Gas Natural Inc. Reports 2011 Third Quarter Results and Announces Monthly Dividend of $0.045 per Share
- Consolidated net income improved to $130,000 in the third quarter from a net loss of $45,000 in the prior year period; Year-to-date net income increased 16.7% to $4.8 million
- Cash flows from operations nearly doubled to $12.5 million through the first nine months of 2011
- Third quarter and year-to-date full service distribution volumes increased 10.6% and 18.9%, respectively
- Board of Directors declared a monthly dividend of $0.045 per share to shareholders of record as of November 15, 2011. The dividend will be payable on November 30, 2011.
GREAT FALLS, Mont., Nov. 14, 2011 /PRNewswire/ -- Gas Natural Inc. (NYSE Amex: EGAS), a natural gas utility company serving approximately 63,500 natural gas customers in six states, reported financial results for the third quarter ended September 30, 2011. Reported results included a new segment for Propane Operations as a result of the Company's August 1, 2011 acquisition of the net assets of Independence Oil & LP Gas, Inc., which delivered liquid propane, heating oil, and kerosene to approximately 4,500 customers in North Carolina and Virginia.
Consolidated net income for the third quarter was $130,000, or $0.02 per diluted share, compared with a net loss of $45,000, or $0.01 per diluted share, for the third quarter of 2010. The increase in net income was primarily attributable to the gain recognized as part of the Propane Operations acquisition, partially offset by a decrease in the Natural Gas Operations segment. The change in earnings per share also reflects 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 nine months ended September 30, 2011, consolidated net income increased $681,000, or 16.7%, to $4.8 million compared with $4.1 million during the same period in 2010. The increase in net income was primarily due to continued customer growth, colder weather in most of the Company's service territories, and the Propane Operations acquisition gain. On a per diluted share basis, net income was $0.58 for the first nine months of 2011 compared with $0.68 in the corresponding period of 2010, a reflection of the previously noted equity raise in November 2010.
Richard M. Osborne, Gas Natural's chairman and chief executive officer, commented, "Our results were positively impacted by our new propane business which contributed over $560,000 to the bottom line, the result of a pre-tax gain on the purchase of Independence Oil & LP Gas, Inc. We continued to see strong customer growth within our Maine and North Carolina natural gas service territories. Geographic diversity remains an integral part of our strategy as we continue to grow our customer base while keeping an eye on margin expansion and bottom line results."
Natural Gas Operations Segment
Gas Natural Inc. annually distributes over 30 billion cubic feet of natural gas to approximately 63,500 customers through regulated utilities operating in Montana, Wyoming, Ohio, Pennsylvania, Maine and North Carolina. The Company acquired its Ohio and Pennsylvania operations in January 2010 and its Cut Bank, Montana utility in 2009.
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||
($ in thousands) |
2011 |
2010 |
2011 |
2010 |
|||||
Natural Gas Operations |
|||||||||
Operating revenues |
$ 10,349 |
$ 10,159 |
$ 65,664 |
$ 56,347 |
|||||
Gas Purchased |
4,548 |
4,803 |
38,841 |
32,344 |
|||||
Gross Margin |
5,801 |
5,356 |
26,823 |
24,003 |
|||||
Operating expenses |
6,335 |
6,035 |
19,569 |
18,121 |
|||||
Operating income |
(534) |
(679) |
7,254 |
5,882 |
|||||
Other income (expense) |
(230) |
228 |
97 |
704 |
|||||
Income before interest and taxes |
(764) |
(451) |
7,351 |
6,586 |
|||||
Interest (expense) |
(526) |
(468) |
(1,379) |
(1,545) |
|||||
Income before income taxes |
(1,290) |
(919) |
5,972 |
5,041 |
|||||
Income tax (expense) |
827 |
593 |
(1,817) |
(1,387) |
|||||
Net Income (Loss) |
$ (463) |
$ (326) |
$ 4,155 |
$ 3,654 |
|||||
The Natural Gas Operations segment posted a net loss of $463,000 in the 2011 third quarter compared with a net loss of $326,000 in the prior year period. The increased loss was primarily due to the accrual of the liability and resulting expense of $300,000 related to the conclusion of an arbitration case in Maine, partially offset by additional customer growth in the Company's Maine and North Carolina utilities. For the nine months ended September 30, 2011, the Natural Gas Operations segment contributed net income of $4.2 million compared with $3.7 million for the prior year period. The increase reflects customer growth and colder weather in most of the Company's service territories.
