Delaware | 001-16189 | 35-2108964 | ||
(State or other jurisdiction of incorporation or organization) | Commission file number | (I.R.S. Employer Identification No.) |
801 East 86th Avenue Merrillville, Indiana | 46410 | ||||||
(Address of principal executive offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2 (b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4 (c)) |
ITEM 2.02. | RESULTS OF OPERATIONS AND FINANCIAL CONDITION |
ITEM 9.01. | FINANCIAL STATEMENTS AND EXHIBITS |
(d) | Exhibits |
Exhibit Number | Description | |
99.1 | Press Release, dated October 31, 2013, issued by NiSource Inc. |
NiSource Inc. | ||||
(Registrant) | ||||
Date: October 31, 2013 | By: | /s/ Jon D. Veurink | ||
Jon D. Veurink | ||||
Vice President and Chief Accounting Officer |
Exhibit Number | Description | |
99.1 | Press Release, dated October 31, 2013, issued by NiSource Inc. |
![]() | ![]() | |
801 E. 86th Avenue Merrillville, IN 46410 |
Media | Investors |
Mike Banas | Randy Hulen |
Communications Manager | Managing Director, Investor Relations |
(219) 647-5581 | (219) 647-5688 |
mbanas@nisource.com | rghulen@nisource.com |
• | Results on track with 2013 earnings guidance range |
• | NIPSCO files long-term natural gas modernization program |
• | Continued execution of significant midstream and other infrastructure investments |
• | Columbia Gas Transmission is on track to complete the first year of investments under its system modernization settlement, which became effective earlier this year. As provided in the settlement, the company will make a tracker filing reflecting first-year investments of approximately $300 million with the Federal Energy Regulatory Commission (FERC) by the end of this year. Recovery of 2013 program investments is anticipated to begin in February 2014. The modernization settlement covers the initial five years of a 10-15 year program totaling $4-5 billion. |
• | On September 30, 2013, Pennant Midstream, LLC announced the construction of an approximately $60 million, 38-mile natural gas liquids pipeline in eastern Ohio. The line will connect the Hickory Bend Cryogenic Processing Plant in New Middletown, Ohio, to the UEO Kensington facility near Kensington in Columbiana County. Initial capacity is expected to deliver up to approximately 90,000 barrels a day, starting in the third quarter of 2014. NiSource Midstream Services, LLC operates Pennant Midstream, which is jointly owned by Harvest Pipeline (an affiliate of Hilcorp Energy Company) and NiSource Midstream. NiSource owns a 50 percent interest in Pennant and is responsible for the same portion of the investment. |
• | Pennant Midstream’s Hickory Bend Project remains on schedule, with the majority of the facilities to be operational by the end of this year. The $320 million project involves the construction of approximately 55 miles of 20- and 24-inch gathering pipeline facilities with an initial capacity of 600 million cubic feet per day, and a cryogenic natural gas liquids processing plant with an initial capacity of 200 million cubic feet per day. |
• | Millennium Pipeline is on track with development of an approximately $45 million new compressor facility in Delaware County, New York. The project, which will increase the pipeline’s delivery capacity to 850,000 dekatherms per day, is expected to be in service by April 1, 2014. NiSource owns a 47.5 percent interest in Millennium and is responsible for the same percentage of the investment. |
• | CPG’s core marketing projects include more than $550 million of investments, including the West Side Expansion Project, the East Side Expansion Project and the Warren County Project, among others, remain on track and will add more than 1 billion cubic feet of capacity when completed over the next two years. |
