-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, bViseqpDfnxzUf+BhxORj66Lm/Bqh9HhfP+Af48WlCvi7Av+lrs6pbZszNE4xBhC wyEtreWejbV2h182LO9U3A== 0000033213-94-000014.txt : 19941117 0000033213-94-000014.hdr.sgml : 19941117 ACCESSION NUMBER: 0000033213-94-000014 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19940930 FILED AS OF DATE: 19941110 SROS: NYSE SROS: PHLX FILER: COMPANY DATA: COMPANY CONFORMED NAME: EQUITABLE RESOURCES INC /PA/ CENTRAL INDEX KEY: 0000033213 STANDARD INDUSTRIAL CLASSIFICATION: 4923 IRS NUMBER: 250464690 STATE OF INCORPORATION: PA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-03551 FILM NUMBER: 94558610 BUSINESS ADDRESS: STREET 1: 420 BLVD OF THE ALLIES CITY: PITTSBURGH STATE: PA ZIP: 15219 BUSINESS PHONE: 4122613000 MAIL ADDRESS: STREET 1: 420 BOULEVARD OF THE ALLIES CITY: PITTSBURGH STATE: PA ZIP: 15219 FORMER COMPANY: FORMER CONFORMED NAME: EQUITABLE GAS CO DATE OF NAME CHANGE: 19841120 10-Q 1 SEPTEMBER 1994 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________ FORM 10-Q (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1994 or [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM _______ TO _______ COMMISSION FILE NUMBER 1-3551 EQUITABLE RESOURCES, INC. (Exact name of registrant as specified in its charter) PENNSYLVANIA 25-0464690 (State of incorporation or organization) (IRS Employer Identification No.) 420 Boulevard of the Allies, Pittsburgh, Pennsylvania 15219 (Address of principal executive offices, including zip code) Registrant's telephone number, including area code: (412) 261-3000 ____________ NONE (Former name, former address and former fiscal year, if changed since last report) ____________ Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No Indicate the number of shares outstanding of each of issuer's classes of common stock, as of the close of the period covered by this report. Outstanding at Class September 30, 1994 Common stock, no par value 34,535,436 shares EQUITABLE RESOURCES, INC. AND SUBSIDIARIES Index Page No. Part I. Financial Statements: Statements of Consolidated Income for the Three Months Ended September 30, 1994 and 1993, the Nine Months Ended September 30, 1994 and 1993 and the Twelve Months Ended September 30, 1994 and 1993 1 Statements of Consolidated Cash Flows for the Three Months Ended September 30, 1994 and 1993, the Nine Months Ended September 30, 1994 and 1993, and the Twelve Months Ended September 30, 1994 and 1993 2 Consolidated Balance Sheets, September 30, 1994 and 1993 and December 31, 1993 3 - 4 Long-Term Debt, September 30, 1994 and 1993 5 Notes to Consolidated Financial Statements 6 Gas Produced, Purchased and Sold 7 - 12 Information by Business Segment 13 Management's Discussion and Analysis of Financial Condition and Results of Operations 14 - 17 Part II. Other Information 18 Signature 19
EQUITABLE RESOURCES, INC. AND SUBSIDIARIES Statements of Consolidated Income (Thousands Except Per Share Amounts) Three Months Ended Nine Months Ended Twelve Months Ended September 30, September 30, September 30, 1994 1993 1994 1993 1994 1993 Operating Revenues $297,712 $272,745 $1,053,372 $750,346 $1,397,820 $1,011,731 Cost of Gas Purchased 200,089 167,737 703,066 427,006 920,217 569,111 ------- ------- --------- ------- --------- --------- Net operating revenues 97,623 105,008 350,306 323,340 477,603 442,620 ------- ------- --------- ------- --------- --------- Operating Expenses: Operation 46,983 45,001 143,115 125,190 192,345 169,604 Maintenance 8,327 7,599 23,174 20,608 31,590 27,571 Depreciation and depletion 23,265 20,749 68,593 55,201 90,286 72,447 Taxes other than income 6,201 6,872 31,544 28,227 43,119 37,845 ------- ------- --------- ------- --------- --------- Total operating expenses 84,776 80,221 266,426 229,226 357,340 307,467 ------- ------- --------- ------- --------- --------- Operating Income 12,847 24,787 83,880 94,114 120,263 135,153 Other Income 810 125 1,318 263 2,761 1,381 Interest Charges 11,387 10,811 32,316 28,508 42,536 37,448 ------- ------- --------- ------- --------- --------- Income Before Income Taxes 2,270 14,101 52,882 65,869 80,488 99,086 Income Taxes (Benefits) (111) 5,489 8,085 17,631 10,474 27,714 ------- ------- --------- ------- --------- --------- Net Income $ 2,381 $ 8,612 $ 44,797 $ 48,238 $ 70,014 $ 71,372 ======= ======= ========= ======= ========= ======== Average Common Shares Outstanding 34,526 32,195 34,503 31,728 34,492 31,645 ====== ====== ====== ====== ====== ====== Earnings Per Share of Common Stock $.07 $.27 $1.30 $1.52 $2.03 $2.26 === === ==== ==== ==== ==== Dividends Per Share of Common Stock $.28 $.27 $.85 $.81 $1.14 $1.08
