DUKE ENERGY CORPORATION
UNAUDITED PRO FORMA COMBINED STATEMENT OF INCOME
THREE MONTHS ENDED MARCH 31, 1997
(IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
DUKE PANENERGY PRO FORMA PRO FORMA
(AS REPORTED) (RECLASSIFIED) ADJUSTMENTS COMBINED
OPERATING REVENUE
Operating revenues $ 1,133.3 $ -- $ (1,133.3) $ --
Natural gas and petroleum products
Sales from trading and marketing of natural gas -- 1,553.0 -- 1,553.0
Sales of natural gas and petroleum products -- 574.3 -- 574.3
Transportation and storage of natural gas -- 410.0 -- 410.0
Electric -- 82.5 1,024.3 1,106.8
Other -- 32.7 109.0 141.7
------------- ------------ ------------- ----------
Total operating revenues 1,133.3 2,652.5 -- 3,785.8
OPERATING EXPENSES
Natural gas purchased for trading and marketing -- 1,507.8 -- 1,507.8
Natural gas and petroleum products purchased -- 461.1 -- 461.1
Fuel used in electric generation 171.0 -- -- 171.0
Net interchange and purchased power 79.0 82.4 -- 161.4
Other operation and maintenance 359.3 214.3 -- 573.6
Depreciation and amortization 125.8 78.2 -- 204.0
Property and other taxes 67.2 29.7 -- 96.9
------------- ------------ ------------- ----------
Total operating expenses 802.3 2,373.5 -- 3,175.8
------------- ------------ ------------- ----------
OPERATING INCOME 331.0 279.0 -- 610.0
------------- ------------ ------------- ----------
OTHER INCOME AND EXPENSES
Deferred returns and allowance for funds used
during construction 28.8 0.3 (2.9) 26.2
Other, net 3.4 4.7 -- 8.1
------------- ------------ ------------- ----------
Total other income and expense 32.2 5.0 (2.9) 34.3
------------- ------------ ------------- ----------
EARNINGS BEFORE INTEREST AND TAXES 363.2 284.0 (2.9) 644.3
INTEREST EXPENSE 70.0 50.5 (2.9) 117.6
MINORITY INTEREST -- 10.5 -- 10.5
------------- ------------ ------------- ----------
EARNINGS BEFORE INCOME TAXES 293.2 223.0 -- 516.2
INCOME TAXES 117.8 86.7 -- 204.5
------------- ------------ ------------- ----------
NET INCOME $ 175.4 $ 136.3 $ -- $ 311.7
============= ============ ============= ==========
COMMON STOCK DATA
Average shares outstanding 201.6 151.3 6.7 359.6
Earnings per share $ 0.82 $ 0.90 $ 0.84
Dividends per share $ 0.53 $ 0.24 $ 0.40
See Accompanying Notes to Unaudited Pro Forma Combined Financial Statements
Page 8
DUKE ENERGY CORPORATION
UNAUDITED PRO FORMA COMBINED STATEMENT OF INCOME
THREE MONTHS ENDED MARCH 31, 1996
(In millions, except per share amounts)
Duke PanEnergy Pro Forma Pro Forma
(As Reported) (Reclassified) Adjustments Combined
Operating Revenues
Operating revenues $ 1,162.1 $ -- $ (1,162.1) $ --
Natural gas and petroleum products
Sales from trading and marketing of natural gas -- 898.3 -- 898.3
Sales of natural gas and petroleum products -- 371.9 -- 371.9
Transportation and storage of natural gas -- 400.9 -- 400.9
Electric -- 1.0 1,100.4 1,101.4
Other -- 24.9 61.7 86.6
------------- ------------ ------------- ----------
Total operating revenues 1,162.1 1,697.0 -- 2,859.1
------------- ------------ ------------- ----------
Operating Expenses
Natural gas purchased for trading and marketing -- 864.6 -- 864.6
Natural gas and petroleum products purchased -- 291.1 -- 291.1
Fuel used in electric generation 176.6 -- -- 176.6
Net interchange and purchased power 109.3 0.9 -- 110.2
Other operation and maintenance 330.1 227.4 -- 557.5
Depreciation and amortization 122.7 72.1 -- 194.8
Property and other taxes 66.0 22.6 -- 88.6
------------- ------------ ------------- ----------
Total operating expenses 804.7 1,478.7 -- 2,283.4
------------- ------------ ------------- ----------
Operating Income 357.4 218.3 -- 575.7
------------- ------------ ------------- ----------
Other Income and Expenses
Deferred returns and allowance for funds used
during construction 28.9 0.4 (2.3) 27.0
Other, net 2.9 3.3 -- 6.2
------------- ------------ ------------- ----------
Total interest expense and other income 31.8 3.7 (2.3) 33.2
------------- ------------ ------------- ----------
Earnings Before Interest and Taxes 389.2 222.0 (2.3) 608.9
Interest Expense 71.4 58.3 (2.3) 127.4
------------- ------------ ------------- ----------
Earnings Before Income Taxes 317.8 163.7 -- 481.5
Income Taxes 126.5 61.9 -- 188.4
------------- ------------ ------------- ----------
Net Income $ 191.3 $ 101.8 $ -- $ 293.1
============= ============ ============= ==========
Common Stock Data
Average shares outstanding 204.9 150.5 6.7 362.1
Earnings per share $ 0.88 $ 0.68 $ 0.78
Dividends per share $ 0.51 $ 0.225 $ 0.38
See Accompanying Notes to Unaudited Pro Forma Combined Financial Statements
Page 9
DUKE ENERGY CORPORATION
UNAUDITED PRO FORMA COMBINED STATEMENT OF INCOME
YEAR ENDED DECEMBER 31, 1996
(In millions, except per share amounts)
Duke PanEnergy Pro Forma Pro Forma
(As Reported) (Reclassified) Adjustments Combined
Operating Revenues
Operating revenues $ 4,758.0 $ -- $ (4,758.0) $ --
Natural gas and petroleum products
Sales from trading and marketing of natural gas -- 3,763.1 -- 3,763.1
Sales of natural gas and petroleum products -- 2,116.1 -- 2,116.1
Transportation and storage of natural gas -- 1,522.9 -- 1,522.9
Electric -- 77.8 4,436.6 4,514.4
Other -- 95.7 321.4 417.1
----------- ------------ ------------ -----------
Total operating revenues 4,758.0 7,575.6 -- 12,333.6
----------- ------------ ------------ -----------
Operating Expenses
Natural gas purchased for trading and marketing -- 3,665.9 -- 3,665.9
Natural gas and petroleum products purchased -- 1,779.6 -- 1,779.6
Fuel used in electric generation 758.5 -- -- 758.5
Net interchange and purchased power 378.7 78.1 -- 456.8
Other operation and maintenance 1,505.1 877.7 -- 2,382.8
Depreciation and amortization 492.2 297.2 -- 789.4
Property and other taxes 261.3 80.7 -- 342.0
----------- ------------ ------------ -----------
Total operating expenses 3,395.8 6,779.2 -- 10,175.0
----------- ------------ ------------ -----------
Operating Income 1,362.2 796.4 -- 2,158.6
----------- ------------ ------------ -----------
