) |
Property, Franchise and Other Taxes | | | 10,057 | | | | 11,031 | | | | (974 | ) | | | 32,627 | | | | 34,933 | | | | (2,306 | ) |
Depreciation, Depletion and Amortization | | | 11,437 | | | | 10,363 | | | | 1,074 | | | | 32,503 | | | | 30,986 | | | | 1,517 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 103,841 | | | | 132,585 | | | | (28,744 | ) | | | 526,708 | | | | 642,184 | | | | (115,476 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Operating Income | | | 16,102 | | | | 17,105 | | | | (1,003 | ) | | | 108,771 | | | | 123,298 | | | | (14,527 | ) |
| | | | | | |
Other Income (Expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Interest Income | | | 99 | | | | 38 | | | | 61 | | | | 820 | | | | 485 | | | | 335 | |
Other Income | | | (5 | ) | | | 300 | | | | (305 | ) | | | 671 | | | | 897 | | | | (226 | ) |
Other Interest Expense | | | (8,110 | ) | | | (8,659 | ) | | | 549 | | | | (24,509 | ) | | | (26,247 | ) | | | 1,738 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Income Before Income Taxes | | | 8,086 | | | | 8,784 | | | | (698 | ) | | | 85,753 | | | | 98,433 | | | | (12,680 | ) |
Income Tax Expense | | | 2,990 | | | | 2,456 | | | | 534 | | | | 33,028 | | | | 36,034 | | | | (3,006 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Income | | $ | 5,096 | | | $ | 6,328 | | | $ | (1,232 | ) | | $ | 52,725 | | | $ | 62,399 | | | $ | (9,674 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Income Per Share (Diluted) | | $ | 0.06 | | | $ | 0.08 | | | $ | (0.02 | ) | | $ | 0.63 | | | $ | 0.74 | | | $ | (0.11 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Nine Months Ended | |
| | | June 30, | | | June 30, | |
| | | 2012 | | | 2011 | | | Variance | | | 2012 | | | 2011 | | | Variance | |
ENERGY MARKETING SEGMENT | | | | | | | | | | | | | | | | | | | | | | | | |
Revenues from External Customers | | $ | 35,377 | | | $ | 71,746 | | | $ | (36,369 | ) | | $ | 161,822 | | | $ | 246,719 | | | $ | (84,897 | ) |
Intersegment Revenues | | | 579 | | | | 156 | | | | 423 | | | | 1,135 | | | | 156 | | | | 979 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Operating Revenues | | | 35,956 | | | | 71,902 | | | | (35,946 | ) | | | 162,957 | | | | 246,875 | | | | (83,918 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Operating Expenses: | | | | | | | | | | | | | | | | | | | | | | | | |
Purchased Gas | | | 33,114 | | | | 67,711 | | | | (34,597 | ) | | | 150,475 | | | | 227,716 | | | | (77,241 | ) |
Operation and Maintenance | | | 1,347 | | | | 1,415 | | | | (68 | ) | | | 4,920 | | | | 4,553 | | | | 367 | |
Property, Franchise and Other Taxes | | | 36 | | | | 8 | | | | 28 | | | | 60 | | | | 34 | | | | 26 | |
Depreciation, Depletion and Amortization | | | 22 | | | | 9 | | | | 13 | | | | 69 | | | | 28 | | | | 41 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 34,519 | | | | 69,143 | | | | (34,624 | ) | | | 155,524 | | | | 232,331 | | | | (76,807 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Operating Income | | | 1,437 | | | | 2,759 | | | | (1,322 | ) | | | 7,433 | | | | 14,544 | | | | (7,111 | ) |
| | | | | | |
Other Income (Expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Interest Income | | | 59 | | | | 36 | | | | 23 | | | | 127 | | | | 72 | | | | 55 | |
Other Income | | | 25 | | | | 27 | | | | (2 | ) | | | 88 | | | | 61 | | | | 27 | |
Other Interest Expense | | | (9 | ) | | | (4 | ) | | | (5 | ) | | | (17 | ) | | | (15 | ) | | | (2 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Income Before Income Taxes | | | 1,512 | | | | 2,818 | | | | (1,306 | ) | | | 7,631 | | | | 14,662 | | | | (7,031 | ) |
