Delaware (State or other jurisdiction of incorporation) | 1-10499 (Commission File Number) | 46-0172280 (IRS Employer Identification No.) | ||
3010 W. 69th Street Sioux Falls, South Dakota (Address of principal executive offices) | 57108 (Zip Code) | |||
(605) 978-2900 (Registrant's telephone number, including area code) |
Item 2.02 | Results of Operations and Financial Condition |
Item 9.01 | Financial Statements and Exhibits. |
EXHIBIT NO. | DESCRIPTION OF DOCUMENT |
99.1* | Press Release dated February 19, 2014 |
99.2* | Presentation, dated February 19, 2014 |
NORTHWESTERN CORPORATION | |||
By: | /s/ Timothy P. Olson | ||
Timothy P. Olson | |||
Corporate Secretary |
EXHIBIT NO. | DESCRIPTION OF DOCUMENT |
99.1* | Press Release dated February 19, 2014 |
99.2* | Presentation, dated February 19, 2014 |
![]() | NorthWestern Corporation d/b/a NorthWestern Energy 3010 W. 69th Street Sioux Falls, SD 57108 www.northwesternenergy.com | |
NYSE: NWE News Release FOR IMMEDIATE RELEASE | Media Contact: Claudia Rapkoch (866) 622-8081 claudia.rapkoch@northwestern.com Investor Relations Contact: Travis Meyer (605) 978-2967 travis.meyer@northwestern.com |
Summary Financial Results | Three Months Ended December 31, | Year Ended December 31, | |||||||||||||
(in thousands, except per share amounts) | 2013 | 2012 | 2013 | 2012 | |||||||||||
Total Revenues | $ | 319,090 | $ | 280,773 | $ | 1,154,519 | $ | 1,070,342 | |||||||
Cost of Sales (Gain on CELP Arbitration) | (47,894 | ) | (47,894 | ) | |||||||||||
Cost of Sales (Other) | 136,139 | 115,444 | 479,546 | 443,328 | |||||||||||
Gross Margin | 182,951 | 213,223 | 674,973 | 674,908 | |||||||||||
Operating Expenses | |||||||||||||||
Operating, general and administrative | 76,828 | 74,241 | 285,569 | 269,966 | |||||||||||
Mountain States Transmission Intertie impairment | — | — | — | 24,039 | |||||||||||
Property and other taxes | 28,015 | 23,279 | 105,540 | 97,674 | |||||||||||
Depreciation | 28,146 | 26,680 | 112,831 | 106,044 | |||||||||||
Total Operating Expenses | 132,989 | 124,200 | 503,940 | 497,723 | |||||||||||
Operating Income | 49,962 | 89,023 | 171,033 | 177,185 | |||||||||||
Interest Expense | (19,510 | ) | (15,464 | ) | (70,486 | ) | (65,062 | ) | |||||||
Other Income | 977 | 1,238 | 7,737 | 4,372 | |||||||||||
Income Before Income Taxes | 31,429 | 74,797 | 108,284 | 116,495 | |||||||||||
Income Tax Expense | (5,336 | ) | (16,100 | ) | (14,301 | ) | (18,089 | ) | |||||||
Net Income | $ | 26,093 | $ | 58,697 | $ | 93,983 | $ | 98,406 | |||||||
Average Common Shares Outstanding | 38,626 | 37,218 | 38,145 | 36,847 | |||||||||||
Basic Earnings per Average Common Share | $ | 0.67 | $ | 1.58 | $ | 2.46 | $ | 2.67 | |||||||
Diluted Earnings per Average Common Share | $ | 0.68 | $ | 1.57 | $ | 2.46 | $ | 2.66 | |||||||
Dividends Declared per Common Share | $ | 0.38 | $ | 0.37 | $ | 1.52 | $ | 1.48 |
• | On September 26, 2013, we entered into an agreement to purchase hydro-electric generating facilities with approximately 633 megawatts of generation capacity, which is expected to close in the second half of 2014. |
• | Acquired additional natural gas production interests in Montana for approximately $68.7 million. |
