Equitable Resources, Inc. (NYSE: EQT) today announced 2007 annual
earnings per diluted share (EPS) of $2.10 on net income of $257.5
million. This compares with EPS of $1.80 on net income of $220.3 million
in 2006. Several non-operational factors, discussed below, should be
considered when comparing 2007 and 2006 results, including the sale of
reserves in the second quarter 2007 and expenses incurred in 2006 and
2007 in connection with the terminated acquisition of The Peoples
Natural Gas Company and Hope Gas, Inc.
RESULTS BY SEGMENT
Equitable Supply
Equitable Supply had operating income of $263.5 million in 2007, 2.1%
lower than the $269.2 million in 2006. Total revenues for 2007 were
$501.7 million, 2.7% higher than $488.6 in 2006, due to higher realized
prices and higher sales volumes. Average well-head sales price increased
3.1% from $4.83 to $4.98 per Mcfe resulting from a higher percentage of
unhedged gas sales and a higher realized hedged price. Sales volumes
increased by 0.9 Bcfe to 77.1 Bcfe with daily sales of approximately 210
MMcfe per day at year end. Adjusting for the sale of reserves in the
second quarter 2007, sales volumes increased by 5.4%. Gathering revenues
declined by 3.5% to $107.1 million from $110.9 million, as a result of
the gathering asset contribution to Nora Gathering, LLC in the second
quarter 2007. Adjusting for the Nora transaction, gathered volumes
increased 3.3%. The average gathering fee increased 11.8% from $1.02 per
Mcfe to $1.14 per Mcfe.
Operating expenses increased from $219.4 million in 2006 to $238.1
million in 2007. Selling, general and administrative (SG&A) expenses
were higher mainly from increased reserves for certain royalty disputes
in the first quarter and other legal expenses. Depreciation, depletion
and amortization expense, and lease operating expense were also higher,
consistent with higher overall operating activity levels, but were
partially offset by lower production taxes. At Gathering, higher
depreciation, gathering and compression expense and SG&A were offset by
the absence of expenses attributable to the transferred Nora gathering
assets and lower production taxes.
Operating income for the 2007 fourth quarter totaled $75.3 million, $6.8
million higher than the $68.5 million of operating income in the fourth
quarter 2006. Revenue increased by 4.4% resulting from higher NYMEX
natural gas prices and higher sales volumes, partially offset by the
loss of Nora gathering revenues. Sales volumes increased by 0.6% to 19.4
Bcfe. Adjusting for the sale of reserves in the second quarter, sales
volume for the quarter increased 7.5% over the prior year quarter.
Operating expenses totaled $56.0 million, $1.3 million lower than last
year. Higher operating expenses were more than offset by the transferred
Nora related gathering expenses and a pension related charge in the
fourth quarter 2006.
Horizontal drilling continued to meet or exceed the company's
expectations in the fourth quarter. Equitable drilled 38 horizontal
wells. In Kentucky, Equitable drilled 26 Devonian shale wells, 5
targeting the Cleveland shale and 21 targeting the Huron shale. In West
Virginia, the company drilled 10 Devonian shale wells, 8 targeting the
Huron shale, 1 targeting the low pressure Marcellus shale in southern
West Virginia and 1 targeting the Rhinestreet shale. In Virginia, the
company drilled 2 horizontal wells in the Lower Huron shale, 1 in Nora
and 1 in Roaring Fork. The production from the horizontal wells
turned-in-line is consistent with the expected decline curve included in
the company's analyst presentation.
Since January 1, 2008, the company has spud 17 horizontal wells,
including its first Marcellus well in Pennsylvania, its first
multi-lateral well in Kentucky and its first horizontal well in the
Berea sand. The company is targeting drilling of between 250-300
horizontal wells in 2008.
During 2007, the company drilled 634 gross wells, consisting of 88
horizontal shale wells; 266 coal bed methane wells and 280 vertical
wells. The drilling program developed 165 Bcfe, a 38% increase over
2006, mainly driven by the higher productivity of horizontal wells
compared to vertical wells.
Production Guidance
In 2008, the total sales for the year are forecast to be 80-81 Bcfe.
Daily sales volumes are expected to hit 235 MMcfe by year end, a 12%
increase over the year end 2007 run rate.
