EX-99.2 3 dex992.htm SUPPLEMENTAL FINANCIAL INFORMATION Supplemental Financial Information

EXHIBIT 99.2

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

For the 3 months ending June 30, 2006 and 2005

 

     2nd Quarter    

Change

 

(in thousands, except per share data)

   2006     2005    

Operating Revenues

      

Oil and gas operations

   $ 169,178     $ 134,428     $ 34,750  

Natural gas distribution

     113,196       107,197       5,999  
                        

Total operating revenues

     282,374       241,625       40,749  
                        

Operating Expenses

      

Cost of gas

     57,831       50,424       7,407  

Operations & maintenance

     78,401       66,904       11,497  

Depreciation, depletion and amortization

     34,499       33,101       1,398  

Taxes, other than income taxes

     21,433       19,794       1,639  

Accretion expense

     912       654       258  
                        

Total operating expenses

     193,076       170,877       22,199  
                        

Operating Income

     89,298       70,748       18,550  
                        

Other Income (Expense)

      

Interest expense

     (12,366 )     (11,524 )     (842 )

Other income

     255       517       (262 )

Other expense

     (272 )     (268 )     (4 )
                        

Total other expense

     (12,383 )     (11,275 )     (1,108 )
                        

Income from Continuing Operations Before Income Taxes

     76,915       59,473       17,442  

Income tax expense

     27,313       21,900       5,413  
                        

Income from Continuing Operations

     49,602       37,573       12,029  
                        

Discontinued Operations, Net of Taxes

      

Income (loss) from discontinued operations

     (1 )     13       (14 )

Loss on disposal of discontinued operations

     —         (13 )     13  
                        

Loss from Discontinued Operations

     (1 )     —         (1 )
                        

Net Income

   $ 49,601     $ 37,573     $ 12,028  
                        

Diluted Earnings Per Average Common Share

      

Continuing operations

   $ 0.67     $ 0.51     $ 0.16  

Discontinued operations

     —         —         —    
                        

Net Income

   $ 0.67     $ 0.51     $ 0.16  
                        

Basic Earnings Per Average Common Share

      

Continuing operations

   $ 0.68     $ 0.51     $ 0.17  

Discontinued operations

     —         —         —    
                        

Net Income

   $ 0.68     $ 0.51     $ 0.17  
                        

Diluted Avg. Common Shares Outstanding

     73,902       73,782       120  
                        

Basic Avg. Common Shares Outstanding

     73,028       73,017       11  
                        

Dividends Per Common Share

   $ 0.11     $ 0.10     $ .01  
                        

 

1


CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

For the 6 months ending June 30, 2006 and 2005

 

     Year-to-date    

Change

 

(in thousands, except per share data)

   2006     2005    

Operating Revenues

      

Oil and gas operations

   $ 338,697     $ 237,308     $ 101,389  

Natural gas distribution

     431,819       365,325       66,494  
                        

Total operating revenues

     770,516       602,633       167,883  
                        

Operating Expenses

      

Cost of gas

     251,881       187,279       64,602  

Operations & maintenance

     152,884       127,309       25,575  

Depreciation, depletion and amortization

     68,796       64,526       4,270  

Taxes, other than income taxes

     54,112       46,344       7,768  

Accretion expense

     1,810       1,297       513  
                        

Total operating expenses

     529,483       426,755       102,728  
                        

Operating Income

     241,033       175,878       65,155  
                        

Other Income (Expense)

      

Interest expense

     (25,543 )     (23,194 )     (2,349 )

Other income

     962       870       92  

Other expense

     (501 )     (536 )     35  
                        

Total other expense

     (25,082 )     (22,860 )     (2,222 )
                        

Income from Continuing Operations Before Income Taxes

     215,951       153,018       62,933  

Income tax expense

     78,848       56,503       22,345  
                        

Income from Continuing Operations

     137,103       96,515       40,588  
                        

Discontinued Operations, Net of Taxes

      

Loss from discontinued operations

     (8 )     (6 )     (2 )

Gain on disposal of discontinued operations

     —         110       (110 )
                        

Income (Loss) from Discontinued Operations

     (8 )     104       (112 )
                        

Net Income

   $ 137,095     $ 96,619     $ 40,476  
                        

Diluted Earnings Per Average Common Share

      

Continuing operations

   $ 1.85     $ 1.31     $ 0.54  

Discontinued operations

     —         —         —    
                        

Net Income

   $ 1.85     $ 1.31     $ 0.54  
                        

Basic Earnings Per Average Common Share

      

Continuing operations

   $ 1.87     $ 1.32     $ 0.55  

Discontinued operations

     —         —         —    
                        

Net Income

   $ 1.87     $ 1.32     $ 0.55  
                        

Diluted Avg. Common Shares Outstanding

     73,978       73,726       252  
                        

Basic Avg. Common Shares Outstanding

     73,148       72,985       163  
                        

Dividends Per Common Share

   $ 0.22     $ 0.20     $ 0.02  
                        

 

2


CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

For the 12 months ending June 30, 2006 and 2005

 

     Trailing 12 Months    

Change

 

(in thousands, except per share data)

