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Exhibit 99

 

LOGO

Release Date:    Immediate November 1, 2012

 

                                 6363 Main Street/Williamsville, NY 14221

 

                                 Timothy Silverstein

                                 Investor Relations

                                 716-857-6987

 

                                 David P. Bauer

                                 Treasurer

                                 716-857-7318

NATIONAL FUEL REPORTS 2012 EARNINGS

WILLIAMSVILLE, NY: National Fuel Gas Company (“National Fuel” or the “Company”) (NYSE:NFG) today announced consolidated earnings for the fourth quarter and fiscal year ended September 30, 2012, of $48.8 million, or $0.58 per share, and $220.1 million, or $2.63 per share, respectively.

HIGHLIGHTS

 

   

Operating results before items impacting comparability (“Operating Results”) for the fourth quarter were $36.0 million or $0.43 per share. This compares to Operating Results of $37.4 million or $0.45 per share, in the prior year’s fourth quarter. Despite a nearly 28% decrease in the average price Seneca realized on natural gas production during the quarter, Operating Results were only down $0.02 per share due to a 46.1% increase in Seneca’s production and higher transportation revenues in the Pipeline and Storage segment.

 

   

Operating Results for the fiscal year were $211.3 million, or $2.53 per share. This compares to Operating Results of $227.0 million or $2.71 per share, in the prior fiscal year. Current year Operating Results were impacted by 21% lower natural gas prices in the Exploration and Production segment and weather that was over 21% warmer compared to the prior fiscal year in the Utility and Energy Marketing segments. Higher transportation revenues in the Pipeline and Storage segment contributed to a 50% increase in that segment’s Operating Results.

 

   

In the Pipeline and Storage segment, fourth quarter earnings were $25.1 million or $0.30 per share. During the quarter, FERC approved Supply Corporation’s rate case settlement. As part of that settlement, Supply Corporation eliminated a regulatory liability associated with its postretirement benefit plan. This adjustment increased earnings by $12.8 million. Excluding this item, Operating Results in the Pipeline and Storage segment increased $4.8 million, or $0.06 per share, an increase of 67% compared to the prior year’s fourth quarter. The increase is largely driven by the impact of the Line N Expansion and Tioga County Extension projects that were placed in service during the first quarter.

 

   

Seneca’s production of crude oil and natural gas in the current quarter was 24.6 billion cubic feet equivalent (“Bcfe”), a 46.1% increase over the 16.8 Bcfe in the fourth quarter of 2011. Appalachian production increased 62.9% to 19.6 Bcfe, including 18.0 Bcfe of Marcellus production, an increase of 78.2% over the prior year’s fourth quarter. California crude oil production increased 4.3%. Total production for fiscal 2012 increased 23.3% to 83.4 Bcfe, an increase of 15.7 Bcfe.

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Seneca’s total reserves at September 30, 2012, were 1,246 Bcfe, an increase of 311 Bcfe or 33%. Seneca replaced 473% of fiscal 2012 production.

 

   

A conference call is scheduled for Friday, November 2, 2012, at 11 a.m. Eastern Time.

MANAGEMENT COMMENTS

David F. Smith, Chairman and Chief Executive Officer of National Fuel Gas Company, stated: “The fourth quarter was a successful conclusion to a fiscal year in which each of our major business segments had significant accomplishments. We continued to execute on our long-term plan to grow the company and were very pleased with our results.

“In the Pipeline and Storage segment, operating results for the fiscal year were up an impressive 50 percent on the strength of our recent expansion projects. At Seneca, annual Marcellus production increased 58 percent as a result of ongoing success in our major development areas. Crude oil production grew by 8 percent in California, which, combined with higher realized prices, contributed to a significant growth in our West Division cash flows. At the Utility, our employees did an outstanding job controlling expenses, which helped to offset the impact of the warmest winter on record in our service territory.

“As we progress into fiscal 2013 and beyond, we believe natural gas is positioned to play a critical and expanding role in the United States energy picture. National Fuel, with our diversified business model and strong balance sheet, is well positioned to capitalize on this opportunity and will remain focused on delivering long-term value for our shareholders.”

SUMMARY OF RESULTS

National Fuel had consolidated earnings for the quarter ended September 30, 2012, of $48.8 million, or $0.58 per share, compared to the prior year’s fourth quarter earnings of $37.4 million, or $0.45 per share, an increase of $11.4 million or $0.13 per share. The increase is mainly due to higher earnings in the Pipeline and Storage and Utility segments, offset by lower earnings in the Exploration and Production and Energy Marketing segments, and the All Other category. (Note: All references to earnings per share are to diluted earnings per share, and all amounts used in the discussion of earnings and operating results before items impacting comparability (“Operating Results”) are after tax unless otherwise noted.)

Consolidated earnings for the fiscal year ended September 30, 2012, of $220.1 million, or $2.63 per share, decreased $38.3 million, or $0.46 per share, from the same period in the prior year, where earnings were $258.4 million or $3.09 per share.

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Three Months

Ended September 30,

  

  

       

 

Fiscal Year

Ended September 30,

  

  

     2012        2011            2012        2011   

(in thousands except per share amounts)

            

Reported GAAP earnings

   $ 48,802      $ 37,356          $ 220,077      $ 258,402   

Items impacting comparability1:

            

Eliminate other postretirement regulatory liability

     (12,786           (12,786  

Pennsylvania impact fee (pre fiscal 2012)

             4,034     

Gain on sale of landfill gas electric generation investments

               (31,418
  

 

 

   

 

 

    

 

  

 

 

   

 

 

 

Operating Results

   $ 36,016      $ 37,356          $ 211,325      $ 226,984   
  

 

 

   

 

 

    

 

  

 

 

   

 

 

 

Reported GAAP earnings per share

   $ 0.58      $ 0.45          $ 2.63      $ 3.09   

Items impacting comparability1:

            

Eliminate other postretirement regulatory liability

     (0.15           (0.15  

Pennsylvania impact fee (pre fiscal 2012)

             0.05     

Gain on sale of landfill gas electric generation investments

               (0.38
  

 

 

   

 

 

    

 

  

 

 

   

 

 

 

Operating Results

   $ 0.43      $ 0.45          $ 2.53      $ 2.71   
  

 

 

   

 

 

    

 

  

 

 

   

 

 

 
1

See discussion of these individual items below.

As outlined in the table above, certain items included in GAAP earnings impacted the comparability of the Company’s financial results with equivalent periods in fiscal 2011. Excluding these items, Operating Results for the current quarter of $36.0 million, or $0.43 per share, decreased $1.3 million, or $0.02 per share, from the prior year’s fourth quarter where Operating Results were $37.4 million, or $0.45 per share. Excluding these items, Operating Results for the fiscal year ended September 30, 2012, of $211.3 million, or $2.53 per share, decreased $15.7 million, or $0.18 per share, from the prior year, where Operating Results were $227.0 million or $2.71 per share. Items impacting comparability will be discussed in more detail within the discussion of segment earnings below.

DISCUSSION OF RESULTS BY SEGMENT

The following discussion of the earnings of each segment is summarized in a tabular form at pages 9 through 12 of this report. It may be helpful to refer to those tables while reviewing this discussion.

Exploration and Production Segment

The Exploration and Production segment operations are carried out by Seneca Resources Corporation (“Seneca”). Seneca explores for, develops and produces natural gas and oil reserves in California, Appalachia and Kansas. Seneca completed the sale of its offshore Gulf of Mexico assets in April 2011.

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The Exploration and Production segment’s earnings in the fourth quarter of fiscal 2012 of $22.1 million, or $0.26 per share, decreased $8.7 million, or $0.11 per share, when compared with the prior year’s fourth quarter.

Overall production of natural gas and crude oil for the fourth quarter of 24.6 Bcfe increased approximately 7.8 Bcfe compared to the prior year’s fourth quarter. Production from Seneca’s Appalachian properties increased 62.9 percent, due to a 7.9 Bcfe, or 78.2 percent, increase in Marcellus production. Crude oil production in California increased 4.3 percent due to additional wells drilled at the Sespe and Midway Sunset fields.

Changes in commodity prices realized after hedging also impacted earnings. The weighted average natural gas price received by Seneca (after hedging) for the quarter ended September 30, 2012, was $3.98 per thousand cubic feet (“Mcf”), a decrease of $1.51 per Mcf compared to the prior year’s fourth quarter. Higher crude oil prices realized after hedging increased earnings. The weighted average oil price received by Seneca (after hedging) for the quarter ended September 30, 2012, was $88.98 per Barrel (“Bbl”), an increase of $6.74 per Bbl.

