Consolidated Statements of Income (Unaudited)
For the 3 months ending September 30, 2003 and 2002

	3rd Quarter
(in thousands, except per share data)		2003		2002		Change
Operating Revenues
Oil and gas operations	$	87,994	$	64,619	$	23,375
Natural gas distribution		58,147		50,225		7,922
Total operating revenues		146,141		114,844		31,297
Operating Expenses
Cost of gas		24,966		17,897		7,069
Operations & maintenance		50,227		47,772		2,455
DD&A		29,203		26,773		2,430
Taxes, other than income taxes		12,389		9,265		3,124
Total operating expenses		116,785		101,707		15,078
Operating Income		29,356		13,137		16,219
Other Income (Expense)
Interest expense		(10,153)		(10,987)		834
Accretion expense		(459)		(480)		21
Other income		2,289		3,885		(1,596)
Other expense		(2,866)		(4,020)		1,154
Total other expense		(11,189)		(11,602)		413
Income Before Income Taxes		18,167		1,535		16,632
Income tax expense		6,710		1,438		5,272
Income from Continuing Operations		11,457		97		11,360
Discontinued Operations, Net of Taxes
Income from operations		145		63		82
Gain (loss) on disposal		294		(33)		327
Income from Discontinued Operations		439		30		409
Net Income	$	11,896	$	127	$	11,769
Diluted Earnings Per Share
Continuing operations	$	0.32	$	-	$	0.32
Discontinued operations		0.01		-		0.01
Net Income	$	0.33	$	-	$	0.33
Basic Earnings Per Share
Continuing operations	$	0.32	$	-	$	0.32
Discontinued operations		0.01		-		0.01
Net Income	$	0.33	$	-	$	0.33
Diluted Avg. Common Shares Outstanding		36,261		34,731		1,530
Basic Avg. Common Shares Outstanding		35,869		34,425		1,444
Dividends Per Share	$	0.185	$	0.18	$	0.005

Consolidated Statements of Income (Unaudited)
For the 9 months ending September 30, 2003 and 2002

	Year to Date
(in thousands, except per share data)			2003		2002			Change
Operating Revenues
Oil and gas operations	$		266,296	$	171,643		$	94,653
Natural gas distribution			373,534		322,458			51,076
Total operating revenues			639,830		494,101			145,729
Operating Expenses
Cost of gas			179,045		144,038			35,007
Operations & maintenance			149,005		137,686			11,319
DD&A			87,473		76,501			10,972
Taxes, other than income taxes			47,824		36,326			11,498
Total operating expenses			463,347		394,551			68,796
Operating Income			176,483		99,550			76,933
Other Income (Expense)
Interest expense			(31,709)		(32,828)			1,119
Accretion expense			(1,419)		(1,331)			(88)
Other income			7,408		10,583			(3,175)
Other expense			(8,218)		(10,614)			2,396
Total other expense			(33,938)		(34,190)			252
Income Before Income Taxes			142,545		65,360			77,185
Income tax expense			53,305		13,817			39,488
Income from Continuing Operations			89,240		51,543			37,697
Discontinued Operations, Net of Taxes
Income from operations			966		(43)			1,009
Gain (loss) on disposal			(382)		273			(655)
Income from Discontinued Operations			584		230			354
Cumulative effect on prior years of a change in accounting principle, net of taxes		-				(2,220)			2,220
Net Income	$		89,824	$	49,553		$	40,271
Diluted Earnings Per Share
Continuing operations	$		2.51	$	1.54		$	0.97
Discontinued operations			0.02		0.01			0.01
Cumulative effect of change in accounting principle			-		(0.07)			0.07
Net Income	$		2.53	$	1.48		$	1.05
Basic Earnings Per Share
Continuing operations	$		2.53	$	1.55		$	0.98
Discontinued operations			0.02		0.01			0.01
Cumulative effect of change in accounting principle			-		(0.07)			0.07
Net Income	$		2.55	$	1.49		$	1.06
Diluted Avg. Common Shares Outstanding			35,561		33,543			2,018
Basic Avg. Common Shares Outstanding			35,208		33,245			1,963
Dividends Per Share	$		0.545	$	0.53		$	0.015

Consolidated Statements of Income (Unaudited)
For the 12 months ending September 30, 2003 and 2002