EQUITABLE RESOURCES, INC. AND SUBSIDIARIES Statements of Consolidated Cash Flows (Thousands) Three Months Ended Nine Months Ended Twelve Months Ended September 30, September 30, September 30, 1994 1993 1994 1993 1994 1993 Cash Flows from Operating Activities: Net Income $ 2,381 $ 8,612 $ 44,797 $ 48,238 $70,014 $ 71,372 -------- -------- -------- ------- ------ ------ Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Depreciation and 23,265 20,749 68,593 55,201 90,286 72,447 depletion Deferred income taxes 5,826 11,014 1,902 7,102 (4,444) 7,530 (benefits) Other - net (1,893) (1,994) 1,462 8 2,773 60 Changes in other assets and liabilities: Accounts receivable and unbilled revenues 28,277 7,140 32,743 23,748 (13,357) (23,684) Gas stored underground (7,666) 374 2,848 (15,464) 13,236 (6,909) Material and supplies 1,324 (982) (1,244) 540 (2,493) 630 Deferred purchased (16,726) (24,147) (14,358) (17,837) (10,545) (16,564) gas cost Prepaid expenses and other(7,133) (17,126) (6,794) (12,779) 4,308 (7,483) Regulatory assets (290) (7,089) (2,877) (9,583) (11,951) (12,453) Accounts payable (23,997) (3,851) (30,793) 8,331 (20,377) 19,936 Accrued taxes (7,822) (3,160) (5,772) (1,936) (2,812) 1,657 Refunds due customers 3,139 4,048 7,103 1,685 7,955 5,622 Other - net 3,768 (2,800) 5,856 (6,512) 9,457 3,118 -------- -------- -------- ------- ------ ------ Total adjustments 72 (17,824) 58,669 32,504 62,036 43,907 -------- -------- -------- ------- ------ ------ Net cash provided (used) by operating activities 2,453 (9,212) 103,466 80,742 132,050 115,279 -------- -------- -------- ------- ------ ------ Cash Flows from Investing Activities: Capital expenditures: Energy resources (28,888) (48,376) (69,088) (273,421) (91,912) (291,232) Utility services (11,182) (12,722) (31,488) (32,239) (42,415) (45,980) Proceeds from sale of property 290 185 805 928 1,147 6,299 -------- -------- -------- ------- ------ ------ Net cash used in investing activities (39,780) (60,913) (99,771) (304,732) (133,180) (330,913) -------- -------- -------- ------- ------ ------ Cash Flows from Financing Activities: Issuance of common stock 425 112,116 1,299 112,349 1,362 112,874 Purchase of treasury stock - - - (18) (10) (37) Dividends paid (9,839) (8,490) (29,501) (25,457) (39,323) (33,927) Proceeds from issuance of long-term debt - - 43,185 31,775 43,112 31,720 Repayments and retirements of long-term debt - - (1,971) (16,445) (1,971) (16,445) Increase (decrease) in short-term loans 50,100 (52,000) (15,900) 118,500 5,500 125,500 -------- -------- -------- ------- ------ ------ Net cash provided (used) by financing activities 40,686 51,626 (2,888) 220,704 8,670 219,685 -------- -------- -------- ------- ------ ------ Increase (decrease) in cash and cash equivalents 3,359 (18,499) 807 (3,286) 7,540 4,051 Cash and cash equivalents at beginning of period 12,485 26,803 15,037 11,590 8,304 4,253 -------- -------- -------- ------- ------ ------ Cash and cash equivalents at end of period $15,844 $ 8,304 $ 15,844 $ 8,304 $ 15,844 $ 8,304 ====== ======== ======== ======= ====== ====== Cash paid during the period for: Interest (net of amount capitalized) $12,287 $ 12,409 $ 30,980 $ 27,808 $ 37,764 $ 32,807 ====== ======== ====== ======== ======== ======== Income taxes $ 2,952 $ 8,206 $ 9,463 $ 22,795 $ 14,215 $ 26,411 ====== ======== ====== ======== ======== ========
EQUITABLE RESOURCES, INC. AND SUBSIDIARIES Consolidated Balance Sheets (Thousands) September 30, December 31, 1994 1993 1993 ASSETS Property, Plant and Equipment (Successful Efforts Method): Energy resources $1,264,574 $1,185,796 $1,203,599 Less accumulated depreciation and depletion 346,645 284,965 298,370 --------- --------- --------- Net energy resources 917,929 900,831 905,229 --------- --------- --------- Utility services 929,208 884,218 903,238 Less accumulated depreciation and depletion 274,667 254,196 260,043 --------- --------- --------- Net utility services 654,541 630,022 643,195 --------- --------- --------- Net property, plant and equipment 1,572,470 1,530,853 1,548,424 --------- --------- --------- Current Assets: Cash and cash equivalents 15,844 8,304 15,037 Accounts receivable (less accumulated provision for doubtful accounts: September 30, 1994, $10,986; 1993, $8,978; December 31, 1993, $10,106) 159,110 148,558 171,626 Unbilled revenues 6,746 5,949 27,853 Gas stored underground - current inventory 15,211 28,447 18,059 Material and supplies 13,505 11,012 12,261 Deferred purchased gas cost 31,506 20,961 17,148 Prepaid expenses and other 30,771 35,079 23,977 --------- --------- --------- Total current assets 272,693 258,310 285,961 --------- --------- --------- Other Assets: Regulatory assets 89,901 77,950 87,024 Other 27,604 28,331 25,498 --------- --------- --------- Total other assets 117,505 106,281 112,522 --------- --------- --------- Total $1,962,668 $1,895,444 $1,946,907 ========= ========= =========
