Gas Natural Inc. Reports 2011 Second Quarter Results and Monthly Dividend of $0.045 per Share
- Consolidated net income was $360,000 in the second quarter and $4.6 million in the first half of 2011
- Natural Gas Operations segment net income grew 45.2% and 16.1% in the second quarter and year-to-date 2011 period, respectively
- Board of Directors declared a monthly dividend of $0.045 per share to shareholders of record as of August 15, 2011. The dividend will be payable on August 31, 2011.
GREAT FALLS, Mont., Aug. 12, 2011 /PRNewswire/ -- Gas Natural Inc. (NYSE Amex: EGAS) (the "Company" or "Gas Natural"), a natural gas utility company serving approximately 63,500 customers in six states, reported financial results for the second quarter ended June 30, 2011.
Consolidated net income for the second quarter was $360,000, or $0.04 per diluted share, compared with net income of $466,000, or $0.08 per diluted share, for the second quarter of 2010. An increase in the Natural Gas Operations segment was offset by the decline in the Marketing and Production Operations segment, as well as increased costs from the Corporate and Other segment. The lower earnings per share also reflect a 2.1 million increase in weighted average outstanding shares as a result of the Company's successful equity raised in the fourth quarter of 2010.
For the six months ended June 30, 2011, consolidated net income increased $500,000, or 12.2%, to $4.6 million compared with $4.1 million during the same period in 2010. The increase in net income was primarily due to continued customer growth and was augmented by colder weather. On a per diluted share basis, net income was $0.57 for the first half of 2011 compared with $0.68 in the corresponding period of 2010, a reflection of the previously noted equity raise.
Richard M. Osborne, Gas Natural's chairman and chief executive officer, commented, "We are encouraged with our performance, particularly our continued growth in our customer base. The year-to-date growth we are experiencing in Maine and the improved performance in Ohio demonstrates our ability to successfully execute our strategy and leverage opportunities, which add to our bottom line."
On April 8, 2011, the Company completed the acquisition of dormant refined products pipeline assets from Marathon Petroleum Company LP for a cash purchase price of $3.3 million. The purchase included more than 140 miles of pipeline in Ohio and more than 60 miles of right-of-way in Kentucky. Mr. Osborne noted, "We plan to convert the Ohio pipelines to transport natural gas to new markets where natural gas is currently unavailable, as well as to connect to markets currently served by our utilities in Ohio."
Subsequent to the end of the second quarter, on August 1, 2011 the Company purchased the assets of Independence Oil & LP Gas, Inc. for $1.6 million. Independence Oil delivered heating oil, liquid propane, and kerosene to approximately 4,500 customers in North Carolina and Virginia. The Company plans to continue service to the current customers in addition to expanding to other customers in each of the regions.
Natural Gas Operations Segment
Gas Natural Inc. annually distributes over 30 billion cubic feet of natural gas to approximately 63,500 customers through regulated utilities operating in Montana, Wyoming, Ohio, Pennsylvania, Maine and North Carolina. The Company acquired its Ohio and Pennsylvania operations in January 2010 and its Cut Bank, Montana utility in 2009.
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||
($ in thousands) | 2011 | 2010 | 2011 | 2010 | |||||
Natural Gas Operations | |||||||||
Operating revenues | $ 17,095 | $ 14,682 | $ 55,315 | $ 46,188 | |||||
Gas Purchased | 9,576 | 7,920 | 34,293 | 27,540 | |||||
Gross Margin | 7,519 | 6,762 | 21,022 | 18,648 | |||||
Operating expenses | 6,617 | 6,129 | 13,233 | 12,087 | |||||
Operating income | 902 | 633 | 7,789 | 6,561 | |||||
Other income | 132 | 303 | 328 | 476 | |||||
Income before interest and taxes | 1,034 | 936 | 8,117 | 7,037 | |||||
Interest (expense) | (467) | (509) | (854) | (1,078) | |||||
Income before income taxes | 567 | 427 | 7,263 | 5,959 | |||||
Income tax (expense) | (207) | (179) | (2,644) | (1,980) | |||||
Net Income | $ 360 | $ 248 | $ 4,619 | $ 3,979 | |||||
Net income from the Natural Gas Operations segment increased $112,000, or 45.1%, to $360,000 in the 2011 second quarter from $248,000 in the prior year period. The increase was primarily due to customer growth and colder weather in most of the Company's service territories. For the six months ended June 30, 2011, the Natural Gas Operations segment contributed net income of $4.6 million compared with $4.0 million for the first half of 2010.
