EX-99.2 3 financials906.htm EXHIBIT 99.2 CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

Exhibit 99.2

Consolidated Statements of Income (Unaudited)
For the 3 months ending September 30, 2006 and 2005

 

3rd Quarter

 

 

(in thousands, except per share data)

 

2006

 

2005

 

Change

Operating Revenues

 

 

 

 

 

 

Oil and gas operations

$

171,516

$

126,260

$

45,256

Natural gas distribution

 

71,195

 

64,421

 

6,774

Total operating revenues

 

242,711

 

190,681

 

52,030

Operating Expenses

 

 

 

 

 

 

Cost of gas

 

32,311

 

27,386

 

4,925

Operations & maintenance

 

78,836

 

67,818

 

11,018

Depreciation, depletion and amortization

 

35,676

 

34,215

 

1,461

Taxes, other than income taxes

 

19,338

 

19,523

 

(185)

Accretion expense

 

881

 

668

 

213

Total operating expenses

 

167,042

 

149,610

 

17,432

Operating Income

 

75,669

 

41,071

 

34,598

Other Income (Expense)

 

 

 

 

 

 

Interest expense

 

(12,267)

 

(11,600)

 

(667)

Other income

 

448

 

822

 

(374)

Other expense

 

(207)

 

(104)

 

(103)

Total other expense

 

(12,026)

 

(10,882)

 

(1,144)

Income from Continuing Operations Before Income Taxes

 

63,643

 

30,189

 

33,454

Income tax expense

 

22,346

 

11,116

 

11,230

Income from Continuing Operations

 

41,297

 

19,073

 

22,224

Discontinued Operations, Net of Taxes

 

 

 

 

 

 

Income from discontinued operations

 

2

 

3

 

(1)

Gain on disposal of discontinued operations

 

53

 

10

 

43

Income from Discontinued Operations

 

55

 

13

 

42

Net Income

$

41,352

$

19,086

$

22,266

Diluted Earnings Per Average Common Share

 

 

 

 

 

 

Continuing operations

$

0.56

$

0.26

$

0.30

Discontinued operations

-

-

-

Net Income

$

0.56

$

0.26

$

0.30

Basic Earnings Per Average Common Share

 

 

 

 

 

 

Continuing operations

$

0.57

$

0.26

$

0.31

Discontinued operations

 

-

 

-

 

-

Net Income

$

0.57

$

0.26

$

0.31

Diluted Avg. Common Shares Outstanding

 

73,191

 

73,878

 

(687)

Basic Avg. Common Shares Outstanding

 

72,228

 

73,024

 

(796)

Dividends Per Common Share

$

0.11

$

0.10

$

0.01

 

 

Consolidated Statements of Income (Unaudited)
For the 9 months ending September 30, 2006 and 2005

 

 

Year-to-date

 

 

(in thousands, except per share data)

 

2006

 

2005

 

Change

Operating Revenues

 

 

 

 

 

 

Oil and gas operations

$

510,213

$

363,568

$

146,645

Natural gas distribution

 

503,014

 

429,746

 

73,268

Total operating revenues

 

1,013,227

 

793,314

 

219,913

Operating Expenses

 

 

 

 

 

 

Cost of gas

 

284,192

 

214,665

 

69,527

Operations & maintenance

 

231,720

 

195,127

 

36,593

Depreciation, depletion and amortization

 

104,472

 

98,741

 

5,731

Taxes, other than income taxes

 

73,450

 

65,867

 

7,583

Accretion expense

 

2,691

 

1,965

 

726

Total operating expenses

 

696,525

 

576,365

 

120,160

Operating Income

 

316,702

 

216,949

 

99,753

Other Income (Expense)

 

 

 

 

 

 

Interest expense

 

(37,810)

 

(34,794)

 

(3,016)

Other income

 

1,410

 

1,694

 

(284)

Other expense

 

(708)

 

(638)

 

(70)

Total other expense

 

(37,108)

 

(33,738)

 

(3,370)

Income from Continuing Operations Before Income Taxes

 

279,594

 

183,211

 

96,383

Income tax expense

 

101,194

 

67,619

 

