Delaware | 001-11590 | 51-0064146 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
909 Silver Lake Boulevard, Dover, Delaware |
19904 |
|
(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)) |
/s/ Beth W. Cooper
|
||
Senior Vice President and Chief Financial Officer |
| Net income was $3.5 million, or $0.37 per share, for the quarter ended June 30,
2011, compared to $3.3 million, or $0.35 per share, for the quarter ended June 30, 2010. |
| Customer growth in the natural gas distribution operations and continued expansion of
its transmission system generated $1.6 million of additional gross margin. |
| Improved margins from the propane distribution and wholesale marketing operations added
$972,000 to gross margin. |
| Eastern Shore Natural Gas Company (Eastern Shore), the Companys natural gas
transmission subsidiary, generated gross margin of $542,000 in the second quarter of 2011
from new transportation services associated with its eight-mile mainline extension to
interconnect with Texas Eastern Transmissions pipeline system. These services commenced
in January 2011 and have a three-year phase-in from 19,324 Mcfs per day to 38,647 Mcfs per
day, and an estimated gross margin of $2.4 million in 2011, $3.9 million in 2012 and $4.3
million annually thereafter. |
| 14 large commercial and industrial customers added by the Delmarva natural gas
distribution operation since July 2010 generated $261,000 in additional gross margin during
the second quarter of 2011. These new customers are expected to generate annual margin of
$1.1 million in 2011, compared to $196,000 of gross margin generated from these customers
in 2010. |
| Three percent growth in Delmarva natural gas distribution residential customers
generated additional gross margin of $105,000 for the second quarter of 2011. |
| The Florida natural gas distribution operation generated additional gross margin of
$376,000 from one-percent growth in residential customers and three-percent growth in
commercial customers in the second quarter of 2011, compared to the same quarter in 2010.
In addition, 700 new customers, added as a result of the purchase of the operating assets
of Indiantown Gas Company in August 2010, generated $142,000 of additional gross margin
during the current quarter. |
| Gross margin from the propane distribution operations for the second quarter of 2011
increased by $658,000 compared to the same quarter in 2010, due primarily to margins per
gallon returning to more normal levels on the Delmarva Peninsula and improved margins per
gallon in Florida as the Florida propane distribution operation continued to adjust its
retail pricing in response to market opportunities. |
| The Company recorded $549,000 in one-time charges in May 2011 associated with the
voluntary workforce reduction of 31 employees in Florida, which is expected to generate
approximately $500,000 in cost savings in 2011 and $800,000 in annual savings thereafter. |
| In July 2011, BravePoint, Inc. (BravePoint), the Companys advanced information
services subsidiary, completed the first successful implementation of its new product,
ProfitZoomTM. At present, BravePoint has three customers, which have
implemented, or are in the process of implementing, this new product and has several
outstanding sales proposals under consideration by other potential customers. |
2
(in thousands) | ||||
Gross margin for the three months ended June 30, 2010 |
$ | 28,115 | ||
Factors contributing to the gross margin increase for the three
months ended June 30, 2011: |
||||
Net customer growth |
918 | |||
New transportation services |
706 | |||
Volume decrease weather and other |
(255 | ) | ||
Other |
(39 | ) | ||
Gross margin for the three months ended June 30, 2011 |
$ | 29,445 | ||
| Gross margin from commercial and industrial customers for the Delmarva natural gas
distribution operation increased by $295,000 in the second quarter of 2011, due primarily
to the addition of 14 large commercial and industrial customers since July 2010. These 14
new customers, which generated $261,000 of gross margin in the second quarter of 2011, are
expected to generate annual margin of $1.1 million in 2011, compared to $196,000 of gross
margin in 2010. Three-percent growth in residential customers generated an additional
$105,000 for the Delmarva natural gas distribution operation. |
The Companys Florida natural gas distribution operations generated $376,000 of additional
gross margin from one-percent growth in residential customers and three-percent growth in
