Gas Natural Inc. Reports Fiscal Year 2011 Results
- Natural gas operations full-year 2011 earnings up 2.5% to $5.8 million
- Full service distribution volumes delivered increased 11% from 2010
- Cash from operations more than doubles year-over-year to $14.9 million in 2011
MENTOR, Ohio, April 10, 2012 /PRNewswire/ -- Gas Natural Inc. (NYSE Amex: EGAS) (the "Company"), a natural gas utility company serving approximately 70,000 customers in seven states, reported financial results for the full-year ended December 31, 2011. Reported results included the Company's April 8, 2011 acquisition of pipeline and right-of-way assets in Ohio and Kentucky as well as the acquisition of the net assets of Independence Oil & LP Gas, Inc. on August 1, 2011.
Full-year consolidated net income was $5.4 million in 2011 compared with $5.8 million in 2010. Net income from the Natural Gas Operations segment increased by $140,000, driven primarily by customer growth and colder weather in most of its service territories. Also included in the consolidated 2011 results was a pre-tax gain on the bargain purchase of the assets of Independence of $955,000. Offsetting those gains were net losses within the Company's Marketing and Production Operations segment due to an impairment charge of $790,000 from an investment in Kykuit, a developer and operator of oil, gas and mineral leasehold estates in Montana and a net loss from the corporate and other operations segment as the 2010 period included dividends and gains on the sale of marketable securities that did not occur in 2011.
On a per diluted share basis, net income was $0.66 in 2011 compared with $0.92 in 2010, and reflects an increase in weighted average outstanding shares of 1.9 million as a result of the Company's successful equity raised in the fourth quarter of 2010.
Richard M. Osborne, Gas Natural's chairman and chief executive officer, commented, "In 2011, we successfully moved our strategy forward by investing in our growth utilities and making capital improvements in order to maintain our reliable infrastructure. Those investments are reflected in our expanded distribution system and customer base and have resulted in an overall strengthening of our natural gas business.
"We also continued to augment our organic growth strategy with two acquisitions in 2011. We acquired intrastate pipeline assets in Ohio and Kentucky in April and since then, have rehabilitated portions of the pipeline in Ohio to transport natural gas to new markets where natural gas service is currently not available, as well as connect to markets served by our Ohio subsidiaries. The Independence acquisition was a situational opportunity for us and added approximately 4,500 residential, commercial and agricultural customers in North Carolina and Virginia that utilize liquid propane, heating oil, and kerosene."
Gas Natural acquired the stock of Public Gas Company, Inc. (PGC) for $1.6 million from Kentucky Energy Development, LLC, on April 1, 2012. PGC is a regulated natural gas distribution company serving approximately 1,600 customers in 8 counties in the eastern part of Kentucky.
Natural Gas Operations Segment
The Company annually distributes over 32 billion cubic feet of natural gas to approximately 70,000 customers through regulated utilities operating in Montana, Wyoming, Ohio, Pennsylvania, Maine, North Carolina and Kentucky.
| Year Ended December 31, |
|||||||||
| ($ in thousands) |
2011 |
2010 |
|||||||
| Natural Gas Operations |
|||||||||
| Operating revenues |
$ 89,995 |
$ 83,608 |
|||||||
| Gas Purchased |
53,018 |
48,877 |
|||||||
| Gross Margin |
36,977 |
34,731 |
|||||||
| Operating expenses |
26,804 |
24,682 |
|||||||
| Operating income |
10,173 |
10,049 |
|||||||
| Other income |
639 |
872 |
|||||||
| Income before interest and taxes |
10,812 |
10,921 |
|||||||
| Interest (expense) |
(1,926) |
(2,086) |
|||||||
| Income before income taxes |
8,886 |
8,835 |
|||||||
| Income tax (expense) |
(3,072) |
(3,161) |
|||||||
| Net Income |
$ 5,814 |
$ 5,674 |
|||||||
For 2011, the Natural Gas Operations segment contributed net income of $5.8 million, an increase of 2.5%, or $140,000, from $5.7 million for 2010.
Operating income was $10.2 million, or 27.5% of gross margin, for 2011 compared with $10.0 million, or 28.9% of gross margin, for 2010.
Full service distribution volumes delivered increased 931 MMcf to 9,346 MMcf in 2011 as the Company continues to expand its customer base and benefited from colder weather in a number of markets.
