Vectren Corporation (NYSE:VVC) today reported results for the three
months ended September 30, 2018 of $50.4 million, or $0.61 per
share, compared to earnings of $61.9 million, or $0.75 per share
for the three months ended September 30, 2017. During the quarter,
the company incurred $11.1 million, $8.8 million after tax, or
$0.10 per share, of expenses related to the merger with CenterPoint
Energy announced earlier this year. Excluding fees related to the
merger that the company believes are not indicative of ongoing
operations, results for the three months ended September 30, 2018,
were $59.2 million, or $0.71 per share.
For the nine months ended September 30, 2018, consolidated net
income was $136.1 million, or $1.64 per share, compared to $154.8
million or $1.87 per share for the nine months ended September 30,
2017. During the year-to-date period, the company has
incurred $26.4 million, $20.2 million after tax, or $0.24 per
share, of expenses related to the merger with CenterPoint Energy
and a $13.1 million after tax charge, or $0.16 per share, related
to its equity investment in certain storage assets jointly owned
with Sempra Energy International (Sempra), resulting from Sempra’s
announcement of an impairment charge related to certain assets.
Excluding these two items that the company believes are not
indicative of ongoing operations, results for the nine months ended
September 30, 2018, were $169.4 million, or $2.04 per share. Also
reflected in the year-to-date 2018 results is income of $4.9
million, or $0.06 per share, related to Section 179D tax
deductions.
Summary and highlights of results
- Utility Group earnings were $33.0 million, or $0.40 per share,
for the three months ended September 30, 2018, compared to earnings
of $30.8 million, or $0.37 per share for the three months ended
September 30, 2017. For the year-to-date period, net income for the
Utility Group was $132.8 million, or $1.60 per share, compared to
earnings of $122.2 million, or $1.47 per share in 2017.
Results for both the quarter and year-to-date periods reflect
increases from the continued investment in infrastructure
replacement programs in Indiana and Ohio and the favorable impact
of weather in 2018 as compared to 2017.
- Nonutility Group earnings were $26.3 million, or $0.32 per
share, compared to $31.3 million, or $0.38 per share, in the third
quarter of 2017. For the year-to-date period, excluding the charge
incurred related to the storage asset investment, Nonutility Group
earnings were $37.4 million, or $0.45 per share, compared to $33.0
million, or $0.40 per share, in 2017. Also reflected in the
year-to-date 2018 results is income of $4.9 million, or $0.06 per
share, related to Section 179D tax deductions. Decreases in the
quarter, partially offset by the benefit from the lower corporate
tax rate, reflect the impact of a large Infrastructure Services
transmission construction project with substantial activity in the
third quarter of 2017.
“We continue to be confident in our consolidated earnings
expectation for the year,” said Carl Chapman, Vectren’s chairman,
president and CEO. “Our Utility Group results reflect the ongoing
investment in our gas infrastructure programs in both Indiana and
Ohio that continue to drive growth for the business. Despite some
declines in the period associated with our Infrastructure Services
business, overall, our Nonutility Group expects strong demand to
continue for both the Infrastructure Services and Energy Services
businesses.”
“Also, last week we reported that our Board of Directors
approved a quarterly dividend of $0.48 per share, a 6.7 percent
increase,” said Chapman. “This action continues our stretch of
increases to an enviable 59 consecutive years. This announcement is
certainly a reflection of our confidence in the long-term growth
plan.”
Update on Merger with CenterPoint Energy
As previously announced, the company reached an agreement for
the merger of CenterPoint Energy and Vectren Corporation on Apr.
21, 2018. The consummation of the merger is subject to various
conditions. The various approvals processes are moving forward,
including the receipt of early termination of the waiting period
under the Hart-Scott-Rodino Act, the Federal Communications
Commission final approvals for the transfer of control of the
company’s subsidiaries which hold radio licenses, and approval from
the Federal Energy Regulatory Commission. Further, the company held
a special shareholders meeting on Aug. 28, 2018, where the merger
was approved. Finally, the Indiana Regulatory Commission (IURC)
held a hearing on Oct. 17, 2018 on the company’s informational
filing. Final briefs are to be filed by December 21, 2018, and an
order is expected in early 2019. A similar informational filing was
made in Ohio and, though a hearing before the Public Utilities
Commission of Ohio (PUCO) is not anticipated, an order is expected
in early 2019, as well. As of November 5, 2018, seven purported
company shareholders have filed lawsuits under the federal
securities laws in the United States District Court for the
Southern District of Indiana challenging the adequacy of the
disclosures made in the company's proxy statement in connection
with the merger. The company believes that these complaints are
without merit. Subject to receipt of remaining approvals, the
company continues to anticipate that the closing of the merger will
occur no later than the first quarter of 2019.