commercial customers. In addition, 700 new customers, added as a result of the Companys
purchase of the operating assets of Indiantown Gas Company in August 2010, generated
$142,000 of gross margin during the second quarter of 2011. |
| In January 2011, Eastern Shore commenced new transportation services associated with its
eight-mile mainline extension to interconnect with Texas Eastern Transmissions pipeline
system. These services generated gross margin of $542,000 in the second quarter of 2011
and have a three-year phase-in from 19,324 Mcfs per day to 38,647 Mcfs per day, and an
estimated gross margin of $2.4 million in 2011, $3.9 million in 2012 and $4.3 million
annually thereafter. |
3
Also generating additional gross margin of $103,000 in the second quarter of 2011 were new
transportation services that commenced in May and November 2010, as a result of Eastern
Shores system expansion projects. These expansions added 2,666 Mcfs of capacity per day
with estimated annual gross margin of $574,000 in 2011, of which $143,000 was recorded in
the second quarter of 2011. These projects generated $216,000 of gross margin in 2010
($40,000 in the second quarter of 2010). |
Eastern Shore entered into two additional transportation services agreements with an
existing industrial customer, one for the period of May 2011 through April 2021 for an
additional 3,290 Mcfs per day and the other one for the period of November 2011 through
October 2012 for an additional 9,192 Mcfs per day. These additional services, which are a
result of a system expansion, generated additional gross margin of $61,000 in the second
quarter of 2011 and are expected to generate additional gross margin of $356,000 in 2011,
$1.2 million in 2012 and $369,000 annually thereafter. |
| Lower customer consumption in the Florida natural gas operations decreased gross margin
by $377,000 during the second quarter of 2011, compared to the same quarter in 2010. This
decrease was offset partially by increased non-weather-related consumption by residential
customers in Delaware and commercial and industrial customers in Maryland. |
| One-time charges of $481,000 associated with the voluntary workforce reduction in
Florida; |
| Increased regulatory, legal and other costs, including $316,000 of additional costs
associated with the electric franchise dispute in Marianna, Florida and $83,000 in costs
associated with the Come-Back filing in Florida and the rate case proceeding for Eastern
Shore; |
| $258,000 in higher depreciation expense and asset removal costs from capital investments
made since the second half of 2010; |
| $153,000 in additional expenses related to pipeline integrity projects for Eastern Shore
to comply with increased pipeline regulatory requirements; and |
| $79,000 of other operating expenses associated with the purchase of the operating assets
of Indiantown Gas Company in August 2010. |
(in thousands) | ||||
Gross margin for the three months ended June 30, 2010 |
$ | 5,547 | ||
Factors contributing to the gross margin increase for the three
months ended June 30, 2011: |
||||
Increase in margin per gallon |
658 | |||
Propane wholesale marketing |
314 | |||
Natural gas marketing |
291 | |||
Other |
33 | |||
Gross margin for the three months ended June 30, 2011 |
$ | 6,843 | ||
4
| The propane distribution operations generated additional gross margin of $658,000
due to higher margins per gallon in the second quarter of 2011, compared to the same
quarter in 2010. During the current quarter, margins per gallon returned to more normal
levels on the Delmarva Peninsula. Significantly colder temperatures in early 2010
increased customer consumption and led to the propane distribution operations having to
purchase spot propane supply at higher costs, resulting in lower margins per gallon during
the second quarter of 2010. More normal
temperatures during 2011 and fewer spot purchases during the peak heating season resulted in
margins per gallon returning to more normal and historical levels in the second quarter of
2011. Also contributing to the gross margin increase were improved margins per gallon in
Florida as the Florida propane distribution operation continued to adjust its retail pricing
in response to market conditions. |
| Xeron, Inc. (Xeron), the Companys propane wholesale marketing subsidiary, generated a
$314,000 increase in gross margin during the second quarter of 2011, compared to the same
quarter in 2010, due primarily to a 56-percent increase in trading activity. |
| The Companys natural gas marketing subsidiary, Peninsula Energy Services Company, Inc.
