Exhibit 99.1
NEWS
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KeySpan Corporation For Immediate Release
Contacts: Investors Media Relations
George Laskaris Ed Yutkowitz
718.403.2526 718.403.2523
KeySpan Board Approves Dividend Increase & Succession Plan
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KeySpan Announces Results of Energy Services Strategic Review
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Solid 3rd Quarter Results Meet Consensus -- 9 Month Results Ahead of Last Year
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Brooklyn, New York, November 4, 2004 - KeySpan Corporation (NYSE: KSE) announced
today that its board of directors has approved an annual dividend increase of 4
cents per share, effective February 2005. This increase brings the dividend to
an annual rate of $1.82 per share, confirming the Company's long-standing
history of paying a strong and dependable dividend to its shareholders.
"I am very pleased with the Board's approval of a dividend increase for KeySpan
shareholders," said Robert B. Catell, Chairman and Chief Executive Officer. "The
dividend increase reflects our confidence in the strength of our core businesses
and the Company's enhanced financial position. We recognize that a solid and
sustainable dividend is an important part of the total return to our
shareholders."
Concurrent with the above, the Company has decided, as part of its announced
strategic review of the Energy Services segment, to initiate the process of
monetizing a significant portion of its mechanical contracting subsidiaries. In
conjunction with this, KeySpan recorded a $90.4 million non-cash after-tax
($122.2 million pre-tax) goodwill impairment charge in this segment.
Including the $90.4 million non-cash charge, third quarter 2004 consolidated
GAAP results, less preferred dividends, were a loss of $117.1 million or $0.73
per share, as compared to net income of $11.1 million or $0.07 per share in the
same period last year. Year-to-date 2004 results were $258.4 million or $1.61
per share, as compared to $245.5 million or $1.56 per share in the same period
last year.
The following five special items have impacted 2004 results: 1) the gain
associated with the partial sale of the Company's ownership interest in KeySpan
Canada (TSE: KEY.UN); 2) the gain associated with The Houston Exploration
Company (NYSE: THX) transaction which reduced KeySpan's ownership interest from
55% to 23.5%; 3) the non-cash goodwill impairment charge associated with the
Energy Services segment; 4) the premiums paid in August for the redemption of
outstanding long-term bonds; and 5) a non-cash "ceiling test" writedown of the
Company's investment in its remaining exploration and productions subsidiaries.
Results for 2003 were impacted by the following three items: 1) the gain
associated with the initial monetization of the Company's ownership interest in
Houston Exploration; 2) the loss associated with the Company's initial
monetization of its ownership interest in KeySpan Canada; and 3) the premiums
paid for the redemption of outstanding long-term bonds. The details of these
items are presented in a table at the end of this release.
Despite the cooler summer weather, and excluding the impact of the special items
described above, third quarter results were in line with consensus estimates.
KeySpan's consolidated earnings, less preferred stock dividends, for the three
months ended September 30, 2004, were $2.6 million or $0.01 per share. For the
nine month period ended September 30, 2004, KeySpan reported consolidated
earnings of $293.1 million or $1.82 per share, compared to $274.2 million or
$1.75 per share for the same period last year, a 4% increase in earnings per
share. These results also reflect KeySpan's reduced ownership interest in
Houston Exploration and KeySpan Canada.
The improved performance of the core gas distribution and electric services
businesses contributed to this quarter's realized operating results. In the
electric services segment, spark spreads remained steady despite the cooler
weather, largely due to the financial hedges put in place for the summer season.
Net revenues also increased due to the operation of the new highly efficient
Ravenswood unit, as well as the high level of capacity revenues realized. The
organic growth of the gas distribution business continued with the addition of
approximately 31,500 new customers and oil-to-gas conversions year-to-date, with
customer additions on plan for 2004. The New England rate increase and strong
expense management also contributed to the improvement in our results.
"The results for the third quarter reflect the continued steady growth of our
low risk core gas and electric businesses," said Mr. Catell. "Our new Ravenswood
unit came through the summer with flying colors, running every on-peak day this
cooling season, with extremely high capacity factors and a 98% availability
rate. The hedging program at Ravenswood mitigated the risk in spark spreads for
this summer, which was significantly cooler than normal. This, in addition to
the significant capacity payments received, showed the effectiveness of
KeySpan's overall risk mitigation strategy. In our gas business, solid growth
was enhanced by conversions and new customer additions despite a warmer winter,
and we expect to meet our gross profit margin goal for the year. We also
continued to strengthen our balance sheet with the redemption of long-term
bonds, further enhancing our financial position and reducing interest costs."
