EX-99.2 3 p70961exv99w2.txt EXHIBIT 99.2 EXHIBIT 99.2 Last Updated 7/27/2005 PINNACLE WEST CAPITAL CORPORATION QUARTERLY CONSOLIDATED STATISTICAL SUMMARY PERIODS ENDED JUNE 30, 2005 AND 2004
3 MO. ENDED JUNE 6 MO. ENDED JUNE ---------------------------------- ---------------------------------- Line 2005 2004 INCR (DECR) 2005 2004 INCR (DECR) -------- -------- ----------- -------- -------- ----------- EARNINGS CONTRIBUTION BY SUBSIDIARY ($ MILLIONS) 1 Arizona Public Service $ 64 $ 55 $ 9 $ 91 $ 89 $ 2 2 Pinnacle West Energy 12 (14) 26 (8) (36) 28 3 APS Energy Services 1 1 - (2) 3 (5) 4 SunCor 11 4 7 19 6 13 5 El Dorado - 34 (34) (1) 34 (35) 6 Parent Company (3) (6) 3 16 9 7 -------- -------- -------- -------- -------- -------- 7 Income From Continuing Operations 85 74 11 115 105 10 8 Loss From Discontinued Operations - Net of Tax (58) (1) (57) (64) (1) (63) 9 Cumulative Effect of Change in Accounting - Net of Tax - - - - - - -------- -------- -------- -------- -------- -------- 10 Net Income $ 27 $ 73 $ (46) $ 51 $ 104 $ (53) ======== ======== ======== ======== ======== ======== EARNINGS PER SHARE BY SUBSIDIARY - DILUTED 11 Arizona Public Service $ 0.66 $ 0.60 $ 0.06 $ 0.97 $ 0.98 $ (0.01) 12 Pinnacle West Energy 0.13 (0.15) 0.28 (0.09) (0.40) 0.31 13 APS Energy Services 0.01 0.01 - (0.03) 0.03 (0.06) 14 SunCor 0.11 0.04 0.07 0.21 0.06 0.15 15 El Dorado - 0.37 (0.37) (0.01) 0.38 (0.39) 16 Parent Company (0.03) (0.06) 0.03 0.17 0.10 0.07 -------- -------- -------- -------- -------- -------- 17 Income From Continuing Operations 0.88 0.81 0.07 1.22 1.15 0.07 18 Loss From Discontinued Operations - Net of Tax (0.60) (0.02) (0.58) (0.68) (0.01) (0.67) 19 Cumulative Effect of Change in Accounting - Net of Tax - - - - - - -------- -------- -------- -------- -------- -------- 20 Net Income $ 0.28 $ 0.79 $ (0.51) $ 0.54 $ 1.14 $ (0.60) ======== ======== ======== ======== ======== ======== 21 BOOK VALUE PER SHARE $ 32.89 $ 31.68 $ 1.21 $ 32.89 $ 31.68 $ 1.21 COMMON SHARES OUTSTANDING - DILUTED (THOUSANDS) 22 Average 96,299 91,400 4,899 94,189 91,391 2,798 23 End of Period 98,442 91,309 7,133 98,442 91,309 7,133
See Glossary of Terms. Page 2 of 31 Last Updated 7/27/2005 PINNACLE WEST CAPITAL CORPORATION QUARTERLY CONSOLIDATED STATISTICAL SUMMARY PERIODS ENDED JUNE 30, 2005 AND 2004
3 MO. ENDED JUNE 6 MO. ENDED JUNE --------------------------------- --------------------------------- Line 2005 2004 INCR (DECR) 2005 2004 INCR (DECR) ------- ------- ----------- ------- ------- ----------- ELECTRIC OPERATING REVENUES (DOLLARS IN MILLIONS) REGULATED ELECTRICITY SEGMENT RETAIL 24 Residential $ 268 $ 245 $ 23 $ 458 $ 434 $ 24 25 Business 281 257 24 490 468 22 ------- ------- ------- ------- ------- ------- 26 Total retail 549 502 47 948 902 46 WHOLESALE REVENUE ON DELIVERED ELECTRICITY 27 Traditional contracts 5 4 1 8 7 1 28 