-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, Qq/YaYdpG1sPvJwJOntTMym2jppJ40x5sUVmLUkOijvZdwmpUdeA9v17FIxhJ1am n8RIE0C0nxtSBSGp8DoQJg== 0000893220-95-000060.txt : 19950515 0000893220-95-000060.hdr.sgml : 19950515 ACCESSION NUMBER: 0000893220-95-000060 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19950210 ITEM INFORMATION: Other events FILED AS OF DATE: 19950210 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: COLUMBIA GAS SYSTEM INC CENTRAL INDEX KEY: 0000022099 STANDARD INDUSTRIAL CLASSIFICATION: NATURAL GAS TRANSMISSION & DISTRIBUTION [4923] IRS NUMBER: 131594808 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-01098 FILM NUMBER: 95508665 BUSINESS ADDRESS: STREET 1: 20 MONTCHANIN RD CITY: WILMINGTON STATE: DE ZIP: 19807 BUSINESS PHONE: 3024295000 8-K 1 FORM 8-K, THE COLUMBIA GAS SYSTEM, INC. 1 FORM 8-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (date of earliest event Reported) February 10, 1995 ----------------- THE COLUMBIA GAS SYSTEM, INC. ----------------------------- (Exact name of registrant as specified in its charter) Delaware 1-1098 13--1594808 - ---------------------------- ----------- ------------------- (State of other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.)
20 Montchanin Road, Wilmington, Delaware 19807 ----------------------------------------------- (Address of principal executive offices) Registrant's telephone number, including area code (302) 429-5000 -------------- 2 Item 5. Other Events Information contained in a News Release dated February 9, 1995, is incorporated herein by reference. 3 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. The Columbia Gas System, Inc. ----------------------------- (Registrant) By /s/ R. E. Lowe --------------------------- R.E. Lowe Vice President and Controller Date: February 10, 1995 4 Contacts: Media - H. W. Chaddock (302) 429-5261 Analysts - T. L. Hughes (302) 429-5363 K. P. Murphy (302) 429-5471 FOR IMMEDIATE RELEASE February 9, 1995 COLUMBIA GAS ANNOUNCES IMPROVED 1994 EARNINGS WILMINGTON, DEL. -- The Columbia Gas System, Inc. (NYSE:CG), today announced net income for 1994 of $240.6 million, or $4.76 per share, a 58 percent increase over 1993 net income of $152.2 million, or $3.01 per share. In the fourth quarter, the Corporation reported net income of $73.2 million, or $1.45 per share, as compared to $69.4 million, or $1.37 per share, in the fourth quarter of 1993. Columbia System Chairman John H. Croom said increases in both the annual and fourth quarter earnings are primarily due to the net effect of unusual and bankruptcy-related costs between the two periods. He pointed out that all of Columbia's basic business units continue to perform well, demonstrating the underlying strength of their operations and their abilities to operate effectively in the gas industry's new competitive climate. After being adjusted for unusual and bankruptcy-related items, 1994 net income was $157.9 million, essentially unchanged from adjusted net income of $160.4 million in 1993. Fourth quarter adjusted income was $68.6 million, as compared to $63.3 million in the same period last year. The major bankruptcy issue reflected in the adjusted earnings is a computation for interest expense on the Corporation's prepetition debt obligations. On an after-tax basis, this amounted to $144.2 million in 1994 and $134.5 million in 1993. In the fourth quarter, the reduction for interest expense was $37.6 million in 1994 and $34.4 million in 1993. The Columbia Gas System, Inc. and Columbia Gas Transmission Corp., its principal pipeline subsidiary, have been operating as debtors in possession under Chapter 11 of the U. S. Bankruptcy Code since July 31, 1991. 5 2 Croom pointed out that the Chapter 11 proceedings have not affected the ability of the Corporation or any of its subsidiaries to effectively compete in the energy marketplace. "Columbia companies continue to seek out opportunities for future growth. Typical of these are Columbia's new Energy Market Center and the new natural gas peaking service to be initiated later this year at the Cove Point, Maryland, liquefied natural gas facility," he said. TWELVE MONTHS RESULTS The transmission segment's 1994 operating income increased $26.7 million to $205.4 million. This was due largely to the $57.5 million writedown in 1993 of the Corporation's investment in Columbia LNG, the recording of $66.7 million for environmental reserves in 1993, and increased demand for firm transportation services in 1994. Offsetting these improvements was the net effect of several unusual items in both periods, including a $35 million reserve in 1994, for customer settlements and regulatory issues. Operating income for the distribution segment declined $18.1 million in 1994 to $128.3 million. This reduction was due to warmer weather in the fourth quarter and higher operating costs which depressed the beneficial effect of new rates attained through regulatory settlements. The increase in operating costs was due in part to implementing new programs designed to improve customer service. The effect of the warmer weather was offset somewhat by pilot weather normalization adjustments that have been implemented in some