Equitable Utilities
Equitable Utilities had operating income of $113.4 million for 2007,
compared with $125.2 million for 2006, a 9.4% decrease. Net revenues
increased $10.3 million or 3.7% over the previous year. Distribution net
revenues were 4.5% higher as a result of increased throughput from
weather which was 7% colder than 2006 but 9% warmer than the 30-year
normal. The pipeline net operating revenues declined by $5.1 million in
2007, primarily attributable to a rate case settlement of $7.0 million
in the first quarter of 2006, partially offset by higher rates in 2007.
Marketing net revenues were $8.9 million higher than in 2006, benefiting
from favorable storage asset optimization opportunities that were
captured at a time of unusually high commodity price and volatility and
settled in the first quarter 2007.
Total operating expenses for 2007 were 14.7% higher at $171.8 million,
compared to $149.8 million in 2006. Expenses for the acquisition of
Peoples Gas and Hope Gas, which was terminated in January 2008, totaled
$21.0 million in 2007, including a $10.1 million write down of
previously deferred transaction costs. In addition to transaction costs,
increases in labor and legal expenses contributed to the year-over-year
increase.
Operating income for the 2007 fourth quarter was $29.3 million, 36.9%
lower than the $46.4 million earned in the year ago quarter. Net
revenues were $84.7 million, $6.0 million lower than fourth quarter 2006
revenues of $90.7 million primarily due to a reduction in marketing net
revenues. Lower marketing net revenues are explained by unusually
favorable market conditions in the fourth quarter 2006 that persisted
through the first quarter 2007. Operating expenses in the quarter
increased $11.0 million, to $55.4 million in 2007. This increase
includes the $10.1 million write-off of the deferred acquisition costs.
Other Business
Organizational Restructuring
In order to better reflect the drivers necessary to execute the
company's growth strategy, Equitable is changing from a two segment
financial reporting structure to a three segment financial reporting
structure. Effective January 1, 2008, the company's segment financial
reporting will be adjusted to reflect the three new segments: Equitable
Production, Equitable Midstream and Equitable Distribution.
Equitable Production will drill and maintain wells, including both the
horizontal drilling program and coal bed methane program, as well as
explore for economic reserves of hydrocarbons in formations deeper than
currently productive horizons.
Equitable Midstream encompasses physical infrastructure downstream of
the wells including gathering pipelines, compressor stations, gas
processing facilities, storage and FERC-regulated pipelines.
Equitable Distribution serves 275,000 residential, commercial and
industrial customers in western Pennsylvania and West Virginia.
2007 Capital Expenditures
Equitable invested $805 million in capital projects during 2007. This
included $322 million for well development, $394 million for Equitable
Supply infrastructure, $88 million for Equitable Utilities, and $1
million for Corporate.
Hedging
There was no change to the company's hedge position during the quarter.
The approximate volumes and prices of Equitable's hedges for 2008
through 2010 are:
|
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|
|
2008
|
|
|
2009
|
|
|
2010
|
|
Swaps
|
|
|
|
|
|
|
|
Total Volume (Bcfe)
|
|
|
50
|
|
|
37
|
|
|
35
|
|
Average Price per Mcfe (NYMEX)*
|
|
$
|
4.62
|
|
$
|
5.91
|
|
$
|
5.96
|
|
|
|
Collars
|
|
|
|
|
|
|
|
Total Volume (Bcfe)
|
|
|
10
|
|
|
10
|
|
|
10
|
|
Average Floor Price per Mcfe (NYMEX)*
|
|
$
|
7.61
|
|
$
|
7.61
|
|
$
|
7.61
|
|
Average Cap Price per Mcfe (NYMEX)*
|
|
$
|
11.27
|
|
$
|
11.27
|
|
$
|
11.27
|
|
|
* The above price is based on a conversion rate of 1.05 MMbtu/Mcfe
|
|
|
|
Nora Field
During 2007, the company sold approximately 74 Bcfe of proved reserves
and contributed its Nora gathering assets to a limited liability
company, which is 50% owned by the company. Equitable recorded a gain of
$154.5 million on the transaction, of which $6.7 million closed in the
2007 fourth quarter, and a loss of $28.4 million for the year as the
company reduced its hedge position.
Operating Income
The company reports operating income by segment in this press release.
Both interest and income taxes are controlled on a consolidated,
corporate- wide basis, and are not allocated to the segments.