• | Placed into service the Aberdeen Generating Station, a 60 MW natural gas peaking facility, which was constructed for a total cost of approximately $54.3 million. |
• | Received approval from the MPSC to increase rates effective April 1, 2013, in our natural gas distribution rate case. |
• | Successfully accessed the capital markets to fund growth projects and extend debt maturities as follows: |
◦ | Received proceeds of approximately $56.8 million after commissions and other fees from the sale of 1,381,494 common shares under our Equity Distribution Agreement, |
◦ | Extended the maturity date of our revolving credit facility to November 5, 2018, and |
◦ | Issued $35 million of First Mortgage Bonds at 3.99% and $65 million of First Mortgage Bonds at 4.85%, maturing in 2028 and 2043, respectively. |
Reconciliation of Primary Changes from 2012 to 2013 | |||||||
Twelve Months Ended Dec. 31, | |||||||
Pre-tax | Net | Diluted | |||||
($millions, except EPS) | Income | Income(1) | EPS(2) | ||||
2012 reported | $116.5 | $98.4 | $2.66 | ||||
Gross Margin | |||||||
Natural gas production | 8.1 | 5.0 | 0.13 | ||||
Montana natural gas rate increase | 6.6 | 4.1 | 0.11 | ||||
Natural gas retail volumes | 6.5 | 4.0 | 0.10 | ||||
Spion Kop revenue | 5.6 | 3.4 | 0.09 | ||||
Electric retail volumes | 5.4 | 3.3 | 0.09 | ||||
DGGS revenues | 5.1 | 3.1 | 0.08 | ||||
Property tax trackers | 3.8 | 2.3 | 0.06 | ||||
Electric transmission | 3.7 | 2.3 | 0.06 | ||||
Natural gas transportation capacity | 1.3 | 0.8 | 0.02 | ||||
Electric QF supply costs | 1.0 | 0.6 | 0.02 | ||||
Gain on CELP arbitration decision in 2012 | (47.9 | ) | (29.5 | ) | (0.77 | ) | |
Operating expenses recovered in trackers | (2.0 | ) | (1.2 | ) | (0.03 | ) | |
DSM lost revenues | (0.3 | ) | (0.2 | ) | (0.01 | ) | |
Other | 3.1 | 2.0 | 0.05 | ||||
Subtotal - Gross Margin | 0.0 | 0.0 | 0.00 | ||||
OG&A Expense | |||||||
DSIP expenses | (12.4 | ) | (7.6 | ) | (0.20 | ) | |
Hydro Transaction Costs | (4.4 | ) | (2.7 | ) | (0.07 | ) | |
Labor | (4.4 | ) | (2.7 | ) | (0.07 | ) | |
Plant operator costs | (4.2 | ) | (2.6 | ) | (0.07 | ) | |
Natural gas production | (3.0 | ) | (1.8 | ) | (0.05 | ) | |
Nonemployee directors deferred compensation | (2.6 | ) | (1.6 | ) | (0.04 | ) | |
Bad debt expense | (1.4 | ) | (0.9 | ) | (0.02 | ) | |
Pension and employee benefits | 15.4 | 9.5 | 0.25 | ||||
Operating expenses recovered in trackers | 2.0 | 1.2 | 0.03 | ||||
Other | (0.6 | ) | (0.4 | ) | (0.01 | ) | |
Subtotal - OG&A Expense | (15.6 | ) | (9.6 | ) | (0.25 | ) | |
Other | |||||||
MSTI impairment in 2012 | 24.0 | 14.8 | 0.39 | ||||
Property and other taxes | (7.8 | ) | (4.8 | ) | (0.13 | ) | |
Depreciation expense | (6.8 | ) | (4.2 | ) | (0.11 | ) | |
Interest expense | (5.4 | ) | (3.3 | ) | (0.09 | ) | |
Other income | 3.3 | 2.0 | 0.05 | ||||
Subtotal - Pretax Income | (8.3 | ) | (5.1 | ) | (0.14 | ) | |
Income tax and other items | |||||||
Permanent and flow through adjustments to income taxes | 0.9 | 0.02 | |||||
Impact of higher share count | (0.08 | ) | |||||
All other, net | 0.1 | (0.2 | ) | 0.00 | |||
Total EPS impact of above items | (0.20 | ) | |||||
2013 reported | $108.3 | $94.0 | $2.46 | ||||
(1) Income Tax Benefit (Expense) calculation on reconciling items assumes effective tax rate of 38.5%. | |||||||
