UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
May 4, 2012
Date of Report (Date of earliest event reported)
NORTHWEST NATURAL GAS COMPANY
(Exact name of registrant as specified in its charter)
Commission File No. 1-15973
Oregon | 93-0256722 | |
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
220 N.W. Second Avenue, Portland, Oregon 97209
(Address of principal executive offices) (Zip Code)
Registrants Telephone Number, including area code: (503) 226-4211
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 | Results of Operation and Financial Condition |
On May 4, 2012, Northwest Natural Gas Company (NW Natural) issued a press release announcing its earnings for the quarter ended March 31, 2012. A copy of the press release is attached as Exhibit 99.1.
The information contained in this Item 2.02 and in the accompanying exhibit shall not be incorporated by reference into any filing of NW Natural, whether made before or after the date hereof, regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference to such filing. The information in this Item 2.02, including the exhibit hereto, shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended.
Forward-Looking Statements
This report, and other presentations made by NW Natural from time to time, may contain forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as anticipates, intends, plans, seeks, believes, estimates, expects and similar references to future periods. Examples of forward-looking statements include, but are not limited to, statements regarding the following: plans, objectives, goals, strategies, future events, investments, estimated gas reserves and their financial value and benefit, customer growth, credits to customers, weather, commodity costs, customer rates, effects of financial derivatives, financial positions, revenues and earnings, dividends, performance, legislative actions and impact, rate case outcomes, regulatory actions or approvals, and other statements that are other than statements of historical facts.
Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated by the forward-looking statements. We caution you therefore against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements are discussed by reference to the factors described in Part I, Item 1A Risk Factors, and Part II, Item 7 and Item 7A Managements Discussion and Analysis of Financial Condition and Results of Operations and Quantitative and Qualitative Disclosure about Market Risk in NW Naturals most recent Annual Report on Form 10-K, and in Part I, Items 2 and 3 Managements Discussion and Analysis of Financial Condition and Results of Operations and Quantitative and Qualitative Disclosures About Market Risk, and Part II, Item 1A Risk Factors, in NW Naturals quarterly reports filed thereafter.
All forward-looking statements made in this report and all subsequent forward-looking statements, whether written or oral and whether made by or on behalf of the company, also are expressly qualified by these cautionary statements. Any forward-looking statement speaks only as of the date on which such statement is made, and NW Natural undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law. New factors emerge from time to time and it is not possible for the company to predict all such factors, nor can it assess the impact of each such factor or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statements.
Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits
The following exhibits are being furnished pursuant to Item 2.02 herein.
Exhibit |
Description | |
99.1 | Press Release of Northwest Natural Gas Company issued May 4, 2012 (furnished and not filed). |
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.
NORTHWEST NATURAL GAS COMPANY | ||||||
(Registrant) | ||||||
Dated: May 4, 2012 | /s/ David H. Anderson | |||||
Senior Vice President and | ||||||
Chief Financial Officer |
EXHIBIT INDEX
Exhibits |
Description | |
99.1 | Press Release of Northwest Natural Gas Company issued May 4, 2012 (furnished and not filed). |
Exhibit 99.1
FOR IMMEDIATE RELEASE: | May 4, 2012 |
NW Natural Reports Solid First Quarter 2012 Results
| Consolidated earnings per share in the first quarter of 2012 were $1.51 on net income of $40.6 million, compared to $1.53 per share on net income of $40.8 million in 2011. |
| The utilitys customer growth rate was 0.8 percent for the 12-month period ended March 31, 2012, compared to 0.9 percent a year earlier. |
| In April, NW Natural proposed an early credit to customers totaling $39 million, which is pending regulatory approval, for lower wholesale natural gas costs. |
| NW Natural was ranked first in the West and second in the nation in a 2012 business customer satisfaction survey. |
| The company reaffirmed its 2012 earnings-per-share guidance range of $2.35 to $2.55. |
PORTLAND, ORE.Northwest Natural Gas Company, dba NW Natural (NYSE: NWN), posted earnings per share of $1.51 on net income of $40.6 million, compared to $1.53 per share on net income of $40.8 million in 2011.
