SECURITIES AND EXCHANGE COMMISSION
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Washington, D.C. 20549
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FORM 10-Q
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(Mark One)
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þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
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THE SECURITIES EXCHANGE ACT OF 1934
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For the Quarterly Period Ended June 30, 2013
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OR
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¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
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THE SECURITIES EXCHANGE ACT OF 1934
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For the transition period from to
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Commission File Number 1-14174
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AGL RESOURCES INC.
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(Exact name of registrant as specified in its charter)
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Georgia
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58-2210952
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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Ten Peachtree Place NE, Atlanta, Georgia 30309
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(Address and zip code of principal executive offices)
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404-584-4000
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(Registrant's telephone number, including area code)
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No ¨
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Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes þ No ¨
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Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” ”accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
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Large accelerated filer þ
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Accelerated filer ¨
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Non-accelerated filer ¨ (Do not check if a smaller reporting company)
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Smaller reporting company ¨
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Indicate by check mark whether the registrant is a shell company (as defined in Exchange Act Rule 12b-2). Yes ¨ No þ
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Indicate the number of shares outstanding of each of the issuer's classes of common stock as of the latest practicable date.
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Class
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Outstanding as of July 24, 2013
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Common Stock, $5.00 Par Value
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118,592,240
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Page
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Glossary of Key Terms
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3 | ||||||
Item Number.
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8 | |||||||
9 | |||||||
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9 | |||||||
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2 | 28 | ||||||
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32 | |||||||
39 | |||||||
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3 | 44 | ||||||
4 | 47 | ||||||
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1 | 47 | ||||||
1 | A | 48 | |||||
2 | 48 | ||||||
6 | 49 | ||||||
50 |
2012 Form 10-K
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Our Annual Report on Form 10-K for the year ended December 31, 2012, filed with the SEC on February 6, 2013
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AGL Capital
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AGL Capital Corporation
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AGL Credit Facility
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$1.3 billion credit agreement entered into by AGL Capital to support the AGL Capital commercial paper program
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Atlanta Gas Light
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Atlanta Gas Light Company
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Bcf
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Billion cubic feet
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Central Valley
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Central Valley Gas Storage, LLC
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Chattanooga Gas
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Chattanooga Gas Company
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Compass Energy
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Compass Energy Services, Inc.
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EBIT
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Earnings before interest and taxes, a non-GAAP measure that includes operating income and other income and excludes financing costs, including interest on debt, and income tax expense, each of which we evaluate on a consolidated level.
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Fitch
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Fitch Ratings
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GAAP
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Accounting principles generally accepted in the United States of America
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Georgia Commission
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Georgia Public Service Commission, the state regulatory agency for Atlanta Gas Light
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Golden Triangle Storage
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Golden Triangle Storage, Inc.
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Heating Degree Days
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A measure of the effects of weather on our businesses, calculated as the extent to which the average daily temperature is less than 65 degrees Fahrenheit
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Heating Season
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The period from November through March when natural gas usage and operating revenues are generally higher
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Horizon Pipeline
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Horizon Pipeline Company, LLC
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Illinois Commission
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Illinois Commerce Commission, the state regulatory agency for Nicor Gas
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LIFO
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Last-in, first-out
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LOCOM
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Lower of weighted average cost or current market price
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Marketers
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Marketers selling retail natural gas in Georgia and certificated by the Georgia Commission
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Moody’s
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Moody’s Investors Service
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New Jersey BPU
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New Jersey Board of Public Utilities, the state regulatory agency for Elizabethtown Gas
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Nicor
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Nicor Inc. - an acquisition completed in December 2011 and former holding company of Nicor Gas
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Nicor Advanced Energy
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Prairie Point Energy, LLC, doing business as Nicor Advanced Energy
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Nicor Gas
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Northern Illinois Gas Company, doing business as Nicor Gas Company
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Nicor Gas Credit Facility
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$700 million credit facility entered into by Nicor Gas to support its commercial paper program
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Nicor Services
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Nicor Energy Services Company
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Nicor Solutions
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Nicor Solutions, LLC
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NUI
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NUI Corporation - an acquisition completed in November 2004
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NYMEX
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New York Mercantile Exchange, Inc.
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OCI
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Other comprehensive income
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Operating margin
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A non-GAAP measure of income, calculated as operating revenues minus cost of goods sold and revenue tax expense, that excludes operation and maintenance expense, depreciation and amortization, certain taxes other than income taxes, Nicor merger expenses and gains or losses on the sale of our assets, if any.
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OTC
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Over-the-counter
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PBR
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Performance-based rate, a regulatory plan at Nicor Gas that provided economic incentives based on natural gas cost performance. The plan terminated in 2003.
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Piedmont
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Piedmont Natural Gas Company, Inc.
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PP&E
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Property, plant and equipment
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S&P
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Standard & Poor’s Ratings Services
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SEC
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Securities and Exchange Commission
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Sequent
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Sequent Energy Management, L.P.
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Seven Seas
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Seven Seas Insurance Company, Inc.
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SouthStar
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SouthStar Energy Services, LLC
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STRIDE
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Atlanta Gas Light’s Strategic Infrastructure Development and Enhancement program
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Tennessee Authority
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Tennessee Regulatory Authority, the state regulatory agency for Chattanooga Gas
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TEU
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Twenty-foot equivalent unit, a measure of volume in containerized shipping equal to one 20-foot-long container
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Triton
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Triton Container Investments, LLC
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Tropical Shipping
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Tropical Shipping and Construction Company Limited
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VaR
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Value at risk
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VIE
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Variable interest entity
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Virginia Commission
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Virginia State Corporation Commission, the state regulatory agency for Virginia Natural Gas
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Virginia Natural Gas
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Virginia Natural Gas, Inc.
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WACOG
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Weighted average cost of gas
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As of | ||||||||||||
In millions, except share amounts
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June 30, 2013 |
December 31, 2012
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June 30, 2012
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Current assets
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||||||||||||
Cash and cash equivalents
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$ | 184 | $ | 131 | $ | 87 | ||||||
Short-term investments
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42 | 58 | 61 | |||||||||
Receivables
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Energy marketing receivables
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608 | 677 | 347 | |||||||||
Gas, unbilled and other receivables
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437 | 686 | 349 | |||||||||
Less allowance for uncollectible accounts
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41 | 28 | 39 | |||||||||
Total receivables
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1,004 | 1,335 | 657 | |||||||||
Inventories, net
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530 | 708 | 549 | |||||||||
Regulatory assets
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120 | 145 | 146 | |||||||||
Derivative instruments
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113 | 130 | 181 | |||||||||
Other current assets
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70 | 161 | 199 | |||||||||
Total current assets
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2,063 | 2,668 | 1,880 | |||||||||
Long-term assets and other deferred debits
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Property, plant and equipment
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10,761 | 10,478 | 10,091 | |||||||||
Less accumulated depreciation
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2,264 | 2,131 | 2,004 | |||||||||
Property, plant and equipment, net
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8,497 | 8,347 | 8,087 | |||||||||
Goodwill
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1,883 | 1,837 | 1,813 | |||||||||
Regulatory assets
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898 | 944 | 1,083 | |||||||||
Intangible assets
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184 | 96 | 100 | |||||||||
Derivative instruments
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17 | 14 | 45 | |||||||||
Other
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253 | 235 | 221 | |||||||||
Total long-term assets and other deferred debits
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11,732 | 11,473 | 11,349 | |||||||||
Total assets
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$ | 13,795 | $ | 14,141 | $ | 13,229 | ||||||
Current liabilities
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Energy marketing trade payable
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$ | 628 | $ | 611 | $ | 383 | ||||||
Short-term debt
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521 | 1,377 | 731 | |||||||||
Accounts payable - trade
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344 | 334 | 248 | |||||||||
Regulatory liabilities
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216 | 161 | 137 | |||||||||
Accrued expenses
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170 | 140 | 138 | |||||||||
Customer deposit and credit balances
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114 | 143 | 139 | |||||||||
Temporary LIFO liquidation
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84 | - | 41 | |||||||||
Accrued environmental remediation liabilities
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62 | 57 | 59 | |||||||||
Accrued regulatory infrastructure program costs
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55 | 121 | 158 | |||||||||
Derivative instruments
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33 | 33 | 58 | |||||||||
Current portion of long-term debt and capital leases
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- | 226 | 231 | |||||||||
Other current liabilities
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122 | 135 | 137 | |||||||||
Total current liabilities
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2,349 | 3,338 | 2,460 | |||||||||
Long-term liabilities and other deferred credits
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Long-term debt
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3,819 | 3,327 | 3,334 | |||||||||
Accumulated deferred income taxes
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1,567 | 1,588 | 1,509 | |||||||||
Regulatory liabilities
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1,510 | 1,477 | 1,453 | |||||||||
Accrued environmental remediation liabilities
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406 | 387 | 371 | |||||||||
Accrued retiree welfare benefits
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264 | 268 | 296 | |||||||||
Accrued pension obligations
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246 | 240 | 221 | |||||||||
Derivative instruments
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6 | 6 | 8 | |||||||||
Other long-term liabilities and other deferred credits
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73 | 75 | 148 | |||||||||
Total long-term liabilities and other deferred credits
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7,891 | 7,368 | 7,340 | |||||||||
Total liabilities and other deferred credits
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10,240 | 10,706 | 9,800 | |||||||||
Commitments, guarantees and contingencies (see Note 9)
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Equity
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Common stock, $5 par value; 750,000,000 shares authorized:
outstanding: 118,560,687 shares at June 30, 2013, 117,855,075 shares at December 31, 2012 and 117,505,440 shares at June 30, 2012
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594 | 590 | 589 | |||||||||
Additional paid in capital
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2,035 | 2,014 | 2,003 | |||||||||
Retained earnings
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1,127 | 1,035 | 1,035 | |||||||||
Accumulated other comprehensive loss
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(209 | ) | (218 | ) | (207 | ) | ||||||
Treasury shares, at cost: 216,523 shares at June 30, 2013 and December 31, 2012 and June 30, 2012
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(8 | ) | (8 | ) | (8 | ) | ||||||
Total common shareholders’ equity
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3,539 | 3,413 | 3,412 | |||||||||
Noncontrolling interest
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16 | 22 | 17 | |||||||||
Total equity
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3,555 | 3,435 | 3,429 | |||||||||
Total liabilities and equity
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$ | 13,795 | $ | 14,141 | $ | 13,229 | ||||||
See Notes to Condensed Consolidated Financial Statements (Unaudited).
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Three months ended June 30,
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Six months ended June 30,
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In millions, except per share amounts
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2013
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2012
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2013
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2012
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Operating revenues (include revenue taxes of $24 and $74 for the three and six months in 2013 and $14 and $55 for the three and six months in 2012)
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$ | 904 | $ | 686 | $ | 2,613 | $ | 2,090 | ||||||||
Operating expenses
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Cost of goods sold
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407 | 240 | 1,380 | 959 | ||||||||||||
Operation and maintenance
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233 | 218 | 492 | 463 | ||||||||||||
Depreciation and amortization
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109 | 102 | 216 | 206 | ||||||||||||
Taxes other than income taxes
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44 | 32 | 115 | 96 | ||||||||||||
Nicor merger expenses
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- | 3 | - | 13 | ||||||||||||
Total operating expenses
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793 | 595 | 2,203 | 1,737 | ||||||||||||
Gain on sale of Compass Energy
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11 | - | 11 | - | ||||||||||||
Operating income
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122 | 91 | 421 | 353 | ||||||||||||
Other income
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7 | 9 | 12 | 13 | ||||||||||||
Interest expense, net
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(46 | ) | (45 | ) | (92 | ) | (92 | ) | ||||||||
Earnings before income taxes
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83 | 55 | 341 | 274 | ||||||||||||
Income tax expense
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33 | 20 | 127 | 100 | ||||||||||||
Net income
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50 | 35 | 214 | 174 | ||||||||||||
Less net income attributable to the noncontrolling interest
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1 | 1 | 11 | 10 | ||||||||||||
Net income attributable to AGL Resources Inc.
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$ | 49 | $ | 34 | $ | 203 | $ | 164 | ||||||||
Per common share data
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Basic earnings per common share attributable to AGL Resources Inc. common shareholders
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$ | 0.41 | $ | 0.28 | $ | 1.72 | $ | 1.40 | ||||||||
Diluted earnings per common share attributable to AGL Resources Inc. common shareholders
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$ | 0.41 | $ | 0.28 | $ | 1.72 | $ | 1.40 | ||||||||
Cash dividends declared per common share
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$ | 0.47 | $ | 0.46 | $ | 0.94 | $ | 0.82 | ||||||||
Weighted average number of common shares outstanding
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Basic
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117.8 | 116.9 | 117.6 | 116.8 | ||||||||||||
Diluted
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118.2 | 117.2 | 117.9 | 117.1 |
Three months ended June 30,
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Six months ended June 30,
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In millions
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2013
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2012
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2013
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2012
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Net income
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$ | 50 | $ | 35 | $ | 214 | $ | 174 | ||||||||
Other comprehensive income (loss), net of tax
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Retirement benefit plans
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Reclassification of actuarial losses to net benefit cost (net of income tax of $3 and $5 for the three and six months ended June 30, 2013, and $3 and $4 for the three and six months ended June 30, 2012)
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4 | 7 | 8 | 8 | ||||||||||||
Reclassification of prior service credits to net benefit cost (net of income tax of $1 for the six months ended June 30, 2013)
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- | - | (1 | ) | - | |||||||||||
Retirement benefit plans
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4 | 7 | 7 | 8 | ||||||||||||
Cash flow hedges, net of tax
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||||||||||||||||
Net derivative instrument (losses) gains arising during the period (net of income tax of $1 for the three months ended June 30, 2013, and $3 and $1 for the three and six months ended June 30, 2012)
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(1 | ) | 4 | 1 | 2 | |||||||||||
Reclassification of realized derivative instrument (gains) losses to net income (net of income tax of $1 for the six months ended June 30, 2013)
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(1 | ) | - | 1 | - | |||||||||||
Cash flow hedges, net
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(2 | ) | 4 | 2 | 2 | |||||||||||
Other comprehensive income, net of tax
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2 | 11 | 9 | 10 | ||||||||||||
Comprehensive income
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52 | 46 | 223 | 184 | ||||||||||||
Less comprehensive income attributable to noncontrolling interest
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1 | 1 | 11 | 10 | ||||||||||||
Comprehensive income attributable to AGL Resources Inc.