Third quarter operating loss for the Natural Gas Operations segment was $534,000 compared with $679,000 in the third quarter of 2010. Operating income as a percent of gross margin expanded 250 basis points to 27.0% in the first nine months of 2011 compared with 24.5% in the same period in 2010.
Other income in the third quarter and first nine months of 2011 was down from the corresponding periods of 2010 primarily due to the noted accrual of the liability and resulting expense related to the arbitration case.
Interest expense increased $58,000 to $526,000 for the third quarter of 2011 compared with $468,000 last year. For the year-to-date period, 2011 interest expense decreased $166,000 to $1.4 million, as a result of lower debt levels at the Ohio operations, as some outstanding debt was repaid in November 2010, and not refinanced until May 2011.
The Company reported a higher income tax benefit in the third quarter of 2011 primarily due to the increase in the pre-tax loss for the quarter. Income tax expense was $1.8 million for the nine months ended September 30, 2011, compared with $1.4 million for the corresponding period in 2010. The 2010 period included an income tax benefit due to a change in the effective state tax rate for 2010 related to the acquisition of the Ohio operations.
Full service distribution volumes delivered increased 84 MMcf to 873 MMcf in the third quarter of 2011 and were up 1,061 MMcf to 6,689 MMcf through the first nine months of 2011. Customer growth drove the increase in both periods, while the year-to-date period also benefited from colder weather.
Marketing and Production Operations Segment
The Marketing and Production segment had net income of $49,000 in the third quarter of 2011 compared with net income of $274,000 for the third quarter of 2010. The change was primarily the result of tax benefits from the true-up to the prior year's tax return of $9,000 in 2011 and $254,000 in 2010. For the nine months ended September 30, 2011, net income for the segment decreased 48.9% to $158,000 from $309,000. Lower sales, due to the widening of the unfavorable differential between the AECO and CIG Rockies natural gas indexes, and lower production volumes in 2011 were offset by an expense of $440,000 included in the nine months ended September 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 $47,000 and $112,000 in the third quarter and first nine months of 2011, respectively, compared with net income of $83,000 and $143,000 in the third quarter and first nine months of 2010, respectively.
Propane Operations Segment
The newly-formed Propane Operations segment contributed net income of $562,000 in the third quarter of 2011. The income is primarily the result of the pre-tax gain of $1.1 million on the net assets purchased. This segment started during the three months ended September 30, 2011, and as a result there are no comparative amounts for the same period in 2010.
Balance Sheet and Cash Management
Cash and cash equivalents at September 30, 2011, were $10.5 million, down $2.5 million from the end of 2010.
Cash provided by operating activities was $12.5 million in the first nine months of 2011 compared with $6.9 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 nine months of 2011 and 2010 were $15.0 million and $4.0 million, respectively, and were primarily focused on expanding the Company's Natural Gas Operations segment. Included in the 2011 expenditures were $3.3 million related to the pipeline asset acquisition from Marathon Petroleum Company LP in April 2011. The Company expects total capital spending of approximately $19 million for 2011.
The Company maintains a revolving credit facility with $17.6 million in use at the end of the third quarter of 2011. On November 2, 2011, the Company exercised the $10 million accordion feature on the revolving credit facility to increase the maximum capacity from $20 million to $30 million. The expanded credit facility includes an annual commitment fee ranging from 0.25% to 0.45% of the unused portion of the facility and interest on the amounts outstanding at LIBOR plus 175 to 225 basis points. The other terms of the 5 year credit agreement put in place on June 29, 2007 remain unchanged.