The following table reconciles operating income by segment as reported
in this press release to the consolidated operating income reported in
the company's financial statements:
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Year Ended
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
2007
|
|
2006
|
|
2007
|
|
2006
|
|
Operating income (thousands):
|
|
|
|
|
|
|
|
|
|
Equitable Supply
|
|
$
|
75,342
|
|
$
|
68,508
|
|
$
|
263,545
|
|
$
|
269,164
|
|
Equitable Utilities
|
|
|
29,262
|
|
|
46,351
|
|
|
113,447
|
|
|
125,209
|
|
Unallocated expenses
|
|
|
(10,672)
|
|
|
(5,247)
|
|
|
(65,319)
|
|
|
(21,850)
|
|
Operating Income
|
|
$
|
93,932
|
|
$
|
109,612
|
|
$
|
311,673
|
|
$
|
372,523
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated expenses are primarily due to incentive compensation. For
each period presented, the difference between equity in earnings of
nonconsolidated investments as reported on the company's statements of
consolidated income and on Equitable Supply's operational and financial
report is the earnings from the company's ownership interest in
Appalachian Natural Gas Trust. Other segment financial measures
identified in this press release are reconciled to the most comparable
financial measures calculated in accordance with GAAP on the attached
operational and financial reports.
Equitable's teleconference with securities analysts, which begins at
10:30 a.m. Eastern Time today, will be broadcast live via Equitable's
website, http://www.eqt.com
and will be available for replay for a seven day period.
Equitable Resources is an integrated energy company with emphasis on
Appalachian area natural gas production, gathering, processing,
transmission and distribution. For information please visit http://www.eqt.com.
Equitable Resources management speaks to investors from time to time.
Slides for these discussions will be available online via Equitable's
website. The slides may be updated periodically.
Forward-Looking Statements
Disclosures in this press release contain forward-looking statements.
Statements that do not relate strictly to historical or current facts
are forward-looking. Without limiting the generality of the foregoing,
forward-looking statements contained in this press release specifically
include the expectations of plans, strategies, objectives and growth and
anticipated financial and operational performance of the company and its
subsidiaries, including guidance regarding the company's drilling
programs and initiatives, the expected decline curve, infrastructure
projects, production and sales volumes, capital expenditures, capital
budget, financing plans, tax position and the company's move to three
financial reporting segments. A variety of factors could cause the
company's actual results to differ materially from the anticipated
results or other expectations expressed in the company's forward-looking
statements. The risks and uncertainties that may affect the operations,
performance and results of the company's business and forward-looking
statements include, but are not limited to, those set forth under Item
1A, "Risk Factors" of the company's most recently filed Form 10-K.
Any forward-looking statement speaks only as of the date on which such