	Trailing 12 Months
(in thousands, except per share data)			2003		2002			Change
Operating Revenues
Oil and gas operations	$		338,773	$	218,597		$	120,176
Natural gas distribution			475,509		419,136			56,373
Total operating revenues			814,282		637,733			176,549
Operating Expenses
Cost of gas			224,816		189,329			35,487
Operations & maintenance			203,736		191,460			12,276
DD&A			113,264		100,253			13,011
Taxes, other than income taxes			60,354		46,312			14,042
Total operating expenses			602,170		527,354			74,816
Operating Income			212,112		110,379			101,733
Other Income (Expense)
Interest expense			(42,590)		(43,462)			872
Accretion expense			(1,908)		(1,331)			(577)
Other income			13,973		14,937			(964)
Other expense			(14,217)		(14,999)			782
Total other expense			(44,742)		(44,855)			113
Income Before Income Taxes			167,370		65,524			101,846
Income tax expense			59,642		10,424			49,218
Income from Continuing Operations			107,728		55,100			52,628
Discontinued Operations, Net of Taxes
Income from operations			1,296		58			1,238
Gain (loss) on disposal			(112)		273			(385)
Income from Discontinued Operations			1,184		331			853
Cumulative effect on prior years of a change in accounting principle, net of taxes		-				(2,220)			2,220
Net Income	$		108,912	$	53,211		$	55,701
Diluted Earnings Per Share
Continuing operations	$		3.05	$	1.67		$	1.38
Discontinued operations			0.03		0.01			0.02
Cumulative effect of change in accounting principle			-		(0.07)			0.07
Net Income	$		3.08	$	1.61		$	1.47
Basic Earnings Per Share
Continuing operations	$		3.07	$	1.69		$	1.38
Discontinued operations			0.04		0.01			0.03
Cumulative effect of change in accounting principle			-		(0.07)			0.07
Net Income	$		3.11	$	1.63		$	1.48
Diluted Avg. Common Shares Outstanding			35,366		32,965			2,401
Basic Avg. Common Shares Outstanding			35,045		32,692			2,353
Dividends Per Share	$		0.725	$	0.705		$	0.02

Selected Business Segment Data (Unaudited)

For the 3 months ending September 30, 2003 and 2002

	3rd Quarter
(in thousands, except sales price data)		2003		2002		Change
Oil and Gas Operations
Operating revenues
Natural gas	$	59,627	$	37,889	$	21,738
Oil		21,213		19,958		1,255
Natural gas liquids		6,245		5,777		468
Other		909		995		(86)
Total	$	87,994	$	64,619	$	23,375
Production volumes from continuing operations
Natural gas (MMcf)		13,954		11,679		2,275
Oil (MBbl)		838		839		(1)
Natural gas liquids (MBbl)		395		455		(60)
Production volumes from continuing ops. (Mmcfe)		21,352		19,445		1,907
Total sales volume (Mmcfe)		21,359		20,188		1,171
Average sales price from continuing ops.
Natural gas (Mcf)	$	4.27	$	3.24	$	1.03
Oil (barrel)	$	25.30	$	23.78	$	1.52
Natural gas liquids (barrel)	$	15.82	$	12.70	$	3.12
Other data
Lease operating expense (LOE)
LOE and other	$	16,666	$	13,916	$	2,750
Production taxes		6,764		4,783		1,981
Total	$	23,430	$	18,699	$	4,731
DD&A	$	19,818	$	18,281	$	1,537
Capital expenditures	$	31,972	$	25,639	$	6,333
Exploration expense	$	802	$	354	$	448
Operating income	$	39,417	$	22,464	$	16,953
Natural Gas Distribution
Operating revenues
Residential	$	32,997	$	27,829	$	5,168
Commercial and industrial - small		17,844		13,214		4,630
Transportation		8,264		8,163		101
Other		(958)		1,019		(1,977)
Total	$	58,147	$	50,225	$	7,922
Gas delivery volumes (MMcf)
Residential		1,934		1,906		28
Commercial		1,625		1,430		195
Transportation		13,449		14,885		(1,436)
Total		17,008		18,221		(1,213)
Other data
Depreciation and amortization	$	9,385	$	8,492	$	893
Capital expenditures	$	13,177	$	20,719	$	(7,542)
Operating income	$	(9,575)	$	(8,907)	$	(668)
Selected Business Segment Data (Unaudited) For the 9 months ending September 30, 2003 and 2002

