Indiana Energy, Inc. and Subsidiary Companies
Highlights December 31, December 31,
(Unaudited) 1999 1998
------------------- ----------- ------------
Basic and Diluted Earnings Per
Average Share:
Three Months Ended -
Indiana Gas $0.37 $0.42
IEI Investments ($0.02) $0.04
IEI Services/Other $0.03 $0.02
-------- --------
Total $0.38 $0.48
Twelve Months Ended -
Indiana Gas $1.00 $0.89
IEI Investments $0.16 $0.20
IEI Services/Other $0.14 $0.11
-------- --------
Total $1.30 $1.20
Dividends Paid (per common share,
12 months) $0.95 $0.91
Annualized Dividend $0.97 $0.93
Dividend Yield (at close) 5.5% 3.8%
Dividend Payout Ratio 73.1% 75.8%
Dividend to Book Value 9.1% 9.0%
Return on Average Shareholder Equity 12.4% 11.8%
Book Value Per Share $10.62 $10.34
Market to Book Value 167% 238%
Common Stock Prices (IEI - NYSE)
High (12 Month) $24.63 $26.38
Low (12 Month) $17.63 $19.59
Close $17.75 $24.63
Price/Earnings Ratio 13.7 20.5
Ratio of Earnings to Fixed Charges
- SEC Method
Consolidated 4.1 4.2
Utility 3.6 3.5
Percent Inernally Generated Funds -
Utility 57% 59%
Credit Ratings:
Indiana Gas AA- / Aa2 AA- / Aa2
Indiana Energy A+ / Aa3 A+ / Aa3
For 3 Months For 12 Months
SELECTED UTILITY Ended December 31 Ended December 31
OPERATING STATISTICS --------------------- -------------------
(Unaudited) 1999 1998 1999 1998
------------------ ------ ------ ------ ------
WEATHER AS A PERCENT OF NORMAL: 83% 83% 87% 79%
MARGIN (Thousands):
Operating Revenues $137,247 $124,947 $431,361 $420,459
Cost of Gas 79,063 67,937 226,817 231,889
--------- --------- --------- ---------
Margin $58,184 $57,010 $204,544 $188,570
========= ========= ========= =========
GAS SOLD & TRANSPORTED (Mdth):
Residential 14,039 13,506 43,447 38,809
Commercial 5,042 5,163 17,029 15,610
Contract 15,559 15,175 58,385 55,181
--------- --------- --------- ---------
34,640 33,844 118,861 109,600
========= ========= ========= =========
OPERATING REVENUES (Thousands):
Residential $93,852 $84,970 $284,260 $271,656
Commercial 29,731 28,471 96,696 94,261
Contract 12,408 10,319 45,291 48,540
Miscellaneous Revenue 1,256 1,187 5,114 6,002
--------- --------- --------- ---------
$137,247 $124,947 $431,361 $420,459
========= ========= ========= =========
AVERAGE CUSTOMERS:
Residential 459,822 449,542 455,385 444,614
Commercial 46,632 45,894 46,542 45,703
Contract 1,025 1,024 1,031 1,054
--------- --------- --------- ---------
507,479 496,460 502,958 491,371
========= ========= ========= =========
INDIANA ENERGY, INC.
AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
ASSETS
(Thousands - Unaudited)
December 31 September 30
1999 1998 1999
------- ------- -------
CURRENT ASSETS:
Cash and cash equivalents $1,255 $20 $20
Accounts receivable, less
reserves of $1,739, $1,749
and $733 respectively 37,256 28,610 16,895
Note receivable - - 300
Accrued unbilled revenues 36,634 40,577 8,136
Liquefied petroleum gas -
at average cost 815 892 810
Gas in underground storage -
at last-in, first-out cost 11,627 18,150 9,501
Prepaid gas delivery service 20,937 - 25,810
Prepayments and other 14,926 10,734 13,179
--------- --------- ---------
123,450 98,983 74,651
--------- --------- ---------
INVESTMENTS IN UNCONSOLIDATED
AFFILIATES 43,341 33,336 44,315
--------- --------- ---------
UTILITY PLANT:
Original cost 1,005,304 946,602 990,780
Less - accumulated deprec-
iation and amortization 407,887 376,133 398,912
--------- --------- ---------
597,417 570,469 591,868
--------- --------- ---------
NONUTILITY PLANT:
Original cost 64,066 58,456 63,626
Less - accumulated deprec-
iation and amortization 20,562 14,219 18,815
--------- --------- ---------
43,504 44,237 44,811
--------- --------- ---------
DEFERRED CHARGES:
Unamortized debt discount
and expense 11,906 12,653 11,954
Regulatory income tax asset 2,741 1,778 2,741
Other 10,526 5,602 7,038
--------- --------- ---------
25,173 20,033 21,733
--------- --------- ---------
$832,885 $767,058 $777,378
========= ========= =========
INDIANA ENERGY, INC.
AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND SHAREHOLDERS' EQUITY
(Thousands except shares - Unaudited)
December 31 September 30
1999 1998 1999
------- ------- -------
CURRENT LIABILITIES:
Maturities and sinking fund
requirements of long-term debt $180 $10,174 $180
Notes payable and commercial
paper 99,072 56,475 86,521
Accounts payable 31,759 29,677 26,311
Refundable gas costs 10,204 14,343 11,192
Customer deposits and advance
payments 11,817 22,416 14,713
Accrued taxes 16,536 10,127 12,860
Accrued interest 5,274 4,984 1,182
Other current liabilities 24,938 26,840 26,386
-------- -------- --------
199,780 175,036 179,345
-------- -------- --------
DEFERRED CREDITS AND OTHER LIABILITIES:
Deferred income taxes 61,061 60,580 60,931
Accrued postretirement benefits
other than pensions 28,901 26,150 28,286
Unamortized investment tax
credit 8,152 9,082 8,383
Other 5,247 5,444 5,625
-------- -------- --------
103,361 101,256 103,225
-------- -------- --------
CAPITALIZATION:
Long-term debt 213,195 183,386 183,183
Common stock (no par value)-
authorized 200,000 shares -
Issued and outstanding 29,805
29,920 and 29,787 shares,
respectively 139,204 140,385 137,582
Less: Unearned Compensation
- restricted stock grants 1,545 1,377 822
-------- -------- --------
137,659 139,008 136,760
-------- -------- --------
Retained earnings 178,890 168,372 174,865
-------- -------- --------
Total common shareholders'
equity 316,549 307,380 311,625
-------- -------- --------
529,744 490,766 494,808
-------- -------- --------
$832,885 $767,058 $777,378
======== ======== ========
INDIANA ENERGY, INC.
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF INCOME
(Thousands except per share data)
(Unaudited)
Three Months Twelve Months
Ended December 31 Ended December 31
------------------- -------------------
1999 1998 1999 1998
------ ------ ------ ------
OPERATING REVENUES:
Utility $137,247 $124,947 $431,361 $420,459
Other 347 294 1,953 888
--------- --------- --------- ---------
137,594 125,241 433,314 421,347
--------- --------- --------- ---------
OPERATING EXPENSES:
Cost of gas 79,063 67,937 226,817 230,372
Other operating 19,471 19,326 79,451 76,902
Depreciation and amortization 10,785 9,915 41,482 38,664
Taxes other than income taxes 4,495 4,251 16,129 14,072
--------- --------- --------- ---------
113,814 101,429 363,879 360,010
--------- --------- --------- ---------
OPERATING INCOME 23,780 23,812 69,435 61,337
OTHER INCOME:
Equity in earnings of unconsolidated
affiliates (1,602) 1,425 6,137 6,688
Other - net 155 376 312 2,469
--------- --------- --------- ---------
(1,447) 1,801 6,449 9,157
--------- --------- --------- ---------
INCOME BEFORE INTEREST AND INCOME TAXES 22,333 25,613 75,884 70,494
INTEREST EXPENSE 5,252 4,231 17,679 16,209
--------- --------- --------- ---------
INCOME BEFORE INCOME TAXES 17,081 21,382 58,205 54,285
INCOME TAXES 5,865 7,106 19,514 18,161
--------- --------- --------- ---------
NET INCOME $11,216 $14,276 $38,691 $36,124
========= ========= ========= =========
AVERAGE COMMON SHARES OUTSTANDING 29,805 29,970 29,806 30,078
BASIC AND DILUTED EARNINGS PER
AVERAGE SHARE OF COMMON STOCK $0.38 $0.48 $1.30 $1.20
INDIANA ENERGY, INC.