statement is made and the company does not intend to correct or update
any forward-looking statement, whether as a result of new information,
future events or otherwise.
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EQUITABLE RESOURCES, INC. AND SUBSIDIARIES
|
|
STATEMENTS OF CONSOLIDATED INCOME (UNAUDITED)
|
|
(Thousands except per share amounts)
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
2007
|
|
2006
|
|
2007
|
|
2006
|
|
|
|
Operating revenues
|
|
$
|
384,814
|
|
$
|
353,783
|
|
$
|
1,361,406
|
|
$
|
1,267,910
|
|
Cost of sales
|
|
|
168,779
|
|
|
137,244
|
|
|
574,466
|
|
|
504,329
|
|
Net operating revenues
|
|
|
216,035
|
|
|
216,539
|
|
|
786,940
|
|
|
763,581
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
Operation and maintenance
|
|
|
28,351
|
|
|
30,368
|
|
|
106,965
|
|
|
104,620
|
|
Production
|
|
|
14,189
|
|
|
15,099
|
|
|
62,273
|
|
|
62,471
|
|
Exploration
|
|
|
300
|
|
|
209
|
|
|
862
|
|
|
802
|
|
Selling, general and administrative
|
|
|
51,387
|
|
|
35,292
|
|
|
195,365
|
|
|
125,951
|
|
Office consolidation impairment charges
|
|
-
|
|
|
-
|
|
-
|
|
|
(2,908)
|
|
Depreciation, depletion and amortization
|
|
|
27,876
|
|
|
25,959
|
|
|
109,802
|
|
|
100,122
|
|
Total operating expenses
|
|
|
122,103
|
|
|
106,927
|
|
|
475,267
|
|
|
391,058
|
|
|
|
Operating income
|
|
|
93,932
|
|
|
109,612
|
|
|
311,673
|
|
|
372,523
|
|
|
|
Gain on sale of assets, net
|
|
|
6,687
|
|
|
-
|
|
|
126,088
|
|
-
|
|
|
|
Gain on sale of available-for- sale securities, net
|
|
-
|
|
|
-
|
|
|
1,042
|
|
-
|
|
|
|
Other income
|
|
|
3,157
|
|
|
556
|
|
|
7,645
|
|
|
1,442
|
|
|
|
Equity in earnings of nonconsolidated investments
|
|
|
901
|
|
|
140
|
|
|
3,099
|
|
|
260
|
|
|
|
Interest expense
|
|
|
12,065
|
|
|
12,366
|
|
|
47,669
|
|
|
48,494
|
|
|
|
Income from continuing operations before income taxes
|
|
|
92,612
|
|
|
97,942
|
|
|
401,878
|
|
|
325,731
|
|
Income taxes
|
|
|
32,015
|
|
|
29,980
|
|
|
144,395
|
|
|
109,706
|
|
|
|
Income from continuing operations
|
|
|
60,597
|
|
|
67,962
|
|
|
257,483
|
|
|
216,025
|
|
Income from discontinued operations, net of tax of ($3,246) for
the three and twelve months ended December 31, 2006
|
|
-
|
|
|
4,261
|
|
-
|
|
|
4,261
|
|
|
|
Net income
|
|
$
|
60,597
|
|
$
|
72,223
|
|
$
|
257,483
|
|
$
|
220,286
|
|
|
|
Earnings per share of common stock:
|
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding
|
|
|
121,535
|
|
|
120,629
|
|
|
121,381
|
|
|
120,124
|
|
|
|
Income from continuing operations
|
|
$
|
0.50
|
|
$
|
0.56
|
|
$
|
2.12
|
|
$
|
1.79
|
|
Income from discontinued operations
|
|
-
|
|
|
0.04
|
|
-
|
|
|
0.04
|
|
Net income
|
|
$
|
0.50
|
|
$
|
0.60
|
|
$
|
2.12
|
|
$
|
1.83
|
|
|
|
Diluted:
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding
|
|
|
122,884
|
|
|
122,426
|
|
|
122,839
|
|
|
122,113
|
|
|
|
Income from continuing operations
|
|
$
|
0.49
|
|
$
|
0.56
|
|
$
|
2.10
|
|
$
|
1.77
|
|
Income from discontinued operations
|
|
-
|
|
|
0.03
|
|
-
|
|
|
0.03
|
|
Net income
|
|
$
|
0.49
|
|
$
|
0.59
|
|
$
|
2.10
|
|
$
|
1.80
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITABLE SUPPLY
|
|
OPERATIONAL AND FINANCIAL REPORT
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
2007
|
|
2006
|
|
2007
|
|
2006
