-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Ej1ANVXgPrqIVxEdS3dzwtoYFeaWvtfU29FOzKx8v7ux6hUBfUZQx3wLkYNacdlv roW/y5DI2pnB61BtNCCinQ== 0000068589-97-000016.txt : 19970730 0000068589-97-000016.hdr.sgml : 19970730 ACCESSION NUMBER: 0000068589-97-000016 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 19970729 ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19970729 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: MOUNTAIN FUEL SUPPLY CO CENTRAL INDEX KEY: 0000068589 STANDARD INDUSTRIAL CLASSIFICATION: NATURAL GAS TRANSMISSION & DISTRIBUTION [4923] IRS NUMBER: 870155877 STATE OF INCORPORATION: UT FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 033-55866 FILM NUMBER: 97646979 BUSINESS ADDRESS: STREET 1: 180 E FIRST SOUTH STREET 2: PO BOX 11368 CITY: SALT LAKE CITY STATE: UT ZIP: 84147 BUSINESS PHONE: 8015345555 MAIL ADDRESS: STREET 1: 180 EAST FIRST SOUTH ST STREET 2: P O BOX 11150 CITY: SALT LAKE CITY STATE: UT ZIP: 84147 8-K 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20005 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 Date of Report - July 28, 1997 (Date of earliest event reported) Mountain Fuel Supply Company (Exact name of registrant as specified in charter) STATE OF UTAH 1-935 87-0407509 (State or other juris- (Commission (I.R.S. Employer diction of incorporation File No.) Identification No.) or organization) 180 East First South Street, Salt Lake City, Utah 84111 (Address of principal executive offices) Registrant's telephone number, including area code (801) 324-5555 Not Applicable (Former name or former address, if changed since last report.) FORM 8-K CURRENT REPORT Item 7. Financial Statements and Exhibits. (c) Exhibits. Exhibit No. Exhibit 99.1. Earnings release issued by Questar Corporation, the parent of Mountain Fuel Supply Company (Mountain Fuel), on July 28, 1997. 99.2. Mountain Fuel's condensed balance sheet for the periods ending June 30, 1997. 99.3. Mountain Fuel's income statement for the periods ending June 30, 1997. SIGNATURES 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. MOUNTAIN FUEL SUPPLY COMPANY (Registrant) July 28, 1997 By /s/D. N. Rose (Date) D. N. Rose President and Chief Executive Officer EX-27 2
5 The following schedule contains summarized financial information extracted from the Mountain Fuel Supply Company Statements of Income and Balance Sheet for the period ended June 30, 1997, and is qualified in its entirety by reference to such unaudited financial statements. 1,000 6-MOS DEC-31-1997 JUN-30-1997 0 0 32,626 0 10,745 95,212 840,247 339,133 615,840 111,042 175,000 4,808 0 22,974 201,032 615,840 0 238,636 0 180,086 20,591 0 8,807 30,891 11,185 0 0 0 0 19,706 0 0
EX-99.1 3 Item 7. Financial Statements and Exhibits. July 28, 1997 (N) NYSE: STR 97-10 Contact: R. Curtis Burnett (801) 324-5541 QUESTAR REPORTS SECOND-QUARTER, FIRST-HALF EARNINGS SALT LAKE CITY - Questar Corp.'s (NYSE:STR) net income was lower for the second quarter of 1997 while remaining above last year's level for the six months ended June 30. The integrated energy-services company reported net income of $13.6 million, or $.32 per share, in the second quarter of this year versus $16.1 million, or $.39 per share, in the prior-year period. Earnings for the first half of 1997 were $54.6 million, or $1.32 per share, compared with $50.7 million, or $1.24 per share, a year earlier. R.D. Cash, Questar chairman, president and chief executive officer, said continued strong customer growth in the retail distribution business and higher natural gas production and prices were offset by several short-term "anomalies." "While our earnings were higher than expected in the first quarter and lower in the second quarter, we are generally where we planned to be at midyear, and we remain confident about our prospects for the full year," he said. Market Resources Net income for Questar's Market Resources group was $8.4 million in the second quarter of 1997 compared with $8.9 million a year earlier. The group conducts exploration and production, gas gathering and processing, wholesale energy trading and retail energy services. Gas production rose 29% to 11.9 billion cubic feet (Bcf) from 9.2 Bcf in the 1996 quarter, primarily reflecting gas reserves and properties acquired in the third quarter of 1996. Gas prices increased 12% to an average of $1.60 per thousand cubic feet (Mcf) compared with the year-earlier average price of $1.43 per Mcf. The group's oil and natural-gas-liquids production increased 32% to 748,000 barrels with an average price of $18.46 per barrel compared with $18.43 a year earlier. However, improved second-quarter performance by the group's exploration and production subsidiaries was offset by several factors: energy-trading losses amounting to $156,000 due to increased competition and smaller margins; start-up costs incurred by a retail energy-services subsidiary; and lower activity and income from development drilling on behalf of Questar's retail gas-distribution utility. For the first half of 1997, Market Resources' net income was $20 million versus $18.2 million for the year-earlier period. Regulated Services Net income for Questar's Regulated Services group - which conducts retail gas distribution and interstate transmission and storage - was $2.9 million in the second quarter of 1997, down from $4.9 million in the year-earlier period. Mountain Fuel Supply Co. - a retail gas-distribution utility - recorded a $2.6 million loss during the current-year quarter following a $617,000 loss in the 1996 period. The utility's 1996 second-quarter loss was reduced by several non-recurring items, including a $1.2 million before-tax gain from the sale of company facilities. Although total deliveries were 4% higher in the 1997 quarter, Mountain Fuel's results were affected by higher operating and maintenance expenses associated with continuing record customer growth and other factors. The utility's customer base grew to 622,000 on June 30, 1997, a 4.1% annual rate that is among the highest in the industry. A $2.85 million annual rate reduction also went into effect during the first quarter. Questar Pipeline Co., a natural gas-transmission and storage subsidiary, had net income of $5.5 million during the 1997 quarter, virtually the same as a year earlier. Total transportation volumes increased 3% to 64.6 million decatherms, and gas-storage revenues were higher. For the six-month period, Regulated Services earned $31.5 million, 9% higher than for the first half of 1996. Mountain Fuel earned $19.7 million and Questar Pipeline $11.8 million compared with $18.2 million and $10.8 million, respectively, a year earlier. Other Operations Questar's other operations, including a communications/technology company and corporate activities, earned $2.3 million in the second quarter, the same as the 1996 quarter. Net income was augmented by the sale of shares in Nextel Communications Inc. (a communications-technology company) that generated a $1.8 million after-tax gain in 1997 compared with $1.9 million in the 1996 quarter. First-half net income was $3.1 million versus $3.5 million for the comparable year-earlier period. Questar is an integrated energy-services company with $1.8 billion in assets distributed between regulated services, such as retail natural gas distribution and interstate gas transportation, and market-resources activities, including gas-and-oil exploration and production, wholesale and retail energy marketing, gas gathering and other field services. The news release contains some forward-looking statements about the future operations and expectations of Questar Corp. and subsidiaries. According to management, these statements are made in good faith and are reasonable expectations of the company's expected performance at the time. Actual results may vary from management's stated expectations and projections due to a variety of factors.