In connection with the merger, the company recorded
merger-related expenses of $11.1 million and $26.4 million, in the
quarter and year-to-date periods ending September 30, 2018,
respectively. Merger-related expenses included $10.3 million and
$20.5 million, of transaction advisory and other costs for the
quarter and year-to-date periods, respectively, and $0.8 million
and $5.9 million, in the quarter and year-to-date periods,
respectively, for the end-of-period measurement of share-based and
deferred compensation obligations that resulted from increases in
the company’s common stock trading price since the announcement of
the merger.
2018 consolidated earnings guidance affirmed; segment
guidance updated
The company affirms its 2018 consolidated earnings guidance
range of $2.80 to $2.90 per share. The 2018 consolidated earnings
guidance expectation includes Utility Group earnings now within a
range of $2.25 to $2.30 per share, increased from $2.20 to $2.25
per share, primarily from favorable weather year-to-date. The 2018
consolidated earnings guidance expectation includes the Nonutility
Group/Corporate and Other earnings now within a range of $0.55 to
$0.60 per share, down from $0.60 to $0.65 per share, due largely to
the timing of large transmission project work. These guidance
ranges exclude certain items that management believes are not
indicative of on-going operations, including the charge recorded
related to its equity investment in certain storage assets jointly
owned with Sempra and any costs that will result from the merger of
the company and CenterPoint Energy. The guidance ranges also
exclude the favorable impact from Section 179D tax deductions as
the tax provision providing for such deductions has expired.
Guidance ranges are based on assumptions, including the
assumption of normal weather for the remainder of the year across
all of the areas served by both our utility and nonutility
operations, and other information currently available, but changes
in these assumptions or other circumstances could materially impact
earnings and result in 2018 earnings significantly above or below
this guidance. These targeted ranges are subject to such factors
discussed below under "Forward-Looking Statements".
Utility Group discussion
The Utility Group consists of the company’s regulated utility
operations and other operations that provide information technology
and other support services to those regulated operations. The
company segregates its regulated utility operations between a Gas
Utility Services operating segment and an Electric Utility Services
operating segment. The Utility Group also earns a return on shared
assets, such as customer billing systems and the customer contact
center, used by the company’s utility operations.
Gas Utility Services: provides natural gas
distribution and transportation services to nearly two-thirds of
Indiana and about 20 percent of Ohio, primarily in the west-central
area
The Gas Utility Services operating segment had losses of ($0.6)
million, or $(0.01) per share, during the third quarter of 2018,
compared to earnings of $1.0 million, or $0.01 per share, in the
third quarter of 2017. For the nine months ended September 30,
2018, Gas Utility Services earned $60.7 million, or $0.73 per
share, compared to $55.8 million, or $0.67 per share, in 2017. The
quarter and year-to-date results reflect increased returns on the
growing Indiana and Ohio infrastructure replacement programs. While
offset on an annual basis in 2018, the results in the quarter and
year-to-date periods reflect the timing impacts from tax reform in
the determination of the annual effective tax rate.
| |
|
|
|
|
|
(millions) |
|
Quarter End |
|
Year to Date |
| 2017 Gas Utility
Earnings |
|
$ |
1.0 |
|
|
$ |
55.8 |
|
|
|
|
|
|
|
| Gas
infrastructure replacement programs |
|
|
2.3 |
|
|
|
8.4 |
|
| Timing of
tax reform |
|
|
(4.6 |
) |
|
|
(3.4 |
) |
| All
other |
|
|
0.7 |
|
|
|
(0.1 |
) |
|
|
|
|
(1.6 |
) |
|
|
4.9 |
|
|
|
|
|
|
|
| 2018 Gas Utility
Earnings |
|
$ |
(0.6 |
) |
|
$ |
60.7 |
|
|
|
|
|
|
|
Electric Utility Services: provides electric
transmission and distribution services to southwestern Indiana and
includes its power generating and wholesale power operations
The Electric Utility Services operating segment earned $30.6
million, or $0.37 per share, in the third quarter of 2018, compared
to $27.2 million, or $0.33 per share, in the third quarter of 2017.
For the nine months ended September 30, 2018, Electric Utility
Services earned $62.4 million, or $0.75 per share, compared to
$56.8 million, or $0.68 per share, in 2017. Electric results, which
are not protected by weather normalizing mechanisms, reflect a $2.0
million increase due to weather in the quarter, as annualized
cooling degree days were 111% of normal, compared to normal weather
in 2017. Year-to-date results reflect a $7.5 million
favorable variance year-over-year due to weather as annualized
cooling degree days were 130% of normal, compared to 108% of normal
in 2017, partially offset by an increase in power plant maintenance
expenses. Results in the quarter and year-to-date period also
reflect the timing impacts from tax reform in the determination of
the annual effective tax rate that will be fully offset by
year-end.