Other Income and Expenses
Deferred returns and allowance for funds used
during construction 111.9 1.9 (9.0) 104.8
Other, net 14.6 16.2 -- 30.8
----------- ------------ ------------ -----------
Total other income and expense 126.5 18.1 (9.0) 135.6
----------- ------------ ------------ -----------
Earnings Before Interest and Taxes 1,488.7 814.5 (9.0) 2,294.2
Interest Expense 283.1 225.1 (9.0) 499.2
Minority Interest -- 6.2 -- 6.2
----------- ------------ ------------ -----------
Earnings Before Income Taxes 1,205.6 583.2 -- 1,788.8
Income Taxes 475.7 222.1 -- 697.8
----------- ------------ ------------ -----------
Income Before Extraordinary Item $ 729.9 $ 361.1 $ -- $ 1,091.0
=========== ============ ============ ===========
Common Stock Data
Average shares outstanding 203.6 150.9 6.7 361.2
Earnings per share before extraordinary item $ 3.37 $ 2.39 $ 2.90
Dividends per share $ 2.08 $ 0.945 $ 1.57
See Accompanying Notes to Unaudited Pro Forma Combined Financial Statements
Page 10
DUKE ENERGY CORPORATION
UNAUDITED PRO FORMA COMBINED STATEMENT OF INCOME
YEAR ENDED DECEMBER 31, 1995
(In millions, except per share amounts)
Duke PanEnergy Pro Forma Pro Forma
(As Reported) (Reclassified) Adjustments Combined
Operating Revenues
Operating revenues $ 4,676.6 $ -- $ (4,676.6) $ --
Natural gas and petroleum products
Sales from trading and marketing of natural gas -- 1,865.4 -- 1,865.4
Sales of natural gas and petroleum products -- 1,531.8 -- 1,531.8
Transportation and storage of natural gas -- 1,500.6 -- 1,500.6
Electric -- 9.8 4,454.6 4,464.4
Other -- 110.5 222.0 332.5
----------- ------------- ------------- -----------
Total operating revenues 4,676.6 5,018.1 -- 9,694.7
----------- ------------- ------------- -----------
Operating Expenses
Natural gas purchased for trading and marketing -- 1,815.4 -- 1,815.4
Natural gas and petroleum products purchased -- 1,303.9 -- 1,303.9
Fuel used in electric generation 744.2 -- -- 744.2
Net interchange and purchased power 468.3 11.9 -- 480.2
Other operation and maintenance 1,403.6 805.4 -- 2,209.0
Depreciation and amortization 458.1 279.0 -- 737.1
Property and other taxes 253.4 83.2 -- 336.6
----------- ------------- ------------- -----------
Total operating expenses 3,327.6 4,298.8 -- 7,626.4
----------- ------------- ------------- -----------
Operating Income 1,349.0 719.3 -- 2,068.3
----------- ------------- ------------- -----------
Other Income and Expenses
Deferred returns and allowance for funds used
during construction 125.0 3.7 (14.8) 113.9
Other, net (3.8) 12.1 -- 8.3
----------- ------------- ------------- -----------
Total other income and expense 121.2 15.8 (14.8) 122.2
----------- ------------- ------------- -----------
Earnings Before Interest and Taxes 1,470.2 735.1 (14.8) 2,190.5
Interest Expense 289.3 233.7 (14.8) 508.2
----------- ------------- ------------- -----------
Earnings Before Income Taxes 1,180.9 501.4 -- 1,682.3
Income Taxes 466.4 197.8 -- 664.2
----------- ------------- ------------- -----------
Net Income $ 714.5 $ 303.6 $ -- $ 1,018.1
=========== ============= ============ ===========
Common Stock Data
Average shares outstanding 204.9 149.7 6.6 361.2
Earnings per share $ 3.25 $ 2.03 $ 2.68
Dividends per share $ 2.00 $ 0.885 $ 1.50
See Accompanying Notes to Unaudited Pro Forma Combined Financial Statements
Page 11
DUKE ENERGY CORPORATION
UNAUDITED PRO FORMA COMBINED STATEMENT OF INCOME
YEAR ENDED DECEMBER 31, 1994
(In millions, except per share amounts)
Duke PanEnergy Pro Forma Pro Forma
(As Reported) (Reclassified) Adjustments Combined
Operating Revenues
Operating revenues $ 4,489.0 $ -- $ (4,489.0) $ --
Natural gas and petroleum products
Sales from trading and marketing of natural gas -- 1,635.9 -- 1,635.9
Sales of natural gas and petroleum products -- 1,408.1 -- 1,408.1
Transportation and storage of natural gas -- 1,432.8 -- 1,432.8
Electric -- -- 4,312.4 4,312.4
Other -- 149.2 176.6 325.8
----------- ---------- ---------- ----------
Total operating revenues 4,489.0 4,626.0 -- 9,115.0
----------- ---------- ---------- ----------
Operating Expenses
Natural gas purchased for trading and marketing -- 1,606.4 -- 1,606.4
Natural gas and petroleum products purchased -- 1,223.0 -- 1,223.0
Fuel used in electric generation 705.0 -- -- 705.0
Net interchange and purchased power 553.4 -- -- 553.4
Other operation and maintenance 1,341.7 829.4 -- 2,171.1
Depreciation and amortization 459.8 257.0 -- 716.8
Property and other taxes 249.3 84.0 -- 333.3
----------- ---------- ---------- ----------
Total operating expenses 3,309.2 3,999.8 -- 7,309.0
----------- ---------- ---------- ----------
Operating Income 1,179.8 626.2 -- 1,806.0
----------- ---------- ---------- ----------
Other Income and Expenses
Deferred returns and allowance for funds used
during construction 111.9 9.4 (14.3) 107.0
Other, net 14.4 (20.4) -- (6.0)
----------- ---------- ---------- ----------
Total other income and expense 126.3 (11.0) (14.3) 101.0
----------- ---------- ---------- ----------
Earnings Before Interest and Taxes 1,306.1 615.2 (14.3) 1,907.0
Interest Expense 270.2 228.6 (14.3) 484.5
----------- ---------- ---------- ----------
Earnings Before Income Taxes 1,035.9 386.6 -- 1,422.5
Income Taxes 397.0 161.4 -- 558.4
----------- ---------- ---------- ----------
Net Income $ 638.9 $ 225.2 $ -- $ 864.1
=========== =========== =========== ==========
Common Stock Data
Average shares outstanding 204.9 148.7 6.6 360.2
Earnings per share $ 2.88 $ 1.51 $ 2.26
Dividends per share $ 1.92 $ 0.84 $ 1.44
See Accompanying Notes to Unaudited Pro Forma Combined Financial Statements
Page 12
DUKE ENERGY CORPORATION
UNAUDITED PRO FORMA COMBINED BALANCE SHEET
March 31, 1997
(In millions)
Duke PanEnergy Pro Forma Pro Forma
(As Reported) (Reclassified) Adjustments Combined
ASSETS
Current Assets
Cash and cash equivalents $ -- $ 25.8 $ 93.6 $ 119.4
Cash 23.1 -- (23.1) --
Short-term investments 70.5 -- (70.5) --
Receivables 673.4 928.4 -- 1,601.8