Income Tax Expense | | | 589 | | | | 927 | | | | (338 | ) | | | 2,969 | | | | 5,540 | | | | (2,571 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Income | | $ | 923 | | | $ | 1,891 | | | $ | (968 | ) | | $ | 4,662 | | | $ | 9,122 | | | $ | (4,460 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Income Per Share (Diluted) | | $ | 0.01 | | | $ | 0.02 | | | $ | (0.01 | ) | | $ | 0.06 | | | $ | 0.11 | | | $ | (0.05 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Page 18
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Nine Months Ended | |
| | | June 30, | | | June 30, | |
| (Thousands of Dollars, except per share amounts) | | 2012 | | | 2011 | | | Variance | | | 2012 | | | 2011 | | | Variance | |
ALL OTHER | | | | | | | | | | | | | | | | | | | | | | | | |
Revenues from External Customers | | $ | 824 | | | $ | 1,873 | | | $ | (1,049 | ) | | $ | 2,784 | | | $ | 2,895 | | | $ | (111 | ) |
Intersegment Revenues | | | 4,307 | | | | 2,810 | | | | 1,497 | | | | 10,828 | | | | 7,026 | | | | 3,802 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Operating Revenues | | | 5,131 | | | | 4,683 | | | | 448 | | | | 13,612 | | | | 9,921 | | | | 3,691 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Operating Expenses: | | | | | | | | | | | | | | | | | | | | | | | | |
Purchased Gas | | | — | | | | — | | | | — | | | | — | | | | 48 | | | | (48 | ) |
Operation and Maintenance | | | 876 | | | | 944 | | | | (68 | ) | | | 2,794 | | | | 3,130 | | | | (336 | ) |
Property, Franchise and Other Taxes | | | 205 | | | | 90 | | | | 115 | | | | 569 | | | | 490 | | | | 79 | |
Depreciation, Depletion and Amortization | | | 567 | | | | 203 | | | | 364 | | | | 959 | | | | 630 | | | | 329 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 1,648 | | | | 1,237 | | | | 411 | | | | 4,322 | | | | 4,298 | | | | 24 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Operating Income | | | 3,483 | | | | 3,446 | | | | 37 | | | | 9,290 | | | | 5,623 | | | | 3,667 | |
| | | | | | |
Other Income (Expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Gain on Sale of Unconsolidated Subsidiaries | | | — | | | | — | | | | — | | | | — | | | | 50,879 | | | | (50,879 | ) |
Interest Income | | | 38 | | | | 48 | | | | (10 | ) | | | 136 | | | | 197 | | | | (61 | ) |
Other Income | | | (70 | ) | | | 177 | | | | (247 | ) | | | (220 | ) | | | (409 | ) | | | 189 | |
Other Interest Expense | | | (427 | ) | | | (541 | ) | | | 114 | | | | (1,290 | ) | | | (1,637 | ) | | | 347 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Income Before Income Taxes | | | 3,024 | | | | 3,130 | | | | (106 | ) | | | 7,916 | | | | 54,653 | | | | (46,737 | ) |
Income Tax Expense | | | 209 | | | | 417 | | | | (208 | ) | | | 2,359 | | | | 20,333 | | | | (17,974 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Income | | $ | 2,815 | | | $ | 2,713 | | | $ | 102 | | | $ | 5,557 | | | $ | 34,320 | | | $ | (28,763 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Income Per Share (Diluted) | | $ | 0.04 | | | $ | 0.03 | | | $ | 0.01 | | | $ | 0.07 | | | $ | 0.41 | | | $ | (0.34 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Page 19
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Nine Months Ended | |
| | | June 30, | | | June 30, | |
| (Thousands of Dollars, except per share amounts) | | 2012 | | | 2011 | | | Variance | | | 2012 | | | 2011 | | | Variance | |
