EX-99.1 2 ogsq22015earningsrelease.htm OGS Q2 EARNINGS NEWS RELEASE OGS Q2 2015 Earnings Release
Exhibit 99.1


July 29, 2015
 
Analyst Contact:
Andrew Ziola
918-947-7163
 
 
Media Contact:
Jennifer Rector
918-947-7571

ONE Gas Announces Second-quarter 2015 Financial Results
Affirms 2015 Financial Guidance

TULSA, Okla. - July 29, 2015 - ONE Gas, Inc. (NYSE: OGS) today announced financial results for its second quarter 2015 and affirmed its full-year 2015 guidance.

Highlights include:

Second-quarter 2015 net income was $12.1 million, or $0.23 per diluted share, compared with $9.5 million, or $0.18 per diluted share, in the second quarter 2014;
Actual heating degree days across the company’s service areas were 487 in the second quarter 2015, 26 percent warmer than normal and 30 percent warmer than the same period last year;
A quarterly dividend of 30 cents per share, or $1.20 per share on an annualized basis, was declared on July 20, 2015, payable on Sept. 1, 2015, to shareholders of record at the close of business on Aug. 14, 2015; and
In July 2015, Oklahoma Natural Gas filed a request with the Oklahoma Corporation Commission (OCC) for an increase in base rates, reflecting system investments and operating costs necessary to maintain the safety and reliability of its natural gas distribution system.

"Our second quarter results were supported by lower operating costs and new rates from pipeline system integrity investments, which were partially offset by the impact of warmer-than-normal weather, said Pierce H. Norton II, president and chief executive officer. I would like to thank our employees for their continued focus and commitment to serving our customers safely and reliably while efficiently managing expenses."

SECOND-QUARTER 2015 FINANCIAL PERFORMANCE

ONE Gas reported operating income of $31.3 million in the second quarter 2015, compared with $26.8 million in the second quarter 2014.

Net margin increased by $0.3 million compared with second quarter 2014, which primarily reflects:





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ONE Gas Announces Second-quarter 2015 Financial Results;
Affirms 2015 Financial Guidance

July 29, 2015

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A $6.1 million increase from new rates primarily in Oklahoma and Texas;
A $1.3 million increase attributed to residential customer growth primarily in Oklahoma;
A $2.7 million decrease due to lower sales volumes, net of weather normalization, primarily from warmer weather in the second quarter 2015 compared with the second quarter 2014;
A $2.2 million decrease in line extension revenue, from commercial and industrial customers, and other revenues; and
A $1.6 million decrease due primarily to lower volumes from weather-sensitive transportation customers in Kansas.

Second-quarter 2015 operating costs were $112.5 million, compared with $118.4 million in the second quarter 2014, which primarily reflects:

A $4.3 million decrease in outside service expenses, which includes $2.7 million of lower costs associated with contractor pipeline maintenance activities and $1.3 million of costs associated with the separation from ONEOK, Inc. (NYSE: OKE);
A $1.6 million decrease in bad debt expense due primarily to warmer weather in Kansas;
A $1.2 million decrease in legal costs;
A $1.2 million decrease in ad valorem taxes;
A $0.9 million increase in employee-related expenses; and
A $0.9 million increase in information technology expenses.

Second-quarter 2015 depreciation and amortization was $33.0 million, compared with $31.3 million in the second quarter 2014. This increase was due primarily to an increase in depreciation expense from capital investments placed in service.

Capital expenditures were $70.5 million for the second quarter 2015, compared with $82.9 million in the second quarter 2014, due primarily to information technology assets acquired in 2014 due to the separation from ONEOK.
 
Key Statistics: More detailed information is listed on page 12 in the tables.

