EX-99 2 l35394aexv99.htm EX-99 EX-99
Exhibit 99
         
(NATIONAL FUEL GAS COMPANY LOGO)
  National Fuel Gas Company   Financial
News
     
 
  6363 Main Street/Williamsville, NY 14221
 
    
 
  James C. Welch
 
  Investor Relations
 
  716-857-6987
Release Date:     Immediate February 5, 2009
    
 
  Ronald J. Tanski
 
  Treasurer
 
  716-857-6981
NATIONAL FUEL REPORTS FIRST QUARTER RESULTS
Williamsville, New York: National Fuel Gas Company (“National Fuel” or the “Company”) (NYSE:NFG) today announced results for the first quarter of its 2009 fiscal year (the quarter ended December 31, 2008).
HIGHLIGHTS
•   National Fuel is reporting a loss for the quarter of $42.7 million or $0.53 per share. The loss is due to the previously announced $108.2 million (after tax), non-cash impairment charge to write down the book value of its oil and natural gas producing properties as a result of significantly lower commodity prices at December 31, 2008.
 
•   Quarterly operating results, before items impacting comparability (“Operating Results”) for the quarter were $64.3 million, or $0.80 per share compared to $70.6 million or $0.82 per share for the prior year’s first quarter. The main drivers causing the decrease in Operating Results were lower average crude oil prices realized and lower natural gas production in the Exploration and Production segment during the quarter.
 
•   Production of crude oil and natural gas during the quarter ended December 31, 2008 decreased 1.1 billion cubic feet equivalent (“Bcfe”) compared to the prior year’s first quarter, mainly due to lingering curtailments in the Gulf of Mexico caused by Hurricane Ike. All pre-hurricane production is expected to be back on line by the end of the second quarter. Total forecast production for the entire 2009 fiscal year remains in the previously announced range between 38 and 44 Bcfe.
 
•   The Company is revising its GAAP earnings guidance range for fiscal 2009 to a range of $1.10 to $1.30 per share. This guidance includes the impairment charge ($1.35 per share) noted above, and assumes flat NYMEX equivalent pricing of $5.50 per MMBtu for natural gas and $45.00 per Bbl for crude oil for unhedged production for the remainder of the fiscal year.
 
•   A conference call is scheduled for Friday, February 6, 2009, at 11:00 am Eastern Standard Time.
MANAGEMENT COMMENTS
     David F. Smith, President and Chief Executive Officer of National Fuel Gas Company stated: “The volatility and turmoil in the financial markets and worldwide economy during the
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past several months have also affected National Fuel and the energy industry as a whole. The continued decrease in commodity prices since July has had a significant negative impact on our financial results, contributing to the large ceiling test write-down as well as the drop in recurring earnings. While there is little we can do to influence global commodity prices, we are acutely focused on operating our assets in the most effective way possible. In that regard, we’ve seen great success, particularly in our regulated segments, which performed flawlessly in the face of significant weather variations, and which delivered stable and predictable earnings that are in line with our last rate awards.
     We’ve long believed in our integrated business model. The value of that model has been particularly evident over the past few quarters. When commodity prices peaked over the summer, we enjoyed record earnings. Even though prices have now cycled lower, we still expect that our operating companies will generate sufficient cash to fund our operations and allow us to comfortably continue our dividend payments. Looking to the future, we expect the overall business environment will continue to be challenging. But, more than ever, we believe that the quality and diversity of our operating results, coupled with our long-standing commitment to fiscal discipline, position us to capitalize on future opportunities.”
SUMMARY OF RESULTS
     National Fuel had a consolidated loss for the quarter ended December 31, 2008 of $42.7 million, or $0.53 per share, compared to the prior year’s first quarter earnings of $70.6 million or $0.82 per share. (note: all references to earnings per share are to diluted earnings per share, all amounts are stated in U.S. dollars, and all amounts used in the earnings and Operating Results discussions are after tax unless otherwise noted).
                 
    Three Months  
    Ended December 31,  
(in thousands except per share amounts)   2008     2007  
Reported GAAP earnings
   $ (42,678 )   $ 70,604  
Items impacting comparability1:
                
 
Impairment of oil and gas producing properties
     108,207          
Impairment of investment in partnership
     1,085          
Gain on life insurance proceeds
     (2,312 )        
 
 
            
Operating Results
   $ 64,302     $ 70,604  
 
            
 
Reported GAAP earnings per share
   $ (0.53 )   $ 0.82  
Items impacting comparability1:
                
 
Impairment of oil and gas producing properties
     1.35          
Impairment of investment in partnership
     0.01          
Gain on life insurance proceeds
     (0.03 )        
 
 
            
Operating Results
   $ 0.80     $ 0.82  
 
            
 