|
|
OPERATIONAL DATA
|
|
|
|
|
|
|
|
|
|
|
|
Production:
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas and oil production (MMcfe)
|
|
|
21,038
|
|
|
|
20,556
|
|
|
|
83,114
|
|
|
|
81,371
|
|
|
Company usage, line loss (MMcfe)
|
|
|
(1,652
|
)
|
|
|
(1,286
|
)
|
|
|
(6,035
|
)
|
|
|
(5,215
|
)
|
|
Total sales volumes (MMcfe)
|
|
|
19,386
|
|
|
|
19,270
|
|
|
|
77,079
|
|
|
|
76,156
|
|
|
|
|
Average (well-head) sales price ($/Mcfe)
|
|
$
|
5.36
|
|
|
$
|
4.88
|
|
|
$
|
4.98
|
|
|
$
|
4.83
|
|
|
|
|
Lease operating expense excluding production taxes ($/Mcfe)
|
|
$
|
0.27
|
|
|
$
|
0.29
|
|
|
$
|
0.31
|
|
|
$
|
0.29
|
|
|
Production taxes ($/Mcfe)
|
|
$
|
0.40
|
|
|
$
|
0.45
|
|
|
$
|
0.44
|
|
|
$
|
0.48
|
|
|
Production depletion ($/Mcfe)
|
|
$
|
0.70
|
|
|
$
|
0.62
|
|
|
$
|
0.70
|
|
|
$
|
0.62
|
|
|
|
|
Gathering:
|
|
|
|
|
|
|
|
|
|
Gathered volumes (MMcfe)
|
|
|
20,748
|
|
|
|
28,319
|
|
|
|
94,210
|
|
|
|
108,592
|
|
|
Average gathering fee ($/Mcfe)
|
|
$
|
1.18
|
|
|
$
|
1.04
|
|
|
$
|
1.14
|
|
|
$
|
1.02
|
|
|
Gathering and compression expense ($/Mcfe)
|
|
$
|
0.50
|
|
|
$
|
0.51
|
|
|
$
|
0.49
|
|
|
$
|
0.42
|
|
|
Gathering and compression depreciation ($/Mcfe)
|
|
$
|
0.19
|
|
|
$
|
0.14
|
|
|
$
|
0.17
|
|
|
$
|
0.14
|
|
|
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
Production operating income
|
|
$
|
68,308
|
|
|
$
|
59,492
|
|
|
$
|
231,417
|
|
|
$
|
231,849
|
|
|
Gathering operating income
|
|
|
7,034
|
|
|
|
9,016
|
|
|
|
32,128
|
|
|
|
37,315
|
|
|
Total operating income
|
|
$
|
75,342
|
|
|
$
|
68,508
|
|
|
$
|
263,545
|
|
|
$
|
269,164
|
|
|
|
|
Production depletion
|
|
$
|
14,755
|
|
|
$
|
12,711
|
|
|
$
|
58,264
|
|
|
$
|
50,330
|
|
|
Gathering and compression depreciation
|
|
|
3,970
|
|
|
|
4,012
|
|
|
|
15,693
|
|
|
|
15,411
|
|
|
Other depreciation, depletion and amortization
|
|
|
1,657
|
|
|
|
1,700
|
|
|
|
5,903
|
|
|
|
4,759
|
|
|
Total depreciation, depletion and amortization
|
|
$
|
20,382
|
|
|
$
|
18,423
|
|
|
$
|
79,860
|
|
|
$
|
70,500
|
|
|
|
|
Capital expenditures (thousands)
|
|
$
|
245,236
|
|
|
$
|
130,987
|
|
|
$
|
715,722
|
|
|
$
|
335,948
|
|
|
|
|
FINANCIAL DATA (Thousands)
|
|
|
|
|
|
|
|
|
|
Production revenues
|
|
$
|
106,914
|
|
|
$
|
96,485
|
|
|
$
|
394,583
|
|
|
$
|
377,626
|
|
|
Gathering revenues
|
|
|
24,466
|
|
|
|
29,319
|
|
|
|
107,092
|
|
|
|
110,945
|
|
|
Total operating revenues
|
|
$
|
131,380
|
|
|
$
|
125,804
|
|
|
$
|
501,675
|
|
|
$
|
488,571
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
Lease operating expense excluding production taxes
|
|
|
5,687
|
|
|
|
5,868
|
|
|
|
25,361
|
|
|
|
23,818
|
|
|
Production taxes
|
|
|
8,501
|
|
|
|
9,231
|
|
|
|
36,912
|
|
|
|
38,653
|
|
|
Exploration expense
|
|
|
301
|
|
|
|
209
|
|
|
|
862
|
|
|
|
802
|
|
|
Gathering and compression
|
|
|
10,332
|
|
|
|
14,313
|
|
|
|
45,844
|
|
|
|
45,860
|
|
|
Selling, general and administrative
|
|
|
10,835
|
|
|
|
9,252
|
|
|
|
49,291
|
|
|
|
39,774
|
|
|
Depreciation, depletion and amortization
|
|
|
20,382
|
|
|
|
18,423
|
|
|
|
79,860
|
|
|
|
70,500
|
|
|
Total operating expenses
|
|
|
56,038
|
|
|
|
57,296
|
|
|
|
238,130
|
|
|
|
219,407
|
|
|
|
|
Operating income
|
|
$
|
75,342
|
|
|
$
|
68,508
|
|
|
$
|
263,545
|
|
|
$
|
269,164
|
|