• | In line with legislation passed earlier this year to support a variety of long-term infrastructure investments, NIPSCO filed a seven-year natural gas infrastructure modernization and expansion plan with the Indiana Utility Regulatory Commission (IURC) on October 3, 2013. The legislation provides for the timely recovery of related investments through deferrals and tracking mechanisms. The natural gas plan outlines a program of qualifying system modernization projects, with anticipated investment opportunities of approximately $700 million. NIPSCO’s seven-year electric infrastructure modernization plan, filed in July with outlined investments of approximately $1 billion, remains under review by the IURC. The company anticipates making its initial electric and natural gas investments in early-to-mid 2014. |
• | NIPSCO extended its 2010 natural gas customer rate settlement through 2020 following the August 28 IURC approval of an agreement reached earlier this year with the Indiana Office of Utility Consumer Counselor and other key customer stakeholders. |
• | Work continues on NIPSCO’s two electric transmission projects in northern Indiana, which support new jobs, enhance system reliability and offer environmental benefits. For the first project, called Reynolds-Topeka, NIPSCO recently selected the route and is in discussions with landowners and communities along the line’s path. Together the projects will involve an investment by NIPSCO of approximately $500 million. |
• | NIPSCO also is executing on an approximately $250 million flue gas desulfurization (FGD) project at NIPSCO’s Michigan City generating station. The project, scheduled for completion by the end of 2015, follows the approximately $500 million FGD project at NIPSCO’s Schahfer generating station, which will be placed into service in the fourth quarter of this year and in late 2014. All FGD projects remain on schedule and are on budget. |
• | Also on the environmental front, on October 10, 2013, the IURC issued an order approving NIPSCO's capital projects and associated cost recovery for investments to support compliance with the Environmental Protection Agency’s Mercury and Air Toxics Standards (MATS) rule. The investments are expected to reach approximately $60 million over the next three years. |
• | NGD’s capital program, including infrastructure replacement and enhancement initiatives, is on track to achieve a record investment level of approximately $765 million in 2013. This investment supports the company’s commitment to delivering safe, reliable |
• | Progress continues on a Columbia Gas of Kentucky base rate case filed in May with the Kentucky Public Service Commission. The case seeks an annual revenue increase of $16.6 million. It also supports the company’s ongoing infrastructure investment plans. A decision is expected with rates in effect by early 2014. |
• | Columbia Gas of Massachusetts’ base rate case remains on schedule with the Massachusetts Department of Public Utilities. The case, which seeks increased annual revenues of approximately $30 million, is designed to support the company's expanded infrastructure modernization and replacement plans with investment recovery. A decision is expected with rates in effect by March 2014. |
• | On September 23, 2013, Columbia Gas of Maryland received a final order from the Maryland Public Service Commission on its base rate case. In addition to implementing a revenue normalization adjustment mechanism for residential customers, the order approved an annual revenue increase of $3.6 million. Rates went into effect September 25, 2013. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(in millions, except per share amounts) | 2013 | 2012 | 2013 | 2012 | |||||||||||
Net Revenues | |||||||||||||||
Gas Distribution | $ | 255.3 | $ | 225.8 | $ | 1,541.8 | $ | 1,424.2 | |||||||
Gas Transportation and Storage | 350.1 | 278.2 | 1,185.1 | 1,043.7 | |||||||||||
Electric | 416.4 | 412.1 | 1,177.0 | 1,136.5 | |||||||||||
Other | 61.2 | 33.5 | 162.8 | 63.2 | |||||||||||
Gross Revenues | 1,083.0 | 949.6 | 4,066.7 | 3,667.6 | |||||||||||
Cost of Sales (excluding depreciation and amortization) | 243.2 | 227.3 | 1,268.4 | 1,090.3 | |||||||||||