33,575

Income from Continuing Operations

 

178,400

 

115,592

 

62,808

Discontinued Operations, Net of Taxes

 

 

 

 

 

 

Loss from discontinued operations

 

(6)

 

(3)

 

(3)

Gain on disposal of discontinued operations

 

53

 

120

 

(67)

Income from Discontinued Operations

 

47

 

117

 

(70)

Net Income

$

178,447

$

115,709

$

62,738

Diluted Earnings Per Average Common Share

 

 

 

 

 

 

Continuing operations

$

2.42

$

1.57

$

0.85

Discontinued operations

 

-

 

-

 

-

Net Income

$

2.42

$

1.57

$

0.85

Basic Earnings Per Average Common Share

 

 

 

 

 

 

Continuing operations

$

2.45

$

1.58

$

0.87

Discontinued operations

 

-

 

0.01

 

(0.01)

Net Income

$

2.45

$

1.59

$

0.86

Diluted Avg. Common Shares Outstanding

 

73,671

 

73,725

 

(54)

Basic Avg. Common Shares Outstanding

 

72,839

 

72,998

 

(159)

Dividends Per Common Share

$

0.33

$

0.30

$

0.03

 

 

Consolidated Statements of Income (Unaudited)
For the 12 months ending September 30, 2006 and 2005

 

Trailing 12 Months

 

 

(in thousands, except per share data)

 

2006

 

2005

 

Change

Operating Revenues

 

 

 

 

 

 

Oil and gas operations

$

674,340

$

478,147

$

196,193

Natural gas distribution

 

673,968

 

546,378

 

127,590

Total operating revenues

 

1,348,308

 

1,024,525

 

323,783

Operating Expenses

 

 

 

 

 

 

Cost of gas

 

385,149

 

268,980

 

116,169

Operations & maintenance

 

305,320

 

259,151

 

46,169

Depreciation, depletion and amortization

 

137,422

 

131,100

 

6,322

Taxes, other than income taxes

 

101,566

 

85,153

 

16,413

Accretion expense

 

3,373

 

2,595

 

778

Total operating expenses

 

932,830

 

746,979

 

185,851

Operating Income

 

415,478

 

277,546

 

137,932

Other Income (Expense)

 

 

 

 

 

 

Interest expense

 

(49,816)

 

(46,010)

 

(3,806)

Other income

 

1,879

 

2,408

 

(529)

Other expense

 

(780)

 

(899)

 

119

Total other expense

 

(48,717)

 

(44,501)

 

(4,216)

Income from Continuing Operations Before Income Taxes

 

366,761

 

233,045

 

133,716

Income tax expense

 

131,066

 

86,201

 

44,865

Income from Continuing Operations

 

235,695

 

146,844

 

88,851

Discontinued Operations, Net of Taxes

 

 

 

 

 

 

Income (loss) from discontinued operations

 

(10)

 

13

 

(23)

Gain on disposal of discontinued operations

 

65

 

120

 

(55)

Income from Discontinued Operations

 

55

 

133

 

(78)

Net Income

$

235,750

$

146,977

$

88,773

Diluted Earnings Per Average Common Share

 

 

 

 

 

 

Continuing operations

$

3.20

$

2.00

$

1.20

Discontinued operations

 

-

 

-

 

-

Net Income

$

3.20

$

2.00

$

1.20

Basic Earnings Per Average Common Share

 

 

 

 

 

 

Continuing operations

$

3.23

$

2.01

$

1.22

Discontinued operations

-

0.01

(0.01)

Net Income

$

3.23

$

2.02

$

1.21

Diluted Avg. Common Shares Outstanding

 

73,744

 

73,596

 

148

Basic Avg. Common Shares Outstanding

 

72,934

 

72,927

 

7

Dividends Per Common Share

$

0.43

$

0.3963

$

0.0337

 

 

  

Selected Business Segment Data (Unaudited)

For the 3 months ending September 30, 2006 and 2005

3rd Quarter

(in thousands, except sales price data)

 

2006

 

2005

 

Change

Oil and Gas Operations

 

 

 

 

 

 

Operating revenues

 

 

 

