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 December 31, 2005 and 2004

 

4th Quarter

 

 

(in thousands, except per share data)

 

2005

 

2004

 

Change

Operating Revenues

 

 

  

 

 

 

Oil and gas operations

$

164,127

$

114,579

$

49,548

Natural gas distribution

 

170,954

 

116,632

 

54,322

Total operating revenues

 

335,081

 

231,211

 

103,870

Operating Expenses

 

 

 

 

 

 

Cost of gas

 

100,957

 

54,315

 

46,642

Operations & maintenance

 

73,600

 

64,024

 

9,576

DD&A

 

32,950

 

32,359

 

591

Taxes, other than income taxes

 

28,116

 

19,286

 

8,830

Accretion expense

 

682

 

630

 

52

Total operating expenses

 

236,305

 

170,614

 

65,691

Operating Income

 

98,776

 

60,597

 

38,179

Other Income (Expense)

 

 

 

 

 

 

Interest expense

 

(12,006)

 

(11,216)

 

(790)

Other income

 

469

 

748

 

(279)

Other expense

 

(72)

 

(295)

 

223

Total other expense

 

(11,609)

 

(10,763)

 

(846)

Income Before Income Taxes

 

87,167

 

49,834

 

37,333

Income tax expense

 

29,872

 

18,582

 

11,290

Income from Continuing Operations

 

57,295

 

31,252

 

26,043

Discontinued Operations, Net of Taxes

 

 

 

 

 

 

Income (loss) from discontinued operations

 

(4)

 

16

 

(20)

Gain on disposal

 

12

 

-

 

12

Income from Discontinued Operations

 

8

 

16

 

(8)

Net Income

$

57,303

$

31,268

$

26,035

Diluted Earnings Per Share*

 

 

 

 

 

 

Continuing operations

$

0.77

$

0.43

$

0.34

Discontinued operations

0.01

-

0.01

Net Income

$

0.78

$

0.43

$

0.35

Basic Earnings Per Share*

 

 

 

 

 

 

Continuing operations

$

0.78

$

0.43

$

0.35

Discontinued operations

 

-

 

-

 

-

Net Income

$

0.78

$

0.43

$

0.35

Diluted Avg. Common Shares Outstanding*

 

73,938

 

73,448

 

490

Basic Avg. Common Shares Outstanding*

 

73,166

 

72,756

 

410

Dividends Per Share*

$

0.10

$

0.09625

$

0.00375

* Shares and per share data have been restated to reflect a 2-for-1 stock split payable June 1, 2005

 

 

Consolidated Statements of Income (Unaudited)
For the 12 months ending December 31, 2005 and 2004

 

 

Year-to-date

 

 

(in thousands, except per share data)

 

2005

 

2004

 

Change

Operating Revenues

Oil and gas operations

$

527,694

$

410,117

$

117,577

Natural gas distribution

 

600,700

 

526,740

 

73,960

Total operating revenues

 

1,128,394

 

936,857

 

191,537

Operating Expenses

 

 

 

 

 

 

Cost of gas

 

315,622

 

259,889

 

55,733

Operations & maintenance

 

268,727

 

234,150

 

34,577

DD&A

 

131,691

 

120,777

 

10,914

Taxes, other than income taxes

 

93,983

 

74,933

 

19,050

Accretion expense

 

2,647

 

2,265

 

382

Total operating expenses

 

812,670

 

692,014

 

120,656

Operating Income

 

315,724

 

244,843

 

70,881

Other Income (Expense)

 

 

 

 

 

 

Interest expense

 

(46,800)

 

(42,743)

 

(4,057)

Other income

 

2,163

 

2,945

 

(782)

Other expense

 

(710)

 

(2,215)

 

1,505

Total other expense

 

(45,347)

 

(42,013)

 

(3,334)

Income Before Income Taxes

 

270,377

 

202,830

 

67,547

Income tax expense

 

97,491

 

75,525

 

21,966

Income from Continuing Operations

 

172,886

 

127,305

 

45,581

Discontinued Operations, Net of Taxes

 

 

 

 

 

 

Income (loss) from discontinued operations

 

(6)

 

163

 

(169)

Gain (loss) on disposal

 

132

 

(5)

 

137

Income (Loss) from Discontinued Operations

 

126

 

158

 

(32)

Net Income

$

173,012

$

127,463

$

45,549

Diluted Earnings Per Share*

 

 

 

 

 

 

Continuing operations

$

2.35

$

1.74

$

0.61

Discontinued operations

 

-

 

-

 

-

Net Income

$

2.35

$

1.74

$

0.61

Basic Earnings Per Share*

 

 

 

 

 

 

Continuing operations

$

2.37

$

1.75

$

0.62

Discontinued operations

 

-

 

0.01

 

(0.01)

Net Income

$

2.37

$

1.76

$

0.61

Diluted Avg. Common Shares Outstanding*

 

73,715

 

73,117

 

598

Basic Avg. Common Shares Outstanding*

 

73,052

 

72,547

 

505

Dividends Per Share*

$

0.40

$

0.3775

$

0.0225

* Shares and per share data have been restated to reflect a 2-for-1 stock split payable June 1, 2005

 

  

 

 

Selected Business Segment Data (Unaudited)

For the 3 months ending December 31, 2005 and 2004

4th Quarter

(in thousands, except sales price data)

 

2005

 

2004

 

Change

Oil and Gas Operations

 

 

 

 

 

 

