UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2003 |
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or |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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FOR THE TRANSITION PERIOD FROM TO |
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COMMISSION FILE NUMBER 1-3551 |
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EQUITABLE RESOURCES, INC.
(Exact name of registrant as specified in its charter)
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PENNSYLVANIA |
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25-0464690 |
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(State of incorporation or organization) |
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(IRS Employer Identification No.) |
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One Oxford Centre, Suite 3300, 301 Grant Street, Pittsburgh, Pennsylvania 15219 |
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(Address of principal executive offices, including zip code) |
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Registrant’s telephone number, including area code: (412) 553-5700 |
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NONE |
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(Former name, former address and former fiscal year, if changed since last report) |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes ý No o
Indicate the number of shares outstanding of each of issuer’s classes of common stock, as of the latest practicable date.
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Class |
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Outstanding
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Common stock, no par value |
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62,448,018 shares |
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EQUITABLE RESOURCES, INC. AND SUBSIDIARIES
Index
Statements of Consolidated Income (Unaudited)
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Three
Months Ended |
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2003 |
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2002 |
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(Thousands, except per share amounts) |
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Operating revenues |
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$ |
342,322 |
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$ |
294,043 |
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Cost of sales |
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153,970 |
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133,167 |
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Net operating revenues |
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188,352 |
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160,876 |
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Operating expenses: |
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Operation and maintenance |
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18,855 |
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17,584 |
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Production and exploration |
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9,162 |
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6,450 |
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Selling, general and administrative |
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32,262 |
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25,857 |
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Depreciation, depletion and amortization |
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18,753 |
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16,767 |
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Total operating expenses |
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79,032 |
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66,658 |
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Operating income |
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109,320 |
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94,218 |
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Charitable contribution expense |
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(9,279 |
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— |
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Equity earnings (losses) from nonconsolidated investments: |
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Westport |
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3,614 |
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(4,248 |
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Other |
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1,232 |
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1,429 |
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Total equity earnings (losses) from nonconsolidated investments |
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4,846 |
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(2,819 |
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Minority interest |
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(871 |
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(1,248 |
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Earnings before interest and taxes (EBIT) |
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104,016 |
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90,151 |
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Interest expense |
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12,321 |
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9,579 |
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Income from continuing operations before income taxes and cumulative effect of accounting change |
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91,695 |
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80,572 |
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Income taxes |
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27,216 |
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28,200 |
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Income from continuing operations before cumulative effect of accounting change |
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64,479 |
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52,372 |
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Cumulative effect of accounting change, net of tax |
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(3,556 |
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(5,519 |
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Net income |
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$ |
60,923 |
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$ |
46,853 |
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Earnings per share of common stock: |
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Basic: |
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Weighted average common shares outstanding |
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62,063 |
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63,566 |
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Income from continuing operations before cumulative effect of accounting change |
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$ |
1.04 |
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$ |
0.82 |
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Cumulative effect of accounting change, net of tax |
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(0.06 |
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(0.08 |
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Net income |
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$ |
0.98 |
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$ |
0.74 |
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Diluted: |
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Weighted average common shares outstanding |
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63,333 |
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65,063 |
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Income from continuing operations before cumulative effect of accounting change |
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$ |
1.02 |
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$ |
0.80 |
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Cumulative effect of accounting change, net of tax |
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(0.06 |
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(0.08 |
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Net income |
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$ |
0.96 |
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$ |
0.72 |
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Dividends declared per common share |
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$ |
0.20 |
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$ |
0.17 |
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The accompanying notes are an integral part of these condensed consolidated financial statements.
2
EQUITABLE RESOURCES, INC. AND SUBSIDIARIES
Statements of Condensed Consolidated Cash Flows (Unaudited)
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Three Months Ended |
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2003 |
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2002 |
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(Thousands) |
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Cash flows from operating activities: |
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Net income from continuing operations before cumulative effect of accounting change |
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$ |
64,479 |
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$ |
52,372 |
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Adjustments to reconcile net income to net cash provided by operating activities: |
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Provision for doubtful accounts |
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7,665 |
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4,269 |
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Depreciation, depletion, and amortization |
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18,753 |
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16,767 |
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Charitable contribution |
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9,279 |
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— |
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Recognition of monetized production revenue |
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(13,736 |
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(13,736 |
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Deferred income taxes |
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11,119 |
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2,200 |
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(Increase) decrease in undistributed earnings from nonconsolidated investments |
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(4,846 |
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3,284 |
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Changes in other assets and liabilities |
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(14,692 |
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28,413 |
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Total adjustments |
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