Depletion and lease operating expenses (“LOE”) for the current year’s fourth quarter increased over last year’s fourth quarter due in part to the higher production activity. On a per unit basis, depletion decreased $0.06 per thousand cubic feet equivalent (“Mcfe”) due to higher reserves at fiscal year end. LOE decreased $0.20 per Mcfe due to higher production and lower steam fuel costs in California. Operating Results were also reduced by higher property, franchise and other taxes due to the Pennsylvania impact fee (see discussion below), higher interest expense, due to a higher outstanding debt balance, and higher state income taxes.

In February 2012, the Commonwealth of Pennsylvania passed legislation that includes a “natural gas impact fee.” The legislation, which covers essentially all of Seneca’s Marcellus Shale wells, imposes an annual fee for a period of 15 years on each well drilled. The per well impact fee is adjusted annually based on three factors: the age of the well, changes in the Consumer Price Index and the average monthly NYMEX price for natural gas. The fee is retroactive and applied to wells drilled in the current fiscal year and in all previous years. The impact fee increased property, franchise and other taxes in the current year’s fourth quarter by $1.4 million (pre-tax).

The Exploration and Production segment’s earnings of $96.5 million, or $1.15 per share, for the fiscal year ended September 30, 2012, decreased $27.7 million, or $0.33 per share, when compared to the prior fiscal year. The impact fee, described above, recorded in the current fiscal year was $13.8 million (pre-tax) of which $6.2 million (pre-tax) related to prior fiscal years and $1.4 million (pre-tax) related to the fourth quarter of fiscal 2012. Excluding the $6.2 million impact fee related to prior fiscal years, the Exploration and Production segment’s Operating Results for the fiscal year ended September 30, 2012, were $100.5 million, or $1.20 per share, a decrease of $23.7 million, or $0.28 per share, when compared with the prior fiscal year.

Overall production for the fiscal year ended September 30, 2012, increased 23.3 percent. Excluding fiscal 2011 Gulf of Mexico production of 5.2 Bcfe due to the April 2011 sale of Seneca’s offshore Gulf of Mexico assets, production increased 33.4 percent or 20.9 Bcfe. Production from Seneca’s Appalachian properties increased 45.4 percent, mainly due to a 20.5 Bcfe or 58.1 percent increase in Marcellus production. Crude oil production in California increased 7.8 percent.

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Changes in commodity prices realized after hedging also impacted earnings. The weighted average natural gas price received by Seneca (after hedging) for the fiscal year ended September 30, 2012, was $4.27 per Mcf, a decrease of $1.12 per Mcf. Higher crude oil prices realized after hedging increased earnings. The weighted average crude oil price received by Seneca (after hedging) for the fiscal year ended September 30, 2012, was $90.88 per Bbl, an increase of $9.75 per Bbl.

Depletion, LOE and general and administrative expenses (“G&A”) for the fiscal year ended September 30, 2012, increased compared to the prior fiscal year due primarily to the higher production activity discussed above. On a per unit basis, depletion increased $0.08 per Mcfe, LOE decreased $0.08 per Mcfe and G&A decreased $0.08 per Mcfe. Operating results were also reduced by higher interest expense, due to a higher outstanding debt balance, and higher state income taxes.

Pipeline and Storage Segment

The Pipeline and Storage segment operations are carried out by National Fuel Gas Supply Corporation (“Supply Corporation”) and Empire Pipeline, Inc. The Pipeline and Storage segment provides natural gas transportation and storage services to affiliated and non-affiliated companies through an integrated system of pipelines and underground natural gas storage fields in western New York and western Pennsylvania.

The Pipeline and Storage segment’s earnings of $25.1 million, or $0.30 per share, for the quarter ended September 30, 2012, increased $17.6 million, or $0.21 per share, when compared with the same period in the prior fiscal year. During the quarter, FERC approved Supply Corporation’s rate case settlement which provided for, among other things, an increase in base tariff rates, lower depreciation rates, and implementation of a fuel tracker for retained gas volumes. As part of that settlement, Supply Corporation eliminated a regulatory liability associated with its postretirement benefit plan. This adjustment increased earnings by $12.8 million.

Excluding this item, Operating Results in the Pipeline and Storage segment, increased $4.8 million or $0.06 per share. The increase in earnings is mainly due to higher transportation revenues from the Tioga County Extension and Line N Expansion projects, which were completed and placed in service in the current fiscal year’s first quarter. The increase in base tariff rates, lower depreciation expense and lower operating expenses also increased Operating Results. Operating Results were reduced by lower efficiency gas revenues as a result of adopting a fuel tracker for retained gas volumes, which eliminates revenue recognition for efficiency gas.

The Pipeline and Storage segment’s earnings of $60.5 million, or $0.72 per share, for the fiscal year ended September 30, 2012, increased $29.0 million, or $0.34 per share, when compared with the same period in the prior fiscal year. Excluding the $12.8 million adjustment of the regulatory liability associated with Supply Corporation’s postretirement benefit plan discussed above, Operating Results increased $16.2 million or $0.19 per share. The increase was mostly due to higher transportation revenues from the Tioga County Extension and Line N Expansion projects, higher base tariff rates and lower operating expenses noted above. Earnings were reduced by lower efficiency gas revenues due to the decline in natural gas prices and implementation of the fuel tracker noted above.

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Utility Segment

The Utility segment operations are carried out by National Fuel Gas Distribution Corporation, which sells or transports natural gas to customers located in western New York and northwestern Pennsylvania.

The Utility segment’s earnings of $5.9 million, or $0.07 per share, for the quarter ended September 30, 2012, increased $5.0 million, or $0.06 per share, when compared with the same period in the prior fiscal year. The increase was due to a regulatory true-up adjustment in the prior year’s fourth quarter that did not recur in the current year’s fourth quarter and lower income taxes.

The Utility segment’s earnings of $58.6 million, or $0.70 per share, for the fiscal year ended September 30, 2012, decreased from earnings of $63.2 million, or $0.76 per share, for the fiscal year ended September 30, 2011. Warmer weather in Pennsylvania was the main reason for the decrease in earnings. Temperatures in Pennsylvania were 21.4 percent warmer in the fiscal year ended September 30, 2012, than the prior fiscal year. Higher depreciation expense also reduced earnings. The decrease in earnings was partially offset by the impact of certain regulatory adjustments in the prior fiscal year that did not recur, lower interest expense on deferred gas costs and lower income tax expense.

Energy Marketing Segment

National Fuel Resources, Inc. (“NFR”) comprises the Company’s Energy Marketing segment. NFR markets natural gas to industrial, wholesale, commercial, public authority and residential customers primarily in western and central New York and northwestern Pennsylvania, offering competitively priced natural gas to its customers.

The Energy Marketing segment’s loss for the quarter ended September 30, 2012, of $0.5 million, or $0.01 per share, increased $0.2 million, from the prior year’s fourth quarter loss of $0.3 million or less than $0.01 per share. The increased loss in the current year’s fourth quarter was primarily due to lower average margins.

Earnings for the fiscal year ended September 30, 2012, of $4.2 million, or $0.05 per share, decreased $4.6 million, or $0.06 per share, from the prior fiscal year, mainly due to a decrease in average margins and lower retail sales volumes. The decrease in average margins for the fiscal year ended September 30, 2012 was largely driven by a lower benefit derived from the Energy Marketing segment’s contracts for storage capacity. The decrease in retail sales volumes was primarily a result of warmer weather.

Corporate and All Other

The Corporate and All Other category includes the following active, wholly owned subsidiaries of the Company: National Fuel Gas Midstream Corporation (“Midstream”), formed to build, own and operate natural gas processing and pipeline gathering facilities in the Appalachian region; and Seneca’s Northeast division, which markets high quality hardwoods from Appalachian land holdings.

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For the quarter ended September 30, 2012, the Corporate and All Other category had a loss of $3.7 million, or $0.04 per share, compared to a loss of $1.4 million, or $0.02 per share in the prior year’s fourth quarter. The increased loss is mainly due to higher income taxes, lower income from unconsolidated subsidiaries and higher Corporate operating expenses. Higher earnings from Midstream’s pipeline gathering and natural gas processing operations partially offset the higher loss.

Earnings in the Corporate and All Other category for the fiscal year ended September 30, 2012, were $0.3 million, or $0.01 per share, a decrease of $30.4 million, or $0.35 per share, when compared to the earnings for the fiscal year ended September 30, 2011. The comparability of the results for the fiscal years ended September 30, 2012, and September 30, 2011, was impacted by a $31.4 million gain realized on the February 2011 Horizon Power, Inc. sale of its interest in certain entities that owned electric generation assets powered by landfill gas.

Excluding this item, Operating Results of $0.3 million, or $0.01 per share, for the fiscal year ended September 30, 2012, increased from a loss of $0.7 million or $0.02 per share in the prior fiscal year. The increase in Operating Results is mainly due to higher earnings from Midstream’s pipeline gathering and natural gas processing operations.