Off-system sales 12 - 12 12 - 12 29 Transmission for others 7 8 (1) 14 16 (2) 30 Other miscellaneous services 7 6 1 14 10 4 ------- ------- ------- ------- ------- ------- 31 Total regulated electricity 580 520 60 996 935 61 MARKETING AND TRADING SEGMENT 32 Electricity and other commodity sales 71 110 (39) 160 199 (39) ------- ------- ------- ------- ------- ------- 33 Total operating electric revenues $ 651 $ 630 $ 21 $ 1,156 $ 1,134 $ 22 ======= ======= ======= ======= ======= ======= ELECTRIC SALES (GWH) REGULATED ELECTRICITY SEGMENT RETAIL SALES 34 Residential 2,889 2,722 167 5,256 5,132 124 35 Business 3,684 3,602 82 6,726 6,653 73 ------- ------- ------- ------- ------- ------- 36 Total retail 6,573 6,324 249 11,982 11,785 197 WHOLESALE ELECTRICITY DELIVERED 37 Traditional contracts 200 195 5 355 333 22 38 Off-system sales 598 - 598 598 - 598 39 Retail load hedge management 702 731 (29) 1,452 900 552 ------- ------- ------- ------- ------- ------- 40 Total regulated electricity 8,073 7,250 823 14,387 13,018 1,369 MARKETING AND TRADING SEGMENT 41 Wholesale sales of electricity 4,901 7,143 (2,242) 10,678 12,839 (2,161) ------- ------- ------- ------- ------- ------- 42 Total electric sales 12,974 14,393 (1,419) 25,065 25,857 (792) ======= ======= ======= ======= ======= =======
See Glossary of Terms. Page 3 of 31 Last Updated 7/27/2005 PINNACLE WEST CAPITAL CORPORATION QUARTERLY CONSOLIDATED STATISTICAL SUMMARY PERIODS ENDED JUNE 30, 2005 AND 2004
3 MO. ENDED JUNE 6 MO. ENDED JUNE --------------------------------- --------------------------------- Line 2005 2004 INCR (DECR) 2005 2004 INCR (DECR) ---- ---- ----------- ---- ---- ----------- MARKETING AND TRADING SEGMENT PRETAX GROSS MARGIN ANALYSIS (DOLLARS IN MILLIONS) REALIZED AND MARK-TO-MARKET COMPONENTS 43 Electricity and other commodity sales, realized (a) $ 18 $ 22 $ (4) $ 30 $ 34 $ (4) 44 Mark-to-market reversals on realized sales (b) (8) (4) (4) (8) 1 (9) 45 Change in mark-to-market value of forward sales 3 4 (1) 10 8 2 ---- ---- ---- ---- ---- ---- 46 Total gross margin $ 13 $ 22 $ (9) $ 32 $ 43 $(11) ==== ==== ==== ==== ==== ==== BY PINNACLE WEST ENTITY 47 Parent company marketing and trading division $ 6 $ 11 $ (5) $ 27 $ 23 $ 4 48 APS 3 - 3 (1) (5) 4 49 Pinnacle West Energy - 7 (7) 5 17 (12) 50 APS Energy Services 4 4 - 1 8 (7) ---- ---- ---- ---- ---- ---- 51 Total gross margin $ 13 $ 22 $ (9) $ 32 $ 43 $(11) ==== ==== ==== ==== ==== ====