Mr. Catell continued, "We have made the decision to exit portions of the
Business Solutions Division, which have not met our expectations. We will
monetize those businesses which we determine do not contribute to the growth of
our core gas and electric operations, and retain the businesses which support
our growth strategy."
KeySpan's Board of Directors approved an extension of the contract for Chairman
and CEO, Robert B. Catell, to July 31, 2006. As part of the management
succession process, the Board also approved the nomination of Robert J. Fani,
President and COO, to be elected to the Board of Directors at its first meeting
in 2005.
2
Bob Catell stated, "Bob Fani and I have further refined KeySpan's strategy, and
developed a detailed execution plan that enables me to focus on strategic
development, while Bob Fani will continue his responsibility for the execution
of the Company's strategy. These actions provide for smooth management
succession, and further solidify KeySpan's alignment with key strategic growth
objectives."
Segment Highlights
The results from continuing operations for the third quarter of 2004 and 2003
are reported on an Operating Income basis as follows:
- ------------------------------------------------- --------------------- ---------------------- --------------------- ---------------
3rd Quarter 3rd Quarter
Operating Income/(Loss) [$ millions] 2004 2003 YTD 2004 YTD 2003
- ------------------------------------------------- --------------------- ---------------------- --------------------- ---------------
Gas Distribution (23.6) (25.1) 391.1 371.4
- ------------------------------------------------- --------------------- ---------------------- --------------------- ---------------
Electric Services 111.2 102.1 226.3 193.9
- ------------------------------------------------- --------------------- ---------------------- --------------------- ---------------
Energy Investments
- ------------------------------------------------- --------------------- ---------------------- --------------------- ---------------
E&P Operations 12.3 51.0 134.0 156.7
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E&P Ceiling Test Writedown - - (48.2) -
- ------------------------------------------------- --------------------- ---------------------- --------------------- ---------------
Net E&P 12.3 51.0 85.8 156.7
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Other Energy Investments 4.1 8.0 22.5 27.2
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Subtotal Energy Investments 16.4 59.0 108.3 183.9
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Energy Services
- ------------------------------------------------- --------------------- ---------------------- --------------------- ---------------
Operations (20.7) (15.5) (44.1) (35.1)
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Goodwill Impairment Charge (122.2) - (122.2) -
- ------------------------------------------------- --------------------- ---------------------- --------------------- ---------------
Subtotal Energy Services (142.9) (15.5) (166.3) (35.1)
- ------------------------------------------------- --------------------- ---------------------- --------------------- ---------------
Total Operating Segments (38.9) 120.5 559.4 714.1
------ ----- ----- -----
- ------------------------------------------------- --------------------- ---------------------- --------------------- ---------------
Other 2.9 (12.6) 14.6 (11.3)
- ------------------------------------------------- --------------------- ---------------------- --------------------- ---------------
Total Operating Income / (Loss) (36.0) 107.9 573.9 702.9
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Notes:
- - Operating income in 2004 represents 100% of KeySpan's exploration and
production subsidiaries' results for the five months ended May 31 and four
months of equity earnings for KeySpan's 23.5% interest in Houston
Exploration, as compared to 100% in 2003.
- - Operating income in 2004 represents 100% of KeySpan's Canadian
subsidiaries' results for the three months ended March 31 and six months of
equity earnings for KeySpan's 17.4% interest in its Canadian subsidiaries,
as compared to 100% in 2003.
Key Operating Income Drivers by Segment
o The Gas Distribution segment, which serves New York City, Long Island and
New England, reported a seasonal operating income loss of approximately $24
million for the third quarter, an improvement of 6% over the same period
last year. Year-to-date results for 2004 of approximately $391 million were
up 5% over last year, despite weather that was 9% warmer than last year.
These results benefited from the rate increase in our New England service
territory, as well as from continued customer additions and conversions and
expense management. For the first nine months of 2004, the rate increase in
KeySpan's New England territory contributed $27 million to net margins. For
3
the nine months ending September 30, 2004, KeySpan completed more than
31,500 gas installations which should add approximately $33 million in new
gross profit margin, consistent with the 2004 plan to add $55 million in
gross profit margin.
o KeySpan's Electric Services segment owns and operates generation in the
capacity-constrained load pockets of New York City and Long Island, and
also manages the Long Island Power Authority's transmission and
distribution system under long-term contracts. Operating income of $111
million for the third quarter of 2004 was $9 million higher than last year,
reflecting the addition of 250 MW of generating capacity at the Ravenswood
facility. This improvement was in spite of the summer weather, which was
approximately 9% cooler than last year and 11% cooler than normal.