|
|
|
Equity in earnings of nonconsolidated investments
|
|
$
|
864
|
|
|
$
|
76
|
|
|
$
|
2,949
|
|
|
$
|
129
|
|
|
Other income
|
|
$
|
2,596
|
|
|
$
|
363
|
|
|
$
|
6,467
|
|
|
$
|
800
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITABLE UTILITIES
|
|
OPERATIONAL AND FINANCIAL REPORT
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
2007
|
|
2006
|
|
2007
|
|
2006
|
|
OPERATIONAL DATA
|
|
|
|
|
|
|
|
|
|
Heating degree days (30-year average: Qtr: 2,070; YTD: 5,829)
|
|
|
1,802
|
|
|
1,750
|
|
|
5,332
|
|
|
4,976
|
|
|
|
Residential sales and transportation volumes (MMcf)
|
|
|
6,959
|
|
|
6,846
|
|
|
23,494
|
|
|
21,014
|
|
Commercial and industrial volumes (MMcf)
|
|
|
6,430
|
|
|
5,982
|
|
|
25,971
|
|
|
23,841
|
|
Total throughput (MMcf) - Distribution
|
|
|
13,389
|
|
|
12,828
|
|
|
49,465
|
|
|
44,855
|
|
|
|
Net operating revenues (thousands):
|
|
|
|
|
|
|
|
|
|
Distribution
|
|
|
|
|
|
|
|
|
|
Residential
|
|
$
|
26,765
|
|
$
|
27,443
|
|
$
|
99,050
|
|
$
|
92,497
|
|
Commercial & industrial
|
|
|
11,355
|
|
|
12,825
|
|
|
42,558
|
|
|
42,519
|
|
Other
|
|
|
2,300
|
|
|
2,628
|
|
|
8,192
|
|
|
8,319
|
|
Total Distribution
|
|
|
40,420
|
|
|
42,896
|
|
|
149,800
|
|
|
143,335
|
|
Pipeline
|
|
|
20,858
|
|
|
18,272
|
|
|
67,517
|
|
|
72,586
|
|
Marketing
|
|
|
23,377
|
|
|
29,567
|
|
|
67,948
|
|
|
59,089
|
|
Total net operating revenues
|
|
$
|
84,655
|
|
$
|
90,735
|
|
$
|
285,265
|
|
$
|
275,010
|
|
|
|
Operating income (thousands):
|
|
|
|
|
|
|
|
|
|
Distribution (regulated)
|
|
$
|
484
|
|
$
|
9,279
|
|
$
|
24,071
|
|
$
|
34,807
|
|
Pipeline (regulated)
|
|
|
7,790
|
|
|
8,297
|
|
|
26,153
|
|
|
33,240
|
|
Marketing
|
|
|
20,988
|
|
|
28,775
|
|
|
63,223
|
|
|
57,162
|
|
Total operating income
|
|
$
|
29,262
|
|
$
|
46,351
|
|
$
|
113,447
|
|
$
|
125,209
|
|
|
|
Capital expenditures (thousands)
|
|
$
|
26,657
|
|
$
|
19,238
|
|
$
|
87,761
|
|
$
|
64,332
|
|
|
|
FINANCIAL DATA (Thousands)
|
|
|
|
|
|
|
|
|
|
Distribution revenues (regulated)
|
|
$
|
136,070
|
|
$
|
122,535
|
|
$
|
455,506
|
|
$
|
445,168
|
|
Pipeline revenues (regulated)
|
|
|
20,484
|
|
|
18,592
|
|
|
68,547
|
|
|
74,010
|
|
Marketing revenues
|
|
|
132,728
|
|
|
117,435
|
|
|
445,153
|
|
|
380,149
|
|
Less: Intrasegment revenues
|
|
|
(15,678)
|
|
|
(14,726)
|
|
|
(52,385)
|
|
|
(56,163)
|
|
Total operating revenues
|
|
|
273,604
|
|
|
243,836
|
|
|
916,821
|
|
|
843,164
|
|
|
|
Purchased gas costs
|
|
|
188,949
|
|
|
153,101
|
|
|
631,556
|
|
|
568,154
|
|
Net operating revenues
|
|
|
84,655
|
|
|
90,735
|
|
|
285,265
|
|
|
275,010
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
Operating and maintenance
|
|
|
17,897
|
|
|
15,892
|
|
|
61,135
|
|
|
58,186
|
|
Selling, general and administrative
|
|
|
30,378
|
|
|
21,241
|
|
|
82,105
|
|
|
65,280
|
|
Office consolidation impairment charges
|
|
-
|
|
-
|
|
-
|
|
|
(2,396)
|
|
Depreciation, depletion and amortization
|
|
|
7,118
|
|
|
7,251
|
|
|
28,578
|
|
|
28,731
|
|
Total operating expenses
|
|
|
55,393
|
|
|
44,384
|
|
|
171,818
|
|
|
149,801
|
|
|
|
Operating income
|
|
$
|
29,262
|
|
$
|
46,351
|
|
$
|
113,447
|
|
$
|
125,209
|
|
|
|
Other income
|
|
$
|
561
|
|
$
|
193
|
|
$
|
1,178
|
|
$
|
642
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