EARNINGS GUIDANCE

The Company is increasing its GAAP earnings guidance for fiscal 2013 to a range of $2.65 to $2.95 per share (the previous range had been $2.45 to $2.75). This updated guidance reflects Seneca’s updated production forecast for fiscal 2013, which is now a range of 95 to 107 Bcfe (the previous range had been 92 to 105 Bcfe), and an assumed flat NYMEX price of $3.50 per MMBTU for natural gas and $85 per Bbl for crude oil. It also assumes Seneca’s per unit DD&A expense is in a range of $2.10 to $2.25 per Mcfe (the previous range had been $2.30 to $2.40).

EARNINGS TELECONFERENCE

The Company will host a conference call on Friday, November 2, 2012, at 11 a.m. (Eastern Time) to discuss this announcement. There are two ways to access this call. For those with Internet access, visit the investor relations page at National Fuel’s website at investor.nationalfuelgas.com. For those without Internet access, access is also provided by dialing (toll-free) 1-800-299-6183, and using the passcode “95413478.” For those unable to listen to the live conference call, a replay will be available at approximately 2 p.m. (Eastern Time) at the same website link and by phone at (toll-free) 1-888-286-8010 using passcode “80430237.” Both the webcast and telephonic replay will be available until the close of business on Friday, November 9, 2012.

National Fuel is an integrated energy company with $5.9 billion in assets comprised of the following four operating segments: Exploration and Production, Pipeline and Storage, Utility, and Energy Marketing. Additional information about National Fuel is available at: www.nationalfuelgas.com or through its investor information service at 1-800-334-2188.

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Analyst Contact:

    Timothy J. Silverstein   (716) 857-6987

Media Contact:

    Donna L. DeCarolis   (716) 857-7872

 

 

Certain statements contained herein, including those regarding estimated future earnings, and statements that are identified by the use of the words “anticipates,” “estimates,” “expects,” “forecasts,” “intends,” “plans,” “predicts,” “projects,” “believes,” “seeks,” “will,” “may” and similar expressions, are “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties, which could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. The Company’s expectations, beliefs and projections contained herein are expressed in good faith and are believed to have a reasonable basis, but there can be no assurance that such expectations, beliefs or projections will result or be achieved or accomplished. In addition to other factors, the following are important factors that could cause actual results to differ materially from those discussed in the forward-looking statements: factors affecting the Company’s ability to successfully identify, drill for and produce economically viable natural gas and oil reserves, including among others geology, lease availability, title disputes, weather conditions, shortages, delays or unavailability of equipment and services required in drilling operations, insufficient gathering, processing and transportation capacity, the need to obtain governmental approvals and permits, and compliance with environmental laws and regulations; changes in laws, regulations or judicial interpretations to which the Company is subject, including those involving derivatives, taxes, safety, employment, climate change, other environmental matters, real property, and exploration and production activities such as hydraulic fracturing; changes in the price of natural gas or oil; impairments under the SEC’s full cost ceiling test for natural gas and oil reserves; uncertainty of oil and gas reserve estimates; significant differences between the Company’s projected and actual production levels for natural gas or oil; changes in demographic patterns and weather conditions; changes in the availability, price or accounting treatment of derivative financial instruments; governmental/regulatory actions, initiatives and proceedings, including those involving rate cases (which address, among other things, allowed rates of return, rate design and retained natural gas), environmental/safety requirements, affiliate relationships, industry structure, and franchise renewal; delays or changes in costs or plans with respect to Company projects or related projects of other companies, including difficulties or delays in obtaining necessary governmental approvals, permits or orders or in obtaining the cooperation of interconnecting facility operators; financial and economic conditions, including the availability of credit, and occurrences affecting the Company’s ability to obtain financing on acceptable terms for working capital, capital expenditures and other investments, including any downgrades in the Company’s credit ratings and changes in interest rates and other capital market conditions; changes in economic conditions, including global, national or regional recessions, and their effect on the demand for, and customers’ ability to pay for, the Company’s products and services; the creditworthiness or performance of the Company’s key suppliers, customers and counterparties; economic disruptions or uninsured losses resulting from major accidents, fires, severe weather, natural disasters, terrorist activities, acts of war, cyber attacks or pest infestation; changes in price differential between similar quantities of natural gas at different geographic locations, and the effect of such changes on the demand for pipeline transportation capacity to or from such locations; other changes in price differentials between similar quantities of oil or natural gas having different quality, heating value, geographic location or delivery date; significant differences between the Company’s projected and actual capital expenditures and operating expenses; changes in laws, actuarial assumptions, the interest rate environment and the return on plan/trust assets related to the Company’s pension and other post-retirement benefits, which can affect future funding obligations and costs and plan liabilities; the cost and effects of legal and administrative claims against the Company or activist shareholder campaigns to effect changes at the Company; increasing health care costs and the resulting effect on health insurance premiums and on the obligation to provide other post-retirement benefits; or increasing costs of insurance, changes in coverage and the ability to obtain insurance. The Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date thereof.

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NATIONAL FUEL GAS COMPANY

RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS

QUARTER ENDED SEPTEMBER 30, 2012

 

(Thousands of Dollars)    Exploration &
Production
    Pipeline &
Storage
    Utility      Energy
Marketing
    Corporate /
All Other
    Consolidated*  

Fourth quarter 2011 GAAP earnings

   $ 30,734      $ 7,479      $ 829       $ (321   $ (1,365   $ 37,356   

Drivers of operating results

             

Higher (lower) crude oil prices

     3,091                 3,091   

Higher (lower) natural gas prices

     (20,028              (20,028

Higher (lower) natural gas production

     27,112                 27,112   

Higher (lower) crude oil production

     1,345                 1,345   

Lower (higher) lease operating expenses

     (2,617              (2,617

Lower (higher) depreciation / depletion

     (9,862     542             (601     (9,921

Higher (lower) processing plant revenues

     (852              (852

Higher (lower) transportation and storage revenues

       6,635               6,635   

Higher (lower) efficiency gas revenues

       (1,624            (1,624

Higher (lower) gathering and processing revenues

              1,843        1,843   

Lower (higher) operating expenses

     951        688        241           (753     1,127   

Lower (higher) property, franchise and other taxes

     (1,351              (1,351

Regulatory true-up adjustments

         1,666             1,666   

Higher (lower) income from unconsolidated subsidiaries

              (749     (749

Higher (lower) margins

            (128       (128

Higher (lower) interest income

         327             327   

Lower (higher) interest expense

     (2,991              (2,991

Lower (higher) income tax expense/effective tax rate

     (3,520     (1,138     2,547           (2,623     (4,734

All other / rounding

     64        (269     256         (44     502        509   
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Fourth quarter 2012 operating results

     22,076        12,313        5,866         (493     (3,746     36,016   

Items impacting comparability:

             

Elimination of other post-retirement regulatory liability

       12,786               12,786   
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Fourth quarter 2012 GAAP earnings

   $ 22,076      $ 25,099      $ 5,866       $ (493   $ (3,746   $ 48,802   
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

 

* Amounts do not reflect intercompany eliminations

 

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NATIONAL FUEL GAS COMPANY

RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE

QUARTER ENDED SEPTEMBER 30, 2012

 

     Exploration &
Production
    Pipeline
& Storage
    Utility      Energy
Marketing
    Corporate /
All Other
    Consolidated*  

Fourth quarter 2011 GAAP earnings

   $ 0.37      $ 0.09      $ 0.01       $      $ (0.02   $ 0.45   

Drivers of operating results

             

Higher (lower) crude oil prices

     0.04                 0.04   

Higher (lower) natural gas prices

     (0.24              (0.24

Higher (lower) natural gas production

     0.32                 0.32   

Higher (lower) crude oil production

     0.02                 0.02   

Lower (higher) lease operating expenses

     (0.03              (0.03

Lower (higher) depreciation / depletion

     (0.12     0.01             (0.01     (0.12

Higher (lower) processing plant revenues

     (0.01              (0.01

Higher (lower) transportation and storage revenues

       0.08               0.08   

Higher (lower) efficiency gas revenues

       (0.02            (0.02

Higher (lower) gathering and processing revenues

              0.02        0.02   

Lower (higher) operating expenses

     0.01        0.01                  (0.01     0.01   

Lower (higher) property, franchise and other taxes

     (0.02              (0.02

Regulatory true-up adjustments

         0.02             0.02   

Higher (lower) income from unconsolidated subsidiaries

              (0.01     (0.01

Higher (lower) margins

                       

Higher (lower) interest income

                       

Lower (higher) interest expense

     (0.04              (0.04

Lower (higher) income tax expense/effective tax rate

     (0.04     (0.01     0.03           (0.03     (0.05

All other / rounding

            (0.01     0.01         (0.01     0.02        0.01   
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Fourth quarter 2012 operating results