CORPORATE | | | | | | | | | | | | | | | | | | | | | | | | |
Revenues from External Customers | | $ | 240 | | | $ | 238 | | | $ | 2 | | | $ | 726 | | | $ | 706 | | | $ | 20 | |
Intersegment Revenues | | | 780 | | | | 1,028 | | | | (248 | ) | | | 2,837 | | | | 2,955 | | | | (118 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Operating Revenues | | | 1,020 | | | | 1,266 | | | | (246 | ) | | | 3,563 | | | | 3,661 | | | | (98 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Operating Expenses: | | | | | | | | | | | | | | | | | | | | | | | | |
Operation and Maintenance | | | 3,139 | | | | 3,565 | | | | (426 | ) | | | 10,195 | | | | 10,574 | | | | (379 | ) |
Property, Franchise and Other Taxes | | | 551 | | | | 1,763 | | | | (1,212 | ) | | | 1,652 | | | | 2,842 | | | | (1,190 | ) |
Depreciation, Depletion and Amortization | | | 198 | | | | 187 | | | | 11 | | | | 586 | | | | 562 | | | | 24 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 3,888 | | | | 5,515 | | | | (1,627 | ) | | | 12,433 | | | | 13,978 | | | | (1,545 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Operating Loss | | | (2,868 | ) | | | (4,249 | ) | | | 1,381 | | | | (8,870 | ) | | | (10,317 | ) | | | 1,447 | |
| | | | | | |
Other Income (Expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Interest Income | | | 22,799 | | | | 18,897 | | | | 3,902 | | | | 65,568 | | | | 58,717 | | | | 6,851 | |
Other Income | | | 612 | | | | 687 | | | | (75 | ) | | | 1,506 | | | | 2,244 | | | | (738 | ) |
Interest Expense on Long-Term Debt | | | (21,529 | ) | | | (17,876 | ) | | | (3,653 | ) | | | (60,594 | ) | | | (55,994 | ) | | | (4,600 | ) |
Other Interest Expense | | | (583 | ) | | | (472 | ) | | | (111 | ) | | | (3,064 | ) | | | (1,220 | ) | | | (1,844 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Loss Before Income Taxes | | | (1,569 | ) | | | (3,013 | ) | | | 1,444 | | | | (5,454 | ) | | | (6,570 | ) | | | 1,116 | |
Income Tax Benefit | | | (1,377 | ) | | | (1,685 | ) | | | 308 | | | | (3,935 | ) | | | (4,283 | ) | | | 348 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Loss | | $ | (192 | ) | | $ | (1,328 | ) | | $ | 1,136 | | | $ | (1,519 | ) | | $ | (2,287 | ) | | $ | 768 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Loss Per Share (Diluted) | | $ | — | | | $ | (0.01 | ) | | $ | 0.01 | | | $ | (0.02 | ) | | $ | (0.03 | ) | | $ | 0.01 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Nine Months Ended | |
| | | June 30, | | | June 30, | |
| | | 2012 | | | 2011 | | | Variance | | | 2012 | | | 2011 | | | Variance | |
INTERSEGMENT ELIMINATIONS | | | | | | | | | | | | | | | | | | | | | | | | |
Intersegment Revenues | | $ | (30,445 | ) | | $ | (27,793 | ) | | $ | (2,652 | ) | | $ | (91,877 | ) | | $ | (85,655 | ) | | $ | (6,222 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Operating Expenses: | | | | | | | | | | | | | | | | | | | | | | | | |
Purchased Gas | | | (24,647 | ) | | | (23,664 | ) | | | (983 | ) | | | (76,656 | ) | | | (75,108 | ) | | | (1,548 | ) |
Operation and Maintenance | | | (5,798 | ) | | | (4,129 | ) | | | (1,669 | ) | | | (15,221 | ) | | | (10,547 | ) | | | (4,674 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | (30,445 | ) | | | (27,793 | ) | | | (2,652 | ) | | | (91,877 | ) | | | (85,655 | ) | | | (6,222 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Operating Income | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | |
Other Income (Expense): | | | | | | | | | | | | | | | | | | | | | | | | |
