EX-99.2 3 exhibit992.htm EXHIBIT 99.2 CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

EXHIBIT 99.2

Consolidated Statements of Income (Unaudited)
For the 3 months ending September 30, 2005 and 2004

 

3rd Quarter

 

 

(in thousands, except per share data)

 

2005

 

2004

 

Change

Operating Revenues

 

 

  

 

 

 

Oil and gas operations

$

126,260

$

104,181

$

22,079

Natural gas distribution

 

64,421

 

62,162

 

2,259

Total operating revenues

 

190,681

 

166,343

 

24,338

Operating Expenses

 

 

 

 

 

 

Cost of gas

 

27,386

 

26,545

 

841

Operations & maintenance

 

67,818

 

60,780

 

7,038

DD&A

 

34,215

 

30,849

 

3,366

Taxes, other than income taxes

 

19,523

 

15,343

 

4,180

Accretion expense

 

668

 

613

 

55

Total operating expenses

 

149,610

 

134,130

 

15,480

Operating Income

 

41,071

 

32,213

 

8,858

Other Income (Expense)

 

 

 

 

 

 

Interest expense

 

(11,600)

 

(10,515)

 

(1,085)

Other income

 

822

 

702

 

120

Other expense

 

(104)

 

(225)

 

121

Total other expense

 

(10,882)

 

(10,038)

 

(844)

Income Before Income Taxes

 

30,189

 

22,175

 

8,014

Income tax expense

 

11,116

 

8,498

 

2,618

Income from Continuing Operations

 

19,073

 

13,677

 

5,396

Discontinued Operations, Net of Taxes

 

 

 

 

 

 

Income from discontinued operations

 

3

 

55

 

(52)

Gain on disposal

 

10

 

8

 

2

Income from Discontinued Operations

 

13

 

63

 

(50)

Net Income

$

19,086

$

13,740

$

5,346

Diluted Earnings Per Share

 

 

 

 

 

 

Continuing operations

$

0.26

$

0.19

$

0.07

Discontinued operations

-

-

-

Net Income

$

0.26

$

0.19

$

0.07

Basic Earnings Per Share

 

 

 

 

 

 

Continuing operations

$

0.26

$

0.19

$

0.07

Discontinued operations

 

-

 

-

 

-

Net Income

$

0.26

$

0.19

$

0.07

Diluted Avg. Common Shares Outstanding

 

73,878

 

73,401

 

477

Basic Avg. Common Shares Outstanding

 

73,024

 

72,537

 

487

Dividends Per Share

$

0.10

$

0.09625

$

0.00375

 

 

Consolidated Statements of Income (Unaudited)
For the 9 months ending September 30, 2005 and 2004

 

 

Year-to-date

 

 

(in thousands, except per share data)

 

2005

 

2004

 

Change

Operating Revenues

 

 

  

 

 

 

Oil and gas operations

$

363,567

$

295,538

$

68,029

Natural gas distribution

 

429,746

 

410,108

 

19,638

Total operating revenues

 

793,313

 

705,646

 

87,667

Operating Expenses

 

 

 

 

 

 

Cost of gas

 

214,665

 

205,574

 

9,091

Operations & maintenance

 

195,127

 

170,126

 

25,001

DD&A

 

98,741

 

88,418

 

10,323

Taxes, other than income taxes

 

65,867

 

55,647

 

10,220

Accretion expense

 

1,965

 

1,635

 

330

Total operating expenses

 

576,365

 

521,400

 

54,965

Operating Income

 

216,948

 

184,246

 

32,702

Other Income (Expense)

 

 

 

 

 

 

Interest expense

 

(34,794)

 

(31,527)

 

(3,267)

Other income

 

1,694

 

2,197

 

(503)

Other expense

 

(638)

 

(1,920)

 

1,282

Total other expense

 

(33,738)

 

(31,250)

 

(2,488)

Income Before Income Taxes

 

183,210

 

152,996

 

30,214

Income tax expense

 

67,619

 

56,943

 

10,676

Income from Continuing Operations

 