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. In August 2011, the Company acquired its propane operations, delivering liquid propane, heating oil, and kerosene to approximately 4,500 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: |
||
Tom Smith |
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 |
||||||||
Three Months Ended |
Nine Months Ended |
|||||||
September 30, |
September 30, |
|||||||
2011 |
2010 |
2011 |
2010 |
|||||
REVENUES |
||||||||
Natural gas operations |
$ 10,348,819 |
$ 10,158,766 |
$ 65,663,664 |
$ 56,347,035 |
||||
Marketing and production |
855,715 |
638,471 |
4,156,882 |
5,624,803 |
||||
Pipeline operations |
106,351 |
104,461 |
314,736 |
319,418 |
||||
Propane operations |
1,009,844 |
- |
1,009,844 |
- |
||||
Total revenues |
12,320,729 |
10,901,698 |
71,145,126 |
62,291,256 |
||||
COST OF SALES |
||||||||
Natural gas purchased |
4,548,224 |
4,803,027 |
38,840,724 |
32,343,603 |
||||
Marketing and production |
585,810 |
380,934 |
3,193,596 |
4,435,153 |
||||
Propane purchased |
875,305 |
- |
875,305 |
- |
||||
Total cost of sales |
6,009,339 |
5,183,961 |
42,909,625 |
36,778,756 |
||||
GROSS MARGIN |
6,311,390 |
5,717,737 |
28,235,501 |
25,512,500 |
||||
OPERATING EXPENSES |
||||||||
Distribution, general, and administrative |
4,635,388 |
4,192,142 |
13,922,684 |
12,459,957 |
||||
Maintenance |
235,635 |
239,152 |
792,827 |
775,634 |
||||
Depreciation and amortization |
1,153,430 |
1,018,857 |
3,256,977 |
2,984,726 |
||||
Accretion |
35,849 |
33,991 |
105,262 |
92,836 |
||||
Taxes other than income |
842,786 |
789,490 |
2,589,732 |
2,548,725 |
||||
Total operating expenses |
6,903,088 |
6,273,632 |
20,667,482 |
18,861,878 |
||||
OPERATING INCOME (LOSS) |
(591,698) |
(555,895) |
7,568,019 |
6,650,622 |
||||
LOSS FROM UNCONSOLIDATED AFFILIATE |
(2,024) |
(2,760) |
(85,174) |
(34,882) |
||||
OTHER INCOME (EXPENSE), net |
(261,625) |
264,922 |
(29,838) |
393,857 |
||||
INTEREST EXPENSE |
(552,341) |
(492,378) |
(1,458,194) |
(1,614,134) |
||||
GAIN ON BARGAIN PURCHASE |
1,054,861 |
- |
1,054,861 |
- |
||||
INCOME (LOSS) FROM OPERATIONS BEFORE |
||||||||
INCOME TAXES |
(352,827) |
(786,111) |
7,049,674 |
5,395,463 |
||||
INCOME TAX BENEFIT (EXPENSE) |
482,353 |
741,406 |
(2,285,056) |
(1,311,444) |
||||
NET INCOME (LOSS) |
$ 129,526 |
$ (44,705) |
$ 4,764,618 |
$ 4,084,019 |
||||
EARNINGS (LOSS) PER SHARE - BASIC |
$ 0.02 |
$ (0.01) |
$ 0.58 |
$ 0.68 |
||||
EARNINGS (LOSS) PER SHARE - DILUTED |
$ 0.02 |
$ (0.01) |
$ 0.58 |
$ 0.68 |
||||
WEIGHTED AVERAGE DIVIDENDS DECLARED |
||||||||
PER COMMON SHARE |
$ 0.135 |
$ 0.135 |
$ 0.405 |
$ 0.410 |
||||
WEIGHTED AVERAGE SHARES |
||||||||
OUTSTANDING - BASIC |
8,152,487 |
6,072,996 |
8,151,370 |
6,040,063 |
||||
WEIGHTED AVERAGE SHARES |
||||||||
OUTSTANDING - DILUTED |
8,160,048 |
6,072,996 |
8,159,326 |
6,048,332 |
||||
Gas Natural Inc. and Subsidiaries |
||||
September 30, |
December 31, |
|||
2011 |
2010 |
|||
ASSETS |
||||
CURRENT ASSETS |
||||
Cash and cash equivalents |
$ 10,490,103 |