Inventory 321.3 103.3 -- 424.6
Current portion of natural gas pipeline transition costs -- 67.0 -- 67.0
Current portion of purchased capacity costs -- -- 65.2 65.2
Other 28.1 298.5 -- 326.6
------------ ------------ ------------- -----------
Total current assets 1,116.4 1,423.0 65.2 2,604.6
------------ ------------ ------------- -----------
Investments and Other Assets
Investments in affiliates 182.7 340.7 -- 523.4
Other investments 117.4 -- (117.4) --
Nuclear decommissioning trust funds 381.5 -- -- 381.5
Pre-funded pension costs 80.0 286.4 -- 366.4
Goodwill, net -- 189.1 30.1 219.2
Other -- 56.9 87.3 144.2
------------ ------------ ------------- -----------
Total investments and other assets 761.6 873.1 -- 1,634.7
------------ ------------ ------------- -----------
Property, Plant and Equipment
Electric plant in service 14,291.3 (14,291.3) --
Original cost -- 8,867.7 15,799.8 24,667.5
Less accumulated depreciation and amortization 5,524.9 3,436.3 419.5 9,380.7
Nuclear fuel 632.1 -- (632.1) --
Less accumulated amortization 386.7 -- (386.7) --
Construction work in progress 377.2 -- (377.2) --
Other property - at cost (less accumulated depreciation) 466.4 -- (466.4) --
------------ ------------ ------------- -----------
Net property, plant and equipment 9,855.4 5,431.4 -- 15,286.8
------------ ------------ ------------- -----------
Regulatory Assets
Purchased capacity costs 877.9 -- (65.2) 812.7
Debt expense 167.1 72.0 -- 239.1
Regulatory asset related to income taxes 488.6 11.0 -- 499.6
Regulatory assets related to DOE assessment fee 94.7 -- (94.7) --
Natural gas pipeline transition costs -- 235.2 -- 235.2
Environmental clean-up costs -- 115.2 -- 115.2
Other 113.5 116.0 94.7 324.2
------------ ------------ ------------- -----------
Total regulatory assets 1,741.8 549.4 (65.2) 2,226.0
------------ ------------ ------------- -----------
Total Assets $ 13,475.2 $ 8,276.9 $ -- $ 21,752.1
============ ============ ============= ===========
See Accompanying Notes to Unaudited Pro Forma Combined Financial Statements
Page 13
DUKE ENERGY CORPORATION
UNAUDITED PRO FORMA COMBINED BALANCE SHEET
March 31, 1997
(In millions)
Duke PanEnergy Pro Forma Pro Forma
(As Reported) (Reclassified) Adjustments Combined
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable $ 176.7 $ 700.1 $ -- $ 876.8
Notes payable 54.5 -- (54.5) --
Notes payable and commercial paper -- 275.3 54.5 329.8
Taxes accrued 128.9 114.6 -- 243.5
Interest accrued 44.5 52.4 -- 96.9
Current portion of natural gas transition liabilities -- 115.4 -- 115.4
Current portion of environmental clean-up liabilities -- 27.8 -- 27.8
Current maturities of long-term debt and preferred stock 193.3 23.8 -- 217.1
Other 128.9 562.0 -- 690.9
------------ ---------- ---------- -----------
Total current liabilities 726.8 1,871.4 -- 2,598.2
------------ ---------- ---------- -----------
Long-term Debt 3,588.2 1,947.4 -- 5,535.6
------------ ---------- ---------- -----------
Accumulated Deferred Income Taxes 2,382.1 -- (2,382.1) --
------------ ---------- ---------- -----------
Deferred Credits and Other Liabilities
Deferred income taxes -- 1,235.1 2,382.1 3,617.2
Investment tax credit 247.3 -- -- 247.3
DOE assessment fee 94.7 -- (94.7) --
Nuclear decommissioning costs externally funded 381.6 -- -- 381.6
Natural gas transition liabilities -- 66.6 -- 66.6
Environmental clean-up liabilities -- 185.6 -- 185.6
Other 425.1 356.5 93.5 875.1
------------ ---------- ---------- -----------
Total deferred credits and other liabilities 1,148.7 1,843.8 2,380.9 5,373.4
------------ ---------- ---------- -----------
Minority Interests -- 57.4 1.2 58.6
------------ ---------- ---------- -----------
Preferred and Preference Stock
Preferred & preference stock with sinking fund requirements 234.0 -- -- 234.0
Preferred & preference stock without sinking fund requirements 450.0 -- -- 450.0
------------ ---------- ---------- -----------
Total preferred and preference stock 684.0 -- -- 684.0
------------ ---------- ---------- -----------
Common Stockholders' Equity
Common stock 1,896.1 2,397.9 -- 4,294.0
Retained earnings 3,049.3 159.0 -- 3,208.3
------------ ---------- ---------- -----------
Total common stockholders' equity 4,945.4 2,556.9 -- 7,502.3
------------ ---------- ---------- -----------
Total Liabilities and Stockholders' Equity $ 13,475.2 $ 8,276.9 $ -- $ 21,752.1
============ ========== ========== ===========
See Accompanying Notes to Unaudited Pro Forma Combined Financial Statements
Page 14
DUKE ENERGY CORPORATION
UNAUDITED PRO FORMA COMBINED BALANCE SHEET
December 31, 1996
(In millions)
Duke PanEnergy Pro Forma Pro Forma
(As Reported) (Reclassified) Adjustments Combined
ASSETS
Current Assets
Cash and cash equivalents $ -- $ 57.2 $ 108.8 $ 166.0
Cash 36.1 -- (36.1) --
Short-term investments 72.7 -- (72.7) --
Receivables 710.0 1,178.0 -- 1,888.0
Inventory 301.4 132.1 -- 433.5
Current portion of natural gas pipeline transition costs -- 67.9 -- 67.9
Current portion of purchased capacity costs -- -- 51.3 51.3
Other 23.9 133.2 -- 157.1
----------- ----------- ------------ -----------
Total current assets 1,144.1 1,568.4 51.3 2,763.8
----------- ----------- ------------ -----------
Investments and Other Assets
Investments in affiliates 189.0 313.9 -- 502.9
Other investments 114.7 -- (114.7) --
Nuclear decommissioning trust funds 362.6 -- -- 362.6
Pre-funded pension costs 80.0 280.6 -- 360.6
Goodwill, net -- 191.4 30.7 222.1
Other -- 58.4 84.0 142.4
----------- ----------- ------------ -----------
Total investments and other assets 746.3 844.3 -- 1,590.6
----------- ----------- ------------ -----------
Property, Plant and Equipment
Electric plant in service 14,194.4 (14,194.4) --
Original cost -- 8,822.5 15,645.7 24,468.2
Less accumulated depreciation and amortization 5,438.5 3,365.8 394.8 9,199.1
Nuclear fuel 604.8 -- (604.8) --
Less accumulated amortization 363.3 -- (363.3) --
Construction work in progress 389.0 -- (389.0) --