Operating income was $902,000, or 12.0% of gross margin, compared with $633,000, or 9.4% of gross margin, in the second quarter of 2010. Operating income as a percent of gross margin expanded 1.9% to 37.1% in the first six months of 2011 compared with 35.2% in the same period in 2010.
Other income in the second quarter and first half of 2011 were down from the corresponding periods of 2010 primarily to decreased revenue from service sales in the Montana and Ohio markets.
Interest expense during the second quarter and first half of 2011 decreased 8.3% and 20.8%, respectively, due to lower debt levels at the Ohio operations, as some outstanding debt was repaid in November 2010, offset by the financing obtained in May 2011.
Income tax expense increased by $28,000 to $234,000 in the second quarter of 2011 and increased by $664,000 for the first half of 2011. The first half of 2010 included an income tax benefit of $180,000 due to a change in the effective state tax rate for 2010 related to the acquisition of the Ohio Companies, with the remainder of the increase resulting from the increase in pre-tax income in 2011 compared to 2010.
Total volumes delivered increased 151 MMcf to 6,534 MMcf in the second quarter of 2011 and were up 1,509 MMcf to 17,169 MMcf through the first half of 2011. Customer growth in all locations and a new transportation agreement with one customer in Ohio drove the increase in both periods.
Marketing and Production Operations Segment
The Marketing and Production segment had net income of $24,000 in the second quarter of 2011 compared with net income of $113,000 for the second quarter of 2010 due to the widening of the unfavorable differential between the AECO and CIG Rockies natural gas indexes and lower production from the Company's natural gas wells. For the six months ended June 30, 2011, net income for the segment increased 221% to $109,000 from $34,000. Lower sales and production volumes in 2011 were offset by an expense of $440,000 included in the six months ended June 30, 2010 as a result of the conclusion of litigation relating to a gas supply contract.
Pipeline Operations Segment
The Pipeline Operations segment contributed net income of $28,000 and $65,000 in the second quarter and first six months of 2011, respectively, compared with net income of $24,000 and $61,000 in the second quarter and first half of 2010, respectively.
Balance Sheet and Cash Management
Cash and cash equivalents at June 30, 2011, were $13.1 million, up $106,000 from the end of 2010. The cash balances include the remainder of proceeds from an underwritten public offering completed in 2010 that raised net proceeds of approximately $19.0 million after deducting underwriting discounts, commissions, and offering expenses.
Cash provided by operating activities was $15.5 million in the first six months of 2011 compared with $9.7 million in the same period of the prior year. The increase in cash from operations was principally due to improved working capital and timing differences related to taxes and prepayments.
Capital expenditures for the first half of 2011 and 2010 were $10.3 million and $2.2 million, respectively, and were focused on expanding the Company's utility operations. $3.3 million of the 2011 expenditures related to the pipeline asset acquisition from Marathon Petroleum Company LP in April 2011.
The Company maintains a $20.0 million credit facility with $11.8 million in use at the end of the second quarter of 2011.
On May 2, 2011, Gas Natural and its Ohio subsidiaries, Northeast Ohio Natural Gas Corp, Orwell Natural Gas Company and Brainard Gas Corp. issued a $15.334 million 5.38% Senior Secured Guaranteed Fixed Rate Note due June 1, 2017. Additionally, Great Plains Natural Gas, the intermediate holding company for Northeast Ohio Natural Gas, issued a $3.0 million Senior Secured Guaranteed Floating Rate Note due May 3, 2014. Both notes were placed with SunLife Assurance Company of Canada. The use of proceeds for both notes extinguished existing amortizing bank debt and other existing indebtedness, funded $3.4 million for the 2011 capital program for Orwell Natural Gas and Northeast Ohio Natural Gas, established two debt service reserve accounts, replenished the Company's treasuries for the previously announced repayment of maturing bank debt in late 2010, and transaction expenses. The capital program funds and debt service reserve accounts are in interest bearing accounts.