1997 1996 (unaudited) Three months ended June 30 Revenues $151,453,000 $148,968,000 Operating income 23,448,000 25,169,000 Net income $13,607,000 $16,068,000 Earnings per common share $.32 $.39 Average common shares outstanding 41,088,000 40,789,000 Six months ended June 30 Revenues $509,831,000 $374,691,000 Operating income 95,370,000 86,230,000 Net income $54,581,000 $50,664,000 Earnings per common share $1.32 $1.24 Average common shares outstanding 41,067,000 40,753,000 Twelve months ended June 30 Revenues $953,121,000 $669,477,000 Operating income 180,763,000 152,940,000 Net Income $102,062,000 $92,815,000 Earnings per common share $2.47 $2.27 Average common shares outstanding 40,993,000 40,690,000
VISIT QUESTAR'S INTERNET SITE at: http://www.questarcorp.com EX-99.2 4 Item 7. Financial Statements and Exhibits MOUNTAIN FUEL SUPPLY COMPANY CONDENSED BALANCE SHEETS (Unaudited)
March 31, June 30, Increase 1997 1997 (Decrease) (In Thousands) ASSETS Current assets Accounts receivable $79,441 $32,626 ($46,815) Inventories 8,154 10,745 2,591 Purchased-gas adjustments 29,331 48,866 19,535 Other current assets 3,653 2,975 (678) Total current assets 120,579 95,212 (25,367) Property, plant and equipment 827,208 840,247 13,039 Less allowances for depreciation 333,171 339,133 5,962 Net property, plant and equipment 494,037 501,114 7,077 Other assets 20,736 19,514 (1,222) $635,352 $615,840 ($19,512) LIABILITIES AND SHAREHOLDER'S EQUITY Current liabilities Checks outstanding in excess of cash balances $2,924 $2,517 ($407) Notes payable to Questar Corporation 58,700 69,900 11,200 Accounts payable and accrued expenses 68,559 38,625 (29,934) Total current liabilities 130,183 111,042 (19,141) Long-term debt 175,000 175,000 Other liabilities 10,922 11,083 161 Deferred income taxes and investment tax credits 82,234 89,901 7,667 Redeemable cumulative preferred stock 4,808 4,808 Common shareholder's equity Common stock 22,974 22,974 Additional paid-in capital 41,875 41,875 Retained earnings 167,356 159,157 (8,199) Total common shareholder's equity 232,205 224,006 (8,199) $635,352 $615,840 ($19,512)
EX-99.3 5 Item 7. Financial Statements and Exhibits. MOUNTAIN FUEL SUPPLY COMPANY STATEMENTS OF INCOME (Unaudited)
3 Months Ended 6 Months Ended 12 Months Ended June 30, June 30, June 30, 1997 1996 1997 1996 1997 1996 (In Thousands) REVENUES $63,323 $57,927 $238,636 $202,830 $407,734 $357,488 OPERATING EXPENSES Natural gas purchases 29,669 25,144 126,880 100,609 208,671 175,940 Operating and maintenance 25,802 23,746 53,206 49,167 101,149 93,981 Depreciation 7,369 6,842 15,302 13,943 29,668 26,615 Other taxes 2,546 2,732 5,289 5,851 7,509 9,261 TOTAL OPERATING EXPENSES 65,386 58,464 200,677 169,570 346,997 305,797 OPERATING INCOME (LOSS) (2,063) (537) 37,959 33,260 60,737 51,691 INTEREST AND OTHER INCOME 1,016 1,890 1,739 2,599 2,173 5,111 DEBT EXPENSE (4,465) (3,901) (8,807) (8,173) (17,271) (16,594) INCOME (LOSS) BEFORE INCOME TAXES (5,512) (2,548) 30,891 27,686 45,639 40,208 INCOME TAXES (CREDITS) (2,909) (1,931) 11,185 9,452 15,179 11,519 NET INCOME (LOSS) ($2,603) ($617) $19,706 $18,234 $30,460 $28,689
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