   2006     2005    

Operating Revenues

      

Oil and gas operations

   $ 629,084     $ 456,068     $ 173,016  

Natural gas distribution

     667,194       544,119       123,075  
                        

Total operating revenues

     1,296,278       1,000,187       296,091  
                        

Operating Expenses

      

Cost of gas

     380,224       268,139       112,085  

Operations & maintenance

     294,302       252,113       42,189  

Depreciation, depletion and amortization

     135,961       127,734       8,227  

Taxes, other than income taxes

     101,751       80,973       20,778  

Accretion expense

     3,160       2,540       620  
                        

Total operating expenses

     915,398       731,499       183,899  
                        

Operating Income

     380,880       268,688       112,192  
                        

Other Income (Expense)

      

Interest expense

     (49,149 )     (44,925 )     (4,224 )

Other income

     2,255       2,320       (65 )

Other expense

     (675 )     (1,056 )     381  
                        

Total other expense

     (47,569 )     (43,661 )     (3,908 )
                        

Income from Continuing Operations Before Income Taxes

     333,311       225,027       108,284  

Income tax expense

     119,836       83,583       36,253  
                        

Income from Continuing Operations

     213,475       141,444       72,031  
                        

Discontinued Operations, Net of Taxes

      

Income (loss) from discontinued operations

     (9 )     65       (74 )

Gain on disposal of discontinued operations

     22       118       (96 )
                        

Income from Discontinued Operations

     13       183       (170 )
                        

Net Income

   $ 213,488     $ 141,627     $ 71,861  
                        

Diluted Earnings Per Average Common Share

      

Continuing operations

   $ 2.89     $ 1.92     $ 0.97  

Discontinued operations

     —         0.01       (0.01 )
                        

Net Income

   $ 2.89     $ 1.93     $ 0.96  
                        

Basic Earnings Per Average Common Share

      

Continuing operations

   $ 2.92     $ 1.94     $ 0.98  

Discontinued operations

     —         0.01       (0.01 )
                        

Net Income

   $ 2.92     $ 1.95     $ 0.97  
                        

Diluted Avg. Common Shares Outstanding

     73,939       73,480       459  
                        

Basic Avg. Common Shares Outstanding

     73,149       72,802       347  
                        

Dividends Per Common Share

   $ 0.42     $ 0.3925     $ 0.0275  
                        

 

3


SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 3 months ending June 30, 2006 and 2005

 

     2nd Quarter   

Change

 

(in thousands, except sales price data)

   2006    2005   

Oil and Gas Operations

        

Operating revenues

        

Natural gas

   $ 106,194    $ 94,401    $ 11,793  

Oil

     47,475      28,499      18,976  

Natural gas liquids

     13,807      9,653      4,154  

Other

     1,702      1,875      (173 )
                      

Total

   $ 169,178    $ 134,428    $ 34,750  
                      

Production volumes from continuing operations

        

Natural gas (MMcf)

     15,725      15,176      549  

Oil (MBbl)

     914      848      66  

Natural gas liquids (MMgal)

     20.1      18.6      1.5  

Production volumes from continuing ops. (MMcfe)

     24,076      22,911      1,165  

Total production volumes (MMcfe)

     24,075      22,919      1,156  

Revenue per unit of production including effects of all derivative instruments

        

Natural gas (Mcf)

   $ 6.75    $ 6.22    $ 0.53  

Oil (barrel)

   $ 51.92    $ 33.63    $ 18.29  

Natural gas liquids (gallon)

   $ 0.69    $ 0.52    $ 0.17  

Other data from continuing operations

        

Lease operating expense (LOE)

        

LOE and other

   $ 31,622    $ 25,366    $ 6,256  

Production taxes

     12,759      11,869      890  
                      

Total

   $ 44,381    $ 37,235    $ 7,146  
                      

Depreciation, depletion and amortization

   $ 23,566    $ 22,458    $ 1,108  

Capital expenditures

   $ 50,652    $ 48,024    $ 2,628  

Exploration expenditures

   $ 1,417    $ 170    $ 1,247  

Operating income

   $ 87,138    $ 65,369    $ 21,769  

Natural Gas Distribution

        

Operating revenues

        

Residential

   $ 67,495    $ 64,778    $ 2,717  

Commercial and industrial

     32,856      29,580      3,276  

Transportation

     10,261      10,245      16  

Other

     2,584      2,594      (10 )
                      

Total

   $ 113,196    $ 107,197    $ 5,999  
                      

Gas delivery volumes (MMcf)

        

Residential

     3,295      4,170      (875 )

Commercial and industrial

     2,084      2,411      (327 )

Transportation

     11,589      11,942      (353 )
                      

Total

     16,968      18,523      (1,555 )
                      

Other data

        

Depreciation and amortization

   $ 10,933    $ 10,643    $ 290  

Capital expenditures

   $ 21,590    $ 20,897    $ 693  

Operating income

   $ 2,711    $ 5,630    $ (2,919 )

 

4


SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 6 months ending June 30, 2006 and 2005

 

     Year-to-date   

Change

 

(in thousands, except sales price data)

   2006    2005   

Oil and Gas Operations

        