About Gas Natural Inc.
Gas Natural Inc. distributes and sells natural gas to end-use residential, commercial, and industrial customers. It distributes approximately 30 billion cubic feet of natural gas to approximately 63,500 customers through regulated utilities operating in Montana, Wyoming, Ohio, Pennsylvania, Maine and North Carolina. The Company markets approximately 1.3 billion cubic feet of natural gas to commercial and industrial customers in Montana and Wyoming on an unregulated basis. The Company also has ownership interests in 160 natural gas producing wells and gas gathering assets. In addition, the Company owns the Shoshone interstate and the Glacier gathering pipelines located in Montana and Wyoming. The Company's Montana public utility was originally incorporated in 1909 and is headquartered in Great Falls, Montana.
The Company's toll-free number is 800-570-5688. The Company's address is 1 First Avenue South, Great Falls, Montana 59401 and its website is www.ewst.com.
Safe Harbor Regarding Forward-Looking Statements
The Company is including the following cautionary statement in this release to make applicable and to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 for any forward-looking statements made by, or on behalf of, Gas Natural Inc. Forward-looking statements are all statements other than statements of historical fact, including, without limitation, those that are identified by the use of the words "anticipates," "estimates," "expects," "intends," "plans," "predicts," "believes" and similar expressions. Such statements are inherently subject to a variety of risks and uncertainties that could cause actual results to differ materially from those expressed. Factors that may affect forward-looking statements and the Company's business generally include but are not limited to the Company's ability to successfully integrate the operations of the companies it has recently acquired and consummate additional acquisitions, the Company's continued ability to make dividend payments, the Company's ability to implement its business plan, fluctuating energy commodity prices, the possibility that regulators may not permit the Company to pass through all of its increased costs to its customers, changes in the utility regulatory environment, wholesale and retail competition, the Company's ability to satisfy its debt obligations, including compliance with financial covenants, weather conditions, litigation risks, and various other matters, many of which are beyond the Company's control, the risk factors and cautionary statements made in the Company's public filings with the Securities and Exchange Commission, and other factors that the Company is currently unable to identify or quantify, but may exist in the future. Gas Natural Inc. expressly undertakes no obligation to update or revise any forward-looking statement contained herein to reflect any change in Gas Natural Inc.'s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
For more information contact: | ||
Bronwyn ("BG") Davis | Kevin J. Degenstein | |
Phone: (440) 974-3770 | Phone: (406) 791-7500 | |
Email: [email protected] | Email: [email protected] | |
FINANCIAL TABLES FOLLOW
Gas Natural Inc. and Subsidiaries | ||||||||