 

 

 

Natural gas

$

108,795

$

85,087

$

23,708

Oil

 

46,529

 

28,879

 

17,650

Natural gas liquids

 

14,668

 

10,721

 

3,947

Other

 

1,524

 

1,573

 

(49)

Total

$

171,516

$

126,260

$

45,256

Production volumes from continuing operations

 

 

 

 

 

 

Natural gas (MMcf)

 

16,004

 

16,013

 

(9)

Oil (MBbl)

 

905

 

813

 

92

Natural gas liquids (MMgal)

 

20.4

 

18.1

 

2.3

Production volumes from continuing ops. (MMcfe)

 

24,340

 

23,480

 

860

Total production volumes (MMcfe)

 

24,340

 

23,478

 

862

Revenue per unit of production including effects of all derivative instruments

 

 

 

 

 

 

Natural gas (Mcf)

$

6.80

$

5.31

$

1.49

Oil (barrel)

$

51.43

$

35.51

$

15.92

Natural gas liquids (gallon)

$

0.72

$

0.59

$

0.13

Other data from continuing operations

 

 

 

 

 

 

Lease operating expense (LOE)

 

 

 

 

 

 

LOE and other

$

35,305

$

27,396

$

7,909

Production taxes

12,602

13,477

(875)

Total

$

47,907

$

40,873

$

7,034

Depreciation, depletion and amortization

$

24,475

$

23,547

$

928

Capital expenditures

$

61,049

$

44,209

$

16,840

Exploration expenditures

$

1,986

$

74

$

1,912

Operating income

$

85,239

$

52,368

$

32,871

Natural Gas Distribution

 

 

 

 

 

 

Operating revenues

 

 

 

 

 

 

Residential

$

36,635

$

33,795

$

2,840

Commercial and industrial

 

22,300

 

21,732

 

568

Transportation

 

10,115

 

9,378

 

737

Other

 

2,145

 

(484)

 

2,629

Total

$

71,195

$

64,421

$

6,774

Gas delivery volumes (MMcf)

 

 

 

 

 

 

Residential

 

1,601

 

1,810

 

(209)

Commercial and industrial

 

1,534

 

1,791

 

(257)

Transportation

 

12,999

 

11,951

 

1,048

Total

 

16,134

 

15,552

 

582

Other data

 

 

 

 

 

 

Depreciation and amortization

$

11,201

$

10,668

$

533

Capital expenditures

$

18,512

$

17,863

$

649

Operating income (loss)

$

(8,921)

$

(11,025)

$

2,104

  

 

Selected Business Segment Data (Unaudited)

For the 9 months ending September 30, 2006 and 2005

 

Year-to-date

 

 

(in thousands, except sales price data)

 

2006

 

2005

 

Change

Oil and Gas Operations

 

 

 

 

 

 

Operating revenues

 

 

 

 

 

 

Natural gas

$

331,073

$

247,088

$

83,985

Oil

 

136,146

 

83,683

 

52,463

Natural gas liquids

 

38,152

 

28,519

 

9,633

Other

 

4,842

 

4,278

 

564

Total

$

510,213

$

363,568

$

146,645

Production volume from continuing operations

 

 

 

 

 

 

Natural gas (MMcf)

 

47,056

 

45,871

 

1,185

Oil (MBbl)

 

2,736

 

2,480

 

256

Natural gas liquids (MMgal)

 

57.1

 

52.5

 

4.6

Production volumes from continuing ops. (MMcfe)

 

71,625

 

68,247

 

3,378

Total production volumes (MMcfe)

 

71,624

 

68,303

 

3,321

Revenue per unit of production including effects of all derivative instruments

 

 

 

 

 

 

Natural gas (Mcf)

$

7.04

$

5.39

$

1.65

Oil (barrel)

$

49.75

$

33.75

$

16.00

Natural gas liquids (gallon)

$

0.67

$

0.54

$

0.13

Other data from continuing operations

 

 

 

 

 

 

Lease operating expense (LOE)

 

 

 

 

 

 

LOE and other

$

100,789

$

75,511

$

25,278

Production taxes

 

38,454

 

35,550

 