Other Operating Segments
The Marketing and Production segment reported a net loss of $287,000 for 2011 compared with a net gain of $116,000 for 2010. This change in net income was primarily attributable to the previously noted impairment charge. The Pipeline Operations segment contributed net income of $162,000, an increase of $9,000 from 2010. The Propane Operations segment, acquired on August 1, 2011, contributed net income of $255,000 in 2011, which was primarily the result of the pre-tax gain of $955,000 on the bargain purchase of the net assets.
Balance Sheet and Cash Management
Cash and cash equivalents at the end of 2011 were $10.5 million, down $2.5 million from the 2010 year-end balance of $13.0 million.
Cash provided by operating activities increased by $8.2 million to $14.9 million in 2011 compared with $6.7 million for 2010. The increase in cash from operations was principally due to improved working capital and timing differences related to taxes and prepayments.
Capital expenditures for 2011 totaled $23.2 million and were primarily focused on expanding the Company's Natural Gas Operations segment and included $3.3 million related to the pipeline assets acquired in Ohio and Kentucky in April 2011. Capital spending in 2010 was $8.5 million.
The Company maintains a revolving credit facility with $23.2 million in use at the end of 2011 compared with $18.2 million at the end of 2010. In November 2011, the Company exercised the $10 million accordion feature on the revolving credit facility to increase the capacity from $20 million to $30 million.
About Gas Natural Inc.
Gas Natural Inc. distributes and sells natural gas to end-use residential, commercial, and industrial customers. It distributes approximately 32 billion cubic feet of natural gas to approximately 70,000 customers through regulated utilities operating in Montana, Wyoming, Ohio, Pennsylvania, Maine, North Carolina and Kentucky. The Company markets approximately 1.2 billion cubic feet of natural gas to commercial and industrial customers in Montana and Wyoming on an unregulated basis. The Company also acquired intrastate pipelines assets in Ohio and Kentucky in April 2011. In August 2011, the Company acquired its propane operations, delivering liquid propane, heating oil, and kerosene to approximately 4,300 customers in North Carolina and Virginia. The Company also has ownership interests in 160 natural gas producing wells and gas gathering assets and 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:
| Gas Natural Inc. |
Investor Relations: Kei Advisors LLC |
| Thomas J. Smith, Chief Financial Officer |
Deborah K. Pawlowski, Chairman & CEO |
| Phone: (440) 974-3770 |
Phone: (716) 843-3908 |
| Email: [email protected] |
Email: [email protected] |
FINANCIAL TABLES FOLLOW
| Gas Natural Inc. and Subsidiaries Consolidated Statements of Income |
||||
| 2011 |
2010 |
|||
| REVENUES |
||||
| Natural gas operations |
$ 89,994,616 |
$ 83,607,356 |
||
| Marketing and production |
5,789,938 |
7,466,057 |
||
| Pipeline operations |
417,768 |
426,644 |
||
| Propane operations |
3,014,971 |
- |
||
| Total revenues |
99,217,293 |
91,500,057 |
||
| COST OF SALES |
||||
| Natural gas purchased |