Actual heating degree days across the company’s service areas were 487 in the second quarter 2015, 26 percent warmer than normal and 30 percent warmer than the same period last year;
Actual heating degree days in the Oklahoma service area were 156 in the second quarter 2015, 20 percent warmer than normal and 32 percent warmer than the same period last year;
Actual heating degree days in the Kansas service area were 300 in the second quarter 2015, 27 percent warmer than normal and 27 percent warmer than the same period last year;

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ONE Gas Announces Second-quarter 2015 Financial Results;
Affirms 2015 Financial Guidance

July 29, 2015

Page 3

Actual heating degree days in the Texas service area were 31 in the second quarter 2015, 39 percent warmer than normal and 51 percent warmer than the same period last year;
Residential natural gas sales volumes were 11.4 billion cubic feet (Bcf) in the second quarter 2015, down 16 percent compared with the same period last year;
Total natural gas sales volumes were 16.4 Bcf in the second quarter 2015, down 12 percent compared with the same period last year;
Natural gas transportation volumes were 46.8 Bcf in the second quarter 2015, down 3 percent compared with the same period last year; and
Total natural gas volumes delivered were 63.2 Bcf in the second quarter 2015, down 6 percent compared with the same period last year.


YEAR-TO-DATE 2015 FINANCIAL PERFORMANCE

Operating income for the six-month 2015 period was $140.3 million, compared with $136.2 million for the same period last year.

Net margin increased by $3.5 million compared with the same period last year, which primarily reflects:

A $14.9 million increase from new rates primarily in Oklahoma and Texas;
A $2.6 million increase attributed to residential customer growth primarily in Oklahoma;
A $5.0 million decrease due to lower sales volumes, net of weather normalization, primarily from warmer weather for the six-month 2015 period compared with the same period last year;
A $3.1 million decrease in line extension revenue, from commercial and industrial customers, and other revenues;
A $2.9 million decrease in rider and surcharge recoveries due to a lower ad-valorem surcharge in Kansas and the expiration of the take-or-pay rider in Oklahoma, both of which were offset by lower amortization expense; and
A $2.6 million decrease due primarily to lower transportation volumes from weather-sensitive customers in Kansas.

Operating costs for the six-month 2015 period were $234.9 million, compared with $237.3 million for the same period last year, which primarily reflects:

A $5.1 million decrease in outside service expenses, which includes $2.4 million of lower costs associated with contractor pipeline maintenance activities and $2.6 million of costs associated with the separation from ONEOK;
A $3.0 million decrease in legal and workers’ compensation expense;
A $1.6 million decrease in bad debt expense due primarily to warmer weather in Kansas;
A $1.4 million decrease in ad valorem taxes;
A $4.9 million increase in employee-related expenses; and

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ONE Gas Announces Second-quarter 2015 Financial Results;
Affirms 2015 Financial Guidance

July 29, 2015

Page 4

A $2.9 million increase in information technology expenses.

Depreciation and amortization for the six-month 2015 period was $64.6 million, compared with $62.8 million for the same period last year. This increase was due to a $5.1 million increase in depreciation expense from capital investments placed in service, offset partially by a $2.6 million decrease associated with the ad-valorem surcharge rider in Kansas and take-or-pay rider in Oklahoma.

Capital expenditures for the six-month 2015 period were $125.4 million, compared with $148.6 million for the same period last year, due primarily to information technology assets acquired in 2014 due to the separation from ONEOK.

The company ended the second quarter with $135.9 million of cash and cash equivalents, no short-term borrowings and $1.0 million in letters of credit, leaving $699 million of credit available under its $700 million credit facility. The total debt-to-capitalization ratio at June 30, 2015, was approximately 40 percent.

> View earnings tables

REGULATORY ACTIVITY

Oklahoma

In July 2015, Oklahoma Natural Gas filed a request with the OCC for an increase in base rates, reflecting system investments and operating costs necessary to maintain the safety and reliability of its natural gas distribution system. Oklahoma Natural Gas’ request, if approved, represents an increase of $50.4 million in base rates and would result in a typical residential customer paying $4.98 more per month for the utility’s natural gas service.

In accordance with Oklahoma law, the OCC has 180 days to consider Oklahoma Natural Gas’ proposed rate changes.

Texas

In March 2015, Texas Gas Service filed under the El Paso Annual Rate Review (EPARR) requesting an increase in revenues of $9.4 million in the City of El Paso and surrounding incorporated cities. The filing included a request to include a payroll adjustment, which would increase revenues by an additional $1.8 million, for a total increase in revenues of $11.2 million. If approved, new rates will become effective in August 2015.