1   See discussion of these items below.
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     As outlined in the table above, certain items included in GAAP earnings impacted the comparability of the Company’s financial results when comparing the first quarters of fiscal 2009 and fiscal 2008. Excluding these items, Operating Results for the current first quarter of $64.3 million or $0.80 per share decreased $6.3 million, or $0.02 per share, from the prior year’s first quarter. Items impacting comparability will be discussed in more detail within the discussion of segment earnings below.
DISCUSSION OF RESULTS BY SEGMENT
     The following discussion of the earnings of each segment is summarized in a tabular form at pages 8 and 9 of this report. It may be helpful to refer to those tables while reviewing this discussion. The Company is reporting financial results for four business segments: Exploration and Production, Pipeline and Storage, Utility, and Energy Marketing. Previously the Company reported separate results for the Timber segment. During the quarter ended December 31, 2008, the Company made the decision to eliminate the Timber segment as a reportable segment based on the fact that the Timber operations do not meet any of the quantitative thresholds specified by Generally Accepted Accounting Principles. Results from the former Timber segment are now included in the All Other category.
Exploration and Production Segment
     The Exploration and Production segment operations are carried out by Seneca Resources Corporation (“Seneca”). Seneca explores for, develops and purchases natural gas and oil reserves mainly in California, in the Appalachian region and in the Gulf of Mexico.
     The Exploration and Production segment’s loss in the first quarter of fiscal 2009 of $83.6 million, or $1.04 per share, is a decrease of $117.6 million, or $1.43 per share, when compared with the prior year’s first quarter. The decrease was mainly due to a non-cash charge of $108.2 million to write down the value of Seneca’s oil and natural gas producing properties.
     Seneca uses the full cost method of accounting for determining the book value of its oil and natural gas properties. This accounting method requires that Seneca perform a quarterly “ceiling test” to compare the present value of future revenues from its oil and natural gas reserves based on period end spot prices (the “ceiling”) with the book value of those reserves at the balance sheet date. If the book value of the reserves exceeds the ceiling, a non-cash charge must be recorded in order to reduce the book value of the reserves to the calculated ceiling.
     Excluding the impact of the ceiling test charge this quarter, Operating Results in the Exploration and Production segment were $24.7 million or $0.31 per share, compared to $34.0 million or $0.39 per share in the first quarter of the prior year. The decrease was primarily due to lower crude oil prices realized after hedging and lower natural gas production. For the quarter ended December 31, 2008, the weighted average oil price received by Seneca (after hedging) was $64.34 per barrel (“Bbl”), a decrease of $8.25 per Bbl, from the prior year’s first quarter. The weighted average natural gas price received by Seneca (after hedging) for the quarter ended December 31, 2008, was $8.90 per thousand cubic feet (“Mcf”), an increase of $1.00 per Mcf compared to the prior year’s first quarter.
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     Overall production for the quarter ended December 31, 2008 was 9.6 Bcfe, a decrease of 1.1 Bcfe compared to the prior year’s first quarter. Hurricane related shut-ins were responsible for most of the 1.2 Bcfe decrease in production of Seneca’s Gulf division. Two significant producing properties were shut-in for the entire first quarter due to repair work on third party pipelines and onshore processing facilities. Production was also slightly lower in the East division primarily due to compressor downtime and pipeline constraints. Higher production in the West partially offset the decreases in the other divisions.
     Other items impacting Operating Results for the quarter were higher lease operating expenses (“LOE”) and general and administrative (“G&A”) expenses. The increase in LOE is mainly due to higher production taxes related to increased production from the High Island 24L and 23L fields located in the Gulf division, higher property taxes and increased well repair costs associated with higher than normal activity in the West, and an increase in the number of producing properties in Appalachia. G&A expenses increased primarily due to a bad debt charge related to a customer’s bankruptcy filing. Additional staffing and associated costs in the East division also contributed to the higher G&A expenses.
Pipeline and Storage Segment
     The Pipeline and Storage segment operations are carried out by National Fuel Gas Supply Corporation (“Supply Corporation”) and Empire Pipeline Inc. (“Empire”). These companies provide natural gas transportation and storage services to affiliated and non-affiliated companies through an integrated system of pipelines and underground natural gas storage fields in western New York and western Pennsylvania.
     The Pipeline and Storage segment’s earnings of $17.2 million, or $0.21 per share, for the quarter ended December 31, 2008, increased $4.4 million, or $0.06 per share, when compared with the same period in the prior fiscal year. The increase is mainly the result of higher transportation and storage revenues and higher efficiency gas revenues. The increase in transportation and storage revenues was largely due to the addition of several new contracts for firm transportation service. The higher efficiency gas revenues were due to higher transported volumes. Also contributing to the higher earnings was an increase in the allowance for funds used during construction related to the construction of the Empire Connector that was placed in service in mid-December 2008. Because of the mid-December start-up date, the Empire Connector did not make a significant contribution to volumes or revenues for the quarter ended December 31, 2008.
Utility Segment
     The Utility segment operations are carried out by National Fuel Gas Distribution Corporation (“Distribution”), which sells or transports natural gas to customers located in western New York and northwestern Pennsylvania. The Utility segment’s earnings of $22.1 million, or $0.28 per share, for the quarter ended December 31, 2008, increased $1.9 million, or $0.04 per share compared to the prior year’s first quarter.
     In the New York division, earnings increased $1.3 million. The increase was due to lower operating expenses mainly related to the rate of accrual for postretirement benefit expenses and lower interest expense this quarter. A decrease in margins partially offset the increase in
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earnings for the current quarter compared to the prior year’s first quarter. The decrease in margins was primarily due to the rate design change approved by the New York State Public Service Commission’s December 28, 2007 rate order.
     Earnings increased $0.6 million in the Pennsylvania division, primarily due to weather that was colder than the prior year. This increase was partially offset by higher bad debt expense.
Energy Marketing
     National Fuel Resources, Inc. (“NFR”) comprises the Company’s Energy Marketing segment. NFR markets natural gas to industrial, wholesale, commercial, public authority and residential customers primarily in western and central New York and northwestern Pennsylvania, offering competitively priced natural gas to its customers.
     The Energy Marketing segment’s earnings for the quarter ended December 31, 2008 of $0.6 million decreased $0.4 million from the first quarter last year. This decrease is mainly due to lower margins.
Corporate and All Other
     Other active, wholly owned subsidiaries of the Company include Highland Forest Resources, Inc., a corporation that markets high quality hardwoods from New York and Pennsylvania land holdings; Horizon LFG, Inc., a corporation engaged, through subsidiaries, in the purchase, processing, transportation and sale of landfill gas; and Horizon Power, Inc., a corporation that develops and owns independent electric generation facilities that are fueled by natural gas or landfill gas.
     Earnings in the Corporate and All Other category for the first quarter of fiscal 2009 decreased $1.6 million when compared to the prior year’s first quarter. The comparability of the quarterly results is impacted by a $2.3 million gain recognized on corporate-owned executive life insurance policies and a $1.1 million impairment in the value of Horizon Power’s 50 percent investment in Energy Systems North East, LLC, a partnership that owns an 80-megawatt combined cycle, natural gas-fired power plant in the town of North East, Pennsylvania. Excluding these items, Operating Results decreased $2.8 million due to lower margins from the timber operations as a result of decreased sales volumes and prices, lower margins experienced in the landfill gas operations, and a decrease in income from unconsolidated subsidiaries. Also contributing to the decrease in Operating Results were higher interest expense and lower interest income. Lower corporate operating expenses partially offset the decrease in Operating Results. Expenses related to a proxy contest in the prior year did not recur in fiscal 2009.
EARNINGS GUIDANCE
     The Company is revising its earnings guidance for fiscal 2009 to reflect actual first quarter results as well as a change in pricing assumptions for crude oil and natural gas. The revised GAAP earnings range is $1.10 to $1.30 per share. This includes the impairment charge ($1.35 per share) noted previously, forecast oil and gas production for fiscal 2009 for the Exploration and Production segment in the range between 38 and 44 Bcfe, hedges currently in place, and
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NYMEX equivalent flat commodity pricing on non-hedged volumes exclusive of basis differential of $5.50 per MMBtu for natural gas and $45.00 per Bbl for crude oil.
EARNINGS TELECONFERENCE
     The Company will host a conference call on Friday, February 6, 2009, at 11 a.m. (Eastern Time) to discuss this announcement. There are two ways to access this call. For those with Internet access, visit the investor relations page at National Fuel’s Web site at investor.nationalfuelgas.com. For those without Internet access, access is also provided by dialing (toll-free) 1-866-783-2146, and using the passcode “16850387.” For those unable to listen to the live conference call, a replay will be available at approximately 2 p.m. (Eastern Time) at the same Web site link and by phone at (toll free) 1-888-286-8010 using passcode “64283323.” Both the webcast and telephonic replay will be available until the close of business on Friday, February 13, 2009.
     Additional information about National Fuel is available on its Internet Web site: www.nationalfuelgas.com or through its investor information service at 1-800-334-2188.
         