Interest Income | | | (23,054 | ) | | | (18,757 | ) | | | (4,297 | ) | | | (66,172 | ) | | | (58,435 | ) | | | (7,737 | ) |
Other Interest Expense | | | 23,054 | | | | 18,757 | | | | 4,297 | | | | 66,172 | | | | 58,435 | | | | 7,737 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Income | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Income Per Share (Diluted) | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Page 20
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT INFORMATION (Continued)
(Thousands of Dollars)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Nine Months Ended | |
| | | June 30, | | | June 30, | |
| | | (Unaudited) | | | (Unaudited) | |
| | | 2012 | | | 2011 | | | Increase
(Decrease) | | | 2012 | | | 2011 | | | Increase
(Decrease) | |
Capital Expenditures: | | | | | | | | | | | | | | | | | | | | | | | | |
Exploration and Production | | $ | 189,429 | (1)(2) | | $ | 158,321 | (3)(4) | | $ | 31,108 | | | $ | 598,560 | (1)(2) | | $ | 473,515 | (3)(4) | | $ | 125,045 | |
Pipeline and Storage | | | 34,032 | (1)(2) | | | 35,471 | (3) | | | (1,439 | ) | | | 97,253 | (1)(2) | | | 74,969 | (3) | | | 22,284 | |
Utility | | | 14,518 | | | | 13,994 | | | | 524 | | | | 39,858 | | | | 39,429 | | | | 429 | |
Energy Marketing | | | 154 | | | | 68 | | | | 86 | | | | 420 | | | | 329 | | | | 91 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Reportable Segments | | | 238,133 | | | | 207,854 | | | | 30,279 | | | | 736,091 | | | | 588,242 | | | | 147,849 | |
All Other | | | 23,151 | (1)(2) | | | 4,018 | | | | 19,133 | | | | 66,788 | (1)(2) | | | 6,287 | | | | 60,501 | |
Corporate | | | 121 | | | | 193 | | | | (72 | ) | | | 291 | | | | 208 | | | | 83 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Capital Expenditures | | $ | 261,405 | | | $ | 212,065 | | | $ | 49,340 | | | $ | 803,170 | | | $ | 594,737 | | | $ | 208,433 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| (1) | Capital expenditures for the quarter and nine months ended June 30, 2012 include $74.2 million of accrued capital expenditures in the Exploration and Production segment, the majority of which was in the Appalachian region, $8.0 million of accrued capital expenditures in the Pipeline and Storage segment, and $16.2 million of accrued capital expenditures in the All Other category. These amounts have been excluded from the Consolidated Statement of Cash Flows at June 30, 2012 since they represent non-cash investing activities at that date. |
| (2) | Capital expenditures for the nine months ended June 30, 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 nine months ended June 30, 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 June 30, 2012. |
| (3) | Capital expenditures for the quarter and nine months ended June 30, 2011 include $60.7 million of accrued capital expenditures in the Exploration and Production segment, the majority of which was in the Appalachian region, and $5.9 million of accrued capital expenditures in the Pipeline and Storage segment. These amounts were excluded from the Consolidated Statement of Cash Flows at June 30, 2011 since they represented non-cash investing activities at that date. |
| (4) | Capital expenditures for the Exploration and Production segment for the nine months ended June 30, 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 nine months ended June 30, 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 June 30, 2011. |
DEGREE DAYS
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | Percent Colder | |
| | | | | | | | | | | | (Warmer) Than: | |