53,017,926 |
48,876,837 |
||
| Marketing and production |
4,470,504 |
5,829,103 |
||
| Propane purchased |
2,695,187 |
- |
||
| Total cost of sales |
60,183,617 |
54,705,940 |
||
| GROSS MARGIN |
39,033,676 |
36,794,117 |
||
| OPERATING EXPENSES |
||||
| Distribution, general, and administrative |
19,610,054 |
17,338,172 |
||
| Maintenance |
1,122,448 |
1,051,766 |
||
| Depreciation and amortization |
4,464,881 |
4,034,383 |
||
| Accretion |
142,214 |
128,294 |
||
| Taxes other than income |
3,451,860 |
3,162,200 |
||
| Total operating expenses |
28,791,457 |
25,714,815 |
||
| OPERATING INCOME |
10,242,219 |
11,079,302 |
||
| LOSS FROM UNCONSOLIDATED AFFILIATE |
(877,465) |
(193,951) |
||
| OTHER INCOME, net |
224,938 |
578,368 |
||
| GAIN ON BARGAIN PURCHASE |
955,423 |
- |
||
| INTEREST EXPENSE |
(2,033,603) |
(2,178,222) |
||
| INCOME BEFORE INCOME TAXES |
8,511,512 |
9,285,497 |
||
| INCOME TAX EXPENSE |
(3,141,995) |
(3,488,996) |
||
| NET INCOME |
$ 5,369,517 |
$ 5,796,501 |
||
| EARNINGS PER SHARE - BASIC |
$ 0.66 |
$ 0.92 |
||
| EARNINGS PER SHARE - DILUTED |
$ 0.66 |
$ 0.92 |
||
| WEIGHTED AVERAGE DIVIDENDS DECLARED |
||||
| PER COMMON SHARE |
$ 0.540 |
$ 0.560 |
||
| WEIGHTED AVERAGE SHARES |
||||
| OUTSTANDING - BASIC |
8,151,935 |
6,292,717 |
||
| WEIGHTED AVERAGE SHARES |
||||
| OUTSTANDING - DILUTED |
8,159,827 |
6,300,972 |
||
| Gas Natural Inc. and Subsidiaries Consolidated Balance Sheets |
|||
| 2011 |
2010 |
||
| ASSETS |
|||
| CURRENT ASSETS |
|||
| Cash and cash equivalents |
$ 10,504,845 |
$ 13,026,585 |
|
| Marketable securities |
367,875 |
274,950 |
|
| Accounts receivable |
|||
| Trade, less allowance for doubtful accounts of $630,632 |
|||
| and $354,719, respectively |
9,381,625 |
9,593,840 |
|
| Related parties |
519,084 |
559,384 |
|
| Unbilled gas |
4,232,854 |
5,724,346 |
|
| Note receivable - related parties, current portion |
10,256 |
9,565 |
|
| Inventory |
|||
| Natural gas and propane |
6,967,739 |
5,876,710 |
|
| Materials and supplies |
1,958,858 |
1,414,367 |
|
| Prepaid income taxes |
1,584,869 |
1,601,798 |
|
| Prepayments and other |
741,101 |
912,959 |
|
| Recoverable cost of gas purchases |
2,627,416 |
2,628,824 |
|
| Deferred tax asset |
1,061,314 |
114,362 |
|
| Total current assets |
39,957,836 |
41,737,690 |
|
| PROPERTY, PLANT AND EQUIPMENT |
|||
| Gas transmission and distribution facilities |
100,492,234 |
89,094,495 |
|
| Land |
2,600,023 |
1,663,759 |
|
| Buildings and leasehold improvements |
4,966,511 |
4,775,954 |
|
| Transportation equipment |
2,968,405 |
2,104,664 |
|
| Computer equipment |
3,501,492 |
3,408,189 |
|
| Other equipment |
8,302,395 |
5,457,504 |
|
| Construction work-in-progress |
12,003,916 |
3,260,004 |
|
| Producing natural gas properties |
3,911,404 |
3,911,404 |
|
| Property, plant and equipment |
138,746,380 |
113,675,973 |
|
| Less accumulated depreciation, depletion and amortization |
(41,134,123) |
(37,541,572) |
|
| Property, plant and equipment, net |
97,612,257 |
76,134,401 |
|
| OTHER ASSETS |
|||
| Notes receivable - related parties, less current portion |
35,408 |
45,665 |
|
| Deferred tax assets, less current portion |
- |
1,804,264 |
|
| Regulatory assets |
|||
