Equitable Gas Company Reports Third Quarter 2009 Earnings

PITTSBURGH, Oct. 30 /PRNewswire/ -- Equitable Gas Company, LLC and Equitable HomeWorks, LLC today announced third quarter 2009 operating income of $3.2 million compared to a $1.8 million operating loss for the third quarter of 2008.

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During the third quarter 2009, Equitable Gas Company earned top industry performance rankings in Pennsylvania in customer service and introduced a new corporate logo.

Net operating revenues were $25.3 million for the third quarter of 2009, compared to $22.4 million for the third quarter of 2008. The $2.9 million increase in net operating revenues was primarily a result of higher rates approved by the Pennsylvania Public Utility Commission (PUC) in February 2009. Operating expenses totaled $22.1 million for the third quarter of 2009, compared to $24.2 million for the third quarter of 2008.

In September, Equitable Gas Company announced its results from the PUC's annual Customer Service Performance Report released in August. The results indicated continued improvement and top gas industry performance in Pennsylvania for Equitable Gas in numerous customer service categories.

Also in September, Equitable Gas unveiled a new company logo and a new tagline - reliable by nature - conveying the company's commitment to providing its customers safe and dependable natural gas energy and high-quality service.

Most recently, on October 1, 2009, Equitable Gas Company announced a reduction in gas cost recovery rates for residential and some commercial customers in Pennsylvania. This fall, Pennsylvania Equitable Gas customers will pay a gas cost recovery rate that is 41% less in the fourth quarter of 2009 than it was in the fourth quarter of 2008. An average customer using 7.5 Mcf (thousand cubic feet) per month will see a $36 per month reduction in their Equitable Gas bills this fall compared to last fall.

Equitable Gas Company is a provider of safe and dependable natural gas service to more than 270,000 residential, commercial and industrial customers located mainly in the city of Pittsburgh and Allegheny County. Its customer base also includes more than 200 municipalities in nine other counties in western Pennsylvania, 14 counties in central and northern West Virginia, and nine counties in eastern Kentucky. Additional information about Equitable Gas can be obtained through its Web site, www.equitablegas.com.

Equitable HomeWorks is a retail business which offers residential customers a variety of protection programs including gas and water service line protection.

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                                     DISTRIBUTION
                           OPERATIONAL AND FINANCIAL REPORT

                                         Three Months Ended  Nine Months Ended
                                              September 30,     September 30,
                                              2009    2008      2009     2008
                                              ----    ----      ----     ----

          OPERATIONAL DATA

    Heating degree days
    (30 year average: Qtr - 124; YTD - 3,759)   81      41     3,521    3,502

    Residential sales and
     transportation volume (MMcf)            1,282   1,278    15,915   15,988
    Commercial and industrial volume (MMcf)  5,178   3,992    21,813   20,827
                                             -----   -----    ------   ------
      Total throughput (MMcf) -
       Distribution                          6,460   5,270    37,728   36,815

    Net operating revenues (thousands):
      Residential                          $14,044 $12,090   $77,039  $71,716
      Commercial & industrial                6,353   5,884    34,170   33,218
      Off-system and energy services         4,921   4,414    16,854   13,662
                                             -----   -----    ------   ------
        Total net operating revenues       $25,318 $22,388  $128,063 $118,596

    Capital expenditures (thousands)        $9,844 $12,179   $25,337  $32,162

          FINANCIAL DATA (Thousands)

    Total operating revenues               $54,599 $88,789  $425,865 $459,482
    Purchased gas costs                     29,281  66,401   297,802  340,886
                                            ------  ------   -------  -------
      Net operating revenues                25,318  22,388   128,063  118,596

    Operating expenses:
      Operating and maintenance             10,158  11,075    30,588   32,393
      Selling, general and administrative    6,405   7,878    24,591   32,581
      Depreciation and amortization          5,525   5,207    16,449   15,415
                                             -----   -----    ------   ------
        Total operating expenses            22,088  24,160    71,628   80,389
                                            ------  ------    ------   ------

    Operating income (loss)                 $3,230 $(1,772)  $56,435  $38,207

SOURCE Equitable Gas Company, LLC