$ 13,026,585 |
||
Marketable securities |
367,500 |
274,950 |
||
Accounts receivable |
||||
Trade, less allowance for doubtful accounts of $480,320 |
||||
and $354,719, respectively |
4,360,493 |
9,593,840 |
||
Related parties |
501,752 |
559,384 |
||
Unbilled gas |
1,245,062 |
5,724,346 |
||
Note receivable - related parties, current portion |
10,079 |
9,565 |
||
Inventory |
||||
Natural gas and propane |
7,856,328 |
5,876,710 |
||
Materials and supplies |
2,017,746 |
1,414,367 |
||
Prepaid income taxes |
2,369,558 |
1,601,798 |
||
Prepayments and other |
1,284,704 |
912,959 |
||
Recoverable cost of gas purchases |
2,623,641 |
2,628,824 |
||
Deferred tax asset |
106,601 |
114,362 |
||
Total current assets |
33,233,567 |
41,737,690 |
||
PROPERTY, PLANT AND EQUIPMENT, net |
90,096,562 |
76,134,401 |
||
OTHER ASSETS |
||||
Notes receivable - related parties, less current portion |
38,040 |
45,665 |
||
Deferred tax assets, less current portion |
- |
1,804,264 |
||
Regulatory assets |
||||
Property taxes |
661,147 |
873,197 |
||
Income taxes |
452,645 |
452,645 |
||
Rate case costs |
152,763 |
64,271 |
||
Debt issuance costs, net |
841,440 |
485,244 |
||
Goodwill |
14,607,952 |
14,607,952 |
||
Customer relationships |
645,042 |
662,167 |
||
Investment in unconsolidated affiliate |
858,642 |
640,216 |
||
Restricted cash |
2,756,857 |
- |
||
Other assets |
297,291 |
220,224 |
||
Total other assets |
21,311,819 |
19,855,845 |
||
TOTAL ASSETS |
$ 144,641,948 |
$ 137,727,936 |
||
Gas Natural Inc. and Subsidiaries Consolidated Balance Sheets, Continued (Unaudited) |
||||
September 30, |
December 31, |
|||
2011 |
2010 |
|||
LIABILITIES AND CAPITALIZATION |
||||
CURRENT LIABILITIES |
||||
Checks in excess of amounts on deposit |
$ 155,407 |
$ 532,145 |
||
Line of credit |
17,600,000 |
18,149,999 |
||
Accounts payable |
||||
Trade |
6,333,431 |
9,200,297 |
||
Related parties |
66,910 |
417,543 |
||
Notes payable, current portion |
7,750 |
910,917 |
||
Notes payable - related parties, current portion |
- |
49,361 |
||
Accrued liabilities |
||||
Taxes other than income |
2,704,611 |
2,961,853 |
||
Vacation |
159,603 |
86,194 |
||
Employee benefit plans |
82,585 |
103,257 |
||
Interest |
223,880 |
29,810 |
||
Deferred payments received from levelized billing |
2,589,624 |
2,916,408 |
||
Customer deposits |
702,515 |
679,237 |
||
Property tax settlement, current portion |
242,120 |
242,120 |
||
Related parties |
23,091 |
413,399 |
||
Other current liabilities |
580,457 |
1,020,733 |
||
Overrecovered gas purchases |
2,262,295 |
1,203,191 |
||
Total current liabilities |
33,734,279 |
38,916,464 |
||
LONG-TERM LIABILITIES |
||||
Deferred investment tax credits |
181,645 |
197,441 |
||
Deferred tax liability |
1,198,780 |
- |
||
Asset retirement obligation |
1,652,129 |
1,546,867 |
||
Customer advances for construction |
865,157 |
949,434 |
||
Regulatory liability for income taxes |
83,161 |
83,161 |
||
Regulatory liability for gas costs |
70,454 |
131,443 |
||
Property tax settlement, less current portion |