The EPARR provides for a streamlined review of Texas Gas Service’s revenue requirement on an annual basis, and is in lieu of a filing under the Gas Reliability Infrastructure Program (GRIP) statute with the City of El Paso.

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ONE Gas Announces Second-quarter 2015 Financial Results;
Affirms 2015 Financial Guidance

July 29, 2015

Page 5

GRIP is a capital-recovery mechanism that allows for a rate adjustment providing recovery of and a return on incremental capital investments made between rate cases.

Texas Gas Service received approval for rate relief under the GRIP statute with the City of Austin, Texas, and surrounding communities in May 2015, for approximately $3.7 million. The new rates became effective in June 2015.

In the normal course of business, Texas Gas Service has received approval for increases totaling $3.0 million in 2015 for rate relief under the GRIP and cost-of-service adjustments in other Texas jurisdictions to address investments in rate base and changes in cost of service.

Kansas

Kansas Gas Service is expected to file a rate case in mid-2016 based on a 2015 test year, with new rates effective January 2017.

2015 FINANCIAL GUIDANCE AFFIRMED

ONE Gas affirmed its 2015 financial guidance, with net income expected to be in the range of $108 million to $118 million.
 
Capital expenditures are expected to be approximately $300 million in 2015. More than 70 percent of these expenditures are targeted for system integrity and replacement projects.

EARNINGS CONFERENCE CALL AND WEBCAST

The ONE Gas executive management team will conduct a conference call on Thurs., July 30, 2015, at 11 a.m. Eastern Daylight Time (10 a.m. Central Daylight Time). The call also will be carried live on the ONE Gas website.

To participate in the telephone conference call, dial 888-661-5167, pass code 5380939, or log on to www.onegas.com.

If you are unable to participate in the conference call or the webcast, a replay will be available on the ONE Gas website, www.onegas.com, for 30 days. A recording will be available by phone for seven days. The playback call may be accessed at 888-203-1112, pass code 5380939.

LINK TO EARNINGS TABLES

http://www.onegas.com/~/media/OGS/Earnings/2015/OGS_Q2Earnings-$w$CbK95.ashx
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ONE Gas Announces Second-quarter 2015 Financial Results;
Affirms 2015 Financial Guidance

July 29, 2015

Page 6

ONE Gas, Inc. (NYSE: OGS) is a natural gas distribution company and the successor to the company founded in 1906 as Oklahoma Natural Gas Company, which became ONEOK, Inc. (NYSE: OKE) in 1980. On Jan. 31, 2014, ONE Gas officially separated from ONEOK into a stand-alone, 100 percent regulated, publicly traded natural gas utility.
 
ONE Gas trades on the New York Stock Exchange under the symbol "OGS," and is included in the S&P MidCap 400 Index.

ONE Gas provides natural gas distribution services to more than 2 million customers in Oklahoma, Kansas and Texas. ONE Gas is one of the largest publicly traded, 100 percent regulated, natural gas utilities in the United States.

ONE Gas is headquartered in Tulsa, Okla., and its companies include the largest natural gas distributor in Oklahoma and Kansas, and the third largest in Texas, in terms of customers.

Its largest natural gas distribution markets by customer count are Oklahoma City and Tulsa, Okla.; Kansas City, Wichita and Topeka, Kan.; and Austin and El Paso, Texas. ONE Gas serves residential, commercial, industrial, transportation and wholesale customers in all three states.

For more information, visit the website at http://www.ONEGas.com. For the latest news about ONE Gas, follow us on Twitter @ONEGasInc.

Some of the statements contained and incorporated in this news release are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. The forward-looking statements relate to our anticipated financial performance, liquidity, management’s plans and objectives for our future operations, our business prospects, the outcome of regulatory and legal proceedings, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995. The following discussion is intended to identify important factors that could cause future outcomes to differ materially from those set forth in the forward-looking statements.

Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this news release identified by words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "should," "goal," "forecast," "guidance," "could," "may," "continue," "might," "potential," "scheduled," and other words and terms of similar meaning.