     0.26        0.15        0.07         (0.01     (0.04     0.43   

Items impacting comparability:

             

Elimination of other post-retirement regulatory liability

       0.15               0.15   
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Fourth quarter 2012 GAAP earnings

   $ 0.26      $ 0.30      $ 0.07       $ (0.01   $ (0.04   $ 0.58   
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

 

* Amounts do not reflect intercompany eliminations

 

Page 10


NATIONAL FUEL GAS COMPANY

RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS

YEAR ENDED SEPTEMBER 30, 2012

 

(Thousands of Dollars)    Exploration &
Production
    Pipeline &
Storage
    Utility     Energy
Marketing
    Corporate /
All Other
    Consolidated**  

Fiscal 2011 GAAP earnings

   $ 124,189      $ 31,515      $ 63,228      $ 8,801      $ 30,669      $ 258,402   

Items impacting comparability:

            

Gain on sale of unconsolidated subsidiaries

             (31,418     (31,418
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Fiscal 2011 operating results

     124,189        31,515        63,228        8,801        (749     226,984   

Drivers of operating results

            

Higher (lower) Appalachian and West Coast crude oil prices

     19,156                19,156   

Higher (lower) Appalachian and West Coast natural gas prices

     (47,684             (47,684

Higher (lower) Appalachian and West Coast natural gas production

     68,921                68,921   

Higher (lower) Appalachian and West Coast crude oil production

     10,325                10,325   

Lower Gulf Coast natural gas and crude oil revenues

     (25,218             (25,218

Lower (higher) lease operating expenses

     (6,572             (6,572

Lower (higher) depreciation / depletion

     (26,532     (595     (1,267       (830     (29,224

Higher (lower) transportation and storage revenues

       20,342              20,342   

Higher (lower) efficiency gas revenues

       (6,055           (6,055

Higher (lower) gathering and processing revenues

             4,046        4,046   

Lower (higher) operating costs

     (2,685     2,703        272            290   

Lower (higher) property, franchise and other taxes

     (3,403     (358     913          606        (2,242

Warmer weather

         (10,081         (10,081

Regulatory true-up adjustments

         2,509            2,509   

Higher (lower) income from unconsolidated subsidiaries

             (444     (444

Higher (lower) margins

           (4,468     354        (4,114

Higher AFUDC *

       625              625   

Higher (lower) interest income

     636          560            1,196   

Lower (higher) interest expense

     (7,344       820            (6,524

Lower (higher) income tax expense/effective tax rate

     (3,202     (115     1,117          (2,618     (4,818

All other / rounding

     (55     (321     519        (164     (72     (93
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Fiscal 2012 operating results

     100,532        47,741        58,590        4,169        293        211,325   

Items impacting comparability:

            

Elimination of other post-retirement regulatory liability

       12,786              12,786   

Pennsylvania impact fee

     (4,034             (4,034
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Fiscal 2012 GAAP earnings

   $ 96,498      $ 60,527      $ 58,590      $ 4,169      $ 293      $ 220,077   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

* AFUDC = Allowance for Funds Used During Construction
** Amounts do not reflect intercompany eliminations

 

Page 11


NATIONAL FUEL GAS COMPANY

RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE

YEAR ENDED SEPTEMBER 30, 2012

 

     Exploration &
Production
    Pipeline &
Storage
    Utility     Energy
Marketing
    Corporate /
All Other
    Consolidated**  

Fiscal 2011 GAAP earnings

   $ 1.48      $ 0.38      $ 0.76      $ 0.11      $ 0.36      $ 3.09   

Items impacting comparability:

            

Gain on sale of unconsolidated subsidiaries

             (0.38     (0.38
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Fiscal 2011 operating results

     1.48        0.38        0.76        0.11        (0.02     2.71   

Drivers of operating results

            

Higher (lower) Appalachian and West Coast crude oil prices

     0.23                0.23   

Higher (lower) Appalachian and West Coast natural gas prices

     (0.57             (0.57

Higher (lower) Appalachian and West Coast natural gas production

     0.82                0.82   

Higher (lower) Appalachian and West Coast crude oil production

     0.12                0.12   

Lower Gulf Coast natural gas and crude oil revenues

     (0.30             (0.30

Lower (higher) lease operating expenses

     (0.08             (0.08

Lower (higher) depreciation / depletion

     (0.32     (0.01     (0.02       (0.01     (0.36

Higher (lower) transportation and storage revenues

       0.24              0.24   

Higher (lower) efficiency gas revenues

       (0.07           (0.07

Higher (lower) gathering and processing revenues

             0.05        0.05   

Lower (higher) operating costs

     (0.03     0.03                     

Lower (higher) property, franchise and other taxes

     (0.04            0.01          0.01        (0.02

Warmer weather

         (0.12         (0.12

Regulatory true-up adjustments

         0.03            0.03   

Higher (lower) income from unconsolidated subsidiaries

             (0.01     (0.01

Higher (lower) margins

           (0.05            (0.05

Higher AFUDC *

       0.01              0.01   

Higher (lower) interest income

     0.01          0.01            0.02   

Lower (higher) interest expense

     (0.09       0.01            (0.08

Lower (higher) income tax expense/effective tax rate

     (0.04            0.01          (0.03     (0.06

All other / rounding

     0.01        (0.01     0.01        (0.01     0.02        0.02   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Fiscal 2012 operating results

     1.20        0.57        0.70        0.05        0.01        2.53   

Items impacting comparability:

            

Elimination of other post-retirement regulatory liability

       0.15              0.15   

Pennsylvania impact fee

     (0.05             (0.05
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Fiscal 2012 GAAP earnings

   $ 1.15      $ 0.72      $ 0.70      $ 0.05      $ 0.01      $ 2.63   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

* AFUDC = Allowance for Funds Used During Construction
** Amounts do not reflect intercompany eliminations

 

Page 12


NATIONAL FUEL GAS COMPANY

AND SUBSIDIARIES

(Thousands of Dollars, except per share amounts)

 

     Three Months Ended
September 30,
(Unaudited)
    Twelve Months Ended
September 30,
(Unaudited)
 

SUMMARY OF OPERATIONS

   2012     2011     2012     2011  

Operating Revenues

   $ 313,261      $ 286,034      $ 1,626,853      $ 1,778,842   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating Expenses:

        

Purchased Gas

     24,700        46,374        415,589        628,732   

Operation and Maintenance

     89,541        90,371        401,397        400,519   

Property, Franchise and Other Taxes

     20,150        18,188        90,288        81,902   

Depreciation, Depletion and Amortization

     71,606        55,910        271,530        226,527   
  

 

 

   

 

 

   

 

 

   

 

 

 
     205,997        210,843        1,178,804        1,337,680   

Operating Income

     107,264        75,191        448,049        441,162   

Other Income (Expense):

        

Gain on Sale of Unconsolidated Subsidiaries

                          50,879   

Other Income

     1,058        1,817        5,133        5,947   

Interest Income

     2,002        1,639        3,689        2,916   

Interest Expense on Long-Term Debt

     (21,408     (17,573     (82,002     (73,567

Other Interest Expense

     (1,386     (541     (4,238     (4,554
  

 

 

   

 

 

   

 

 

   

 

 

 

Income Before Income Taxes

     87,530        60,533        370,631        422,783   

Income Tax Expense

     38,728        23,177        150,554        164,381   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Income Available for Common Stock

   $ 48,802      $ 37,356      $ 220,077      $ 258,402   
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings Per Common Share:

        

Basic

   $ 0.59      $ 0.45      $ 2.65      $ 3.13   

Diluted

   $ 0.58      $ 0.45      $ 2.63      $ 3.09   

Weighted Average Common Shares:

        

Used in Basic Calculation

     83,305,793        82,743,764        83,127,844        82,514,015   
  

 

 

   

 

 

   

 

 

   

 

 

 

Used in Diluted Calculation

     83,855,991        83,715,222        83,739,771        83,670,802   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

Page 13


NATIONAL FUEL GAS COMPANY

AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

(Thousands of Dollars)

   September 30,
2012
     September 30,
2011
 

ASSETS

     

Property, Plant and Equipment

   $ 6,615,813       $ 5,646,918   

Less - Accumulated Depreciation, Depletion and Amortization

     1,876,010         1,646,394   
  

 

 

    

 

 

 

Net Property, Plant and Equipment

     4,739,803         4,000,524   
  

 

 

    

 

 

 

Current Assets:

     