(PESCO), generated higher gross margin of $291,000 during the second quarter of 2011
resulting primarily from favorable imbalance resolutions with third-party intra-state
pipelines, with which PESCO contracts supply. Such imbalance resolutions are not
predictable and therefore, are not included in the Companys long-term financial plans or
forecasts. |
5
6
(in thousands) | ||||
Gross margin for the six months ended June 30, 2010 |
$ | 65,478 | ||
Factors contributing to the gross margin increase for the six
months ended June 30, 2011: |
||||
Decreased customer consumption, due primarily to weather |
(2,002 | ) | ||
Net customer growth |
1,756 | |||
New transportation services |
1,351 | |||
Other |
(126 | ) | ||
Gross margin for the six months ended June 30, 2011 |
$ | 66,457 | ||
| Customer consumption of natural gas and electricity decreased both on the Delmarva
Peninsula and in Florida during the first six months of 2011, compared to the same period
in 2010. The decline in consumption is due primarily to significantly warmer weather
during the heating season, resulting in a period-over-period decrease of $2.0 million in
gross margin. Heating degree-days decreased by five percent, or 144 heating degree-days,
on the Delmarva Peninsula and by 43 percent, or 408 heating degree-days, in Florida during
the first six months of 2011, compared to the same period in 2010. |
| Gross margin from commercial and industrial customers for the Delmarva natural gas
distribution operation increased by $584,000 in the first six months of 2011, due primarily
to the addition of 14 large commercial and industrial customers since July 2010. These 14
new customers, which generated $509,000 of gross margin in the first half of 2011, are
expected to generate annual margin of $1.1 million in 2011, $509,000 of which has been
reflected in the year-to-date results. The same customers generated $196,000 of gross
margin in the second half of 2010. Two-percent growth in residential customers generated
an additional $271,000 in gross margin for the Delmarva natural gas distribution operation. |
The Florida natural gas distribution operations generated $576,000 of additional gross
margin from one-percent growth in residential customers and three-percent growth in
commercial customers. In addition, 700 new customers, added as a result of the Companys
purchase of the operating assets of Indiantown Gas Company in August 2010, generated
$325,000 of gross margin during the first six months of 2011. |
| In January 2011, Eastern Shore commenced new transportation services associated with its
eight-mile mainline extension to interconnect with Texas Eastern Transmissions pipeline
system. These new services generated gross margin of $1.1 million in the first six months
of 2011 and have a three-year phase-in from 19,324 Mcfs per day to 38,647 Mcfs per day and
an estimated gross margin of $2.4 million in 2011, $3.9 million in 2012 and $4.3 million
annually thereafter. |
Also generating additional gross margin of $247,000 in the first six months of 2011 were new
transportation services that commenced in May 2010 and November 2010, as a result of Eastern
Shores system expansion projects. These expansions added 2,666 Mcfs of capacity per day
and an estimated annual gross margin of $574,000 in 2011, $287,000 of which was recorded in