Operating revenues from continuing operations

 

 

 

 

 

 

Natural gas

$

118,548

$

76,119

$

42,429

Oil

 

32,968

 

28,147

 

4,821

Natural gas liquids

 

9,936

 

8,682

 

1,254

Other

 

2,675

 

1,631

 

1,044

Total

$

164,127

$

114,579

$

49,548

Production volumes from continuing operations

 

 

 

 

 

 

Natural gas (MMcf)

 

15,177

 

15,101

 

76

Oil (MBbl)

 

836

 

876

 

(40)

Natural gas liquids (MMgal)

 

18.1

 

17.9

 

0.2

Production volumes from continuing ops. (MMcfe)

 

22,773

 

22,914

 

(141)

Total production volumes (MMcfe)

 

22,796

 

22,922

 

(126)

Revenue per unit of production from

continuing operations

 

 

 

 

 

 

Natural gas (Mcf)

$

7.81

$

5.04

$

2.77

Oil (barrel)

$

39.43

$

32.12

$

7.31

Natural gas liquids (gallon)

$

0.55

$

0.49

$

0.06

Other data from continuing operations

 

 

 

 

 

 

Lease operating expense (LOE)

 

 

 

 

 

 

LOE and other

$

28,730

$

20,893

$

7,837

Production taxes

16,721

11,030

5,691

Total

$

45,451

$

31,923

$

13,528

Depreciation, depletion and amortization

$

22,323

$

21,931

$

392

Capital expenditures

$

220,741

$

43,943

$

176,798

Exploration expense

$

108

$

193

$

(85)

Operating income

$

87,163

$

52,058

$

35,105

Natural Gas Distribution

 

 

 

 

 

 

Operating revenues

 

 

 

 

 

 

Residential

$

108,025

$

73,065

$

34,960

Commercial and industrial - small

 

50,345

 

30,994

 

19,351

Transportation

 

10,639

 

10,905

 

(266)

Other

 

1,945

 

1,668

 

277

Total

$

170,954

$

116,632

$

54,322

Gas delivery volumes (MMcf)

 

 

 

 

 

 

Residential

 

5,608

 

4,639

 

969

Commercial and industrial - small

 

3,001

 

2,477

 

524

Transportation

 

12,216

 

13,813

 

(1,597)

Total

 

20,825

 

20,929

 

(104)

Other data

 

 

 

 

 

 

Depreciation and amortization

$

10,627

$

10,428

$

199

Capital expenditures

$

19,714

$

16,118

$

3,596

Operating income

$

11,914

$

9,742

$

2,172

 

 

 

Selected Business Segment Data (Unaudited)

For the 12 months ending December 31, 2005 and 2004

 

Year-to-date

 

 

(in thousands, except sales price data)

 

2005

 

2004

 

Change

Oil and Gas Operations

 

 

 

 

 

 

Operating revenues from continuing operations

 

 

 

 

 

 

Natural gas

$

365,635

$

276,482

$

89,153

Oil

 

116,651

 

98,409

 

18,242

Natural gas liquids

 

38,455

 

30,902

 

7,553

Other

 

6,953

 

4,324

 

2,629

Total

$

527,694

$

410,117

$

117,577

Production volume from continuing operations

 

 

 

 

 

 

Natural gas (MMcf)

 

61,048

 

57,164

 

3,884

Oil (MBbl)

 

3,316

 

3,434

 

(118)

Natural gas liquids (MMgal)

 

70.5

 

68.2

 

2.3

Production volumes from continuing ops. (MMcfe)

 

91,020

 

87,513

 

3,507

Total production volumes (MMcfe)

 

91,099

 

87,606

 

3,493

Revenue per unit of production from

continuing operations

 

 

 

 

 

 

Natural gas (Mcf)

$

5.99

$

4.84

$

1.15

Oil (barrel)

$

35.18

$

28.66

$

6.52

Natural gas liquids (gallon)

$

0.55

$

0.45

$

0.10

Other data from continuing operations

 

 

 

 

 

 

Lease operating expense (LOE)

 

 

 

 

 

 

LOE and other

$

104,241

$

79,191

$

25,050

Production taxes

 

52,271

 

37,285

 

14,986

Total

$

156,512

$

116,476

$

40,036

Depreciation, depletion and amortization

$

89,340

$

80,896

$

8,444

Capital expenditures

$

353,712

$

403,936

$

(50,224)

Exploration expense

$

676

$

2,100

$

(1,424)

Operating income

$

243,876

$

180,379

$

63,497

Natural Gas Distribution

 

 

 

 

 

 

Operating revenues

 

 

 

 

 

 

Residential

$

384,753

$

340,229

$

44,524

Commercial and industrial - small

 

166,957

 

138,686

 

28,271

Transportation

 

43,291

 

40,221

 

3,070

Other

 

5,699

 

7,604

 

(1,905)

Total

$

600,700

$

526,740

$

73,960

Gas delivery volumes (MMcf)

 

 

 

 

 

 

Residential

 

24,601

 

25,383

 

(782)

Commercial and industrial - small

 

12,498

 

12,323

 

175

Transportation

 

49,850

 

54,385

 

(4,535)

Total

 

86,949

 

92,091

 

(5,142)

Other data

 

 

 

 

 

 

Depreciation and amortization

$

42,351

$

39,881

$

2,470

Capital expenditures

$

73,276

$

58,208

$

15,068

Operating income

$

72,920

$

66,199

$

6,721