2,904

Total

$

139,243

$

111,061

$

28,182

Depreciation, depletion and amortization

$

71,592

$

67,017

$

4,575

Capital expenditures

$

156,606

$

132,718

$

23,888

Exploration expenditures

$

3,512

$

568

$

2,944

Operating income

$

260,916

$

156,714

$

104,202

Natural Gas Distribution

 

 

 

 

 

 

Operating revenues

 

 

 

 

 

 

Residential

$

322,635

$

276,728

$

45,907

Commercial and industrial

 

139,713

 

116,612

 

23,101

Transportation

 

33,111

 

32,652

 

459

Other

 

7,555

 

3,754

 

3,801

Total

$

503,014

$

429,746

$

73,268

Gas delivery volumes (MMcf)

 

 

 

 

 

 

Residential

 

16,581

 

18,992

 

(2,411)

Commercial and industrial

 

8,559

 

9,497

 

(938)

Transportation

 

37,947

 

37,634

 

313

Total

 

63,087

 

66,123

 

(3,036)

Other data

 

 

 

 

 

 

Depreciation and amortization

$

32,880

$

31,724

$

1,156

Capital expenditures

$

58,947

$

53,562

$

5,385

Operating income

$

57,517

$

61,009

$

(3,492)

  

Selected Business Segment Data (Unaudited)

For the 12 months ending September 30, 2006 and 2005

Trailing 12 Months

(in thousands, except sales price data)

 

2006

 

2005

 

Change

Oil and Gas Operations

 

 

 

 

 

 

Operating revenues

 

 

 

 

 

 

Natural gas

$

449,621

$

323,207

$

126,414

Oil

 

169,114

 

111,830

 

57,284

Natural gas liquids

 

48,088

 

37,201

 

10,887

Other

 

7,517

 

5,909

 

1,608

Total

$

674,340

$

478,147

$

196,193

Production volumes from continuing operations

 

 

 

 

 

 

Natural gas (MMcf)

 

62,233

 

60,972

 

1,261

Oil (MBbl)

 

3,573

 

3,356

 

217

Natural gas liquids (MMgal)

 

75.1

 

70.4

 

4.7

Production volumes from continuing ops. (MMcfe)

 

94,398

 

91,161

 

3,237

Total production volumes (MMcfe)

 

94,420

 

91,225

 

3,195

Revenue per unit of production including effects of all derivative instruments

 

 

 

 

 

 

Natural gas (Mcf)

$

7.22

$

5.30

$

1.92

Oil (barrel)

$

47.34

$

33.32

$

14.02

Natural gas liquids (gallon)

$

0.64

$

0.53

$

0.11

Other data

 

 

 

 

 

 

Lease operating expense (LOE)

 

 

 

 

 

 

LOE and other

$

129,519

$

96,404

$

33,115

Production taxes

55,175

46,580

8,595

Total

$

184,694

$

142,984

$

41,710

Depreciation, depletion and amortization

$

93,915

$

88,948

$

4,967

Capital expenditures

$

377,600

$

423,655

$

(46,055)

Exploration expenditures

$

3,620

$

761

$

2,859

Operating income

$

348,079

$

208,772

$

139,307

Natural Gas Distribution

 

 

 

 

 

 

Operating revenues

 

 

 

 

 

 

Residential

$

430,660

$

349,793

$

80,867

Commercial and industrial

 

190,058

 

147,606

 

42,453

Transportation

 

43,750

 

43,557

 

192

Other

 

9,500

 

5,422

 

4,078

Total

$

673,968

$

546,378

$

127,590

Gas delivery volumes (MMcf)

 

 

 

 

 

 

Residential

 

22,190

 

23,632

 

(1,443)

Commercial and industrial

 

11,560

 

11,975

 

(415)

Transportation

 

50,163

 

51,448

 

(1,284)

Total

 

83,913

 

87,055

 

(3,142)

Other data

 

 

 

 

 

 

Depreciation and amortization

$

43,507

$

42,152

$

1,355

Capital expenditures

$

78,661

$

69,680

$

8,981

Operating income

$

69,430

$

70,749

$

(1,319)