(2) EPS calculated using 2013's diluted share count of 38.227 million. |
• | $11.9 million increase in natural gas and electric retail volumes due primarily to colder winter and spring weather; |
• | $8.1 million increase in natural gas production margin primarily due to the full period effect of the acquisition of gas production assets in the third quarter of 2012 and the acquisition of gas production assets in December 2013, which is subject to refund; |
• | $6.6 million increase in Montana natural gas delivery rates implemented in April 2013; |
• | $5.6 million due to the acquisition of the Spion Kop wind farm in the fourth quarter of 2012; |
• | $5.1 million higher DGGS revenue primarily due to the inclusion in 2012 results of a $6.4 million deferral of revenues collected in 2011 related to the FERC ALJ nonbinding decision; |
• | $3.8 million increase in property taxes included in trackers; |
• | $3.7 million increase in electric transmission revenues due to market pricing and other conditions; |
• | $1.3 million increase in demand for natural gas transportation capacity; |
• | $1.0 million lower QF related supply costs based on actual QF pricing and output; and |
• | $3.1 million of other miscellaneous increases. |
• | $47.9 million gain recognized in 2012 associated with a favorable arbitration decision related to a dispute over energy and capacity rates with Colstrip Energy Limited Partnership (CELP), |
• | $2.0 million lower revenues for operating expenses recovered in trackers, primarily related to customer efficiency programs; and |
• | $0.3 million decrease in Demand Side Management (DSM) lost revenues. This is a result of a $1.2 million decrease in natural gas DSM lost revenues, which includes approximately $0.5 million related to 2012, offset in part by a $0.9 million increase in electric DSM lost revenues recovered through our supply trackers related to efficiency measures implemented by customers. |
• | $12.4 million increased Distribution System Infrastructure Project (DSIP) expenses; |
• | $4.4 million increased legal and professional fees associated with the Hydro Transaction. We expect to incur additional Hydro Transaction related legal and professional fees during 2014; |
• | $4.4 million increased labor costs due primarily to compensation increases, a larger number of employees, and less time spent on capital projects, which increases expense; |
• | $4.2 million higher plant operator costs primarily due to the Spion Kop acquisition and higher maintenance and outage costs at Colstrip Unit 4 and Neal #4; |
• | $3.0 million higher natural gas production costs due to the acquisition of natural gas production assets; |
• | $2.6 million increased non-employee directors deferred compensation costs primarily due to changes in our stock price (however, deferred compensation shares are held in trust and the increase in expense is offset in other income below as gain on trading securities); |
• | $1.4 million higher bad debt expense, due to a combination of higher revenues and slower collections of receivables from customers related to our customer information systems implementation; and |
• | $0.6 million of other miscellaneous increases. |