115,591

 

96,053

 

19,538

Discontinued Operations, Net of Taxes

 

 

 

 

 

 

Income (loss) from discontinued operations

 

(2)

 

147

 

(149)

Gain (loss) on disposal

 

120

 

(5)

 

125

Income from Discontinued Operations

 

118

 

142

 

(24)

Net Income

$

115,709

$

96,195

$

19,514

Diluted Earnings Per Share

 

 

 

 

 

 

Continuing operations

$

1.57

$

1.31

$

0.26

Discontinued operations

 

-

 

-

 

-

Net Income

$

1.57

$

1.31

$

0.26

Basic Earnings Per Share

 

 

 

 

 

 

Continuing operations

$

1.58

$

1.33

$

0.25

Discontinued operations

 

.01

 

-

 

0.01

Net Income

$

1.59

$

1.33

$

0.26

Diluted Avg. Common Shares Outstanding

 

73,725

 

73,258

 

467

Basic Avg. Common Shares Outstanding

 

72,998

 

72,449

 

549

Dividends Per Share

$

0.30

$

0.28125

$

0.01875

 

 

 

 Consolidated Statements of Income (Unaudited)
For the 12 months ending September 30, 2005 and 2004

 

Trailing 12 Months

 

 

(in thousands, except per share data)

 

2005

 

2004

 

Change

Operating Revenues

 

 

  

 

 

 

Oil and gas operations

$

478,146

$

382,241

$

95,905

Natural gas distribution

 

546,378

 

525,673

 

20,705

Total operating revenues

 

1,024,524

 

907,914

 

116,610

Operating Expenses

 

 

 

 

 

 

Cost of gas

 

268,980

 

260,352

 

8,628

Operations & maintenance

 

259,151

 

229,307

 

29,844

DD&A

 

131,100

 

117,754

 

13,346

Taxes, other than income taxes

 

85,153

 

71,357

 

13,796

Accretion expense

 

2,595

 

2,106

 

489

Total operating expenses

 

746,979

 

680,876

 

66,103

Operating Income

 

277,545

 

227,038

 

50,507

Other Income (Expense)

 

 

 

 

 

 

Interest expense

 

(46,010)

 

(42,080)

 

(3,930)

Other income

 

2,408

 

3,533

 

(1,125)

Other expense

 

(899)

 

(3,679)

 

2,780

Total other expense

 

(44,501)

 

(42,226)

 

(2,275)

Income Before Income Taxes

 

233,044

 

184,812

 

48,232

Income tax expense

 

86,201

 

67,752

 

18,449

Income from Continuing Operations

 

146,843

 

117,060

 

29,783

Discontinued Operations, Net of Taxes

 

 

 

 

 

 

Income from discontinued operations

 

14

 

172

 

(158)

Gain (loss) on disposal

 

120

 

(207)

 

327

Income (Loss) from Discontinued Operations

 

134

 

(35)

 

169

Net Income

$

146,977

$

117,025

$

29,952

Diluted Earnings Per Share

 

 

 

 

 

 

Continuing operations

$

2.00

$

1.60

$

0.4

Discontinued operations

 

-

 

-

 

-

Net Income

$

2.00

$

1.60

$

0.4

Basic Earnings Per Share

 

 

 

 

 

 

Continuing operations

$

2.01

$

1.62

$

0.39

Discontinued operations

0.01

-

0.01

Net Income

$

2.02

$

1.62

$

0.4

Diluted Avg. Common Shares Outstanding

 

73,596

 

73,079

 

517

Basic Avg. Common Shares Outstanding

 

72,927

 

72,337

 

590

Dividends Per Share

$

0.3963

$

0.3738

$

0.0225

 

 

 

 

Selected Business Segment Data (Unaudited)

For the 3 months ending September 30, 2005 and 2004

3rd Quarter

(in thousands, except sales price data)

 

2005

 

2004

 

Change

Oil and Gas Operations

 

 

 

 

 

 

Operating revenues

 

 

 

 

 

 

Natural gas

$

85,087

$

69,745

$

15,342

Oil

 