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$ | 51 | $ | 45 | $ | 212 | $ | 174 |
(UNAUDITED)
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AGL Resources Inc. Shareholders
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Common stock
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Additional paid-in
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Retained
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Accumulated other comprehensive
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Treasury
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Noncontrolling
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In millions, except per share amounts
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Shares
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Amount
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capital
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earnings
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loss
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shares
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interest
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Total
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Balance as of December 31, 2011
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117.0 | $ | 586 | $ | 1,989 | $ | 967 | $ | (217 | ) | $ | (7 | ) | $ | 21 | $ | 3,339 | |||||||||||||||
Net income
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- | - | - | 164 | - | - | 10 | 174 | ||||||||||||||||||||||||
Other comprehensive income
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- | - | - | - | 10 | - | - | 10 | ||||||||||||||||||||||||
Dividends on common stock ($0.82 per share)
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- | - | - | (96 | ) | - | - | - | (96 | ) | ||||||||||||||||||||||
Distributions to noncontrolling interest
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- | - | - | - | - | - | (14 | ) | (14 | ) | ||||||||||||||||||||||
Stock issued, dividend reinvestment plan
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0.5 | 3 | 9 | - | - | (1 | ) | - | 11 | |||||||||||||||||||||||
Stock-based compensation expense (net of tax)
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- | - | 5 | - | - | - | - | 5 | ||||||||||||||||||||||||
Balance as of June 30, 2012
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117.5 | $ | 589 | $ | 2,003 | $ | 1,035 | $ | (207 | ) | $ | (8 | ) | $ | 17 | $ | 3,429 |
AGL Resources Inc. Shareholders
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Common stock
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Additional paid-in
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Retained
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Accumulated other comprehensive
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Treasury
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Noncontrolling
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In millions, except per share amounts
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Shares
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Amount
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capital
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earnings
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loss
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shares
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interest
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Total
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Balance as of December 31, 2012
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117.9 | $ | 590 | $ | 2,014 | $ | 1,035 | $ | (218 | ) | $ | (8 | ) | $ | 22 | $ | 3,435 | |||||||||||||||
Net income
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- | - | - | 203 | - | - | 11 | 214 | ||||||||||||||||||||||||
Other comprehensive income
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- | - | - | - | 9 | - | - | 9 | ||||||||||||||||||||||||
Dividends on common stock ($0.94 per share)
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- | - | - | (111 | ) | - | - | - | (111 | ) | ||||||||||||||||||||||
Distributions to noncontrolling interest
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- | - | - | - | - | - | (17 | ) | (17 | ) | ||||||||||||||||||||||
Stock granted, share-based compensation, net of forfeitures
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- | - | (6 | ) | - | - | - | (6 | ) | |||||||||||||||||||||||
Stock issued, dividend reinvestment plans
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0.1 | 1 | 5 | - | - | - | - | 6 | ||||||||||||||||||||||||
Stock issued, share-based compensation, net of forfeitures
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0.6 | 3 | 18 | - | - | - | - | 21 | ||||||||||||||||||||||||
Stock-based compensation expense (net of tax)
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- | - | 4 | - | - | - | - | 4 | ||||||||||||||||||||||||
Balance as of June 30, 2013
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118.6 | $ | 594 | $ | 2,035 | $ | 1,127 | $ | (209 | ) | $ | (8 | ) | $ | 16 | $ | 3,555 |
See Notes to Condensed Consolidated Financial Statements (Unaudited).
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Six months ended June 30,
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In millions
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2013
|
2012
|
||||||
Cash flows from operating activities
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||||||||
Net income
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$ | 214 | $ | 174 | ||||
Adjustments to reconcile net income to net cash flow provided by operating activities
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||||||||
Depreciation and amortization
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216 | 206 | ||||||
Change in derivative instrument assets and liabilities
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14 | 18 | ||||||
Deferred income taxes
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(18 | ) | 56 | |||||
Gain on sale of Compass Energy
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(11 | ) | - | |||||
Changes in certain assets and liabilities
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||||||||
Receivables, other than energy marketing
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267 | 367 | ||||||
Inventories, net of temporary LIFO liquidation
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262 | 242 | ||||||
Energy marketing receivables and trade payables, net
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86 | 53 | ||||||
Prepaid taxes
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57 | 33 | ||||||
Accrued natural gas costs
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40 | 20 | ||||||
Trade payables, other than energy marketing
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(15 | ) | (34 | ) | ||||
Other - net
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49 | (45 | ) | |||||
Net cash flow provided by operating activities
|
1,161 | 1,090 | ||||||
Cash flows from investing activities
|
||||||||
Expenditures for property, plant and equipment
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(318 | ) | (350 | ) | ||||
Acquisitions of assets
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(122 | ) | - | |||||
Disposition of assets
|
12 | - | ||||||
Other
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15 | (8 | ) | |||||
Net cash flow used in investing activities
|
(413 | ) | (358 | ) | ||||
Cash flows from financing activities
|
||||||||
Issuance of senior notes
|
494 | - | ||||||
Net payments and borrowings of short-term debt
|
(857 | ) | (590 | ) | ||||
Payment of senior notes
|
(225 | ) | - | |||||
Dividends paid on common shares
|
(111 | ) | (96 | ) | ||||
Distribution to noncontrolling interest
|
(17 | ) | (14 | ) | ||||
Other
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21 | (14 | ) | |||||
Net cash flow used in financing activities
|
(695 | ) | (714 | ) | ||||
Net increase in cash and cash equivalents
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53 | 18 | ||||||
Cash and cash equivalents at beginning of period
|
131 | 69 | ||||||
Cash and cash equivalents at end of period
|
$ | 184 | $ | 87 | ||||
Cash paid during the period for
|
||||||||
Interest
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$ | 89 | $ | 86 | ||||
Income taxes
|
$ | 60 | $ | 4 | ||||
Non cash financing transaction
|
||||||||
Refinancing of gas facility revenue bonds
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$ | 200 | $ | - |
Three months ended June 30,
|
Six months ended June 30,
|
|||||||||||||||
In millions
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
Retail operations
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$ | - | $ | - | $ | - | $ | 3 | ||||||||
Wholesale services
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8 | - | 8 | 18 | ||||||||||||
Midstream operations
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- | - | - | 1 |
In millions
|
June 30, 2013
|
December 31, 2012
|
June 30, 2012
|
|||||||||
Regulatory assets
|
||||||||||||
Recoverable regulatory infrastructure program costs
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$ | 46 | $ | 47 | $ | 47 | ||||||
Recoverable environmental remediation costs
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27 | 38 | 30 | |||||||||
Recoverable pension and retiree welfare benefit costs
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19 | 19 | 27 | |||||||||
Other regulatory assets
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28 | 41 | 42 | |||||||||
Total regulatory assets - current
|
120 | 145 | 146 | |||||||||
Recoverable environmental remediation costs
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458 | 438 | 428 | |||||||||
Recoverable pension and retiree welfare benefit costs
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188 | 196 | 232 | |||||||||
Recoverable regulatory infrastructure program costs
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116 | 167 | 268 | |||||||||
Long-term debt fair value adjustment
|
86 | 90 | 94 | |||||||||
Other regulatory assets
|
50 | 53 | 61 | |||||||||
Total regulatory assets - long-term
|
898 | 944 | 1,083 | |||||||||
Total regulatory assets
|
$ | 1,018 | $ | 1,089 | $ | 1,229 | ||||||
Regulatory liabilities
|
||||||||||||
Accrued natural gas costs
|
$ | 130 | $ | 93 | $ | 73 | ||||||
Bad debt rider
|
39 | 37 | 31 | |||||||||
Accumulated removal costs
|
17 | 16 | 14 | |||||||||
Other regulatory liabilities
|
30 | 15 | 19 | |||||||||
Total regulatory liabilities - current
|
216 | 161 | 137 | |||||||||
Accumulated removal costs
|
1,431 | 1,393 | 1,366 | |||||||||
Unamortized investment tax credit
|
27 | 29 | 31 | |||||||||
Regulatory income tax liability
|
26 | 27 | 25 | |||||||||
Bad debt rider
|
20 | 17 | 18 | |||||||||
Other regulatory liabilities
|
6 | 11 | 13 | |||||||||
Total regulatory liabilities - long-term
|
1,510 | 1,477 | 1,453 | |||||||||
Total regulatory liabilities
|
$ | 1,726 | $ | 1,638 | $ | 1,590 |
Three months ended June 30,
|
Six months ended June 30,
|
|||||||||||||||
In millions
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
Equity investment income (1)
|
$ | 2 | $ | 5 | $ | 5 | $ | 8 | ||||||||
Allowance for funds used during construction (AFUDC) - equity
|
3 | 1 | 6 | 2 | ||||||||||||
Other, net
|
2 | 3 | 1 | 3 | ||||||||||||
Total other income
|
$ | 7 | $ | 9 | $ | 12 | $ | 13 |
(1)
|
Primarily relates to our investment in Triton. See Note 8 for additional information.
|
Three months ended June 30,
|
Six months ended June 30,
|
|||||||||||||||
In millions (except per share amounts)
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
Net income attributable to AGL Resources Inc.
|
$ | 49 | $ | 34 | $ | 203 | $ | 164 | ||||||||
Denominator:
|
||||||||||||||||
Basic weighted average number of shares outstanding (1)
|
117.8 | 116.9 | 117.6 | 116.8 | ||||||||||||
Effect of dilutive securities
|
0.4 | 0.3 | 0.3 | 0.3 | ||||||||||||
Diluted weighted average number of shares outstanding
|
118.2 | 117.2 | 117.9 | 117.1 | ||||||||||||
Earnings per share:
|
||||||||||||||||
Basic
|
$ | 0.41 | $ | 0.28 | $ | 1.72 | $ | 1.40 | ||||||||
Diluted
|
$ | 0.41 | $ | 0.28 | $ | 1.72 | $ | 1.40 | ||||||||
(1) Daily weighted average shares outstanding.
|
In millions
|
||||
Current assets
|
$ | 5 | ||
PP&E
|
11 | |||
Goodwill
|
46 | |||
Intangible assets
|
64 | |||
Current liabilities
|
(4 | ) | ||
Total purchase price
|
$ | 122 |
Recurring fair values - Derivative instruments
|
||||||||||||||||||||||||
June 30, 2013
|
December 31, 2012
|
June 30, 2012
|
||||||||||||||||||||||
In millions
|
Assets (1)
|
Liabilities
|
Assets (1)
|
Liabilities
|
Assets (1)
|
Liabilities
|
||||||||||||||||||
Natural gas derivatives
|
||||||||||||||||||||||||
Quoted prices in active markets (Level 1)
|
$ | 4 | $ | (51 | ) | $ | 8 | $ | (45 | ) | $ | 9 | $ | (103 | ) | |||||||||
Significant other observable inputs (Level 2)
|
78 | (35 | ) | 96 | (30 | ) | 148 | (48 | ) | |||||||||||||||
Netting of cash collateral
|
47 | 47 | 33 | 36 | 52 | 85 | ||||||||||||||||||
Total carrying value (2) (3)
|
$ | 129 | $ | (39 | ) | $ | 137 | $ | (39 | ) | $ | 209 | $ | (66 | ) | |||||||||
Interest rate derivatives
|
||||||||||||||||||||||||
Significant other observable inputs (Level 2)
|
$ | - | $ | - | $ | 3 | $ | - | $ | 17 | $ | - |
(1)
|
Balances of $1 million of premium at June 30, 2013 and $4 million at December 31, 2012 associated with weather derivatives have been excluded, as they are not material and some are accounted for based on intrinsic value.
|
(2)
|
There were no material unobservable inputs (Level 3) for any of the dates presented.
|
(3)
|
There were no material transfers between Level 1, Level 2 or Level 3 for any of the dates presented.
|
In millions
|
At June 30, 2013
|
At December 31, 2012
|
At June 30, 2012
|
|||||||||
Money market funds (1)
|
$ | 48 | $ | 66 | $ | 76 |
(1)
|
Carried at fair value and classified as Level 1 within the fair value hierarchy.
|
In millions
|
June 30, 2013
|
December 31, 2012
|
June 30, 2012
|
|||||||||
Long-term debt amortized cost
|
$ | 3,819 | $ | 3,553 | $ | 3,565 | ||||||
Long-term debt fair value (1)
|
4,070 | 4,057 | 4,043 |
(1)
|
Fair value determined using Level 2 inputs.
|
Recognition and Measurement
|
||
Accounting Treatment
|
Statements of Financial Position
|
Income Statement
|
Cash flow hedge
|
Derivative carried at fair value
|
Ineffective portion of the gain or loss on the derivative instrument is recognized in earnings
|
Effective portion of the gain or loss on the derivative instrument is reported initially as a component of accumulated OCI (loss)
|
Effective portion of the gain or loss on the derivative instrument is reclassified out of accumulated OCI (loss) and into earnings when the hedged transaction affects earnings
|
|
Fair value hedge | Derivative carried at fair value | Gains or losses on the derivative instrument and the hedged item are recognized in earnings. As a result, |
Changes in fair value of the hedged item are recorded as adjustments to the carrying amount of the hedged item
|
to the extent the hedge is effective, the gains or losses will offset and there is no impact on earnings. Any hedge ineffectiveness will impact earnings
|
|
Not designated as hedges
|
Derivative carried at fair value
|
Realized and unrealized gains or losses on the derivative instrument are recognized in earnings
|
Distribution operations’ gains and losses on derivative instruments are deferred as regulatory assets or liabilities until included in cost of goods sold
|
The gain or loss on these derivative instruments is reflected in natural gas costs and is ultimately included in billings to customers
|
Three months ended June 30,
|
Six months ended June 30,
|
|||||||||||||||
In millions
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
Nicor Gas
|
$ | 9 | $ | (25 | ) | $ | 8 | $ | (26 | ) | ||||||
Elizabethtown Gas
|
(1 | ) | (7 | ) | (4 | ) | (16 | ) |
In Bcf (1)
|
June 30, 2013 (2)
|
December 31, 2012
|
June 30, 2012
|
|||||||||
Hedge designation
|
||||||||||||
Cash flow hedges
|
3 | 6 | 7 | |||||||||
Not designated as hedges
|
221 | 96 | 47 | |||||||||
Total hedges
|
224 | 102 | 54 | |||||||||
Hedge position
|
||||||||||||
Short position
|
(2,311 | ) | (1,955 | ) | (2,018 | ) | ||||||
Long position
|
2,535 | 2,057 | 2,072 | |||||||||
Net long position
|
224 | 102 | 54 |
(1)
|
Volumes related to Nicor Gas exclude variable-priced contracts, which are accounted for as derivatives, but whose fair values are not directly impacted by changes in commodity prices.
|
(2)
|
Approximately 98% of these contracts have durations of two years or less and the remaining 2% expire between 2 and 6 years.
|
June 30, 2013
|
December 31, 2012
|
June 30, 2012
|
December 31, 2011
|
|||||||||||||||||||||||||||||||||
In millions
|
Classification (1) (2) |
Assets
|
Liabilities
|
Assets
|
Liabilities
|
Assets
|
Liabilities
|
Assets
|
Liabilities
|
|||||||||||||||||||||||||||
Designated as cash flow hedges and fair value hedges
|
||||||||||||||||||||||||||||||||||||
Natural gas contracts
|
Current
|
$ | 2 | $ | (1 | ) | $ | 1 | $ | (2 | ) | $ | 6 | $ | (7 | ) | $ | 9 | $ | (12 | ) | |||||||||||||||
Natural gas contracts
|
Long-term
|
- | - | 3 | - | - | - | - | - | |||||||||||||||||||||||||||
Interest rate swap agreements
|
Long-term
|
- | - | - | - | 17 | - | 13 | (13 | ) | ||||||||||||||||||||||||||
Total
|
2 | (1 | ) | 4 | (2 | ) | 23 | (7 | ) | 22 | (25 | ) | ||||||||||||||||||||||||
Not designated as cash flow hedges
|
||||||||||||||||||||||||||||||||||||
Natural gas contracts
|
Current
|
456 | (445 | ) | 394 | (355 | ) | 493 | (489 | ) | 706 | (689 | ) | |||||||||||||||||||||||
Natural gas contracts
|
Long-term
|
124 | (139 | ) | 45 | (50 | ) | 69 | (66 | ) | 133 | (116 | ) | |||||||||||||||||||||||
Total
|
580 | (584 | ) | 439 | (405 | ) | 562 | (555 | ) | 839 | (805 | ) | ||||||||||||||||||||||||
Gross amount of recognized assets and liabilities
|
582 | (585 | ) | 443 | (407 | ) | 585 | (562 | ) | 861 | (830 | ) | ||||||||||||||||||||||||
Gross amounts offset in our unaudited Condensed Consolidated Statements of Financial Position
|
(452 | ) | 546 | (299 | ) | 368 | (359 | ) | 496 | (573 | ) | 720 | ||||||||||||||||||||||||
Net amounts of assets and liabilities presented in our unaudited Condensed Consolidated Statements of Financial Position
|
$ | 130 | $ | (39 | ) | $ | 144 | $ | (39 | ) | $ | 226 | $ | (66 | ) | $ | 288 | $ | (110 | ) |
(1)
|
The gross amounts of recognized assets and liabilities are netted within our unaudited Condensed Consolidated Statements of Financial Position to the extent that we have netting arrangements with the counterparties.