the first six months of 2011. These projects generated $216,000 of gross margin in 2010
($40,000 in the first six months of 2010). |
7
Eastern Shore entered into two additional transportation services agreements with an
existing industrial customer, one for the period of May 2011 through April 2021 for an
additional 3,290 Mcfs per day and the other one for the period of November 2011 through
October 2012 for an additional 9,192 Mcfs per day. These additional services, which are a
result of a system expansion, generated additional gross margin of $61,000 in the second
quarter of 2011 and are expected to generate additional gross margin of $356,000 in 2011,
$1.2 million in 2012 and $369,000 annually thereafter. |
Partially offsetting these margin increases were decreased margins of $40,000 from
transportation service contracts, which expired in April 2010. |
| One-time charges totaling $651,000 associated with the voluntary workforce reduction in
Florida and a pension settlement; |
| Increased regulatory, legal and other costs, including $316,000 of additional costs
associated with the electric franchise dispute in Marianna Florida and $137,000 in costs
with respect to the Come-Back filing in Florida and the rate case proceeding for Eastern
Shore; |
| $559,000 in higher depreciation expense and asset removal costs from capital investments
made since the second half of 2010; |
| $416,000 in additional expenses related to pipeline integrity projects for Eastern Shore
to comply with increased pipeline regulatory requirements; and |
| $147,000 of other operating expenses during the first half of 2011 associated with the
purchase of the operating assets of Indiantown Gas Company in August 2010. |
(in thousands) | ||||
Gross margin for the six months ended June 30, 2010 |
$ | 20,858 | ||
Factors contributing to the gross margin increase for the six
months ended June 30, 2011: |
||||
Increase in margin per gallon |
1,539 | |||
Volume decrease weather and other |
(934 | ) | ||
Gain from litigation settlement |
575 | |||
Propane wholesale marketing |
412 | |||
Natural gas marketing |
301 | |||
Miscellaneous fees and other |
87 | |||
Gross margin for the six months ended June 30, 2011 |
$ | 22,838 | ||
8
| The propane distribution operations generated additional gross margin of $1.5
million due to higher margins per gallon in the first six months of 2011, compared to the
same period in 2010. During the first half of 2011, margins per gallon returned to more
normal levels on the Delmarva Peninsula. Significantly colder temperatures in early 2010
increased customer consumption and led to the propane distribution operations having to
purchase spot propane supply at higher costs, resulting in lower margins per gallon during
that period. More normal temperatures during 2011 and fewer spot purchases during the peak
heating season resulted in margins per gallon in the first half of 2011 returning to levels
more consistent with prior years. Also contributing to the gross margin increase were
higher margins per gallon in Florida as the Florida propane distribution operation
continued to adjust its retail pricing in response to market conditions. |
| A decrease in heating degree-days in the first six months of 2011, compared to the same
period in 2010, and a decrease in propane deliveries to bulk customers due to the timing of
deliveries, resulted in decreased gross margin of $934,000. |