Other property - at cost (less accumulated depreciation) 426.0 -- (426.0) --
----------- ----------- ------------ -----------
Net property, plant and equipment 9,812.4 5,456.7 -- 15,269.1
----------- ----------- ------------ -----------
Regulatory Assets
Purchased capacity costs 892.0 -- (51.3) 840.7
Debt expense 169.8 74.2 -- 244.0
Regulatory asset related to income taxes 489.0 4.5 -- 493.5
Regulatory assets related to DOE assessment fee 94.7 -- (94.7) --
Natural gas pipeline transition costs -- 250.0 -- 250.0
Environmental clean-up costs -- 153.2 -- 153.2
Other 121.4 133.9 94.7 350.0
----------- ----------- ------------ -----------
Total regulatory assets 1,766.9 615.8 (51.3) 2,331.4
----------- ----------- ------------ -----------
Total Assets $ 13,469.7 $ 8,485.2 $ -- $ 21,954.9
=========== =========== ============ ===========
See Accompanying Notes to Unaudited Pro Forma Combined Financial Statements
Page 15
DUKE ENERGY CORPORATION
UNAUDITED PRO FORMA COMBINED BALANCE SHEET
December 31, 1996
(In millions)
Duke PanEnergy Pro Forma Pro Forma
(As Reported) (Reclassified) Adjustments Combined
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable $ 327.3 $ 959.2 $ -- $ 1,286.5
Notes payable 105.6 -- (105.6) --
Notes payable and commercial paper -- 354.1 105.6 459.7
Taxes accrued 1.0 73.8 -- 74.8
Interest accrued 64.6 59.7 -- 124.3
Current portion of natural gas transition liabilities -- 84.4 -- 84.4
Current portion of environmental clean-up liabilities -- 32.4 -- 32.4
Current maturities of long-term debt 212.3 138.3 -- 350.6
Other 152.2 356.1 -- 508.3
----------- ---------- ----------- -----------
Total current liabilities 863.0 2,058.0 -- 2,921.0
----------- ---------- ----------- -----------
Long-term Debt 3,538.1 1,947.0 -- 5,485.1
----------- ---------- ----------- -----------
Accumulated Deferred Income Taxes 2,376.0 -- (2,376.0) --
----------- ---------- ----------- -----------
Deferred Credits and Other Liabilities
Deferred income taxes -- 1,192.5 2,376.0 3,568.5
Investment tax credit 250.1 -- -- 250.1
DOE assessment fee 94.7 -- (94.7) --
Nuclear decommissioning costs externally funded 362.6 -- -- 362.6
Natural gas transition liabilities -- 121.9 -- 121.9
Environmental clean-up liabilities -- 188.9 -- 188.9
Other 412.5 442.1 93.6 948.2
----------- ---------- ----------- -----------
Total deferred credits and other liabilities 1,119.9 1,945.4 2,374.9 5,440.2
----------- ---------- ----------- -----------
Minority Interests -- 82.3 1.1 83.4
----------- ---------- ----------- -----------
Preferred and Preference Stock
Preferred & preference stock with sinking fund requirements 234.0 -- -- 234.0
Preferred & preference stock without sinking fund requirements 450.0 -- -- 450.0
----------- ---------- ----------- -----------
Total preferred and preference stock 684.0 -- -- 684.0
----------- ---------- ----------- -----------
Common Stockholders' Equity
Common stock 1,896.1 2,393.2 -- 4,289.3
Retained earnings 2,992.6 59.3 -- 3,051.9
----------- ---------- ----------- -----------
Total common stockholders' equity 4,888.7 2,452.5 -- 7,341.2
----------- ---------- ----------- -----------
Total Liabilities and Stockholders' Equity $ 13,469.7 $ 8,485.2 $ -- $ 21,954.9
=========== ========== =========== ===========
See Accompanying Notes to Unaudited Pro Forma Combined Financial Statements
Page 16
DUKE ENERGY CORPORATION
UNAUDITED PRO FORMA COMBINED BALANCE SHEET
December 31, 1995
(In millions)
Duke PanEnergy Pro Forma Pro Forma
(As Reported) (Reclassified) Adjustments Combined
ASSETS
Current Assets
Cash and cash equivalents $ -- $ 50.8 $ 121.7 $ 172.5
Cash 45.4 -- (45.4) --
Short-term investments 76.3 -- (76.3) --
Receivables 689.7 505.1 -- 1,194.8
Inventory 341.8 135.8 -- 477.6
Current portion of natural gas pipeline transition costs -- 70.0 -- 70.0
Current portion of purchased capacity costs -- -- 73.5 73.5
Other 22.9 148.5 -- 171.4
----------- ----------- ------------ -----------
Total current assets 1,176.1 910.2 73.5 2,159.8
----------- ----------- ------------ -----------
Investments and Other Assets
Investments in affiliates 163.3 164.3 -- 327.6
Other investments 85.2 -- (85.2) --
Nuclear decommissioning trust funds 273.5 -- -- 273.5
Pre-funded pension costs 80.0 259.3 -- 339.3
Goodwill, net -- 239.7 7.8 247.5
Other -- 65.8 77.4 143.2
----------- ----------- ------------ -----------
Total investments and other assets 602.0 729.1 -- 1,331.1
----------- ----------- ------------ -----------
Property, Plant and Equipment
Electric plant in service 13,822.3 (13,822.3) --
Original cost -- 8,400.7 15,321.3 23,722.0
Less accumulated depreciation and amortization 5,122.2 3,250.9 483.9 8,857.0
Nuclear fuel 731.7 -- (731.7) --
Less accumulated amortization 453.9 -- (453.9) --
Construction work in progress 382.6 -- (382.6) --
Other property - at cost (less accumulated depreciation) 354.7 -- (354.7) --
----------- ----------- ------------ -----------
Net property, plant and equipment 9,715.2 5,149.8 -- 14,865.0
----------- ----------- ------------ -----------
Regulatory Assets
Purchased capacity costs 965.5 -- (73.5) 892.0
Debt expense 180.9 67.4 -- 248.3
Regulatory asset related to income taxes 490.7 0.9 -- 491.6
Regulatory assets related to DOE assessment fee 101.3 -- (101.3) --
Natural gas pipeline transition costs -- 310.0 -- 310.0
Environmental clean-up costs -- 197.9 -- 197.9
Other 126.8 144.1 101.3 372.2
----------- ----------- ------------ -----------
Total regulatory assets 1,865.2 720.3 (73.5) 2,512.0
----------- ----------- ------------ -----------
Total Assets $ 13,358.5 $ 7,509.4 $ -- $ 20,867.9
=========== =========== ============ ===========
See Accompanying Notes to Unaudited Pro Forma Combined Financial Statements
Page 17
DUKE ENERGY CORPORATION
UNAUDITED PRO FORMA COMBINED BALANCE SHEET
December 31, 1995
(In millions)
Duke PanEnergy Pro Forma Pro Forma
(As Reported) (Reclassified) Adjustments Combined
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable $ 343.7 $ 391.2 $ -- $ 734.9