Total Net Revenues | 839.8 | 722.3 | 2,798.3 | 2,577.3 | |||||||||||
Operating Expenses | |||||||||||||||
Operation and maintenance | 387.4 | 366.5 | 1,125.7 | 1,070.2 | |||||||||||
Operation and maintenance - trackers | 81.5 | 52.3 | 249.9 | 141.1 | |||||||||||
Depreciation and amortization | 144.5 | 121.7 | 427.7 | 408.2 | |||||||||||
Depreciation and amortization - trackers | — | 3.5 | 3.7 | 9.7 | |||||||||||
Gain on sale of storage base gas | (11.1 | ) | — | (11.1 | ) | — | |||||||||
Other taxes | 56.1 | 54.2 | 175.4 | 165.3 | |||||||||||
Other taxes - trackers | 8.2 | 7.9 | 46.3 | 49.9 | |||||||||||
Total Operating Expenses | 666.6 | 606.1 | 2,017.6 | 1,844.4 | |||||||||||
Equity Earnings in Unconsolidated Affiliates | 10.5 | 8.0 | 25.6 | 24.2 | |||||||||||
Operating Earnings | 183.7 | 124.2 | 806.3 | 757.1 | |||||||||||
Other Income (Deductions) | |||||||||||||||
Interest expense, net | (103.7 | ) | (107.9 | ) | (304.3 | ) | (314.4 | ) | |||||||
Other, net | 4.7 | 2.2 | 22.1 | 6.0 | |||||||||||
Total Other Deductions | (99.0 | ) | (105.7 | ) | (282.2 | ) | (308.4 | ) | |||||||
Operating Earnings From Continuing Operations | |||||||||||||||
Before Income Taxes | 84.7 | 18.5 | 524.1 | 448.7 | |||||||||||
Income Taxes | 27.6 | 6.3 | 178.9 | 158.5 | |||||||||||
Net Operating Earnings from Continuing Operations | 57.1 | 12.2 | 345.2 | 290.2 | |||||||||||
GAAP Adjustment | (7.6 | ) | 4.4 | (7.3 | ) | (13.5 | ) | ||||||||
GAAP Income from Continuing Operations | $ | 49.5 | $ | 16.6 | $ | 337.9 | $ | 276.7 | |||||||
Basic Net Operating Earnings Per Share from Continuing Operations | $ | 0.18 | $ | 0.04 | $ | 1.11 | $ | 1.02 | |||||||
GAAP Basic Earnings Per Share from Continuing Operations | $ | 0.16 | $ | 0.05 | $ | 1.08 | $ | 0.97 | |||||||
Basic Average Common Shares Outstanding | 312.8 | 290.3 | 312.1 | 285.9 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
Gas Distribution Operations | |||||||||||||||
(in millions) | 2013 | 2012 | 2013 | 2012 | |||||||||||
Net Revenues | |||||||||||||||
Sales revenues | $ | 412.8 | $ | 378.4 | $ | 2,131.4 | $ | 1,924.7 | |||||||
Less: Cost of gas sold | 131.8 | 116.6 | 964.7 | 810.8 | |||||||||||
Net Revenues | 281.0 | 261.8 | 1,166.7 | 1,113.9 | |||||||||||
Operating Expenses | |||||||||||||||
Operation and maintenance | 184.9 | 167.5 | 546.2 | 501.7 | |||||||||||
Operation and maintenance - trackers | 14.2 | 7.3 | 68.4 | 50.8 | |||||||||||
Depreciation and amortization | 51.1 | 47.8 | 149.7 | 141.2 | |||||||||||
Other taxes | 23.1 | 21.6 | 71.5 | 65.4 | |||||||||||
Other taxes - trackers | 8.2 | 7.9 | 46.3 | 49.9 | |||||||||||
Total Operating Expenses | 281.5 | 252.1 | 882.1 | 809.0 | |||||||||||
Operating (Loss) Earnings | $ | (0.5 | ) | $ | 9.7 | $ | 284.6 | $ | 304.9 | ||||||
GAAP Adjustment | (4.5 | ) | 0.7 | (5.5 | ) | (41.5 | ) | ||||||||
GAAP Operating (Loss) Income | $ | (5.0 | ) | $ | 10.4 | $ | 279.1 | $ | 263.4 | ||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
Columbia Pipeline Group Operations | |||||||||||||||
(in millions) | 2013 | 2012 | 2013 | 2012 | |||||||||||
Net Revenues | |||||||||||||||
Transportation revenues | $ | 176.4 | $ | 109.3 | $ | 558.9 | $ | 506.9 | |||||||
Storage revenues | 48.6 | 49.2 | 147.8 | 147.2 | |||||||||||
Other revenues | 57.7 | 29.6 | 151.2 | 50.4 | |||||||||||
Total Operating Revenues | 282.7 | 188.1 | 857.9 | 704.5 | |||||||||||
Less: Cost of Sales | 0.1 | — | 0.3 | 1.0 | |||||||||||
Net Revenues | 282.6 | 188.1 | 857.6 | 703.5 | |||||||||||
Operating Expenses | |||||||||||||||
Operation and maintenance | 97.9 | 94.5 | 272.4 | 262.1 | |||||||||||
Operation and maintenance - trackers | 67.3 | 40.6 | 175.6 | 78.6 | |||||||||||
Depreciation and amortization | 26.7 | 8.2 | 78.9 | 74.2 | |||||||||||
Gain on sale of storage base gas | (11.1 | ) | — | (11.1 | ) | — | |||||||||
Other taxes | 13.6 | 14.0 | 46.6 | 43.8 | |||||||||||
Total Operating Expenses | 194.4 | 157.3 | 562.4 | 458.7 | |||||||||||