28,879

 

24,553

 

4,326

Natural gas liquids

 

10,721

 

9,065

 

1,656

Other

 

1,573

 

818

 

755

Total

$

126,260

$

104,181

$

22,079

Production volumes from continuing operations

 

 

 

 

 

 

Natural gas (MMcf)

 

16,013

 

14,632

 

1,381

Oil (MBbl)

 

813

 

854

 

(41)

Natural gas liquids (Mgal)

 

18,109

 

18,158

 

(49)

Production volumes from continuing ops. (MMcfe)

 

23,480

 

22,349

 

1,131

Total sales volume (MMcfe)

 

23,478

 

22,374

 

1,104

Average sales price from continuing ops.

 

 

 

 

 

 

Natural gas (Mcf)

$

5.31

$

4.77

$

0.54

Oil (barrel)

$

35.51

$

28.76

$

6.75

Natural gas liquids (gallon)

$

0.59

$

0.50

$

0.09

Other data

 

 

 

 

 

 

Lease operating expense (LOE)

 

 

 

 

 

 

LOE and other

$

27,396

$

22,068

$

5,328

Production taxes

13,477

9,565

3,912

Total

$

40,873

$

31,633

$

9,240

DD&A

$

23,547

$

20,864

$

2,683

Capital expenditures

$

44,209

$

288,585

$

(244,376)

Exploration expense

$

74

$

1,807

$

(1,733)

Operating income

$

52,368

$

42,584

$

9,784

Natural Gas Distribution

 

 

 

 

 

 

Operating revenues

 

 

 

 

 

 

Residential

$

33,795

$

33,860

$

(65)

Commercial and industrial - small

 

21,732

 

18,516

 

3,216

Transportation

 

9,378

 

8,838

 

540

Other

 

(484)

 

948

 

(1,432)

Total

$

64,421

$

62,162

$

2,259

Gas delivery volumes (MMcf)

 

 

 

 

 

 

Residential

 

1,810

 

1,874

 

(64)

Commercial

 

1,791

 

1,570

 

221

Transportation

 

11,951

 

12,790

 

(839)

Total

 

15,552

 

16,234

 

(682)

Other data

 

 

 

 

 

 

Depreciation and amortization

$

10,668

$

9,985

$

683

Capital expenditures

$

17,863

$

11,869

$

5,994

Operating income

$

(11,025)

$

(10,130)

$

(895)

 

 

 

Selected Business Segment Data (Unaudited)

For the 9 months ending September 30, 2005 and 2004

 

Year-to-date

 

 

(in thousands, except sales price data)

 

2005

 

2004

 

Change

Oil and Gas Operations

 

 

 

 

 

 

Operating revenues

 

 

 

 

 

 

Natural gas

$

247,087

$

200,363

$

46,724

Oil

 

83,683

 

70,262

 

13,421

Natural gas liquids

 

28,519

 

22,220

 

6,299

Other

 

4,278

 

2,693

 

1,585

Total

$

363,567

$

295,538

$

68,029

Production volume from continuing operations

 

 

 

 

 

 

Natural gas (MMcf)

 

45,871

 

42,063

 

3,808

Oil (MBbl)

 

2,480

 

2,558

 

(78)

Natural gas liquids (Mgal)

 

52,486

 

50,323

 

2,163

Production volumes from continuing ops. (MMcfe)

 

68,247

 

64,599

 

3,648

Total sales volume (MMcfe)

 

68,303

 

64,684

 

3,619

Average sales price from continuing ops.

