8-K 1 folio72701.htm SECURITIES AND EXCHANGE COMMISSION

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

 

July 27, 2001

Date of Report (Date of earliest event reported)

 

PEOPLES ENERGY CORPORATION

(Exact name of registrant as specified in its charter)

 

 

Illinois

1-5540

36-2642766

(State or other jurisdiction of

(Commission

(I.R.S. Employer

incorporation or organization)

File Number)

Identification No.)

 

24th Floor, 130 East Randolph Drive, Chicago, Illinois

60601-6207

(Address of principal executive offices)

(Zip Code)

Registrant's telephone number, including area code

(312) 240-4000

None

(Former name or former address, if changed since last report)

 

Item 9. Regulation FD Disclosure

On July 27, 2001, Peoples Energy Corporation released its preliminary financial results for its third quarter ended June 30, 2001. The following is additional information regarding these preliminary results.

 

Peoples Energy Corporation         Preliminary
                       
Summary of Selected Financial and Operating Data (Unaudited)  
                       
        Three Months Ended   Nine Months Ended
        June 30,   June 30,
          2001   2000   2001   2000
Operating Results (thousands)                      
Gas Distribution Revenues                      
Sales - Residential                      
- Heating         $ 154,622   $ 138,901   $ 1,302,061   $ 691,798
- Non-heating         11,618   10,717   49,378   36,939
- Commercial         18,933   21,599   192,938   105,750
- Industrial         2,422   2,291   37,346   19,107
Total Gas Distribution Sales         187,595   173,508   1,581,723   853,594
                       
Transportation         24,216   21,608   113,249   93,625
Other         7,183   4,599   14,023   21,766
Total Gas Distribution Revenues         218,994   199,715   1,708,995   968,985
                       
Diversified Segments Revenues         99,507   61,533   400,277   229,410
Total Operating Revenues         318,501   261,248   2,109,272   1,198,395
                       
Less - Cost of energy sold         183,892   127,766   1,469,508   634,139
Gross Margin         134,609   133,482   639,764   564,256
                       
Net Income         $ 11,563   $ 10,852   $ 110,411   $ 97,850
                       
Gas Distribution Deliveries (MDth)                      
Sales - Residential                      
- Heating         13,527   17,480   116,376   106,252
- Non-heating         562   660   2,746   2,863
- Commercial         1,824   3,032   17,833   17,332
- Industrial         324   272   3,617   3,529
Transportation         15,500   19,157   85,349   85,469
Total Gas Distribution Deliveries         31,737   40,601   225,921   215,445
                       
                       
Number of Gas Distribution Customers (average)                      
Sales - Residential                      
- Heating         754,592   745,424   751,468   743,676
- Non-heating         177,147   178,659   177,896   178,357
- Commercial         44,902   48,922   46,952   48,640
- Industrial         2,918   3,204   3,061   3,196
Transportation         22,073   17,096   19,561   17,336
Total Gas Distribution Customers         1,001,632   993,305   998,938   991,205
                       
                       
Degree Days - actual         666   733   6,578   5,529
                       
Per cent colder (warmer) than normal         -14.0%   -1.1%   4.3%   -14.0%

 

 

Peoples Energy Corporation               Preliminary
                     
Consolidated Statements of Income (Unaudited)              
                     
        Three Months Ended   Nine Months Ended
(Thousands, except per-share amounts)       June 30,   June 30,
        2001   2000   2001   2000
                     
Operating Revenues       $ 318,501   $ 261,248   $ 2,109,272   $ 1,198,395
Operating Expenses:                    
Cost of energy sold       183,892   127,766   1,469,508   634,139
Operation and maintenance       59,639   54,677   203,753   190,856
Depreciation, depletion and amortization       25,580   28,410   68,691   74,989
Taxes - Other than income taxes       27,977   27,755   172,907   119,842
                     
Total Operating Expenses       297,088   238,608   1,914,859   1,019,826
                     
Operating Income       21,413   22,640   194,413   178,569
                     
Equity Investment Income       10,890   3,095   26,694   9,144
                     
Total Operating and Equity Investment Income 32,303   25,735   221,107   187,713
                     
Other Income and (Deductions)       1,821   1,948   7,126   3,491
                     
Interest Expense       18,114   13,224   54,311   38,303
                     
Earnings Before Income Taxes       16,010   14,459   173,922   152,901
                     
Income Taxes       4,447   3,607   63,477   55,051
                     
Income Before Cumulative Effect of Change in                    
Accounting Principle       11,563   10,852   110,445   97,850
                     
Cumulative Effect of Change in Accounting                    
Principle, Net of Tax       -   -   (34)   -
                     
Net Income       $ 11,563   $ 10,852   $ 110,411   $ 97,850
                     
Average Shares of Common Stock Outstanding              
Basic       35,396   35,328   35,374   35,448
Diluted       35,459   35,330   35,433   35,452
Earnings Per Share of Common Stock                    
Basic       $ 0.33   $ 0.31   $ 3.12   $ 2.76
Diluted       $ 0.33   $ 0.31   $ 3.12   $ 2.76

 

 

Peoples Energy Corporation               Preliminary
                 
Consolidated Balance Sheets (Unaudited)                
                 