Notes payable 155.3 -- (155.3) --
Notes payable and commercial paper -- 145.0 155.3 300.3
Taxes accrued 34.9 65.0 -- 99.9
Interest accrued 73.7 69.1 -- 142.8
Current portion of natural gas transition liabilities -- 125.0 -- 125.0
Current portion of environmental clean-up liabilities -- 56.3 -- 56.3
Current maturities of long-term debt and preferred stock 12.1 179.6 -- 191.7
Other 149.5 292.2 -- 441.7
----------- ---------- ---------- -----------
Total current liabilities 769.2 1,323.4 -- 2,092.6
----------- ---------- ---------- -----------
Long-term Debt 3,711.4 2,091.6 -- 5,803.0
----------- ---------- ---------- -----------
Accumulated Deferred Income Taxes 2,382.2 -- (2,382.2) --
----------- ---------- ---------- -----------
Deferred Credits and Other Liabilities
Deferred income taxes -- 1,102.1 2,382.2 3,484.3
Investment tax credit 261.3 -- -- 261.3
DOE assessment fee 101.3 -- (101.3) --
Nuclear decommissioning costs externally funded 273.5 -- -- 273.5
Natural gas transition liabilities -- 165.0 -- 165.0
Environmental clean-up liabilities -- 225.8 -- 225.8
Other 390.4 374.2 100.1 864.7
----------- ---------- ---------- -----------
Total deferred credits and other liabilities 1,026.5 1,867.1 2,381.0 5,274.6
----------- ---------- ---------- -----------
Minority Interests -- -- 1.2 1.2
----------- ---------- ---------- -----------
Preferred and Preference Stock
Preferred & preference stock with sinking fund requirements 234.0 -- -- 234.0
Preferred & preference stock without sinking fund requirements 450.0 -- -- 450.0
----------- ---------- ---------- -----------
Total preferred and preference stock 684.0 -- -- 684.0
----------- ---------- ---------- -----------
Common Stockholders' Equity
Common stock 1,926.9 2,369.9 -- 4,296.8
Retained earnings (deficit) 2,858.3 (142.6) -- 2,715.7
----------- ---------- ---------- -----------
Total common stockholders' equity 4,785.2 2,227.3 -- 7,012.5
----------- ---------- ---------- -----------
Total Liabilities and Stockholders' Equity $ 13,358.5 $ 7,509.4 $ -- $ 20,867.9
=========== ========== ========== ===========
See Accompanying Notes to Unaudited Pro Forma Combined Financial Statements
Page 18
DUKE ENERGY CORPORATION
NOTES TO UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS
The preceding unaudited pro forma combined statements of income and balance
sheets reflect the effect of the Merger of the registrant and PanEnergy Corp as
described in Item 2 of this Form 8-K report. The preceding financial statements
were prepared on the pooling of interests basis of accounting. Certain pro forma
adjustments have been made to the statement of income and balance sheet
classifications to be consistent with the presentation expected to be used by
the registrant.
1. The Merger Agreement established a conversion ratio of 1.0444 shares of
the registrant's Common Stock for each share of PanEnergy Corp Common
Stock. The pro forma average shares were computed as the aggregate of
the average shares outstanding of the registrant and PanEnergy Corp for
the period presented, adjusted by the exchange ratio. The unaudited pro
forma combined financial statements are presented as if the companies
were combined during all periods included herein.
2. Earnings per share amounts were calculated based on the pro forma
average share figures described above and earnings for common
stockholders for the period.
3. There were no material intercompany transactions between the registrant
and PanEnergy during the periods presented.
4. The effects of accounting policy differences are immaterial and have
not been adjusted in the selected unaudited pro forma combined
financial statements presented.
5. The following unaudited reclassifying financial data reflect the
reclassifying entries necessary to adjust PanEnergy Corp's consolidated
statement of income and balance sheet classifications to be consistent
with the presentation expected to be used by the registrant.
Page 19
PANENERGY CORP
UNAUDITED RECLASSIFYING STATEMENT OF INCOME
THREE MONTHS ENDED MARCH 31, 1997
(IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
PANENERGY PANENERGY PANENERGY
(AS REPORTED) (RECLASSES) (RECLASSIFIED)
OPERATING REVENUES
Natural gas and petroleum products
Sales from trading and marketing of natural gas $ 1,553.0 $ 1,553.0
Sales of natural gas, petroleum products and power $ 2,209.8 (1,635.5) 574.3
Transportation and storage of natural gas 410.0 -- 410.0
Electric -- 82.5 82.5
Other 23.2 9.5 32.7
----------- ------------ -----------
Total operating revenues 2,643.0 9.5 2,652.5
----------- ------------ -----------
OPERATING EXPENSES
Natural gas purchased for trading and marketing -- 1,507.8 1,507.8
Natural gas, petroleum products and power purchased 2,051.3 (1,590.2) 461.1
Net interchange and purchased power -- 82.4 82.4
Other operation and maintenance -- 214.3 214.3
Operating and maintenance 159.7 (159.7) --
General and administrative 54.6 (54.6) --
Depreciation and amortization 78.2 -- 78.2
Miscellaneous taxes 29.7 -- 29.7
----------- ------------ -----------
Total operating expenses 2,373.5 -- 2,373.5
----------- ------------ -----------
OPERATING INCOME 269.5 9.5 279.0
----------- ------------ -----------
OTHER INCOME AND EXPENSES
Deferred returns and allowance FOR FUNDS USED
during construction -- 0.3 0.3
Equity in earnings of unconsolidated affiliates 9.5 (9.5) --
Other, net 5.0 (0.3) 4.7
----------- ------------ -----------
Total other income and expense 14.5 (9.5) 5.0
----------- ------------ -----------
EARNINGS BEFORE INTEREST AND TAXES 284.0 -- 284.0
INTEREST EXPENSE 50.5 -- 50.5
MINORITY INTEREST 10.5 -- 10.5
----------- ------------ -----------
EARNINGS BEFORE INCOME TAXES 223.0 -- 223.0
INCOME TAXES 86.7 -- 86.7
----------- ------------ -----------
NET INCOME $ 136.3 $ -- $ 136.3
=========== ============ ===========
COMMON STOCK DATA
Average shares outstanding 151.3 151.3
Earnings per share $ 0.90 $ 0.90
Dividends per share $ 0.24 $ 0.24
Page 20