Equity Earnings in Unconsolidated Affiliates | 10.5 | 8.0 | 25.6 | 24.2 | |||||||||||
Operating Earnings | $ | 98.7 | $ | 38.8 | $ | 320.8 | $ | 269.0 | |||||||
GAAP Adjustment | — | — | 0.2 | (0.1 | ) | ||||||||||
GAAP Operating Income | $ | 98.7 | $ | 38.8 | $ | 321.0 | $ | 268.9 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
Electric Operations | |||||||||||||||
(in millions) | 2013 | 2012 | 2013 | 2012 | |||||||||||
Net Revenues | |||||||||||||||
Sales revenues | $ | 416.8 | $ | 412.6 | $ | 1,178.2 | $ | 1,137.8 | |||||||
Less: Cost of sales | 142.2 | 141.7 | 408.4 | 382.5 | |||||||||||
Net Revenues | 274.6 | 270.9 | 769.8 | 755.3 | |||||||||||
Operating Expenses | |||||||||||||||
Operation and maintenance | 107.1 | 108.9 | 317.8 | 324.4 | |||||||||||
Operation and maintenance - trackers | — | 4.4 | 5.9 | 11.7 | |||||||||||
Depreciation and amortization | 60.6 | 60.2 | 180.5 | 176.5 | |||||||||||
Depreciation and amortization - trackers | — | 3.5 | 3.7 | 9.7 | |||||||||||
Other taxes | 16.4 | 16.1 | 47.9 | 47.0 | |||||||||||
Total Operating Expenses | 184.1 | 193.1 | 555.8 | 569.3 | |||||||||||
Operating Earnings | $ | 90.5 | $ | 77.8 | $ | 214.0 | $ | 186.0 | |||||||
GAAP Adjustment | (3.0 | ) | 5.9 | (1.8 | ) | 14.2 | |||||||||
GAAP Operating Income | $ | 87.5 | $ | 83.7 | $ | 212.2 | $ | 200.2 | |||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
Corporate and Other Operations | |||||||||||||||
(in millions) | 2013 | 2012 | 2013 | 2012 | |||||||||||
Operating (Loss) Earnings | $ | (5.0 | ) | $ | (2.1 | ) | $ | (13.1 | ) | $ | (2.8 | ) | |||
GAAP Adjustment | 0.2 | 0.7 | 0.1 | 3.8 | |||||||||||
GAAP Operating (Loss) Income | $ | (4.8 | ) | $ | (1.4 | ) | $ | (13.0 | ) | $ | 1.0 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
Gas Distribution Operations | 2013 | 2012 | 2013 | 2012 | |||||||
Sales and Transportation (MMDth) | |||||||||||
Residential | 15.2 | 15.4 | 182.0 | 146.6 | |||||||
Commercial | 16.2 | 19.7 | 118.5 | 106.1 | |||||||
Industrial | 120.7 | 119.2 | 367.4 | 364.6 | |||||||
Off System | 15.6 | 16.0 | 55.7 | 46.7 | |||||||
Other | — | — | 0.4 | 0.2 | |||||||
Total | 167.7 | 170.3 | 724.0 | 664.2 | |||||||
Weather Adjustment | (0.1) | (0.8) | 0.6 | 52.2 | |||||||
Sales and Transportation Volumes - Excluding Weather | 167.6 | 169.5 | 724.6 | 716.4 | |||||||
Heating Degree Days | 94 | 123 | 3,576 | 2,859 | |||||||
Normal Heating Degree Days | 85 | 88 | 3,576 | 3,627 | |||||||
% Colder (Warmer) than Normal | 11 | % | 40 | % | — | % | (21 | )% | |||
Customers | |||||||||||
Residential | 3,022,289 | 3,006,298 | |||||||||
Commercial | 276,219 | 275,356 | |||||||||
Industrial | 7,488 | 7,706 | |||||||||
Other | 22 | 22 | |||||||||
Total | 3,306,018 | 3,289,382 | |||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
Columbia Pipeline Group Operations | 2013 | 2012 | 2013 | 2012 | |||||||
Throughput (MMDth) | |||||||||||
Columbia Transmission | 158.4 | 189.1 | 790.8 | 778.9 | |||||||
Columbia Gulf | 134.0 | 205.9 | 494.0 | 669.8 | |||||||
Crossroads Pipeline | 4.1 | 3.3 | 12.4 | 11.7 | |||||||
Intrasegment eliminations | (36.5) | (86.1) | (211.8) | (314.6) | |||||||
Total | 260.0 | 312.2 | 1,085.4 | 1,145.8 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
Electric Operations | 2013 | 2012 | 2013 | 2012 | |||||||
Sales (Gigawatt Hours) | |||||||||||
Residential | 1,000.5 | 1,118.7 | 2,633.7 | 2,761.1 | |||||||
Commercial | 1,066.1 | 1,071.1 | 2,929.9 | 2,955.3 | |||||||
Industrial | 2,337.2 | 2,247.9 | 6,913.1 | 6,964.9 | |||||||
Wholesale | 108.6 | 157.9 | 664.6 | 233.0 | |||||||
Other | 31.3 | 26.7 | 91.5 | 85.1 | |||||||
Total | 4,543.7 | 4,622.3 | 13,232.8 | 12,999.4 | |||||||
Weather Adjustment | 44.0 | (87.5) | 26.4 | (160.7) | |||||||
Sales Volumes - Excluding Weather impacts | 4,587.7 | 4,534.8 | 13,259.2 | 12,838.7 | |||||||
Cooling Degree Days | 531 | 674 | 781 | 1,051 | |||||||
Normal Cooling Degree Days | 570 | 578 | 799 | 808 | |||||||
% (Colder) Warmer than Normal | (7 | )% | 17 | % | (2 | )% | 30 | % | |||