| Property taxes |
590,464 |
873,197 |
|
| Income taxes |
452,645 |
452,645 |
|
| Rate case costs |
205,714 |
64,271 |
|
| Debt issuance costs, net |
869,593 |
485,244 |
|
| Goodwill |
14,607,952 |
14,607,952 |
|
| Customer relationships |
639,333 |
662,167 |
|
| Investment in unconsolidated affiliate |
330,351 |
640,216 |
|
| Restricted cash |
949,907 |
- |
|
| Other assets |
159,954 |
220,224 |
|
| Total other assets |
18,841,321 |
19,855,845 |
|
| TOTAL ASSETS |
$ 156,411,414 |
$ 137,727,936 |
|
| Gas Natural Inc. and Subsidiaries Consolidated Balance Sheets, Continued |
|||
| 2011 |
2010 |
||
| LIABILITIES AND CAPITALIZATION |
|||
| CURRENT LIABILITIES |
|||
| Checks in excess of amounts on deposit |
$ 1,027,376 |
$ 532,145 |
|
| Line of credit |
23,160,000 |
18,149,999 |
|
| Accounts payable |
|||
| Trade |
8,755,623 |
9,200,297 |
|
| Related parties |
191,763 |
417,543 |
|
| Notes payable, current portion |
7,885 |
910,917 |
|
| Notes payable - related parties, current portion |
- |
49,361 |
|
| Accrued liabilities |
|||
| Taxes other than income |
3,018,964 |
2,961,853 |
|
| Vacation |
115,940 |
86,194 |
|
| Employee benefit plans |
140,149 |
103,257 |
|
| Interest |
30,688 |
29,810 |
|
| Deferred payments received from levelized billing |
2,948,188 |
2,916,408 |
|
| Customer deposits |
707,062 |
679,237 |
|
| Property tax settlement, current portion |
242,128 |
242,120 |
|
| Related parties |
635,192 |
413,399 |
|
| Other current liabilities |
1,280,670 |
1,020,733 |
|
| Overrecovered gas purchases |
2,237,827 |
1,203,191 |
|
| Total current liabilities |
44,499,455 |
38,916,464 |
|
| LONG-TERM LIABILITIES |
|||
| Deferred investment tax credits |
176,379 |
197,441 |
|
| Deferred tax liability |
2,908,167 |
- |
|
| Asset retirement obligation |
1,689,081 |
1,546,867 |
|
| Customer advances for construction |
880,851 |
949,434 |
|
| Regulatory liability for income taxes |
83,161 |
83,161 |
|
| Regulatory liability for gas costs |
57,570 |
131,443 |
|
| Property tax settlement, less current portion |
- |
243,008 |
|
| Total long-term liabilities |
5,795,209 |
3,151,354 |
|
| NOTES PAYABLE, less current portion |
31,344,723 |
21,958,616 |
|
| COMMITMENTS AND CONTINGENCIES (see Note 12) |
|||
| STOCKHOLDERS' EQUITY |
|||
| Preferred stock; $0.15 par value, 1,500,000 shares authorized, |
|||
| no shares issued or outstanding |
- |
- |
|
| Common stock; $0.15 par value, 15,000,000 shares authorized, |
|||
| 8,154,301 and 8,149,801 shares issued and |
|||
| outstanding, respectively |
1,223,145 |
1,222,470 |
|
| Capital in excess of par value |
41,978,799 |
41,910,067 |
|
| Accumulated other comprehensive income |
80,405 |
46,590 |
|
| Retained earnings |
31,489,678 |
30,522,375 |
|
| Total stockholders' equity |
74,772,027 |
73,701,502 |
|
| TOTAL CAPITALIZATION |
106,116,750 |
95,660,118 |
|
| TOTAL LIABILITIES AND CAPITALIZATION |
$ 156,411,414 |
$ 137,727,936 |
|
| Gas Natural Inc. and Subsidiaries Consolidated Statements of Cash Flows |
|||
| 2011 |
2010 |
||
| CASH FLOWS FROM OPERATING ACTIVITIES |
|||
| Net income |
$ 5,369,517 |
$ 5,796,501 |
|
| Adjustments to reconcile net income to net cash provided |
|||
| by operating activities |
|||
