-----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, Vi3TazLvrlUxmejAmHL9rkaGIczo46SOQL8L4uuviU5hyjW6aKv5igkm4ZBjn7vd k3BU8VTeevHh6Q71OGxfWQ== 0000893220-94-000081.txt : 19940216 0000893220-94-000081.hdr.sgml : 19940216 ACCESSION NUMBER: 0000893220-94-000081 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19940214 ITEM INFORMATION: 7 FILED AS OF DATE: 19940215 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COLUMBIA GAS SYSTEM INC CENTRAL INDEX KEY: 0000022099 STANDARD INDUSTRIAL CLASSIFICATION: 4923 IRS NUMBER: 131594808 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 34 SEC FILE NUMBER: 001-01098 FILM NUMBER: 94508396 BUSINESS ADDRESS: STREET 1: 20 MONTCHANIN RD CITY: WILMINGTON STATE: DE ZIP: 19807 BUSINESS PHONE: 3024295000 8-K 1 FORM 8-K DATED FEBRUARY 14, 1994 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 14, 1994 ----------------- 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 January 10, 1994, is incorporated herein by reference. Item 7. Financial Statements, Pro Forma Financial Information and Exhibits c. Exhibits 22. News Release dated February 10, 1993, published by the Registrant (filed herewith). 3 Contacts: Media - W. R. McLaughlin (302) 429-5443 H. W. Chaddock (302) 429-5261 Analysts - T. L. Hughes (302) 429-5363 K. P. Murphy (302) 429-5471 FOR IMMEDIATE RELEASE February 10, 1994 COLUMBIA SYSTEM REPORTS SUBSTANTIALLY HIGHER NET INCOME FOR 1993 WILMINGTON, DEL. -- The Columbia Gas System, Inc. (NYSE:CG), today announced net income for 1993 of $152.2 million, or $3.01 per share, as compared to net income of $51.2 million, or $1.01 per share in 1992. In the fourth quarter, the company reported net income of $69.4 million, or $1.37 per share, in 1993, as compared to $87.8 million, or $1.73, per share in the same period in 1992. The decrease was principally due to unusual charges. Columbia System Chairman John H. Croom said 1993's earnings benefitted from increased revenue generated by a new rate structure for the transmission companies, colder temperatures, increased oil and gas production and higher wellhead prices for natural gas. These items were partially offset by the negative impact of a $45 million after tax accrual for work required to investigate, characterize and, if necessary, remediate environmental sites, a $44.3 million after tax settlement with the IRS for the years 1983-1990, a $37.9 million after tax writedown in its investment in the Cove Point LNG facility, and a $12.6 million charge resulting from a Federal Energy Regulatory Commission ruling denying recovery of interest on certain refunds from pipeline suppliers. Both years also benefitted from not accruing interest expense on prepetition debt, which improved net income by $138.1 million and $148.5 million for 1993 and 1992 respectively. Adjusting for the effect of the unusual and bankruptcy related items and including the deduction of interest on prepetition debt, 1993 net income would have been $155.1 million, a $56.4 million increase over 1992 adjusted income of $98.7 million. Adjusted net income for the fourth quarter would have been $58.6 million, a $24.3 million increase over adjusted results of $34.3 million for the same period in 1992. (more) 4 Croom said Columbia's continued profitability illustrates the financial soundness of its basic business units and their operations. He pointed out that only twice in the past quarter century has Columbia failed to show a profit and in each of those years the losses were attributable to extraordinary charges relating to gas purchase contracts. The Columbia Gas System, Inc., and its principal pipeline subsidiary, Columbia Gas Transmission Corp., have been operating as debtors in possession under Chapter 11 of the U.S. Bankruptcy Code since July 31, 1991. No other subsidiaries are operating under Chapter 11. TWELVE MONTHS RESULTS The oil and gas segment had operating income of $53.6 million in 1993. This compares to an operating loss of $101.2 million in 1992 that was mainly the result of a $126.4 million writedown in the carrying value of oil and gas assets due to low energy prices. The segment benefitted from the positive effect of lower depletion expense, increased oil and gas production, and higher gas prices in 1993. These were partially offset by lower oil prices and the recording of a reserve for a royalty dispute with the U.S. Minerals Management Service. Operating income for the transmission segment in 1993 was $178.7 million, an increase of $48.8 million over 1992. This increase was partially the result of the Federal Energy Regulatory Commission's approval of a favorable settlement of Columbia Transmission's rates which included the beneficial effect of a new rate structure. After adjusting 1992 throughput for a one-time gas exchange arrangement with its customers, Columbia Transmission's throughput reflected normal weather