The big headline for the quarter was the dramatic drop in natural gas prices a decline that allowed us to propose an early credit of $39 million in gas cost savings to customers in Oregon and Washington, said Gregg Kantor, President and CEO of NW Natural. Its gratifying to be able to get those kinds of savings back to customers early. We were also pleased with our solid results in the quarter and with another first place ranking in the West and second place ranking in the nation from our business customers in the J.D. Power & Associates Business Customer Satisfaction Study. Its an honor we dont take for granted.
First quarter 2012 financial and operating results
Consolidated operations produced first quarter net income of $40.6 million ($1.51 per share), compared to $40.8 million ($1.53 per share) in last years quarter. The companys utility operations earned $39.8 million ($1.48 per share), compared to $40.1 million ($1.50 per share) in the same quarter of 2011. Gas storage contributed net income of $0.8 million (3 cents per share) in the 2012 quarter, compared to net income of $0.7 million (3 cents per share) in last years first quarter. Other non-utility financial results included a small gain in 2012s first quarter, compared to a small loss last year.
Utility growth rate remains around 1 percent
NW Naturals customer growth rate for the trailing 12-month period ending March 31, 2012 was 0.8 percent, with the company adding over 5,300 new customers in the period. This compared to a growth rate of 0.9 percent a year ago.
Company proposes early gas cost credits to customers
In April, the company filed requests with the Public Utility Commission of Oregon (OPUC) and the Washington Utilities and Transportation Commission (WUTC), proposing a $35 million credit to its Oregon customers and a $4 million credit to its Washington customers as a result of lower wholesale natural gas prices. If approved, the credits would be applied to customer bills starting in June rather than November when purchased gas adjustments would typically commence.
The company also filed a request with the OPUC to provide its Oregon customers with another $9 million credit, starting in June, related to revenues from gas storage and asset management services that are part of a separate regulatory sharing mechanism.
1
Gas reserves investment update
Last May, NW Natural entered into an agreement with Encana Oil & Gas (USA) Inc. to acquire gas reserves on behalf of NW Naturals utility customers. NW Naturals utility is expected to invest approximately $45-$55 million a year over a five-year period, for a total investment of about $250 million. The investment covers a portion of the expected drilling costs in exchange for working interests in multiple sections of the Jonah Field in Wyoming. The drilling area includes both future and currently producing wells. NW Naturals total investment to date was $70 million through March 31, 2012.
Results of utility operations
NW Naturals total gas sales and transportation deliveries in the first quarter of 2012, excluding deliveries of gas stored for others, were 408 million therms, up 2 percent from 401 million therms in 2011s first quarter. The increase in usage was due to residential and commercial customer growth and higher industrial demand. Margin from utility operations in 2012 increased 3 percent to $133.2 million, compared to $129.2 million in 2011, due to a combination of higher margins from residential and commercial customers and an increase in the gas cost incentive sharing mechanism.
Volumes sold to residential and commercial customers in the first quarter of 2012 were 276 million therms, up 1 percent from 274 million therms in the first quarter of 2011. Residential and commercial revenues in the quarter totaled $287.0 million, down 2 percent over first-quarter 2011 revenues of $293.6 million. The decline in revenues was due to lower gas prices and lower customer billing rates from a year ago. NW Naturals weather and decoupling mechanisms in Oregon adjusted margin up by $2.8 million in 2012, compared to a margin adjustment increase of $2.9 million in the first quarter of 2011, based on weather that was 4 percent colder than average in 2012, and 6 percent colder than average in 2011.
Gas deliveries to industrial customers in the first quarter were 132 million therms, or 4 percent higher than 128 million therms in 2011s first quarter. Margin from industrial customers was flat with last year at $7.6 million, with the manufacturing sector showing continued improvement. Volume increases are coming from the forest products industry, as well as conversions of asphalt plants, schools and other businesses from oil to natural gas.
The companys gas cost incentive sharing mechanism in Oregon provided a margin contribution of $2.6 million in the first quarter of 2012 compared to a contribution of $1.0 million in 2011.
General rate case
As previously reported, NW Natural filed a general rate case in Oregon in December 2011, the first such case filed by the company since 2002. If approved as filed, the request would result in an overall revenue increase of 6.2 percent, or $43.7 million. The request addresses higher utility costs associated with maintaining service to customers and safe and reliable pipeline system operations. Results of this rate case are expected in October, with rates effective Nov. 1, 2012.