Analyst Contact:
  James C. Welch   (716) 857-6987
Media Contact:
  Julie Coppola Cox   (716) 857-7079
Certain statements contained herein, including those regarding estimated future earnings, and statements that are identified by the use of the words “anticipates,” “estimates,” “expects,” “forecasts,” “intends,” “plans,” “predicts,” “projects,” “believes,” “seeks,” “will,” “may” and similar expressions, are “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties, which could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. The Company’s expectations, beliefs and projections contained herein are expressed in good faith and are believed to have a reasonable basis, but there can be no assurance that such expectations, beliefs or projections will result or be achieved or accomplished. In addition to other factors, the following are important factors that could cause actual results to differ materially from those discussed in the forward-looking statements: financial and economic conditions, including the availability of credit, and their effect on the Company’s ability to obtain financing on acceptable terms for working capital, capital expenditures and other investments; occurrences affecting the Company’s ability to obtain financing under credit lines or other credit facilities or through the issuance of commercial paper, other short-term notes or debt or equity securities, including any downgrades in the Company’s credit ratings and changes in interest rates and other capital market conditions; changes in economic conditions, including global, national or regional recessions, and their effect on the demand for, and customers’ ability to pay for, the Company’s products and services; the creditworthiness or performance of the Company’s key suppliers, customers and counterparties; economic disruptions or uninsured losses resulting from terrorist activities, acts of war, major accidents, fires, hurricanes, other severe weather, pest infestation or other natural disasters; changes in actuarial assumptions, the interest rate environment and the return on plan/trust assets related to the Company’s pension and post-retirement benefits, which can affect future funding obligations and costs and plan liabilities; changes in demographic patterns and weather conditions; changes in the availability and/or price of natural
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gas or oil and the effect of such changes on the accounting treatment of derivative financial instruments or the valuation of the Company’s natural gas and oil reserves; impairments under the SEC’s full cost ceiling test for natural gas and oil reserves; uncertainty of oil and natural gas reserve estimates; ability to successfully identify, drill for and produce economically viable natural gas and oil reserves, including shortages, delays or unavailability of equipment and services required in drilling operations; significant changes from expectations in the Company’s actual production levels for natural gas or oil; changes in the availability and/or price of derivative financial instruments; changes in the price differentials between various types of oil; inability to obtain new customers or retain existing ones; significant changes in competitive factors affecting the Company; changes in laws and regulations to which the Company is subject, including tax, environmental, safety and employment laws and regulations; governmental/regulatory actions, initiatives and proceedings, including those involving acquisitions, financings, rate cases (which address, among other things, allowed rates of return, rate design and retained natural gas), affiliate relationships, industry structure, franchise renewal, and environmental/safety requirements; unanticipated impacts of restructuring initiatives in the natural gas and electric industries; significant changes from expectations in actual capital expenditures and operating expenses and unanticipated project delays or changes in project costs or plans; the nature and projected profitability of pending and potential projects and other investments, and the ability to obtain necessary governmental approvals and permits; ability to successfully identify and finance acquisitions or other investments and ability to operate and integrate existing and any subsequently acquired business or properties; significant changes in tax rates or policies or in rates of inflation or interest; significant changes in the Company’s relationship with its employees or contractors and the potential adverse effects if labor disputes, grievances or shortages were to occur; changes in accounting principles or the application of such principles to the Company; the cost and effects of legal and administrative claims against the Company or activist shareholder campaigns to effect changes at the Company; increasing health care costs and the resulting effect on health insurance premiums and on the obligation to provide post-retirement benefits; or increasing costs of insurance, changes in coverage and the ability to obtain insurance. The Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.
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NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
QUARTER ENDED DECEMBER 31, 2008
                                                 
    Exploration &   Pipeline &           Energy   Corporate /    
(Thousands of Dollars)   Production   Storage   Utility   Marketing   All Other   Consolidated
     
First quarter 2008 GAAP earnings
   $ 34,022     $ 12,778     $ 20,217     $ 954     $ 2,633     $ 70,604  
 
                                                
Drivers of operating results
                                                
Higher (lower) crude oil prices
     (4,428 )                                     (4,428 )
Higher (lower) natural gas prices
     3,005                                       3,005  
Higher (lower) natural gas production
     (5,907 )                                     (5,907 )
Higher (lower) crude oil production
     156                                       156  
Lower (higher) lease operating expenses
     (1,325 )                                     (1,325 )
Lower (higher) depreciation / depletion
     586                                       586  
 
                                                
Higher (lower) transportation and storage revenues
             1,218                               1,218  
Higher (lower) efficiency gas revenues
             1,306                               1,306  
Lower (higher) operating expenses
     (1,652 )             1,249               1,080       677  
 
                                                
Colder weather in Pennsylvania
                     824                       824  
 
                                                
Higher (lower) income from unconsolidated subsidiaries
                                     (840 )     (840 )
 
                                                
Higher (lower) margins
                     (1,419 )     (152 )     (1,664 )     (3,235 )
 