One should not place undue reliance on forward-looking statements, which are applicable only as of the date of this news release. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Those factors may affect our operations, markets, products, services and prices. In addition to any assumptions and other factors referred to specifically in connection with the forward-looking statements, factors that could cause our actual results to differ materially from those contemplated in any forward-looking statement include, among others, the following:

our ability to recover operating costs and amounts equivalent to income taxes, costs of property, plant and equipment and regulatory assets in our regulated rates;
our ability to manage our operations and maintenance costs;
changes in regulation, including the application of market rates by state and local agencies;
the economic climate and, particularly, its effect on the natural gas requirements of our residential and commercial industrial customers;
competition from alternative forms of energy, including, but not limited to, solar power, wind power, geothermal energy and biofuels;
variations in weather, including seasonal effects on demand, the occurrence of storms and disasters, and climate change;
indebtedness could make us more vulnerable to general adverse economic and industry conditions, limit our ability to borrow additional funds and/or place us at competitive disadvantage compared with competitors;
our ability to secure reliable, competitively priced and flexible natural gas supply;

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ONE Gas Announces Second-quarter 2015 Financial Results;
Affirms 2015 Financial Guidance

July 29, 2015

Page 7

the mechanical integrity of facilities operated;
operational hazards and unforeseen operational interruptions;
adverse labor relations;
the effectiveness of our strategies to reduce earnings lag, margin protection strategies and risk mitigation strategies;
our ability to generate sufficient cash flows to meet all of our cash needs;
changes in the financial markets during the periods covered by the forward-looking statements, particularly those affecting the availability of capital and our ability to refinance existing debt and fund investments and acquisitions;
actions of rating agencies, including the ratings of debt, general corporate ratings and changes in the rating agencies’ ratings criteria;
changes in inflation and interest rates;
our ability to purchase and sell assets at attractive prices and on other attractive terms;
our ability to recover the costs of natural gas purchased for our customers;
impact of potential impairment charges;
volatility and changes in markets for natural gas;
possible loss of LDC franchises or other adverse effects caused by the actions of municipalities;
payment and performance by counterparties and customers as contracted and when due;
changes in regulation of natural gas distribution services, particularly those in Oklahoma, Kansas and Texas;
changes in law resulting from new federal or state energy legislation;
changes in environmental, safety, tax and other laws to which we and our subsidiaries are subject;
advances in technology;
population growth rates and changes in the demographic patterns of the markets we serve;
acts of nature and the potential effects of threatened or actual terrorism, including cyber attacks and war;
the sufficiency of insurance coverage to cover losses;
the effects of our strategies to reduce tax payments;
the effects of litigation and regulatory investigations, proceedings, including our rate cases, or inquiries;
changes in accounting standards and corporate governance;
our ability to attract and retain talented management and directors;
the results of financing efforts, including our ability to obtain financing on favorable terms, which can be affected by various factors, including our credit ratings and general economic conditions;
declines in the market prices of debt and equity securities and resulting funding requirements for our defined benefit pension plans;
the ability to successfully complete merger, acquisition or divestiture plans, regulatory or other limitations imposed as a result of a merger, acquisition or divestiture, and the success of the business following a merger, acquisition or divestiture;
the final resolutions or outcomes with respect to our contingent and other corporate liabilities related to the natural gas distribution business and any related actions for indemnification made pursuant to the Separation and Distribution Agreement with ONEOK;
our ability to operate effectively as a separate, publicly traded company; and
the costs associated with increased regulation and enhanced disclosure and corporate governance requirements pursuant to the Dodd-Frank Wall Street Reform and the Consumer Protection Act of 2010.

These factors are not necessarily all of the important factors that could cause actual results to differ materially from those expressed in any of our forward-looking statements. Other factors could also have material adverse effects on our future results. These and other risks are described in greater detail in Item 1A, Risk Factors, in our Annual Report. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.

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ONE Gas Announces Second-quarter 2015 Financial Results;
Affirms 2015 Financial Guidance

July 29, 2015

Page 8

ONE Gas, Inc.
 
