EX-99.2 3 financials306.htm EXHIBIT 99.2 CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

Exhibit 99.2

Consolidated Statements of Income (Unaudited)
For the 3 months ending March 31, 2006 and 2005

 

1st Quarter

 

 

(in thousands, except per share data)

 

2006

 

2005

 

Change

Operating Revenues

 

 

 

 

 

 

Oil and gas operations

$

169,519

$

102,880

$

66,639

Natural gas distribution

 

318,623

 

258,128

 

60,495

Total operating revenues

 

488,142

 

361,008

 

127,134

Operating Expenses

 

 

 

 

 

 

Cost of gas

 

194,050

 

136,855

 

57,195

Operations and maintenance

 

74,483

 

60,405

 

14,078

Depreciation, depletion and amortization

 

34,297

 

31,425

 

2,872

Taxes, other than income taxes

 

32,679

 

26,550

 

6,129

Accretion expense

 

898

 

643

 

255

Total operating expenses

 

336,407

 

255,878

 

80,529

Operating Income

 

151,735

 

105,130

 

46,605

Other Income (Expense)

 

 

 

 

 

 

Interest expense

 

(13,177)

 

(11,670)

 

(1,507)

Other income

 

707

 

353

 

354

Other expense

 

(229)

 

(268)

 

39

Total other expense

 

(12,699)

 

(11,585)

 

(1,114)

Income From Continuing Operations Before Income Taxes

 

139,036

 

93,545

 

45,491

Income tax expense

 

51,535

 

34,603

 

16,932

Income From Continuing Operations

 

87,501

 

58,942

 

28,559

Discontinued Operations, Net of Taxes

 

 

 

 

 

 

Loss from discontinued operations

 

(7)

 

(19)

 

12

Gain on disposal of discontinued operations

 

-

 

123

 

(123)

Income (Loss) From Discontinued Operations

 

(7)

 

104

 

(111)

Net Income

$

87,494

$

59,046

$

28,448

Diluted Earnings Per Average Common Share*

 

 

 

 

 

 

Continuing operations

$

1.18

$

0.80

$

0.38

Discontinued operations

-

-

-

Net Income

$

1.18

$

0.80

$

0.38

Basic Earnings Per Average Common Share*

 

 

 

 

 

 

Continuing operations

$

1.19

$

0.81

$

0.38

Discontinued operations

 

-

 

-

 

-

Net Income

$

1.19

$

0.81

$

0.38

Diluted Avg. Common Shares Outstanding*

 

74,094

 

73,657

 

437

Basic Avg. Common Shares Outstanding*

 

73,268

 

72,952

 

316

Dividends Per Common Share*

$

0.11

$

0.10

$

0.01

 

 

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

  

Consolidated Statements of Income (Unaudited)
For the 12 months ending March 31, 2006 and 2005

 

Trailing 12 Months

 

 

(in thousands, except per share data)

 

2006

 

2005

 

Change

Operating Revenues

 

 

 

 

 

 

Oil and gas operations

$

594,334

$

416,942

$

177,392

Natural gas distribution

 

661,195

 

529,666

 

131,529

Total operating revenues

 

1,255,529

 

946,608

 

308,921

Operating Expenses

 

 

 

 

 

 

Cost of gas

 

372,817

 

258,006

 

114,811

Operations and maintenance

 

282,805

 

241,443

 

41,362

Depreciation, depletion and amortization

 

134,563

 

123,518

 

11,045

Taxes, other than income taxes

 

100,112

 

77,218

 

22,894

Accretion expense

 

2,902

 

2,418

 

484

Total operating expenses

 

893,199

 

702,603

 

190,596

Operating Income

 

362,330

 

244,005

 

118,325

Other Income (Expense)

 

 

 

 

 

 

Interest expense

 

(48,307)

 

(44,095)

 

(4,212)

Other income

 

2,517

 

2,436

 

81

Other expense

 

(671)

 

(1,458)

 

787

Total other expense

 

(46,461)

 

(43,117)

 

(3,344)

Income From Continuing Operations Before Income Taxes

 

315,869

 

200,888

 

114,981

Income tax expense

 

114,423

 

74,793

 

39,630

Income From Continuing Operations

 

201,446

 

126,095

 

75,351

Discontinued Operations, Net of Taxes

 

 

 

 

 

 

Income from discontinued operations

 

5

 

98

 

(93)

Gain on disposal of discontinued operations

 

9

 

131

 

(122)

Income From Discontinued Operations

 

14

 

229

 

(215)

Net Income

$

201,460

$

126,324

$

75,136

Diluted Earnings Per Average Common Share*

 

 

 

 

 

 

Continuing operations

$

2.73

$

1.72

$

1.01

Discontinued operations

 

-

 

-

 

-

Net Income

$

2.73

$

1.72

$

1.01

Basic Earnings Per Average Common Share*

 

 

 

 

 

 

Continuing operations

$

2.75

$

1.74

$

1.01

Discontinued operations

 

-

 

-

 

-

Net Income

$

2.75

$

1.74

$

1.01

Diluted Avg. Common Shares Outstanding*

 

73,904

 

73,252

 

652

Basic Avg. Common Shares Outstanding*

 

73,160

 

72,661

 

499

Dividends Per Common Share*

$

0.41

$

0.385

$

0.025

 

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

 

 

 

 

Selected Business Segment Data (Unaudited)

For the 3 months ending March 31, 2006 and 2005

1st Quarter

(in thousands, except sales price data)

 

2006

 

2005

 