| | | Normal | | | 2012 | | | 2011 | | | Normal (1) | | | Last Year (1) | |
Three Months Ended June 30 | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Buffalo, NY | | | 927 | | | | 751 | | | | 848 | | | | (19.0 | ) | | | (11.4 | ) |
Erie, PA | | | 885 | | | | 751 | | | | 814 | | | | (15.1 | ) | | | (7.7 | ) |
| | | | | |
Nine Months Ended June 30 | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Buffalo, NY | | | 6,551 | | | | 5,171 | | | | 6,674 | | | | (21.1 | ) | | | (22.5 | ) |
Erie, PA | | | 6,142 | | | | 4,875 | | | | 6,286 | | | | (20.6 | ) | | | (22.4 | ) |
| (1) | Percents compare actual 2012 degree days to normal degree days and actual 2012 degree days to actual 2011 degree days. |
Page 21
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
EXPLORATION AND PRODUCTION INFORMATION
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Nine Months Ended | |
| | | June 30, | | | June 30, | |
| | | | | | | | | Increase | | | | | | | | | Increase | |
| | | 2012 | | | 2011 | | | (Decrease) | | | 2012 | | | 2011 | | | (Decrease) | |
Gas Production/Prices: | | | | | | | | | | | | | | | | | | | | | | | | |
Production (MMcf) | | | | | | | | | | | | | | | | | | | | | | | | |
Appalachia | | | 16,778 | | | | 12,090 | | | | 4,688 | | | | 43,125 | | | | 31,020 | | | | 12,105 | |
West Coast | | | 1,025 | | | | 826 | | | | 199 | | | | 2,670 | | | | 2,616 | | | | 54 | |
Gulf Coast | | | — | | | | 22 | | | | (22 | ) | | | — | | | | 4,092 | | | | (4,092 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Production | | | 17,803 | | | | 12,938 | | | | 4,865 | | | | 45,795 | | | | 37,728 | | | | 8,067 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Average Prices (Per Mcf) | | | | | | | | | | | | | | | | | | | | | | | | |
Appalachia | | $ | 2.14 | | | $ | 4.55 | | | $ | (2.41 | ) | | $ | 2.70 | | | $ | 4.36 | | | $ | (1.66 | ) |
West Coast | | | 2.97 | | | | 4.87 | | | | (1.90 | ) | | | 3.74 | | | | 4.40 | | | | (0.66 | ) |
Gulf Coast | | | N/M | | | | N/M | | | | N/M | | | | N/M | | | | 5.02 | | | | N/M | |
Weighted Average | | | 2.19 | | | | 4.67 | | | | (2.48 | ) | | | 2.76 | | | | 4.44 | | | | (1.68 | ) |
Weighted Average after Hedging | | | 3.93 | | | | 5.48 | | | | (1.55 | ) | | | 4.40 | | | | 5.36 | | | | (0.96 | ) |
| | | | | | |
Oil Production/Prices: | | | | | | | | | | | | | | | | | | | | | | | | |
Production (Thousands of Barrels) | | | | | | | | | | | | | | | | | | | | | | | | |
Appalachia | | | 11 | | | | 13 | | | | (2 | ) | | | 29 | | | | 35 | | | | (6 | ) |
West Coast | | | 710 | | | | 661 | | | | 49 | | | | 2,136 | | | | 1,958 | | | | 178 | |
Gulf Coast | | | — | | | | (9 | )(1) | | | 9 | | | | — | | | | 187 | | | | (187 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Production | | | 721 | | | | 665 | | | | 56 | | | | 2,165 | | | | 2,180 | | | | (15 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Average Prices (Per Barrel) | | | | | | | | | | | | | | | | | | | | | | | | |
Appalachia | | $ | 95.43 | | | $ | 92.89 | | | $ | 2.54 | | | $ | 94.24 | | | $ | 87.36 | | | $ | 6.88 | |
West Coast | | | 104.24 | | | | 108.30 | | | | (4.06 | ) | | | 108.56 | | | | 94.74 | | | | 13.82 | |
Gulf Coast | | | N/M | | | | N/M | | | | N/M | | | | N/M | | | | 88.57 | | | | N/M | |
Weighted Average | | | 104.11 | | | | 107.97 | | | | (3.86 | ) | | | 108.37 | | | | 94.10 | | | | 14.27 | |
Weighted Average after Hedging | | | 89.70 | | | | 84.37 | | | | 5.33 | | | | 91.50 | | | | 80.78 | | | | 10.72 | |
| | | | | | |