 
 
 
 
 
 
 
STATEMENTS OF INCOME
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Six Months Ended
 
 
June 30,
 
June 30,
(Unaudited)
 
2015
 
2014
 
2015
 
2014
 
 
(Thousands of dollars, except per share amounts)
Revenues
 
$
256,786

 
$
296,838

 
$
933,317

 
$
1,063,016

Cost of natural gas
 
79,949

 
120,345

 
493,502

 
626,687

Net margin
 
176,837

 
176,493

 
439,815

 
436,329

Operating expenses
 
 

 
 

 
 
 
 
Operations and maintenance
 
99,422

 
103,826

 
205,983

 
207,325

Depreciation and amortization
 
33,006

 
31,318

 
64,636

 
62,778

General taxes
 
13,139

 
14,537

 
28,921

 
30,061

Total operating expenses
 
145,567

 
149,681

 
299,540

 
300,164

Operating income
 
31,270

 
26,812

 
140,275

 
136,165

Other income
 
72

 
672

 
885

 
1,305

Other expense
 
(502
)
 
(337
)
 
(956
)
 
(1,485
)
Interest expense, net
 
(11,190
)
 
(11,776
)
 
(22,359
)
 
(24,726
)
Income before income taxes
 
19,650

 
15,371

 
117,845

 
111,259

Income taxes
 
(7,574
)
 
(5,917
)
 
(45,388
)
 
(42,729
)
Net income
 
$
12,076

 
$
9,454

 
$
72,457

 
$
68,530

 
 
 
 
 
 
 
 
 
Earnings per share
 
 
 
 
 
 
 
 
Basic
 
$
0.23

 
$
0.18

 
$
1.37

 
$
1.32

Diluted
 
$
0.23

 
$
0.18

 
$
1.36

 
$
1.31

 
 
 
 
 
 
 
 
 
Average shares (thousands)
 
 
 
 
 
 
 
 
Basic
 
52,767

 
51,797

 
52,737

 
52,065

Diluted
 
53,438

 
52,446

 
53,437

 
52,481

Dividends declared per share of stock
 
$
0.30

 
$
0.28

 
$
0.60

 
$
0.28



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ONE Gas Announces Second-quarter 2015 Financial Results;
Affirms 2015 Financial Guidance

July 29, 2015

Page 9

ONE Gas, Inc.
 
 
 
 
BALANCE SHEETS
 
 
 
 
 
 
 
 
 
 
 
June 30,
 
December 31,
(Unaudited)
 
2015
 
2014
Assets
 
(Thousands of dollars)
Property, plant and equipment
 
 

 
 

Property, plant and equipment
 
$
4,970,989

 
$
4,850,201

Accumulated depreciation and amortization
 
1,590,940

 
1,556,481

Net property, plant and equipment
 
3,380,049

 
3,293,720

Current assets
 
 
 
 
Cash and cash equivalents
 
135,886

 
11,943

Accounts receivable, net
 
142,701

 
326,749

Materials and supplies
 
31,682

 
27,511

Income tax receivable
 
12,156

 
43,800

Natural gas in storage
 
119,891

 
185,300

Regulatory assets
 
21,360

 
50,193

Other current assets
 
13,843

 
22,005

Total current assets
 
477,519

 
667,501

Goodwill and other assets
 
 

 
 

Regulatory assets
 
452,711

 
478,723

Goodwill
 
157,953

 
157,953

Other assets
 
57,728

 
51,313

Total goodwill and other assets
 
668,392

 
687,989

Total assets
 
$
4,525,960

 
$
4,649,210























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ONE Gas Announces Second-quarter 2015 Financial Results;
Affirms 2015 Financial Guidance

July 29, 2015

Page 10

ONE Gas, Inc.
 
 
 
 
BALANCE SHEETS
 
 
 
 
(Continued)
 
 
 
 
 
 
June 30,
 
December 31,
(Unaudited)
 
2015
 
2014
Equity and Liabilities
 
(Thousands of dollars)
Equity and long-term debt
 
 
 
 
Common stock, $0.01 par value:
authorized 250,000,000 shares; issued 52,598,005 shares and outstanding 52,102,754 shares at
June 30, 2015; issued and outstanding 52,083,859 shares at December 31, 2014
 
$
526

 
$
521

Paid-in capital
 
1,764,170

 
1,758,796

Retained earnings
 
80,273

 
39,894

Accumulated other comprehensive income (loss)
 
(4,892
)
 