	Year to Date
(in thousands, except sales price data)		2003		2002		Change
Oil and Gas Operations
Operating revenues
Natural gas	$	178,162	$	103,309	$	74,853
Oil		65,119		51,006		14,113
Natural gas liquids		18,896		14,821		4,075
Other		4,119		2,507		1,612
Total	$	266,296	$	171,643	$	94,653
Production volumes from continuing operations
Natural gas (MMcf)		41,469		34,050		7,419
Oil (MBbl)		2,539		2,181		358
Natural gas liquids (MBbl)		1,179		1,246		(67)
Production volumes from continuing ops. (Mmcfe)		63,779		54,612		9,167
Total sales volume (Mmcfe)		64,513		57,372		7,141
Average sales price from continuing ops.
Natural gas (Mcf)	$	4.30	$	3.03	$	1.27
Oil (barrel)	$	25.64	$	23.38	$	2.26
Natural gas liquids (barrel)	$	16.03	$	11.90	$	4.13
Other data
Lease operating expense (LOE)
LOE and other	$	48,008	$	38,955	$	9,053
Production taxes		20,721		12,841		7,880
Total	$	68,729	$	51,796	$	16,933
DD&A	$	59,941	$	51,466	$	8,475
Capital expenditures	$	112,994	$	241,838	$	(128,844)
Exploration expense	$	980	$	2,294	$	(1,314)
Operating income	$	123,068	$	52,273	$	70,795
Natural Gas Distribution
Operating revenues
Residential	$	246,382	$	211,316	$	35,066
Commercial and industrial - small		97,556		79,550		18,006
Transportation		28,062		28,265		(203)
Other		1,534		3,327		(1,793)
Total	$	373,534	$	322,458	$	51,076
Gas delivery volumes (MMcf)
Residential		21,851		20,003		1,848
Commercial		9,998		8,991		1,007
Transportation		41,627		44,486		(2,859)
Total		73,476		73,480		(4)
Other data
Depreciation and amortization	$	27,352	$	25,035	$	2,317
Capital expenditures	$	42,158	$	50,455	$	(8,297)
Operating income	$	54,613	$	48,625	$	5,988
Selected Business Segment Data (Unaudited) For the 12 months ending September 30, 2003 and 2002

	Trailing 12 Months
(in thousands, except sales price data)		2003		2002		Change
Oil and Gas Operations
Operating revenues
Natural gas	$	220,788	$	137,599	$	83,189
Oil		86,871		62,134		24,737
Natural gas liquids		25,932		19,103		6,829
Other		5,182		(239)		5,421
Total	$	338,773	$	218,597	$	120,176
Production volume from continuing operations
Natural gas (MMcf)		53,479		45,504		7,975
Oil (MBbl)		3,374		2,645		729
Natural gas liquids (MBbl)		1,645		1,673		(28)
Production volumes from continuing ops. (Mmcfe)		83,591		71,413		12,178
Total production volume (Mmcfe)		85,114		75,394		9,720
Average sales price from continuing ops.
Natural gas (Mcf)	$	4.13	$	3.02	$	1.11
Oil (barrel)	$	25.75	$	23.49	$	2.26
Natural gas liquids (barrel)	$	15.77	$	11.42	$	4.35
Other data
Lease operating expense (LOE)
LOE and other	$	66,194	$	50,429	$	15,765
Production taxes		26,134		16,228		9,906
Total	$	92,328	$	66,657	$	25,671
DD&A	$	77,085	$	67,067	$	10,018
Capital expenditures	$	176,632	$	266,889	$	(90,257)
Exploration expense	$	2,281	$	3,121	$	(840)
Operating income	$	148,301	$	55,485	$	92,816
Natural Gas Distribution
Operating revenues
Residential	$	312,154	$	275,040	$	37,114
Commercial and industrial - small		122,252		101,995		20,257
Transportation		38,192		38,031		161
Other		2,911		4,070		(1,159)
Total	$	475,509	$	419,136	$	56,373
Gas delivery volumes (MMcf)
Residential		28,205		25,131		3,074
Commercial		12,843		11,185		1,658
Transportation		56,786		57,459		(673)
Total		97,834		93,775		4,059
Other data
Depreciation and amortization	$	36,179	$	33,186	$	2,993
Capital expenditures	$	58,905	$	63,415	$	(4,510)
Operating income	$	65,361	$	56,659	$	8,702