Condensed Consolidated Statements of Income (Unaudited) | ||||||||
Three Months Ended | Six Months Ended | |||||||
June 30, | June 30, | |||||||
2011 | 2010 | 2011 | 2010 | |||||
REVENUES | ||||||||
Natural gas operations | $ 17,095,262 | $ 14,682,109 | $ 55,314,845 | $ 46,188,269 | ||||
Marketing and production | 1,475,665 | 1,868,009 | 3,301,167 | 4,986,332 | ||||
Pipeline operations | 102,061 | 106,355 | 208,385 | 214,957 | ||||
Total revenues | 18,672,988 | 16,656,473 | 58,824,397 | 51,389,558 | ||||
COST OF SALES | ||||||||
Gas purchased | 9,575,592 | 7,919,762 | 34,292,500 | 27,540,576 | ||||
Marketing and production | 1,208,379 | 1,462,808 | 2,607,786 | 4,054,219 | ||||
Total cost of sales | 10,783,971 | 9,382,570 | 36,900,286 | 31,594,795 | ||||
GROSS MARGIN | 7,889,017 | 7,273,903 | 21,924,111 | 19,794,763 | ||||
OPERATING EXPENSES | ||||||||
Distribution, general, and administrative | 4,629,976 | 4,363,496 | 9,287,296 | 8,268,405 | ||||
Maintenance | 271,965 | 245,153 | 557,192 | 536,482 | ||||
Depreciation and amortization | 1,068,470 | 1,015,817 | 2,103,547 | 1,965,279 | ||||
Accretion | 34,803 | 29,745 | 69,413 | 58,845 | ||||
Taxes other than income | 892,981 | 752,952 | 1,746,946 | 1,759,235 | ||||
Total operating expenses | 6,898,195 | 6,407,163 | 13,764,394 | 12,588,246 | ||||
OPERATING INCOME | 990,822 | 866,740 | 8,159,717 | 7,206,517 | ||||
LOSS FROM UNCONSOLIDATED AFFILIATE | (20,194) | (12,108) | (83,151) | (32,122) | ||||
OTHER INCOME, net | 116,108 | 360,336 | 231,788 | 128,935 | ||||
INTEREST EXPENSE | (492,674) | (528,972) | (905,853) | (1,121,756) | ||||
INCOME FROM OPERATIONS BEFORE | ||||||||
INCOME TAXES | 594,062 | 685,996 | 7,402,501 | 6,181,574 | ||||
INCOME TAX EXPENSE | (233,724) | (220,214) | (2,767,409) | (2,052,850) | ||||
NET INCOME | $ 360,338 | $ 465,782 | $ 4,635,092 | $ 4,128,724 | ||||
EARNINGS PER SHARE - BASIC | $ 0.04 | $ 0.08 | $ 0.57 | $ 0.68 | ||||
EARNINGS PER SHARE - DILUTED | $ 0.04 | $ 0.08 | $ 0.57 | $ 0.68 | ||||
WEIGHTED AVERAGE DIVIDENDS DECLARED | ||||||||
PER COMMON SHARE | $ 0.135 | $ 0.135 | $ 0.270 | $ 0.270 | ||||
WEIGHTED AVERAGE SHARES | ||||||||
OUTSTANDING - BASIC | 8,151,359 | 6,071,538 | 8,150,802 | 6,071,538 | ||||
WEIGHTED AVERAGE SHARES | ||||||||
OUTSTANDING - DILUTED | 8,159,825 | 6,080,617 | 8,158,955 | 6,079,527 | ||||
Gas Natural Inc. and Subsidiaries | ||||
Condensed Consolidated Balance Sheets (Unaudited) | ||||
June 30, | December 31, | |||
2011 | 2010 | |||
ASSETS | ||||
CURRENT ASSETS | ||||
Cash and cash equivalents | $ 13,132,727 | $ 13,026,585 | ||
Marketable securities | 306,238 | 274,950 | ||
Accounts receivable | ||||
Trade, less allowance for doubtful accounts of $282,350 | ||||
and $354,719, respectively | 4,539,514 | 9,593,840 | ||
Related parties | 485,132 | 559,384 | ||
Unbilled gas | 1,322,371 | 5,724,346 | ||
Note receivable - related parties, current portion | 9,905 | 9,565 | ||
Inventory | ||||
Natural gas and propane | 3,834,779 | 5,876,710 | ||
Materials and supplies | 2,309,597 | 1,414,367 | ||
Prepaid income taxes | 1,646,751 | 1,601,798 | ||
Prepayments and other | 399,729 | 912,959 | ||
Recoverable cost of gas purchases | 2,264,070 | 2,628,824 | ||
Deferred tax asset | 102,695 | 114,362 | ||