Higher AFUDC *
             2,055                               2,055  
Higher (lower) interest income
     (1,624 )                             (1,220 )     (2,844 )
(Higher) lower interest expense
     1,515               771               (544 )     1,742  
 
                                                
All other / rounding
     302       (181 )     446       (203 )     344       708  
     
 
First quarter 2009 operating results
     24,650       17,176       22,088       599       (211 )     64,302  
Items impacting comparability:
                                                
Gain on life insurance policies
                                     2,312       2,312  
Impairment of investment in partnership
                                     (1,085 )     (1,085 )
Impairment of oil and gas properties
     (108,207 )                                     (108,207 )
     
First quarter 2009 GAAP earnings
   $ (83,557 )   $ 17,176     $ 22,088     $ 599     $ 1,016     $ (42,678 )
     
 
*   AFUDC = Allowance for Funds Used During Construction

 

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NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
QUARTER ENDED DECEMBER 31, 2008
                                                 
    Exploration &   Pipeline &           Energy   Corporate /    
    Production   Storage   Utility   Marketing   All Other   Consolidated
     
First quarter 2008 GAAP earnings
   $ 0.39     $ 0.15     $ 0.24     $ 0.01     $ 0.03     $ 0.82  
 
                                                
Drivers of operating results
                                                
Higher (lower) crude oil prices
     (0.06 )                                     (0.06 )
Higher (lower) natural gas prices
     0.04                                       0.04  
Higher (lower) natural gas production
     (0.07 )                                     (0.07 )
Higher (lower) crude oil production
     —                                       —  
Lower (higher) lease operating expenses
     (0.02 )                                     (0.02 )
Lower (higher) depreciation / depletion
     0.01                                       0.01  
 
                                                
Higher (lower) transportation and storage revenues
             0.02                               0.02  
Higher (lower) efficiency gas revenues
             0.02                               0.02  
Lower (higher) operating expenses
     (0.02 )             0.02               0.01       0.01  
 
                                                
Colder weather in Pennsylvania
                     0.01                       0.01  
 
                                                
Higher (lower) income from unconsolidated subsidiaries
                                     (0.01 )     (0.01 )
 
                                                
Higher (lower) margins
                     (0.02 )     —       (0.02 )     (0.04 )
 
                                                
Higher AFUDC *
             0.03                               0.03  
Higher (lower) interest income
     (0.02 )                             (0.02 )     (0.04 )
(Higher) lower interest expense
     0.02               0.01               (0.01 )     0.02  
 
                                                
All other / rounding
     0.04       (0.01 )     0.02       —       0.01       0.06  
     
 
                                                
First quarter 2009 operating results Items impacting comparability:
     0.31       0.21       0.28       0.01       (0.01 )     0.80  
Gain on life insurance policies
                                     0.03       0.03  
Impairment of investment in partnership
                                     (0.01 )     (0.01 )
Impairment of oil and gas properties
     (1.35 )                                     (1.35 )
     
First quarter 2009 GAAP earnings
   $ (1.04 )   $ 0.21     $ 0.28     $ 0.01     $ 0.01     $ (0.53 )
     
 
*   AFUDC = Allowance for Funds Used During Construction

 

 

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NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
                 
    Three Months Ended  
    December 31,  
(Thousands of Dollars, except per share amounts)   (Unaudited)  
SUMMARY OF OPERATIONS
   2008     2007  
Operating Revenues
   $ 607,163     $ 568,268  
 
            
 
                
Operating Expenses:
                
Purchased Gas
     328,733       278,010  
Operation and Maintenance
     101,334       102,455  
Property, Franchise and Other Taxes
     18,762       17,672  
Depreciation, Depletion and Amortization
     42,342       44,121  
Impairment of Oil and Gas Producing Properties
     182,811       —  
 
            
 
     673,982       442,258  
 
                
Operating Income (Loss)
     (66,819 )     126,010  
 
                
Other Income (Expense):
                
Income (Loss) from Unconsolidated Subsidiaries
     (686 )     2,275  
Other Income
     5,327       1,253  
Interest Income
     1,892       3,093  
Interest Expense on Long-Term Debt
     (18,056 )     (16,289 )
Other Interest Expense
     375       (724 )
 
            
 
                
Income (Loss) Before Income Taxes
     (77,967 )     115,618  
 
                
Income Tax Expense (Benefit)
     (35,289 )     45,014  
 
            
 
                
Net Income (Loss) Available for Common Stock
   $ (42,678 )   $ 70,604  
 
            
 
                
Earnings (Loss) Per Common Share:
                
Basic
   $ (0.54 )   $ 0.84  
 
            
Diluted
   $ (0.53 )   $ 0.82  
 
            
 
                
Weighted Average Common Shares:
                
Used in Basic Calculation
     79,289,005       83,611,177  
 
            
Used in Diluted Calculation
     80,167,893       85,819,534  
 
            

 

 

Page 11
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
                 
    December 31,   September 30,
(Thousands of Dollars)   2008   2008
 
ASSETS
                
Property, Plant and Equipment
   $ 4,982,596     $ 4,873,969  
Less — Accumulated Depreciation, Depletion and Amortization
     1,938,841       1,719,869  
     
Net Property, Plant and Equipment
     3,043,755       3,154,100  
     
 
                
Current Assets:
                
Cash and Temporary Cash Investments
     136,685       68,239  
Hedging Collateral Deposits
     3,743       1  
Receivables — Net
     229,220       185,397  
Unbilled Utility Revenue
     79,404       24,364  
Gas Stored Underground
     64,279       87,294  
Materials and Supplies — at average cost
     25,694       31,317  
Unrecovered Purchased Gas Costs
     26,716       37,708  
Other Current Assets
     56,385       65,158  
Deferred Income Taxes
     6,340       —  
     
Total Current Assets
     628,466       499,478  
     
 
                
Other Assets:
                
Recoverable Future Taxes
     83,541       82,506  
Unamortized Debt Expense
     13,531       13,978  
Other Regulatory Assets
     190,890       189,587  
Deferred Charges
     4,233       4,417  
Other Investments
     69,801       80,640  
Investments in Unconsolidated Subsidiaries
     13,443       16,279  
Goodwill
     5,476       5,476  
Intangible Assets
     25,620       26,174  
Prepaid Post-Retirement Benefit Costs
     20,775       21,034  
Fair Value of Derivative Financial Instruments
     111,303       28,786  
Other
     13,353       7,732  
     