243,008 |
243,008 |
||
Total long-term liabilities |
4,294,334 |
3,151,354 |
||
NOTES PAYABLE, less current portion |
31,346,758 |
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, |
||||
8,153,176 and 8,149,801 shares outstanding, respectively |
1,222,976 |
1,222,470 |
||
Capital in excess of par value |
41,961,754 |
41,910,067 |
||
Accumulated other comprehensive income |
96,287 |
46,590 |
||
Retained earnings |
31,985,560 |
30,522,375 |
||
Total stockholders' equity |
75,266,577 |
73,701,502 |
||
TOTAL CAPITALIZATION |
106,613,335 |
95,660,118 |
||
TOTAL LIABILITIES AND CAPITALIZATION |
$ 144,641,948 |
$ 137,727,936 |
||
Gas Natural Inc. and Subsidiaries Consolidated Statements of Cash Flows (Unaudited) |
||||
Nine Months Ended |
||||
2011 |
2010 |
|||
CASH FLOWS FROM OPERATING ACTIVITIES |
||||
Net income |
$ 4,764,618 |
$ 4,084,019 |
||
Adjustments to reconcile net income to net cash provided |
||||
by operating activities |
||||
Depreciation and amortization |
3,256,977 |
2,738,441 |
||
Accretion |
105,262 |
92,836 |
||
Amortization of debt issuance costs |
106,748 |
97,975 |
||
Stock based compensation |
52,193 |
62,829 |
||
Gain on sale of marketable securities |
- |
(159,520) |
||
Loss on sale of assets |
30,916 |
- |
||
Loss from unconsolidated affiliate |
85,174 |
34,882 |
||
Gain on bargain purchase |
(1,054,861) |
- |
||
Investment tax credit |
(15,796) |
(15,796) |
||
Deferred income taxes |
2,981,256 |
1,098,029 |
||
Changes in assets and liabilities |
||||
Accounts receivable, including related parties |
5,511,774 |
10,678,613 |
||
Unbilled gas |
4,479,284 |
1,569,929 |
||
Natural gas and propane inventory |
(1,853,006) |
(1,399,660) |
||
Accounts payable, including related parties |
(4,083,198) |
(5,704,175) |
||
Recoverable/refundable cost of gas purchases |
1,064,287 |
(2,704,976) |
||
Prepayments and other |
(371,745) |
(579,352) |
||
Other assets |
(1,520,188) |
(1,601,287) |
||
Other current liabilities |
(993,626) |
(1,424,044) |
||
Net cash provided by operating activities |
12,546,069 |
6,868,743 |
||
CASH FLOWS FROM INVESTING ACTIVITIES |
||||
Capital expenditures |
(14,968,603) |
(3,957,184) |
||
Proceeds from sale of fixed assets |
43,522 |
- |
||
Proceeds from sale of marketable securities |
- |
4,185,867 |
||
Purchase of marketable securities |
(13,304) |
(52,948) |
||
Proceeds from related party note receivable |
7,111 |
- |
||
Purchase of Cut Bank shares and Kidron Investment |
- |
(206,067) |
||
Cash acquired in acquisition |
- |
144,203 |
||
Purchase of Independence Oil & LP Gas, Inc. |
(1,275,656) |
- |
||
Restricted cash |
(1,807,425) |
- |
||
Investment in unconsolidated affiliate |
(303,600) |
(52,500) |
||
Customer advances for construction |
60,720 |
138,443 |
||
Contributions in aid of construction |
2,725 |
(65,689) |
||
Net cash provided by (used in) investing activities |
(18,254,510) |
134,125 |
||
CASH FLOWS FROM FINANCING ACTIVITIES |
||||
Proceeds from lines of credit |
25,200,000 |
28,650,000 |
||