Cash and Temporary Cash Investments

     74,494         80,428   

Hedging Collateral Deposits

     364         19,701   

Receivables - Net

     115,818         131,885   

Unbilled Utility Revenue

     19,652         17,284   

Gas Stored Underground

     49,795         54,325   

Materials and Supplies - at average cost

     28,577         27,932   

Other Current Assets

     56,121         64,923   

Deferred Income Taxes

     10,755         15,423   
  

 

 

    

 

 

 

Total Current Assets

     355,576         411,901   
  

 

 

    

 

 

 

Other Assets:

     

Recoverable Future Taxes

     150,941         144,377   

Unamortized Debt Expense

     13,409         10,571   

Other Regulatory Assets

     549,702         484,397   

Deferred Charges

     7,591         5,552   

Other Investments

     86,774         79,365   

Goodwill

     5,476         5,476   

Fair Value of Derivative Financial Instruments

     27,616         76,085   

Other

     1,105         2,836   
  

 

 

    

 

 

 

Total Other Assets

     842,614         808,659   
  

 

 

    

 

 

 

Total Assets

   $ 5,937,993       $ 5,221,084   
  

 

 

    

 

 

 

CAPITALIZATION AND LIABILITIES

     

Capitalization:

     

Comprehensive Shareholders’ Equity

     

Common Stock, $1 Par Value Authorized - 200,000,000 Shares; Issued and
Outstanding - 83,330,140 Shares and 82,812,677 Shares, Respectively

   $ 83,330       $ 82,813   

Paid in Capital

     669,501         650,749   

Earnings Reinvested in the Business

     1,306,284         1,206,022   
  

 

 

    

 

 

 

Total Common Shareholders’ Equity Before Items of Other Comprehensive Loss

     2,059,115         1,939,584   

Accumulated Other Comprehensive Loss

     (99,020      (47,699
  

 

 

    

 

 

 

Total Comprehensive Shareholders’ Equity

     1,960,095         1,891,885   

Long-Term Debt, Net of Current Portion

     1,149,000         899,000   
  

 

 

    

 

 

 

Total Capitalization

     3,109,095         2,790,885   
  

 

 

    

 

 

 

Current and Accrued Liabilities:

     

Notes Payable to Banks and Commercial Paper

     171,000         40,000   

Current Portion of Long-Term Debt

     250,000         150,000   

Accounts Payable

     87,985         126,709   

Amounts Payable to Customers

     19,964         15,519   

Dividends Payable

     30,416         29,399   

Interest Payable on Long-Term Debt

     29,491         25,512   

Customer Advances

     24,055         19,643   

Customer Security Deposits

     17,942         17,321   

Other Accruals and Current Liabilities

     79,099         108,636   

Fair Value of Derivative Financial Instruments

     24,527         9,728   
  

 

 

    

 

 

 

Total Current and Accrued Liabilities

     734,479         542,467   
  

 

 

    

 

 

 

Deferred Credits:

     

Deferred Income Taxes

     1,065,757         955,384   

Taxes Refundable to Customers

     66,392         65,543   

Unamortized Investment Tax Credit

     2,005         2,586   

Cost of Removal Regulatory Liability

     139,611         135,940   

Other Regulatory Liabilities

     23,864         17,177   

Pension and Other Post-Retirement Liabilities

     516,197         481,520   

Asset Retirement Obligations

     119,246         75,731   

Other Deferred Credits

     161,347         153,851   
  

 

 

    

 

 

 

Total Deferred Credits

     2,094,419         1,887,732   
  

 

 

    

 

 

 

Commitments and Contingencies

               
  

 

 

    

 

 

 

Total Capitalization and Liabilities

   $ 5,937,993       $ 5,221,084   
  

 

 

    

 

 

 

 

Page 14


NATIONAL FUEL GAS COMPANY

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

     Twelve Months Ended
September 30,
 

(Thousands of Dollars)

   2012     2011  

Operating Activities:

    

Net Income Available for Common Stock

   $ 220,077      $ 258,402   

Adjustments to Reconcile Net Income to Net Cash

    

Provided by Operating Activities:

    

Gain on Sale of Unconsolidated Subsidiaries

            (50,879

Depreciation, Depletion and Amortization

     271,530        226,527   

Deferred Income Taxes

     144,150        164,251   

Excess Tax Costs (Benefits) Associated with Stock-Based Compensation Awards

     (985     1,224   

Elimination of Other Post-Retirement Regulatory Liability

     (21,672       

Other

     12,952        15,651   

Change in:

    

Hedging Collateral Deposits

     19,337        (8,567

Receivables and Unbilled Utility Revenue

     13,859        3,887   

Gas Stored Underground and Materials and Supplies

     5,405        (9,934

Other Current Assets

     9,789        83,245   

Accounts Payable

     (6,570     896   

Amounts Payable to Customers

     4,445        (22,590

Customer Advances

     4,412        (7,995

Customer Security Deposits

     621        (999

Other Accruals and Current Liabilities

     10,633        242   

Other Assets

     (13,584     15,259   

Other Liabilities

     (5,187     (27,470
  

 

 

   

 

 

 

Net Cash Provided by Operating Activities

   $ 669,212      $ 641,150   
  

 

 

   

 

 

 

Investing Activities:

    

Capital Expenditures

   ($ 1,045,209   ($ 801,476

Net Proceeds from Sale of Unconsolidated Subsidiaries

            59,365   

Net Proceeds from Sale of Oil and Gas Producing Properties

            63,501   

Other

     446        (2,908
  

 

 

   

 

 

 

Net Cash Used in Investing Activities

   ($ 1,044,763   ($ 681,518
  

 

 

   

 

 

 

Financing Activities:

    

Changes in Notes Payable to Banks and Commercial Paper

   $ 131,000      $ 40,000   

Excess Tax Benefits (Costs) Associated with Stock-Based Compensation Awards

     985        (1,224

Reduction of Long-Term Debt

     (150,000     (200,000

Net Proceeds From Issuance of Long-Term Debt

     496,085          

Dividends Paid on Common Stock

     (118,798     (114,559

Net Proceeds From Issuance (Repurchase) of Common Stock

     10,345        (592
  

 

 

   

 

 

 

Net Cash Provided by (Used in) Financing Activities

   $ 369,617      ($ 276,375
  

 

 

   

 

 

 

Net Decrease in Cash and Temporary Cash Investments

     (5,934     (316,743

Cash and Temporary Cash Investments at Beginning of Period

     80,428        397,171   
  

 

 

   

 

 

 

Cash and Temporary Cash Investments at September 30

   $ 74,494      $ 80,428   
  

 

 

   

 

 

 

 

Page 15


NATIONAL FUEL GAS COMPANY

AND SUBSIDIARIES

SEGMENT OPERATING RESULTS AND STATISTICS

(UNAUDITED)

 

(Thousands of Dollars, except per share amounts)    Three Months Ended
September 30,
         Twelve Months Ended
September 30,
 

EXPLORATION AND PRODUCTION SEGMENT

   2012     2011     Variance          2012     2011     Variance  

Operating Revenues

   $ 146,732      $ 130,463      $ 16,269         $ 558,180      $ 519,035      $ 39,145   
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 

Operating Expenses:

               

Operation and Maintenance:

               

General and Administrative Expense

     12,540        14,174        (1,634        53,792        49,504        4,288   

Lease Operating Expense

     23,540        19,514        4,026           83,361        73,250        10,111   

All Other Operation and Maintenance Expense

     1,620        1,450        170           6,485        6,645        (160

Property, Franchise and Other Taxes

     4,622        2,544        2,078           23,620        12,179        11,441   

Depreciation, Depletion and Amortization

     51,363        36,191        15,172           187,624        146,806        40,818   
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 
     93,685        73,873        19,812           354,882        288,384        66,498   
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 

Operating Income

     53,047        56,590        (3,543        203,298        230,651        (27,353

Other Income (Expense):

               

Interest Income

     423        (16     439           1,493        (27     1,520   

Other Income

                                    1        (1

Other Interest Expense

     (8,379     (3,577     (4,802        (29,243     (17,402     (11,841
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 

Income Before Income Taxes

     45,091        52,997        (7,906        175,548        213,223        (37,675

Income Tax Expense

     23,015        22,263        752           79,050        89,034        (9,984
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 

Net Income

   $ 22,076      $ 30,734      $ (8,658      $ 96,498      $ 124,189      $ (27,691
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 

Net Income Per Share (Diluted)

   $ 0.26      $ 0.37      $ (0.11      $ 1.15      $ 1.48      $ (0.33
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 
     Three Months Ended
September 30,
         Twelve Months Ended
September 30,
 

PIPELINE AND STORAGE SEGMENT

   2012     2011     Variance          2012     2011     Variance  

Revenues from External Customers

   $ 58,336      $ 30,956      $ 27,380         $ 172,312      $ 134,071      $ 38,241   

Intersegment Revenues

     22,529        20,200        2,329           86,963        81,037        5,926   
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 