Separate from the revenue increase request, the company is also proposing a mechanism to address expenses related to clean-up at legacy manufactured gas plant properties. The proposal would collect in rates the total costs minus insurance recoveries over a multi-year period to lessen the impact on customers. This mechanism could result in an additional 1 to 3 percent rate increase, depending upon insurance recovery collections and clean-up costs that are incurred through Sept. 30, 2012.
NW Natural ranks high among commercial customers
In the first quarter, NW Natural was ranked as the top gas utility in the West, and second-highest in the nation, in the J.D. Power & Associates Business Customer Satisfaction Study. The company continues to rank high, as well, in residential studies, routinely placing among the top gas utilities in the nation for customer satisfaction.
Gas storage results
The companys gas storage segment primarily consists of non-utility investments at the companys Mist underground facility in Oregon, at the Gill Ranch Storage (GRS) underground facility in California, and asset management services using available utility and non-utility gas storage and pipeline transportation capacity.
2
Our gas storage segment reported net income of $0.8 million for the first quarter of 2012, compared to $0.7 million last year. The increase primarily reflects an increase in revenues at Gill Ranch, which were partially offset by lower revenues and net income from contract storage and asset management services at Mist. Overall, gas storage margin increased $1.4 million to $6.7 million for the first three months of 2012, compared to $5.3 million last year.
Operations and maintenance expense
Consolidated operations and maintenance expense was $3.2 million higher in the first quarter of 2012, compared to 2011, primarily due to higher utility payroll costs related to an increase in field employees, higher employee benefit costs, and other administrative cost increases such as safety training and rate case expenses. Utility bad debt expense as a percent of revenues was well below 1 percent at 0.23 percent for the 12 months ended March 31, 2012.
Cash flows and capital structure
Cash provided by operations in the first quarter of 2012 increased to $114.1 million from $108.1 million in 2011s first quarter. The increase was principally related to temporary differences in deferred gas cost savings and other working capital accounts. Cash requirements for investing activities in the first quarter of 2012 totaled $37.7 million, up from $25.5 million in the first quarter of 2011, with the increase reflecting the companys investment of $17.2 million in utility gas reserves in the first quarter of 2012 under its agreement with Encana.
NW Naturals capitalization at March 31, 2012 reflected 49.7 percent common equity, 42.7 percent long-term debt, and 7.6 percent short-term debt. This compared to 47.9 percent common equity, 36.5 percent long-term debt, and 15.6 percent of short-term debt at March 31, 2011.
Guidance reaffirmed for 2012
The companys earnings guidance remains in the range of $2.35 to $2.55 per share. The companys 2012 earnings guidance assumes a continued weak economic recovery and customer growth, normal weather conditions, ongoing benefits from improvements to our cost structure, and no significant changes in prevailing legislative and regulatory policies or outcomes.
Dividend declaration
The board of directors of NW Natural declared a quarterly dividend of 44.5 cents a share on the companys common stock. The dividends will be payable on May 15, 2012 to shareholders of record on April 30, 2012. The companys indicated annual dividend rate is $1.78 per share.
Presentation of results
In addition to presenting results of operations and earnings amounts in total, NW Natural has expressed certain measures in this press release on an equivalent cents per share basis. These amounts reflect factors that directly impact the companys earnings. In calculating these financial measures, we allocate income tax expense based on the effective tax rate. NW Natural believes this per share information is useful because it enables readers to better understand the impact of these factors on its earnings.
Conference call arrangements
As previously reported, NW Natural will conduct a conference call for analysts at 8 a.m. Pacific Time (11 a.m. Eastern Time) on May 4th, to review the companys financial and operating results for the three months ended March 31, 2012.
To hear the conference call live, please dial 1-877-317-6789 within the United States and 1-866-605-3852 from Canada. International callers can dial 1-412-317-6789. To access the conference replay, please call 1-877-344-7529 and enter the conference identification pass code (10012478). To hear the replay from international locations, please dial 1-412-317-0088. To hear the conference by webcast, log on to NW Naturals corporate website at www.nwnatural.com.