• | $15.4 million due to decreased pension expense offset in part by higher incentive and other employee benefit costs. Our pension expense decreased to $11.9 million in 2013 as compared with $29.4 million in 2012. We expect pension expense in 2014 to be comparable with 2013 expense; and |
• | $2.0 million lower operating expenses recovered in trackers, primarily related to customer efficiency programs. These costs are included in our supply trackers and have no impact on operating income. |
(in millions) | Year Ended December 31, | |||||||
2013 | 2012 | |||||||
Income Before Income Taxes | $ | 108.3 | $ | 116.5 | ||||
Income tax calculated at 35% federal statutory rate | 37.9 | 40.8 | ||||||
Permanent or flow through adjustments: | ||||||||
State income, net of federal provisions | (3.1 | ) | 1.1 | |||||
Flow through repairs deductions | (17.8 | ) | (16.4 | ) | ||||
Production tax credits | (3.2 | ) | — | |||||
Plant and depreciation of flow through items | (0.6 | ) | (1.3 | ) | ||||
Recognition of state NOL benefit | — | (2.4 | ) | |||||
Prior year permanent return to accrual adjustments | 0.5 | (1.9 | ) | |||||
Other, net | 0.6 | (1.8 | ) | |||||
(23.6 | ) | (22.7 | ) | |||||
Income tax expense | $ | 14.3 | $ | 18.1 |
2013 | Q1 2013 | Q2 2013 | Q3 2013 | Q4 2013 | YTD 2013 | |||||||||||
Reported GAAP diluted EPS | $ | 1.01 | $ | 0.37 | $ | 0.40 | $ | 0.68 | $ | 2.46 | ||||||
Non-GAAP Adjustments: | ||||||||||||||||
Weather | (0.02 | ) | (0.02 | ) | (0.01 | ) | (0.05 | ) | ||||||||
Hydro professional fees & bridge financing | 0.05 | 0.06 | 0.11 | |||||||||||||
Prior period DSM lost revenue (incl. accrued interest) | (0.04 | ) | 0.02 | (0.02 | ) | |||||||||||
Adjusted Diluted EPS | $ | 1.01 | $ | 0.35 | $ | 0.39 | 0.75 | $ | 2.50 | |||||||
2012 | Q1 2012 | Q2 2012 | Q3 2012 | Q4 2012 | FY 2012 | |||||||||||
Reported GAAP diluted EPS | $ | 0.88 | $ | 0.31 | $ | (0.10 | ) | $ | 1.57 | $ | 2.66 | |||||
Non-GAAP Adjustments: | ||||||||||||||||
Weather | 0.09 | 0.05 | (0.06 | ) | 0.06 | 0.14 | ||||||||||
Release of MPSC DGGS deferral | (0.05 | ) | (0.05 | ) | ||||||||||||
DSM Lost revenue recovery related to 2010/2011 | (0.05 | ) | (0.05 | ) | ||||||||||||
DGGS FERC ALJ initial decision - portion related to 2011 | 0.12 | 0.12 | ||||||||||||||
MSTI Impairment | 0.40 | 0.40 | ||||||||||||||
Favorable CELP arbitration decision | (0.79 | ) | (0.79 | ) | ||||||||||||
Income tax adjustment - benefit from MT NOL | (0.06 | ) | (0.06 | ) | ||||||||||||
Adjusted Diluted EPS | $ | 0.92 | $ | 0.31 | $ | 0.36 | $ | 0.78 | $ | 2.37 | ||||||
Table assumes effective tax rate of 38.5% of pretax items |
• | Normal weather in our electric and natural gas service territories for 2014; |
• | Excludes any hydro related transaction fees (including legal and bridge financing) and any potential income generated from the regulated operation of the hydro assets post-closing, assuming regulatory approval; |
• | Excludes any potential additional impact as a result of the FERC decision regarding revenue allocation at our Dave Gates Generating Station; |
• | A consolidated income tax rate of approximately 14% - 16% of pre-tax income; and |
• | Diluted average shares outstanding of 39.3 million. |