EQUITABLE RESOURCES, INC. AND SUBSIDIARIES Consolidated Balance Sheets (Thousands) September 30, December 31, 1994 1993 1993 CAPITALIZATION AND LIABILITIES Capitalization: Common stockholders' equity: Common stock, no par value, authorized 80,000 shares; shares issued September 30, 1994, 35,153; September 30, 1993, 35,077; December 31, 1993, 35,087 $ 224,437 $ 222,683 $ 222,801 Retained earnings 535,729 505,038 520,433 Treasury stock, shares at cost September 30, 1994, 618; September 30, 1993, 621; December 31, 1993, 622 (14,538) (14,613) (14,623) Foreign currency translation (807) - (581) ---------- --------- --------- Total common stockholders' equity 744,821 713,108 728,030 Long-term debt 408,117 378,717 378,845 ---------- --------- --------- Total capitalization 1,152,938 1,091,825 1,106,875 ---------- --------- --------- Current Liabilities: Long-term debt payable within one year 14,500 1,971 1,971 Short-term loans 238,000 232,500 253,900 Accounts payable 113,015 133,392 143,808 Accrued taxes 9,586 12,398 15,358 Accrued interest 11,360 9,842 12,338 Refunds due customers 21,309 13,354 14,206 Deferred income taxes 6,245 6,276 (4,805) Customer credit balances 5,797 7,500 7,578 Other 12,936 6,622 14,061 ---------- --------- --------- Total current liabilities 432,748 423,855 458,415 ---------- --------- --------- Deferred and Other Credits: Deferred income taxes 329,159 331,112 336,678 Deferred investment tax credits 22,363 23,915 23,178 Other 25,460 24,737 21,761 ---------- --------- --------- Total deferred and other credits 376,982 379,764 381,617 ---------- --------- --------- Total $1,962,668 $1,895,444 $1,946,907 ========= ========= =========
EQUITABLE RESOURCES, INC. AND SUBSIDIARIES Long-Term Debt (Thousands) Annual Maturities Debt Maturities After One Year September 30, September 30, 1994 1993 1994 1993 8 1/4% Debentures, due July 1, 1996 (a) $ $ $ 75,000 $ 75,000 7 1/2% Debentures, due July 1, 1999 ($75,000 principal amount net of unamortized original issue discount) (a) 70,266 69,501 9 1/2% Convertible subordinated debentures, due January 15, 2006 2,351 2,716 9.9% Debentures, due April 15, 2013 (b) 75,000 75,000 Medium-Term Notes: 7.2% to 9.0% Series A, due 1998 thru 2021 100,000 100,000 5.1% to 7.6% Series B, due 1995 thru 2023 14,500 85,500 56,500 Other 1,971 ------ ----- ------- ------- Total $14,500 $1,971 $408,117 $378,717 ====== ===== ======= ======= (a) Not redeemable prior to maturity. (b) Annual sinking fund payments of $3,750,000 are required beginning in 1999.
Equitable Resources, Inc. and Subsidiaries Notes to Consolidated Financial Statements A. The accompanying financial statements should be read in conjunction with the Company's 1993 Annual Report on Form 10-K. B. In the opinion of the Company, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly the financial position as of September 30, 1994 and 1993 and the results of operations for the three, nine and twelve months then ended and cash flows for the three, nine and twelve months then ended. All of the adjustments are of a normal recurring nature. Certain balance sheet information contained in the prior period comparative information has been reclassified to conform with the September 30, 1994 presentation. C. The results of operations for the three- and nine-month periods ended September 30, 1994 and 1993 are not indicative of results for a full year because of the seasonal nature of the Company's operations. D. At September 30, 1994, 2,891,000 shares of Common Stock were reserved as follows: 213,000 shares for conversion of the 9 1/2% Convertible Subordinated Debentures, 664,000 shares for issuance under the Key Employee Restricted Stock Option and Stock Appreciation Rights Incentive Compensation Plan, 1,725,000 shares for issuance under the Long-Term Incentive Plan, 80,000 shares for issuance under the Non-Employee Directors' Stock Incentive Plan, and 209,000 shares for issuance under the Company's Dividend Reinvestment and Stock Purchase Plan. E. The Company filed a shelf registration in March 1992 to issue $100 million of Medium-Term Notes--Series B to be used primarily to retire short-term loans incurred to temporarily finance a portion of 1991 acquisitions. Through December 31, 1993, the Company issued $56.5 million of Medium-Term Notes. The remaining $43.5 million of Medium-Term Notes were issued during the first quarter of 1994. These notes have maturity dates ranging from three to thirty years and a weighted average interest rate of 6.60%. The Company filed a shelf registration effective June 9, 1994 to issue $100 million of Medium-Term Notes--Series C to be used to retire short- term loans. No Series C Notes have been issued.