Total Production (Mmcfe) | | | 22,129 | | | | 16,928 | | | | 5,201 | | | | 58,785 | | | | 50,808 | | | | 7,977 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Selected Operating Performance Statistics: | | | | | | | | | | | | | | | | | | | | | | | | |
General & Administrative Expense per Mcfe(2) | | $ | 0.59 | | | $ | 0.67 | | | $ | (0.08 | ) | | $ | 0.70 | | | $ | 0.70 | | | $ | — | |
Lease Operating Expense per Mcfe(2) | | $ | 0.91 | | | $ | 1.03 | | | $ | (0.12 | ) | | $ | 1.02 | | | $ | 1.06 | | | $ | (0.04 | ) |
Depreciation, Depletion & Amortization per Mcfe(2) | | $ | 2.37 | | | $ | 2.18 | | | $ | 0.19 | | | $ | 2.32 | | | $ | 2.18 | | | $ | 0.14 | |
| (1) | The sale of Gulf Coast properties in April 2011 and various adjustments to prior months' production resulted in negative oil production. |
| (2) | 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. |
Page 22
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
EXPLORATION AND PRODUCTION INFORMATION
Hedging Summary for the Remaining Three Months of Fiscal 2012
| | | | | | | | |
SWAPS | | Volume | | | Average Hedge Price | |
Oil | | | 0.4 MMBBL | | | $ | 77.03 / BBL | |
Gas | | | 12.4 BCF | | | $ | 4.99 / MCF | |
Hedging Summary for Fiscal 2013
| | | | | | | | |
SWAPS | | Volume | | | Average Hedge Price | |
Oil | | | 1.5 MMBBL | | | $ | 92.52 / BBL | |
Gas | | | 46.7 BCF | | | $ | 4.82 / MCF | |
Hedging Summary for Fiscal 2014
| | | | | | | | |
SWAPS | | Volume | | | Average Hedge Price | |
Oil | | | 0.6 MMBBL | | | $ | 95.68 / BBL | |
Gas | | | 27.4 BCF | | | $ | 4.26 / MCF | |
Hedging Summary for Fiscal 2015
| | | | | | | | |
SWAPS | | Volume | | | Average Hedge Price | |
Gas | | | 17.8 BCF | | | $ | 4.07 / MCF | |
Hedging Summary for Fiscal 2016
| | | | | | | | |
SWAPS | | Volume | | | Average Hedge Price | |
Gas | | | 17.9 BCF | | | $ | 4.07 / MCF | |
Hedging Summary for Fiscal 2017
| | | | | | | | |
SWAPS | | Volume | | | Average Hedge Price | |
Gas | | | 17.9 BCF | | | $ | 4.07 / MCF | |
Gross Wells in Process of Drilling
Nine Months Ended June 30, 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 | | | 50.00 | | | | 57.00 | | | | 107.00 | |
Wells Completed | | | | | | | | | | | | |
Exploratory | | | 7.00 | | | | 0.00 | | | | 7.00 | |
Developmental | | | 55.00 | | | | 56.00 | | | | 111.00 | |
Wells Plugged & Abandoned | | | | | | | | | | | | |
Exploratory | | | 0.00 | | | | 0.00 | | | | 0.00 | |
Developmental | | | 2.00 | | | | 0.00 | | | | 2.00 | |
Wells in Process—End of Period | | | | | | | | | | | | |
Exploratory | | | 1.00 | | | | 0.00 | | | | 1.00 | |
Developmental | | | 94.00 | | | | 1.00 | | | | 95.00 | |
| (1) | Beginning of year number has been adjusted to remove one developmental well. |
Net Wells in Process of Drilling
Nine Months Ended June 30, 2012
| | | | | | | | | | | | |
| | | | | | | | | Total | |
| | | East | | | West | | | 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 | | | 40.00 | | | | 56.99 | | | | 96.99 | |
Wells Completed | | | | | | | | | | | | |
Exploratory | | | 7.00 | | | | 0.00 | | | | 7.00 | |
Developmental | | | 38.50 | | | | 55.99 | | | | 94.49 | |
Wells Plugged & Abandoned | | | | | | | | | | | | |
Exploratory | | | 0.00 | | | | 0.00 | | | | 0.00 | |
Developmental | | | 2.00 | | | | 0.00 | | | | 2.00 | |
Wells in Process—End of Period | | | | | | | | | | | | |
Exploratory | | | 1.00 | | | | 0.00 | | | | 1.00 | |
Developmental | | | 67.50 | | | | 1.00 | | | | 68.50 | |
| (2) | Beginning of year number has been adjusted to remove one developmental well. |