Change

Oil and Gas Operations

 

 

 

 

 

 

Operating revenues

 

 

 

 

 

 

Natural gas

$

116,084

$

67,600

$

48,484

Oil

 

42,142

 

26,305

 

15,837

Natural gas liquids

 

9,677

 

8,145

 

1,532

Other

 

1,616

 

830

 

786

Total

$

169,519

$

102,880

$

66,639

Production volumes from continuing operations

 

 

 

 

 

 

Natural gas (MMcf)

 

15,327

 

14,682

 

645

Oil (MBbl)

 

917

 

819

 

98

Natural gas liquids (MMgal)

 

16.6

 

15.8

 

0.8

Production volumes from continuing ops. (MMcfe)

 

23,209

 

21,856

 

1,353

Total production volumes (MMcfe)

 

23,209

 

21,906

 

1,303

Revenue per unit of production including effects of all derivative instruments

 

 

 

 

 

 

Natural gas (Mcf)

$

7.57

$

4.60

$

2.97

Oil (barrel)

$

45.94

$

32.12

$

13.82

Natural gas liquids (gallon)

$

0.58

$

0.51

$

0.07

Other data from continuing operations

 

 

 

 

 

 

Lease operating expense (LOE)

 

 

 

 

 

 

LOE and other

$

33,862

$

22,749

$

11,113

Production taxes

13,093

10,204

2,889

Total

$

46,955

$

32,953

$

14,002

Depreciation, depletion and amortization

$

23,551

$

21,012

$

2,539

Capital expenditures

$

44,905

$

40,485

$

4,420

Exploration expenditures

$

109

$

324

$

(215)

Operating income

$

88,539

$

38,977

$

49,562

Natural Gas Distribution

 

 

 

 

 

 

Operating revenues

 

 

 

 

 

 

Residential

$

218,506

$

178,154

$

40,352

Commercial and industrial

 

84,557

 

65,300

 

19,257

Transportation

 

12,735

 

13,029

 

(294)

Other

 

2,825

 

1,645

 

1,180

Total

$

318,623

$

258,128

$

60,495

Gas delivery volumes (MMcf)

 

 

 

 

 

 

Residential

 

11,685

 

13,013

 

(1,328)

Commercial and industrial

 

4,941

 

5,295

 

(354)

Transportation

 

13,359

 

13,741

 

(382)

Total

 

29,985

 

32,049

 

(2,064)

Other data

 

 

 

 

 

 

Depreciation and amortization

$

10,746

$

10,413

$

333

Capital expenditures

$

18,845

$

14,802

$

4,043

Operating income

$

63,727

$

66,404

$

(2,677)

 

 

 

 

 

 

Selected Business Segment Data (Unaudited)

For the 12 months ending March 31, 2006 and 2005

 

 

Trailing 12 Months

 

 

(in thousands, except sales price data)

 

2006

 

2005

 

Change

Oil and Gas Operations

 

 

 

 

 

 

Operating revenues

 

 

 

 

 

 

Natural gas

$

414,120

$

278,778

$

135,342

Oil

 

132,488

 

101,027

 

31,461

Natural gas liquids

 

39,987

 

33,027

 

6,960

Other

 

7,739

 

4,110

 

3,629

Total

$

594,334

$

416,942

$

177,392

Production volumes from continuing operations

 

 

 

 

 

 

Natural gas (MMcf)

 

61,693

 

58,143

 

3,550

Oil (MBbl)

 

3,414

 

3,380

 

34

Natural gas liquids (MMgal)

 

71.4

 

68.8

 

2.6

Production volumes from continuing ops. (Mmcfe)

 

92,373

 

88,242

 

4,131

Total production volumes (Mmcfe)

 

92,402

 

88,351

 

4,051

Revenue per unit of production including effects of all derivative instruments

 

 

 

 

 

 

Natural gas (Mcf)

$

6.71

$

4.79

$

1.92

Oil (barrel)

$

38.80

$

29.89

$

8.91

Natural gas liquids (gallon)

$

0.56

$

0.48

$

0.08

Other data from continuing operations

 

 

 

 

 

 

Lease operating expense (LOE)

 

 

 

 

 

 

LOE and other

$

115,354

$

84,145

$

31,209

Production taxes

 

55,160

 

39,254

 

15,906

Total

$

170,514

$

123,399

$

47,115

Depreciation, depletion and amortization

$

91,879

$

82,834

$

9,045

Capital expenditures

$

358,132

$

422,977

$

(64,845)

Exploration expenditures

$

461

$

2,376

$

(1,915)

Operating income

$

293,439

$

175,295

$

118,144

Natural Gas Distribution

 

 

 

 

 

 

Operating revenues

 

 

 

 

 

 

Residential

$

425,105

$

341,723

$

83,382

Commercial and industrial

 

186,214

 

139,385

 

46,829

Transportation

 

42,996

 

41,875

 

1,121

Other

 

6,880

 

6,683

 

197

Total

$

661,195

$

529,666

$

131,529

Gas delivery volumes (MMcf)

 

 

 

 

 

 

Residential

 

23,274

 

23,286

 

(12)

Commercial and industrial

 

12,144

 

11,570

 

574

Transportation

 

49,468

 

53,527

 

(4,059)

Total

 

84,886

 

88,383

 

(3,497)

Other data

 

 

 

 

 

 

Depreciation and amortization

$

42,684

$

40,684

$

2,000

Capital expenditures

$

77,319

$

59,199

$

18,120

Operating income

$

70,245

$

70,589

$

(344)