KeySpan's high level of capacity payments from its Long Island and
Ravenswood generation facilities as well as its financial hedges
demonstrate the low risk nature of the Electric Services' revenue stream.
o The Energy Investments segment contains the Company's gas exploration and
production operations, including its 23.5% ownership of Houston
Exploration, its Canadian processing plants, pipelines and other
investments. The exploration and production operations reported operating
income of $12 million in the third quarter, compared to $51 million last
year, reflecting the reduction in KeySpan's ownership interest in Houston
Exploration. In addition, Other Energy Investments' operating income
decreased to $4 million, as compared to $8 million last year, substantially
due to KeySpan's reduced ownership in KeySpan Canada. Due to KeySpan's
current ownership levels in Houston Exploration and KeySpan Canada, these
investments are now reported on the equity method of accounting. We expect
the earnings from these non-core businesses to meet our goals for the year.
o The Energy Services segment provides energy-related services to customers
in the Northeast through Home Energy Services and Business Solutions. This
segment reported a loss in operating income of approximately $143 million
for the quarter, which includes the pre-tax non-cash goodwill impairment
charge of $122 million. Operating results, before the goodwill impairment,
were a loss of approximately $21 million, as compared to a loss of
approximately $16 million in the prior year, which reflect continued
deteriorating margin estimates on certain projects. We will continue to
evaluate the fair value of the mechanical contracting companies in relation
to potential disposition alternatives and, as a result, may be required to
write-down the carrying value of them in the near term.
Financial Update
The Company continues its strong financial position. At the end of the third
quarter, on a GAAP basis, the Company's debt to total capitalization ratio was
56.8%. The debt to total capitalization ratio, as calculated under the Company's
credit facilities at the end of the third quarter, was 52.6%, approximately the
same as last quarter. The Company redeemed in August approximately $758 million
of outstanding debt in advance of its scheduled maturity, which further improved
its financial position. This debt redemption reduced the debt to total
capitalization ratio by approximately 400 basis points; however, it was offset
by seasonal working capital, primarily higher priced gas being put into storage,
as well as the impairment charge in the Energy Services segment.
4
The Company has declared a quarterly common stock dividend of $0.445 per share,
payable November 1, 2004, to shareholders of record as of October 13, 2004. This
is the Company's 26th consecutive quarter of paying a dividend, and builds upon
its long-standing commitment of dividend payments to its shareholders. As
indicated earlier, the annual dividend rate will be increased to $1.82 per
share, beginning February 1, 2005.
2004 Earnings Outlook
KeySpan's 2004 earnings guidance remains at $2.55 to $2.75 per share, as
announced in December 2003, excluding the special items noted in the table at
the end of the press release. This guidance includes earnings from continuing
core operations of approximately $2.20 to $2.30 per share, and from exploration
and production operations of approximately $0.35 to $0.45 per share. KeySpan's
earnings forecasts may vary significantly during the year due to, among other
things, changing energy market conditions and weather.
Below is a description of the special items discussed in this release, and their
impact on consolidated earnings.