Total Operating Revenues

     80,865        51,156        29,709           259,275        215,108        44,167   
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 

Operating Expenses:

               

Purchased Gas

     480        26        454           674        12        662   

Operation and Maintenance

     19,868        20,927        (1,059        78,397        82,555        (4,158

Property, Franchise and Other Taxes

     5,386        5,287        99           21,618        21,067        551   

Depreciation, Depletion and Amortization

     8,636        9,470        (834        38,182        37,266        916   
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 
     34,370        35,710        (1,340        138,871        140,900        (2,029
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 

Operating Income

     46,495        15,446        31,049           120,404        74,208        46,196   

Other Income (Expense):

               

Interest Income

     61        73        (12        199        324        (125

Other Income

     1,151        1,238        (87        3,182        2,574        608   

Other Interest Expense

     (6,324     (6,233     (91        (25,603     (25,737     134   
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 

Income Before Income Taxes

     41,383        10,524        30,859           98,182        51,369        46,813   

Income Tax Expense

     16,284        3,045        13,239           37,655        19,854        17,801   
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 

Net Income

   $ 25,099      $ 7,479      $ 17,620         $ 60,527      $ 31,515      $ 29,012   
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 

Net Income Per Share (Diluted)

   $ 0.30      $ 0.09      $ 0.21         $ 0.72      $ 0.38      $ 0.34   
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 

 

Page 16


NATIONAL FUEL GAS COMPANY

AND SUBSIDIARIES

SEGMENT OPERATING RESULTS AND STATISTICS

(UNAUDITED)

 

(Thousands of Dollars, except per share amounts)    Three Months Ended
September 30,
         Twelve Months Ended
September 30,
 

UTILITY SEGMENT

   2012     2011     Variance          2012     2011     Variance  

Revenues from External Customers

   $ 81,682      $ 85,051      $ (3,369      $ 704,518      $ 835,853      $ (131,335

Intersegment Revenues

     1,961        1,962        (1        14,604        16,642        (2,038
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 

Total Operating Revenues

     83,643        87,013        (3,370        719,122        852,495        (133,373
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 

Operating Expenses:

               

Purchased Gas

     23,448        30,399        (6,951        340,325        460,115        (119,790

Operation and Maintenance

     32,237        32,708        (471        176,938        179,258        (2,320

Property, Franchise and Other Taxes

     9,246        9,650        (404        41,873        44,582        (2,709

Depreciation, Depletion and Amortization

     10,254        9,822        432           42,757        40,808        1,949   
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 
     75,185        82,579        (7,394        601,893        724,763        (122,870
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 

Operating Income

     8,458        4,434        4,024           117,229        127,732        (10,503

Other Income (Expense):

               

Interest Income

     1,945        1,564        381           2,765        2,049        716   

Other Income

     216        315        (99        887        1,212        (325

Other Interest Expense

     (8,671     (8,193     (478        (33,181     (34,440     1,259   
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 

Income (Loss) Before Income Taxes

     1,948        (1,880     3,828           87,700        96,553        (8,853

Income Tax Expense (Benefit)

     (3,918     (2,709     (1,209        29,110        33,325        (4,215
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 

Net Income

   $ 5,866      $ 829      $ 5,037         $ 58,590      $ 63,228      $ (4,638
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 

Net Income Per Share (Diluted)

   $ 0.07      $ 0.01      $ 0.06         $ 0.70      $ 0.76      $ (0.06
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 
     Three Months Ended
September 30,
         Twelve Months Ended
September 30,
 

ENERGY MARKETING SEGMENT

   2012     2011     Variance          2012     2011     Variance  

Revenues from External Customers

   $ 24,757      $ 37,827      $ (13,070      $ 186,579      $ 284,546      $ (97,967

Intersegment Revenues

     290        263        27           1,425        420        1,005   
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 

Total Operating Revenues

     25,047        38,090        (13,043        188,004        284,966        (96,962
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 

Operating Expenses:

               

Purchased Gas

     25,130        37,976        (12,846        175,605        265,692        (90,087

Operation and Maintenance

     1,454        1,497        (43        6,373        6,050        323   

Property, Franchise and Other Taxes

     22        12        10           81        46        35   

Depreciation, Depletion and Amortization

     21        19        2           90        47        43   
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 
     26,627        39,504        (12,877        182,149        271,835        (89,686
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 

Operating Income (Loss)

     (1,580     (1,414     (166        5,855        13,131        (7,276

Other Income (Expense):

               

Interest Income

     62        32        30           188        104        84   

Other Income

     12        15        (3        100        75        25   

Other Interest Expense

     (22     (5     (17        (41     (20     (21
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 

Income (Loss) Before Income Taxes

     (1,528     (1,372     (156        6,102        13,290        (7,188

Income Tax Expense (Benefit)

     (1,035     (1,051     16           1,933        4,489        (2,556
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 

Net Income (Loss)

   $ (493   $ (321   $ (172      $ 4,169      $ 8,801      $ (4,632
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 

Net Income (Loss) Per Share (Diluted)

   $ (0.01   $      $ (0.01      $ 0.05      $ 0.11      $ (0.06
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 

 

Page 17


NATIONAL FUEL GAS COMPANY

AND SUBSIDIARIES

SEGMENT OPERATING RESULTS AND STATISTICS

(UNAUDITED)

 

(Thousands of Dollars, except per share amounts)    Three Months Ended
September 30,
         Twelve Months Ended
September 30,
 

ALL OTHER

   2012     2011     Variance          2012     2011     Variance  

Revenues from External Customers

   $ 1,523      $ 1,507      $ 16         $ 4,307      $ 4,401      $ (94

Intersegment Revenues

     5,943        2,990        2,953           16,771        10,017        6,754   
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 

Total Operating Revenues

     7,466        4,497        2,969           21,078        14,418        6,660   
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 

Operating Expenses:

               

Purchased Gas

                                    48        (48

Operation and Maintenance

     1,226        784        442           4,020        3,914        106   

Property, Franchise and Other Taxes

     327        146        181           896        637        259   

Depreciation, Depletion and Amortization

     1,132        210        922           2,091        840        1,251   
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 
     2,685        1,140        1,545           7,007        5,439        1,568   
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 

Operating Income

     4,781        3,357        1,424           14,071        8,979        5,092   

Other Income (Expense):

               

Gain on Sale of Unconsolidated Subsidiaries

                                    50,879        (50,879

Interest Income

     39        49        (10        175        247        (72

Other Income

     (1,085     (60     (1,025        (1,305     (469     (836

Other Interest Expense

     (449     (536     87           (1,738     (2,173     435   
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 

Income Before Income Taxes

     3,286        2,810        476           11,203        57,463        (46,260

Income Tax Expense (Benefit)

     1,976        (1,372     3,348           4,335        18,961        (14,626
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 

Net Income

   $ 1,310      $ 4,182      $ (2,872      $ 6,868      $ 38,502      $ (31,634
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 

Net Income Per Share (Diluted)

   $ 0.02      $ 0.05      $ (0.03      $ 0.08      $ 0.46      $ (0.38
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 

 

Page 18


NATIONAL FUEL GAS COMPANY

AND SUBSIDIARIES

SEGMENT OPERATING RESULTS AND STATISTICS

(UNAUDITED)

 

(Thousands of Dollars, except per share amounts)    Three Months Ended
September 30,
         Twelve Months Ended
September 30,
 

CORPORATE

   2012     2011     Variance          2012     2011     Variance  

Revenues from External Customers

   $ 231      $ 230      $ 1         $ 957      $ 936      $ 21   

Intersegment Revenues

     1,028        1,028                  3,865        3,983        (118
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 

Total Operating Revenues

     1,259        1,258        1           4,822        4,919        (97
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 

Operating Expenses:

               

Operation and Maintenance

     4,449        3,733        716           14,644        14,307        337   

Property, Franchise and Other Taxes

     547        549        (2        2,200        3,391        (1,191

Depreciation, Depletion and Amortization

     200        198        2           786        760        26   
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 
     5,196        4,480        716           17,630        18,458        (828
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 

Operating Loss

     (3,937     (3,222     (715        (12,808     (13,539     731   

Other Income (Expense):

               

Interest Income

     22,768        18,737        4,031           88,337        77,454        10,883   

Other Income

     764        309        455           2,269        2,554        (285

Interest Expense on Long-Term Debt

     (21,408     (17,573     (3,835        (82,002     (73,567     (8,435

Other Interest Expense

     (837     (797     (40        (3,900     (2,017     (1,883
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 

Loss Before Income Taxes

     (2,650     (2,546     (104        (8,104     (9,115     1,011   

Income Tax Expense (Benefit)

     2,406        3,001        (595        (1,529     (1,282     (247
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 