Total current assets | 30,353,508 | 41,737,690 | ||
PROPERTY, PLANT AND EQUIPMENT, net | 84,465,865 | 76,134,401 | ||
OTHER ASSETS | ||||
Notes receivable - related parties, less current portion | 40,626 | 45,665 | ||
Deferred tax assets, less current portion | - | 1,804,264 | ||
Regulatory assets | ||||
Property taxes | 731,830 | 873,197 | ||
Income taxes | 452,645 | 452,645 | ||
Rate case costs | 126,759 | 64,271 | ||
Debt issuance costs | 900,067 | 485,244 | ||
Goodwill | 14,607,952 | 14,607,952 | ||
Customer relationships | 650,750 | 662,167 | ||
Investment in unconsolidated affiliate | 860,665 | 644,358 | ||
Restricted cash | 4,351,914 | - | ||
Other assets | 213,043 | 216,082 | ||
Total other assets | 22,936,251 | 19,855,845 | ||
TOTAL ASSETS | $ 137,755,624 | $ 137,727,936 | ||
Gas Natural Inc. and Subsidiaries | ||||
Condensed Consolidated Balance Sheets (Unaudited) | ||||
June 30, | December 31, | |||
2011 | 2010 | |||
LIABILITIES AND CAPITALIZATION | ||||
CURRENT LIABILITIES | ||||
Checks in excess of amounts on deposit | $ 366,259 | $ 532,145 | ||
Line of credit | 11,840,000 | 18,149,999 | ||
Accounts payable | ||||
Trade | 5,529,372 | 9,200,297 | ||
Related parties | 187,987 | 417,543 | ||
Notes payable, current portion | - | 910,917 | ||
Notes payable - related parties, current portion | - | 49,361 | ||
Accrued liabilities | ||||
Taxes other than income | 2,429,805 | 2,961,853 | ||
Vacation | 167,518 | 86,194 | ||
Employee benefit plans | 216,620 | 103,257 | ||
Interest | 91,156 | 29,810 | ||
Deferred payments received from levelized billing | 1,307,894 | 2,916,408 | ||
Customer deposits | 678,143 | 679,237 | ||
Property tax settlement, current portion | 242,120 | 242,120 | ||
Related parties | 13,894 | 413,399 | ||
Other current liabilities | 283,304 | 1,020,733 | ||
Overrecovered gas purchases | 2,865,388 | 1,203,191 | ||
Total current liabilities | 26,219,460 | 38,916,464 | ||
LONG-TERM LIABILITIES | ||||
Deferred investment tax credits | 186,910 | 197,441 | ||
Deferred tax liability | 916,795 | - | ||
Asset retirement obligation | 1,616,280 | 1,546,867 | ||
Customer advances for construction | 895,456 | 949,434 | ||
Regulatory liability for income taxes | 83,161 | 83,161 | ||
Regulatory liability for gas costs | 70,199 | 131,443 | ||
Property tax settlement, less current portion | 243,008 | 243,008 | ||
Total long-term liabilities | 4,011,809 | 3,151,354 | ||
NOTES PAYABLE, less current portion | 31,334,000 | 21,958,616 | ||
COMMITMENTS AND CONTINGENCIES (see Note 11) | ||||
STOCKHOLDERS' EQUITY | ||||
Preferred stock; $0.15 par value, 1,500,000 shares authorized, | ||||
no shares outstanding | - | - | ||
Common stock; $0.15 par value, 15,000,000 shares authorized, | ||||
8,152,051 and 8,149,801 shares outstanding, respectively | 1,222,808 | 1,222,470 | ||
Capital in excess of par value | 41,944,672 | 41,910,067 | ||
Accumulated other comprehensive income | 66,211 | 46,590 | ||
Retained earnings | 32,956,664 | 30,522,375 | ||
Total stockholders' equity | 76,190,355 | 73,701,502 | ||
TOTAL CAPITALIZATION | 107,524,355 | 95,660,118 | ||
TOTAL LIABILITIES AND CAPITALIZATION | $ 137,755,624 | $ 137,727,936 | ||
Gas Natural Inc. and Subsidiaries | ||||