| The Company recorded a one-time gain of $575,000 in the first quarter of 2011 related to
the Companys share of proceeds received from an antitrust litigation settlement with a
major propane supplier. |
| Xeron, the Companys propane wholesale marketing subsidiary, generated a $412,000
increase in gross margin during the first six months of 2011, compared to the same period
in 2010, due primarily to a 50-percent increase in trading activity. |
| Gross margin generated by PESCO increased $301,000 in the first six months of 2011,
compared to the same period in 2010. This increase resulted primarily from favorable
imbalance resolutions with third-party intra-state pipelines, with which PESCO contracts
supply. Such imbalance resolutions are not predictable and therefore, are not included in
the Companys long-term financial plans or forecasts. |
9
10
Second Quarter | Year to Date | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Operating Revenues |
||||||||||||||||
Regulated Energy |
$ | 54,327 | $ | 52,740 | $ | 139,329 | $ | 144,367 | ||||||||
Unregulated Energy |
29,692 | 24,615 | 88,442 | 83,885 | ||||||||||||
Other |
2,812 | 2,706 | 5,658 | 5,069 | ||||||||||||
Total Operating Revenues |
86,831 | 80,061 | 233,429 | 233,321 | ||||||||||||
Operating Expenses |
||||||||||||||||
Regulated energy cost of sales |
24,882 | 24,625 | 72,872 | 78,889 | ||||||||||||
Unregulated energy and other cost of
sales |
24,420 | 20,384 | 68,711 | 65,474 | ||||||||||||
Operations |
20,401 | 18,526 | 40,237 | 37,524 | ||||||||||||
Maintenance |
1,892 | 1,789 | 3,595 | 3,489 | ||||||||||||
Depreciation and amortization |
4,937 | 4,545 | 9,958 | 9,389 | ||||||||||||
Other taxes |
2,523 | 2,431 | 5,441 | 5,397 | ||||||||||||
Total operating expenses |
79,055 | 72,300 | 200,814 | 200,162 | ||||||||||||
Operating Income |
7,776 | 7,761 | 32,615 | 33,159 | ||||||||||||
Other income (loss), net of other expenses |
27 | (11 | ) | 50 | 103 | |||||||||||
Interest charges |
2,114 | 2,305 | 4,265 | 4,667 | ||||||||||||
Income Before Income Taxes |
5,689 | 5,445 | 28,400 | 28,595 | ||||||||||||
Income tax
expense |
2,169 | 2,105 | 11,133 | 11,281 | ||||||||||||
Net Income |
$ | 3,520 | $ | 3,340 | $ | 17,267 | $ | 17,314 | ||||||||
Weighted Average Shares Outstanding: |
||||||||||||||||
Basic |
9,557,707 | 9,467,222 | 9,546,606 | 9,443,708 | ||||||||||||
Diluted |
9,650,887 | 9,557,352 | 9,642,374 | 9,550,670 | ||||||||||||
Earnings Per Share of Common Stock: |
||||||||||||||||
Basic |
$ | 0.37 | $ | 0.35 | $ | 1.81 | $ | 1.83 | ||||||||
Diluted |
$ | 0.37 | $ | 0.35 | $ | 1.79 | $ | 1.82 |
11
Second Quarter | Year to Date | |||||||||||||||
Chesapeake and Subsidiaries | 2011 | 2010 | 2011 | 2010 | ||||||||||||
Gross Margin (1) |
||||||||||||||||
Regulated Energy |
$ | 29,445 | $ | 28,115 | $ | 66,457 | $ | 65,478 | ||||||||
Unregulated Energy |
6,843 | 5,547 | 22,838 | 20,858 | ||||||||||||
Other |
1,241 | 1,390 | 2,551 | 2,622 | ||||||||||||
Total Gross Margin |
$ | 37,529 | $ | 35,052 | $ | 91,846 | $ | 88,958 | ||||||||
Operating Income |
||||||||||||||||
Regulated Energy |
$ | 7,863 | $ | 8,308 | $ | 24,171 | $ | 25,824 | ||||||||
Unregulated Energy |
4 | (791 | ) | 8,518 | 6,969 | |||||||||||
Other |
(91 | ) | 244 | (74 | ) | 366 | ||||||||||
Total Operating Income |
$ | 7,776 | $ | 7,761 | $ | 32,615 | $ | 33,159 | ||||||||
Heating Degree-Days