Repayment on lines of credit |
(25,749,999) |
(28,700,000) |
||
Proceeds from notes payable |
18,355,215 |
31,316 |
||
Repayments of notes payable |
(9,870,240) |
(894,013) |
||
Repayments of related party notes payable |
(49,361) |
- |
||
Debt issuance costs |
(462,944) |
- |
||
Restricted cash |
(949,432) |
- |
||
Dividends paid |
(3,301,280) |
(2,458,912) |
||
Net cash provided by (used) in financing activities |
3,171,959 |
(3,371,609) |
||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
(2,536,482) |
3,631,259 |
||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD |
13,026,585 |
2,752,168 |
||
CASH AND CASH EQUIVALENTS, END OF PERIOD |
$ 10,490,103 |
$ 6,383,427 |
||
Gas Natural Inc. and Subsidiaries Consolidated Statements of Cash Flows Continued (Unaudited) |
||||
Nine Months Ended |
||||
2011 |
2010 |
|||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION |
||||
Cash paid for interest |
$ 1,164,165 |
$ 1,293,779 |
||
Cash paid for income taxes |
91,303 |
208,372 |
||
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND |
||||
FINANCING ACTIVITIES |
||||
Shares issued to purchase Ohio Companies |
- |
17,073,084 |
||
Capital expenditures included in accounts payable |
622,642 |
191,457 |
||
Capitalized interest |
6,342 |
3,372 |
||
Accrued dividends |
366,893 |
366,741 |
||
Gas Natural Inc. and Subsidiaries Segments of Operations (Unaudited) |
|||||||||||||||
Three Months Ended September 30, 2011 |
|||||||||||||||
Marketing |
|||||||||||||||
Natural Gas |
and |
Pipeline |
Propane |
Corporate and |
|||||||||||
Operations |
Production |
Operations |
Operations |
Other |
Eliminations |
Consolidated |
|||||||||
OPERATING REVENUES |
|||||||||||||||
Natural gas operations |
$ 11,717,686 |
$ - |
$ - |
$ - |
$ - |
$ (1,368,867) |
$ 10,348,819 |
||||||||
Marketing and production |
- |
2,407,303 |
- |
- |
- |
(1,551,588) |
855,715 |
||||||||
Pipeline operations |
- |
- |
106,351 |
- |
- |
- |
106,351 |
||||||||
Propane operations |
- |
- |
- |
1,009,844 |
- |
- |
1,009,844 |
||||||||
Total operating revenue |
11,717,686 |
2,407,303 |
106,351 |
1,009,844 |
- |
(2,920,455) |
12,320,729 |
||||||||
COST OF SALES |
|||||||||||||||
Gas purchased |
5,917,091 |
- |
- |
- |
- |
(1,368,867) |
4,548,224 |
||||||||
Marketing and production |
- |
2,137,398 |
- |
- |
- |
(1,551,588) |
585,810 |
||||||||
Propane operations |
- |
- |
- |
875,305 |
- |
- |
875,305 |
||||||||
Total cost of sales |
5,917,091 |
2,137,398 |
- |
875,305 |
- |
(2,920,455) |
6,009,339 |
||||||||
GROSS MARGIN |
$ 5,800,595 |
$ 269,905 |
$ 106,351 |
$ 134,539 |
$ - |
$ - |
$ 6,311,390 |
||||||||
OPERATING INCOME (LOSS) |
$ (534,116) |
$ 82,182 |
$ 76,593 |
$ (154,927) |
$ (61,430) |
$ - |
$ (591,698) |
||||||||
NET INCOME (LOSS) |
$ (463,484) |
$ 48,712 |
$ 47,540 |
$ 561,986 |
$ (65,228) |
$ - |
$ 129,526 |
||||||||
Three Months Ended September 30, 2010 |
|||||||||||||||
Marketing |
|||||||||||||||
Natural Gas |
and |
Pipeline |
Propane |
Corporate and |
|||||||||||
Operations |
Production |
Operations |