| |
|
|
|
|
|
(millions) |
|
Quarter End |
|
Year to Date |
| 2017 Electric Utility
Earnings |
|
$ |
27.2 |
|
|
$ |
56.8 |
|
|
|
|
|
|
|
| Electric
infrastructure replacement programs |
|
|
0.5 |
|
|
|
0.9 |
|
| Weather
impact on small customer usage |
|
|
2.0 |
|
|
|
7.5 |
|
| Power
plant maintenance expense |
|
|
(1.6 |
) |
|
|
(2.8 |
) |
| Timing of
tax reform |
|
|
1.9 |
|
|
|
0.2 |
|
| All
other |
|
|
0.6 |
|
|
|
(0.2 |
) |
|
|
|
|
3.4 |
|
|
|
5.6 |
|
|
|
|
|
|
|
| 2018 Electric Utility
Earnings |
|
$ |
30.6 |
|
|
$ |
62.4 |
|
|
|
|
|
|
|
Other OperationsThe Utility Group also earns a
return on shared assets through currently approved rates as if
portions of the assets were in the rate base of each utility. Such
shared assets include customer billing systems and the customer
contact center, as examples. In the third quarter of 2018, earnings
from these operations were $3.0 million, compared to $2.6 million
in the second quarter of 2017. For the nine months ended
September 30, 2018, earnings from these operations were $9.7
million, compared to $9.6 million in 2017.
Nonutility Group discussion
All amounts included in this section are after tax and net of
corporate expenses allocated to the Nonutility Group.
In the third quarter of 2018, Nonutility Group results were
earnings of $26.3 million, compared to earnings of $31.3 million in
2017. For the nine months ended September 30, 2018, excluding the
charge recorded related to its equity investment in certain storage
assets jointly owned with Sempra, the Nonutility Group reported
earnings of $37.4 million, compared to earnings of $33.0 million in
2017. Also reflected in the year-to-date 2018 results is income of
$4.9 million, related to Section 179D tax deductions.
Infrastructure Services: provides underground
pipeline construction and repair services through wholly owned
subsidiaries Miller Pipeline, LLC and Minnesota Limited, LLC.
Results from Infrastructure Services’ operations for the quarter
ended September 30, 2018, were $22.1 million, or $0.27 per share,
compared to $26.6 million, or $0.32 per share, in the third quarter
of 2017. During the nine months ended September 30, 2018, results
were $26.0 million, or $0.31 per share, compared to $28.6 million,
or $0.35 per share in 2017. Total Infrastructure Services revenues
in the third quarter of 2018 were $307.2 million compared to
revenues of $339.9 million in the third quarter of 2017.
Year-to-date, 2018 revenues totaled $721.9 million, compared to
$764.7 million for the year-to-date period in 2017. On a
comparative basis, the lower results in 2018 primarily reflect the
impact of a large project with substantial activity in the third
quarter of 2017. Infrastructure Services had an estimated backlog
of blanket contracts of $610 million and bid contracts of $105
million, for a total backlog of $715 million at September 30, 2018.
This compares to an estimated total backlog at September 30, 2017
of $755 million, which included $40 million related to the large
transmission project that was completed in the fourth quarter of
2017. Infrastructure Services is currently in contract negotiations
on an approximate $300 million transmission construction project.
Upon closure, the project is expected to begin in late 2018 and be
completed by the end of 2019.
The fundamental business model related to the long cycle of
integrity, station, and maintenance work in the transmission sector
and infrastructure replacement in the distribution sector remains
unchanged as demand continues to be high due to the aging
infrastructure and evolving safety and reliability regulations.
While the focus remains on the recurring work in both sectors,
opportunities for large transmission pipeline construction projects
will continue to be pursued. Though the timing and recurrence of
large transmission projects is less predictable and can therefore
create earnings volatility on a year over year basis, the large
projects provide strong revenues.
Energy Services: provides energy performance
contracting and sustainable infrastructure, such as renewables,
distributed generation, and combined heat and power projects
through its wholly owned subsidiary Energy Systems Group, LLC
(ESG).
Results from Energy Services’ operations for the third quarter
of 2018 were earnings of $4.5 million, or $0.05 per share, compared
to earnings of $4.9 million, or $0.06 per share in 2017. Excluding
the favorable impact of Section 179D tax deductions, which were
$4.9 million, or $0.06 per share, Energy Services’ earnings during
the nine months ended September 30, 2018, were $7.3 million, or
$0.09 per share, compared to $4.9 million, or $0.06 per share in
2017. Energy Services has year-to-date revenues of $211.1 million
in 2018, compared to revenues of $193.2 million for the
year-to-date period in 2017.