Operating revenues

        

Natural gas

   $ 222,278    $ 162,001    $ 60,277  

Oil

     89,617      54,804      34,813  

Natural gas liquids

     23,484      17,798      5,686  

Other

     3,318      2,705      613  
                      

Total

   $ 338,697    $ 237,308    $ 101,389  
                      

Production volume from continuing operations

        

Natural gas (MMcf)

     31,052      29,858      1,194  

Oil (MBbl)

     1,832      1,666      166  

Natural gas liquids (MMgal)

     36.7      34.4      2.3  

Production volumes from continuing ops. (MMcfe)

     47,285      44,767      2,518  

Total production volumes (MMcfe)

     47,284      44,825      2,459  

Revenue per unit of production including effects of all derivative instruments

        

Natural gas (Mcf)

   $ 7.16    $ 5.43    $ 1.73  

Oil (barrel)

   $ 48.93    $ 32.89    $ 16.04  

Natural gas liquids (gallon)

   $ 0.64    $ 0.52    $ 0.12  

Other data from continuing operations

        

Lease operating expense (LOE)

        

LOE and other

   $ 65,484    $ 48,115    $ 17,369  

Production taxes

     25,852      22,073      3,779  
                      

Total

   $ 91,336    $ 70,188    $ 21,148  
                      

Depreciation, depletion and amortization

   $ 47,117    $ 43,470    $ 3,647  

Capital expenditures

   $ 95,557    $ 88,509    $ 7,048  

Exploration expenditures

   $ 1,526    $ 494    $ 1,032  

Operating income

   $ 175,677    $ 104,346    $ 71,331  

Natural Gas Distribution

        

Operating revenues

        

Residential

   $ 286,001    $ 242,932    $ 43,069  

Commercial and industrial

     117,413      94,880      22,533  

Transportation

     22,996      23,274      (278 )

Other

     5,409      4,239      1,170  
                      

Total

   $ 431,819    $ 365,325    $ 66,494  
                      

Gas delivery volumes (MMcf)

        

Residential

     14,980      17,183      (2,203 )

Commercial and industrial

     7,025      7,706      (681 )

Transportation

     24,948      25,683      (735 )
                      

Total

     46,953      50,572      (3,619 )
                      

Other data

        

Depreciation and amortization

   $ 21,679    $ 21,056    $ 623  

Capital expenditures

   $ 40,435    $ 35,699    $ 4,736  

Operating income

   $ 66,438    $ 72,034    $ 5,596  

 

5


SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 12 months ending June 30, 2006 and 2005

 

     Trailing 12 Months   

Change

 

(in thousands, except sales price data)

   2006    2005   

Oil and Gas Operations

        

Operating revenues

        

Natural gas

   $ 425,913    $ 307,865    $ 118,048  

Oil

     151,464      107,504      43,960  

Natural gas liquids

     44,141      35,545      8,596  

Other

     7,566      5,154      2,412  
                      

Total

   $ 629,084    $ 456,068    $ 173,016  
                      

Production volumes from continuing operations

        

Natural gas (MMcf)

     62,242      59,591      2,651  

Oil (MBbl)

     3,481      3,397      84  

Natural gas liquids (MMgal)

     72.9      70.4      2.5  

Production volumes from continuing ops. (MMcfe)

     93,538      90,030      3,508  

Total production volumes (MMcfe)

     93,558      90,121      3,437  

Revenue per unit of production including effects of all derivative instruments

        

Natural gas (Mcf)

   $ 6.84    $ 5.17    $ 1.67  

Oil (barrel)

   $ 43.51    $ 31.65    $ 11.86  

Natural gas liquids (gallon)

   $ 0.61    $ 0.50    $ 0.11  

Other data

        

Lease operating expense (LOE)

        

LOE and other

   $ 121,610    $ 91,076    $ 30,534  

Production taxes

     56,050      42,668      13,382  
                      

Total

   $ 177,660    $ 133,744    $ 43,916  
                      

Depreciation, depletion and amortization

   $ 92,987    $ 86,265    $ 6,722  

Capital expenditures

   $ 360,759    $ 421,037    $ 60,278  

Exploration expenditures

   $ 1,708    $ 2,494    $ (786 )

Operating income

   $ 315,208    $ 198,988    $ 116,220  

Natural Gas Distribution

        

Operating revenues

        

Residential

   $ 427,821    $ 349,857    $ 77,964  

Commercial and industrial

     189,490      144,390      45,100  

Transportation

     43,012      43,018      (6 )

Other

     6,871      6,854      17  
                      

Total

   $ 667,194    $ 544,119    $ 123,075  
                      

Gas delivery volumes (MMcf)

        

Residential

     22,398      23,696      (1,298 )

Commercial and industrial

     11,817      11,753      64  

Transportation

     49,115      52,287      (3,172 )
                      

Total

     83,330      87,736      (4,406 )
                      

Other data

        

Depreciation and amortization

   $ 42,974    $ 41,469    $ 1,505  

Capital expenditures

   $ 78,012    $ 63,686    $ 14,326  

Operating income

   $ 67,326    $ 71,644    $ (4,318 )

 

6