Operations |
Other |
Eliminations |
Consolidated |
|||||||||
OPERATING REVENUES |
|||||||||||||||
Natural gas operations |
$ 10,235,666 |
$ - |
$ - |
$ - |
$ - |
$ (76,900) |
$ 10,158,766 |
||||||||
Marketing and production |
- |
2,137,068 |
- |
- |
- |
(1,498,597) |
638,471 |
||||||||
Pipeline operations |
- |
- |
104,461 |
- |
- |
- |
104,461 |
||||||||
Propane operations |
- |
||||||||||||||
Total operating revenue |
10,235,666 |
2,137,068 |
104,461 |
- |
- |
(1,575,497) |
10,901,698 |
||||||||
COST OF SALES |
|||||||||||||||
Gas purchased |
4,879,927 |
- |
- |
- |
- |
(76,900) |
4,803,027 |
||||||||
Marketing and production |
- |
1,879,531 |
- |
- |
- |
(1,498,597) |
380,934 |
||||||||
Propane operations |
- |
||||||||||||||
Total cost of sales |
4,879,927 |
1,879,531 |
- |
- |
- |
(1,575,497) |
5,183,961 |
||||||||
GROSS MARGIN |
$ 5,355,739 |
$ 257,537 |
$ 104,461 |
$ - |
$ - |
$ - |
$ 5,717,737 |
||||||||
OPERATING INCOME (LOSS) |
$ (678,894) |
$ 52,455 |
$ 70,544 |
$ - |
$ - |
$ - |
$ (555,895) |
||||||||
NET INCOME (LOSS) |
$ (325,729) |
$ 274,534 |
$ 82,563 |
$ - |
$ (76,073) |
$ - |
$ (44,705) |
||||||||
Gas Natural Inc. and Subsidiaries Segments of Operations |
|||||||||||||||
Nine Months Ended September 30, 2011 |
|||||||||||||||
Marketing |
|||||||||||||||
Natural Gas |
and |
Pipeline |
Propane |
Corporate and |
|||||||||||
Operations |
Production |
Operations |
Operations |
Other |
Eliminations |
Consolidated |
|||||||||
OPERATING REVENUES |
|||||||||||||||
Natural gas operations |
$ 68,019,655 |
$ - |
$ - |
$ - |
$ - |
$ (2,355,991) |
$ 65,663,664 |
||||||||
Marketing and production |
- |
9,957,521 |
- |
- |
- |
(5,800,639) |
4,156,882 |
||||||||
Pipeline operations |
- |
- |
314,736 |
- |
- |
- |
314,736 |
||||||||
Propane operations |
- |
- |
- |
1,009,844 |
- |
- |
1,009,844 |
||||||||
Total operating revenue |
68,019,655 |
9,957,521 |
314,736 |
1,009,844 |
- |
(8,156,630) |
71,145,126 |
||||||||
COST OF SALES |
|||||||||||||||
Gas purchased |
41,196,715 |
- |
- |
- |
- |
(2,355,991) |
38,840,724 |
||||||||
Marketing and production |
- |
8,994,235 |
- |
- |
- |
(5,800,639) |
3,193,596 |
||||||||
Propane operations |
- |
- |
- |
875,305 |
- |
- |
875,305 |
||||||||
Total cost of sales |
41,196,715 |
8,994,235 |
- |
875,305 |
- |
(8,156,630) |
42,909,625 |
||||||||
GROSS MARGIN |
$ 26,822,940 |
$ 963,286 |
$ 314,736 |
$ 134,539 |
$ - |
$ - |
$ 28,235,501 |
||||||||
OPERATING INCOME (LOSS) |
$ 7,254,934 |
$ 388,407 |
$ 188,989 |
$ (154,927) |
$ (109,384) |
$ - |
$ 7,568,019 |
||||||||
NET INCOME (LOSS) |
$ 4,155,383 |
$ 158,119 |
$ 112,094 |
$ 561,986 |
$ (222,964) |
$ - |
$ 4,764,618 |
||||||||
Total assets |
124,288,531 |
4,666,306 |
578,135 |
2,957,575 |
72,261,411 |
(60,110,010) |
144,641,948 |
||||||||
Goodwill |
14,607,952 |
- |
- |
- |
- |
- |
14,607,952 |
||||||||
Nine Months Ended September 30, 2010 |
|||||||||||||||
Marketing |
|||||||||||||||
Natural Gas |
and |
Pipeline |
Propane |
Corporate and |
|||||||||||
Operations |
Production |
Operations |