|
(2)
|
As required by the authoritative guidance related to derivatives and hedging, the gross amounts of recognized assets and liabilities above do not include cash collateral held on deposit in broker margin accounts of $94 million as of June 30, 2013, $69 million as of December 31, 2012, $137 million as of June 30, 2012 and $147 million as of December 31, 2011. Cash collateral is included in the “Gross amounts offset in our unaudited Condensed Consolidated Statements of Financial Position” line of this table.
|
Three months ended June 30,
|
Six months ended June 30,
|
|||||||||||||||
In millions
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
Designated as cash flow hedges
|
||||||||||||||||
Natural gas contracts - gain reclassified from OCI into cost of goods sold
|
$ | 1 | $ | 3 | $ | 1 | $ | 4 | ||||||||
Natural gas contracts – gain reclassified from OCI into operation and maintenance expense
|
- | 1 | - | 1 | ||||||||||||
Natural gas contracts – loss recognized in OCI (effective portion)
|
- | (1 | ) | - | - | |||||||||||
Interest rate swaps - ineffectiveness recorded as an offset to interest expense
|
- | (1 | ) | (3 | ) | (3 | ) | |||||||||
Not designated as hedges
|
||||||||||||||||
Natural gas contracts - net fair value adjustments recorded in operating revenues (1)
|
22 | 15 | (2 | ) | 19 | |||||||||||
Natural gas contracts - net fair value adjustments recorded in cost of goods sold (2)
|
(1 | ) | (1 | ) | (1 | ) | (3 | ) | ||||||||
Total gains (losses) on derivative instruments
|
$ | 22 | $ | 16 | $ | (5 | ) | $ | 18 |
(1)
|
Associated with the fair value of existing derivative instruments at June 30, 2013 and 2012.
|
(2)
|
Excludes losses recorded in operating revenues or cost of goods sold associated with weather derivatives of $3 million for the six months ended June 30, 2013 and gains of $14 million for the six months ended June 30, 2012.
|
Three months ended June 30,
|
Six months ended June 30,
|
|||||||||||||||
In millions
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
Service cost
|
$ | 7 | $ | 7 | $ | 15 | $ | 14 | ||||||||
Interest cost
|
11 | 11 | 21 | 22 | ||||||||||||
Expected return on plan assets
|
(15 | ) | (16 | ) | (31 | ) | (32 | ) | ||||||||
Net amortization of prior service cost
|
(1 | ) | - | (1 | ) | (1 | ) | |||||||||
Recognized actuarial loss
|
9 | 8 | 17 | 17 | ||||||||||||
Net periodic pension benefit cost
|
$ | 11 | $ | 10 | $ | 21 | $ | 20 |
Three months ended June 30,
|
Six months ended June 30,
|
|||||||||||||||
In millions
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
Service cost
|
$ | - | $ | 1 | $ | 1 | $ | 2 | ||||||||
Interest cost
|
4 | 4 | 7 | 8 | ||||||||||||
Expected return on plan assets
|
(2 | ) | (2 | ) | (3 | ) | (3 | ) | ||||||||
Net amortization of prior service cost
|
(1 | ) | - | (2 | ) | (1 | ) | |||||||||
Recognized actuarial loss
|
2 | 2 | 4 | 5 | ||||||||||||
Net periodic welfare benefit cost
|
$ | 3 | $ | 5 | $ | 7 | $ | 11 |
June 30, 2013
|
June 30, 2012
|
|||||||||||||||||||||||
Dollars in millions
|
Year(s) due
|
Weighted average interest rate (1)
|
Outstanding
|
Outstanding at December 31, 2012
|
Weighted average interest rate (1)
|
Outstanding
|
||||||||||||||||||
Short-term debt
|
||||||||||||||||||||||||
Commercial paper - AGL Capital (2)
|
2013
|
0.5 | % | $ | 521 | $ | 1,063 | 0.5 | % | $ | 731 | |||||||||||||
Commercial paper - Nicor Gas
|
2013
|
0.4 | - | 314 | 0.5 | - | ||||||||||||||||||
Total short-term debt
|
0.5 | 521 | 1,377 | 0.5 | 731 | |||||||||||||||||||
Current portion of long-term debt and capital leases
|
||||||||||||||||||||||||
Current portion of long-term debt
|
2013
|
4.5 | - | 225 | 4.7 | 230 | ||||||||||||||||||
Current portion of capital leases
|
2013
|
5.0 | - | 1 | 4.9 | 1 | ||||||||||||||||||
Total current portion of long-term debt and capital leases
|
4.5 | % | $ | - | $ | 226 | 4.7 | % | $ | 231 | ||||||||||||||
Long-term debt - excluding current portion
|
||||||||||||||||||||||||
Senior notes
|
2015-2043 | 5.1 | % | $ | 2,825 | $ | 2,325 | 5.1 | % | $ | 2,325 | |||||||||||||
First mortgage bonds
|
2016-2038 | 5.6 | 500 | 500 | 5.6 | 500 | ||||||||||||||||||
Gas facility revenue bonds
|
2022-2033 | 0.5 | 200 | 200 | 1.2 | 200 | ||||||||||||||||||
Medium-term notes
|
2017-2027 | 7.8 | 181 | 181 | 7.8 | 181 | ||||||||||||||||||
Total principal long-term debt
|
4.9 | 3,706 | 3,206 | 5.0 | 3,206 | |||||||||||||||||||
Fair value adjustment of long-term debt (3)
|
2016-2038 | n/a | 97 | 103 | n/a | 110 | ||||||||||||||||||
Unamortized debt premium, net
|
n/a | n/a | 16 | 18 | n/a | 18 | ||||||||||||||||||
Total non-principal long-term debt
|
n/a | 113 | 121 | n/a | 128 | |||||||||||||||||||
Total long-term debt
|
$ | 3,819 | $ | 3,327 | $ | 3,334 | ||||||||||||||||||
Total debt
|
$ | 4,340 | $ | 4,930 | $ | 4,296 |
(1)
|
Interest rates are calculated based on the daily weighted average balance outstanding for the six months ended June 30.
|
(2)
|
As of June 30, 2013, the weighted average interest rate on AGL Capital’s commercial paper borrowings was 0.4%.
|
(3)
|
See Note 3 for additional information on our fair value measurements.
|
June 30, 2013
|
December 31, 2012
|
June 30, 2012
|
||||||||||
AGL Credit Facility
|
54 | % | 58 | % | 54 | % | ||||||
Nicor Gas Credit Facility
|
43 | 55 | 43 |
·
|
a maximum leverage ratio
|
·
|
insolvency events and nonpayment of scheduled principal or interest payments
|
·
|
acceleration of other financial obligations
|
·
|
change of control provisions
|
2013
|
2012
|
|||||||||||||||||||||||
In millions (1)
|
Cash flow hedges
|
Retirement benefit plans
|
Total
|
Cash flow hedges
|
Retirement benefit plans
|
Total
|
||||||||||||||||||
For the three months ending June 30
|
||||||||||||||||||||||||
Balance as of March 31
|
$ | (2 | ) | $ | (209 | ) | $ | (211 | ) | $ | (12 | ) | $ | (206 | ) | $ | (218 | ) | ||||||
Other comprehensive income, before reclassifications
|
(1 | ) | - | (1 | ) | 4 | - | 4 | ||||||||||||||||
Amounts reclassified from accumulated other comprehensive income
|
(1 | ) | 4 | 3 | - | 7 | 7 | |||||||||||||||||
Net current-period other comprehensive (loss) income
|
(2 | ) | 4 | 2 | 4 | 7 | 11 | |||||||||||||||||
Balance as of June 30
|
$ | (4 | ) | $ | (205 | ) | $ | (209 | ) | $ | (8 | ) | $ | (199 | ) | $ | (207 | ) | ||||||
For the six months ending June 30
|
||||||||||||||||||||||||
Balance as of December 31, prior year
|
$ | (6 | ) | $ | (212 | ) | $ | (218 | ) | $ | (10 | ) | $ | (207 | ) | $ | (217 | ) | ||||||
Other comprehensive income, before reclassifications
|
1 | - | 1 | 2 | - | 2 | ||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income
|
1 | 7 | 8 | - | 8 | 8 | ||||||||||||||||||
Net current-period other comprehensive income
|
2 | 7 | 9 | 2 | 8 | 10 | ||||||||||||||||||
Balance as of June 30
|
$ | (4 | ) | $ | (205 | ) | $ | (209 | ) | $ | (8 | ) | $ | (199 | ) | $ | (207 | ) |
(1)
|
All amounts are net of income taxes. Amounts in parentheses indicate debits to accumulated other comprehensive loss.
|
Amount reclassified from accumulated other comprehensive loss (1)
|
Affected line item in the income statement
|
||||||||||||||||
Three months ending June 30,
|
Six months ending June 30,
|
||||||||||||||||
In millions |
2013
|
2012
|
2013
|
2012
|
|||||||||||||
Cash flow hedges
|
|||||||||||||||||
Interest rate contracts
|
$ | 1 | $ | - | $ | (2 | ) | $ | - |
Interest expense, net
|
|||||||
Income tax benefit
|
- | - | 1 | - | |||||||||||||
Total cash flow hedges
|
1 | - | (1 | ) | - | ||||||||||||
Retirement benefit plan amortization of
|
|||||||||||||||||
Actuarial losses
|
(7 | ) | (10 | ) | (13 | ) | (12 | ) |
See (2), below
|
||||||||
Prior service credits
|
- | - | 2 | - |
See (2), below
|
||||||||||||
Total before income tax
|
(7 | ) | (10 | ) | (11 | ) | (12 | ) | |||||||||
Income tax benefit
|
3 | 3 | 4 | 4 | |||||||||||||
Total retirement benefit plans
|
(4 | ) | (7 | ) | (7 | ) | (8 | ) | |||||||||
Total reclassification for the period
|
$ | (3 | ) | $ | (7 | ) | $ | (8 | ) | $ | (8 | ) |
(1)
|
Amounts in parentheses indicate debits, or reductions, to profit/loss and credits to accumulated other comprehensive loss. Except for retirement benefit plan amounts, the profit/loss impacts are immediate.
|
(2)
|
Amortization of these accumulated other comprehensive loss components is included in the computation of net periodic benefit cost. See Note 5 for additional details about net periodic benefit cost.
|
June 30, 2013
|
December 31, 2012
|
June 30, 2012
|
||||||||||||||||||||||||||||||||||
In millions
|
Consolidated
|
SouthStar
|
Consolidated
|
SouthStar
|
Consolidated
|
SouthStar
|
||||||||||||||||||||||||||||||
Current assets
|
$ | 2,063 | $ | 135 | 7 | % | $ | 2,668 | $ | 201 | 8 | % | $ | 1,880 | $ | 145 | 8 | % | ||||||||||||||||||
Long-term assets and other deferred debits
|
11,732 | 10 | - | 11,473 | 10 | - | 11,349 | 9 | - | |||||||||||||||||||||||||||
Total assets
|
$ | 13,795 | $ | 145 | 1 | % | $ | 14,141 | $ | 211 | 1 | % | $ | 13,229 | $ | 154 | 1 | % | ||||||||||||||||||
Current liabilities
|
$ | 2,349 | $ | 40 | 2 | % | $ | 3,338 | $ | 62 | 2 | % | $ | 2,460 | $ | 37 | 2 | % | ||||||||||||||||||
Long-term liabilities and other deferred credits
|
7,891 | - | - | 7,368 | - | - | 7,340 | - | - | |||||||||||||||||||||||||||
Total Liabilities
|
10,240 | 40 | - | 10,706 | 62 | 1 | 9,800 | 37 | - | |||||||||||||||||||||||||||
Equity
|
3,555 | 105 | 3 | 3,435 | 149 | 4 | 3,429 | 117 | 3 | |||||||||||||||||||||||||||
Total liabilities and equity
|
$ | 13,795 | $ | 145 | 1 | % | $ | 14,141 | $ | 211 | 1 | % | $ | 13,229 | $ | 154 | 1 | % |
Three months ended June 30,
|
Six months ended June 30,
|
|||||||||||||||
In millions
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
Operating revenues
|
$ | 116 | $ | 99 | $ | 366 | $ | 314 | ||||||||
Operating expenses
|
||||||||||||||||
Cost of goods sold
|
95 | 80 | 259 | 213 | ||||||||||||
Operation and maintenance
|
15 | 12 | 33 | 31 | ||||||||||||
Depreciation and amortization
|
- | 1 | 1 | 1 | ||||||||||||
Taxes other than income taxes
|
1 | 1 | 1 | 2 | ||||||||||||
Total operating expenses
|
111 | 94 | 294 | 247 | ||||||||||||
Operating income
|
$ | 5 | $ | 5 | $ | 72 | $ | 67 |
Three months ended June 30,
|
Six months ended June 30,
|
|||||||||||||||
In millions
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
Triton
|
$ | 2 | $ | 3 | $ | 4 | $ | 6 | ||||||||
Other
|
- | 2 | 1 | 2 |
In millions
|
Probabilistic model cost estimates
|
Engineering estimates
|
Amount recorded
|
Expected costs over next twelve months
|
||||||||||||
Illinois
|
$ | 208 - $458 | $ | 42 | $ | 250 | $ | 34 | ||||||||
New Jersey
|
146 - 240 | 5 | 151 | 15 | ||||||||||||
Georgia and Florida
|
42 - 100 | 11 | 56 | 8 | ||||||||||||
North Carolina
|
n/a | 11 | 11 | 5 | ||||||||||||
Total
|
$ | 396 - $798 | $ | 69 | $ | 468 | $ | 62 |
Three months ended June 30,
|
Six months ended June 30,
|
|||||||||||||||
In millions
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
Operating income
|
$ | 122 | $ | 91 | $ | 421 | $ | 353 | ||||||||
Other income
|
7 | 9 | 12 | 13 | ||||||||||||
EBIT
|
129 | 100 | 433 | 366 | ||||||||||||
Interest expense
|
46 | 45 | 92 | 92 | ||||||||||||
Earnings before income taxes
|
83 | 55 | 341 | 274 | ||||||||||||
Income taxes
|
33 | 20 | 127 | 100 | ||||||||||||
Net income
|
$ | 50 | $ | 35 | $ | 214 | $ | 174 |
In millions
|
Identifiable and total assets (1)
|
Goodwill
|
||||||
Distribution operations
|
$ | 11,320 | $ | 1,640 | ||||
Retail operations
|
511 | 122 | ||||||
Wholesale services
|
1,218 | - | ||||||
Midstream operations
|
720 | 14 | ||||||
Cargo shipping
|
464 | 61 | ||||||
Other (2)
|
(92 | ) | - | |||||
Consolidated
|
$ | 14,141 | $ | 1,837 |
(1)
|
Identifiable assets are those assets used in each segment’s operations.
|
(2)
|
The assets of our other segment consist primarily of cash and cash equivalents and PP&E, and reflect the effect of intercompany eliminations.