states to moderate the impact that temperatures have on customer bills and distribution income. Operating income for the oil and gas segment in 1994 was $30.6 million, down $23 million from 1993. This reduction was principally due to seven percent lower oil prices, four percent lower gas prices and a seven percent decrease in gas production in 1994. This was mitigated by the effect of reversing, in 1994, $4.9 million of a $5.4 million reserve established in 1993 for a royalty dispute with the U.S. Minerals Management Service. Operating income for other energy operations increased $15.8 million in 1994 to $17.5 million. This was due largely to a 1993 charge of $6.3 million for costs associated with the Columbia Gas System Service Corporation's reengineering program and improved results by the propane and gas marketing companies. FOURTH QUARTER RESULTS Fourth quarter operating income for the transmission segment was $36.1 million, a $34.9 million decline from the same period in 1993, principally due to the $35 million reserve that 6 3 was recorded during the current period for regulatory issues. Several other unusual items recorded during both periods essentially offset one another and had no effect on year-to-year comparisons. The distribution segment had fourth quarter operating income of $56.3 million in 1994, essentially unchanged from 1993. The effect of warmer temperatures that were almost 20 percent warmer than the same period in 1993 and higher operating expenses was offset by pilot weather normalization adjustments and higher rates resulting from regulatory settlements. Lower gas prices and reduced oil and liquids production reduced oil and gas segment operating income in the fourth quarter to $3.2 million, down $12.2 million from 1993. Average gas prices were down 15 percent and oil and liquids production was off 13 percent during the current period. This was somewhat offset by a 10 percent increase in the average price for oil and liquids. Operating income of $4.4 million for the other energy operations reflected a small decrease of $600,000. ### 7 4 THE COLUMBIA GAS SYSTEM, INC. Summary of Financial and Operating Data
Three Months Twelve Months Ended December 31 Ended December 31 ----------------- ----------------- 1994 1993 1994 1993 ---- ---- ---- ---- Income Statement Data ($ millions) Total Operating Revenue . . . . . 769.0 1,010.2 2,833.4 3,391.2 Income Before Accounting Change . . . . . . . . . 73.2 69.4 246.2 152.2 Net Income . . . . . . . . . . . . . 73.2 69.4 240.6a 152.2 Operating Income (Loss) By Segment: Transmission . . . . . . . . . . 36.1b 71.0 205.4b 178.7c Distribution . . . . . . . . . . 56.3 56.2 128.3 146.4 Oil and Gas . . . . . . . . . . 3.2 15.4 30.6 53.6 Other Energy . . . . . . . . . . 4.4 5.0 17.5 1.7 Corporate . . . . . . . . . . . (2.4) (1.3) (8.6) (7.0) -------- -------- -------- --------- Total . . . . . . . . . . . . . 97.6 146.3 373.2 373.4 ======== ======== ======== ========= Per Share Data Earnings Before Accounting Change ($) . . . . . . . 1.45 1.37 4.87 3.01 Earnings on Common Stock ($) . . . . . . . . . . . . . 1.45 1.37 4.76a 3.01 Average Common Shares Outstanding (millions) . . . . . . . 50.6 50.6 50.6 50.6
a Includes the adoption of SFAS No. 112, "Employers Accounting for Postemployment Benefits". b Includes establishing a $35 million reserve for regulatory issues. c Includes a $57.5 million writedown in the investment in Columbia LNG Corporation's Cove Point LNG facility. 8 5 THE COLUMBIA GAS SYSTEM, INC. Summary of Financial and Operating Data (Continued)
Three Months Twelve Months Ended December 31 Ended December 31 ----------------- ----------------- 1994 1993 1994 1993 ---- ---- ---- ---- Operating Data Oil and Gas Volumes: Gas Production (billion cubic feet) . . . . . . . . . 16.9 16.9 66.7 71.5 Oil Production (000 barrels) . . . . . . . . . . . . . 823 945 3,611 3,603 Transmission (billion cubic feet): Transportation Columbia Transmission Market Area . . . . . . . . . . 288.4 299.8 1,038.6 895.9 Columbia Gulf Main-line . . . . . . . . . . . 114.6 154.1 590.3 579.9 Short-haul . . . . . . . . . . . 157.5 174.9 595.9 625.1 Intrasegment Eliminations . . . . . . . . . . . . . . (271.1) (255.2) (953.7) (928.7) ------- ------- -------- -------- Total Transportation . . . . . . . . . 289.4 373.6 1,271.1 1,172.2 ------- ------- -------- -------- Sales . . . . . . . . . . . . . . . . 0.0 17.4 0.9 183.7 ------- ------- -------- -------- Total Throughput . . . . . . . . . . . . . 289.4 391.0 1,272.0 1,355.9 ======= ======= ======== ======== Distribution (billion cubic feet): Gas Sales . . . . . . . . . . . . . . 75.8 93.6 280.5 292.3 Transportation . . . . . . . . . . . . 64.5 57.1 232.5 217.5 ------- ------- -------- -------- Total Throughput . . . . . . . . . . . . . . 140.3 150.7 513.0 509.8 ======= ======= ======== ======== Degree Days-Distribution Service Territory Actual . . . . . . . . . . . . . . 1,671 2,080 5,530 5,677 Normal . . . . . . . . . . . . . . 2,032 2,032 5,600 5,598 % Colder (warmer) than normal . . . . . . . . . . . . . . (18) 2 (1) 1 % Colder (warmer) than prior period . . . . . . . . . . . (20) 3 (3) 3
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