• | potential adverse federal, state, or local legislation or regulation, including costs of compliance with existing and future environmental requirements, as well as adverse determinations by regulators, could have a material effect on our liquidity, results of operations and financial condition; |
• | changes in availability of trade credit, creditworthiness of counterparties, usage, commodity prices, fuel supply costs or availability due to higher demand, shortages, weather conditions, transportation problems or other developments, may reduce revenues or may increase operating costs, each of which could adversely affect our liquidity and results of operations; |
• | unscheduled generation outages or forced reductions in output, maintenance or repairs, which may reduce revenues and increase cost of sales or may require additional capital expenditures or other increased operating costs; and |
• | adverse changes in general economic and competitive conditions in the U.S. financial markets and in our service territories. |
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(Unaudited) | (Audited) | |||||||||||||||
Revenues | ||||||||||||||||
Electric | $ | 227,572 | $ | 199,838 | $ | 865,239 | $ | 805,554 | ||||||||
Gas | 90,953 | 80,582 | 287,605 | 263,394 | ||||||||||||
Other | 565 | 353 | 1,675 | 1,394 | ||||||||||||
Total Revenues | 319,090 | 280,773 | 1,154,519 | 1,070,342 | ||||||||||||
Operating Expenses | ||||||||||||||||
Cost of Sales | 136,139 | 67,550 | 479,546 | 395,434 | ||||||||||||
Operating, general and administrative | 76,828 | 74,241 | 285,569 | 269,966 | ||||||||||||
MSTI Impairment | — | — | — | 24,039 | ||||||||||||
Property and other taxes | 28,015 | 23,279 | 105,540 | 97,674 | ||||||||||||
Depreciation | 28,146 | 26,680 | 112,831 | 106,044 | ||||||||||||
Total Operating Expenses | 269,128 | 191,750 | 983,486 | 893,157 | ||||||||||||
Operating Income | 49,962 | 89,023 | 171,033 | 177,185 | ||||||||||||
Interest Expense, net | (19,510 | ) | (15,464 | ) | (70,486 | ) | (65,062 | ) | ||||||||
Other Income | 977 | 1,238 | 7,737 | 4,372 | ||||||||||||
Income Before Income Taxes | 31,429 | 74,797 | 108,284 | 116,495 | ||||||||||||
Income Tax Expense | (5,336 | ) | (16,100 | ) | (14,301 | ) | (18,089 | ) | ||||||||
Net Income | $ | 26,093 | $ | 58,697 | $ | 93,983 | $ | 98,406 | ||||||||
Average Common Shares Outstanding | 38,626 | 37,218 | 38,145 | 36,847 | ||||||||||||
Basic Earnings per Average Common Share | $ | 0.67 | $ | 1.58 | $ | 2.46 | $ | 2.67 | ||||||||
Diluted Earnings per Average Common Share | $ | 0.68 | $ | 1.57 | $ | 2.46 | $ | 2.66 | ||||||||
Dividends Declared per Share | $ | 0.38 | $ | 0.37 | $ | 1.52 | $ | 1.48 |
Three Months Ended December 31, | Year Ended December 31, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
(Unaudited) | (Audited) | |||||||||||
Basic computation | 38,626 | 37,218 | 38,145 | 36,847 | ||||||||
Dilutive effect of | ||||||||||||
Restricted stock and performance share awards (1) | 92 | 190 | 82 | 193 | ||||||||
Diluted computation | 38,718 | 37,408 | 38,227 | 37,040 |
Year Ended December 31, | |||||||
2013 | 2012 | ||||||
ASSETS | |||||||
Current assets | $ | 320,956 | $ | 303,128 | |||
Property, plant, and equipment, net | 2,690,128 | 2,435,590 | |||||
Goodwill | 355,128 | 355,128 | |||||
Regulatory assets | 316,952 | 367,890 | |||||