|
In millions
|
Distribution operations
|
Retail operations
|
Wholesale services
|
Midstream operations
|
Cargo shipping
|
Other and intercompany eliminations (4)
|
Consolidated
|
|||||||||||||||||||||
Operating revenues from external parties
|
$ | 615 | $ | 165 | $ | 21 | $ | 15 | $ | 88 | $ | - | $ | 904 | ||||||||||||||
Intercompany revenues (1)
|
43 | - | - | - | - | (43 | ) | - | ||||||||||||||||||||
Total operating revenues
|
658 | 165 | 21 | 15 | 88 | (43 | ) | 904 | ||||||||||||||||||||
Operating expenses
|
||||||||||||||||||||||||||||
Cost of goods sold
|
266 | 115 | 10 | 4 | 54 | (42 | ) | 407 | ||||||||||||||||||||
Operation and maintenance
|
159 | 32 | 10 | 6 | 30 | (4 | ) | 233 | ||||||||||||||||||||
Depreciation and amortization
|
90 | 5 | 1 | 4 | 5 | 4 | 109 | |||||||||||||||||||||
Taxes other than income taxes
|
38 | 1 | - | 2 | 2 | 1 | 44 | |||||||||||||||||||||
Total operating expenses
|
553 | 153 | 21 | 16 | 91 | (41 | ) | 793 | ||||||||||||||||||||
Gain on sale of Compass Energy
|
- | - | 11 | - | - | - | 11 | |||||||||||||||||||||
Operating income (loss)
|
105 | 12 | 11 | (1 | ) | (3 | ) | (2 | ) | 122 | ||||||||||||||||||
Other income
|
4 | - | - | 1 | 2 | - | 7 | |||||||||||||||||||||
EBIT
|
$ | 109 | $ | 12 | $ | 11 | $ | - | $ | (1 | ) | $ | (2 | ) | $ | 129 | ||||||||||||
Capital expenditures
|
$ | 158 | $ | 3 | $ | - | $ | 4 | $ | 2 | $ | 3 | $ | 170 |
In millions
|
Distribution operations
|
Retail operations
|
Wholesale services
|
Midstream operations
|
Cargo shipping
|
Other and intercompany eliminations (4)
|
Consolidated
|
|||||||||||||||||||||
Operating revenues from external parties
|
$ | 449 | $ | 136 | $ | 7 | $ | 18 | $ | 80 | $ | (4 | ) | $ | 686 | |||||||||||||
Intercompany revenues (1)
|
41 | - | - | - | - | (41 | ) | - | ||||||||||||||||||||
Total operating revenues
|
490 | 136 | 7 | 18 | 80 | (45 | ) | 686 | ||||||||||||||||||||
Operating expenses
|
||||||||||||||||||||||||||||
Cost of goods sold
|
131 | 93 | 4 | 7 | 51 | (46 | ) | 240 | ||||||||||||||||||||
Operation and maintenance
|
152 | 25 | 11 | 4 | 26 | - | 218 | |||||||||||||||||||||
Depreciation and amortization
|
86 | 3 | - | 4 | 6 | 3 | 102 | |||||||||||||||||||||
Taxes other than income taxes
|
25 | 1 | 1 | 2 | 1 | 2 | 32 | |||||||||||||||||||||
Nicor merger expenses (2)
|
- | - | - | - | - | 3 | 3 | |||||||||||||||||||||
Total operating expenses
|
394 | 122 | 16 | 17 | 84 | (38 | ) | 595 | ||||||||||||||||||||
Operating income (loss)
|
96 | 14 | (9 | ) | 1 | (4 | ) | (7 | ) | 91 | ||||||||||||||||||
Other income
|
4 | - | - | 1 | 3 | 1 | 9 | |||||||||||||||||||||
EBIT
|
$ | 100 | $ | 14 | $ | (9 | ) | $ | 2 | $ | (1 | ) | $ | (6 | ) | $ | 100 | |||||||||||
Capital expenditures
|
$ | 146 | $ | 2 | $ | - | $ | 17 | $ | 1 | $ | 13 | $ | 179 |
In millions
|
Distribution operations
|
Retail operations
|
Wholesale services
|
Midstream operations
|
Cargo shipping
|
Other and intercompany eliminations (4)
|
Consolidated
|
|||||||||||||||||||||
Operating revenues from external parties
|
$ | 1,879 | $ | 467 | $ | 60 | $ | 39 | $ | 175 | $ | (7 | ) | $ | 2,613 | |||||||||||||
Intercompany revenues (1)
|
98 | - | - | - | - | (98 | ) | - | ||||||||||||||||||||
Total operating revenues
|
1,977 | 467 | 60 | 39 | 175 | (105 | ) | 2,613 | ||||||||||||||||||||
Operating expenses
|
||||||||||||||||||||||||||||
Cost of goods sold
|
1,031 | 310 | 20 | 16 | 107 | (104 | ) | 1,380 | ||||||||||||||||||||
Operation and maintenance
|
344 | 63 | 23 | 12 | 58 | (8 | ) | 492 | ||||||||||||||||||||
Depreciation and amortization
|
180 | 10 | 1 | 8 | 10 | 7 | 216 | |||||||||||||||||||||
Taxes other than income taxes
|
102 | 2 | 1 | 3 | 3 | 4 | 115 | |||||||||||||||||||||
Total operating expenses
|
1,657 | 385 | 45 | 39 | 178 | (101 | ) | 2,203 | ||||||||||||||||||||
Gain on sale of Compass Energy
|
- | - | 11 | - | - | - | 11 | |||||||||||||||||||||
Operating income (loss)
|
320 | 82 | 26 | - | (3 | ) | (4 | ) | 421 | |||||||||||||||||||
Other income
|
7 | - | - | 2 | 4 | (1 | ) | 12 | ||||||||||||||||||||
EBIT
|
$ | 327 | $ | 82 | $ | 26 | $ | 2 | $ | 1 | $ | (5 | ) | $ | 433 | |||||||||||||
Identifiable and total assets (3)
|
$ | 11,166 | $ | 641 | $ | 1,008 | $ | 715 | $ | 462 | $ | (197 | ) | $ | 13,795 | |||||||||||||
Goodwill
|
$ | 1,640 | $ | 168 | $ | - | $ | 14 | $ | 61 | $ | - | $ | 1,883 | ||||||||||||||
Capital expenditures
|
$ | 295 | $ | 4 | $ | - | $ | 8 | $ | 3 | $ | 8 | $ | 318 |
In millions
|
Distribution operations
|
Retail operations
|
Wholesale services
|
Midstream operations
|
Cargo shipping
|
Other and intercompany eliminations (4)
|
Consolidated
|
|||||||||||||||||||||
Operating revenues from external parties
|
$ | 1,443 | $ | 399 | $ | 71 | $ | 34 | $ | 164 | $ | (21 | ) | $ | 2,090 | |||||||||||||
Intercompany revenues (1)
|
87 | - | - | - | - | (87 | ) | - | ||||||||||||||||||||
Total operating revenues
|
1,530 | 399 | 71 | 34 | 164 | (108 | ) | 2,090 | ||||||||||||||||||||
Operating expenses
|
||||||||||||||||||||||||||||
Cost of goods sold
|
660 | 259 | 34 | 12 | 101 | (107 | ) | 959 | ||||||||||||||||||||
Operation and maintenance
|
325 | 57 | 24 | 9 | 54 | (6 | ) | 463 | ||||||||||||||||||||
Depreciation and amortization
|
174 | 7 | 1 | 6 | 12 | 6 | 206 | |||||||||||||||||||||
Taxes other than income taxes
|
82 | 2 | 2 | 3 | 3 | 4 | 96 | |||||||||||||||||||||
Nicor merger expenses (2)
|
- | - | - | - | - | 13 | 13 | |||||||||||||||||||||
Total operating expenses
|
1,241 | 325 | 61 | 30 | 170 | (90 | ) | 1,737 | ||||||||||||||||||||
Operating income (loss)
|
289 | 74 | 10 | 4 | (6 | ) | (18 | ) | 353 | |||||||||||||||||||
Other income
|
5 | - | - | 1 | 6 | 1 | 13 | |||||||||||||||||||||
EBIT
|
$ | 294 | $ | 74 | $ | 10 | $ | 5 | $ | - | $ | (17 | ) | $ | 366 | |||||||||||||
Identifiable and total assets (3)
|
$ | 10,784 | $ | 452 | $ | 895 | $ | 685 | $ | 471 | $ | (58 | ) | $ | 13,229 | |||||||||||||
Goodwill
|
$ | 1,586 | $ | 124 | $ | 2 | $ | 16 | $ | 77 | $ | 8 | $ | 1,813 | ||||||||||||||
Capital expenditures
|
$ | 268 | $ | 4 | $ | - | $ | 59 | $ | 1 | $ | 18 | $ | 350 |
(1)
|
Intercompany revenues - wholesale services records its energy marketing and risk management revenues on a net basis and its total operating revenues include intercompany revenues of $103 million and $243 million for the three and six months ended June 30, 2013 and $49 million and $137 million for the three and six months ended June 30, 2012.
|
(2)
|
Transaction expenses associated with the Nicor merger are shown separately to better compare year-over-year results.
|
(3)
|
Identifiable assets are those used in each segment’s operations.
|
(4)
|
The assets of our other segment consist primarily of cash and cash equivalents and PP&E, and reflect the effect of intercompany eliminations.
|
Average Monthly Rate per Dekatherm
|
||||
Jefferson Island (1)
|
$ | 0.111 | ||
Golden Triangle (1)
|
0.182 | |||
Central Valley
|
0.130 |
(1)
|
Includes firm capacity contracted by Sequent at April 1, 2013 of 1.5 Bcf at an average monthly rate of $0.07 per dekatherm at Jefferson Island and 2 Bcf at an average monthly rate of $0.125 per dekatherm at Golden Triangle.
|
Three months ended June 30,
|
Six months ended June 30,
|
|||||||||||||||||||||||
In millions, except per share amounts
|
2013
|
2012
|
Change
|
2013
|
2012
|
Change
|
||||||||||||||||||
Operating revenues
|
$ | 904 | $ | 686 | $ | 218 | $ | 2,613 | $ | 2,090 | $ | 523 | ||||||||||||
Cost of goods sold
|
(407 | ) | (240 | ) | (167 | ) | (1,380 | ) | (959 | ) | (421 | ) | ||||||||||||
Revenue tax expense (1)
|
(24 | ) | (13 | ) | (11 | ) | (73 | ) | (54 | ) | (19 | ) | ||||||||||||
Operating margin
|
473 | 433 | 40 | 1,160 | 1,077 | 83 | ||||||||||||||||||
Operating expenses (2)
|
(386 | ) | (352 | ) | (34 | ) | (823 | ) | (765 | ) | (58 | ) | ||||||||||||
Revenue tax expense (1)
|
24 | 13 | 11 | 73 | 54 | 19 | ||||||||||||||||||
Sale of Compass Energy
|
11 | - | 11 | 11 | - | 11 | ||||||||||||||||||
Nicor merger expenses (2)
|
- | (3 | ) | 3 | - | (13 | ) | 13 | ||||||||||||||||
Operating income
|
122 | 91 | 31 | 421 | 353 | 68 | ||||||||||||||||||
Other income
|
7 | 9 | (2 | ) | 12 | 13 | (1 | ) | ||||||||||||||||
EBIT
|
129 | 100 | 29 | 433 | 366 | 67 | ||||||||||||||||||
Interest expenses
|
(46 | ) | (45 | ) | (1 | ) | (92 | ) | (92 | ) | - | |||||||||||||
Earnings before income taxes
|
83 | 55 | 28 | 341 | 274 | 67 | ||||||||||||||||||
Income tax expenses
|
(33 | ) | (20 | ) | (13 | ) | (127 | ) | (100 | ) | (27 | ) | ||||||||||||
Net income
|
50 | 35 | 15 | 214 | 174 | 40 | ||||||||||||||||||
Less net income attributable to the noncontrolling interest
|
1 | 1 | - | 11 | 10 | 1 | ||||||||||||||||||
Net income attributable to AGL Resources Inc.
|
$ | 49 | $ | 34 | $ | 15 | $ | 203 | $ | 164 | $ | 39 | ||||||||||||
Per common share data
|
||||||||||||||||||||||||
Basic earnings per common share attributable to AGL Resources Inc. common shareholders (3)
|
$ | 0.41 | $ | 0.28 | $ | 0.13 | $ | 1.72 | $ | 1.40 | $ | 0.32 | ||||||||||||
Transaction costs of Nicor merger
|
- | 0.02 | (0.02 | ) | - | 0.07 | (0.07 | ) | ||||||||||||||||
Basic earnings per share - as adjusted
|
$ | 0.41 | $ | 0.30 | $ | 0.11 | $ | 1.72 | $ | 1.47 | $ | 0.25 | ||||||||||||
Diluted earnings per common share attributable to AGL Resources Inc. common shareholders (3)
|
$ | 0.41 | $ | 0.28 | $ | 0.13 | $ | 1.72 | $ | 1.40 | $ | 0.32 | ||||||||||||
Transaction costs of Nicor merger
|
- | 0.02 | (0.02 | ) | - | 0.07 | (0.07 | ) | ||||||||||||||||
Diluted earnings per share - as adjusted
|
$ | 0.41 | $ | 0.30 | $ | 0.11 | $ | 1.72 | $ | 1.47 | $ | 0.25 |
(1)
|
Adjusted for Nicor Gas’ revenue tax expenses, which are passed directly through to customers.
|
(2)
|
Expenses associated with the Nicor merger are part of operating expenses, but are shown separately to better compare year-over-year results.
|
(3)
|
Sale of Compass Energy generated basic and diluted EPS of $0.04 for the three and six months ending June 30, 2013.
|
·
|
The increase was primarily the result of increased operating margin at distribution operations and retail operations due to colder weather and increased average customer usage compared to the same period in the prior year, and increased regulatory infrastructure program revenues at Atlanta Gas Light. The operating margin of our wholesale services segment for the quarter increased by $8 million as a result of higher commercial activity. The increase in our net income attributable to AGL Resources Inc. was also favorably impacted by the $11 million pre-tax gain on the sale of Compass Energy in our wholesale services segment.
|
·
|
The increases were partially offset by increased operating expenses at distribution operations as our incentive compensation expense increased to targeted levels. In addition, our bad debt expense increased at retail operations as a result of colder weather combined with natural gas prices that were higher than in the same period of the prior year.
|
·
|
During the three months ended June 30, 2012, we recorded $3 million ($2 million net of tax) of Nicor merger related expenses.
|
·
|
The primary drivers of this increase are consistent with those described above for the second quarter of 2013 compared to 2012.
|
·
|
During the six months ended June 30, 2012, we recorded $13 million ($8 million net of tax) of Nicor merger related expenses.
|
Three months ended June 30,
|
2013
vs. 2012 |
2013
vs. normal |
Six months ended June 30,
|
2013
vs. 2012 |
2013
vs. normal |
|||||||||||||||||||||||||||||||||||
Weather (Heating Degree Days) |
Normal
|
2013
|
2012
|
colder
|
colder
|
Normal
|
2013
|
2012
|
colder
|
colder
|
||||||||||||||||||||||||||||||
Illinois (1) (2)
|
623 | 715 | 542 | 32 | % | 15 | % | 3,614 | 3,868 | 2,900 | 33 | % | 7 | % | ||||||||||||||||||||||||||
Georgia (1)
|
136 | 178 | 72 | 147 | % | 31 | % | 1,588 | 1,639 | 1,055 | 55 | % | 3 | % |
(1)
|
Normal represents the ten-year average from January 1, 2003 through June 30, 2012, for Illinois at Chicago Midway International Airport, and for Georgia at Atlanta Hartsfield-Jackson International Airport as obtained from the National Oceanic and Atmospheric Administration, National Climatic Data Center.