Operations |
Other |
Eliminations |
Consolidated |
|||||||||
OPERATING REVENUES |
|||||||||||||||
Natural gas operations |
$ 56,581,131 |
$ - |
$ - |
$ - |
$ - |
$ (234,096) |
$ 56,347,035 |
||||||||
Marketing and production |
- |
11,325,249 |
- |
- |
- |
(5,700,446) |
5,624,803 |
||||||||
Pipeline operations |
- |
- |
319,418 |
- |
- |
- |
319,418 |
||||||||
Propane operations |
- |
- |
- |
- |
- |
- |
- |
||||||||
Total operating revenue |
56,581,131 |
11,325,249 |
319,418 |
- |
- |
(5,934,542) |
62,291,256 |
||||||||
COST OF SALES |
|||||||||||||||
Gas purchased |
32,577,699 |
- |
- |
- |
- |
(234,096) |
32,343,603 |
||||||||
Marketing and production |
- |
10,135,599 |
- |
- |
- |
(5,700,446) |
4,435,153 |
||||||||
Propane operations |
- |
- |
- |
- |
- |
- |
- |
||||||||
Total cost of sales |
32,577,699 |
10,135,599 |
- |
- |
- |
(5,934,542) |
36,778,756 |
||||||||
GROSS MARGIN |
$ 24,003,432 |
$ 1,189,650 |
$ 319,418 |
$ - |
$ - |
$ - |
$ 25,512,500 |
||||||||
OPERATING INCOME (LOSS) |
$ 5,882,195 |
$ 609,916 |
$ 169,875 |
$ - |
$ (11,364) |
$ - |
$ 6,650,622 |
||||||||
NET INCOME (LOSS) |
$ 3,653,545 |
$ 308,729 |
$ 143,283 |
$ - |
$ (21,538) |
$ - |
$ 4,084,019 |
||||||||
Total assets |
110,032,010 |
5,463,177 |
726,574 |
- |
57,041,165 |
(51,898,609) |
121,364,317 |
||||||||
Goodwill |
13,929,745 |
- |
- |
- |
- |
- |
13,929,745 |
||||||||
Gas Natural Inc. and Subsidiaries Natural Gas Operations |
||||||||||
Utility Throughput |
||||||||||
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||
(in million cubic feet (MMcf)) |
2011 |
2010 |
2011 |
2010 |
||||||
Full Service Distribution |
||||||||||
Residential |
281 |
326 |
3,184 |
2,816 |
||||||
Commercial |
555 |
432 |
3,384 |
2,699 |
||||||
Industrial |
37 |
31 |
121 |
113 |
||||||
Total full service |
873 |
789 |
6,689 |
5,628 |
||||||
Transportation |
1,884 |
1,468 |
6,452 |
5,199 |
||||||
Bucksport |
3,604 |
3,636 |
10,393 |
10,726 |
||||||
Total Volumes |
6,361 |
5,893 |
23,534 |
21,553 |
||||||
Degree Days |
|||||||||||
Three Months Ended |
Percent (Warmer) Colder |
||||||||||
September 30, |
2011 Compared to |
||||||||||
Normal |
2011 |
2010 |
Normal |
2010 |
|||||||
Great Falls, MT |
375 |
176 |
437 |
(53.07%) |
(59.73%) |
||||||
Cody, WY |
257 |
112 |
229 |
(56.42%) |
(51.09%) |
||||||
Bangor, ME |
239 |
134 |
153 |
(43.93%) |
(12.42%) |
||||||
Elkin, NC |
30 |
60 |
22 |
100.00% |
172.73% |
||||||
Youngstown, OH |
178 |
121 |
137 |
(32.02%) |
(11.68%) |
||||||
Nine Months Ended |
Percent (Warmer) Colder |
||||||||||
September 30, |
2011 Compared to |
||||||||||
Normal |
2011 |
2010 |
Normal |
2010 |
|||||||
Great Falls, MT |
4,824 |
5,336 |
4,772 |
10.61% |
11.82% |
||||||
Cody, WY |
4,359 |
4,797 |
4,577 |
10.05% |
4.81% |
||||||
Bangor, ME |
5,046 |
4,994 |
4,058 |
(1.03%) |
23.07% |
||||||
Elkin, NC |
2,484 |
2,474 |
2,298 |
(0.40%) |
7.66% |
||||||
Youngstown, OH |
4,299 |
4,140 |
3,611 |
(3.70%) |
14.65% |
||||||
SOURCE Gas Natural Inc
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article