Delmarva Peninsula |
||||||||||||||||
Actual |
382 | 428 | 2,827 | 2,971 | ||||||||||||
10-year average (normal) |
487 | 495 | 2,863 | 2,831 | ||||||||||||
Heating Degree-Days Florida |
||||||||||||||||
Actual |
14 | 9 | 534 | 942 | ||||||||||||
10-year average (normal) |
30 | 33 | 594 | 547 | ||||||||||||
Cooling Degree-Days Florida |
||||||||||||||||
Actual |
1,027 | 1,037 | 1,107 | 1,040 | ||||||||||||
10-year average (normal) |
894 | 880 | 961 | 952 |
(1) | Gross margin is determined by deducting the cost of sales from operating
revenue. Cost of sales includes the purchased fuel cost for natural gas, electricity and
propane and the cost of labor spent on direct revenue-producing activities. Gross margin
should not be considered an alternative to operating income or net income, which is determined
in accordance with GAAP. Chesapeake believes that gross margin,
although a non-GAAP measure, is
useful and meaningful to investors as a basis for making investment decisions. It provides
investors with information that demonstrates the profitability achieved by the Company under
its allowed rates for regulated operations and under its competitive pricing structure for
non-regulated segments. Chesapeakes management uses gross margin in measuring its business
units performance and has historically analyzed and reported gross margin information
publicly. Other companies may calculate gross margin in a different manner. |
12
For the Three Months Ended June 30, 2011 | For the Three Months Ended June 30, 2010 | |||||||||||||||||||||||||||||||
Chesapeake | Chesapeake | |||||||||||||||||||||||||||||||
Delmarva NG | Florida NG | FPU NG | FPU Electric | Delmarva NG | Florida NG | FPU NG | FPU Electric | |||||||||||||||||||||||||
Distribution | Division | Distribution | Distribution | Distribution | Division | Distribution | Distribution | |||||||||||||||||||||||||
Operating Revenues
(in thousands) |
||||||||||||||||||||||||||||||||
Residential |
$ | 8,581 | $ | 1,065 | $ | 4,417 | $ | 10,111 | $ | 7,287 | $ | 1,109 | $ | 5,267 | $ | 10,150 | ||||||||||||||||
Commercial |
3,932 | 902 | 7,437 | 10,392 | 4,304 | 911 | 8,681 | 10,315 | ||||||||||||||||||||||||
Industrial |
1,002 | 1,239 | 2,079 | 2,134 | 734 | 1,170 | 2,139 | 2,565 | ||||||||||||||||||||||||
Other (1) |
(2,531 | ) | 534 | (909 | ) | (300 | ) | (2,063 | ) | 319 | (2,623 | ) | (1,123 | ) | ||||||||||||||||||
Total Operating
Revenues |
$ | 10,984 | $ | 3,740 | $ | 13,024 | $ | 22,337 | $ | 10,262 | $ | 3,509 | $ | 13,464 | $ | 21,907 | ||||||||||||||||
Volume (in Mcfs/MWHs) |
||||||||||||||||||||||||||||||||
Residential |
469,313 | 61,720 | 235,577 | 68,131 | 369,760 | 74,398 | 290,991 | 67,871 | ||||||||||||||||||||||||
Commercial |
555,974 | 271,006 | 683,636 | 78,097 | 458,499 | 339,054 | 761,650 | 75,231 | ||||||||||||||||||||||||
Industrial |
691,765 | 3,821,212 | 687,721 | 14,010 | 481,873 | 3,814,830 | 486,443 | 20,710 | ||||||||||||||||||||||||
Other |
33,448 | | (89,195 | ) | 19,115 | 60,879 | | (177,664 | ) | 17,898 | ||||||||||||||||||||||
Total |
1,750,500 | 4,153,938 | 1,517,739 | 179,353 | 1,371,011 | 4,228,282 | 1,361,420 | 181,710 | ||||||||||||||||||||||||
Average customers |
||||||||||||||||||||||||||||||||
Residential |
48,660 | 13,631 | 48,028 | 23,593 | 47,431 | 13,418 | 47,162 | 23,585 | ||||||||||||||||||||||||
Commercial |