|
(2)
|
The 10-year average Heating Degree Days for the period, as established by the Illinois Commission in our last rate case, is 617 for the second quarter and 3,519 for the first six months from 1998 through 2007.
|
Three months ended June 30,
|
2013 vs. 2012
|
Six months ended June 30,
|
2013 vs. 2012
|
|||||||||||||||||||||
Customers and service contracts (average end-use, in thousands)
|
2013
|
2012
|
% change
|
2013
|
2012
|
% change
|
||||||||||||||||||
Distribution operations customers
|
4,492 | 4,468 | 1 | % | 4,496 | 4,478 | - | % | ||||||||||||||||
Retail operations
|
||||||||||||||||||||||||
Energy customers (1)
|
618 | 615 | - | % | 616 | 645 | (4 | )% | ||||||||||||||||
Service contracts (2)
|
1,176 | 689 | 71 | % | 1,095 | 701 | 56 | % | ||||||||||||||||
Market share in Georgia
|
32 | % | 32 | % | - | % | 32 | % | 32 | % | - | % |
(1)
|
A portion of the customers represents customer equivalents in Ohio, which are computed by the actual delivered volumes divided by the expected average customer usage. Decrease primarily due to our contract to serve approximately 50,000 customer equivalents that ended on April 1, 2012.
|
(2)
|
Increase primarily due to acquisition of approximately 500,000 service contracts on January 31, 2013.
|
Three months ended June 30, | 2013 vs. 2012 | Six months ended June 30, | 2013 vs. 2012 | |||||||||||||||||||||
Volumes | 2013 | 2012 | % change | 2013 | 2012 | % change | ||||||||||||||||||
Distribution operations (In Bcf)
|
||||||||||||||||||||||||
Firm
|
107 | 93 | 15 | % | 416 | 333 | 25 | % | ||||||||||||||||
Interruptible
|
26 | 26 | - | % | 56 | 53 | 6 | % | ||||||||||||||||
Total
|
133 | 119 | 12 | % | 472 | 386 | 22 | % | ||||||||||||||||
Retail operations (In Bcf)
|
||||||||||||||||||||||||
Georgia firm
|
5 | 3 | 67 | % | 23 | 17 | 35 | % | ||||||||||||||||
Illinois
|
1 | 1 | - | % | 5 | 5 | - | % | ||||||||||||||||
Other (1)
|
1 | 1 | - | % | 4 | 5 | (20 | )% | ||||||||||||||||
Wholesale services
|
||||||||||||||||||||||||
Daily physical sales (Bcf / day)
|
5.3 | 4.9 | 8 | % | 5.8 | 5.4 | 7 | % | ||||||||||||||||
Cargo shipping (TEU’s - in thousands)
|
||||||||||||||||||||||||
Shipments
|
45 | 40 | 13 | % | 90 | 81 | 11 | % | ||||||||||||||||
As of June 30,
|
||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Midstream operations
|
||||||||||||||||||||||||
Working natural gas capacity (in Bcf) (2)
|
31.8 | 24.3 | ||||||||||||||||||||||
% of firm capacity under subscription by third parties (3)
|
33 | % | 58 | % |
(1)
|
Includes Florida, Maryland, New York and Ohio.
|
(2)
|
Includes Central Valley Storage that was acquired in connection with the Nicor merger, and began commercial operations in the second quarter of 2012. Additionally, Golden Triangle Storage’s Cavern 1 is currently going through a process to monitor its working gas capacity and slightly increase the size of the facility. The process began in early 2013 and is expected to continue with limited commercial operations resuming in the third quarter of 2013. We expect Cavern 1 to return to full commercial service in the first quarter of 2014. Cavern 2 will cover the obligations of Cavern 1 during this process.
|
(3)
|
The percentage of capacity under subscription does not include 3.5 Bcf of capacity under contract with Sequent at June 30, 2013, and 3 Bcf of capacity under contract with Sequent at June 30, 2012.
|
Three months ended June 30, 2013
|
Three months ended June 30, 2012
|
|||||||||||||||||||||||
In millions
|
Operating margin
(1) (2)
|
Operating expenses (2)
|
EBIT (1) (4)
|
Operating margin
(1) (2)
|
Operating expenses (2) (3)
|
EBIT (1)
|
||||||||||||||||||
Distribution operations
|
$ | 368 | $ | 263 | $ | 109 | $ | 346 | $ | 250 | $ | 100 | ||||||||||||
Retail operations
|
50 | 38 | 12 | 43 | 29 | 14 | ||||||||||||||||||
Wholesale services (4)
|
11 | 11 | 11 | 3 | 12 | (9 | ) | |||||||||||||||||
Midstream operations
|
11 | 12 | - | 11 | 10 | 2 | ||||||||||||||||||
Cargo shipping
|
34 | 37 | (1 | ) | 29 | 33 | (1 | ) | ||||||||||||||||
Other
|
(1 | ) | 1 | (2 | ) | 1 | 8 | (6 | ) | |||||||||||||||
Consolidated
|
$ | 473 | $ | 362 | $ | 129 | $ | 433 | $ | 342 | $ | 100 | ||||||||||||
Six months ended June 30, 2013
|
Six months ended June 30, 2012
|
|||||||||||||||||||||||
In millions
|
Operating margin
(1) (2)
|
Operating expenses (2)
|
EBIT (1) (4)
|
Operating margin
(1) (2)
|
Operating expenses (2) (3)
|
EBIT (1)
|
||||||||||||||||||
Distribution operations
|
$ | 873 | $ | 553 | $ | 327 | $ | 816 | $ | 527 | $ | 294 | ||||||||||||
Retail operations
|
157 | 75 | 82 | 140 | 66 | 74 | ||||||||||||||||||
Wholesale services (4)
|
40 | 25 | 26 | 37 | 27 | 10 | ||||||||||||||||||
Midstream operations
|
23 | 23 | 2 | 22 | 18 | 5 | ||||||||||||||||||
Cargo shipping
|
68 | 71 | 1 | 63 | 69 | - | ||||||||||||||||||
Other
|
(1 | ) | 3 | (5 | ) | (1 | ) | 17 | (17 | ) | ||||||||||||||
Consolidated
|
$ | 1,160 | $ | 750 | $ | 433 | $ | 1,077 | $ | 724 | $ | 366 |
(1)
|
These are non-GAAP measures. A reconciliation of operating margin to operating income and EBIT to earnings before income taxes and net income is contained in “Results of Operations” herein. See Note 10 to our unaudited Condensed Consolidated Financial Statements under Item 1 herein for additional segment information.
|
(2)
|
Operating margin and expense are adjusted for revenue tax expense for Nicor Gas, which is passed directly through to customers.
|
(3)
|
Includes $3 million and $13 million in Nicor merger transaction expenses for the three and six months ended June 30, 2012.
|
(4)
|
EBIT includes $11 million gain on sale of Compass Energy.
|
In millions
|
Three months ended
|
Six months ended
|
||||||
EBIT - for June 30, 2012
|
$ | 100 | $ | 294 | ||||
` | ||||||||
Operating margin
|
||||||||
Increased operating margin mainly driven by colder weather and higher customer usage at Nicor Gas, Florida City Gas, Elizabethtown Gas and Virginia Natural Gas compared to prior year
|
10 | 27 | ||||||
Increased rider revenues primarily as a result of energy efficiency program recoveries at Nicor Gas
|
2 | 12 | ||||||
Increased revenues from regulatory infrastructure programs, primarily at Atlanta Gas Light
|
10 | 18 | ||||||
Increase in operating margin
|
22 | 57 | ||||||
Operating expenses
|
||||||||
Increased rider expenses primarily as a result of energy efficiency program expenses at Nicor Gas
|
2 | 12 | ||||||
Increased incentive compensation costs due to amounts returning to targeted levels
|
4 | 9 | ||||||
Increased depreciation expense as a result of increased PP&E from infrastructure additions and improvements
|
4 | 6 | ||||||
Decreased benefits expenses primarily related to medical claims and retiree healthcare costs
|
(3 | ) | (6 | ) | ||||
Increased outside service costs and other
|
6 | 5 | ||||||
Increase in operating expenses
|
13 | 26 | ||||||
Increased AFUDC equity primarily from STRIDE projects at Atlanta Gas Light
|
- | 2 | ||||||
EBIT - for June 30, 2013
|
$ | 109 | $ | 327 |
In millions
|
Three months ended
|
Six months ended
|
||||||
EBIT - for June 30, 2012
|
$ | 14 | $ | 74 | ||||
Operating margin
|
||||||||
Increased average customer usage in Georgia due to colder weather relative to prior year, net of weather derivatives
|
4 | 14 | ||||||
Increased margin primarily due to January 2013 acquisition of retail service contracts
|
8 | 12 | ||||||
Inventory write-down (LOCOM) in 2012
|
- | 3 | ||||||
Decreased margin in Illinois mainly due to timing of revenue recognition associated with fixed bill products
|
(4 | ) | (2 | ) | ||||
Decrease related to increase in transportation and gas costs and lower retail price spreads, partially offset by favorable customer portfolio
|
- | (10 | ) | |||||
Other
|
(1 | ) | - | |||||
Increase in operating margin
|
7 | 17 | ||||||
Operating expenses
|
||||||||
Increased expenses primarily due to January 2013 acquisition of retail service contracts
|
6 | 9 | ||||||
Increased bad debt expense primarily related to colder weather and higher natural gas prices
|
2 | 2 | ||||||
Increased (decreased) payroll, benefits, marketing and other expenses
|
1 | (2 | ) | |||||
Increase in operating expenses
|
9 | 9 | ||||||
EBIT - for June 30,2013
|
$ | 12 | $ | 82 |
In millions
|
Three months ended
|
Six months ended
|
||||||
EBIT - for June 30, 2012
|
$ | (9 | ) | $ | 10 | |||
Operating margin
|
||||||||
Change in commercial activity largely driven by colder weather, increased cash optimization opportunities in the supply constrained northeast corridor and the withdrawal of a portion of the storage inventory economically hedged at the end of 2012
|
13 | 32 | ||||||
Storage inventory write-down (LOCOM)
|
(8 | ) | 4 | |||||
Change in value on storage hedges as a result of decrease in NYMEX natural gas prices
|
38 | 12 | ||||||
Change in value on transportation and forward commodity hedges from price movements related to natural gas transportation positions
|
(35 | ) | (45 | ) | ||||
Increase in operating margin
|
8 | 3 | ||||||
Operating expenses
|
||||||||
Decreased compensation expense, outside services and other costs
|
(1 | ) | (2 | ) | ||||
Decrease in operating expenses
|
(1 | ) | (2 | ) | ||||
Gain on sale of Compass Energy
|
11 | 11 | ||||||
EBIT - for June 30, 2013
|
$ | 11 | $ | 26 |
Three months ended June 30,
|
Six months ended June 30,
|
|||||||||||||||
In millions
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
Commercial activity recognized
|
$ | 6 | $ | (7 | ) | $ | 48 | $ | 16 | |||||||
Gain (loss) on storage hedges
|
29 | (9 | ) | 18 | 6 | |||||||||||
(Loss) gain on transportation and forward commodity hedges
|
(16 | ) | 19 | (18 | ) | 27 | ||||||||||
Inventory LOCOM adjustment, net of estimated recoveries
|
(8 | ) | - | (8 | ) | (12 | ) | |||||||||
Operating margin
|
$ | 11 | $ | 3 | $ | 40 | $ | 37 |
Withdrawal schedule
|
Total storage (in Bcf) (WACOG $3.26)
|
Expected operating
revenues (1) (in millions)
|
||||||
2013
|
||||||||
Third quarter
|
28 | $ | 5 | |||||
Fourth quarter
|
20 | 8 | ||||||
2014
|
||||||||
First quarter
|
2 | 1 | ||||||
Total at June 30, 2013
|
50 | $ | 14 | |||||
Total at December 31, 2012
|
51 | $ | 27 | |||||
Total at June 30, 2012
|
55 | $ | 47 |
(1)
|
Represents expected operating revenues from planned storage withdrawals associated with existing inventory positions and could change as Sequent adjusts its daily injection and withdrawal plans in response to changes in future market conditions and forward NYMEX price fluctuations.
|
In millions
|
Three months ended
|
Six months ended
|
||||||
EBIT - for June 30, 2012
|
$ | 2 | $ | 5 | ||||
Operating margin
|
||||||||
Increased revenues at Golden Triangle as a result of Cavern 2 beginning commercial service in third quarter 2012, partially offset by lower revenues at Jefferson Island as a result of lower subscription rates
|
- | 1 | ||||||
Increase in operating margin
|
- | 1 | ||||||
Operating expenses
|
||||||||
Increased depreciation, property taxes, storage expenses, payroll and outside services largely due to Central Valley and Cavern 2 at Golden Triangle beginning commercial service in 2012
|
2 | 5 | ||||||
Increase in operating expenses
|
2 | 5 | ||||||
Increase from equity investment in Horizon Pipeline
|
- | 1 | ||||||
EBIT - for June 30, 2013
|
$ | - | $ | 2 |
In millions
|
Three months ended
|
Six months ended
|
||||||
EBIT - for June 30, 2012
|
$ | (1 | ) | $ | - | |||
Operating margin
|
||||||||
TEU volume increased due to market share expansion and modest improvement in economic conditions in our service regions; leverage effect of volume increases on fuel expense
|
8 | 13 | ||||||
Decreased TEU rates due to ongoing overcapacity, changes in cargo mix and competitive pressures
|
(4 | ) | (8 | ) | ||||
Other
|
1 | - | ||||||
Increase in operating margin
|
5 | 5 | ||||||
Operating expenses
|
||||||||
Decreased depreciation expense
|
(1 | ) | (2 | ) | ||||
Increased payroll, benefits, outside services and other
|
5 | 4 | ||||||
Increase in operating expenses
|
4 | 2 | ||||||
Decrease from equity investment income in Triton
|
(1 | ) | (2 | ) | ||||
EBIT - for June 30, 2013
|
$ | (1 | ) | $ | 1 |
Dollars in millions
|
Utility
|
Expenditures in 2013
|
Expenditures since project inception
|
Miles of pipe replaced
|
Year project began
|
Anticipated year of completion
|
|||||||||||||||
STRIDE program
|
|||||||||||||||||||||
Pipeline replacement program
|
Atlanta Gas Light
|
$ | 76 | $ | 758 | 2,663 | 1998 | 2013 | |||||||||||||
Integrated System Reinforcement Program
|
Atlanta Gas Light
|
10 | 234 | n/a | 2009 | 2013 | |||||||||||||||
Integrated Customer Growth Program
|
Atlanta Gas Light
|
10 | 39 | n/a | 2010 | 2013 | |||||||||||||||
Enhanced infrastructure program
|
Elizabethtown Gas
|
1 | 109 | 96 | 2009 | (1) | |||||||||||||||
Accelerated infrastructure program
|
Virginia Natural Gas
|
11 | 27 | 61 | 2012 | 2017 | |||||||||||||||
Total
|
$ | 108 | $ | 1,167 | 2,820 |
(1)
|
In July 2012, we filed a request to extend this program and we are currently waiting to hear from the New Jersey BPU. If approved, the program is expected to be completed in 2017. A ruling is expected in the second half of 2013.