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Thousands - Unaudited)
Three Months Twelve Months
Ended December 31 Ended December 31
-------------------- --------------------
1999 1998 1999 1998
------ ------ ------ ------
CASH FLOWS FROM (REQUIRED FOR)
OPERATING ACTIVITIES:
Net income $11,216 $14,276 $38,691 $36,124
-------- -------- -------- --------
Adjustments to reconcile net income to cash
provided from operating activities -
Depreciation and amortization 10,785 9,962 41,482 38,851
Deferred income taxes 130 132 (482) 1,192
Investment tax credit (232) (232) (930) (930)
Gain on sale of assets - - - (2,102)
Undistributed earnings of unconsolidated
affiliates 1,602 (1,425) (6,137) (6,688)
-------- -------- -------- --------
12,285 8,437 33,933 30,323
Changes in assets and liabilities -
Receivables - net (48,859) (51,795) (4,703) 30,480
Inventories (2,987) 1,204 5,708 (1,191)
Accounts payable, customer deposits,
advance payments and other current
liabilities 1,404 10,396 (10,419) (16,969)
Accrued taxes and interest 7,768 8,409 6,699 (8,377)
Recoverable/refundable gas costs (988) 3,613 (4,139) 4,010
Prepaid gas delivery service 4,873 - (20,937) -
Accrued postretirement benefits other
than pensions 615 762 2,751 2,406
Other - net (2,822) (488) (5,185) (1,958)
-------- -------- -------- --------
Total adjustments (28,711) (19,462) 3,708 38,724
-------- -------- -------- --------
Net cash flows from (required for)
operations (17,495) (5,186) 42,399 74,848
-------- -------- -------- --------
CASH FLOWS REQUIRED FOR FINANCING ACTIVITIES:
Repurchase of common stock - (3,645) (2,330) (4,834)
Sale of long-term debt 30,000 - 30,000 60,052
Reduction in long-term debt 12 (48) (10,185) (34,623)
Net change in short-term borrowings 12,551 22,770 42,597 (16,325)
Dividends on common stock (7,191) (6,924) (28,141) (27,140)
-------- -------- -------- --------
Net cash flows from (required for)
financing activities 35,372 12,153 31,941 (22,870)
-------- -------- -------- --------
CASH FLOWS REQUIRED FOR INVESTING ACTIVITIES:
Capital expenditures (15,914) (16,375) (70,284) (66,066)
Non-regulated investments in unconsolidated
affiliates - net (1,141) (673) (7,371) (7,035)
Cash distributions from unconsolidated
affiliates 413 776 4,550 7,806
Proceeds from sale of assets - - - 13,317
-------- -------- -------- --------
Net cash flows required for investing
activities (16,642) (16,272) (73,105) (51,978)
-------- -------- -------- --------
NET INCREASE (DECREASE) IN CASH 1,235 (9,305) 1,235 -
CASH AND CASH EQUIVALENTS AT BEGINNING OF
PERIOD 20 9,325 20 20
-------- -------- -------- --------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $1,255 $20 $1,255 $20
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