5,173 | 1,174 | 4,540 | 7,375 | 5,128 | 1,121 | 4,496 | 7,378 | ||||||||||||||||||||||||
Industrial |
90 | 57 | 675 | 2 | 82 | 58 | 582 | 2 | ||||||||||||||||||||||||
Other |
4 | | | | 6 | | | | ||||||||||||||||||||||||
Total |
53,927 | 14,862 | 53,243 | 30,970 | 52,647 | 14,597 | 52,240 | 30,965 | ||||||||||||||||||||||||
(1) | Operating revenues from Other sources include unbilled revenue, under (over)
recoveries of fuel cost, conservation revenue, other miscellaneous charges, fees for billing
services provided to third-parties and adjustments for pass-through taxes. |
13
For the Six Months Ended June 30, 2011 | For the Six Months Ended June 30, 2010 | |||||||||||||||||||||||||||||||
Chesapeake | Chesapeake | |||||||||||||||||||||||||||||||
Delmarva NG | Florida NG | FPU NG | FPU Electric | Delmarva NG | Florida NG | FPU NG | FPU Electric | |||||||||||||||||||||||||
Distribution | Division | Distribution | Distribution | Distribution | Division | Distribution | Distribution | |||||||||||||||||||||||||
Operating Revenues
(in thousands) |
||||||||||||||||||||||||||||||||
Residential |
$ | 32,646 | $ | 2,387 | $ | 11,971 | $ | 23,013 | $ | 30,430 | $ | 2,633 | $ | 14,333 | $ | 24,557 | ||||||||||||||||
Commercial |
16,979 | 1,911 | 17,700 | 20,344 | 17,086 | 1,940 | 20,748 | 20,714 | ||||||||||||||||||||||||
Industrial |
2,358 | 2,443 | 4,657 | 3,939 | 1,810 | 2,394 | 4,410 | 4,555 | ||||||||||||||||||||||||
Other (1) |
(4,841 | ) | 1,152 | (2,526 | ) | (3,002 | ) | (2,917 | ) | 849 | (2,863 | ) | (3,664 | ) | ||||||||||||||||||
Total Operating
Revenues |
$ | 47,142 | $ | 7,893 | $ | 31,802 | $ | 44,294 | $ | 46,409 | $ | 7,816 | $ | 36,628 | $ | 46,162 | ||||||||||||||||
Volume (in Mcfs/MWHs) |
||||||||||||||||||||||||||||||||
Residential |
2,150,989 | 194,493 | 724,823 | 155,504 | 2,056,174 | 253,559 | 845,888 | 164,899 | ||||||||||||||||||||||||
Commercial |
1,955,429 | 620,600 | 1,617,078 | 151,995 | 1,751,364 | 721,972 | 1,757,665 | 150,222 | ||||||||||||||||||||||||
Industrial |
1,497,368 | 7,712,274 | 1,467,359 | 29,680 | 1,053,215 | 7,402,857 | 1,029,603 | 39,580 | ||||||||||||||||||||||||
Other |
44,940 | | (187,463 | ) | 6,888 | 141,950 | | (151,376 | ) | 11,644 | ||||||||||||||||||||||
Total |
5,648,726 | 8,527,367 | 3,621,797 | 344,067 | 5,002,703 | 8,378,388 | 3,481,780 | 366,345 | ||||||||||||||||||||||||
Average customers |
||||||||||||||||||||||||||||||||
Residential |
48,986 | 13,660 | 47,943 | 23,591 | 47,808 | 13,441 | 47,089 | 23,558 | ||||||||||||||||||||||||
Commercial |
5,241 | 1,168 | 4,534 | 7,377 | 5,196 | 1,121 | 4,488 | 7,380 | ||||||||||||||||||||||||
Industrial |
92 | 59 | 670 | 2 | 81 | 59 | 578 | 2 | ||||||||||||||||||||||||
Other |
5 | | | | 5 | | | | ||||||||||||||||||||||||
Total |
54,324 | 14,887 | 53,147 | 30,970 | 53,090 | 14,621 | 52,155 | 30,940 | ||||||||||||||||||||||||
(1) | Operating revenues from Other sources include unbilled revenue, under (over)
recoveries of fuel cost, conservation revenue, other miscellaneous charges, fees for billing
services provided to third-parties and adjustments for pass-through taxes. |
14
Assets | June 30, | December 31, | ||||||
(in thousands, except shares and per share data) | 2011 | 2010 | ||||||
Property, Plant and Equipment |
||||||||
Regulated energy |
$ | 511,008 | $ | 500,689 | ||||
Unregulated energy |
62,399 | 61,313 | ||||||
Other |
18,926 | 16,989 | ||||||
Total property, plant and equipment |