Net Loss

   $ (5,056   $ (5,547   $ 491         $ (6,575   $ (7,833   $ 1,258   
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 

Net Loss Per Share (Diluted)

   $ (0.06   $ (0.07   $ 0.01         $ (0.07   $ (0.10   $ 0.03   
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 
     Three Months Ended
September 30,
         Twelve Months Ended
September 30,
 

INTERSEGMENT ELIMINATIONS

   2012     2011     Variance          2012     2011     Variance  

Intersegment Revenues

   $ (31,751   $ (26,443   $ (5,308      $ (123,628   $ (112,099   $ (11,529
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 

Operating Expenses:

               

Purchased Gas

     (24,358     (22,027     (2,331        (101,015     (97,135     (3,880

Operation and Maintenance

     (7,393     (4,416     (2,977        (22,613     (14,964     (7,649
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 
     (31,751     (26,443     (5,308        (123,628     (112,099     (11,529
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 

Operating Income

                                             

Other Income (Expense):

               

Interest Income

     (23,296     (18,800     (4,496        (89,468     (77,235     (12,233

Other Interest Expense

     23,296        18,800        4,496           89,468        77,235        12,233   
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 

Net Income

   $      $      $         $      $      $   
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 

Net Income Per Share (Diluted)

   $      $      $         $      $      $   
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 

 

Page 19


NATIONAL FUEL GAS COMPANY

AND SUBSIDIARIES

SEGMENT INFORMATION (Continued)

(Thousands of Dollars)

 

     Three Months Ended
September 30,
(Unaudited)
         Twelve Months Ended
September 30,
(Unaudited)
 
     2012     2011     Increase
(Decrease)
         2012     2011     Increase
(Decrease)
 

Capital Expenditures:

               

Exploration and Production

   $ 95,251 (1)    $ 175,300 (2)    $ (80,049      $ 693,810 (1)(2)    $ 648,815 (2)(3)    $ 44,995   

Pipeline and Storage

     46,914 (1)      54,237 (2)      (7,323        144,167 (1)(2)      129,206 (2)      14,961   

Utility

     18,426        18,969        (543        58,284        58,398        (114

Energy Marketing

     350        131        219           770        460        310   
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 

Total Reportable Segments

     160,941        248,637        (87,696        897,031        836,879        60,152   

All Other

     13,229        10,735 (2)      2,494           80,017 (2)      17,022 (2)      62,995   

Corporate

     55        77        (22        346        285        61   
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 

Total Capital Expenditures

   $ 174,225      $ 259,449      $ (85,224      $ 977,394      $ 854,186      $ 123,208   
  

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

 

 

(1) 

Capital expenditures for the quarter and year ended September 30, 2012 include $37.8 million of accrued capital expenditures in the Exploration and Production segment, the majority of which was in the Appalachian region, and $2.7 million of accrued capital expenditures in the Pipeline and Storage segment. These amounts have been excluded from the Consolidated Statement of Cash Flows at September 30, 2012 since they represent non-cash investing activities at that date.

(2) 

Capital expenditures for the year ended September 30, 2012 exclude $99.6 million of capital expenditures in the Exploration and Production segment, the majority of which was in the Appalachian region, $7.3 million of capital expenditures in the Pipeline and Storage segment, and $1.4 million of capital expenditures in the All Other category. These amounts were accrued at September 30, 2011 and paid during the year ended September 30, 2012. These amounts were excluded from the Consolidated Statement of Cash Flows at September 30, 2011 since they represented non-cash investing activities at that date. These amounts have been included in the Consolidated Statement of Cash Flows at September 30, 2012.

(3) 

Capital expenditures for the Exploration and Production segment for the year ended September 30, 2011 exclude $55.5 million of capital expenditures, the majority of which was in the Appalachian region. This amount was accrued at September 30, 2010 and paid during the year ended September 30, 2011. This amount was excluded from the Consolidated Statement of Cash Flows at September 30, 2010 since it represented a non-cash investing activity at that date. This amount has been included in the Consolidated Statement of Cash Flows at September 30, 2011.

 

DEGREE DAYS

 

                          Percent Colder
(Warmer) Than:
 

Three Months Ended September 30

   Normal      2012      2011      Normal(1)     Last Year(1)  

Buffalo, NY

     178         125         77         (29.8     62.3   

Erie, PA

     135         124         73         (8.1     69.9   

Twelve Months Ended September 30

                                 

Buffalo, NY

     6,729         5,296         6,751         (21.3     (21.6

Erie, PA

     6,277         4,999         6,359         (20.4     (21.4

(1) Percents compare actual 2012 degree days to normal degree days and actual 2012 degree days to actual 2011 degree days.

 

Page 20


NATIONAL FUEL GAS COMPANY

AND SUBSIDIARIES

EXPLORATION AND PRODUCTION INFORMATION

 

     Three Months Ended
September 30,
         Twelve Months Ended
September 30,
 
     2012      2011     Increase
(Decrease)
         2012      2011      Increase
(Decrease)
 

Gas Production/Prices:

                  

Production (MMcf)

                  

Appalachia

     19,538         11,959        7,579           62,663         42,979         19,684   

West Coast

     798         831        (33        3,468         3,447         21   

Gulf Coast

             (51 )(1)      51                   4,041         (4,041
  

 

 

    

 

 

   

 

 

      

 

 

    

 

 

    

 

 

 

Total Production

     20,336         12,739        7,597           66,131         50,467         15,664   
  

 

 

    

 

 

   

 

 

      

 

 

    

 

 

    

 

 

 

Average Prices (Per Mcf)

                  

Appalachia

   $ 2.72       $ 4.37      $ (1.65      $ 2.71       $ 4.37       $ (1.66

West Coast

     2.42         5.08        (2.66        3.43         4.56         (1.13

Gulf Coast

     N/M         N/M        N/M           N/M         5.02         N/M   

Weighted Average

     2.71         4.41        (1.70        2.75         4.43         (1.68

Weighted Average after Hedging

     3.98         5.49        (1.51        4.27         5.39         (1.12

Oil Production/Prices:

                  

Production (Thousands of Barrels)

                  

Appalachia

     8         11        (3        36         45         (9

West Coast

     698         669        29           2,834         2,628         206   

Gulf Coast

                                      187         (187
  

 

 

    

 

 

   

 

 

      

 

 

    

 

 

    

 

 

 

Total Production

     706         680        26           2,870         2,860         10   
  

 

 

    

 

 

   

 

 

      

 

 

    

 

 

    

 

 

 

Average Prices (Per Barrel)

                  

Appalachia

   $ 92.81       $ 84.20      $ 8.61         $ 93.94       $ 86.58       $ 7.36   

West Coast

     102.76         101.45        1.31           107.13         96.45         10.68   

Gulf Coast

     N/M         N/M        N/M           N/M         88.57         N/M   

Weighted Average

     102.65         101.17        1.48           106.97         95.78         11.19   

Weighted Average after Hedging

     88.98         82.24        6.74           90.88         81.13         9.75   

Total Production (Mmcfe)

     24,572         16,819        7,753           83,351         67,627         15,724   
  

 

 

    

 

 

   

 

 

      

 

 

    

 

 

    

 

 

 

Selected Operating Performance Statistics:

                  

General & Administrative Expense per Mcfe(2)

   $ 0.51       $ 0.84      $ (0.33      $ 0.65       $ 0.73       $ (0.08

Lease Operating Expense per Mcfe(2)

   $ 0.96       $ 1.16      $ (0.20      $ 1.00       $ 1.08       $ (0.08

Depreciation, Depletion & Amortization per Mcfe(2)

   $ 2.09       $ 2.15      $ (0.06      $ 2.25       $ 2.17       $ 0.08   

 

(1) 

The sale of Gulf Coast properties in April 2011 and various adjustments to prior months’ production resulted in negative oil production.

(2) 

Refer to page 16 for the General and Administrative Expense, Lease Operating Expense and Depreciation, Depletion, and Amortization Expense for the Exploration and Production segment.