Electric Customers | |||||||||||
Residential | 401,174 | 400,158 | |||||||||
Commercial | 54,267 | 53,884 | |||||||||
Industrial | 2,371 | 2,441 | |||||||||
Wholesale | 728 | 715 | |||||||||
Other | 6 | 6 | |||||||||
Total | 458,546 | 457,204 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(in millions, except per share amounts) | 2013 | 2012 | 2013 | 2012 | |||||||||||
Net Operating Earnings from Continuing Operations (Non-GAAP) | $ | 57.1 | $ | 12.2 | $ | 345.2 | $ | 290.2 | |||||||
Items excluded from operating earnings | |||||||||||||||
Net Revenues: | |||||||||||||||
Weather - compared to normal | (3.0 | ) | 6.6 | (2.9 | ) | (30.4 | ) | ||||||||
Settlement Agreement | (3.2 | ) | — | (3.2 | ) | — | |||||||||
Operating Expenses: | |||||||||||||||
Legal reserve adjustment | — | — | — | 3.1 | |||||||||||
(Loss) Gain on sale of assets and asset impairments | (1.1 | ) | 0.7 | (0.9 | ) | 3.7 | |||||||||
Total items excluded from operating earnings | (7.3 | ) | 7.3 | (7.0 | ) | (23.6 | ) | ||||||||
Other Deductions: | |||||||||||||||
Investment impairment | — | — | — | (0.7 | ) | ||||||||||
Tax effect of above items | 2.8 | (2.9 | ) | 2.8 | 10.8 | ||||||||||
Income taxes - rate changes | (3.1 | ) | — | (3.1 | ) | — | |||||||||
Total items excluded from net operating earnings | (7.6 | ) | 4.4 | (7.3 | ) | (13.5 | ) | ||||||||
Reported Income from Continuing Operations - GAAP | $ | 49.5 | $ | 16.6 | $ | 337.9 | $ | 276.7 | |||||||
Basic Average Common Shares Outstanding | 312.8 | 290.3 | 312.1 | 285.9 | |||||||||||
Basic Net Operating Earnings Per Share from Continuing Operations | $ | 0.18 | $ | 0.04 | $ | 1.11 | $ | 1.02 | |||||||
Items excluded from net operating earnings (after-tax) | (0.02 | ) | 0.01 | (0.03 | ) | (0.05 | ) | ||||||||
GAAP Basic Earnings Per Share from Continuing Operations | $ | 0.16 | $ | 0.05 | $ | 1.08 | $ | 0.97 |
2013 (in millions) | Gas Distribution | Columbia Pipeline Group | Electric | Corporate & Other | Total | |||||||||||||||
Operating Earnings (Loss) | $ | (0.5 | ) | $ | 98.7 | $ | 90.5 | $ | (5.0 | ) | $ | 183.7 | ||||||||
Net Revenues: | ||||||||||||||||||||
Weather - compared to normal | — | — | (3.0 | ) | — | (3.0 | ) | |||||||||||||
Settlement Agreement | (3.2 | ) | — | — | — | (3.2 | ) | |||||||||||||
Total Impact - Net Revenues | (3.2 | ) | — | (3.0 | ) | — | (6.2 | ) | ||||||||||||
Operating Expenses: | ||||||||||||||||||||
(Loss) Gain on sale of assets and asset impairments | (1.3 | ) | — | — | 0.2 | (1.1 | ) | |||||||||||||
Total Impact - Operating Expenses | (1.3 | ) | — | — | 0.2 | (1.1 | ) | |||||||||||||
Total Impact - Operating (Loss) Income | $ | (4.5 | ) | $ | — | $ | (3.0 | ) | $ | 0.2 | $ | (7.3 | ) | |||||||
Operating (Loss) Income - GAAP | $ | (5.0 | ) | $ | 98.7 | $ | 87.5 | $ | (4.8 | ) | $ | 176.4 | ||||||||
2012 (in millions) | Gas Distribution | Columbia Pipeline Group | Electric | Corporate & Other | Total | |||||||||||||||
Operating Earnings (Loss) | $ | 9.7 | $ | 38.8 | $ | 77.8 | $ | (2.1 | ) | $ | 124.2 | |||||||||
Net Revenues: | ||||||||||||||||||||
Weather - compared to normal | 0.7 | — | 5.9 | — | 6.6 | |||||||||||||||
Total Impact - Net Revenues | 0.7 | — | 5.9 | — | 6.6 | |||||||||||||||
Operating Expenses: | ||||||||||||||||||||
Gain on sale of assets and asset impairments | — | — | — | 0.7 | 0.7 | |||||||||||||||
Total Impact - Operating Expenses | — | — | — | 0.7 | 0.7 | |||||||||||||||
Total Impact - Operating Income | $ | 0.7 | $ | — | $ | 5.9 | $ | 0.7 | $ | 7.3 | ||||||||||
Operating Income (Loss) - GAAP | $ | 10.4 | $ | 38.8 | $ | 83.7 | $ | (1.4 | ) | $ | 131.5 |
2013 (in millions) | Gas Distribution | Columbia Pipeline Group | Electric | Corporate & Other | Total | |||||||||||||||
Operating Earnings (Loss) | $ | 284.6 | $ | 320.8 | $ | 214.0 | $ | (13.1 | ) | $ | 806.3 | |||||||||
Net Revenues: | ||||||||||||||||||||
Weather - compared to normal | (1.1 | ) | — | (1.8 | ) | — | (2.9 | ) | ||||||||||||
Settlement Agreement | (3.2 | ) | — | — | — | (3.2 | ) | |||||||||||||