Total Other Assets
     551,966       476,609  
     
Total Assets
   $ 4,224,187     $ 4,130,187  
     
 
                
CAPITALIZATION AND LIABILITIES
                
Capitalization:
                
Comprehensive Shareholders’ Equity
                
Common Stock, $1 Par Value Authorized - 200,000,000 Shares; Issued and Outstanding - 79,512,716 Shares and 79,120,544 Shares, Respectively
   $ 79,513     $ 79,121  
Paid in Capital
     580,377       567,716  
Earnings Reinvested in the Business
     884,476       953,799  
     
Total Common Shareholders’ Equity Before Items of Other Comprehensive Income
     1,544,366       1,600,636  
Accumulated Other Comprehensive Income
     50,101       2,963  
     
Total Comprehensive Shareholders’ Equity
     1,594,467       1,603,599  
Long-Term Debt, Net of Current Portion
     999,000       999,000  
     
Total Capitalization
     2,593,467       2,602,599  
     
 
                
Current and Accrued Liabilities:
                
Notes Payable to Banks and Commercial Paper
     66,000       —  
Current Portion of Long-Term Debt
     100,000       100,000  
Accounts Payable
     197,968       142,520  
Amounts Payable to Customers
     4,715       2,753  
Dividends Payable
     25,841       25,714  
Interest Payable on Long-Term Debt
     15,557       22,114  
Customer Advances
     30,093       33,017  
Other Accruals and Current Liabilities
     65,415       45,220  
Deferred Income Taxes
     —       1,871  
Fair Value of Derivative Financial Instruments
     2,941       1,362  
     
Total Current and Accrued Liabilities
     508,530       374,571  
     
 
                
Deferred Credits:
                
Deferred Income Taxes
     604,044       634,372  
Taxes Refundable to Customers
     18,452       18,449  
Unamortized Investment Tax Credit
     4,516       4,691  
Cost of Removal Regulatory Liability
     103,877       103,100  
Other Regulatory Liabilities
     96,378       91,933  
Pension and Other Post-Retirement Liabilities
     73,076       78,909  
Asset Retirement Obligations
     92,597       93,247  
Other Deferred Credits
     129,250       128,316  
     
Total Deferred Credits
     1,122,190       1,153,017  
     
Commitments and Contingencies
     —       —  
     
Total Capitalization and Liabilities
   $ 4,224,187     $ 4,130,187  
     

 

 

Page 12
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
                 
    Three Months Ended  
    December 31,  
(Thousands of Dollars)   2008     2007  
 
Operating Activities:
                
Net Income (Loss) Available for Common Stock
   $ (42,678 )   $ 70,604  
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities:
                
Impairment of Oil and Gas Producing Properties
     182,811       —  
Depreciation, Depletion and Amortization
     42,342       44,121  
Deferred Income Taxes
     (69,626 )     5,296  
(Income) Loss from Unconsolidated Subsidiaries, Net of Cash Distributions
     1,032       431  
Impairment of Investment in Partnership
     1,804       —  
Excess Tax Benefits Associated with Stock-Based Compensation Awards
     (5,927 )     (16,275 )
Other
     6,628       4,916  
Change in:
                
Hedging Collateral Deposits
     (3,742 )     2,070  
Receivables and Unbilled Utility Revenue
     (98,914 )     (127,894 )
Gas Stored Underground and Materials and Supplies
     20,971       (186 )
Unrecovered Purchased Gas Costs
     10,992       2,583  
Prepayments and Other Current Assets
     14,958       10,422  
Accounts Payable
     3,705       42,398  
Amounts Payable to Customers
     1,962       (1,228 )
Customer Advances
     (2,924 )     635  
Other Accruals and Current Liabilities
     30,407       25,400  
Other Assets
     12,560       10,163  
Other Liabilities
     (6,217 )     1,889  
 
Net Cash Provided by Operating Activities
   $ 100,144     $ 75,345  
 
 
Investing Activities:
                
Capital Expenditures
   $ (84,268 )   $ (69,744 )
Cash Held in Escrow
     —       58,397  
Net Proceeds from Sale of Oil and Gas Producing Properties
     —       1,500  
Other
     (632 )     (761 )
 
Net Cash Used in Investing Activities
   $ (84,900 )   $ (10,608 )
 
 
Financing Activities:
                
Change in Notes Payable to Banks and Commercial Paper
   $ 66,000     $ —  
Excess Tax Benefits Associated with Stock-Based Compensation Awards
     5,927       16,275  
Reduction of Long-Term Debt
     —       (24 )
Dividends Paid on Common Stock
     (25,714 )     (25,873 )
Proceeds From Issuance of Common Stock
     6,989       9,846  
 
Net Cash Provided by Financing Activities
   $ 53,202     $ 224  
 
Net Increase in Cash and Temporary Cash Investments
     68,446       64,961  
Cash and Temporary Cash Investments at Beginning of Period
     68,239       124,806  
 
Cash and Temporary Cash Investments at December 31
   $ 136,685     $ 189,767  
 

 

 

Page 13
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
                         
    Three Months Ended  
(Thousands of Dollars, except per share amounts)   December 31,  
EXPLORATION AND PRODUCTION SEGMENT
   2008     2007     Variance  
     
Total Operating Revenues
   $ 96,712     $ 107,955     $ (11,243 )
     
 
                        
Operating Expenses:
                        
Operation and Maintenance:
                        
General and Administrative Expense
     7,092       5,580       1,512  
Lease Operating Expense
     12,614       11,727       887  
All Other Operation and Maintenance Expense
     2,630       1,736       894  
Property, Franchise and Other Taxes (Lease Operating Expense)
     2,955       1,801       1,154  
Depreciation, Depletion and Amortization
     23,144       24,045       (901 )
Impairment of Oil and Gas Producing Properties
     182,811       —       182,811  
     
 
     231,246       44,889       186,357  
     
 
                        
Operating Income (Loss)
     (134,534 )     63,066       (197,600 )
 
                        
Other Income (Expense):
                        
Interest Income
     1,389       3,888       (2,499 )
Other Income
     —       82       (82 )
Other Interest Expense
     (8,814 )     (11,144 )     2,330  
     