 

 

 

 

 

 

Natural gas (Mcf)

$

5.39

$

4.76

$

0.63

Oil (barrel)

$

33.75

$

27.47

$

6.28

Natural gas liquids (gallon)

$

0.54

$

0.44

$

0.10

Other data

 

 

 

 

 

 

Lease operating expense (LOE)

 

 

 

 

 

 

LOE and other

$

75,511

$

58,298

$

17,213

Production taxes

 

35,550

 

26,255

 

9,295

Total

$

111,061

$

84,553

$

26,508

DD&A

$

67,017

$

58,965

$

8,052

Capital expenditures

$

132,718

$

359,993

$

(227,275)

Exploration expense

$

568

$

1,907

$

(1,339)

Operating income

$

156,713

$

128,321

$

28,392

Natural Gas Distribution

 

 

 

 

 

 

Operating revenues

 

 

 

 

 

 

Residential

$

276,728

$

267,164

$

9,564

Commercial and industrial - small

 

116,612

 

107,692

 

8,920

Transportation

 

32,652

 

29,316

 

3,336

Other

 

3,754

 

5,936

 

(2,182)

Total

$

429,746

$

410,108

$

19,638

Gas delivery volumes (MMcf)

 

 

 

 

 

 

Residential

 

18,992

 

20,743

 

(1,751)

Commercial

 

9,497

 

9,845

 

(348)

Transportation

 

37,634

 

40,571

 

(2,937)

Total

 

66,123

 

71,159

 

(5,036)

Other data

 

 

 

 

 

 

Depreciation and amortization

$

31,724

$

29,453

$

2,271

Capital expenditures

$

53,562

$

42,090

$

11,472

Operating income

$

61,009

$

56,459

$

4,550

 

 

 

 

Selected Business Segment Data (Unaudited)

For the 12 months ending September 30, 2005 and 2004

Trailing 12 Months

(in thousands, except sales price data)

 

2005

 

2004

 

Change

Oil and Gas Operations

 

 

 

 

 

 

Operating revenues

 

 

 

 

 

 

Natural gas

$

323,206

$

257,731

$

65,475

Oil

 

111,830

 

92,339

 

19,491

Natural gas liquids

 

37,201

 

29,214

 

7,987

Other

 

5,909

 

2,957

 

2,952

Total

$

478,146

$

382,241

$

95,905

Production volumes from continuing operations

 

 

 

 

 

 

Natural gas (MMcf)

 

60,972

 

55,998

 

4,974

Oil (MBbl)

 

3,356

 

3,430

 

(74)

Natural gas liquids (Mgal)

 

70,371

 

67,445

 

2,926

Production volumes from continuing ops. (MMcfe)

 

91,161

 

86,212

 

4,949

Total sales volume (MMcfe)

 

91,225

 

86,328

 

4,897

Average sales price from continuing ops.

 

 

 

 

 

 

Natural gas (Mcf)

$

5.30

$

4.60

$

0.70

Oil (barrel)

$

33.32

$

26.92

$

6.40

Natural gas liquids (gallon)

$

0.53

$

0.43

$

0.10

Other data

 

 

 

 

 

 

Lease operating expense (LOE)

 

 

 

 

 

 

LOE and other

$

96,404

$

78,177

$

18,227

Production taxes

46,580

33,256

13,324

Total

$

142,984

$

111,433

$

31,551

DD&A

$

88,948

$

78,662

$

10,286

Capital expenditures

$

423,655

$

346,699

$

76,956

Exploration expense

$

761

$

1,980

$

(1,219)

Operating income

$

208,771

$

160,231

$

48,540

Natural Gas Distribution

 

 

 

 

 

 

Operating revenues

 

 

 

 

 

 

Residential

$

349,793

$

341,720

$

8,073

Commercial and industrial - small

 

147,606

 

136,775

 

10,831

Transportation

 

43,557

 

39,503

 

4,054

Other

 

5,422

 

7,675

 

(2,253)

Total

$

546,378

$

525,673

$

20,705

Gas delivery volumes (MMcf)

 

 

 

 

 

 

Residential

 

23,632

 

26,141

 

(2,509)

Commercial

 

11,975

 

12,411

 

(436)

Transportation

 

51,447

 

54,567

 

(3,120)

Total

 

87,054

 

93,119

 

(6,065)

Other data

 

 

 

 

 

 

Depreciation and amortization

$

42,152

$

39,092

$

3,060

Capital expenditures

$

69,680

$

57,835

$

11,845

Operating income

$

70,749

$

68,694

$

2,055