Total Impact - Net Revenues | (4.3 | ) | — | (1.8 | ) | — | (6.1 | ) | ||||||||||||
Operating Expenses: | ||||||||||||||||||||
(Loss) Gain on sale of assets and asset impairments | (1.2 | ) | 0.2 | — | 0.1 | (0.9 | ) | |||||||||||||
Total Impact - Operating Expenses | (1.2 | ) | 0.2 | — | 0.1 | (0.9 | ) | |||||||||||||
Total Impact - Operating (Loss) Income | $ | (5.5 | ) | $ | 0.2 | $ | (1.8 | ) | $ | 0.1 | $ | (7.0 | ) | |||||||
Operating Income (Loss) - GAAP | $ | 279.1 | $ | 321.0 | $ | 212.2 | $ | (13.0 | ) | $ | 799.3 | |||||||||
2012 (in millions) | Gas Distribution | Columbia Pipeline Group | Electric | Corporate & Other | Total | |||||||||||||||
Operating Earnings (Loss) | $ | 304.9 | $ | 269.0 | $ | 186.0 | $ | (2.8 | ) | $ | 757.1 | |||||||||
Net Revenues: | ||||||||||||||||||||
Weather - compared to normal | (41.5 | ) | — | 11.1 | — | (30.4 | ) | |||||||||||||
Total Impact - Net Revenues | (41.5 | ) | — | 11.1 | — | (30.4 | ) | |||||||||||||
Operating Expenses: | ||||||||||||||||||||
Legal reserve adjustment | — | — | 3.1 | — | 3.1 | |||||||||||||||
(Loss) Gain on sale of assets and asset impairments | — | (0.1 | ) | — | 3.8 | 3.7 | ||||||||||||||
Total Impact - Operating Expenses | — | (0.1 | ) | 3.1 | 3.8 | 6.8 | ||||||||||||||
Total Impact - Operating (Loss) Income | $ | (41.5 | ) | $ | (0.1 | ) | $ | 14.2 | $ | 3.8 | $ | (23.6 | ) | |||||||
Operating Income - GAAP | $ | 263.4 | $ | 268.9 | $ | 200.2 | $ | 1.0 | $ | 733.5 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(in millions, except per share amounts) | 2013 | 2012 | 2013 | 2012 | |||||||||||
Net Revenues | |||||||||||||||
Gas Distribution | $ | 255.1 | $ | 226.3 | $ | 1,540.6 | $ | 1,382.6 | |||||||
Gas Transportation and Storage | 346.9 | 278.3 | 1,181.9 | 1,043.7 | |||||||||||
Electric | 413.4 | 418.0 | 1,175.2 | 1,147.7 | |||||||||||
Other | 61.4 | 33.6 | 162.8 | 63.3 | |||||||||||
Gross Revenues | 1,076.8 | 956.2 | 4,060.5 | 3,637.3 | |||||||||||
Cost of Sales (excluding depreciation and amortization) | 243.0 | 227.2 | 1,268.3 | 1,090.3 | |||||||||||
Total Net Revenues | 833.8 | 729.0 | 2,792.2 | 2,547.0 | |||||||||||
Operating Expenses | |||||||||||||||
Operation and maintenance | 468.9 | 418.6 | 1,375.6 | 1,208.2 | |||||||||||
Depreciation and amortization | 144.5 | 125.3 | 431.4 | 418.0 | |||||||||||
Gain on sale of assets, net | (9.8 | ) | (0.7 | ) | (10.2 | ) | (3.8 | ) | |||||||
Other taxes | 64.3 | 62.3 | 221.7 | 215.3 | |||||||||||
Total Operating Expenses | 667.9 | 605.5 | 2,018.5 | 1,837.7 | |||||||||||
Equity Earnings in Unconsolidated Affiliates | 10.5 | 8.0 | 25.6 | 24.2 | |||||||||||
Operating Income | 176.4 | 131.5 | 799.3 | 733.5 | |||||||||||
Other Income (Deductions) | |||||||||||||||
Interest expense, net | (103.7 | ) | (107.9 | ) | (304.3 | ) | (314.4 | ) | |||||||
Other, net | 4.7 | 2.2 | 22.1 | 5.3 | |||||||||||
Total Other Deductions | (99.0 | ) | (105.7 | ) | (282.2 | ) | (309.1 | ) | |||||||
Income from Continuing Operations before Income Taxes | 77.4 | 25.8 | 517.1 | 424.4 | |||||||||||
Income Taxes | 27.9 | 9.2 | 179.2 | 147.7 | |||||||||||
Income from Continuing Operations | 49.5 | 16.6 | 337.9 | 276.7 | |||||||||||
Income from Discontinued Operations - net of taxes | 0.1 | 2.7 | 7.5 | 5.4 | |||||||||||
(Loss) Gain on Disposition of Discontinued Operations - net of taxes | (1.5 | ) | — | 34.9 | — | ||||||||||
Net Income | $ | 48.1 | $ | 19.3 | $ | 380.3 | $ | 282.1 | |||||||
Basic Earnings Per Share | |||||||||||||||
Continuing operations | $ | 0.16 | $ | 0.05 | $ | 1.08 | $ | 0.97 | |||||||
Discontinued operations | — | 0.01 | 0.14 | 0.02 | |||||||||||
Basic Earnings Per Share | $ | 0.16 | $ | 0.06 | $ | 1.22 | $ | 0.99 | |||||||
Diluted Earnings Per Share | |||||||||||||||
Continuing operations | $ | 0.16 | $ | 0.05 | $ | 1.08 | $ | 0.93 | |||||||
Discontinued operations | — | 0.01 | 0.14 | 0.02 | |||||||||||
Diluted Earnings Per Share | $ | 0.16 | $ | 0.06 | $ | 1.22 | $ | 0.95 | |||||||