(5,174
)
Treasury stock, at cost: 495,251 shares at June 30, 2015
 
(21,184
)
 

   Total equity
 
1,818,893

 
1,794,037

Long-term debt, excluding current maturities
 
1,201,308

 
1,201,311

Total equity and long-term debt
 
3,020,201

 
2,995,348

Current liabilities
 
 
 
 
Current maturities of long-term debt
 
7

 
6

Notes payable
 

 
42,000

Accounts payable
 
67,819

 
159,064

Accrued interest
 
18,888

 
18,872

Accrued taxes other than income
 
34,199

 
44,742

Accrued liabilities
 
14,651

 
26,019

Customer deposits
 
59,179

 
60,003

Regulatory liabilities
 
37,354

 
32,467

Other current liabilities
 
14,839

 
9,260

Total current liabilities
 
246,936

 
392,433

Deferred credits and other liabilities
 
 

 
 

Deferred income taxes
 
900,630

 
894,585

Employee benefit obligations
 
277,878

 
287,779

Other deferred credits
 
80,315

 
79,065

Total deferred credits and other liabilities
 
1,258,823

 
1,261,429

Commitments and contingencies
 
 
 
 
Total liabilities and equity
 
$
4,525,960

 
$
4,649,210



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ONE Gas Announces Second-quarter 2015 Financial Results;
Affirms 2015 Financial Guidance

July 29, 2015

Page 11

ONE Gas, Inc.
 
 
 
 
STATEMENTS OF CASH FLOWS
 
 
 
 
Six Months Ended
 
 
June 30,
(Unaudited)
 
2015
 
2014
 
 
(Thousands of dollars)
Operating activities
 
 
 
 
Net income
 
$
72,457

 
$
68,530

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
Depreciation and amortization
 
64,636

 
62,778

Deferred income taxes
 
13,152

 
1,880

Share-based compensation expense
 
3,684

 
3,649

Provision for doubtful accounts
 
2,099

 
3,711

Changes in assets and liabilities:
 
 

 
 
Accounts receivable
 
181,949

 
161,173

Materials and supplies
 
(4,171
)
 
2,375

Income tax receivable
 
31,644

 

Natural gas in storage
 
65,409

 
14,083

Asset removal costs
 
(20,902
)
 
(21,557
)
Accounts payable
 
(92,371
)
 
(66,392
)
Accrued interest
 
16

 
19,386

Accrued taxes other than income
 
(10,543
)
 
6,215

Accrued liabilities
 
(11,368
)
 
13,840

Customer deposits
 
(824
)
 
(294
)
Regulatory assets and liabilities
 
58,991

 
18,613

Other assets and liabilities
 
(11,306
)
 
(26,294
)
Cash provided by operating activities
 
342,552

 
261,696

Investing activities
 
 

 
 

Capital expenditures
 
(125,425
)
 
(148,617
)
Cash used in investing activities
 
(125,425
)
 
(148,617
)
Financing activities
 
 

 
 

Repayments of notes payable
 
(42,000
)
 

Repurchase of common stock
 
(24,122
)
 

Issuance of debt, net of discounts
 

 
1,199,994

Long-term debt financing costs
 

 
(11,058
)
Cash payment to ONEOK upon separation
 

 
(1,130,000
)
Issuance of common stock
 
4,471

 
693

Dividends paid
 
(31,533
)
 
(14,553
)
Cash provided by (used in) financing activities
 
(93,184
)
 
45,076

Change in cash and cash equivalents
 
123,943

 
158,155

Cash and cash equivalents at beginning of period
 
11,943

 
3,171

Cash and cash equivalents at end of period
 
$
135,886

 
$
161,326


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ONE Gas Announces Second-quarter 2015 Financial Results;
Affirms 2015 Financial Guidance

July 29, 2015

Page 12

ONE Gas, Inc.
 