in 1993, resulting in slightly increased revenues and higher margins. These items combined to increase revenue in excess of $30 million. The year-to- year comparison also benefitted from the recovery of $20.3 million in surcharge revenues from customers for gas costs where expenses had been recorded in prior years and the effect of a $15 million expense incurred in 1992 resulting from settlements with gas suppliers. Offsetting these improvements was the writedown in the investment in the Cove Point LNG facility. Operating income for the distribution segment in 1993 increased $8.7 million over the previous year to $146.4 million primarily reflecting higher throughput due to colder weather and the effect of new rates. Mitigating these improvements were higher operating expenses including costs associated with streamlining corporate functions and studies that have been initiated to enhance customer service. (more) 5 FOURTH QUARTER RESULTS The oil and gas segment had operating income of $15.4 million in the fourth of quarter of 1993, a $500,000 increase over the same period in 1992. Lower operation and maintenance expense was largely offset by lower natural gas and oil prices that prevailed during the current period. The transmission segment's operating income for the fourth quarter of 1993 was $71 million, a decrease of $17.8 million from the same period in 1992. Additional revenue of $19.7 million resulting from a customer surcharge and $5.5 million of increased revenues due to the new rate design were more than offset by the additional environmental accruals. The distribution companies had operating income of $56.2 million in the fourth quarter of 1993, a $8.9 million increase over the 1992 period. Lower operating costs, the beneficial effect of favorable rate settlements and higher throughput due to weather that was three percent colder than the same period in 1992 accounted for the improvement. # # # 6 THE COLUMBIA GAS SYSTEM, INC. Summary of Financial and Operating Data
Three Months Twelve Months Ended December 31 Ended December 31 ----------------- ----------------- 1993 1992 1993 1992 ---- ---- ---- ---- Income Statement Data ($ millions) Total Operating Revenue . . . . . . . 1,010.2 935.5 3,391.2 2,922.0 Income (Loss) Before Extraordinary Item . . . . . . . . . 69.4 87.8 152.2 90.9 Net Income (Loss) . . . . . . . . . . 69.4 87.8 152.2 51.2 Operating Income (Loss) By Segment: Oil and Gas . . . . . . . . . . 15.4 14.9 53.6 (101.2) Transmission . . . . . . . . . . 71.0 88.8 178.7 129.9 Distribution . . . . . . . . . . 56.2 47.3 146.4 137.7 Other Energy . . . . . . . . . . 5.0 4.1 1.7 6.8 Corporate . . . . . . . . . . . (1.3) (4.8) (7.0) (10.3) -------- -------- -------- -------- Total . . . . . . . . . . . . . 146.3 150.3 373.4 162.9 ======== ======== ======== ======== Per Share Data Earnings (Loss) Before Extraordinary Item ($) . . . . . . 1.37 1.73 3.01 1.79 Earnings (Loss) on Common Stock ($) . . . . . . . . . . . . . 1.37 1.73 3.01 1.01 Dividends on Common Stock ($) . . . . . . . . . . . . . - - - - Average Common Shares Outstanding (millions) . . . . . . . 50.6 50.6 50.6 50.6 Operating Data Oil and Gas Volumes: Gas Production (billion cubic feet) . . . . . 16.9 17.3 71.5 69.2 Oil Production (000 barrels) . . . . . . . . . 945 874 3,603 3,061 Transmission (billion cubic feet): Transportation Columbia Transmission Market Area . . . . . . . . 299.8 237.0 895.9 909.0 Columbia Gulf Main-line . . . . . . . . . 154.1 150.6 579.9 574.3 Short-haul . . . . . . . . 174.9 157.0 625.1 625.0 Intrasegment Eliminations . . . . . . . . . . (255.2) (238.9) (928.7) (930.0) -------- -------- -------- -------- Total Transportation . . . . . . 373.6 305.7 1,172.2 1,178.3 -------- -------- -------- -------- Sales . . . . . . . . . . . . . . . . 17.4 31.4 183.7 196.0 -------- -------- -------- -------- Total Throughput . . . . . . . . . . 391.0 337.1 1,355.9 1,374.3 ======== ======== ======== ========
7 THE COLUMBIA GAS SYSTEM, INC. Summary of Financial and Operating Data (Continued)
Three Months Twelve Months Ended December 31 Ended December 31 ----------------- ----------------- 1993 1992 1993 1992 ---- ---- ---- ---- Distribution (billion cubic feet): Gas Sales . . . . . . . . . . . . 93.6 94.3 292.3 283.0 Transportation . . . . . . . . . . . 57.1 52.1 217.5 203.7 -------- -------- -------- -------- Total Throughput . . . . . . . . . . . . 150.7 146.4 509.8 486.7 ======== ======== ======== ======== Degree Days-Distribution Service Territory Actual . . . . . . . . . . . . 2,080 2,016 5,677 5,507 Normal . . . . . . . . . . . . . 2,032 2,039 5,598 5,624 % Colder (warmer) than normal . . . . . . . . . . . . 2 (1) 1 (2) % Colder (warmer) than prior period . . . . . . . . . . . . 3 5 3 10
8 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 & Controller Date: February 14, 1994 -----END PRIVACY-ENHANCED MESSAGE-----