3
Forward-looking statements
This report, and other presentations made by NW Natural from time to time, may contain forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as anticipates, intends, plans, seeks, believes, estimates, expects and similar references to future periods. Examples of forward-looking statements include, but are not limited to, statements regarding the following: plans, objectives, goals, strategies, future events, investments, estimated gas reserves and their financial value and benefit, customer growth, credits to customers, weather, commodity costs, customer rates, effects of financial derivatives, financial positions, revenues and earnings, dividends, performance, legislative actions and impact, rate case outcomes, regulatory actions or approvals, and other statements that are other than statements of historical facts.
Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated by the forward-looking statements. We caution you therefore against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements are discussed by reference to the factors described in Part I, Item 1A Risk Factors, and Part II, Item 7 and Item 7A Managements Discussion and Analysis of Financial Condition and Results of Operations, and Quantitative and Qualitative Disclosure about Market Risk in the companys most recent Annual Report on Form 10-K, and in Part I, Items 2 and 3 Managements Discussion and Analysis of Financial Condition and Results of Operations and Quantitative and Qualitative Disclosures About Market Risk, and Part II, Item 1A, Risk Factors, in the companys quarterly reports filed thereafter.
All forward-looking statements made in this report and all subsequent forward-looking statements, whether written or oral and whether made by or on behalf of the company, are expressly qualified by these cautionary statements. Any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law. New factors emerge from time to time and it is not possible for the company to predict all such factors, nor can it assess the impact of each such factor or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statements.
About NW Natural
NW Natural (NYSE:NWN) is headquartered in Portland, Ore., and provides safe, reliable, cost-effective natural gas service to approximately 682,000 residential, commercial, and industrial customers through approximately 14,000 miles of mains and service lines in western Oregon and southwestern Washington. It is the largest independent natural gas utility in the Pacific Northwest. The company has approximately $2.7 billion in total assets. The company operates and owns 16 Bcf of underground storage capacity in Mist, Ore., and also operates the designed 20 Bcf Gill Ranch underground storage facility in California, in which it owns a 75 percent undivided interest. Together, NW Natural and its subsidiaries currently own and operate underground gas storage facilities with designed storage capacity of approximately 31 Bcf in Oregon and California. Additional information is available at www.nwnatural.com.
# # #
Investor Contact: | Media Contact: | |||
Bob Hess | Kim Heiting | |||
Phone: 503-220-2388 | Phone: 503-220-2366 | |||
Email: bob.hess@nwnatural.com | Email: kah@nwnatural.com |
4
NORTHWEST NATURAL GAS COMPANY
Comparative Income Statement
(ConsolidatedUnaudited)
Three Months Ended | ||||||||||||||||
(Thousands, except per share amounts) |
03/31/12 | 03/31/11 | Change | % Change | ||||||||||||
Gross Operating Revenues |
$ | 317,494 | $ | 323,088 | $ | (5,594 | ) | (2 | %) | |||||||
Net Income |
$ | 40,607 | $ | 40,773 | $ | (166 | ) | | ||||||||
Diluted Average Shares of Common Stock Outstanding |