N/M Not Meaningful

 

Page 21


NATIONAL FUEL GAS COMPANY

AND SUBSIDIARIES

EXPLORATION AND PRODUCTION INFORMATION

Hedging Summary for Fiscal 2013

 

SWAPS

   Volume    Average Hedge Price  

Oil

   1.7 MMBBL    $ 94.21 / BBL   

Gas

   50.2 BCF    $ 4.76 / MCF   

Hedging Summary for Fiscal 2014

 

SWAPS

   Volume    Average Hedge Price  

Oil

   0.8 MMBBL    $ 97.19 / BBL   

Gas

   30.4 BCF    $ 4.26 / MCF   

Hedging Summary for Fiscal 2015

 

SWAPS

   Volume    Average Hedge Price  

Oil

   0.1 MMBBL    $ 90.20 / BBL   

Gas

   18.1 BCF    $ 4.07 / MCF   

Hedging Summary for Fiscal 2016

 

SWAPS

   Volume    Average Hedge Price  

Gas

   17.9 BCF    $ 4.07 / MCF   

Hedging Summary for Fiscal 2017

 

SWAPS

   Volume      Average Hedge Price  

Gas

     17.9 BCF       $ 4.07 / MCF   

Gross Wells in Process of Drilling

Twelve Months Ended September 30, 2012

 

     East     West      Total
Company
 

Wells in Process - Beginning of Period

       

Exploratory

     5.00        0.00         5.00   

Developmental

     101.00 (1)      0.00         101.00   

Wells Commenced

       

Exploratory

     3.00        1.00         4.00   

Developmental

     54.00        57.00         111.00   

Wells Completed

       

Exploratory

     7.00        0.00         7.00   

Developmental

     71.00        57.00         128.00   

Wells Plugged & Abandoned

       

Exploratory

     0.00        0.00         0.00   

Developmental

     2.00        0.00         2.00   

Wells in Process - End of Period

       

Exploratory

     1.00        1.00         2.00   

Developmental

     82.00        0.00         82.00   

 

(1) 

Beginning of year number has been adjusted to remove one developmental well.

Net Wells in Process of Drilling

Twelve Months Ended September 30, 2012

 

     East     West      Total
Company
 

Wells in Process - Beginning of Period

       

Exploratory

     5.00        0.00         5.00   

Developmental

     68.00 (2)      0.00         68.00   

Wells Commenced

       

Exploratory

     3.00        0.13         3.13   

Developmental

     44.00        56.99         100.99   

Wells Completed

       

Exploratory

     7.00        0.00         7.00   

Developmental

     50.50        56.99         107.49   

Wells Plugged & Abandoned

       

Exploratory

     0.00        0.00         0.00   

Developmental

     2.00        0.00         2.00   

Wells in Process - End of Period

       

Exploratory

     1.00        0.13         1.13   

Developmental

     59.50        0.00         59.50   

 

(2) 

Beginning of year number has been adjusted to remove one developmental well.

 

Page 22


NATIONAL FUEL GAS COMPANY

AND SUBSIDIARIES

EXPLORATION AND PRODUCTION INFORMATION

Reserve Quantity Information

 

     Gas MMcf  
     U.S.  
     Appalachian
Region
    West Coast
Region
    Total
Company
 

Proved Developed and Undeveloped Reserves:

      

September 30, 2011

     606,606        68,316        674,922   

Extensions and Discoveries

     435,460        638        436,098   

Revisions of Previous Estimates

     (53,992     (2,463     (56,455

Production

     (62,663     (3,468     (66,131
  

 

 

   

 

 

   

 

 

 

September 30, 2012

     925,411        63,023        988,434   
  

 

 

   

 

 

   

 

 

 

Proved Developed Reserves:

      

September 30, 2011

     350,458        63,965        414,423   

September 30, 2012

     544,560        59,923        604,483   
     Oil Mbbl  
     U.S.  
     Appalachian
Region
    West Coast
Region
    Total
Company
 

Proved Developed and Undeveloped Reserves:

      

September 30, 2011

     279        43,066        43,345   

Extensions and Discoveries

     28        1,229        1,257   

Revisions of Previous Estimates

     35        1,095        1,130   

Production

     (36     (2,834     (2,870
  

 

 

   

 

 

   

 

 

 

September 30, 2012

     306        42,556        42,862   
  

 

 

   

 

 

   

 

 

 

Proved Developed Reserves:

      

September 30, 2011

     274        37,306        37,580   

September 30, 2012

     306        38,138        38,444   

 

Page 23


NATIONAL FUEL GAS COMPANY

AND SUBSIDIARIES

Pipeline & Storage Throughput - (millions of cubic feet - MMcf)

 

     Three Months Ended
September 30,
         Twelve Months Ended
September 30,
 
     2012      2011      Increase
(Decrease)
         2012      2011      Increase
(Decrease)
 

Firm Transportation - Affiliated

     12,563         11,200         1,363           93,738         107,084         (13,346

Firm Transportation - Non-Affiliated

     75,334         40,172         35,162           275,739         210,833         64,906   

Interruptible Transportation

     151         328         (177        1,662         2,037         (375
  

 

 

    

 

 

    

 

 

      

 

 

    

 

 

    

 

 

 
     88,048         51,700         36,348           371,139         319,954         51,185   
  

 

 

    

 

 

    

 

 

      

 

 

    

 

 

    

 

 

 

Utility Throughput - (MMcf)

 

     Three Months Ended
September 30,
         Twelve Months Ended
September 30,
 
     2012      2011      Increase
(Decrease)
         2012      2011      Increase
(Decrease)
 

Retail Sales:

                   

Residential Sales

     3,560         3,392         168           47,036         57,466         (10,430

Commercial Sales

     573         473         100           6,682         8,517         (1,835

Industrial Sales

     381         105         276           837         723         114   
  

 

 

    

 

 

    

 

 

      

 

 

    

 

 

    

 

 

 
     4,514         3,970         544           54,555         66,706         (12,151

Off-System Sales

             963         (963        9,544         7,151         2,393   

Transportation

     9,364         8,356         1,008           61,027         66,273         (5,246
  

 

 

    

 

 

    

 

 

      

 

 

    

 

 

    

 

 

 
     13,878         13,289         589           125,126         140,130         (15,004
  

 

 

    

 

 

    

 

 

      

 

 

    

 

 

    

 

 

 

Energy Marketing Volumes

 

     Three Months Ended
September 30,
          Twelve Months Ended
September 30,
 
     2012      2011      Increase
(Decrease)
          2012      2011      Increase
(Decrease)
 

Natural Gas (MMcf)

       6,899           7,030           (131)              45,756           52,893           (7,137)   
  

 

 

    

 

 

    

 

 

       

 

 

    

 

 

    

 

 

 

 

Page 24


NATIONAL FUEL GAS COMPANY

AND SUBSIDIARIES

FISCAL 2013 EARNINGS GUIDANCE AND SENSITIVITY

 

Fiscal 2013 (Diluted earnings per share guidance*)

    Earnings per share sensitivity to changes
from prices used in guidance* ^
 
          $0.50 change per MMBtu gas     $5 change per Bbl oil  
    Earnings Range     Increase     Decrease     Increase     Decrease  
Consolidated Earnings     $2.65 - $2.95        + $0.13        -$0.13        + $0.04        -$0.04   

 

* Please refer to forward looking statement footnote beginning at page 8 of this document.
^ This sensitivity table is current as of November 1, 2012 and only considers revenue from the Exploration and Production segment’s crude oil and natural gas sales. This revenue is based upon pricing used in the Company’s earnings forecast. For its fiscal 2013 earnings forecast, the Company is utilizing flat NYMEX equivalent commodity pricing, exclusive of basis differential, of $3.50 per MMBtu for natural gas and $85 per Bbl for crude oil. The sensitivities will become obsolete with the passage of time, changes in Seneca’s production forecast, changes in basis differential, as additional hedging contracts are entered into, and with the settling of hedge contracts at their maturity.

 

Page 25


NATIONAL FUEL GAS COMPANY

AND SUBSIDIARIES

 

Quarter Ended September 30 (unaudited)

   2012      2011  

Operating Revenues

   $ 313,261,000       $ 286,034,000   
  

 

 

    

 

 

 

Net Income Available for Common Stock

   $ 48,802,000       $ 37,356,000   
  

 

 

    

 

 

 

Earnings Per Common Share:

     

Basic

   $ 0.59       $ 0.45   
  

 

 

    

 

 

 

Diluted

   $ 0.58       $ 0.45   
  

 

 

    

 

 

 

Weighted Average Common Shares:

     

Used in Basic Calculation

     83,305,793         82,743,764   
  

 

 

    

 

 

 

Used in Diluted Calculation

     83,855,991         83,715,222   
  

 

 

    

 

 

 

Twelve Months Ended September 30 (unaudited)

             

Operating Revenues

   $ 1,626,853,000       $ 1,778,842,000   
  

 

 

    

 

 

 

Net Income Available for Common Stock

   $ 220,077,000       $ 258,402,000   
  

 

 

    

 

 

 

Earnings Per Common Share:

     

Basic

   $ 2.65       $ 3.13   
  

 

 

    

 

 

 

Diluted

   $ 2.63       $ 3.09   
  

 

 

    

 

 

 

Weighted Average Common Shares:

     

Used in Basic Calculation

     83,127,844         82,514,015   
  

 

 

    

 

 

 

Used in Diluted Calculation

     83,739,771         83,670,802   
  

 

 

    

 

 

 

 

Page 26