Page 23
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
EXPLORATION AND PRODUCTION INFORMATION
Updated Fiscal 2013 Financial & Operating Guidance
| | |
| | | Guidance |
Total Production (Bcfe) | | 92 - 105 |
| |
Production by Division (Bcfe) | | |
East | | 72 - 83 |
West | | 20 - 22 |
| |
Cost and Expenses $ per Mcfe | | |
Lease Operating Expenses | | $0.90 - $1.10 |
Depreciation, Depletion and Amortization | | $2.30 - $2.40 |
Other Taxes | | $0.15 - $0.25 |
| |
Other Operating Expenses (in millions) | | $7 - $9 |
General and Administrative (in millions) | | $59 - $63 |
| |
Capital Investment by Division (in millions) | | |
| |
East Division | | $340 - $425 |
West Division | | $60 - $75 |
Exploration & Production Segment Total | | $400 - $500 |
Updated Pricing Guidance for Fiscal 2013
Guidance Based on Crude Oil Average 2012 NYMEX Price ($/Bbl) (without hedges) of $85.00
| | | | |
Forecast price differentials | | | | |
West | | +$ | 5.00 to +$10.00 | |
Guidance Based on Natural Gas Average 2012 NYMEX Price ($/MMBtu) (without hedges) of $3.25
| | | | |
Forecast price differentials | | | | |
East | | -$ | 0.10 to -$0.20 | |
West | | +$ | 0.10 to +$0.20 | |
Earnings per share sensitivity to changes from prices used in guidance* ^
| | | | | | | | | | | | |
| | | $0.50 change per MMBtu gas | | $5 change per Bbl oil | |
| | | Increase | | Decrease | | Increase | | | Decrease | |
| | +$0.13 | | -$0.13 | | +$ | 0.05 | | | -$ | 0.05 | |
| * | Please refer to forward looking statement footnote beginning at page 7 of this document. |
| ^ | This sensitivity table is current as of August 2, 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 2013 earnings forecast, the Company is utilizing flat NYMEX equivalent commodity pricing, exclusive of basis differential, of $3.25 per MMBtu for natural gas and $85 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 24
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
Pipeline & Storage Throughput—(millions of cubic feet—MMcf)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Nine Months Ended | |
| | | June 30, | | | June 30, | |
| | | | | | | | | Increase | | | | | | | | | Increase | |
| | | 2012 | | | 2011 | | | (Decrease) | | | 2012 | | | 2011 | | | (Decrease) | |
Firm Transportation—Affiliated | | | 17,507 | | | | 17,538 | | | | (31 | ) | | | 81,174 | | | | 95,884 | | | | (14,710 | ) |
Firm Transportation—Non-Affiliated | | | 62,414 | | | | 35,788 | | | | 26,626 | | | | 200,405 | | | | 170,661 | | | | 29,744 | |
Interruptible Transportation | | | 247 | | | | 489 | | | | (242 | ) | | | 1,511 | | | | 1,709 | | | | (198 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 80,168 | | | | 53,815 | | | | 26,353 | | | | 283,090 | | | | 268,254 | | | | 14,836 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Utility Throughput—(MMcf)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Nine Months Ended | |
| | | June 30, | | | June 30, | |
| | | | | | | | | Increase | | | | | | | | | Increase | |
| | | 2012 | | | 2011 | | | (Decrease) | | | 2012 | | | 2011 | | | (Decrease) | |
Retail Sales: | | | | | | | | | | | | | | | | | | | | | | | | |
Residential Sales | | | 7,543 | | | | 8,867 | | | | (1,324 | ) | | | 43,476 | | | | 54,075 | | | | (10,599 | ) |
Commercial Sales | | | 954 | | | | 1,203 | | | | (249 | ) | | | 6,109 | | | | 8,044 | | | | (1,935 | ) |
Industrial Sales | | | 168 | | | | 79 | | | | 89 | | | | 456 | | | | 618 | | | | (162 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 8,665 | | | | 10,149 | | | | (1,484 | ) | | | 50,041 | | | | 62,737 | | | | (12,696 | ) |