FUTURE MARKETING AND TRADING MARK-TO-MARKET REALIZATION As of June 30, 2005, Pinnacle West had accumulated net mark-to-market gains of $43 million related to our power marketing and trading activities. We estimate that these gains will be reclassified to realized gains as the underlying commodities are delivered, as follows: 2005, $9 million; 2006, $7 million; 2007, $17 million; and thereafter, $10 million. --------------------- (a) The net effect on pretax gross margin from realization of prior-period mark-to-market included in line 43 and in line 44 is zero. Realization of prior-period mark-to-market relates to cash flow recognition, not earnings recognition. The arithmetic opposites of amounts included in line 43 are included in line 44. For example, line 44 shows that a prior-period mark-to-market gain of $8 million was transferred to "realized" for the second quarter of 2005. A $8 million realized gain is included in the $18 million on line 43 for the second quarter of 2005. (b) Quarterly amounts do not total to the annual amounts because of intra-year mark-to-market eliminations. See Glossary of Terms. Page 4 of 31 Last Updated 7/27/2005 PINNACLE WEST CAPITAL CORPORATION QUARTERLY CONSOLIDATED STATISTICAL SUMMARY PERIODS ENDED JUNE 30, 2005 AND 2004
3 MO. ENDED JUNE 6 MO. ENDED JUNE ----------------------------------- ----------------------------------- Line 2005 2004 INCR (DECR) 2005 2004 INCR (DECR) ------- ------- ----------- ------- ------- ----------- AVERAGE ELECTRIC CUSTOMERS RETAIL CUSTOMERS 52 Residential 888,509 852,594 35,915 889,238 854,174 35,064 53 Business 110,658 106,517 4,141 110,227 106,009 4,218 ------- ------- ------- ------- ------- ------- 54 Total 999,167 959,111 40,056 999,465 960,183 39,282 55 Wholesale customers 76 82 (6) 79 82 (3) ------- ------- ------- ------- ------- ------- 56 Total customers 999,243 959,193 40,050 999,544 960,265 39,279 ======= ======= ======= ======= ======= ======= 57 Customer Growth (% over prior year) 4.2% 3.8% 0.4% 4.1% 3.6% 0.5% RETAIL SALES (GWH) - WEATHER NORMALIZED 58 Residential 2,903 2,762 141 5,333 5,133 200 59 Business 3,693 3,616 77 6,751 6,614 137 ------- ------- ------- ------- ------- ------- 60 Total 6,596 6,378 218 12,084 11,747 337 ======= ======= ======= ======= ======= ======= RETAIL USAGE (KWH/AVERAGE CUSTOMER) 61 Residential 3,252 3,193 59 5,911 6,008 (97) 62 Business 33,292 33,816 (524) 61,020 62,759 (1,739) RETAIL USAGE - WEATHER NORMALIZED (KWH/AVERAGE CUSTOMER) 63 Residential 3,268 3,240 28 5,997 6,009 (12) 64 Business 33,374 33,944 (570) 61,250 62,393 (1,143) ELECTRICITY DEMAND (MW) 65 System peak demand 6,458 5,632 826 6,458 5,632 826
See Glossary of Terms. Page 5 of 31 Last Updated 7/27/2005 PINNACLE WEST CAPITAL CORPORATION QUARTERLY CONSOLIDATED STATISTICAL SUMMARY PERIODS ENDED JUNE 30, 2005 AND 2004
3 MO. ENDED JUNE 6 MO. ENDED JUNE -------------------------------- -------------------------------- Line 2005 2004 INCR (DECR) 2005 2004 INCR (DECR) ------ ------ ---------- ------ ------ ----------- ENERGY SOURCES (GWH) GENERATION PRODUCTION 66 Nuclear 1,619 1,860 (241) 3,866 4,008 (142) 67 Coal 3,088 3,035 53 6,028 5,922 106 68 Gas, oil and other 2,074 1,339 735 3,201 1,706 1,495 ------ ------ ------ ------ ------ ------ 69 