| Depreciation and amortization |
4,464,881 |
3,982,602 |
|
| Accretion |
142,214 |
128,294 |
|
| Amortization of debt issuance costs |
144,739 |
51,781 |
|
| Stock based compensation |
69,407 |
83,336 |
|
| Gain on sale of marketable securities |
- |
(159,520) |
|
| Loss on sale of assets |
150,338 |
- |
|
| Loss from unconsolidated affiliate |
877,465 |
193,951 |
|
| Gain on bargain purchase |
(955,423) |
- |
|
| Investment tax credit |
(21,062) |
(21,062) |
|
| Deferred income taxes |
3,745,373 |
2,426,479 |
|
| Changes in assets and liabilities |
|||
| Accounts receivable, including related parties |
448,310 |
3,664,598 |
|
| Unbilled gas |
1,491,492 |
193,584 |
|
| Natural gas and propane inventory |
(964,417) |
6,810 |
|
| Accounts payable, including related parties |
(1,259,006) |
(3,226,273) |
|
| Recoverable/refundable cost of gas purchases |
1,036,044 |
(2,944,969) |
|
| Prepayments and other |
171,858 |
(94,112) |
|
| Other assets |
(644,075) |
32,250 |
|
| Other liabilities |
628,649 |
(3,387,344) |
|
| Net cash provided by operating activities |
14,896,304 |
6,726,906 |
|
| CASH FLOWS FROM INVESTING ACTIVITIES |
|||
| Capital expenditures |
(23,205,518) |
(8,522,517) |
|
| Proceeds from sale of fixed assets |
43,058 |
- |
|
| Proceeds from sale of marketable securities |
- |
4,185,867 |
|
| Purchase of marketable securities |
(39,004) |
(52,948) |
|
| Proceeds from related party note receivable |
9,566 |
- |
|
| Purchase of Cut Bank shares and Kidron Investment |
- |
(206,067) |
|
| Cash acquired in acquisition |
- |
144,203 |
|
| Purchase of Independence Oil & LP Gas, Inc. |
(1,400,656) |
- |
|
| Investment in unconsolidated affiliate |
(567,600) |
(62,581) |
|
| Customer advances for construction |
(68,583) |
149,184 |
|
| Contributions in aid of construction |
217,277 |
(59,536) |
|
| Net cash used in investing activities |
(25,011,460) |
(4,424,395) |
|
| CASH FLOWS FROM FINANCING ACTIVITIES |
|||
| Proceeds from lines of credit |
30,960,000 |
20,800,000 |
|
| Repayment on lines of credit |
(25,949,999) |
(20,899,170) |
|
| Proceeds from notes payable |
18,355,215 |
57,336 |
|
| Repayments of notes payable |
(9,872,140) |
(5,255,578) |
|
| Repayments of related party notes payable |
(49,361) |
(2,086,167) |
|
| Net proceeds from the sale of common stock |
- |
18,806,986 |
|
| Debt issuance costs |
(498,381) |
- |
|
| Restricted cash |
(949,907) |
- |
|
| Dividends paid |
(4,402,011) |
(3,451,501) |
|
| Net cash provided by financing activities |
7,593,416 |
7,971,906 |
|
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
(2,521,740) |
10,274,417 |
|
| CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD |
13,026,585 |
2,752,168 |
|
| CASH AND CASH EQUIVALENTS, END OF PERIOD |
$ 10,504,845 |
$ 13,026,585 |
|
| Gas Natural Inc. and Subsidiaries Segments of Operations |
||||||||||||
| Year Ended December 31, 2011 |
||||||||||||
| Marketing |
||||||||||||
| Natural Gas |
and |
Pipeline |
Propane |
Corporate and |
||||||||
| Operations |
Production |
Operations |
Operations |
Other |
Consolidated |
|||||||
| OPERATING REVENUES |
$ 90,325,379 |
$ 13,461,470 |
$ 417,768 |
$ 3,014,971 |
$ - |
$ 107,219,588 |
||||||
| Intersegment eliminations |