 
 
 
 
 
 
 
 
 
 
INFORMATION AT A GLANCE
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
(Unaudited)
2015
 
2014
 
2015
 
2014
 
(Millions of dollars, except as noted)
Financial
 
 
 
 
 
 
 
 
 
 
 
Net margin
$
176.8

 
$
176.5

 
$
439.8

 
$
436.3

Operating costs
$
112.5

 
$
118.4

 
$
234.9

 
$
237.3

Depreciation and amortization
$
33.0

 
$
31.3

 
$
64.6

 
$
62.8

Operating income
$
31.3

 
$
26.8

 
$
140.3

 
$
136.2

Capital expenditures
$
70.5

 
$
82.9

 
$
125.4

 
$
148.6

 
 
 
 
 
 
 
 
 
 
 
 
Net margin on natural gas sales
$
149.1

 
$
144.7

 
$
372.3

 
$
363.1

Transportation revenues
$
20.6

 
$
22.2

 
$
52.0

 
$
54.7

Net margin, excluding other revenues
$
169.7

 
$
166.9

 
$
424.3

 
$
417.8

 
 
 
 
 
 
 
 
 
 
 
 
Volumes (Bcf)
 
 
 
 
 
 
 
 
 
 
 
Natural gas sales
 
 
 
 
 
 
 
 
 
 
 
Residential
 
11.4

 
 
13.6

 
 
71.5

 
 
77.0

Commercial and industrial
 
4.6

 
 
4.7

 
 
21.8

 
 
23.0

Wholesale and public authority
 
0.4

 
 
0.4

 
 
1.5

 
 
1.2

Total volumes sold
 
16.4

 
 
18.7

 
 
94.8

 
 
101.2

Transportation
 
46.8

 
 
48.4

 
 
107.6

 
 
115.3

Total volumes delivered
 
63.2

 
 
67.1

 
 
202.3

 
 
216.6

 
 
 
 
 
 
 
 
 
 
 
 
Average number of customers (in thousands)
 
 
 
 
 
 
 
 
 
 
 
Residential
 
1,973

 
 
1,959

 
 
1,977

 
 
1,966

Commercial and industrial
 
157

 
 
156

 
 
158

 
 
159

Wholesale and public authority
 
3

 
 
3

 
 
3

 
 
3

Transportation
 
13

 
 
12

 
 
13

 
 
12

Total customers
 
2,146

 
 
2,130

 
 
2,151

 
 
2,140

 
 
 
 
 
 
 
 
 
 
 
 
Heating Degree Days
 
 
 
 
 
 
 
 
 
 
 
Actual degree days
 
487

 
 
700

 
 
6,007

 
 
6,699

Normal degree days
 
657

 
 
664

 
 
5,944

 
 
5,948

Percent colder (warmer) than normal weather
 
(25.9
)%
 
 
5.4
 %
 
 
1.1
 %
 
 
12.6
%
 
 
 
 
 
 
 
 
 
 
 
 
Statistics by State
 
 
 
 
 
 
 
 
 
 
 
Oklahoma
 
 
 
 
 
 
 
 
 
 
 
Average number of customers (in thousands)
 
863

 
 
855

 
 
865

 
 
858

Actual degree days
 
156

 
 
228

 
 
2,067

 
 
2,370

Normal degree days
 
195

 
 
195

 
 
1,998

 
 
1,998

Percent colder (warmer) than normal weather
 
(20.0
)%

 
16.9
 %
 
 
3.5
 %
 
 
18.6
%
 
 
 
 
 
 
 
 
 
 
 
 
Kansas
 
 
 
 
 
 
 
 
 
 
 
Average number of customers (in thousands)
 
637

 
 
635

 
 
640

 
 
641

Actual degree days
 
300

 
 
409

 
 
2,815

 
 
3,288

Normal degree days
 
411

 
 
411

 
 
2,913

 
 
2,913

Percent colder (warmer) than normal weather
 
(27.0
)%
 
 
(0.5
)%
 
 
(3.4
)%
 
 
12.9
%
 
 
 
 
 
 
 
 
 
 
 
 
Texas
 
 
 
 
 
 
 
 
 
 
 
Average number of customers (in thousands)
 
646

 
 
640

 
 
646

 
 
641

Actual degree days
 
31

 
 
63

 
 
1,125

 
 
1,041

Normal degree days
 
51

 
 
58

 
 
1,033

 
 
1,037

Percent colder (warmer) than normal weather
 
(39.2
)%
 
 
8.6
 %
 
 
8.9
 %
 
 
0.4
%