Three Months Ended September 30, 1994 Utility Energy Services Resources Eliminations Consolidated Gas Produced, Purchased and Sold (MMcf): Produced 585 15,640 16,225 ------- ------- ------- ------- Purchased: Other producers 14,049 106,161 120,210 Inter-segment purchases 2,157 3,850 (6,007) ------- ------- ------- ------- Total purchases 16,206 110,011 (6,007) 120,210 ------- ------- ------- ------- Total produced and purchased 16,791 125,651 (6,007) 136,435 Deduct: Net increase in gas in storage 3,184 3,184 Extracted natural gas liquids (equivalent gas volumes) 2,176 2,176 System use and unaccounted for 916 535 1,451 ------- ------- ------- ------- Total 12,691 122,940 (6,007) 129,624 ======= ======= ======= ======= Gas Sales (MMcf): Residential 1,925 1,925 Commercial 1,246 1,246 Industrial 3,967 (3,039) 928 Utilities 3,400 3,400 Production 15,640 15,640 Marketing 2,153 107,300 (2,968) 106,485 ------- ------- ------- ------- Total 12,691 122,940 (6,007) 129,624 ======= ======= ======= ======= Natural Gas Transported (MMcf) 23,437 29,965 (12,793) 40,609 ======= ======= ======= ======= Oil Produced and Sold (thousands of bls) 493 493 Natural Gas Liquids Sold (thousands of gallons) 66,373 66,373 Average Selling Price Gas - Utility Sales (per Mcf) $4.195 - Energy Resource Production $ 1.734 - Energy Resource Marketing $ 1.800 Oil (per barrel) $ 16.605 Natural Gas Liquids (per gallon) $ .268
Three Months Ended September 30, 1993 Utility Energy Services Resources Eliminations Consolidated Gas Produced, Purchased and Sold (MMcf): Produced 299 13,806 14,105 ------- ------- ------- ------- Purchased: Other producers 7,955 73,648 81,603 Inter-segment purchases 313 1,268 (1,581) ------- ------- ------- ------- Total purchases 8,268 74,916 (1,581) 81,603 ------- ------- ------- ------- Total produced and purchased 8,567 88,722 (1,581) 95,708 Deduct: Net increase in gas in storage 3,264 3,264 Extracted natural gas liquids (equivalent gas volumes) 1,229 1,229 System use and unaccounted for 691 691 ------- ------- ------- ------- Total 4,612 87,493 (1,581) 90,524 ======= ======= ======= ======= Gas Sales (MMcf): Residential 2,105 2,105 Commercial 433 433 Industrial 842 (39) 803 Utilities 3 3 Production 13,806 (6) 13,800 Marketing 1,255 73,687 (1,562) 73,380 ------- ------- ------- ------- Total gas sales 4,638 87,493 (1,607) 90,524 Processed gas extracted (26) 26 ------- ------- ------- ------- Total 4,612 87,493 (1,581) 90,524 ======= ======= ======= ======= Natural Gas Transported (MMcf) 20,202 28,658 (9,036) 39,824 ======= ======= ======= ======= Oil Produced and Sold (thousands of bls) 531 531 Natural Gas Liquids Sold (thousands of gallons) 65,085 65,085 Average Selling Price Gas - Utility Sales (per Mcf) $7.940 - Energy Resource Production $ 2.101 - Energy Resource Marketing $ 2.253 Oil (per barrel) $ 15.725 Natural Gas Liquids (per gallon) $ .292
Nine Months Ended September 30, 1994 Utility Energy Services Resources Eliminations Consolidated Gas Produced, Purchased and Sold (MMcf): Produced 1,522 45,074 46,596 ------- ------- ------- ------- Purchased: Other producers 38,992 284,073 323,065 Inter-segment purchases 9,270 5,434 (14,704) ------- ------- ------- ------- Total purchases 48,262 289,507 (14,704) 323,065 ------- ------- ------- ------- Total produced and purchased 49,784 334,581 (14,704) 369,661 Deduct: Net increase in gas in storage 45 45 Extracted natural gas liquids (equivalent gas volumes) 5,874 5,874 System use and unaccounted for 2,371 1,534 3,905 ------- ------- ------- ------- Total 47,368 327,173 (14,704) 359,837 ======= ======= ======= ======= Gas Sales (MMcf): Residential 21,692 21,692 Commercial 8,162 8,162 Industrial 5,835 (3,039) 2,796 Utilities 4,626 4,626 Production 45,074 (409) 44,665 Marketing 7,053 282,099 (11,256) 277,896 ------- ------- ------- ------- Total 47,368 327,173 (14,704) 359,837 ======= ======= ======= ======= Natural Gas Transported (MMcf) 50,317 77,944 (27,143) 101,118 ======= ======= ======= ======= Oil Produced and Sold (thousands of bls) 1,480 1,480 Natural Gas Liquids Sold (thousands of gallons) 182,647 182,647 Average Selling Price Gas - Utility Sales (per Mcf) $6.725 - Energy Resource Production $ 2.103 - Energy Resource Marketing $ 2.064 Oil (per barrel) $ 14.380 Natural Gas Liquids (per gallon) $ .260