(330,763) |
(7,671,532) |
- |
- |
- |
(8,002,295) |
||||||
| Total operating revenue |
89,994,616 |
5,789,938 |
417,768 |
3,014,971 |
- |
99,217,293 |
||||||
| COST OF SALES |
53,348,689 |
12,142,036 |
- |
2,695,187 |
- |
68,185,912 |
||||||
| Intersegment eliminations |
(330,763) |
(7,671,532) |
- |
- |
- |
(8,002,295) |
||||||
| Total cost of sales |
53,017,926 |
4,470,504 |
- |
2,695,187 |
- |
60,183,617 |
||||||
| GROSS MARGIN |
$ 36,976,690 |
$ 1,319,434 |
$ 417,768 |
$ 319,784 |
$ - |
$ 39,033,676 |
||||||
| OPERATING EXPENSES |
||||||||||||
| Distribution, general and administrative |
18,297,497 |
517,155 |
67,237 |
597,620 |
130,545 |
19,610,054 |
||||||
| Maintenance |
1,061,672 |
648 |
18,076 |
42,052 |
- |
1,122,448 |
||||||
| Depreciation and amortization |
4,016,981 |
285,254 |
60,195 |
102,451 |
- |
4,464,881 |
||||||
| Accretion |
96,536 |
45,678 |
- |
- |
- |
142,214 |
||||||
| Taxes other than income |
3,330,549 |
24,997 |
25,853 |
44,061 |
26,400 |
3,451,860 |
||||||
| Total operating expenses |
26,803,235 |
873,732 |
171,361 |
786,184 |
156,945 |
28,791,457 |
||||||
| OPERATING INCOME (LOSS) |
$ 10,173,455 |
$ 445,702 |
$ 246,407 |
$ (466,400) |
$ (156,945) |
$ 10,242,219 |
||||||
| OTHER INCOME (EXPENSE) |
638,583 |
(877,465) |
- |
1,004,929 |
(282,903) |
483,144 |
||||||
| INTEREST EXPENSE |
(2,106,130) |
(87,744) |
(16,811) |
- |
(3,166) |
(2,213,851) |
||||||
| Intersegment eliminations |
180,248 |
- |
- |
- |
(180,248) |
- |
||||||
| INCOME (LOSS) FROM |
||||||||||||
| CONTINUING OPERATIONS |
$ 8,886,156 |
$ (519,507) |
$ 229,596 |
$ 538,529 |
$ (623,262) |
$ 8,511,512 |
||||||
| INCOME TAX BENEFIT |
||||||||||||
| (EXPENSE) |
(3,072,056) |
232,393 |
(67,167) |
(283,313) |
48,148 |
(3,141,995) |
||||||
| NET INCOME (LOSS) |
$ 5,814,100 |
$ (287,114) |
$ 162,429 |
$ 255,216 |
$ (575,114) |
$ 5,369,517 |
||||||
| Capital expenditures |
$ 22,495,616 |
$ - |
$ 19,248 |
$ 582,889 |
$ 107,765 |
$ 23,205,518 |
||||||
| As of December 31, 2011 |
||||||||||||
| Investment in unconsolidated affiliate |
$ - |
$ 330,351 |
$ - |
$ - |
$ - |
$ 330,351 |
||||||
| Goodwill |
$ 14,607,952 |
$ - |
$ - |
$ - |
$ - |
$ 14,607,952 |
||||||
| Total assets |
$ 142,040,028 |
$ 5,900,392 |
$ 872,341 |
$ 3,638,634 |
$ 68,057,539 |
$ 220,508,934 |
||||||
| Intersegment eliminations |
(50,723,758) |
(1,567,600) |
(28,368) |
(2,125,742) |
(9,652,052) |
(64,097,520) |
||||||
| Total assets |
$ 91,316,270 |
$ 4,332,792 |
$ 843,973 |
$ 1,512,892 |
$ 58,405,487 |
$ 156,411,414 |
||||||
| Gas Natural Inc. and Subsidiaries Segments of Operations |
||||||||||||
| Year Ended December 31, 2010 |
||||||||||||
| Marketing |
||||||||||||
| Natural Gas |
and |
Pipeline |
Propane |
Corporate and |
||||||||
| Operations |
Production |
Operations |
Operations |
Other |
Consolidated |
|||||||
| OPERATING REVENUES |
$ 83,926,733 |
$ 15,116,196 |
$ 426,644 |
$ - |
$ - |
$ 99,469,573 |
||||||
| Intersegment eliminations |
(319,377) |
(7,650,139) |
- |
- |
- |
(7,969,516) |
||||||
| Total operating revenue |
83,607,356 |
7,466,057 |
426,644 |
- |
- |
91,500,057 |
||||||
| COST OF SALES |
49,196,214 |
13,479,242 |
- |
- |
- |
62,675,456 |
||||||
| Intersegment eliminations |