|
AGL Resources
|
Nicor Gas
|
|||||||||||||||||||||||
S&P
|
Moody’s
|
Fitch
|
S&P
|
Moody’s
|
Fitch
|
|||||||||||||||||||
Corporate rating
|
BBB+
|
n/a |
BBB+
|
BBB+
|
n/a | A | ||||||||||||||||||
Commercial paper
|
A-2 | P-2 | F2 | A-2 | P-2 | F1 | ||||||||||||||||||
Senior unsecured
|
BBB+
|
Baa1
|
BBB+
|
BBB+
|
A3 | A+ | ||||||||||||||||||
Senior secured
|
n/a | n/a | n/a | A | A1 |
AA-
|
||||||||||||||||||
Ratings outlook
|
Stable
|
Stable
|
Stable
|
Stable
|
Stable
|
Stable
|
June 30, 2013
|
December 31, 2012
|
June 30, 2012
|
||||||||||
AGL Credit Facility
|
54 | % | 58 | % | 54 | % | ||||||
Nicor Gas Credit Facility
|
43 | 55 | 43 |
June 30, 2013
|
December 31, 2012
|
June 30, 2012
|
||||||||||
Short-term debt
|
7 | % | 16 | % | 10 | % | ||||||
Long-term debt
|
48 | 43 | 46 | |||||||||
Total debt
|
55 | 59 | 56 | |||||||||
Equity
|
45 | 41 | 44 | |||||||||
Total capitalization
|
100 | % | 100 | % | 100 | % |
Six months ended June 30,
|
||||||||||||
In millions
|
2013
|
2012
|
Variance
|
|||||||||
Net cash provided by (used in):
|
||||||||||||
Operating activities
|
$ | 1,161 | $ | 1,090 | $ | 71 | ||||||
Investing activities
|
(413 | ) | (358 | ) | (55 | ) | ||||||
Financing activities
|
(695 | ) | (714 | ) | 19 | |||||||
Net increase in cash and cash equivalents
|
53 | 18 | 35 | |||||||||
Cash and cash equivalents at beginning of period
|
131 | 69 | 62 | |||||||||
Cash and cash equivalents at end of period
|
$ | 184 | $ | 87 | $ | 97 |
In millions
|
Period end balance outstanding (1)
|
Daily average balance outstanding (2)
|
Minimum balance outstanding (2)
|
Largest balance outstanding (2)
|
||||||||||||
Commercial paper - AGL Capital
|
$ | 521 | $ | 838 | $ | 380 | $ | 1,064 | ||||||||
Commercial paper - Nicor Gas
|
- | 74 | - | 314 | ||||||||||||
Senior notes
|
- | 129 | - | 225 | ||||||||||||
Capital leases
|
- | 1 | - | 1 | ||||||||||||
Total short-term debt and current portions of long-term debt and capital leases
|
$ | 521 | $ | 1,042 | $ | 380 | $ | 1,604 |
(1)
|
As of June 30, 2013.
|
(2)
|
For the six months ended June 30, 2013. The minimum and largest balances outstanding for each short-term debt instrument occurred at different times during the period. Consequently, the total balances are not indicative of actual borrowings on any one day during the period.
|
Derivative instruments average values at June 30, (1)
|
||||||||
In millions
|
2013
|
2012
|
||||||
Asset
|
$ | 107 | $ | 257 | ||||
Liability
|
36 | 116 |
Derivative instruments fair values netted with cash collateral at
|
||||||||||||
In millions
|
June 30, 2013
|
December 31, 2012
|
June 30, 2012
|
|||||||||
Asset
|
$ | 130 | $ | 144 | $ | 226 | ||||||
Liability
|
39 | 39 | 66 |
Three months ended June 30,
|
Six months ended June 30,
|
|||||||||||||||
In millions
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
Net fair value of derivative instruments outstanding at beginning of period
|
$ | 10 | $ | (46 | ) | $ | 36 | $ | 30 | |||||||
Derivative instruments realized or otherwise settled during period
|
(15 | ) | 46 | (46 | ) | (18 | ) | |||||||||
Net fair value of derivative instruments acquired during period
|
- | - | - | 3 | ||||||||||||
Change in net fair value of derivative instruments
|
2 | 23 | 7 | 8 | ||||||||||||
Net fair value of derivative instruments outstanding at end of period
|
(3 | ) | 23 | (3 | ) | 23 | ||||||||||
Netting of cash collateral
|
94 | 137 | 94 | 137 | ||||||||||||
Cash collateral and net fair value of derivative instruments outstanding at end of period
|
$ | 91 | $ | 160 | $ | 91 | $ | 160 |
In millions
|
Prices actively quoted (Level 1) (1)
|
Significant other observable inputs (Level 2) (2)
|
||||||
Mature through 2013
|
$ | 3 | $ | 17 | ||||
Mature 2014 - 2015
|
(46 | ) | 24 | |||||
Mature 2016 - 2017
|
(3 | ) | 2 | |||||
Total derivative instruments (3)
|
$ | (46 | ) | $ | 43 |
(2)
|
Valued using basis transactions that represent the cost to transport natural gas from a NYMEX delivery point to the contract delivery point. These transactions are based on quotes obtained either through electronic trading platforms or directly from brokers.
|
Three months ended June 30,
|
Six months ended June 30,
|
|||||||||||||||
In millions
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
Period end
|
$ | 1.7 | $ | 1.9 | $ | 1.7 | $ | 1.9 | ||||||||
Average
|
1.8 | 2.4 | 1.8 | 2.5 | ||||||||||||
High
|
2.2 | 3.6 | 2.6 | 4.8 | ||||||||||||
Low
|
1.2 | 1.7 | 1.2 | 1.7 |
Gross receivables
|
Gross payables
|
|||||||||||||||||||||||
In millions
|
June 30, 2013
|
December 31, 2012
|
June 30, 2012
|
June 30, 2013
|
December 31, 2012
|
June 30, 2012
|
||||||||||||||||||
Netting agreements in place:
|
||||||||||||||||||||||||
Counterparty is investment grade
|
$ | 206 | $ | 485 | $ | 266 | $ | 107 | $ | 282 | $ | 186 | ||||||||||||
Counterparty is non-investment grade
|
1 | 9 | 9 | 7 | 13 | 11 | ||||||||||||||||||
Counterparty has no external rating
|
396 | 175 | 70 | 514 | 315 | 185 | ||||||||||||||||||
No netting agreements in place:
|
||||||||||||||||||||||||
Counterparty is investment grade
|
5 | 7 | 2 | - | 1 | 1 | ||||||||||||||||||
Counterparty has no external rating
|
- | 1 | - | - | - | - | ||||||||||||||||||
Amount recorded on unaudited Condensed Consolidated Statements of Financial Position
|
$ | 608 | $ | 677 | $ | 347 | $ | 628 | $ | 611 | $ | 383 |
·
|
result in increased costs associated with our operations,
|
·
|
increase other costs to our business,
|
·
|
affect the demand for natural gas (positively or negatively), and
|
·
|
impact the prices we charge our customers.
|
4.1a |
Form of AGL Capital Corporation 4.40% Senior Notes due 2043 (Exhibit 4.2, AGL Resources Inc. Form 8-K filed May 16, 2013).
|
||
4.1b |
Guarantee of AGL Resources Inc. dated as of May 16, 2013 regarding the AGL Capital Corporation 4.40% Senior Notes due 2043 (Exhibit 4.3, AGL Resources Inc. Form 8-K filed May 16, 2013).
|
||
12 |
Statement of Computation of Ratio of Earnings to Fixed Charges.
|
||
31.1 |
Certification of John W. Somerhalder II pursuant to Rule 13a - 14(a).
|
||
31.2 |
Certification of Andrew W. Evans pursuant to Rule 13a - 14(a).
|
||
32.1 |
Certification of John W. Somerhalder II pursuant to 18 U.S.C. Section 1350.
|
||
32.2 |
Certification of Andrew W. Evans pursuant to 18 U.S.C. Section 1350.
|
||
101.INS
|
XBRL Instance Document.
|
||
101.SCH
|
XBRL Taxonomy Extension Schema.
|
||
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase.
|
||
101.DEF
|
XBRL Taxonomy Definition Linkbase.
|
||
101.LAB
|
XBRL Taxonomy Extension Labels Linkbase.
|
||
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase.
|
Six months ended
|
Fiscal
|
Fiscal
|
Fiscal
|
Fiscal
|
Fiscal
|
|||||||||||||||||||
Dollars in millions
|
June 30, 2013
|
2012
|
2011
|
2010
|
2009
|
2008
|
||||||||||||||||||
Earnings before income taxes
|
$ | 341 | $ | 450 | $ | 311 | $ | 390 | $ | 384 | $ | 369 | ||||||||||||
Add:
|
||||||||||||||||||||||||
Fixed charges (see “B” below)
|
102 | 203 | 145 | 123 | 115 | 127 | ||||||||||||||||||
Amortization of capitalized interest (1)
|
- | - | 1 | - | - | - | ||||||||||||||||||
Distributed income of equity investees
|
5 | 14 | - | - | - | - | ||||||||||||||||||
Less:
|
||||||||||||||||||||||||
Interest capitalized (1)
|
- | (1 | ) | (1 | ) | (5 | ) | (3 | ) | (2 | ) | |||||||||||||
Noncontrolling interest in pre-tax income of subsidiaries that have not incurred fixed charges
|
(11 | ) | (15 | ) | (14 | ) | (16 | ) | (27 | ) | (20 | ) | ||||||||||||
Adjusted Earnings (A)
|
$ | 437 | $ | 651 | $ | 442 | $ | 492 | $ | 469 | $ | 474 | ||||||||||||
Fixed charges
|
||||||||||||||||||||||||
Interest on long-term debt
|
$ | 89 | $ | 177 | $ | 101 | $ | 109 | $ | 98 | $ | 96 | ||||||||||||
Other interest, including amortized premiums, discounts and capitalized expenses related to indebtedness liability
|
7 | 13 | 37 | 7 | 10 | 24 | ||||||||||||||||||
Estimated interest components of rentals
|
6 | 13 | 7 | 7 | 7 | 7 | ||||||||||||||||||
Total fixed charges (B)
|
$ | 102 | $ | 203 | $ | 145 | $ | 123 | $ | 115 | $ | 127 | ||||||||||||
Ratio of earnings to fixed charges (A)/(B)
|
4.28 | 3.21 | 3.05 | 4.00 | 4.08 | 3.73 |
(1)
|
Includes interest capitalized and related amortization for our nonregulated segments.
|
|
I, John W. Somerhalder II, certify that:
|
1.
|
I have reviewed this quarterly report on Form 10-Q of AGL Resources Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
|
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date: July 31, 2013
|
/s/ John W. Somerhalder II
|
Chairman, President and Chief Executive Officer
|
|
I, Andrew W. Evans, certify that:
|
1.
|
I have reviewed this quarterly report on Form 10-Q of AGL Resources Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
|
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date: July 31, 2013
|
/s/ Andrew W. Evans
|
Executive Vice President and Chief Financial Officer
|
(1)
|
the Form 10-Q for the quarterly period ended June 30, 2013 (the “Report”), which accompanies this certification, fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and
|
(2)
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of AGL Resources Inc.
|
Date: July 31, 2013
|
/s/ John W. Somerhalder II
|
Chairman, President and Chief Executive Officer
|
(1)
|
the Form 10-Q for the quarterly period ended June 30, 2013 (the “Report”), which accompanies this certification, fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and
|
(2)
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of AGL Resources Inc.
|
Date: July 31, 2013
|
/s/ Andrew W. Evans
|
Executive Vice President and Chief Financial Officer
|
Note 7 - Equity
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
|
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Other Comprehensive Income, Noncontrolling Interest [Text Block] | Note 7 - Equity Our other comprehensive income amounts are aggregated within our accumulated other comprehensive loss. The following table provides changes in the components of our accumulated other comprehensive loss balance, net of the related income tax effects.
The following table provides details of the reclassifications out of accumulated other comprehensive loss for the periods presented, and the ultimate impact on net income.
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Note 8 - Non-Wholly Owned Entities (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2013
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Jun. 30, 2012
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Jun. 30, 2013
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Jun. 30, 2012
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Note 8 - Non-Wholly Owned Entities (Details) [Line Items] | ||||
Payments to Acquire Property, Plant, and Equipment | $ 170 | $ 179 | $ 318 | $ 350 |
Payments of Ordinary Dividends, Noncontrolling Interest | 17 | 14 | ||
South Star [Member] | AGL Resources Inc [Member]
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Note 8 - Non-Wholly Owned Entities (Details) [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 85.00% | 85.00% | ||
South Star [Member] | Piedmont [Member]
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Note 8 - Non-Wholly Owned Entities (Details) [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 15.00% | 15.00% | ||
South Star [Member]
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Note 8 - Non-Wholly Owned Entities (Details) [Line Items] | ||||
Payments to Acquire Property, Plant, and Equipment | $ 1 | $ 1 |
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)
In Millions, unless otherwise specified |
6 Months Ended | |
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Jun. 30, 2013
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Jun. 30, 2012
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Cash flows from operating activities | ||
Net income | $ 214 | $ 174 |
Adjustments to reconcile net income to net cash flow provided by operating activities | ||
Depreciation and amortization | 216 | 206 |
Change in derivative instrument assets and liabilities | 14 | 18 |
Deferred income taxes | (18) | 56 |
Gain on sale of Compass Energy | (11) | |
Changes in certain assets and liabilities | ||
Receivables, other than energy marketing | 267 | 367 |
Inventories, net of temporary LIFO liquidation | 262 | 242 |
Energy marketing receivables and trade payables, net | 86 | 53 |
Prepaid taxes | 57 | 33 |
Accrued natural gas costs | 40 | 20 |
Trade payables, other than energy marketing | (15) | (34) |
Other - net | 49 | (45) |
Net cash flow provided by operating activities | 1,161 | 1,090 |
Cash flows from investing activities | ||
Expenditures for property, plant and equipment | (318) | (350) |
Acquisitions of assets | (122) | |
Disposition of assets | 12 | |
Other | 15 | (8) |
Net cash flow used in investing activities | (413) | (358) |
Cash flows from financing activities | ||
Issuance of senior notes | 494 | |
Net payments and borrowings of short-term debt | (857) | (590) |
Payment of senior notes | (225) | |
Dividends paid on common shares | (111) | (96) |
Distribution to noncontrolling interest | (17) | (14) |
Other | 21 | (14) |
Net cash flow used in financing activities | (695) | (714) |
Net increase in cash and cash equivalents | 53 | 18 |
Cash and cash equivalents at beginning of period | 131 | 69 |
Cash and cash equivalents at end of period | 184 | 87 |
Cash paid during the period for | ||
Interest | 89 | 86 |
Income taxes | 60 | 4 |
Non cash financing transaction | ||
Refinancing of gas facility revenue bonds | $ 200 |
Note 4 - Derivative Instruments (Tables)
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Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] |
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Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] |
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Schedule of Derivative Instruments [Table Text Block] |
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Note 8 - Non-Wholly Owned Entities (Details) - Equity Method Investments (USD $)
In Millions, unless otherwise specified |
Jun. 30, 2013
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Jun. 30, 2012
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Triton [Member] | Three Months Ended [Member]
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Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | $ 2 | $ 3 |
Triton [Member] | Six Months Ended [Member]
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Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | 4 | 6 |
Other Equity Investments [Member] | Three Months Ended [Member]
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Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | 2 | |
Other Equity Investments [Member] | Six Months Ended [Member]
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Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | $ 1 | $ 2 |
Note 8 - Non-Wholly Owned Entities
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Noncontrolling Interest Disclosure [Text Block] | Note 8 - Non-Wholly Owned Entities Variable Interest Entities On a quarterly basis, we evaluate all of our ownership interests to determine if they represent a VIE as defined by the authoritative accounting guidance on consolidation, and if so, which party is the primary beneficiary. We have determined that SouthStar, a joint venture owned 85% by us and 15% by Piedmont, is our only VIE for which we are the primary beneficiary, which requires us to consolidate its assets, liabilities and statements of income. See Note 10 to our Consolidated Financial Statements and related notes included in Item 8 of our 2012 Form 10-K. Earnings from SouthStar in 2013 and 2012 were allocated entirely in accordance with the ownership interests. SouthStar markets natural gas and related services under the trade name Georgia Natural Gas to retail customers primarily in Georgia, under various other trade names to retail customers in Ohio, Florida and New York, and to commercial and industrial customers in the southeastern United States. There have been no significant changes to the primary risks associated with SouthStar beyond those discussed in our risk factors included in Item 1A of our 2012 Form 10-K. SouthStar’s financial results are seasonal in nature, with business depending to a great extent on the first and fourth quarters of each year. SouthStar’s current assets consist primarily of natural gas inventory, derivative instruments and receivables from its customers. SouthStar also has receivables from us due to its participation in AGL Capital’s commercial paper program. See Note 2 for additional discussions of inventories. SouthStar’s restricted assets consist of customer deposits and were immaterial as of June 30, 2013 and 2012. SouthStar’s current liabilities consist primarily of accrued natural gas costs, other accrued expenses, customer deposits, derivative instruments and payables to us from its participation in AGL Capital’s commercial paper program. SouthStar’s other contractual commitments and obligations, including operating leases and agreements with third party providers, do not contain terms that would trigger material financial obligations in the event that such contracts were terminated. As a result, our maximum exposure to a loss due to SouthStar’s contractual commitments and obligations is considered to be immaterial. SouthStar’s creditors have no recourse to our general credit beyond our corporate guarantees that we have provided to SouthStar’s counterparties and natural gas suppliers. We have provided no financial or other support that was not previously contractually required. With the exception of our corporate guarantees, we have not entered into any arrangements that could require us to provide financial support to SouthStar. Price and volume fluctuations of SouthStar’s natural gas inventories can cause significant variations in our working capital and cash flow from operations. Changes to SouthStar’s working capital resulting from the impact of weather, the timing of customer collections, payments for natural gas purchases and cash collateral amounts that SouthStar maintains to facilitate its derivative instruments also impact our operating cash flow. Cash flows used in our investing activities include capital expenditures for SouthStar of $1 million for the six months ended June 30, 2013 and 2012 and for the year ended December 31, 2012. Cash flows used in our financing activities include SouthStar’s distribution to Piedmont for its portion of SouthStar’s annual earnings from the previous year. Generally, this distribution occurs in the first quarter of each fiscal year. For the six months ended June 30, 2013, SouthStar distributed $17 million to Piedmont and $14 million during the same period last year. The increase was primarily the result of increased earnings year-over-year. The following table provides additional information on all of SouthStar’s assets and liabilities as of the dates presented, which are consolidated within our unaudited Condensed Consolidated Statements of Financial Position.