Nine Months Ended September 30, 1993 Utility Energy Services Resources Eliminations Consolidated Gas Produced, Purchased and Sold (MMcf): Produced 1,264 38,732 39,996 ------- ------- ------- ------- Purchased: Other producers 37,058 149,063 186,121 Inter-segment purchases 5,847 2,546 (8,393) ------- ------- ------- ------- Total purchases 42,905 151,609 (8,393) 186,121 ------- ------- ------- ------- Total produced and purchased 44,169 190,341 (8,393) 226,117 Deduct: Net increase in gas in storage 6,535 6,535 Extracted natural gas liquids (equivalent gas volumes) 2,213 2,213 System use and unaccounted for 6,454 294 6,748 ------- ------- ------- ------- Total 31,180 187,834 (8,393) 210,621 ======= ======= ======= ======= Gas Sales (MMcf): Residential 20,516 20,516 Commercial 5,411 5,411 Industrial 3,020 (333) 2,687 Utilities 20 20 Production 38,732 (3,719) 35,013 Marketing 1,255 149,102 (3,383) 146,974 ------- ------- ------- ------- Total gas sales 30,222 187,834 (7,435) 210,621 Processed gas extracted 958 (958) ------- ------- ------- ------- Total 31,180 187,834 (8,393) 210,621 ======= ======= ======= ======= Natural Gas Transported (MMcf) 48,617 28,658 (26,008) 51,267 ======= ======= ======= ======= Oil Produced and Sold (thousands of bls) 1,598 1,598 Natural Gas Liquids Sold (thousands of gallons) 95,229 95,229 Average Selling Price Gas - Utility Sales (per Mcf) $7.425 - Energy Resource Production $ 2.261 - Energy Resource Marketing $ 2.309 Oil (per barrel) $16.788 Natural Gas Liquids (per gallon) $ .307
Twelve Months Ended September 30, 1994 Utility Energy Services Resources Eliminations Consolidated Gas Produced, Purchased and Sold (MMcf): Produced 2,230 59,892 62,122 ------- ------- ------- ------- Purchased: Other producers 53,804 352,995 406,799 Inter-segment purchases 10,891 6,233 (17,124) ------- ------- ------- ------- Total purchases 64,695 359,228 (17,124) 406,799 ------- ------- ------- ------- Total produced and purchased 66,925 419,120 (17,124) 468,921 Deduct: Net decrease in gas in storage (286) (286) Extracted natural gas liquids (equivalent gas volumes) 6,666 6,666 System use and unaccounted for 4,176 1,534 5,710 ------- ------- ------- ------- Total 63,035 410,920 (17,124) 456,831 ======= ======= ======= ======= Gas Sales (MMcf): Residential 31,156 31,156 Commercial 10,986 10,986 Industrial 6,405 (3,046) 3,359 Utilities 4,638 4,638 Production 59,892 (409) 59,483 Marketing 9,850 351,028 (13,669) 347,209 ------- ------- ------- ------- Total 63,035 410,920 (17,124) 456,831 ======= ======= ======= ======= Natural Gas Transported (MMcf) 67,972 99,945 (35,763) 132,154 ======= ======= ======= ======= Oil Produced and Sold (thousands of bls) 1,994 1,994 Natural Gas Liquids Sold (thousands of gallons) 249,609 249,609 Average Selling Price Gas - Utility Sales (per Mcf) $7.056 - Energy Resource Production $ 2.147 - Energy Resource Marketing $ 2.119 Oil (per barrel) $ 14.359 Natural Gas Liquids (per gallon) $ .262
Twelve Months Ended September 30, 1993 Utility Energy Services Resources Eliminations Consolidated Gas Produced, Purchased and Sold (MMcf): Produced 1,910 51,552 53,462 ------- ------- ------- ------- Purchased: Pipeline suppliers 681 681 Other producers 48,135 185,067 233,202 Inter-segment purchases 7,526 3,249 (10,775) ------- ------- ------- ------- Total purchases 56,342 188,316 (10,775) 233,883 Total produced and purchased 58,252 239,868 (10,775) 287,345 Deduct: Net increase in gas in storage 1,444 1,444 Extracted natural gas liquids (equivalent gas volumes) 2,762 2,762 System use and unaccounted for 10,711 448 11,159 ------- ------- ------- ------- Total 46,097 236,658 (10,775) 271,980 ====== ======= ======= ======= Gas Sales (MMcf): Residential 29,856 29,856 Commercial 7,729 7,729 Industrial 5,713 (487) 