Other noncurrent assets | 32,096 | 23,797 | |||||
Total Assets | $ | 3,715,260 | $ | 3,485,533 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
Current maturities of long-term debt and capital leases | $ | 1,662 | $ | 1,612 | |||
Short-term borrowings | 140,950 | 122,934 | |||||
Other current liabilities | 320,976 | 324,719 | |||||
Long-term capital leases | 29,895 | 31,562 | |||||
Long-term debt | 1,155,097 | 1,055,074 | |||||
Deferred income taxes | 395,333 | 363,928 | |||||
Noncurrent regulatory liabilities | 348,053 | 276,618 | |||||
Other noncurrent liabilities | 292,624 | 375,054 | |||||
Total Liabilities | 2,684,590 | 2,551,501 | |||||
Total Shareholders' Equity | 1,030,670 | 934,032 | |||||
Total Liabilities and Shareholders' Equity | $ | 3,715,260 | $ | 3,485,533 |
Year Ended December 31, | |||||||
2013 | 2012 | ||||||
Operating Activities | |||||||
Net income | $ | 93,983 | $ | 98,406 | |||
Non-cash items | $ | 166,120 | $ | 132,029 | |||
Changes in operating assets and liabilities | $ | (66,387 | ) | $ | 20,758 | ||
Cash Provided by Operating Activities | $ | 193,716 | $ | 251,193 | |||
Cash Used in Investing Activities | $ | (295,354 | ) | $ | (322,213 | ) | |
Cash Provided by Financing Activities | $ | 108,373 | $ | 74,914 | |||
Increase in Cash and Cash Equivalents | $ | 6,735 | $ | 3,894 | |||
Cash and Cash Equivalents, beginning of period | $ | 9,822 | $ | 5,928 | |||
Cash and Cash Equivalents, end of period | $ | 16,557 | $ | 9,822 |
Results | ||||||||||||||
2013 | 2012 | Change | % Change | |||||||||||
(dollars in millions) | ||||||||||||||
Retail revenue | $ | 781.7 | $ | 747.9 | $ | 33.8 | 4.5 | % | ||||||
Regulatory Amortization | 25.1 | 10.0 | 15.1 | 151.0 | ||||||||||
Total Retail Revenue | 806.8 | 757.9 | 48.9 | 6.5 | ||||||||||
Transmission | 50.1 | 46.4 | 3.7 | 8.0 | ||||||||||
Ancillary Services | 1.5 | (6.1 | ) | 7.6 | (124.6 | ) | ||||||||
Wholesale | 2.0 | 3.0 | (1.0 | ) | (33.3 | ) | ||||||||
Other | 4.8 | 4.4 | 0.4 | 9.1 | ||||||||||
Total Revenues | $ | 865.2 | $ | 805.6 | $ | 59.6 | 7.4 | |||||||
Total Cost of Sales | 358.7 | 277.8 | 80.9 | 29.1 | ||||||||||
Gross Margin | $ | 506.5 | $ | 527.8 | $ | (21.3 | ) | (4.0 | )% |
Revenues | Megawatt Hours (MWH) | Avg. Customer Counts | |||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Retail Electric | |||||||||||||||||||||||
Montana | $ | 271,283 | $ | 255,623 | $ | 2,411 | $ | 2,356 | $ | 276,353 | $ | 273,984 | |||||||||||
South Dakota | 48,574 | 47,696 | 580 | 544 | 49,298 | 48,929 | |||||||||||||||||
Residential | 319,857 | 303,319 | 2,991 | 2,900 | 325,651 | 322,913 | |||||||||||||||||
Montana | 321,261 | 308,077 | 3,182 | 3,199 | 62,744 | 62,102 | |||||||||||||||||
South Dakota | 69,800 | 69,639 | 965 | 938 | 12,073 | 12,113 | |||||||||||||||||
Commercial | 391,061 | 377,716 | 4,147 | 4,137 | 74,817 | 74,215 | |||||||||||||||||
Industrial | 41,495 | 37,835 | 2,922 | 2,876 | 74 | 74 | |||||||||||||||||
Other | 29,316 | 29,074 | 187 | 199 | 5,991 | 5,990 | |||||||||||||||||
Total Retail Electric | $ | 781,729 | $ | 747,944 | $ | 10,247 | $ | 10,112 | $ | 406,533 | $ | 403,192 | |||||||||||
Total Wholesale Electric | $ | 1,993 | $ | 2,959 | $ | 94 | $ | 183 | $ | — | $ | — |
Degree Days | 2013 as compared with: | |||||||||||