PANENERGY CORP
UNAUDITED RECLASSIFYING STATEMENT OF INCOME
THREE MONTHS ENDED MARCH 31, 1996
(In millions, except per share amounts)
PanEnergy PanEnergy PanEnergy
(As Reported) (Reclasses) (Reclassified)
Operating Revenues
Natural gas and petroleum products
Sales from trading and marketing of natural gas $ 898.3 $ 898.3
Sales of natural gas, petroleum products and power $ 1,271.2 $ (899.3) 371.9
Transportation and storage of natural gas 400.9 -- 400.9
Electric -- 1.0 1.0
Other 19.8 5.1 24.9
------------ ----------- ----------
Total operating revenues 1,691.9 5.1 1,697.0
------------ ----------- ----------
Operating Expenses
Natural gas purchased for trading and marketing -- 864.6 864.6
Natural gas, petroleum products and power purchased 1,156.6 (865.5) 291.1
Net interchange and purchased power -- 0.9 0.9
Other operation and maintenance -- 227.4 227.4
Operating and maintenance 152.6 (152.6) --
General and administrative 74.8 (74.8) --
Depreciation and amortization 72.1 -- 72.1
Miscellaneous taxes 22.6 -- 22.6
------------ ----------- ----------
Total operating expenses 1,478.7 -- 1,478.7
------------ ----------- ----------
Operating Income 213.2 5.1 218.3
------------ ----------- ----------
Other Income and Expenses
Deferred returns and allowance for funds used
during construction -- 0.4 0.4
Equity in earnings of unconsolidated affiliates 5.1 (5.1) --
Other, net 3.7 (0.4) 3.3
------------ ----------- ----------
Total other income and expense 8.8 (5.1) 3.7
------------ ----------- ----------
Earnings Before Interest and Taxes 222.0 -- 222.0
Interest Expense 58.3 -- 58.3
------------ ----------- ----------
Earnings Before Income Taxes 163.7 -- 163.7
Income Taxes 61.9 -- 61.9
------------ ----------- ----------
Net Income $ 101.8 $ -- $ 101.8
============ =========== ==========
Common Stock Data
Average shares outstanding 150.5 150.5
Earnings per share $ 0.68 $ 0.68
Dividends per share $ 0.225 $ 0.225
Page 21
PANENERGY CORP
UNAUDITED RECLASSIFYING STATEMENT OF INCOME
YEAR ENDED DECEMBER 31, 1996
(In millions, except per share amounts)
PanEnergy PanEnergy PanEnergy
(As Reported) (Reclasses) (Reclassified)
Operating Revenues
Natural gas and petroleum products
Sales from trading and marketing of natural gas $ 3,763.1 $ 3,763.1
Sales of natural gas, petroleum products and power $ 5,957.0 (3,840.9) 2,116.1
Transportation and storage of natural gas 1,522.9 -- 1,522.9
Electric -- 77.8 77.8
Other 56.9 38.8 95.7
------------ ------------- -----------
Total operating revenues 7,536.8 38.8 7,575.6
------------ ------------- -----------
Operating Expenses
Natural gas purchased for trading and marketing -- 3,665.9 3,665.9
Natural gas, petroleum products and power purchased 5,523.6 (3,744.0) 1,779.6
Net interchange and purchased power -- 78.1 78.1
Other operation and maintenance -- 877.7 877.7
Operating and maintenance 605.4 (605.4) --
General and administrative 272.3 (272.3) --
Depreciation and amortization 297.2 -- 297.2
Miscellaneous taxes 80.7 -- 80.7
------------ ------------- -----------
Total operating expenses 6,779.2 -- 6,779.2
------------ ------------- -----------
Operating Income 757.6 38.8 796.4
------------ ------------- -----------
Other Income and Expenses
Deferred returns and allowance for funds used
during construction -- 1.9 1.9
Equity in earnings of unconsolidated affiliates 38.8 (38.8) --
Interest and miscellaneous income 38.9 (38.9) --
Miscellaneous deductions (20.8) 20.8 --
Other, net -- 16.2 16.2
------------ ------------- -----------
Total other income and expense 56.9 (38.8) 18.1
------------ ------------- -----------
Earnings Before Interest and Taxes 814.5 -- 814.5
Interest Expense 225.1 -- 225.1
Minority Interest 6.2 -- 6.2
------------ ------------- -----------
Earnings Before Income Taxes 583.2 -- 583.2
Income Taxes 222.1 -- 222.1
------------ ------------- -----------
Income Before Extraordinary Item $ 361.1 $ -- $ 361.1
============ ============= ===========
Common Stock Data
Average shares outstanding 150.9 150.9
Earnings per share before extraordinary item $ 2.39 $ 2.39
Dividends per share $ 0.945 $ 0.945
Page 22
PANENERGY CORP
UNAUDITED RECLASSIFYING STATEMENT OF INCOME
YEAR ENDED DECEMBER 31, 1995
(In millions, except per share amounts)
PanEnergy PanEnergy PanEnergy
(As Reported) (Reclasses) (Reclassified)
Operating Revenues
Natural gas and petroleum products
Sales from trading and marketing of natural gas $ 1,865.4 $ 1,865.4
Sales of natural gas, petroleum products and power $ 3,407.0 (1,875.2) 1,531.8
Transportation and storage of natural gas 1,500.6 -- 1,500.6
Electric -- 9.8 9.8
Other 59.9 50.6 110.5
------------ ------------- ------------
Total operating revenues 4,967.5 50.6 5,018.1
------------ ------------- ------------
Operating Expenses
Natural gas purchased for trading and marketing -- 1,815.4 1,815.4
Natural gas, petroleum products and power purchased 3,131.2 (1,827.3) 1,303.9
Net interchange and purchased power -- 11.9 11.9
Other operation and maintenance -- 805.4 805.4
Operating and maintenance 598.4 (598.4) --
General and administrative 207.0 (207.0) --
Depreciation and amortization 279.0 -- 279.0
Miscellaneous taxes 83.2 -- 83.2
------------ ------------- ------------
Total operating expenses 4,298.8 -- 4,298.8
------------ ------------- ------------
Operating Income 668.7 50.6 719.3
------------ ------------- ------------
Other Income and Expenses
Deferred returns and allowance for funds used
during construction -- 3.7 3.7
Equity in earnings of unconsolidated affiliates 50.6 (50.6) --
Interest and miscellaneous income 36.8 (36.8) --
Miscellaneous deductions (21.0) 21.0 --
Other, net -- 12.1 12.1
------------ ------------- ------------
Total other income and expense 66.4 (50.6) 15.8
------------ ------------- ------------
Earnings Before Interest and Taxes 735.1 -- 735.1
Interest Expense 233.7 -- 233.7
------------ ------------- ------------
Earnings Before Income Taxes 501.4 -- 501.4
Income Taxes 197.8 -- 197.8
------------ ------------- ------------