592,333 | 578,991 | ||||||
Less: Accumulated depreciation and
amortization |
(129,054 | ) | (121,628 | ) | ||||
Plus: Construction work in progress |
8,317 | 5,394 | ||||||
Net property, plant and equipment |
471,596 | 462,757 | ||||||
Investments, at fair value |
4,109 | 4,036 | ||||||
Current Assets |
||||||||
Cash and cash equivalents |
1,828 | 1,643 | ||||||
Accounts receivable (less allowance for uncollectible
accounts of $1,095 and $1,194, respectively) |
80,381 | 88,074 | ||||||
Accrued revenue |
8,655 | 14,978 | ||||||
Propane inventory, at average cost |
6,790 | 8,876 | ||||||
Other inventory, at average cost |
3,266 | 3,084 | ||||||
Regulatory assets |
289 | 51 | ||||||
Storage gas prepayments |
3,672 | 5,084 | ||||||
Income taxes receivable |
9,414 | 6,748 | ||||||
Deferred income taxes |
2,170 | 2,191 | ||||||
Prepaid expenses |
3,111 | 4,613 | ||||||
Mark-to-market energy assets |
335 | 1,642 | ||||||
Other current assets |
226 | 245 | ||||||
Total current assets |
120,137 | 137,229 | ||||||
Deferred Charges and Other Assets |
||||||||
Goodwill |
35,613 | 35,613 | ||||||
Other intangible assets,
net |
3,293 | 3,459 | ||||||
Long-term receivables |
26 | 155 | ||||||
Regulatory assets |
22,300 | 23,884 | ||||||
Other deferred charges |
3,415 | 3,860 | ||||||
Total deferred charges and other assets |
64,647 | 66,971 | ||||||
Total Assets |
$ | 660,489 | $ | 670,993 | ||||
15
Capitalization and Liabilities | June 30, | December 31, | ||||||
(in thousands, except shares and per share data) | 2011 | 2010 | ||||||
Capitalization |
||||||||
Stockholders equity |
||||||||
Common stock, par value $0.4867 per share
(authorized 25,000,000 shares) |
$ | 4,654 | $ | 4,635 | ||||
Additional paid-in capital |
148,796 | 148,159 | ||||||
Retained earnings |
87,549 | 76,805 | ||||||
Accumulated other comprehensive loss |
(2,999 | ) | (3,360 | ) | ||||
Deferred compensation obligation |
796 | 777 | ||||||
Treasury stock |
(796 | ) | (777 | ) | ||||
Total stockholders equity |
238,000 | 226,239 | ||||||
Long-term debt, net of current maturities |
117,123 | 89,642 | ||||||
Total capitalization |
355,123 | 315,881 | ||||||
Current Liabilities |
||||||||
Current portion of long-term debt |
9,196 | 9,216 | ||||||
Short-term borrowing |
4,248 | 63,958 | ||||||
Accounts payable |
64,427 | 65,541 | ||||||
Customer deposits and refunds |
25,135 | 26,317 | ||||||
Accrued interest |
1,548 | 1,789 | ||||||
Dividends payable |
3,299 | 3,143 | ||||||
Accrued compensation |
4,623 | 6,784 | ||||||
Regulatory liabilities |
11,960 | 9,009 | ||||||
Mark-to-market energy liabilities |
216 | 1,492 | ||||||
Other accrued liabilities |
12,081 | 10,393 | ||||||
Total current liabilities |
136,733 | 197,642 | ||||||
Deferred Credits and Other Liabilities |
||||||||
Deferred income taxes |
92,700 | 80,031 | ||||||
Deferred investment tax credits |
203 | 243 | ||||||
Regulatory liabilities |
3,670 | 3,734 | ||||||
Environmental liabilities |
9,414 | 10,587 | ||||||
Other pension and benefit costs |
17,816 | 18,199 | ||||||
Accrued asset removal cost Regulatory liability |
35,919 | 35,092 | ||||||
Other liabilities |
8,911 | 9,584 | ||||||
Total deferred credits and other liabilities |
168,633 | 157,470 | ||||||
Total Capitalization and Liabilities |
$ | 660,489 | $ | 670,993 | ||||
16
17
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