Condensed Consolidated Statements of Cash Flows (Unaudited) | ||||
Six Months Ended | ||||
2011 | 2010 | |||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net income | $ 4,635,092 | $ 4,128,724 | ||
Adjustments to reconcile net income to net cash provided | ||||
by operating activities | ||||
Depreciation and amortization | 2,103,547 | 1,965,279 | ||
Accretion | 69,413 | 58,845 | ||
Amortization of debt issuance costs | 68,667 | 63,396 | ||
Stock based compensation | 34,943 | 45,662 | ||
Gain on sale of marketable securities | - | (109,144) | ||
Loss on sale of assets | 39,685 | - | ||
Loss from unconsolidated affiliate | 83,151 | 32,122 | ||
Investment tax credit | (10,531) | (10,531) | ||
Deferred income taxes | 2,721,060 | 492,520 | ||
Changes in assets and liabilities | ||||
Accounts receivable, including related parties | 5,128,578 | 9,244,965 | ||
Unbilled gas | 4,401,975 | 1,686,956 | ||
Natural gas and propane inventory | 2,041,931 | 1,893,096 | ||
Accounts payable, including related parties | (4,397,430) | (3,297,878) | ||
Recoverable/refundable cost of gas purchases | 2,026,951 | (2,030,733) | ||
Prepayments and other | 513,230 | (550,691) | ||
Other assets | (847,241) | (323,130) | ||
Other current liabilities | (3,097,367) | (3,568,424) | ||
Net cash provided by operating activities | 15,515,654 | 9,721,034 | ||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Capital expenditures | (10,279,331) | (2,190,624) | ||
Proceeds from sale of fixed assets | 19,900 | - | ||
Proceeds from sale of marketable securities | - | 2,353,878 | ||
Proceeds from related party note receivable | 4,699 | - | ||
Purchase of Cut Bank shares and Kidron Investment | - | (206,067) | ||
Cash acquired in acquisition | - | 144,203 | ||
Restricted cash | (3,403,078) | - | ||
Investment in unconsolidated affiliate | (303,600) | (52,500) | ||
Customer advances for construction | 72,082 | 34,196 | ||
Contributions in aid of construction | 7,735 | 19,837 | ||
Net cash (used in) provided by investing activities | (13,881,593) | 102,923 | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Proceeds from lines of credit | 11,200,000 | 21,850,000 | ||
Repayment on lines of credit | (17,509,999) | (26,552,098) | ||
Proceeds from notes payable | 18,334,000 | - | ||
Repayments of notes payable | (9,869,533) | (996,796) | ||
Repayments of related party notes payable | (49,361) | - | ||
Debt issuance costs | (483,488) | - | ||
Restricted cash | (948,836) | - | ||
Dividends paid | (2,200,702) | (1,639,066) | ||
Net cash used in financing activities | (1,527,919) | (7,337,960) | ||
NET INCREASE IN CASH AND CASH EQUIVALENTS | 106,142 | 2,485,997 | ||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 13,026,585 | 2,752,168 | ||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ 13,132,727 | $ 5,238,165 | ||
Gas Natural Inc. and Subsidiaries | ||||
Condensed Consolidated Statements of Cash Flows (Unaudited) | ||||
Six Months Ended | ||||
2011 | 2010 | |||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||||
Cash paid for interest | $ 822,174 | $ 1,003,733 | ||
Cash paid for income taxes | 91,303 | 180,000 | ||
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND | ||||
FINANCING ACTIVITIES | ||||
Shares issued to purchase Ohio Companies | - | 17,073,084 | ||