Net Income $ 303.6 $ -- $ 303.6
============ ============= ===========
Common Stock Data
Average shares outstanding 149.7 149.7
Earnings per share $ 2.03 $ 2.03
Dividends per share $ 0.885 $ 0.885
Page 23
PANENERGY CORP
UNAUDITED RECLASSIFYING STATEMENT OF INCOME
YEAR ENDED DECEMBER 31, 1994
(In millions, except per share amounts)
PanEnergy PanEnergy PanEnergy
(As Reported) (Reclasses) (Reclassified)
Operating Revenues
Natural gas and petroleum products
Sales from trading and marketing of natural gas $ 1,635.9 $ 1,635.9
Sales of natural gas and petroleum products $ 3,044.0 (1,635.9) 1,408.1
Transportation and storage of natural gas 1,432.8 -- 1,432.8
Other 108.3 40.9 149.2
----------- ------------ ------------
Total operating revenues 4,585.1 40.9 4,626.0
----------- ------------ ------------
Operating Expenses
Natural gas purchased for trading and marketing -- 1,606.4 1,606.4
Natural gas and petroleum products purchased 2,829.4 (1,606.4) 1,223.0
Other operation and maintenance -- 829.4 829.4
Operating and maintenance 570.6 (570.6) --
General and administrative 258.8 (258.8) --
Depreciation and amortization 257.0 -- 257.0
Miscellaneous taxes 84.0 -- 84.0
----------- ------------ ------------
Total operating expenses 3,999.8 -- 3,999.8
----------- ------------ ------------
Operating Income 585.3 40.9 626.2
----------- ------------ ------------
Other Income and Expenses
Deferred returns and allowance for funds used
during construction -- 9.4 9.4
Equity in earnings of unconsolidated affiliates 40.9 (40.9) --
Interest and miscellaneous income 23.0 (23.0) --
Miscellaneous deductions (34.0) 34.0 --
Other, net -- (20.4) (20.4)
----------- ------------ ------------
Total other income and expense 29.9 (40.9) (11.0)
----------- ------------ ------------
Earnings Before Interest and Taxes 615.2 -- 615.2
Interest Expense 228.6 -- 228.6
----------- ------------ ------------
Earnings Before Income Taxes 386.6 -- 386.6
Income Taxes 161.4 -- 161.4
----------- ------------ ------------
Net Income $ 225.2 $ -- $ 225.2
=========== ============ ============
Common Stock Data
Average shares outstanding 148.7 148.7
Earnings per share $ 1.51 $ 1.51
Dividends per share $ 0.84 $ 0.84
Page 24
PANENERGY CORP
UNAUDITED RECLASSIFYING BALANCE SHEET
March 31, 1997
(In millions)
PanEnergy PanEnergy PanEnergy
(As Reported) (Reclasses) (Reclassified)
ASSETS
Current Assets
Cash and cash equivalents $ 25.8 $ -- $ 25.8
Receivables 928.4 -- 928.4
Inventory and supplies 103.3 -- 103.3
Current deferred income tax 61.6 (61.6) --
Current portion of natural gas pipeline transition costs -- 67.0 67.0
Other 382.5 (84.0) 298.5
---------- --------- ----------
Total current assets 1,501.6 (78.6) 1,423.0
---------- --------- ----------
Investments and Other Assets
Affiliates 340.7 -- 340.7
Pre-funded pension cost -- 286.4 286.4
Goodwill, net -- 189.1 189.1
Other 56.9 -- 56.9
---------- --------- ----------
Total investments and other assets 397.6 475.5 873.1
---------- --------- ----------
Property, Plant, and Equipment
Original cost 8,867.7 -- 8,867.7
Less accumulated depreciation and amortization 3,436.3 -- 3,436.3
---------- --------- ----------
Net property, plant and equipment 5,431.4 -- 5,431.4
---------- --------- ----------
Deferred Charges
Prepaid pension 286.4 (286.4) --
Goodwill, net 189.1 (189.1) --
Debt expense -- 72.0 72.0
Regulatory asset related to income taxes -- 11.0 11.0
Natural gas pipeline transition costs -- 235.2 235.2
Environmental clean-up costs -- 115.2 115.2
Other 557.1 (441.1) 116.0
---------- --------- ----------
Total deferred charges 1,032.6 (483.2) 549.4
---------- --------- ----------
Total Assets $ 8,363.2 $ (86.3) $ 8,276.9
========== ========= ==========
Page 25
PANENERGY CORP
UNAUDITED RECLASSIFYING BALANCE SHEET
March 31, 1997
(In millions)
PanEnergy PanEnergy PanEnergy
(As Reported) (Reclasses) (Reclassified)
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable $ 700.1 $ -- $ 700.1
Notes payable and commercial paper 275.3 -- 275.3
Taxes payable 114.6 -- 114.6
Accrued interest 52.4 -- 52.4
Current portion of natural gas transition liabilities -- 115.4 115.4
Current portion of environmental clean-up liabilities -- 27.8 27.8
Long-term debt due within one year 23.8 -- 23.8
Rate refund provisions 37.8 (37.8) --
Other 667.4 (105.4) 562.0
---------- ----------- ----------
Total current liabilities 1,871.4 -- 1,871.4
---------- ----------- ----------
Long-term Debt 1,947.4 -- 1,947.4
---------- ----------- ----------
Deferred Credits and Other Liabilities
Deferred income taxes 1,296.7 (61.6) 1,235.1
Natural gas transition liabilities -- 66.6 66.6
Environmental clean-up liabilities -- 185.6 185.6
Other 633.4 (276.9) 356.5
---------- ----------- ----------
Total deferred credits and other liabilities 1,930.1 (86.3) 1,843.8
---------- ----------- ----------
Minority Interest 57.4 -- 57.4
---------- ----------- ----------
Common Stockholders' Equity
Common stock 151.5 2,246.4 2,397.9
Paid-in capital 2,246.4 (2,246.4) --
Retained earnings 159.0 -- 159.0
---------- ----------- ----------
Total common stockholders' equity 2,556.9 -- 2,556.9
---------- ----------- ----------
Total Liabilities and Stockholders' Equity $ 8,363.2 $ (86.3) $ 8,276.9
========== =========== ==========
Page 26
PANENERGY CORP
UNAUDITED RECLASSIFYING BALANCE SHEET
December 31, 1996
(In millions)
PanEnergy PanEnergy PanEnergy
(As Reported) (Reclasses) (Reclassified)
ASSETS
Current Assets
Cash and cash equivalents $ 57.2 $ -- $ 57.2
Receivables -- 1,178.0 1,178.0
Accounts and notes receivable
Customers 1,151.3 (1,151.3) --
Other 26.7 (26.7) --
Inventory and supplies 132.1 -- 132.1
Current deferred income tax 50.4 (50.4) --
Current portion of natural gas pipeline transition costs -- 67.9 67.9
Other 217.8 (84.6) 133.2
----------- ----------- ----------
Total current assets 1,635.5 (67.1) 1,568.4
----------- ----------- ----------
Investments and Other Assets
Affiliates 313.9 -- 313.9