Cooling Degree-Days | 2013 | 2012 | Historic Average | 2012 | Historic Average | |||||||
Montana | 438 | 450 | 301 | 3% colder | 46% warmer | |||||||
South Dakota | 848 | 1,084 | 734 | 22% colder | 16% warmer | |||||||
Degree Days | 2013 as compared with: | |||||||||||
Heating Degree-Days | 2013 | 2012 | Historic Average | 2012 | Historic Average | |||||||
Montana | 7,817 | 7,331 | 7,888 | 7% colder | 1% warmer | |||||||
South Dakota | 8,292 | 6,387 | 7,632 | 30% colder | 9% colder |
Results | ||||||||||||||
2013 | 2012 | Change | % Change | |||||||||||
(dollars in millions) | ||||||||||||||
Retail revenues | $ | 253.4 | $ | 220.8 | $ | 32.6 | 14.8 | % | ||||||
Regulatory amortization | (5.2 | ) | 7.9 | (13.1 | ) | (165.8 | ) | |||||||
Total retail revenues | 248.2 | 228.7 | 19.5 | 8.5 | ||||||||||
Wholesale and other | 39.4 | 34.7 | 4.7 | 13.5 | ||||||||||
Total Revenues | 287.6 | 263.4 | 24.2 | 9.2 | ||||||||||
Total Cost of Sales | 120.9 | 117.6 | 3.3 | 2.8 | ||||||||||
Gross Margin | $ | 166.7 | $ | 145.8 | $ | 20.9 | 14.3 | % | ||||||
Revenue | Dekatherms (Dkt) | Avg. Customer Counts | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||
(in thousands) | ||||||||||||||||||||
Retail Gas | ||||||||||||||||||||
Montana | $ | 111,605 | $ | 102,884 | $ | 12,736 | 11,826 | 160,516 | 159,431 | |||||||||||
South Dakota | 26,302 | 21,085 | 3,074 | 2,351 | 38,230 | 37,915 | ||||||||||||||
Nebraska | 24,740 | 19,223 | 2,648 | 2,129 | 36,692 | 36,595 | ||||||||||||||
Residential | 162,647 | 143,192 | 18,458 | 16,306 | 235,438 | 233,941 | ||||||||||||||
Montana | 56,356 | 51,978 | 6,591 | 6,082 | 22,455 | 22,326 | ||||||||||||||
South Dakota | 19,163 | 13,446 | 3,025 | 2,116 | 6,045 | 5,980 | ||||||||||||||
Nebraska | 13,160 | 10,250 | 1,971 | 1,674 | 4,601 | 4,580 | ||||||||||||||
Commercial | 88,679 | 75,674 | 11,587 | 9,872 | 33,101 | 32,886 | ||||||||||||||
Industrial | 1,083 | 1,021 | 129 | 121 | 264 | 272 | ||||||||||||||
Other | 1,019 | 905 | 137 | 118 | 156 | 150 | ||||||||||||||
Total Retail Gas | $ | 253,428 | $ | 220,792 | $ | 30,311 | 26,417 | 268,959 | 267,249 |
Degree Days | 2013 as compared with: | ||||||||
Heating Degree-Days | 2013 | 2012 | Historic Average | 2012 | Historic Average | ||||
Montana | 7,817 | 7,331 | 7,888 | 7% colder | 1% warmer | ||||
South Dakota | 8,292 | 6,387 | 7,632 | 30% colder | 9% colder | ||||
Nebraska | 6,446 | 5,175 | 6,302 | 25% colder | 2% colder |
Three Months Ended | |||||||||||||||||||
December 31, 2013 | Electric | Gas | Other | Eliminations | Total | ||||||||||||||
Operating revenues | $ | 227,572 | $ | 90,953 | $ | 565 | $ | — | $ | 319,090 | |||||||||
Cost of sales | 97,809 | 38,330 | — | — | 136,139 | ||||||||||||||
Gross margin | 129,763 | 52,623 | 565 | — | 182,951 | ||||||||||||||
Operating, general and administrative | 52,506 | 21,923 | 2,399 | — | 76,828 | ||||||||||||||
Property and other taxes | 20,987 | 7,025 | 3 | — | 28,015 | ||||||||||||||
Depreciation | 22,274 | 5,864 | 8 | — | 28,146 | ||||||||||||||
Operating income (loss) | 33,996 | 17,811 | (1,845 | ) | — | 49,962 | |||||||||||||
Interest expense | (15,080 | ) | (2,440 | ) | (1,990 | ) | — | (19,510 | ) | ||||||||||
Other income | (865 | ) | (514 | ) | 2,356 | — | 977 | ||||||||||||