Capital expenditures included in accounts payable | 496,384 | 181,430 | ||
Capitalized interest | 3,444 | 2,997 | ||
Accrued dividends | 366,842 | 273,265 | ||
Gas Natural Inc. and Subsidiaries Segments of Operations (Unaudited) Three Months Ended June 30, 2011 | |||||||||||||
Marketing | |||||||||||||
Natural Gas | and | Pipeline | Corporate and | ||||||||||
Operations | Production | Operations | Other | Eliminations | Consolidated | ||||||||
OPERATING REVENUES | |||||||||||||
Natural gas operations | $ 17,176,027 | $ - | $ - | $ 816,049 | $ (896,814) | $ 17,095,262 | |||||||
Marketing and production | - | 3,209,966 | - | - | (1,734,301) | 1,475,665 | |||||||
Pipeline operations | - | - | 102,061 | - | - | 102,061 | |||||||
Total operating revenue | 17,176,027 | 3,209,966 | 102,061 | 816,049 | (2,631,115) | 18,672,988 | |||||||
COST OF SALES | |||||||||||||
Gas purchased | 9,656,357 | - | - | 816,049 | (896,814) | 9,575,592 | |||||||
Marketing and production | - | 2,942,680 | - | - | (1,734,301) | 1,208,379 | |||||||
Total cost of sales | 9,656,357 | 2,942,680 | - | 816,049 | (2,631,115) | 10,783,971 | |||||||
GROSS MARGIN | $ 7,519,670 | $ 267,286 | $ 102,061 | $ - | $ - | $ 7,889,017 | |||||||
OPERATING INCOME (LOSS) | $ 902,183 | $ 79,627 | $ 48,396 | $ (39,384) | $ - | $ 990,822 | |||||||
NET INCOME (LOSS) | $ 359,742 | $ 23,625 | $ 27,752 | $ (50,781) | $ - | $ 360,338 | |||||||
Three Months Ended June 30, 2010 | |||||||||||||
Marketing | |||||||||||||
Natural Gas | and | Pipeline | Corporate and | ||||||||||
Operations | Production | Operations | Other | Eliminations | Consolidated | ||||||||
OPERATING REVENUE | |||||||||||||
Natural gas operations | $ 14,760,696 | $ - | $ - | $ - | $ (78,587) | $ 14,682,109 | |||||||
Marketing and production | - | 3,704,869 | - | - | (1,836,860) | 1,868,009 | |||||||
Pipeline operations | - | - | 106,355 | - | - | 106,355 | |||||||
Total operating revenue | 14,760,696 | 3,704,869 | 106,355 | - | (1,915,447) | 16,656,473 | |||||||
COST OF SALES | |||||||||||||
Gas purchased | 7,998,349 | - | - | - | (78,587) | 7,919,762 | |||||||
Marketing and production | - | 3,299,668 | - | - | (1,836,860) | 1,462,808 | |||||||
Total cost of sales | 7,998,349 | 3,299,668 | - | - | (1,915,447) | 9,382,570 | |||||||
GROSS MARGIN | $ 6,762,347 | $ 405,201 | $ 106,355 | $ - | $ - | $ 7,273,903 | |||||||
OPERATING INCOME (LOSS) | $ 632,599 | $ 207,305 | $ 35,679 | $ (8,843) | $ - | $ 866,740 | |||||||
NET INCOME | $ 247,979 | $ 113,145 | $ 24,485 | $ 80,173 | $ - | $ 465,782 | |||||||
Gas Natural Inc. and Subsidiaries Segments of Operations (unaudited) Six Months Ended June 30, 2011 | |||||||||||||
Marketing | |||||||||||||
Natural Gas | and | Pipeline | Corporate and | ||||||||||
Operations | Production | Operations | Other | Eliminations | Consolidated | ||||||||
OPERATING REVENUES | |||||||||||||
Natural gas operations | $ 55,485,920 | $ - | $ - | $ 816,049 | $ (987,124) | $ 55,314,845 | |||||||
Marketing and production | - | 7,550,218 | - | - | (4,249,051) | 3,301,167 | |||||||
Pipeline operations | - | - | 208,385 | - | - | 208,385 | |||||||
Total operating revenue | 55,485,920 | 7,550,218 | 208,385 | 816,049 | (5,236,175) | 58,824,397 | |||||||