Special Items - Impact on GAAP Earnings
- ------------------------------------------ -------------------------------------------- --------------------------------------------
Special Item 3rd Quarter 2004 3rd Quarter 2003
- ------------------------------------------ -------------------- ----------------------- --------------------- ----------------------
(millions) Earnings per share (millions) Earnings per share
------------------------------------------ -------------------- ----------------------- --------------------- ---------------------
Goodwill Impairment Charge in
Energy Services $(90.4) $(0.56) - -
- ------------------------------------------ -------------------- ----------------------- --------------------- ----------------------
Debt Redemption Premiums $(29.3) $(0.18) - -
- ------------------------------------------ -------------------- ----------------------- --------------------- ----------------------
Total for the 3rd Quarter $(119.7) $(0.74) - -
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- ------------------------------------------ -------------------------------------------- --------------------------------------------
2nd Quarter 2004 2nd Quarter 2003
- ------------------------------------------ -------------------- ----------------------- --------------------- ----------------------
Transfer of THX $150.1 $0.94 - -
- ------------------------------------------ -------------------- ----------------------- --------------------- ----------------------
Deferred Tax Provision on Remaining
THX investment $(44.1) $(0.28) - -
- ------------------------------------------ -------------------- ----------------------- --------------------- ----------------------
Sale of KeySpan Canada $10.1 $0.06 $(34.1) $(0.22)
- ------------------------------------------ -------------------- ----------------------- --------------------- ----------------------
Ceiling Test Writedown in E&P $(31.1) $(0.19) - -
- ------------------------------------------ -------------------- ----------------------- --------------------- ----------------------
Total for the 2nd Quarter $85.0 $0.53 $(34.1) $(0.22)
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- ------------------------------------------ -------------------------------------------- --------------------------------------------
1st Quarter 2004 1st Quarter 2003
- ------------------------------------------ -------------------- ----------------------- --------------------- ----------------------
Debt Redemption Premiums - - ($13.6) $(0.09)
- ------------------------------------------ -------------------- ----------------------- --------------------- ----------------------
Sale of THX (10%) - - $19.0 $0.12
- ------------------------------------------ -------------------- ----------------------- --------------------- ----------------------
Total for the 1st Quarter - - $5.4 $0.03
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- ------------------------------------------ -------------------- ----------------------- --------------------- ----------------------
Total Year-to-Date $(34.7) $(0.21) $(28.7) $(0.19)
- ------------------------------------------ -------------------- ----------------------- --------------------- ----------------------
Does not foot due to rounding
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Investors are invited to listen to the KeySpan Corporation 2004 Third Quarter
Conference Call on:
Thursday, November 4, 2004, at 10:30 AM (EST)
Dial-In Number: (888) 552-7850
International Dial-In Number: (706) 645-9166
Replay will begin two hours after the call until 11/08/04
Replay Number: 800-642-1687
International Replay Number: (706) 645-9291
Access Code: 1267798
Audio webcast available at http://investor.keyspanenergy.com
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A member of Standard & Poor's 500 Index, KeySpan Corporation (NYSE:KSE) is the
largest distributor of natural gas in the Northeast with 2.5 million customers,
operating regulated natural gas utilities in New York, Massachusetts and New
Hampshire which do business as KeySpan Energy Delivery. This customer focused
business is complemented by the Energy Services business which offers a
portfolio of energy-related products, services and solutions to homes and
businesses under the KeySpan Home Energy Services and KeySpan Business Solutions
companies. KeySpan is also the largest owner of electric generation in New York
State. We own approximately 6,400 megawatts of generating capacity, which
provides power to the 1.1 million customers of the Long Island Power Authority
and supplies 25% of New York City's capacity needs. In addition to these assets,
KeySpan has strategic investments in production, pipeline transportation,
distribution and storage, and owns minority interest in natural gas exploration
and Canadian gas processing. KeySpan has headquarters in Brooklyn, Boston and
Long Island.
Certain statements contained herein are forward-looking statements, which
reflect numerous assumptions and estimates and involve a number of risks and
uncertainties. For these statements, we claim the protection of the safe harbor
for forward-looking statements provided by the Private Securities Litigation
Reform Act of 1995. There are possible developments that could cause our actual
results to differ materially from those forecasted or implied in the
forward-looking statements. You are cautioned not to place undue reliance on
these forward-looking statements, which are current only as of the date of this
filing. We disclaim any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise. Among the factors that could cause actual results to differ
materially are: general economic conditions, especially in the Northeast United
States; available sources and costs of fuel; volatility of energy prices in a
deregulated market environment as well as in the source of natural gas and fuel
used to generate electricity; potential write-down of our investment in natural
gas properties when natural gas prices are depressed or if we have significant
downward revisions in our estimated proved gas reserves; federal and state
regulatory initiatives that increase competition, threaten cost and investment
recovery and impact rate structure; our ability to successfully reduce our cost
structures; implementation of new accounting standards; the degree to which we
develop unregulated business ventures, as well as federal and state regulatory
policies affecting our ability to retain and operate those business ventures;
our ability to identify and make complementary acquisitions, as well as the
successful integration of those acquisitions; inflationary trends and interest
rates; and risks detailed from time to time in reports and other documents filed
by us with the Securities and Exchange Commission.