 
                        
Income (Loss) Before Income Taxes
     (141,959 )     55,892       (197,851 )
Income Tax Expense (Benefit)
     (58,402 )     21,870       (80,272 )
     
Net Income (Loss)
   $ (83,557 )   $ 34,022     $ (117,579 )
     
 
                        
Net Income (Loss) Per Share (Diluted)
   $ (1.04 )   $ 0.39     $ (1.43 )
     
                         
    Three Months Ended  
    December 31,  
PIPELINE AND STORAGE SEGMENT
   2008     2007     Variance  
     
Revenues from External Customers
   $ 35,267     $ 31,884     $ 3,383  
Intersegment Revenues
     20,837       20,347       490  
     
Total Operating Revenues
     56,104       52,231       3,873  
     
 
                        
Operating Expenses:
                        
Purchased Gas
     14       5       9  
Operation and Maintenance
     16,147       15,999       148  
Property, Franchise and Other Taxes
     4,239       4,273       (34 )
Depreciation, Depletion and Amortization
     7,853       8,109       (256 )
     
 
     28,253       28,386       (133 )
     
 
                        
Operating Income
     27,851       23,845       4,006  
 
Other Income (Expense):
                        
Interest Income
     13       94       (81 )
Other Income
     2,787       690       2,097  
Interest Expense on Long-Term Debt
     —       (16 )     16  
Other Interest Expense
     (3,667 )     (3,035 )     (632 )
     
 
                        
Income Before Income Taxes
     26,984       21,578       5,406  
Income Tax Expense
     9,808       8,800       1,008  
     
Net Income
   $ 17,176     $ 12,778     $ 4,398  
     
 
Net Income Per Share (Diluted)
   $ 0.21     $ 0.15     $ 0.06  
     

 

 

Page 14
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
                         
    Three Months Ended
(Thousands of Dollars, except per share amounts)   December 31,
UTILITY SEGMENT
   2008   2007   Variance
     
Revenues from External Customers
   $ 349,637     $ 327,125     $ 22,512  
Intersegment Revenues
     4,553       4,299       254  
     
Total Operating Revenues
     354,190       331,424       22,766  
     
 
                        
Operating Expenses:
                        
Purchased Gas
     241,896       219,123       22,773  
Operation and Maintenance
     49,614       50,981       (1,367 )
Property, Franchise and Other Taxes
     11,126       11,098       28  
Depreciation, Depletion and Amortization
     9,723       10,042       (319 )
     
 
     312,359       291,244       21,115  
     
 
                        
Operating Income
     41,831       40,180       1,651  
 
                        
Other Income (Expense):
                        
Interest Income
     796       198       598  
Other Income
     275       345       (70 )
Other Interest Expense
     (6,066 )     (7,251 )     1,185  
     
 
                        
Income Before Income Taxes
     36,836       33,472       3,364  
Income Tax Expense
     14,748       13,255       1,493  
     
Net Income
   $ 22,088     $ 20,217     $ 1,871  
     
 
                        
Net Income Per Share (Diluted)
   $ 0.28     $ 0.24     $ 0.04  
     
                         
    Three Months Ended
    December 31,
ENERGY MARKETING SEGMENT
   2008   2007   Variance
     
Operating Revenues
   $ 115,007     $ 86,719     $ 28,288  
     
 
Operating Expenses:
                        
Purchased Gas
     112,450       83,929       28,521  
Operation and Maintenance
     1,468       1,346       122  
Property, Franchise and Other Taxes
     7       10       (3 )
Depreciation, Depletion and Amortization
     11       11       —  
     
 
     113,936       85,296       28,640  
     
 
                        
Operating Income
     1,071       1,423       (352 )
 
                        
Other Income (Expense):
                        
Interest Income
     3       25       (22 )
Other Income
     43       58       (15 )
Other Interest Expense
     (135 )     (84 )     (51 )
     
 
                        
Income Before Income Taxes
     982       1,422       (440 )
Income Tax Expense
     383       468       (85 )
     
Net Income
   $ 599     $ 954     $ (355 )
     
 
                        
Net Income Per Share (Diluted)
   $ 0.01     $ 0.01     $ —  
     

 

 

Page 15
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
                         
    Three Months Ended
(Thousands of Dollars, except per share amounts)   December 31,
ALL OTHER
   2008   2007   Variance
     
Revenues from External Customers
   $ 10,325     $ 14,450     $ (4,125 )
Intersegment Revenues
     2,322       2,714       (392 )
     
Total Operating Revenues
     12,647       17,164       (4,517 )
     
 
                        
Operating Expenses:
                        
Purchased Gas
     1,960       2,202       (242 )
Operation and Maintenance
     9,532       11,017       (1,485 )
Property, Franchise and Other Taxes
     365       420       (55 )
Depreciation, Depletion and Amortization
     1,438       1,742       (304 )
     
 
     13,295       15,381       (2,086 )
     
 
                        
Operating Income (Loss)
     (648 )     1,783       (2,431 )
 
                        
Other Income (Expense):
                        
Income (Loss) from Unconsolidated Subsidiaries
     (686 )     2,275       (2,961 )
Interest Income
     249       405       (156 )
Other Income
     1       9       (8 )
Other Interest Expense
     (773 )     (1,147 )     374  
     
 
                        
Income (Loss) Before Income Taxes
     (1,857 )     3,325       (5,182 )
Income Tax Expense (Benefit)
     (989 )     589       (1,578 )
     
Net Income (Loss)
   $ (868 )   $ 2,736     $ (3,604 )
     
Net Income (Loss) Per Share (Diluted)
   $ (0.01 )   $ 0.03     $ (0.04 )
     

 

 

Page 16
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)
                         
    Three Months Ended
(Thousands of Dollars, except per share amounts)   December 31,
CORPORATE
   2008   2007   Variance
     
Revenues from External Customers
   $ 215     $ 135     $ 80  
Intersegment Revenues
     1,003       961       42  
     
Total Operating Revenues
   $ 1,218     $ 1,096     $ 122  
     
 
                        
Operating Expenses:
                        
Operation and Maintenance
     3,365       5,141       (1,776 )
Property, Franchise and Other Taxes
     70       70       —  
Depreciation, Depletion and Amortization
     173       172       1  
     