Dividends Declared Per Common Share | $ | 0.25 | $ | 0.24 | $ | 0.98 | $ | 0.94 | |||||||
Basic Average Common Shares Outstanding | 312.8 | 290.3 | 312.1 | 285.9 | |||||||||||
Diluted Average Common Shares | 313.8 | 300.0 | 313.0 | 296.7 |
(in millions) | September 30, 2013 | December 31, 2012 | |||||
ASSETS | |||||||
Property, Plant and Equipment | |||||||
Utility plant | $ | 22,869.7 | $ | 21,642.3 | |||
Accumulated depreciation and amortization | (9,258.6 | ) | (8,986.4 | ) | |||
Net utility plant | 13,611.1 | 12,655.9 | |||||
Other property, at cost, less accumulated depreciation | 301.3 | 260.0 | |||||
Net Property, Plant and Equipment | 13,912.4 | 12,915.9 | |||||
Investments and Other Assets | |||||||
Unconsolidated affiliates | 327.8 | 243.3 | |||||
Other investments | 201.6 | 194.4 | |||||
Total Investments and Other Assets | 529.4 | 437.7 | |||||
Current Assets | |||||||
Cash and cash equivalents | 14.9 | 36.3 | |||||
Restricted cash | 18.3 | 46.8 | |||||
Accounts receivable (less reserve of $20.2 and $24.0, respectively) | 591.0 | 907.3 | |||||
Income tax receivable | 6.4 | 130.9 | |||||
Gas inventory | 454.8 | 326.6 | |||||
Underrecovered gas and fuel costs | 16.4 | 45.0 | |||||
Materials and supplies, at average cost | 99.9 | 97.4 | |||||
Electric production fuel, at average cost | 39.8 | 71.7 | |||||
Price risk management assets | 21.1 | 0.5 | |||||
Exchange gas receivable | 84.3 | 51.3 | |||||
Assets of discontinued operations and assets held for sale | — | 133.9 | |||||
Regulatory assets | 152.5 | 162.8 | |||||
Prepayments and other | 246.1 | 357.2 | |||||
Total Current Assets | 1,745.5 | 2,367.7 | |||||
Other Assets | |||||||
Price risk management assets | — | 40.7 | |||||
Regulatory assets | 1,863.2 | 2,024.4 | |||||
Goodwill | 3,666.2 | 3,677.3 | |||||
Intangible assets | 278.4 | 286.6 | |||||
Deferred charges and other | 89.0 | 94.4 | |||||
Total Other Assets | 5,896.8 | 6,123.4 | |||||
Total Assets | $ | 22,084.1 | $ | 21,844.7 |
(in millions, except share amounts) | September 30, 2013 | December 31, 2012 | |||||
CAPITALIZATION AND LIABILITIES | |||||||
Capitalization | |||||||
Common Stockholders’ Equity | |||||||
Common stock - $0.01 par value, 400,000,000 shares authorized; 313,135,192 and 310,280,867 shares outstanding, respectively | $ | 3.2 | $ | 3.1 | |||
Additional paid-in capital | 4,672.9 | 4,597.6 | |||||
Retained earnings | 1,133.8 | 1,059.6 | |||||
Accumulated other comprehensive loss | (60.4 | ) | (65.5 | ) | |||
Treasury stock | (48.6 | ) | (40.5 | ) | |||
Total Common Stockholders’ Equity | 5,700.9 | 5,554.3 | |||||
Long-term debt, excluding amounts due within one year | 7,089.1 | 6,819.1 | |||||
Total Capitalization | 12,790.0 | 12,373.4 | |||||
Current Liabilities | |||||||
Current portion of long-term debt | 541.2 | 507.2 | |||||
Short-term borrowings | 820.8 | 776.9 | |||||
Accounts payable | 369.6 | 538.9 | |||||
Dividends payable | 78.3 | — | |||||
Customer deposits and credits | 249.2 | 269.6 | |||||
Taxes accrued | 181.3 | 235.5 | |||||
Interest accrued | 71.6 | 133.7 | |||||
Overrecovered gas and fuel costs | 31.7 | 22.1 | |||||
Price risk management liabilities | 8.8 | 8.2 | |||||
Exchange gas payable | 207.3 | 146.2 | |||||
Deferred revenue | 21.3 | 42.8 | |||||
Regulatory liabilities | 75.5 | 171.6 | |||||
Accrued liability for postretirement and postemployment benefits | 6.1 | 6.1 | |||||
Liabilities of discontinued operations and liabilities held for sale | — | 108.6 | |||||
Legal and environmental reserves | 34.2 | 42.2 | |||||
Other accruals | 308.7 | 309.7 | |||||
Total Current Liabilities | 3,005.6 | 3,319.3 | |||||
Other Liabilities and Deferred Credits | |||||||
Price risk management liabilities | 1.5 | 2.6 | |||||
Deferred income taxes | 3,133.5 | 2,953.3 | |||||
Deferred investment tax credits | 21.9 | 24.8 | |||||
Deferred credits | 94.9 | 84.1 | |||||
Noncurrent deferred revenue | 23.1 | — | |||||
Accrued liability for postretirement and postemployment benefits | 1,003.1 | 1,107.3 | |||||