Pre-funded pension cost -- 280.6 280.6
Goodwill, net -- 191.4 191.4
Other 58.4 -- 58.4
----------- ----------- ----------
Total investments and other assets 372.3 472.0 844.3
----------- ----------- ----------
Property, Plant, and Equipment
Original cost 8,822.5 -- 8,822.5
Less accumulated depreciation and amortization 3,365.8 -- 3,365.8
----------- ----------- ----------
Net property, plant and equipment 5,456.7 -- 5,456.7
----------- ----------- ----------
Deferred Charges
Prepaid pension 280.6 (280.6) --
Goodwill, net 191.4 (191.4) --
Debt expense -- 74.2 74.2
Regulatory asset related to income taxes -- 4.5 4.5
Natural gas pipeline transition costs -- 250.0 250.0
Environmental clean-up costs -- 153.2 153.2
Other 631.3 (497.4) 133.9
----------- ----------- ----------
Total deferred charges 1,103.3 (487.5) 615.8
----------- ----------- ----------
Total Assets $ 8,567.8 $ (82.6) $ 8,485.2
=========== =========== ==========
Page 27
PANENERGY CORP
UNAUDITED RECLASSIFYING BALANCE SHEET
December 31, 1996
(In millions)
PanEnergy PanEnergy PanEnergy
(As Reported) (Reclasses) (Reclassified)
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable $ 959.2 $ -- $ 959.2
Notes payable and commercial paper 354.1 -- 354.1
Taxes payable 73.8 -- 73.8
Accrued interest 59.7 -- 59.7
Current portion of natural gas transition liabilities -- 84.4 84.4
Current portion of environmental clean-up liabilities -- 32.4 32.4
Long-term debt due within one year 138.3 -- 138.3
Rate refund provisions 37.0 (37.0) --
Accrued wages and benefits 61.8 (61.8) --
Other 374.1 (18.0) 356.1
---------- ----------- ----------
Total current liabilities 2,058.0 -- 2,058.0
---------- ----------- ----------
Long-term Debt -- 1,947.0 1,947.0
Notes payable 1,320.2 (1,320.2) --
Debentures 298.8 (298.8) --
Revenue bonds 328.0 (328.0) --
---------- ----------- ----------
Total long-term debt 1,947.0 -- 1,947.0
---------- ----------- ----------
Deferred Credits and Other Liabilities
Deferred income taxes 1,242.9 (50.4) 1,192.5
Natural gas transition liabilities -- 121.9 121.9
Environmental clean-up liabilities -- 188.9 188.9
Other 785.1 (343.0) 442.1
---------- ----------- ----------
Total deferred credits and other liabilities 2,028.0 (82.6) 1,945.4
---------- ----------- ----------
Minority Interest 82.3 -- 82.3
---------- ----------- ----------
Common Stockholders' Equity
Common stock 151.1 2,242.1 2,393.2
Paid-in capital 2,242.1 (2,242.1) --
Retained earnings 59.3 -- 59.3
---------- ----------- ----------
Total common stockholders' equity 2,452.5 -- 2,452.5
---------- ----------- ----------
Total Liabilities and Stockholders' Equity $ 8,567.8 $ (82.6) $ 8,485.2
========== =========== ==========
Page 28
PANENERGY CORP
UNAUDITED RECLASSIFYING BALANCE SHEET
December 31, 1995
(In millions)
PanEnergy PanEnergy PanEnergy
(As Reported) (Reclasses) (Reclassified)
ASSETS
Current Assets
Cash and cash equivalents $ 50.8 $ -- $ 50.8
Receivables -- 505.1 505.1
Accounts and notes receivable
Customers 487.7 (487.7) --
Other 17.4 (17.4) --
Inventory and supplies 135.8 -- 135.8
Current deferred income tax 80.8 (80.8) --
Current portion of natural gas pipeline transition costs -- 70.0 70.0
Other 239.8 (91.3) 148.5
---------- --------- ----------
Total current assets 1,012.3 (102.1) 910.2
---------- --------- ----------
Investments and Other Assets
Affiliates 164.3 -- 164.3
Pre-funded pension cost -- 259.3 259.3
Goodwill, net -- 239.7 239.7
Other 65.8 -- 65.8
---------- --------- ----------
Total investments and other assets 230.1 499.0 729.1
---------- --------- ----------
Property, Plant, and Equipment
Original cost 8,400.7 -- 8,400.7
Less accumulated depreciation and amortization 3,250.9 -- 3,250.9
---------- --------- ----------
Net property, plant and equipment 5,149.8 -- 5,149.8
---------- --------- ----------
Deferred Charges
Prepaid pension 259.3 (259.3) --
Goodwill, net 239.7 (239.7) --
Debt expense -- 67.4 67.4
Regulatory asset related to income taxes -- 0.9 0.9
Natural gas pipeline transition costs -- 310.0 310.0
Environmental clean-up costs -- 197.9 197.9
Other 736.1 (592.0) 144.1
---------- --------- ----------
Total deferred charges 1,235.1 (514.8) 720.3
---------- --------- ----------
Total Assets $ 7,627.3 $ (117.9) $ 7,509.4
========== ========= ==========
Page 29
PANENERGY CORP
UNAUDITED RECLASSIFYING BALANCE SHEET
December 31, 1995
(In millions)
PanEnergy PanEnergy PanEnergy
(As Reported) (Reclasses) (Reclassified)
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable $ 391.2 $ -- $ 391.2
Notes payable and commercial paper 145.0 -- 145.0
Taxes payable 65.0 -- 65.0
Accrued interest 69.1 -- 69.1
Current portion of natural gas transition liabilities -- 125.0 125.0
Current portion of environmental clean-up liabilities -- 56.3 56.3
Long-term debt due within one year 179.6 -- 179.6
Rate refund provisions 53.6 (53.6) --
Accrued wages and benefits 64.7 (64.7) --
Other 355.2 (63.0) 292.2
---------- ----------- ----------
Total current liabilities 1,323.4 -- 1,323.4
---------- ----------- ----------
Long-term Debt -- 2,091.6 2,091.6
Notes payable 1,244.2 (1,244.2) --
Debentures 519.4 (519.4) --
Revenue bonds 328.0 (328.0) --
---------- ----------- ----------
Total long-term debt 2,091.6 -- 2,091.6
---------- ----------- ----------
Deferred Credits and Other Liabilities
Deferred income taxes 1,182.9 (80.8) 1,102.1
Natural gas transition liabilities -- 165.0 165.0
Environmental clean-up liabilities -- 225.8 225.8
Other 802.1 (427.9) 374.2
---------- ----------- ----------
Total deferred credits and other liabilities 1,985.0 (117.9) 1,867.1
---------- ----------- ----------
Common Stockholders' Equity
Common stock 150.2 2,219.7 2,369.9
Paid-in capital 2,219.7 (2,219.7) --
Retained deficit (142.6) -- (142.6)
---------- ----------- ----------
Total common stockholders' equity 2,227.3 -- 2,227.3
---------- ----------- ----------
Total Liabilities and Stockholders' Equity $ 7,627.3 $ (117.9) $ 7,509.4
========== =========== ==========
Page 30