Income tax expense | (1,113 | ) | (3,981 | ) | (242 | ) | — | (5,336 | ) | ||||||||||
Net income (loss) | $ | 16,938 | $ | 10,876 | $ | (1,721 | ) | $ | — | $ | 26,093 |
Three Months Ended | |||||||||||||||||||
December 31, 2012 | Electric | Gas | Other | Eliminations | Total | ||||||||||||||
Operating revenues | $ | 199,838 | $ | 80,582 | $ | 353 | $ | — | $ | 280,773 | |||||||||
Cost of sales | 32,924 | 34,626 | — | — | 67,550 | ||||||||||||||
Gross margin | 166,914 | 45,956 | 353 | — | 213,223 | ||||||||||||||
Operating, general and administrative | 49,846 | 20,574 | 3,821 | — | 74,241 | ||||||||||||||
Property and other taxes | 17,127 | 6,148 | 4 | — | 23,279 | ||||||||||||||
Depreciation | 21,789 | 4,883 | 8 | — | 26,680 | ||||||||||||||
Operating income (loss) | 78,152 | 14,351 | (3,480 | ) | — | 89,023 | |||||||||||||
Interest expense | (12,861 | ) | (2,403 | ) | (200 | ) | — | (15,464 | ) | ||||||||||
Other income | 812 | 398 | 28 | — | 1,238 | ||||||||||||||
Income tax benefit (expense) | (18,976 | ) | (1,214 | ) | 4,090 | — | (16,100 | ) | |||||||||||
Net income (loss) | $ | 47,127 | $ | 11,132 | $ | 438 | $ | — | $ | 58,697 |
Year Ended | |||||||||||||||||||
December 31, 2013 | Electric | Gas | Other | Eliminations | Total | ||||||||||||||
Operating revenues | $ | 865,239 | $ | 287,605 | $ | 1,675 | $ | — | $ | 1,154,519 | |||||||||
Cost of sales | 358,688 | 120,858 | — | — | 479,546 | ||||||||||||||
Gross margin | 506,551 | 166,747 | 1,675 | — | 674,973 | ||||||||||||||
Operating, general and administrative | 195,100 | 78,822 | 11,647 | — | 285,569 | ||||||||||||||
Property and other taxes | 78,536 | 26,993 | 11 | — | 105,540 | ||||||||||||||
Depreciation | 89,728 | 23,070 | 33 | — | 112,831 | ||||||||||||||
Operating income (loss) | 143,187 | 37,862 | (10,016 | ) | — | 171,033 | |||||||||||||
Interest expense | (57,920 | ) | (9,993 | ) | (2,573 | ) | — | (70,486 | ) | ||||||||||
Other income | 4,061 | 1,239 | 2,437 | — | 7,737 | ||||||||||||||
Income tax (expense) benefit | (13,905 | ) | (4,134 | ) | 3,738 | — | (14,301 | ) | |||||||||||
Net income (loss) | $ | 75,423 | $ | 24,974 | $ | (6,414 | ) | $ | — | $ | 93,983 |
Year Ended | |||||||||||||||||||
December 31, 2012 | Electric | Gas | Other | Eliminations | Total | ||||||||||||||
Operating revenues | $ | 805,554 | $ | 263,394 | $ | 1,394 | $ | — | $ | 1,070,342 | |||||||||
Cost of sales | 277,826 | 117,608 | — | — | 395,434 | ||||||||||||||
Gross margin | 527,728 | 145,786 | 1,394 | — | 674,908 | ||||||||||||||
Operating, general and administrative | 187,599 | 75,971 | 6,396 | — | 269,966 | ||||||||||||||
MSTI impairment | 24,039 | — | — | — | 24,039 | ||||||||||||||
Property and other taxes | 72,755 | 24,907 | 12 | — | 97,674 | ||||||||||||||
Depreciation | 86,559 | 19,452 | 33 | — | 106,044 | ||||||||||||||
Operating income (loss) | 156,776 | 25,456 | (5,047 | ) | — | 177,185 | |||||||||||||
Interest expense | (55,118 | ) | (9,063 | ) | (881 | ) | — | (65,062 | ) | ||||||||||
Other income | 2,630 | 1,633 | 109 | — | 4,372 | ||||||||||||||
Income tax (expense) benefit | (22,298 | ) | (692 | ) | 4,901 | — | (18,089 | ) | |||||||||||
Net income (loss) | $ | 81,990 | $ | 17,334 | $ | (918 | ) | $ | — | $ | 98,406 |
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