 
     3,608       5,383       (1,775 )
     
 
                        
Operating Loss
     (2,390 )     (4,287 )     1,897  
 
                        
Other Income (Expense):
                        
Interest Income
     20,984       22,704       (1,720 )
Other Income
     2,221       69       2,152  
Interest Expense on Long-Term Debt
     (18,056 )     (16,273 )     (1,783 )
Other Interest Expense
     (1,712 )     (2,284 )     572  
     
 
                        
Income (Loss) Before Income Taxes
     1,047       (71 )     1,118  
Income Tax Expense (Benefit)
     (837 )     32       (869 )
     
Net Income (Loss)
   $ 1,884     $ (103 )   $ 1,987  
     
 
                        
Net Income (Loss) Per Share (Diluted)
   $ 0.02     $ —     $ 0.02  
     
                         
    Three Months Ended
    December 31,
INTERSEGMENT ELIMINATIONS
   2008   2007   Variance
     
Intersegment Revenues
   $ (28,715 )   $ (28,321 )   $ (394 )
     
 
Operating Expenses:
                        
Purchased Gas
     (27,587 )     (27,249 )     (338 )
Operation and Maintenance
     (1,128 )     (1,072 )     (56 )
     
 
     (28,715 )     (28,321 )     (394 )
     
Operating Income
     —       —       —  
 
Other Income (Expense):
                        
Interest Income
     (21,542 )     (24,221 )     2,679  
Other Interest Expense
     21,542       24,221       (2,679 )
     
 
Net Income
   $ —     $ —     $ —  
     
 
Net Income Per Share (Diluted)
   $ —     $ —     $ —  
     

 

 

Page 17
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
SEGMENT INFORMATION (Continued)
(Thousands of Dollars)
                         
    Three Months Ended  
    December 31,  
    (Unaudited)  
                    Increase  
    2008     2007     (Decrease)  
Capital Expenditures:
                        
Exploration and Production (1)
   $ 86,410     $ 30,666     $ 55,744  
Pipeline and Storage (2)
     19,501       25,371       (5,870 )
Utility
     13,589       12,709       880  
Energy Marketing
     2       9       (7 )
 
                  
Total Reportable Segments
     119,502       68,755       50,747  
All Other
     52       982       (930 )
Corporate
     31       7       24  
Eliminations
     (344 )     —       (344 )
 
                  
Total Capital Expenditures
   $ 119,241     $ 69,744     $ 49,497  
 
                  
 
(1)   Amount for the three months ended December 31, 2008 includes $51.7 million of accrued capital expenditures, the majority of which was for lease acquisitions in the Appalachian region. This amount has been excluded from the Consolidated Statement of Cash Flows at December 31, 2008 since it represents a non-cash investing activity at that date.
 
(2)   Amount for the three months ended December 31, 2008 excludes $16.8 million of capital expenditures related to the Empire Connector project accrued at September 30, 2008 and paid during the three months ended December 31, 2008. This amount was excluded from the Consolidated Statement of Cash Flows at September 30, 2008 since it represented a non-cash investing activity at that date. The amount has been included in the Consolidated Statement of Cash Flows at December 31, 2008.
DEGREE DAYS
                                         
                            Percent Colder
                            (Warmer) Than:
Three Months Ended December 31   Normal   2008   2007   Normal   Last Year
Buffalo, NY
     2,260       2,313       2,094       2.3       10.5  
Erie, PA
     2,081       2,067       1,871       (0.7 )     10.5  

 

 

Page 18
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
EXPLORATION AND PRODUCTION INFORMATION
                         
    Three Months Ended  
    December 31,  
                    Increase  
    2008     2007     (Decrease)  
Gas Production/Prices:
                        
Production (MMcf)
                        
Gulf Coast
     1,746       2,826       (1,080 )
West Coast
     1,022       1,027       (5 )
Appalachia
     1,851       1,917       (66 )
 
                  
Total Production
     4,619       5,770       (1,151 )
 
                  
 
                        
Average Prices (Per Mcf)
                        
Gulf Coast
   $ 7.04     $ 7.14     $ (0.10 )
West Coast
     5.02       6.77       (1.75 )
Appalachia
     8.53       7.45       1.08  
Weighted Average
     7.19       7.18       0.01  
Weighted Average after Hedging
     8.90       7.90       1.00  
 
                        
Oil Production/Prices:
                        
Production (Thousands of Barrels)
                        
Gulf Coast
     128       156       (28 )
West Coast
     682       629       53  
Appalachia
     15       37       (22 )
 
                  
Total Production
     825       822       3  
 
                  
 
                        
Average Prices (Per Barrel)
                        
Gulf Coast
   $ 56.19     $ 89.84     $ (33.65 )
West Coast
     48.01       81.80       (33.79 )
Appalachia
     69.06       84.12       (15.06 )
Weighted Average
     49.66       83.43       (33.77 )
Weighted Average after Hedging
     64.34       72.59       (8.25 )
 
                        
Total Production (MMcfe)
     9,569       10,702       (1,133 )
 
                  
 
                        
Selected Operating Performance Statistics:
                        
General & Administrative Expense per Mcfe (1)
   $ 0.74     $ 0.52     $ 0.22  
Lease Operating Expense per Mcfe (1)
   $ 1.63     $ 1.26     $ 0.37  
Depreciation, Depletion & Amortization per Mcfe (1)
   $ 2.42     $ 2.25     $ 0.17  
 
(1)   Refer to page 13 for the General and Administrative Expense, Lease Operating Expense and Depreciation, Depletion, and Amortization Expense for the Exploration and Production segment.