5,226 Utilities 37 37 Production 51,552 (4,264) 47,288 Marketing 1,255 185,106 (4,517) 181,844 ------- ------- ------- ------- Total gas sales 44,590 236,658 (9,268) 271,980 Processed gas extracted 1,507 (1,507) ------- ------- ------- ------- Total 46,097 236,658 (10,775) 271,980 ======= ======= ======= ======= Natural Gas Transported (MMcf) 66,583 28,658 (35,670) 59,571 ======= ======= ======= ======== Oil Produced and Sold (thousands of bls) 2,178 2,178 Natural Gas Liquids Sold (thousands of gallons) 110,924 110,924 Average Selling Price Gas - Utility Sales (per Mcf) $7.222 - Energy Resource Production $ 2.317 - Energy Resource Marketing $ 2.371 Oil (per barrel) $17.130 Natural Gas Liquids (per gallon) $ .318
EQUITABLE RESOURCES, INC. AND SUBSIDIARIES Information by Business Segment (Thousands) Three Months Ended Nine Months Ended Twelve Months Ended September 30, September 30, September 30, 1994 1993 1994 1993 1994 1993 Operating Revenues: Energy resources $262,822 $239,900 $ 775,895 $514,421 $1,004,538 $ 666,211 Utility services 58,469 45,750 327,275 272,437 452,135 392,640 Sales between Segments (23,579) (12,905) (49,798) (36,512) (58,853) (47,120) ------- ------- --------- ------- --------- --------- Total $297,712 $272,745 $1,053,372 $750,346 $1,397,820 $1,011,731 ======= ======= ========= ======= ========= ========= Operating Income: Energy resources $ 11,889 $ 22,681 $ 29,149 $ 45,487 $ 37,815 $ 57,839 Utility services 958 2,106 54,731 48,627 82,448 77,314 ------- ------- -------- ------- --------- --------- Total $ 12,847 $ 24,787 $ 83,880 $ 94,114 $ 120,263 $ 135,153 ======= ======= ======== ======= ========= ========= Net Income (Loss): Energy resources $ 6,993 $ 9,650 $ 19,928 $ 27,041 $ 30,887 $ 37,319 Utility services (4,612) (1,038) 24,869 21,197 39,127 34,053 ------- ------- -------- ------- -------- --------- Total $ 2,381 $ 8,612 $ 44,797 $ 48,238 $ 70,014 $ 71,372 ======= ======= ======== ======= ========= =========
Management's Discussion and Analysis of Financial Condition and Results of Operations OVERVIEW Consolidated net income for the quarter ended September 30, 1994 was $2.4 million, or $.07 per share, compared with $8.6 million, or $.27 per share, for 1993. The decrease in income is due primarily to lower selling prices for produced natural gas, lower margins from gas processing and intrastate transportation and the effect of income generated in the 1993 period as a result of the transition to the Federal Energy Regulatory Commission (FERC) Order 636 restructuring. Consolidated net income for the nine months ended September 30, 1994 was $44.8 million, or $1.30 per share, compared with $48.2 million, or $1.52 per share for 1993. Net income for the twelve months ended September 30, 1994 was $70.0 million, or $2.03 per share, compared with $71.4 million, or $2.26 per share, for 1993. The decrease in income for the nine- and twelve-month periods is due primarily to lower selling prices for produced natural gas and oil and lower margins from gas processing and intrastate transportation, which were partially offset by increased natural gas production and increased margins from utility service operations. RESULTS OF OPERATIONS ENERGY RESOURCES Operating revenues were $262.8 million for the quarter ended September 30, 1994 compared with $239.9 million for 1993. The increase in revenues is due primarily to an increase in gas marketing activity. Operating revenues were $775.9 million for the nine months ended September 30, 1994 compared with $514.4 million for 1993, and $1.0 billion for the twelve months ended September 30, 1994 compared with $666.2 million for 1993. The increase in revenues for the nine- and twelve-month periods is due primarily to increases in gas marketing activity and production of natural gas liquids which reflect the June 1993 acquisition of Louisiana Intrastate Gas Company (LIG). Also, an increase in natural gas production of approximately 16 percent for the nine- and twelve-month periods more than offset the impact of lower wellhead prices.