Off-System Sales | | | — | | | | 867 | | | | (867 | ) | | | 9,544 | | | | 6,188 | | | | 3,356 | |
Transportation | | | 12,016 | | | | 12,335 | | | | (319 | ) | | | 51,663 | | | | 57,916 | | | | (6,253 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 20,681 | | | | 23,351 | | | | (2,670 | ) | | | 111,248 | | | | 126,841 | | | | (15,593 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Energy Marketing Volumes
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Nine Months Ended | |
| | | June 30, | | | June 30, | |
| | | | | | | | | Increase | | | | | | | | | Increase | |
| | | 2012 | | | 2011 | | | (Decrease) | | | 2012 | | | 2011 | | | (Decrease) | |
Natural Gas (MMcf) | | | 10,818 | | | | 13,508 | | | | (2,690 | ) | | | 38,857 | | | | 45,863 | | | | (7,006 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Page 25
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
| | | | | | | | |
| | | 2012 | | | 2011 | |
Quarter Ended June 30 (unaudited) | | | | | | | | |
| | |
Operating Revenues | | $ | 328,861,000 | | | $ | 380,979,000 | |
| | | | | | | | |
Net Income Available for Common Stock | | $ | 43,184,000 | | | $ | 46,891,000 | |
| | | | | | | | |
Earnings Per Common Share: | | | | | | | | |
Basic | | $ | 0.52 | | | $ | 0.57 | |
| | | | | | | | |
Diluted | | $ | 0.52 | | | $ | 0.56 | |
| | | | | | | | |
Weighted Average Common Shares: | | | | | | | | |
Used in Basic Calculation | | | 83,227,602 | | | | 82,687,467 | |
| | | | | | | | |
Used in Diluted Calculation | | | 83,674,823 | | | | 83,782,493 | |
| | | | | | | | |
Nine Months Ended June 30 (unaudited) | | | | | | | | |
| | |
Operating Revenues | | $ | 1,313,593,000 | | | $ | 1,492,808,000 | |
| | | | | | | | |
Net Income Available for Common Stock | | $ | 171,275,000 | | | $ | 221,045,000 | |
| | | | | | | | |
Earnings Per Common Share: | | | | | | | | |
Basic | | $ | 2.06 | | | $ | 2.68 | |
| | | | | | | | |
Diluted | | $ | 2.05 | | | $ | 2.64 | |
| | | | | | | | |
Weighted Average Common Shares: | | | | | | | | |
Used in Basic Calculation | | | 83,068,083 | | | | 82,436,603 | |
| | | | | | | | |
Used in Diluted Calculation | | | 83,690,436 | | | | 83,649,498 | |
| | | | | | | | |
Twelve Months Ended June 30 (unaudited) | | | | | | | | |
| | |
Operating Revenues | | $ | 1,599,626,000 | | | $ | 1,779,205,000 | |
| | | | | | | | |
Income from Continuing Operations | | $ | 208,631,000 | | | $ | 253,438,000 | |
Income from Discontinued Operations, Net of Tax | | | — | | | | 6,009,000 | |
| | | | | | | | |
Net Income Available for Common Stock | | $ | 208,631,000 | | | $ | 259,447,000 | |
| | | | | | | | |
Earnings Per Common Share: | | | | | | | | |
Basic: | | | | | | | | |
Income from Continuing Operations | | $ | 2.51 | | | $ | 3.08 | |
Income from Discontinued Operations | | | — | | | | 0.07 | |
| | | | | | | | |
Net Income Available for Common Stock | | $ | 2.51 | | | $ | 3.15 | |
| | | | | | | | |
Diluted: | | | | | | | | |
Income from Continuing Operations | | $ | 2.49 | | | $ | 3.04 | |
Income from Discontinued Operations | | | — | | | | 0.07 | |
| | | | | | | | |
Net Income Available for Common Stock | | $ | 2.49 | | | $ | 3.11 | |
| | | | | | | | |
Weighted Average Common Shares: | | | | | | | | |
Used in Basic Calculation | | | 82,986,564 | | | | 82,321,791 | |
| | | | | | | | |
Used in Diluted Calculation | | | 83,717,869 | | | | 83,508,416 | |
| | | | | | | | |