(319,377) |
(7,650,139) |
- |
- |
- |
(7,969,516) |
||||||
| Total cost of sales |
48,876,837 |
5,829,103 |
- |
- |
- |
54,705,940 |
||||||
| GROSS MARGIN |
$ 34,730,519 |
$ 1,636,954 |
$ 426,644 |
$ - |
$ - |
$ 36,794,117 |
||||||
| OPERATING EXPENSES |
||||||||||||
| Distribution, general and administrative |
16,774,046 |
411,815 |
132,529 |
- |
19,782 |
17,338,172 |
||||||
| Maintenance |
1,036,836 |
627 |
14,303 |
- |
- |
1,051,766 |
||||||
| Depreciation and amortization |
3,679,147 |
299,649 |
55,587 |
- |
- |
4,034,383 |
||||||
| Accretion |
84,998 |
43,296 |
- |
- |
- |
128,294 |
||||||
| Taxes other than income |
3,106,991 |
24,285 |
27,641 |
- |
3,283 |
3,162,200 |
||||||
| Total operating expenses |
24,682,018 |
779,672 |
230,060 |
- |
23,065 |
25,714,815 |
||||||
| OPERATING INCOME (LOSS) |
$ 10,048,501 |
$ 857,282 |
$ 196,584 |
$ - |
$ (23,065) |
$ 11,079,302 |
||||||
| OTHER INCOME (EXPENSE) |
872,221 |
(635,328) |
- |
- |
196,659 |
433,552 |
||||||
| INTEREST EXPENSE |
(2,134,869) |
(67,070) |
(25,418) |
- |
- |
(2,227,357) |
||||||
| Intersegment eliminations |
49,135 |
- |
- |
- |
(49,135) |
- |
||||||
| INCOME (LOSS) FROM |
||||||||||||
| CONTINUING OPERATIONS |
$ 8,834,988 |
$ 154,884 |
$ 171,166 |
$ - |
$ 124,459 |
$ 9,285,497 |
||||||
| INCOME TAX EXPENSE |
(3,161,630) |
(39,280) |
(18,383) |
- |
(269,703) |
(3,488,996) |
||||||
| NET INCOME (LOSS) |
$ 5,673,358 |
$ 115,604 |
$ 152,783 |
$ - |
$ (145,244) |
$ 5,796,501 |
||||||
| Capital expenditures |
$ 8,489,529 |
$ - |
$ - |
$ - |
$ 32,988 |
$ 8,522,517 |
||||||
| As of December 31, 2010 |
||||||||||||
| Investment in unconsolidated affiliate |
$ - |
$ 640,216 |
$ - |
$ - |
$ - |
$ 640,216 |
||||||
| Goodwill |
$ 14,607,952 |
$ - |
$ - |
$ - |
$ - |
$ 14,607,952 |
||||||
| Total assets |
$ 114,279,877 |
$ 5,527,185 |
$ 658,198 |
$ - |
$ 77,068,782 |
$ 197,534,042 |
||||||
| Intersegment eliminations |
(46,254,358) |
(1,114,867) |
(17,122) |
- |
(12,419,759) |
(59,806,106) |
||||||
| Total assets |
$ 68,025,519 |
$ 4,412,318 |
$ 641,076 |
$ - |
$ 64,649,023 |
$ 137,727,936 |
||||||
| Gas Natural Inc. and Subsidiaries Natural Gas Operations |
|||||||||||
| Utility Throughput |
|||||||||||
| Year Ended December 31, |
|||||||||||
| (in million cubic feet (MMcf)) |
2011 |
2010 |
|||||||||
| Full Service Distribution |
|||||||||||
| Residential |
4,644 |
4,401 |
|||||||||
| Commercial |
4,552 |
3,885 |
|||||||||
| Industrial |
150 |
129 |
|||||||||
| Total full service |
9,346 |
8,415 |
|||||||||
| Transportation |
9,050 |
7,334 |
|||||||||
| Bucksport |
13,925 |
14,500 |
|||||||||
| Total Volumes |
32,321 |
30,249 |
|||||||||
| Degree Days |
||||||||||
| Years Ended |
Percent (Warmer) Colder |
|||||||||
| December 31, |
2011 Compared to |
|||||||||
| Normal |
2011 |
2010 |
Normal |
2010 |
||||||
| Great Falls, MT |
7,576 |
7,800 |
7,611 |
2.96% |
2.48% |
|||||
| Cody, WY |
6,925 |
7,434 |
7,253 |
7.35% |
2.50% |
|||||
| Bangor, ME |
7,676 |
7,267 |
6,543 |
(5.33%) |
11.07% |
|||||
| Elkin, NC |
3,963 |
3,901 |
4,101 |
(1.56%) |
(4.88%) |
|||||
| Youngstown, OH |
6,522 |
6,024 |
5,988 |
(7.64%) |
0.60% |
|||||
SOURCE Gas Natural Inc.
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