          June 30, June 30,
(Thousands)         2001 2000
                 
Assets                
Capital Investments:                
Property, plant and equipment, at original cost           $ 2,663,263   $ 2,467,491
Less - Accumulated depreciation and depletion           931,392   871,543
Net property, plant and equipment           1,731,871   1,595,948
Investments in equity investees           141,446   130,670
Other investments           25,737   24,135
                 
Total Capital Investments - Net           1,899,054   1,750,753
                 
Utility Customer Accounts Receivable - net of reserves           373,368   127,893
Other Current Assets           456,534   309,250
Other Assets           283,301   218,791
                 
Total Assets           $ 3,012,257   $ 2,406,687
                 
Capitalization and Liabilities                
Common Stockholders' Equity:                
Common stock           $ 299,311   $ 298,058
Capital in excess of par value of stock           15   4
Retained earnings           544,936   517,521
Treasury stock           (6,793)   (6,817)
Accumulated other comprehensive income           (5,410)   (465)
                 
Total Common Stockholders' Equity           832,059   808,301
Long-Term Debt           744,308   319,711
                 
Total Capitalization           1,576,367   1,128,012
Current Liabilities           961,052   843,221
Deferred Credits and Other Liabilities           474,838   435,454
                 
Total Capitalization and Liabilities           $ 3,012,257   $ 2,406,687
                 
                 
Common Stock Information at End of Period                
(Unaudited)                
                 
Annualized dividend rate           $2.04   $2.00
Dividend yield (per cent)           5.1%   6.2%
Book value per share           $23.51   $22.90
Market price           $40.20   $32.38
Market price as a per cent of book value           171%   141%
                 

 

 

Peoples Energy Corporation         Preliminary
               
Consolidated Statements of Cash Flows (Unaudited)              
               
          Nine Months Ended
(Thousands)         June 30,
          2001   2000
Operating Activities:              
Net Income         $ 110,411   $ 97,850
Adjustments to reconcile net income to net cash:              
Depreciation, depletion and amortization              
Per statement of income         68,691   74,989
Charged to other accounts         4,372   3,827
Deferred income taxes and investment tax credits - net         10,810   22,185
Change in deferred credits and other liabilities         12,837   6,915
Change in accumulated other comprehensive income         (2,953)   -
Change in other assets         (55,374)   (41,390)
Undistributed earnings from equity investments         (747)   (3,587)
Change in current assets and liabilities:              
Receivables - net         (333,959)   (122,973)
Materials and supplies         678   1,761
Gas in storage         37,873   30,766
Gas costs recoverable         49,679   (20,169)
Regulatory assets         2,264   (3,378)
Prepayments         (212)   134
Accounts payable         65,967   4,917
Customer gas service and credit deposits         (15,175)   (17,920)
Accrued taxes         51,929   15,123
Gas sales revenue refundable         681   7,516
Accrued interest         7,789   (6,730)
Temporary LIFO Liquidation         87,230   10,740
               
Net Cash Provided by (Used in) Operating Activities         102,791   60,576
               
Investing Activities:              
Capital spending         (203,882)   (170,584)
Other assets         -   (918)
Return of capital investments         37,784    
Temporary investments and special deposits         (18,682)   (38,218)
Advances to joint venture partnerships         (87,504)   -
               
Net Cash Used in Investing Activities         (272,284)   (209,720)
               
Financing Activities:              
Short-term debt         (86,219)   398,000
Issuance of long-term debt         325,000   -
Retirement of long-term debt of subsidiaries         (355)   (175,023)
Dividends paid on common stock         (53,398)   (52,550)
Proceeds from issuance of common stock         1,283   1,349
Treasury stock purchases         25   (6,817)
               
Net Cash Provided by Financing Activities         186,336   164,959
               
Net Increase (Decrease) in Cash and Cash Equivalents         16,843   15,815
Cash and Cash Equivalents at Beginning of Period         5,956   13,008
               
Cash and Cash Equivalents at End of period         $ 22,799   $ 28,823

 

 

Peoples Energy Corporation         Preliminary
                       
Summary of Operating Statistics for the Oil and Gas Production Segment (Unaudited)
                       
        Three Months Ended   Nine Months Ended
        June 30,   June 30,
          2001   2000   2001   2000
Average daily production:                      
Gas (MMCFD)         44.6   38.4   34.2   27.8
Oil (MBOD)         1.2   1.3   1.1   0.7
Gas equivalent (MMCFE)         51.8   46.4   40.9   32.1
                       
Average daily hedged volumes:                      
Gas (MMCFD)         29.5   26.7   25.3   19.4
Oil (MBOD)         0.5   0.4   0.5   0.3
                       
Percentage hedged:                      
Gas         66%   70%   74%   70%
Oil         41%   30%   49%   49%
                       
Average hedge price:                      
Gas ($/MCF)         $ 3.26   $ 2.40   $ 2.70   $ 2.37
Oil ($/BBL)         $ 20.18   $ 18.75   $ 20.96   $ 17.58
                       
Net realized price:                      
Gas ($/MCF)         $ 3.64   $ 2.66   $ 3.25   $ 2.46
Oil ($/BBL)         $ 20.91   $ 24.31   $ 23.17   $ 21.71
Equivalent ($/MCFE)         $ 3.62   $ 2.90   $ 3.35   $ 2.61

 

 

 

 

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

PEOPLES ENERGY CORPORATION
 

(Registrant)
   
   

July 27, 2001

By: /s/ J. M. LUEBBERS

(Date)

J. M. Luebbers
 

Chief Financial Officer and Controller