6
KeySpan Corporation
Consolidated Summary of Earnings
(In Thousands of Dollars, Except Per Share Amounts)
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Three Months Ended September 30 Nine Months Ended September 30
2004 2003 2004 2003
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Revenues
Gas Distribution $ 419,208 $ 405,777 $ 3,023,350 $ 2,970,514
Electric Services 503,879 438,577 1,296,778 1,228,622
Energy Services 118,580 137,961 377,517 399,294
Gas Exploration and Production 4,975 123,052 276,319 373,774
Energy Investments 3,792 26,447 37,814 80,287
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Total Revenues 1,050,434 1,131,814 5,011,778 5,052,491
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Operating Expenses
Purchased gas for resale 186,619 172,452 1,776,322 1,792,917
Fuel and purchased power 176,028 133,313 407,987 333,311
Operations and maintenance 434,874 507,381 1,404,835 1,515,206
Depreciation, depletion and amortization 93,420 135,656 454,737 422,917
Operating taxes 89,525 91,790 302,143 311,754
Goodwill impairment 122,229 - 122,229 -
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Total Operating Expenses 1,102,695 1,040,592 4,468,253 4,376,105
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Gain on sale of Long Lived Assets - 13,974 13,974
Income from Equity Investments 16,213 2,727 30,342 12,486
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Operating Income (36,048) 107,923 573,867 702,846
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Other Income and (Deductions)
Interest Charges (88,308) (78,366) (260,848) (226,503)
Minority interest (58) (19,894) (37,012) (50,252)
Gain (Loss) on sale of subsidiary stock - - 172,894 (11,325)
Cost of debt redemption (45,879) - (45,879) (24,094)
Other 4,204 10,325 26,418 24,779
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Total Other Income (Deductions) (130,041) (87,935) (144,427) (287,395)
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Income Taxes
Current (176,828) (39,317) (13,330) 94,275
Deferred 126,518 46,720 180,115 71,439
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Total Income Taxes (50,310) 7,403 166,785 165,714
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Earnings (Loss) before Change in Accounting Principle (115,779) 12,585 262,655 249,738
Cumulative Effect of Change
in Accounting Principle - - - 174
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Net Income (Loss) (115,779) 12,585 262,655 249,912
Preferred Stock Dividends 1,360 1,461 4,280 4,383
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Earnings (Loss) for Common Stock ($ 117,139) $ 11,124 $ 258,375 $ 245,529
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Basic Earnings Per Share:
Before Change in Accounting Principle, less
Preferred Stock Dividends ($ 0.73) $ 0.07 $ 1.61 $ 1.56
Change in Accounting Principle - - - -
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Basic Earnings Per Share ($ 0.73) $ 0.07 $ 1.61 $ 1.56
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Diluted Earnings Per Share:
Before Change in Accounting Principle, less
Preferred Stock Dividends ($ 0.73) $ 0.07 $ 1.60 $ 1.55
Change in Accounting Principle - - - -
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Diluted Earnings Per Share ($ 0.73) $ 0.07 $ 1.60 $ 1.55
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Average Shares Outstanding (000)
Basic 160,357 158,783 160,139 157,871
Diluted 161,346 159,539 161,091 158,670
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Segment Information
Three Months Ended September 30, 2004
(In Thousands of Dollars)
Energy Investments
--------------------------
Gas Total
Gas Electric Exploration & Other Energy Operating Recon- Total
Distribution Services Production Investments Services Segments ciliations Consolidation
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Unaffiliated Revenues 419,208 503,879 4,975 3,792 118,580 1,050,434 1,050,434
Intersegment Revenues - - - 1,274 7,172 8,446 (8,446) -
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419,208 503,879 4,975 5,066 125,752 1,058,880 (8,446) 1,050,434
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Operation Expenses
Purchased Gas 186,619 - - - - 186,619 - 186,619
Purchased Fuel - 175,906 - 103 - 176,009 19 176,028
Operations and Maintenance 148,816 153,712 1,466 5,395 143,374 452,763 (17,889) 434,874
Depreciation, Depletion
and Amortization 63,381 21,590 1,279 763 2,710 89,723 3,697 93,420
Operating Taxes 44,019 41,513 238 576 415 86,761 2,764 89,525
Goodwill impairment 122,229 122,229 122,229
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Total Operating Expenses 442,835 392,721 2,983 6,837 268,728 1,114,104 (11,409) 1,102,695
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Income From Equity
Investments - - 10,340 5,873 - 16,213 - 16,213
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Operating Income (23,627) 111,158 12,332 4,102 (142,976) (39,011) 2,963 (36,048)
=========================================================================================================
8
Segment Information
Three Months Ended September 30, 2003
(In Thousands of Dollars)
Energy Investments
------------------------
Gas Total