Total 6,781 6,234 547 13,095 11,636 1,459 ------ ------ ------ ------ ------ ------ PURCHASED POWER 70 Firm load 880 1,532 (652) 1,466 2,233 (767) 71 Marketing and trading 5,984 7,167 (1,183) 11,816 12,673 (857) ------ ------ ------ ------ ------ ------ 72 Total 6,864 8,699 (1,835) 13,282 14,906 (1,624) ------ ------ ------ ------ ------ ------ 73 Total energy sources 13,645 14,933 (1,288) 26,377 26,542 (165) ====== ====== ====== ====== ====== ====== POWER PLANT PERFORMANCE CAPACITY FACTORS 74 Nuclear 67% 77% (10)% 80% 83% (3)% 75 Coal 83% 81% 2% 81% 79% 2% 76 Gas, oil and other 27% 20% 7% 22% 13% 9% 77 System average 49% 50% (1)% 48% 47% 1% GENERATION CAPACITY OUT OF SERVICE AND REPLACED FOR NATIVE LOAD (AVERAGE MW/DAY) 78 Nuclear 329 233 96 381 368 13 79 Coal 244 153 91 440 301 139 80 Gas 164 47 117 376 96 280 ------ ------ ------ ------ ------ ------ 81 Total 737 433 304 1,197 765 432 82 Generation Fuel Cost ($/MWh) $22.86 $18.59 $ 4.27 $19.31 $15.16 $ 4.15
See Glossary of Terms. Page 6 of 31 Last Updated 7/27/2005 PINNACLE WEST CAPITAL CORPORATION QUARTERLY CONSOLIDATED STATISTICAL SUMMARY PERIODS ENDED JUNE 30, 2005 AND 2004
3 MO. ENDED JUNE 6 MO. ENDED JUNE --------------------------------- --------------------------------- Line 2005 2004 INCR (DECR) 2005 2004 INCR (DECR) ------ ------ ----------- ------ ------ ----------- ENERGY MARKET INDICATORS (a) ELECTRICITY AVERAGE DAILY SPOT PRICES ($/MWH) ON-PEAK 83 Palo Verde $53.33 $50.36 $ 2.97 $51.54 $47.05 $ 4.49 84 SP15 $55.19 $54.73 $ 0.46 $55.45 $51.55 $ 3.90 OFF-PEAK 85 Palo Verde $33.03 $33.74 $(0.71) $35.04 $33.70 $ 1.34 86 SP15 $34.73 $37.32 $(2.59) $37.85 $37.11 $ 0.74 WEATHER INDICATORS ACTUAL 87 Cooling degree-days 1,538 1,598 (60) 1,572 1,871 (299) 88 Heating degree-days 1 11 (10) 458 563 (105) 89 Average humidity 20% 19% 1% 38% 29% 9% 10-YEAR AVERAGES 90 Cooling degree-days 1,491 1,491 - 1,571 1,571 - 91 Heating degree-days 36 36 - 557 557 - 92 Average humidity 24% 24% 0% 33% 33% 0% ECONOMIC INDICATORS BUILDING PERMITS - METRO PHOENIX (b) (d) 93 Single-family 7,837 8,903 (1,066) 18,193 18,948 (755) 94 Multi-family 621 915 (294) 2,362 2,673 (311) ------ ------ ------ ------ ------ ------ 95 Total 8,458 9,818 (1,360) 20,555 21,621 (1,066) ====== ====== ====== ====== ====== ====== ARIZONA JOB GROWTH (c) (d) 96 Payroll job growth (% over prior year) 3.9% 3.2% 0.7% 4.0% 2.9% 1.1% 97 Unemployment rate (%, seasonally adjusted) 4.9% 5.2% (0.3)% 4.7% 5.2% (0.5)%
------------------- Sources: (a) This price is an average of daily prices obtained and used with permission from Dow Jones & Company, Inc. (b) Arizona Real Estate Center, Arizona State University W.P. Carey College of Business (c) Arizona Department of Economic Security (d) The economic indicators reflect latest available data through periods ending May 2005. See Glossary of Terms. Page 7 of 31