26,862 | 26,724 | 138 | 1 | % | |||||||||||
Basic Earnings Per Share of Common Stock |
$ | 1.52 | $ | 1.53 | $ | (0.01 | ) | (1 | %) | |||||||
Diluted Earnings Per Share of Common Stock |
$ | 1.51 | $ | 1.53 | $ | (0.02 | ) | (1 | %) | |||||||
Twelve Months Ended | ||||||||||||||||
(Thousands, except per share amounts) |
03/31/12 | 03/31/11 | Change | % Change | ||||||||||||
Gross Operating Revenues |
$ | 843,202 | $ | 848,665 | $ | (5,463 | ) | (1 | %) | |||||||
Net Income |
$ | 63,732 | $ | 69,832 | $ | (6,100 | ) | (9 | %) | |||||||
Diluted Average Shares of Common Stock Outstanding |
26,745 | 26,680 | 65 | | ||||||||||||
Basic Earnings Per Share of Common Stock |
$ | 2.39 | $ | 2.62 | $ | (0.23 | ) | (9 | %) | |||||||
Diluted Earnings Per Share of Common Stock |
$ | 2.38 | $ | 2.62 | $ | (0.24 | ) | (9 | %) |
5
NORTHWEST NATURAL GAS COMPANY
Consolidated Balance Sheets (unaudited)
Thousands |
March 31, 2012 |
March 31, 2011 |
||||||
Assets: |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 4,031 | $ | 3,480 | ||||
Restricted cash |
| 924 | ||||||
Accounts receivable |
90,817 | 94,521 | ||||||
Accrued unbilled revenue |
44,444 | 42,342 | ||||||
Allowance for uncollectible accounts |
(3,694 | ) | (3,821 | ) | ||||
Regulatory assets |
90,490 | 48,195 | ||||||
Derivative instruments |
1,824 | 4,861 | ||||||
Inventories |
61,436 | 53,266 | ||||||
Gas reserves |
6,732 | | ||||||
Income taxes receivable |
1,735 | 23,645 | ||||||
Other current assets |
13,075 | 13,292 | ||||||
|
|
|
|
|||||
Total current assets |
310,890 | 280,705 | ||||||
|
|
|
|
|||||
Non-current assets: |
||||||||
Property, plant and equipment |
2,680,537 | 2,593,553 | ||||||
Less: Accumulated depreciation |
779,683 | 733,639 | ||||||
|
|
|
|
|||||
Total property, plant and equipment - net |
1,900,854 | 1,859,914 | ||||||
Gas reserves |
61,106 | | ||||||
Regulatory assets |
368,521 | 345,452 | ||||||
Derivative instruments |
52 | 1,560 | ||||||
Other investments |
67,648 | 69,501 | ||||||
Restricted cash |
4,000 | | ||||||
Other non-current assets |
14,191 | 14,421 | ||||||
|
|
|
|
|||||
Total non-current assets |
2,416,372 | 2,290,848 | ||||||
|
|
|
|
|||||
Total assets |
$ | 2,727,262 | $ | 2,571,553 | ||||
|
|
|
|
|||||
Capitalization and liabilities: |
||||||||
Capitalization: |
||||||||
Common stock |
$ | 351,005 | $ | 343,787 | ||||
Retained earnings |
402,599 | 385,899 | ||||||
Accumulated other comprehensive income (loss) |
(7,633 | ) | (6,458 | ) | ||||
|
|
|
|
|||||
Total common stock equity |
745,971 | 723,228 | ||||||
Long-term debt |
641,700 | 551,700 | ||||||
|
|
|
|
|||||
Total capitalization |
1,387,671 | 1,274,928 | ||||||
|
|
|
|
|||||
Current liabilities: |
||||||||
Short-term debt |
113,700 | 186,435 | ||||||
Current maturities of long-term debt |
| 50,000 | ||||||
Accounts payable |
60,165 | 71,839 | ||||||
Taxes accrued |
10,509 | 10,063 | ||||||
Interest accrued |
10,648 | 11,470 | ||||||
Regulatory liabilities |
50,341 | 29,016 | ||||||
Derivative instruments |
53,697 | 25,655 | ||||||
Other current liabilities |
41,503 | 38,433 | ||||||
|
|
|
|
|||||
Total current liabilities |
340,563 | 422,911 | ||||||
|
|
|
|
|||||
Deferred credits and other non-current liabilities: |
||||||||
Deferred tax liabilities |
438,486 | 396,357 | ||||||
Regulatory liabilities |
288,131 | 263,876 | ||||||
Pension and other postretirement benefit liabilities |
189,003 | 132,053 | ||||||
Derivative instruments |
3,947 | 13,914 | ||||||
Other non-current liabilities |
79,461 | 67,514 | ||||||
|
|
|
|
|||||
Total deferred credits and other non-current liabilities |
999,028 | 873,714 | ||||||
|
|
|
|
|||||
Total capitalization and liabilities |