 

 

Page 19
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
EXPLORATION AND PRODUCTION INFORMATION
Hedging Summary for the Remaining Nine Months of Fiscal 2009
                 
SWAPS   Volume   Average Hedge Price
Oil
   0.9 MMBBL   $83.12 / BBL
Gas
   7.5 BCF   $9.41 / MCF
Hedging Summary for Fiscal 2010
                 
SWAPS   Volume   Average Hedge Price
Oil
   0.6 MMBBL   $102.52 / BBL
Gas
   3.6 BCF   $10.64 / MCF
Hedging Summary for Fiscal 2011
                 
SWAPS   Volume   Average Hedge Price
Oil
   0.1 MMBBL   $125.25 / BBL
Gas
   1.5 BCF   $8.29 / MCF
Gross Wells in Process of Drilling
Quarter Ended December 31, 2008
                                 
                            Total
    Gulf   West   East   Company
Wells in Process — Beginning of Period
                                
Exploratory
     1.00       0.00       25.00       26.00  
Developmental
     1.00       1.00       123.00       125.00  
Wells Commenced
                                
Exploratory
     0.00       0.00       4.00       4.00  
Developmental
     0.00       17.00       49.00       66.00  
Wells Completed
                                
Exploratory
     1.00       0.00       0.00       1.00  
Developmental
     0.00       10.00       75.00       85.00  
Wells Plugged & Abandoned
                                
Exploratory
     0.00       0.00       2.00       2.00  
Developmental
     1.00       0.00       0.00       1.00  
Wells in Process — End of Period
                                
Exploratory
     0.00       0.00       27.00       27.00  
Developmental
     0.00       8.00       97.00       105.00  
Net Wells in Process of Drilling
Quarter Ended December 31, 2008
                                 
                            Total
    Gulf   West   East   Company
Wells in Process — Beginning of Period
                                
Exploratory
     0.29       0.00       24.00       24.29  
Developmental
     0.30       1.00       122.00       123.30  
Wells Commenced
                                
Exploratory
     0.00       0.00       2.50       2.50  
Developmental
     0.00       17.00       49.00       66.00  
Wells Completed
                                
Exploratory
     0.29       0.00       0.00       0.29  
Developmental
     0.00       10.00       75.00       85.00  
Wells Plugged & Abandoned
                                
Exploratory
     0.00       0.00       2.00       2.00  
Developmental
     0.30       0.00       0.00       0.30  
Wells in Process — End of Period
                                
Exploratory
     0.00       0.00       24.50       24.50  
Developmental
     0.00       8.00       96.00       104.00  

 

 

Page 20
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
Pipeline & Storage Throughput- (millions of cubic feet — MMcf)
                         
    Three Months Ended
    December 31,
                    Increase
    2008   2007   (Decrease)
Firm Transportation — Affiliated
     34,941       31,336       3,605  
Firm Transportation — Non-Affiliated
     75,374       61,547       13,827  
Interruptible Transportation
     1,792       1,083       709  
 
                        
 
     112,107       93,966       18,141  
 
                        
Utility Throughput — (MMcf)
                         
    Three Months Ended
    December 31,
                    Increase
    2008   2007   (Decrease)
Retail Sales:
                        
Residential Sales
     18,166       17,127       1,039  
Commercial Sales
     2,911       2,877       34  
Industrial Sales
     143       123       20  
 
                        
 
     21,220       20,127       1,093  
Off-System Sales
     512       1,031       (519 )
Transportation
     17,473       17,827       (354 )
 
                        
 
     39,205       38,985       220  
 
                        
Energy Marketing Volumes
                         
    Three Months Ended
    December 31,
                    Increase
    2008   2007   (Decrease)
Natural Gas (MMcf)
     13,136       10,841       2,295  
 
                        

 

 

Page 21
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
FISCAL 2009 EARNINGS GUIDANCE AND SENSITIVITY
                                                 
                    Earnings per share sensitivity to changes
Fiscal 2009 (Diluted earnings per share guidance*)   from prices used in guidance* ^
                    $1 change per MMBtu gas   $5 change per Bbl oil
    Earnings Range   Increase   Decrease   Increase   Decrease
Consolidated Earnings
   $ 1.10   -   $1.30       + $0.07       - $0.07       + $0.05       - $0.05  
 
*   Please refer to forward looking statement footnote beginning at page 6 of this document.
 
^   This sensitivity table is current as of February 4, 2009 and only considers revenue from the Exploration and Production segment’s crude oil and natural gas sales. This revenue is based upon pricing used in the Company’s earnings forecast. For the last three quarters of its fiscal 2009 earnings forecast, the Company is utilizing flat NYMEX equivalent commodity pricing, exclusive of basis differential, of $5.50 per MMBtu for natural gas and $45 per Bbl for crude oil. The sensitivities will become obsolete with the passage of time, changes in Seneca’s production forecast, changes in basis differential, as additional hedging contracts are entered into, and with the settling of hedge contracts at their maturity. This table does not factor in any possible additional reduction to earnings due to future “ceiling test” impairments as described in the text of this earnings release.

 

 

Page 22
NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
                 
    2008     2007  
Quarter Ended December 31 (unaudited)
                
 
                
Operating Revenues
   $ 607,163,000     $ 568,268,000  
 
            
 
                
Net Income (Loss) Available for Common Stock
   $ (42,678,000 )   $ 70,604,000  
 
            
 
                
Earnings (Loss) Per Common Share:
                
Basic
   $ (0.54 )   $ 0.84  
 
            
Diluted
   $ (0.53 )   $ 0.82  
 
            
 
                
Weighted Average Common Shares:
                
Used in Basic Calculation
     79,289,005       83,611,177  
 
            
Used in Diluted Calculation
     80,167,893       85,819,534  
 
            
 
                
Twelve Months Ended December 31 (unaudited)
                
 
                
Operating Revenues
   $ 2,439,256,000     $ 2,117,176,000  
 
            
 
                
Income from Continuing Operations
   $ 155,446,000     $ 221,591,000  
Income from Discontinued Operations, Net of Tax
     —       131,948,000  
 
            
Net Income Available for Common Stock
   $ 155,446,000     $ 353,539,000  
 
            
 
                
Earnings Per Common Share:
                
Basic:
                
Income from Continuing Operations
   $ 1.91     $ 2.66  
Income from Discontinued Operations
     —       1.58  
 
            
Net Income Available for Common Stock
   $ 1.91     $ 4.24  
 
            
 
                
Diluted:
                
Income from Continuing Operations
   $ 1.87     $ 2.59  
Income from Discontinued Operations
     —       1.54  
 
            
Net Income Available for Common Stock
   $ 1.87     $ 4.13  
 
            
 
                
Weighted Average Common Shares:
                
Used in Basic Calculation
     81,217,898       83,376,508  
 
            
Used in Diluted Calculation
     83,112,216       85,541,214