Three Months Ended Nine Months Ended Twelve Months Ended September 30, September 30, September 30, 1994 1993 1994 1993 1994 1993 ENERGY RESOURCES Operating Revenues (thousands): Natural Gas: Production $ 27,119 $ 28,999 $ 94,791 $ 87,555 $ 128,596 $119,460 Marketing 193,113 166,023 582,383 344,239 743,973 438,927 Oil 8,186 8,357 21,277 26,833 28,620 37,309 Natural Gas Liquids 17,813 18,999 47,495 29,230 65,386 35,270 Direct Billing Settlements 7,815 7,815 7,815 7,815 7,815 7,815 Other 8,776 9,707 22,134 18,749 30,148 27,430 ------- ------- ------- ------- --------- ------- Total Revenues $262,822 $239,900 $775,895 $514,421 $1,004,538 $666,211 ======= ======= ======= ======= ========= ======= Sales Quantities: Natural Gas (MMcf): Production 15,640 13,806 45,074 38,732 59,892 51,552 Marketing 107,300 73,687 282,099 149,102 351,028 185,106 Oil (MBls) 493 531 1,480 1,598 1,994 2,178 Natural Gas Liquids (thousands of gallons) 66,373 65,085 182,647 95,229 249,609 110,924
Management's Discussion and Analysis of Financial Condition and Results of Operations (Continued) Cost of gas purchased amounted to $204.0 million for the quarter ended September 30, 1994 compared with $177.7 million for 1993, $611.3 million for the nine months ended September 30, 1994 compared with $360.4 million for 1993 and $784.6 million for the twelve months ended September 30, 1994 compared with $457.8 million for 1993. The increased cost for the current periods reflects the increase in volume of marketed natural gas and increased requirements due to the higher production level of natural gas liquids. Other operating expenses were $47.0 million for the quarter ended September 30, 1994 compared with $39.5 million for 1993. The increase in other operating expenses is due to increased production expenses, depreciation and depletion related to the higher level of natural gas production. Other operating expenses were $135.5 million for the nine months ended September 30, 1994 compared with $108.5 million for 1993 and $182.2 million for the twelve months ended September 30, 1994 compared with $150.6 million for 1993. Increases for the nine- and twelve-month periods are attributed to the acquisition of LIG, as well as the higher level of natural gas production. Operating income was $11.8 million for the quarter ended September 30, 1994 compared with $22.7 million for 1993, $29.1 million for the nine months ended September 30, 1994 compared with $45.5 million for 1993 and $37.8 million for the twelve months ended September 30, 1994 compared with $57.8 million for 1993. The decreases for the current periods are due primarily to lower selling prices for produced natural gas and lower margins from gas processing and intrastate transportation, a portion of which was offset by increased production of natural gas. The nine- and twelve-month periods were also adversely impacted by oil prices that were 14% and 16%, respectively, below 1993 levels. UTILITY SERVICES Operating revenues, which are derived principally from the sale and transportation of natural gas, were $58.5 million for the quarter ended September 30, 1994 compared with $45.7 million for 1993. The increase in revenues is the result of increased off-system gas sales, gas sales to commercial and industrial customers previously using transportation service and increased retail rates to pass-through higher gas costs to customers. Operating revenues were $327.3 million for the nine months ended September 30, 1994 compared with $272.4 million for 1993 and $452.1 million for the twelve months ended September 30, 1994 compared with $392.6 million for 1993. The increase in revenues for the nine- and twelve-month periods is the result of increased retail gas sales to commercial and industrial customers previously using transportation service, colder weather, increased retail rates to pass- through higher gas costs and increased off-system sales. The implementation of FERC Order 636 has resulted in a shift from pipeline gas sales to marketed gas sales. Management's Discussion and Analysis of Financial Conditions and Results of Operations (Continued)
Three Months Ended Nine Months Ended Twelve Months Ended September 30, September 30, September 30, 1994 1993 1994 1993 1994 1993 UTILITY SERVICES Operating Revenues (thousands): Retail Gas Sales $44,210 $25,785 $271,029 $210,175 $375,166 $300,136 Pipeline Gas Sales (6) 1,063 71 12,196 132 24,194 Transportation Service 5,629 11,060 25,966 34,691 36,035 49,293 Storage Service 2,542 2,132 7,081 4,985 9,023 6,348 Marketed Gas Sales 4,265 3,668 17,129 3,668 23,661 3,668 Other 1,829 2,042 5,999 6,722 8,118 9,001 ------ ------ ------- ------- ------- ------- Total Revenues $58,469 $45,750 $327,275 $272,437 $452,135 $392,640 ====== ====== ======= ======= ======= ======= Sales Quantities (MMcf): Retail Gas Sales 10,537 2,881 40,293 27,130 53,144 38,990 Pipeline Gas Sales 1 476 22 2,795 41 5,852 Transportation 23,437 20,202 50,317 48,617 67,972 66,583 Marketed Gas 2,153 1,255 7,053 1,255 9,850 1,255 Heating Degree Days - Actual 90 118 3,916 3,539 6,005 5,609 - Normal 120 120 3,848 3,848 5,968 5,968