Regulatory liabilities and other removal costs | 1,615.9 | 1,593.3 | |||||
Asset retirement obligations | 175.5 | 160.4 | |||||
Other noncurrent liabilities | 219.1 | 226.2 | |||||
Total Other Liabilities and Deferred Credits | 6,288.5 | 6,152.0 | |||||
Commitments and Contingencies | — | — | |||||
Total Capitalization and Liabilities | $ | 22,084.1 | $ | 21,844.7 |
Nine Months Ended September 30, (in millions) | 2013 | 2012 | |||||
Operating Activities | |||||||
Net Income | $ | 380.3 | $ | 282.1 | |||
Adjustments to Reconcile Net Income to Net Cash from Continuing Operations: | |||||||
Depreciation and amortization | 431.4 | 418.0 | |||||
Net changes in price risk management assets and liabilities | 1.9 | 1.2 | |||||
Deferred income taxes and investment tax credits | 199.1 | 132.8 | |||||
Deferred revenue | 1.6 | (0.7 | ) | ||||
Stock compensation expense and 401(k) profit sharing contribution | 39.7 | 33.0 | |||||
Gain on sale of assets | (10.2 | ) | (3.8 | ) | |||
Income from unconsolidated affiliates | (25.5 | ) | (22.9 | ) | |||
Gain on disposition of discontinued operations - net of tax | (34.9 | ) | — | ||||
Income from discontinued operations - net of taxes | (7.5 | ) | (5.4 | ) | |||
Amortization of debt related costs | 7.0 | 7.3 | |||||
AFUDC equity | (12.7 | ) | (4.7 | ) | |||
Distributions of earnings received from equity investees | 19.0 | 25.1 | |||||
Changes in Assets and Liabilities: | |||||||
Accounts receivable | 318.4 | 333.9 | |||||
Income tax receivable | 124.6 | (55.1 | ) | ||||
Inventories | (103.7 | ) | 19.6 | ||||
Accounts payable | (177.7 | ) | (151.0 | ) | |||
Customer deposits and credits | (20.4 | ) | (50.0 | ) | |||
Taxes accrued | (68.0 | ) | (41.3 | ) | |||
Interest accrued | (62.1 | ) | (29.0 | ) | |||
Over(Under)recovered gas and fuel costs | 38.1 | (9.1 | ) | ||||
Exchange gas receivable/payable | 28.1 | (10.2 | ) | ||||
Other accruals | (36.5 | ) | (90.9 | ) | |||
Prepayments and other current assets | 45.5 | 48.3 | |||||
Regulatory assets/liabilities | 71.5 | 96.3 | |||||
Postretirement and postemployment benefits | (95.9 | ) | (11.6 | ) | |||
Deferred credits | 11.1 | 7.6 | |||||
Deferred charges and other noncurrent assets | 11.8 | 28.1 | |||||
Other noncurrent liabilities | (6.3 | ) | 4.1 | ||||
Net Operating Activities from Continuing Operations | 1,067.7 | 951.7 | |||||
Net Operating Activities from (used for) Discontinued Operations | 10.9 | (9.9 | ) | ||||
Net Cash Flows from Operating Activities | 1,078.6 | 941.8 | |||||
Investing Activities | |||||||
Capital expenditures | (1,297.3 | ) | (1,022.2 | ) | |||
Insurance recoveries | 6.4 | 3.0 | |||||
Proceeds from disposition of assets | 17.9 | 23.6 | |||||
Restricted cash withdrawals | 28.5 | 95.8 | |||||
Contributions to equity investees | (77.1 | ) | (11.3 | ) | |||
Other investing activities | (48.4 | ) | (38.1 | ) | |||
Net Investing Activities used for Continuing Operations | (1,370.0 | ) | (949.2 | ) | |||
Net Investing Activities from (used for) Discontinued Operations | 118.7 | (2.1 | ) | ||||
Net Cash Flows used for Investing Activities | (1,251.3 | ) | (951.3 | ) | |||
Financing Activities | |||||||
Issuance of long-term debt | 815.3 | 991.4 | |||||
Repayments of long-term debt and capital lease obligations | (505.2 | ) | (11.6 | ) | |||
Premiums and other debt related costs | (3.2 | ) | (3.4 | ) | |||
Change in short-term borrowings, net | 43.9 | (1,133.7 | ) | ||||
Issuance of common stock | 36.1 | 376.4 | |||||
Acquisition of treasury stock | (8.0 | ) | (10.0 | ) | |||
Dividends paid - common stock | (227.6 | ) | (198.8 | ) | |||
Net Cash Flows from Financing Activities | 151.3 | 10.3 | |||||
Change in cash and cash equivalents (used for) from continuing operations | (151.0 | ) | 12.8 | ||||
Cash contributions from (to) discontinued operations | 129.6 | (12.0 | ) | ||||
Cash and cash equivalents at beginning of period | 36.3 | 11.5 | |||||
Cash and Cash Equivalents at End of Period | $ | 14.9 | $ | 12.3 |