The following table provides additional information on SouthStar’s operating revenues and operating expenses for the periods presented, which are consolidated within our unaudited Condensed Consolidated Statements of Income.
Equity Method Investments Income from our equity method investments is classified as other income in our unaudited Condensed Consolidated Statements of Income. The following table provides the income from our equity method investments. For more information about our equity method investments, see Note 10 to our Consolidated Financial Statements under Item 8 included in our 2012 Form 10-K.
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Note 6 - Debt and Credit Facilities (Details) (USD $)
In Millions, unless otherwise specified |
6 Months Ended | |||
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Jun. 30, 2013
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Mar. 31, 2013
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Dec. 31, 2012
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Jun. 30, 2012
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Note 6 - Debt and Credit Facilities (Details) [Line Items] | ||||
Proceeds from Issuance of Long-term Debt | $ 500 | |||
Debt Instrument, Term | 30 years | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.40% | |||
Repayments of Senior Debt | 225 | |||
Long-term Debt | 3,819 | 3,327 | 3,334 | |
Derivative Asset, Notional Amount | 50 | |||
Derivative, Average Swaption Interest Rate | 1.98% | |||
Proceeds from Derivative Instrument, Financing Activities | 6 | |||
Refinanced [Member] | Debt Issued By New Jersey Economic Development Authority [Member] | Gas Facility Revenue Bonds [Member]
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Note 6 - Debt and Credit Facilities (Details) [Line Items] | ||||
Long-term Debt | 180 | |||
Refinanced [Member] | Debt Issued by Brevard County Florida [Member] | Gas Facility Revenue Bonds [Member]
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Note 6 - Debt and Credit Facilities (Details) [Line Items] | ||||
Long-term Debt | 20 | |||
Refinanced [Member] | Refunding Bonds [Member] | Gas Facility Revenue Bonds [Member]
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Note 6 - Debt and Credit Facilities (Details) [Line Items] | ||||
Long-term Debt | 60 | |||
Refinanced [Member] | Purchase of Existing Bonds [Member] | Gas Facility Revenue Bonds [Member]
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Note 6 - Debt and Credit Facilities (Details) [Line Items] | ||||
Long-term Debt | 140 | |||
Refinanced [Member] | Gas Facility Revenue Bonds [Member]
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Note 6 - Debt and Credit Facilities (Details) [Line Items] | ||||
Long-term Debt | 200 | |||
Interest Rate Swap [Member]
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Note 6 - Debt and Credit Facilities (Details) [Line Items] | ||||
Derivative Asset, Notional Amount | 300 | |||
Derivative, Average Swaption Interest Rate | 1.85% | |||
AGL Capital [Member]
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Note 6 - Debt and Credit Facilities (Details) [Line Items] | ||||
Debt, Weighted Average Interest Rate | 0.40% | |||
Gas Facility Revenue Bonds [Member]
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Note 6 - Debt and Credit Facilities (Details) [Line Items] | ||||
Long-term Debt | $ 200 | $ 200 | $ 200 |
Note 9 - Commitments, Guarantees and Contingencies (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2011
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Dec. 31, 2004
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Dec. 21, 2012
ft3
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Dec. 31, 2011
Interest Due [Member]
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Dec. 31, 2003
Adverse Consequences To Ratepayers [Member]
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Dec. 31, 2012
Illinois Commission [Member]
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Dec. 31, 2011
Illinois Commission [Member]
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Jun. 07, 2013
Illinois Commission [Member]
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Mar. 31, 2012
Illinois Commission [Member]
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Dec. 31, 2011
IAGO [Member]
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Dec. 31, 2011
CUB [Member]
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Note 9 - Commitments, Guarantees and Contingencies (Details) [Line Items] | |||||||||||
Gas Balancing Volume Amount (in Cubic Feet) | 4,800,000,000 | ||||||||||
Prior Period Reclassification Adjustment | $ 25 | ||||||||||
Loss Contingency, Estimate of Possible Loss | 27 | 4 | 64 | 64 | |||||||
Adjustment To Previously Recorded Pbr Reserve | 2 | ||||||||||
Loss Contingency, Damages Sought, Value | 6 | 2 | 72 | 85 | 255 | 305 | |||||
Loss Contingency Accrual, Period Increase (Decrease) | 8 | ||||||||||
Loss Contingency Accrual | $ 72 |
Note 3 - Fair Value Measurements (Details) - Derivative Assets and Liabilities (USD $)
In Millions, unless otherwise specified |
Jun. 30, 2013
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Dec. 31, 2012
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Jun. 30, 2012
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Netting of Cash Collateral [Member] | Natural Gas Derivatives [Member]
|
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Natural gas derivatives | ||||||||||||
Derivative Assets | $ 47 | [1] | $ 33 | [1] | $ 52 | [1] | ||||||
Derivative Liabilities | 47 | 36 | 85 | |||||||||
Fair Value, Inputs, Level 1 [Member] | Natural Gas Derivatives [Member]
|
||||||||||||
Natural gas derivatives | ||||||||||||
Derivative Assets | 4 | [1] | 8 | [1] | 9 | [1] | ||||||
Derivative Liabilities | (51) | (45) | (103) | |||||||||
Fair Value, Inputs, Level 2 [Member] | Natural Gas Derivatives [Member]
|
||||||||||||
Natural gas derivatives | ||||||||||||
Derivative Assets | 78 | [1] | 96 | [1] | 148 | [1] | ||||||
Derivative Liabilities | (35) | (30) | (48) | |||||||||
Fair Value, Inputs, Level 2 [Member] | Interest Rate Derivatives [Member]
|
||||||||||||
Natural gas derivatives | ||||||||||||
Derivative Assets | [1] | 3 | [1] | 17 | [1] | |||||||
Natural Gas Derivatives [Member]
|
||||||||||||
Natural gas derivatives | ||||||||||||
Derivative Assets | 129 | [1],[2],[3] | 137 | [1],[2],[3] | 209 | [1],[2],[3] | ||||||
Derivative Liabilities | $ (39) | [2],[3] | $ (39) | [2],[3] | $ (66) | [2],[3] | ||||||
|
Note 7 - Equity (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
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Other Comprehensive Income, Noncontrolling Interest [Text Block] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] |
|
Note 6 - Debt and Credit Facilities (Tables)
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
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Debt Disclosure [Text Block] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt [Table Text Block] |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Capitalization [Table Text Block] |
|
Note 5 - Employee Benefit Plans (Details) (USD $)
|
6 Months Ended | |
---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Pension and Other Postretirement Benefits Disclosure [Text Block] | ||
Defined Benefit Plan, Contributions by Employer | $ 0 | $ 24,000,000 |
Note 2 - Significant Accounting Policies and Methods of Application (Details) - Other Income (Expense), Net (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|||||||
Other Income (Expense), Net [Abstract] | ||||||||||
Equity investment income (1) | $ 2 | [1] | $ 5 | [1] | $ 5 | [1] | $ 8 | [1] | ||
Allowance for funds used during construction (AFUDC) - equity | 3 | 1 | 6 | 2 | ||||||
Other, net | 2 | 3 | 1 | 3 | ||||||
Total other income | $ 7 | $ 9 | $ 12 | $ 13 | ||||||
|
Note 3 - Fair Value Measurements (Details) - Amortized Cost and Fair Value of Long-Term Debt (USD $)
In Millions, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
Jun. 30, 2012
|
|||||
---|---|---|---|---|---|---|---|---|
Note 3 - Fair Value Measurements (Details) - Amortized Cost and Fair Value of Long-Term Debt [Line Items] | ||||||||
Long-term debt amortized cost | $ 3,819 | $ 3,553 | $ 3,565 | |||||
Fair Value, Inputs, Level 2 [Member]
|
||||||||
Note 3 - Fair Value Measurements (Details) - Amortized Cost and Fair Value of Long-Term Debt [Line Items] | ||||||||
Long-term debt fair value (1) | $ 4,070 | [1] | $ 4,057 | [1] | $ 4,043 | [1] | ||
|
Note 6 - Debt and Credit Facilities (Details) - Debt Schedule (USD $)
In Millions, unless otherwise specified |
6 Months Ended | 6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
Dec. 31, 2012
|
Jun. 30, 2012
|
Jun. 30, 2013
Commercial Paper [Member]
AGL Capital [Member]
|
Dec. 31, 2012
Commercial Paper [Member]
AGL Capital [Member]
|
Jun. 30, 2012
Commercial Paper [Member]
AGL Capital [Member]
|
Jun. 30, 2013
Commercial Paper [Member]
Nicor Gas [Member]
|
Dec. 31, 2012
Commercial Paper [Member]
Nicor Gas [Member]
|
Jun. 30, 2012
Commercial Paper [Member]
Nicor Gas [Member]
|
Jun. 30, 2013
Commercial Paper [Member]
|
Dec. 31, 2012
Commercial Paper [Member]
|
Jun. 30, 2012
Commercial Paper [Member]
|
Jun. 30, 2013
Commercial Paper [Member]
Minimum [Member]
AGL Capital [Member]
|
Jun. 30, 2013
Commercial Paper [Member]
Minimum [Member]
Nicor Gas [Member]
|
Jun. 30, 2013
Current Portion Long-Term Debt [Member]
|
Dec. 31, 2012
Current Portion Long-Term Debt [Member]
|
Jun. 30, 2012
Current Portion Long-Term Debt [Member]
|
Jun. 30, 2013
Current Portion of Capital Leases [Member]
|
Dec. 31, 2012
Current Portion of Capital Leases [Member]
|
Jun. 30, 2012
Current Portion of Capital Leases [Member]
|
Jun. 30, 2013
Senior Notes [Member]
|
Dec. 31, 2012
Senior Notes [Member]
|
Jun. 30, 2012
Senior Notes [Member]
|
Jun. 30, 2013
First Mortgage Bonds [Member]
|
Dec. 31, 2012
First Mortgage Bonds [Member]
|
Jun. 30, 2012
First Mortgage Bonds [Member]
|
Jun. 30, 2013
Gas Facility Revenue Bonds [Member]
|
Dec. 31, 2012
Gas Facility Revenue Bonds [Member]
|
Jun. 30, 2012
Gas Facility Revenue Bonds [Member]
|
Jun. 30, 2013
Medium-term Notes [Member]
|
Dec. 31, 2012
Medium-term Notes [Member]
|
Jun. 30, 2012
Medium-term Notes [Member]
|
Jun. 30, 2013
Long-Term Debt Principal [Member]
|
Dec. 31, 2012
Long-Term Debt Principal [Member]
|
Jun. 30, 2012
Long-Term Debt Principal [Member]
|
Jun. 30, 2013
Long-Term Debt Fair Value Adjustment [Member]
|
Dec. 31, 2012
Long-Term Debt Fair Value Adjustment [Member]
|
Jun. 30, 2012
Long-Term Debt Fair Value Adjustment [Member]
|
Jun. 30, 2013
Unamortized Debt Premium Discount Net [Member]
|
Dec. 31, 2012
Unamortized Debt Premium Discount Net [Member]
|
Jun. 30, 2012
Unamortized Debt Premium Discount Net [Member]
|
Jun. 30, 2013
Long-Term Debt Non-Principal [Member]
|
Dec. 31, 2012
Long-Term Debt Non-Principal [Member]
|
Jun. 30, 2012
Long-Term Debt Non-Principal [Member]
|
Jun. 30, 2013
Minimum [Member]
Current Portion Long-Term Debt [Member]
|
Jun. 30, 2013
Minimum [Member]
Current Portion of Capital Leases [Member]
|
Jun. 30, 2013
Minimum [Member]
Senior Notes [Member]
|
Jun. 30, 2013
Minimum [Member]
First Mortgage Bonds [Member]
|
Jun. 30, 2013
Minimum [Member]
Gas Facility Revenue Bonds [Member]
|
Jun. 30, 2013
Minimum [Member]
Medium-term Notes [Member]
|
Jun. 30, 2013
Minimum [Member]
Long-Term Debt Fair Value Adjustment [Member]
|
Jun. 30, 2013
Minimum [Member]
Unamortized Debt Premium Discount Net [Member]
|
Jun. 30, 2013
Maximum [Member]
Senior Notes [Member]
|
Jun. 30, 2013
Maximum [Member]
First Mortgage Bonds [Member]
|
Jun. 30, 2013
Maximum [Member]
Gas Facility Revenue Bonds [Member]
|
Jun. 30, 2013
Maximum [Member]
Medium-term Notes [Member]
|
Jun. 30, 2013
Maximum [Member]
Long-Term Debt Fair Value Adjustment [Member]
|
|||||||||||||||||||||||||||||||||||||||||
Short-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maturity Date | 2013 | [1] | 2013 | 2013 | 2013 | 2015 | 2016 | 2022 | 2017 | 2016 | [2] | n/a | 2043 | 2038 | 2033 | 2027 | 2038 | [2] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted average interest rate | 4.50% | [3] | 4.70% | [3] | 0.50% | [1],[3] | 0.50% | [1],[3] | 0.40% | [3] | 0.50% | [3] | 0.50% | [3] | 0.50% | [3] | 4.50% | [3] | 4.70% | [3] | 5.00% | [3] | 4.90% | [3] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding | $ 226 | $ 231 | $ 521 | [1] | $ 1,063 | [1] | $ 731 | [1] | $ 314 | $ 521 | $ 1,377 | $ 731 | $ 225 | $ 230 | $ 1 | [3] | $ 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt - excluding current portion | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maturity Date | 2013 | [1] | 2013 | 2013 | 2013 | 2015 | 2016 | 2022 | 2017 | 2016 | [2] | n/a | 2043 | 2038 | 2033 | 2027 | 2038 | [2] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted average interest rate | 5.10% | [3] | 5.10% | [3] | 5.60% | [3] | 5.60% | [3] | 0.50% | [3] | 1.20% | [3] | 7.80% | [3] | 7.80% | [3] | 4.90% | [3] | 5.00% | [3] | [2],[3] | [2],[3] | [3] | [3] | [3] | [3] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding | 3,819 | 3,327 | 3,334 | 2,825 | 2,325 | 2,325 | 500 | 500 | 500 | 200 | 200 | 200 | 181 | 181 | 181 | 3,706 | 3,206 | 3,206 | 97 | [2] | 103 | [2] | 110 | [2] | 16 | 18 | 18 | 113 | 121 | 128 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total debt | $ 4,340 | $ 4,930 | $ 4,296 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Note 2 - Significant Accounting Policies and Methods of Application (Details) (USD $)
In Millions, unless otherwise specified |