Gas Electric Exploration & Other Energy Operating Recon- Total
Distribution Services Production Investments Services Segments ciliations Consolidation
--------------------------------------------------------------------------------------------------------
Unaffliated Revenues 405,777 438,577 123,052 26,447 137,961 1,131,814 1,131,814
Intersegment Revenues 25 1,252 1,926 3,203 (3,203) -
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405,777 438,602 123,052 27,699 139,887 1,135,017 (3,203) 1,131,814
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Operation Expenses
Purchased Gas 173,116 (664) - - 172,452 - 172,452
Purchased Fuel - 133,184 - 129 133,313 - 133,313
Operations and Maintenance 163,372 151,678 19,747 16,709 152,784 504,290 3,091 507,381
Depreciation, Depletion
and Amortization 59,996 16,492 48,641 4,839 2,283 132,251 3,405 135,656
Operating Taxes 48,401 35,787 3,669 740 318 88,915 2,875 91,790
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Total Operating Expenses 444,885 336,477 72,057 22,417 155,385 1,031,221 9,371 1,040,592
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Gain on sale of long lived
assets 13,974 13,974 13,974
Income From Equity
Investments - - - 2,727 - 2,727 - 2,727
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Operating Income (25,134) 102,125 50,995 8,009 (15,498) 120,497 (12,574) 107,923
========================================================================================================
9
Segment Information
Nine Months Ended September 30, 2004
(In Thousands of Dollars)
Energy Investments
-------------------------
Gas Total
Gas Electric Exploration & Other Energy Operating Recon- Total
Distribution Services Production Investments Services Segments ciliations Consolidation
---------------------------------------------------------------------------------------------------------
Unaffiliated Revenues 3,023,350 1,296,778 276,320 37,814 377,516 5,011,778 - 5,011,778
Intersegment Revenues - - - 3,817 14,755 18,572 (18,572) -
---------------------------------------------------------------------------------------------------------
3,023,350 1,296,778 276,320 41,631 392,271 5,030,350 (18,572) 5,011,778
---------------------------------------------------------------------------------------------------------
Operation Expenses
Purchased Gas 1,776,322 - - - - 1,776,322 - 1,776,322
Purchased Fuel - 407,613 - 340 - 407,953 34 407,987
Operations and Maintenance 489,357 472,880 41,472 27,737 427,306 1,458,751 (53,916) 1,404,835
Depreciation, Depletion
and Amortization 207,131 65,556 155,928 6,609 7,883 443,107 11,630 454,737
Operating Taxes 159,450 124,456 5,977 1,929 1,210 293,022 9,121 302,143
Goodwill impairment 122,229 122,229 122,229
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Total Operating Expenses 2,632,260 1,070,505 203,377 36,615 558,628 4,501,384 (33,131) 4,468,253
---------------------------------------------------------------------------------------------------------
Income From Equity
Investments - - 12,885 17,457 - 30,342 - 30,342
---------------------------------------------------------------------------------------------------------
Operating Income 391,090 226,273 85,828 22,473 (166,357) 559,308 14,559 573,867
=========================================================================================================
10
Segment Information
Nine Months Ended September 30, 2003
(In Thousands of Dollars)
Energy Investments
--------------------------
Gas Total
Gas Electric Exploration & Other Energy Operating Recon- Total
Distribution Services Production Investments Services Segments ciliations Consolidation
---------------------------------------------------------------------------------------------------------
Unaffiliated Revenues 2,970,514 1,228,622 373,774 80,287 399,294 5,052,491 - 5,052,491
Intersegment Revenues - 76 - 3,756 4,894 8,726 (8,726) -
---------------------------------------------------------------------------------------------------------
2,970,514 1,228,698 373,774 84,043 404,188 5,061,217 (8,726) 5,052,491
---------------------------------------------------------------------------------------------------------
Operation Expenses
Purchased Gas 1,744,733 48,185 - 1,792,918 - 1,792,918
Purchased Fuel - 332,931 - 380 333,311 - 333,311
Operations and Maintenance 492,583 495,873 59,342 52,741 431,552 1,532,091 (16,889) 1,515,202
Depreciation, Depletion
and Amortization 197,006 49,300 145,559 13,881 6,759 412,505 10,415 422,920
Operating Taxes 178,746 108,540 12,140 2,212 960 302,598 9,156 311,754
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Total Operating Expenses 2,613,068 1,034,829 217,041 69,214 439,271 4,373,423 2,682 4,376,105
---------------------------------------------------------------------------------------------------------
Gain on sale of long
lived assets 13,974 13,974 13,974
Income From Equity
Investments - - - 12,378 - 12,378 108 12,486
---------------------------------------------------------------------------------------------------------
Operating Income 371,420 193,869 156,733 27,207 (35,083) 714,146 (11,300) 702,846
=========================================================================================================
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