COST OF SALES | |||||||||||||
Gas purchased | 34,463,575 | - | - | 816,049 | (987,124) | 34,292,500 | |||||||
Marketing and production | - | 6,856,837 | - | - | (4,249,051) | 2,607,786 | |||||||
Total cost of sales | 34,463,575 | 6,856,837 | - | 816,049 | (5,236,175) | 36,900,286 | |||||||
GROSS MARGIN | $ 21,022,345 | $ 693,381 | $ 208,385 | $ - | $ - | $ 21,924,111 | |||||||
OPERATING INCOME (LOSS) | $ 7,789,050 | $ 306,225 | $ 112,396 | $ (47,954) | $ - | $ 8,159,717 | |||||||
NET INCOME (LOSS) | $ 4,618,867 | $ 109,407 | $ 64,554 | $ (157,736) | $ - | $ 4,635,092 | |||||||
Total assets | 118,582,518 | 3,929,493 | 636,991 | 71,829,841 | (57,223,219) | 137,755,624 | |||||||
Goodwill | 14,607,952 | - | - | - | - | 14,607,952 | |||||||
Six Months Ended June 30, 2010 | |||||||||||||
Marketing | |||||||||||||
Natural Gas | and | Pipeline | Corporate and | ||||||||||
Operations | Production | Operations | Other | Eliminations | Consolidated | ||||||||
OPERATING REVENUES | |||||||||||||
Natural gas operations | $ 46,345,465 | $ - | $ - | $ - | $ (157,196) | $ 46,188,269 | |||||||
Marketing and production | - | 9,188,180 | - | - | (4,201,848) | 4,986,332 | |||||||
Pipeline operations | - | - | 214,957 | - | - | 214,957 | |||||||
Total operating revenue | 46,345,465 | 9,188,180 | 214,957 | - | (4,359,044) | 51,389,558 | |||||||
COST OF SALES | |||||||||||||
Gas purchased | 27,697,772 | - | - | - | (157,196) | 27,540,576 | |||||||
Marketing and production | - | 8,256,067 | - | - | (4,201,848) | 4,054,219 | |||||||
Total cost of sales | 27,697,772 | 8,256,067 | - | - | (4,359,044) | 31,594,795 | |||||||
GROSS MARGIN | $ 18,647,693 | $ 932,113 | $ 214,957 | $ - | $ - | $ 19,794,763 | |||||||
OPERATING INCOME (LOSS) | $ 6,561,089 | $ 557,461 | $ 99,331 | $ (11,364) | $ - | $ 7,206,517 | |||||||
NET INCOME | $ 3,979,274 | $ 34,195 | $ 60,720 | $ 54,535 | $ - | $ 4,128,724 | |||||||
Total assets | 106,298,682 | 4,737,608 | 755,112 | 58,037,889 | (51,845,781) | 117,983,510 | |||||||
Goodwill | 13,813,626 | - | - | - | - | 13,813,626 | |||||||
Gas Natural Inc. and Subsidiaries Natural Gas Operations | |||||||||||
Utility Throughput | |||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
(in million cubic feet (MMcf)) | 2011 | 2010 | 2011 | 2010 | |||||||
Full Service Distribution | |||||||||||
Residential | 737 | 654 | 2,899 | 2,492 | |||||||
Commercial | 882 | 667 | 2,829 | 2,267 | |||||||
Industrial | 44 | 37 | 84 | 82 | |||||||
Total full service | 1,663 | 1,358 | 5,812 | 4,841 | |||||||
Transportation | 1,883 | 1,684 | 4,568 | 3,730 | |||||||
Bucksport | 2,988 | 3,341 | 6,789 | 7,089 | |||||||
Total Volumes | 6,534 | 6,383 | 17,169 | 15,660 | |||||||
Degree Days | |||||||||||
Three Months Ended | Percent (Warmer) Colder | ||||||||||
June 30, | 2011 Compared to | ||||||||||
Normal | 2011 | 2010 | Normal | 2010 | |||||||
Great Falls, MT | 1,225 | 1,498 | 1,414 | 22.29% | 5.94% | ||||||
Cody, WY | 1,072 | 1,408 | 1,269 | 31.34% | 10.95% | ||||||
Bangor, ME | 1,072 | 1,052 | 804 | (1.87%) | 30.85% | ||||||
Elkin, NC | 337 | 318 | 163 | (5.64%) | 95.09% | ||||||
Youngstown, OH | 862 | 711 | 503 | (17.52%) | 41.35% | ||||||
SOURCE Gas Natural Inc.
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