Cost of gas purchased amounted to $19.1 million for the quarter ended September 30, 1994 compared with $2.3 million for 1993, $139.7 million for the nine months ended September 30, 1994, compared with $101.2 million for 1993 and $192.1 million for the twelve months ended September 30, 1994 compared with $155.9 million for 1993. The increase in the cost of gas purchased for the current periods is the result of the increase in sales volumes and the pass-through of higher costs in rates to retail customers. Other operating expenses amounted to $38.4 million for the quarter ended September 30, 1994 compared with $41.3 million for 1993. The decrease is attributed to higher provisions for estimated interstate rate refunds recorded in the 1993 period. Other operating expenses were $132.8 million for the nine months ended September 30, 1994 compared with $122.6 million for 1993 and $177.5 million for the twelve months ended September 30, 1994 compared with $159.4 million for 1993. The increases for the nine- and twelve-months periods reflect increased provisions for estimated interstate rate refunds, higher taxes other than income related to increased sales, and increased uncollectible account expense. Operating income was $1.0 million for the quarter ended September 30, 1994 compared with $2.1 million for 1993. Operating income decreased due to the effect of income generated in the 1993 period as a result of FERC Order 636 restructuring. Operating income was $54.7 million for the nine months ended September 30, 1994 compared with $48.6 million 1993 and $82.5 million for the twelve months ended September 30, 1994 compared with $77.3 million for 1993. The increase in operating income for the nine- and twelve-month periods is due to increased retail gas sales reflecting colder weather and higher margins from pipeline operations. Management's Discussion and Analysis of Financial Condition and Results of Operations (Continued) CAPITAL RESOURCES AND LIQUIDITY Operating Activities Cash required for operations is impacted primarily by the seasonal nature of the Company's utility operations. Gas purchased for storage during the nonheating season is financed with short-term loans which are repaid as gas is withdrawn from storage and sold during the heating season. Short-term loans are also used to provide other working capital requirements during the nonheating season. Investing Activities The Company's business requires major ongoing expenditures for replacements, improvements and additions to utility plant and continuing development and expansion of its energy resources. A total of $151.2 million has been authorized for the 1994 capital expenditure program, of which 60 percent is allocated to Energy Resources. Capital expenditures for the nine months ended September 30, 1994 were $100.6 million. Short-term loans are used as interim financing for a portion of capital expenditures. The Company expects to finance its 1994 capital expenditures with cash generated from operations and temporarily with short-term loans. Financing Activities The Company believes it has adequate borrowing capacity to meet its financing requirements. Bank loans and commercial paper, supported by available credit, are used to meet short-term financing requirements. At September 30, 1994, $197.0 million of commercial paper and $41.0 million of bank loans were outstanding at an average interest rate of 4.91 percent. Lines of credit currently available to the Company total $325 million which require commitment fees averaging one-tenth of one percent. Adequate lines of credit are expected to continue to be available in the future. The Company filed a shelf registration effective June 9, 1994 to issue $100 million of Medium-Term Notes -- Series C to be used to retire short-term loans. No Series C Notes have been issued. Balance Sheet Changes The changes in deferred purchased gas cost are due to the timing of pass-through of gas costs to rate payers. Changes in deferred purchased gas cost do not affect results of operations due to regulatory procedures for recovery of purchased gas cost in rates. The increase in regulatory assets since September 30, 1993 is due primarily to accounting for income taxes and postretirement benefits other than pension applicable to rate regulated operations. The decrease in gas stored underground is the result of FERC Order 636 restructuring. PART II. OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K (a) Exhibits: None (b) Reports on Form 8-K during the quarter ended September 30, 1994: None. Signature Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. EQUITABLE RESOURCES, INC. (Registrant) s/ Joseph L. Giebel ------------------------------ Joseph L. Giebel Vice President - Accounting and Administration Chief Accounting Officer Date: November 10, 1994 EX-27 2 FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE COMPANY'S FORM 10-Q DATED 9/30/94 AND FORM 10-K DATED 12/31/93 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 0000033213 EQUITABLE RESOURCES, INC. 1,000 9-MOS YEAR DEC-31-1994 DEC-31-1993 SEP-30-1994 DEC-31-1993 15,844 15,037 0 0 165,856 199,479 10,986 10,106 28,716 30,320 272,693 285,961 2,193,782 2,106,837 621,312 558,413 1,962,668 1,946,907 432,748 458,415 408,117 378,845 209,899 208,178 0 0 0 0 534,922 519,852 1,962,668 1,946,907 1,053,372 1,094,794 1,053,372 1,094,794 0 0 969,492 964,297 0 0 7,220 9,352 32,316 38,728 52,882 93,475 8,085 20,020 44,797 73,455 0 0 0 0 0 0 44,797 73,455 1.30 2.27 1.30 2.27
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