$ | 2,727,262 | $ | 2,571,553 | ||||
|
|
|
|
6
NORTHWEST NATURAL GAS COMPANY
Consolidated Statements of Cash Flows (unaudited)
Thousands (three months ended March 31) |
2012 | 2011 | ||||||
Operating activities: |
||||||||
Net income |
$ | 40,607 | $ | 40,773 | ||||
Adjustments to reconcile net income to cash provided by operations: |
||||||||
Depreciation and amortization |
17,950 | 17,309 | ||||||
Deferred tax liabilities |
27,089 | 25,048 | ||||||
Undistributed (earnings) losses from equity investments |
1 | 25 | ||||||
Non-cash expenses related to qualified defined benefit pension plans |
2,007 | 1,817 | ||||||
Contributions to qualified defined benefit pension plans |
(13,800 | ) | (13,645 | ) | ||||
Deferred environmental expenditures, net of recoveries |
(827 | ) | (1,759 | ) | ||||
Other |
475 | (443 | ) | |||||
Changes in assets and liabilities: |
||||||||
Receivables |
6,378 | (3,122 | ) | |||||
Inventories |
12,927 | 27,119 | ||||||
Taxes accrued |
5,072 | 16,905 | ||||||
Accounts payable |
(26,050 | ) | (14,406 | ) | ||||
Interest accrued |
4,791 | 6,288 | ||||||
Deferred gas costs |
23,663 | 196 | ||||||
Other - net |
13,771 | 5,959 | ||||||
|
|
|
|
|||||
Cash provided by operating activities |
114,054 | 108,064 | ||||||
|
|
|
|
|||||
Investing activities: |
||||||||
Capital expenditures |
(20,447 | ) | (25,403 | ) | ||||
Utility gas reserves |
(17,220 | ) | | |||||
Other |
(68 | ) | (121 | ) | ||||
|
|
|
|
|||||
Cash used in investing activities |
(37,735 | ) | (25,524 | ) | ||||
|
|
|
|
|||||
Financing activities: |
||||||||
Common stock issued, net |
1,458 | (244 | ) | |||||
Long-term debt retired |
(40,000 | ) | | |||||
Change in short-term debt |
(27,900 | ) | (71,000 | ) | ||||
Cash dividend payments on common stock |
(11,913 | ) | (11,601 | ) | ||||
Other |
234 | 328 | ||||||
|
|
|
|
|||||
Cash used in financing activities |
(78,121 | ) | (82,517 | ) | ||||
|
|
|
|
|||||
Increase (decrease) in cash and cash equivalents |
(1,802 | ) | 23 | |||||
Cash and cash equivalents - beginning of period |
5,833 | 3,457 | ||||||
|
|
|
|
|||||
Cash and cash equivalents - end of period |
$ | 4,031 | $ | 3,480 | ||||
|
|
|
|
|||||
Supplemental disclosure of cash flow information: |
||||||||
Interest paid |
$ | 6,148 | $ | 4,162 | ||||
Income taxes paid |
$ | 101 | $ | |
7
NORTHWEST NATURAL GAS COMPANY
Financial Highlights
(Unaudited)
First Quarter2012
3 Months Ended March 31, |
12 Months Ended March 31, |
|||||||||||||||||||||||
(Thousands, except per share amounts) |
2012 | 2011 | Change | 2012 | 2011 | Change | ||||||||||||||||||
Gross Operating Revenues |
$ | 317,494 | $ | 323,088 | (2 | %) | $ | 843,202 | $ | 848,665 | (1 | %) | ||||||||||||
Cost of Sales |
169,771 | 180,625 | (6 | %) | 447,768 | 456,598 | (2 | %) | ||||||||||||||||
Revenue Taxes |
7,855 | 7,955 | (1 | %) | 20,641 | 20,904 | (1 | %) | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Net Operating Revenues |
139,868 | 134,508 | 4 | % | 374,793 | 371,163 | 1 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Operating Expenses: |
||||||||||||||||||||||||
O&M |
34,416 | 31,172 | 10 | % | 128,547 | 121,486 | 6 | % | ||||||||||||||||
General Taxes |
8,836 | 8,165 | 8 | % | 29,952 | 28,788 | 4 | % | ||||||||||||||||
D&A |
17,950 | 17,309 | 4 | % | 70,645 | 66,532 | 6 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Total Operating Expenses |
61,202 | 56,646 | 8 | % | 229,144 | 216,806 | 6 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Income from Operations |
78,666 | 77,862 | 1 | % | 145,649 | 154,357 | (6 | %) | ||||||||||||||||
Other Income and Expense - net |
1,005 | 1,214 | (17 | %) | 4,314 | 5,293 | (18 | %) | ||||||||||||||||