1 Months Ended | 6 Months Ended | 1 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2013
|
Jun. 30, 2013
Tropical Shipping [Member]
|
Dec. 31, 2012
Tropical Shipping [Member]
|
Jun. 30, 2012
Tropical Shipping [Member]
|
Jan. 31, 2013
NiSource Inc. [Member]
|
Jan. 31, 2013
Customer Relationships [Member]
|
Jan. 31, 2013
Trade Names [Member]
|
Jun. 30, 2013
Customer Relationships Acquired [Member]
|
Jun. 30, 2013
Minimum [Member]
Customer Relationships [Member]
|
Jun. 30, 2013
Maximum [Member]
Customer Relationships [Member]
|
|
Note 2 - Significant Accounting Policies and Methods of Application (Details) [Line Items] | |||||||||||
Investments and Cash (in Dollars) | $ 79 | $ 80 | $ 76 | ||||||||
Service Plans Acquired | 500,000 | ||||||||||
Payments to Acquire Businesses, Gross (in Dollars) | 120 | ||||||||||
Working Capital Acquired (in Dollars) | 2 | ||||||||||
Finite-lived Intangible Assets Acquired (in Dollars) | 47 | 17 | |||||||||
Finite-Lived Intangible Asset, Useful Life | 14 years | 10 years | 12 years | 15 years | |||||||
Customer Relationships Acquired | 33,000 | ||||||||||
Finite-Lived Customer Relationships, Gross (in Dollars) | 32 | 32 | |||||||||
Proceeds from Sales of Business, Affiliate and Productive Assets (in Dollars) | 12 | ||||||||||
Gain (Loss) on Disposition of Business (in Dollars) | 11 | ||||||||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High (in Dollars) | 8 | 8 | |||||||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, Low (in Dollars) | $ 3 | $ 3 | |||||||||
Business Combination Contingent Consideration Arrangements Earn Out Period | 5 years |
Note 4 - Derivative Instruments (Details) - Net Long Natural Gas Contracts
|
Jun. 30, 2013
ft3
|
Dec. 31, 2012
ft3
|
Jun. 30, 2012
ft3
|
|||||||
---|---|---|---|---|---|---|---|---|---|---|
Hedge designation | ||||||||||
Cash flow hedges | 3,000,000,000 | [1],[2] | 6,000,000,000 | [1] | 7,000,000,000 | [1] | ||||
Not designated as hedges | 221,000,000,000 | [1],[2] | 96,000,000,000 | [1] | 47,000,000,000 | [1] | ||||
Total hedges | 224,000,000,000 | [1],[2] | 102,000,000,000 | [1] | 54,000,000,000 | [1] | ||||
Hedge position | ||||||||||
Short position | (2,311,000,000,000) | [1],[2] | (1,955,000,000,000) | [1] | (2,018,000,000,000) | [1] | ||||
Long position | 2,535,000,000,000 | [1],[2] | 2,057,000,000,000 | [1] | 2,072,000,000,000 | [1] | ||||
Net long position | 224,000,000,000 | [1],[2] | 102,000,000,000 | [1] | 54,000,000,000 | [1] | ||||
|
Note 5 - Employee Benefit Plans (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
|
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Pension and Other Postretirement Benefits Disclosure [Text Block] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Defined Benefit Plans Disclosures [Table Text Block] |
|
Condensed Consolidated Statements of Other Comprehensive Income (Unaudited) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Net income | $ 50 | $ 35 | $ 214 | $ 174 |
Retirement benefit plans | ||||
Reclassification of actuarial losses to net benefit cost (net of income tax of $3 and $5 for the three and six months ended June 30, 2013, and $3 and $4 for the three and six months ended June 30, 2012) | 4 | 7 | 8 | 8 |
Reclassification of prior service credits to net benefit cost (net of income tax of $1 for the six months ended June 30, 2013) | (1) | |||
Retirement benefit plans | 4 | 7 | 7 | 8 |
Cash flow hedges, net of tax | ||||
Net derivative instrument gains (losses) arising during the period (net of income tax of $1 for the three months ended June 30, 2013, and $3 and $1 for the three and six months ended June 30, 2012) | (1) | 4 | 1 | 2 |
Reclassification of realized derivative instrument (gains) losses to net income (net of income tax of $1 for the six months ended June 30, 2013) | (1) | 1 | ||
Cash flow hedges, net | (2) | 4 | 2 | 2 |
Other comprehensive income, net of tax | 2 | 11 | 9 | 10 |
Comprehensive income | 52 | 46 | 223 | 184 |
Less comprehensive income attributable to noncontrolling interest | 1 | 1 | 11 | 10 |
Comprehensive income attributable to AGL Resources Inc. | $ 51 | $ 45 | $ 212 | $ 174 |
Condensed Consolidated Statements of Equity (Unaudited) (USD $)
In Millions, except Share data |
Common Stock [Member]
|
Additional Paid-in Capital [Member]
|
Retained Earnings [Member]
|
Accumulated Other Comprehensive Income (Loss) [Member]
|
Treasury Stock [Member]
|
Noncontrolling Interest [Member]
|
Total
|
---|---|---|---|---|---|---|---|
Balance at Dec. 31, 2011 | $ 586 | $ 1,989 | $ 967 | $ (217) | $ (7) | $ 21 | $ 3,339 |
Balance (in Shares) at Dec. 31, 2011 | 117,000,000 | ||||||
Net income | 164 | 10 | 174 | ||||
Other comprehensive loss | 10 | 10 | |||||
Dividends on common stock | (96) | (96) | |||||
Distributions to noncontrolling interest | (14) | (14) | |||||
Stock issued, dividend reinvestment plan | 3 | 9 | (1) | 11 | |||
Stock issued, dividend reinvestment plan (in Shares) | 500,000 | ||||||
Stock-based compensation expense (net of tax) | 5 | 5 | |||||
Balance at Jun. 30, 2012 | 589 | 2,003 | 1,035 | (207) | (8) | 17 | 3,429 |
Balance (in Shares) at Jun. 30, 2012 | 117,500,000 | 117,505,440 | |||||
Balance at Dec. 31, 2012 | 590 | 2,014 | 1,035 | (218) | (8) | 22 | 3,435 |
Balance (in Shares) at Dec. 31, 2012 | 117,900,000 | 117,855,075 | |||||
Net income | 203 | 11 | 214 | ||||
Other comprehensive loss | 9 | 9 | |||||
Dividends on common stock | (111) | (111) | |||||
Distributions to noncontrolling interest | (17) | (17) | |||||
Stock granted, share-based compensation, net of forfeitures | (6) | (6) | |||||
Stock issued, dividend reinvestment plan | 1 | 5 | 6 | ||||
Stock issued, dividend reinvestment plan (in Shares) | 100,000 | ||||||
Stock issued, share-based compensation, net of forfeitures | 3 | 18 | 21 | ||||
Stock issued, share-based compensation, net of forfeitures (in Shares) | 600,000 | ||||||
Stock-based compensation expense (net of tax) | 4 | 4 | |||||
Balance at Jun. 30, 2013 | $ 594 | $ 2,035 | $ 1,127 | $ (209) | $ (8) | $ 16 | $ 3,555 |
Balance (in Shares) at Jun. 30, 2013 | 118,600,000 | 118,560,687 |
Note 1 - Organization and Basis of Presentation
|
6 Months Ended |
---|---|
Jun. 30, 2013
|
|
Disclosure Text Block [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Note 1 - Organization and Basis of Presentation General AGL Resources Inc. is an energy services holding company that conducts substantially all its operations through its subsidiaries. Unless the context requires otherwise, references to “we,” “us,” “our,” the “company,” or “AGL Resources” mean consolidated AGL Resources Inc. and its subsidiaries. The December 31, 2012 Condensed Consolidated Statement of Financial Position data was derived from our audited financial statements, but does not include all disclosures required by GAAP. We have prepared the accompanying unaudited Condensed Consolidated Financial Statements under the rules and regulations of the SEC. In accordance with such rules and regulations, we have condensed or omitted certain information and notes normally included in financial statements prepared in conformity with GAAP. Our unaudited Condensed Consolidated Financial Statements reflect all adjustments of a normal recurring nature that are, in the opinion of management, necessary for a fair presentation of our financial results for the interim periods. These unaudited Condensed Consolidated Financial Statements should be read in conjunction with our Consolidated Financial Statements and related notes included in Item 8 of our 2012 Form 10-K. Due to the seasonal nature of our business and other factors, our results of operations and our financial condition for the periods presented are not necessarily indicative of the results of operations and financial condition to be expected for or as of any other period. Basis of Presentation Our unaudited Condensed Consolidated Financial Statements include our accounts, the accounts of our wholly owned subsidiaries, the accounts of our majority-owned and controlled subsidiaries and the accounts of our consolidated VIE, for which we are the primary beneficiary. For unconsolidated entities that we do not control, but exercise significant influence over, we use the equity method of accounting and our proportionate share of income or loss is recorded on the unaudited Condensed Consolidated Statements of Income. See Note 8 for additional information. We have eliminated intercompany profits and transactions in consolidation except for intercompany profits where recovery of such amounts is probable under the affiliates’ rate regulation process. Certain amounts from prior periods have been reclassified and revised to conform to the current period presentation. The reclassifications and revisions had no material impact on prior periods. |
Condensed Consolidated Statements of Equity (Unaudited) (Parentheticals) (USD $)
|
6 Months Ended | |
---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
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Dividends on common stock, per share | $ 0.94 | $ 0.82 |
Note 4 - Derivative Instruments (Details) (USD $)
In Millions, unless otherwise specified |
6 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Dec. 31, 2012
|
Dec. 31, 2011
|
|||||||||
Note 4 - Derivative Instruments (Details) [Line Items] | ||||||||||||
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | $ 39 | [1],[2] | $ 66 | [1],[2] | $ 39 | [1],[2] | $ 110 | [1],[2] | ||||
Increase (Decrease) in Risk Management Assets and Liabilities | (14) | (18) | ||||||||||
Collateral Already Posted, Aggregate Fair Value | 94 | 137 | 69 | 147 | ||||||||
Price Risk Cash Flow Hedge Unrealized Gain (Loss) to be Reclassified During Next 12 Months | 1 | |||||||||||
Less Than Two Years [Member] | Natural Gas [Member]
|
||||||||||||
Note 4 - Derivative Instruments (Details) [Line Items] | ||||||||||||
Percent Of Derivative Contracts | 98.00% | |||||||||||
ExpiringIn Two To Six Years [Member] | Natural Gas [Member]
|
||||||||||||
Note 4 - Derivative Instruments (Details) [Line Items] | ||||||||||||
Percent Of Derivative Contracts | 2.00% | |||||||||||
Weather Derivatives [Member]
|
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Note 4 - Derivative Instruments (Details) [Line Items] | ||||||||||||
Derivative, Gain (Loss) on Derivative, Net | $ (3) | $ 14 | ||||||||||
Minimum [Member]
|
||||||||||||
Note 4 - Derivative Instruments (Details) [Line Items] | ||||||||||||
Natural Gas Derivative Term | 2 | |||||||||||
Maximum [Member]
|
||||||||||||
Note 4 - Derivative Instruments (Details) [Line Items] | ||||||||||||
Natural Gas Derivative Term | 6 | |||||||||||
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Note 8 - Non-Wholly Owned Entities (Tables)
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Noncontrolling Interest Disclosure [Text Block] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Table Text Block] |
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Schedule of Variable Interest Entities [Table Text Block] |
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Equity Method Investments [Table Text Block] |
|
Note 2 - Significant Accounting Policies and Methods of Application (Details) - Cost Of Goods Sold Adjustments (USD $)
In Millions, unless otherwise specified |
Jun. 30, 2013
|
Jun. 30, 2012
|
---|---|---|
Retail Operations [Member] | Six Months Ended [Member]
|
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Note 2 - Significant Accounting Policies and Methods of Application (Details) - Cost Of Goods Sold Adjustments [Line Items] | ||
LOCOM Adjustments | $ 3 | |
Wholesale Services [Member] | Three Months Ended [Member]
|
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Note 2 - Significant Accounting Policies and Methods of Application (Details) - Cost Of Goods Sold Adjustments [Line Items] | ||
LOCOM Adjustments | 8 | |
Wholesale Services [Member] | Six Months Ended [Member]
|
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Note 2 - Significant Accounting Policies and Methods of Application (Details) - Cost Of Goods Sold Adjustments [Line Items] | ||
LOCOM Adjustments | 8 | 18 |
Midstream Operations [Member] | Six Months Ended [Member]
|
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Note 2 - Significant Accounting Policies and Methods of Application (Details) - Cost Of Goods Sold Adjustments [Line Items] | ||
LOCOM Adjustments | $ 1 |
Note 3 - Fair Value Measurements (Details) (USD $)
In Millions, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
---|---|---|
Fair Value Disclosures [Text Block] | ||
Weather Derivative Premium | $ 1 | $ 4 |
Note 8 - Non-Wholly Owned Entities (Details) - SouthStar’s Revenues and Expenses (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Variable Interest Entity [Line Items] | ||||
Operating revenues | $ 904 | $ 686 | $ 2,613 | $ 2,090 |
Operating expenses | ||||
Cost of goods sold | 407 | 240 | 1,380 | 959 |
Operation and maintenance | 233 | 218 | 492 | 463 |
Depreciation and amortization | 109 | 102 | 216 | 206 |
Taxes other than income taxes | 44 | 32 | 115 | 96 |
Total operating expenses | 793 | 595 | 2,203 | 1,737 |
Operating income | 122 | 91 | 421 | 353 |
South Star [Member]
|
||||
Variable Interest Entity [Line Items] | ||||
Operating revenues | 116 | 99 | 366 | 314 |
Operating expenses | ||||
Cost of goods sold | 95 | 80 | 259 | 213 |
Operation and maintenance | 15 | 12 | 33 | 31 |
Depreciation and amortization | 1 | 1 | 1 | |
Taxes other than income taxes | 1 | 1 | 1 | 2 |
Total operating expenses | 111 | 94 | 294 | 247 |
Operating income | $ 5 | $ 5 | $ 72 | $ 67 |