Interest Expense - net |
11,191 | 10,449 | 7 | % | 42,830 | 42,538 | 1 | % | ||||||||||||||||
Income Tax Expense |
27,873 | 27,854 | | 43,401 | 47,280 | (8 | %) | |||||||||||||||||
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Net Income |
$ | 40,607 | $ | 40,773 | | $ | 63,732 | $ | 69,832 | (9 | %) | |||||||||||||
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Common Shares Outstanding: |
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Average for Period - basic |
26,781 | 26,670 | 26,687 | 26,622 | ||||||||||||||||||||
Average for Period - diluted |
26,862 | 26,724 | 26,745 | 26,680 | ||||||||||||||||||||
End of Period |
26,798 | 26,673 | 26,798 | 26,673 | ||||||||||||||||||||
Earnings per Share: |
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Basic |
$ | 1.52 | $ | 1.53 | (1 | %) | $ | 2.39 | $ | 2.62 | (9 | %) | ||||||||||||
Diluted |
$ | 1.51 | $ | 1.53 | $ | 2.38 | $ | 2.62 | ||||||||||||||||
Dividends Declared Per Share |
$ | 0.445 | $ | 0.435 | $ | 1.76 | $ | 1.70 | ||||||||||||||||
Book Value Per Share - end of period |
$ | 27.84 | $ | 27.11 | $ | 27.84 | $ | 27.11 | ||||||||||||||||
Market Closing Price - end of period |
$ | 45.40 | $ | 46.13 | $ | 45.40 | $ | 46.13 | ||||||||||||||||
Balance Sheet Data - end of period: |
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Total Assets |
$ | 2,727,262 | $ | 2,571,553 | $ | 2,727,262 | $ | 2,571,553 | ||||||||||||||||
Common Stock Equity |
$ | 745,971 | $ | 723,228 | $ | 745,971 | $ | 723,228 | ||||||||||||||||
Long-Term Debt |
$ | 641,700 | $ | 601,700 | $ | 641,700 | $ | 601,700 | ||||||||||||||||
(including amounts due in one year) |
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Operating Statistics: |
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Total Customers - end of period |
681,794 | 676,446 | 0.8 | % | 681,794 | 676,446 | 0.8 | % | ||||||||||||||||
Gas Deliveries (therms) |
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Res. & Comm. Customers |
276,159 | 273,881 | 683,899 | 658,351 | ||||||||||||||||||||
Industrial Firm |
10,619 | 10,864 | 37,327 | 37,799 | ||||||||||||||||||||
Industrial Interruptible |
17,730 | 17,237 | 59,601 | 59,300 | ||||||||||||||||||||
Transportation |
103,651 | 99,432 | 378,272 | 374,530 | ||||||||||||||||||||
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Total |
408,159 | 401,414 | 1,159,099 | 1,129,980 | ||||||||||||||||||||
Gas Revenues |
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Res. & Comm. Customers |
$ | 287,014 | $ | 293,605 | $ | 737,764 | $ | 736,059 | ||||||||||||||||
Industrial Firm |
8,309 | 8,845 | 30,051 | 31,539 | ||||||||||||||||||||
Industrial Interruptible |
10,048 | 10,327 | 34,539 | 36,690 | ||||||||||||||||||||
Transportation |
3,954 | 4,062 | 15,800 | 14,850 | ||||||||||||||||||||
Regulatory adjustment for income taxes |
| 286 | (7,448 | ) | 5,023 | |||||||||||||||||||
Other Revenues |
1,435 | 602 | 4,546 | 3,136 | ||||||||||||||||||||
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Total |
$ | 310,760 | $ | 317,727 | $ | 815,252 | $ | 827,297 | ||||||||||||||||
Cost of Gas Sold - Utility |
$ | 169,755 | $ | 180,610 | $ | 447,653 | $ | 456,556 | ||||||||||||||||
Revenue Taxes |
$ | 7,855 | $ | 7,955 | $ | 20,641 | $ | 20,904 | ||||||||||||||||
Net Operating Revenues (Utility Margin) |
$ | 133,150 | $ | 129,162 | $ | 346,958 | $ | 349,837 | ||||||||||||||||
Degree Days |
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Average (25-year average) |
1,886 | 1,866 | 4,285 | 4,265 | ||||||||||||||||||||
Actual |
1,954 | 1,974 | 4,632 | 4,518 | ||||||||||||||||||||
Colder (warmer) than Average |
4 | % | 6 | % | 8 | % | 6 | % |
8