At September 30, 2018, the backlog of signed contracts is $219
million, compared to $180 million at December 31, 2017. The
estimated sales funnel at September 30, 2018, totals nearly $370
million. The company's long-term view of the performance
contracting and sustainable infrastructure opportunities remains
strong with an expected continued national focus on energy
conservation and security, renewable energy, and sustainability and
as customer focus on new, efficient, clean sources of energy grows.
As it relates to the impact on results from Section 179D, on
Feb. 9, 2018, a one year extension of Section 179D was approved,
making available deductions for the 2017 tax year. That impact was
reflected in the first quarter of 2018, as noted above. Though not
assured and not reflected in long-term growth rates, efforts
continue to secure this benefit in the future.
Investment in ProLiance Holdings, LLC The
company has an investment in ProLiance Holdings, LLC (ProLiance).
Much of the ProLiance business was sold on June 18, 2013 when
ProLiance exited the natural gas marketing business through the
disposition of certain of the net assets of its energy marketing
business, ProLiance Energy, LLC. The company's remaining investment
in ProLiance relates primarily to an investment in LA Storage, LLC
(LA Storage). Consistent with its ownership percentage, the company
is allocated 61 percent of ProLiance’s profits and losses; however,
governance and voting rights remain at 50 percent for each member;
and therefore, the company accounts for its investment in ProLiance
using the equity method of accounting.
ProLiance Transportation and Storage, LLC (PT&S), a
subsidiary of ProLiance, and Sempra, through a joint venture, have
a 100 percent interest in a development project for salt-cavern
natural gas storage facilities known as LA Storage. PT&S is the
minority member with a 25 percent interest, which it accounts for
using the equity method. On June 27, 2018, Sempra announced a plan
to divest of certain natural gas storage assets and recorded a
resulting impairment charge related to the assets held for sale and
other storage assets, such as LA Storage. As a result of
Sempra's impairment of the LA Storage investment and the resulting
charge recorded at ProLiance, the company recorded a $17.7 million
charge to equity in (losses) of unconsolidated affiliates as of
June 30, 2018. The charge equates to $13.1 million after tax, or
$0.16 per share. As of September 30, 2018 the company’s remaining
investment in ProLiance is $5.1 million.
Use of Non-GAAP Performance Measures and Per Share
Measures
Results Excluding Reconciling ItemsThis earnings release
contains non-GAAP financial measures that exclude reconciling items
in 2018, involving merger-related costs and the equity investment
impairment charge.
Management uses net income and earnings per share (EPS),
excluding reconciling items activity, to evaluate its results.
Management believes analyzing underlying and ongoing business
trends is aided by the removal of these reconciling items and the
rationale for using such non-GAAP measures is that the Company
would not expect these items to be indicative of ongoing
operations. Management believes this presentation provides the best
representation of the overall results and certain components of the
financial statements for ongoing operations.
A material limitation associated with the use of these measures
is that measures excluding reconciling items does not include all
activity recognized in accordance with GAAP. Management compensates
for this limitation by prominently displaying a reconciliation of
these non-GAAP performance measures to their closest GAAP
performance measures. This display also provides financial
statement users the option of analyzing results as management does
or by analyzing GAAP results.
Contribution to Vectren's Basic EPS
Per share earnings contributions of the Utility Group,
Nonutility Group, and Corporate and Other are presented and are
non- GAAP measures. Such per share amounts are based on the
earnings contribution of each group included in the Company’s
consolidated results divided by the Company’s basic average shares
outstanding during the period. The earnings per share of the groups
do not represent a direct legal interest in the assets and
liabilities allocated to the groups; instead they represent a
direct equity interest in the Company's assets and liabilities as a
whole. These non-GAAP measures are used by management to evaluate
the performance of individual businesses. In addition, other items
giving rise to period over period variances, such as weather, may
be presented on an after tax and per share basis. These amounts are
calculated at a statutory tax rate divided by the Company’s basic
average shares outstanding during the period. Accordingly,
management believes these measures are useful to investors in
understanding each business’ contribution to consolidated earnings
per share and in analyzing consolidated period to period changes
and the potential for earnings per share contributions in future
periods. Per share amounts of the Utility Group and the Nonutility
Group are reconciled to the GAAP financial measure of basic EPS by
combining the GAAP earnings per share of Utility Group, Nonutility
Group, and Corporate and Other. The non-GAAP financial measures
disclosed by the Company should not be considered a substitute for,
or superior to, financial measures calculated in accordance with
GAAP, and the financial results calculated in accordance with
GAAP.
The following tables reconcile GAAP net income and basic EPS to
the non-GAAP measure in 2018.
| |
|
|
|
| |
|
|
Three Months Ended September 30, 2018 |
| (In millions, except EPS) |
|
GAAP Measure |
Merger-RelatedCosts |
Non-GAAPMeasure |
| Net Income
and EPS by Segment |
|
|
|
|
|
Consolidated |
|
|
|
|
| Net
Income |
|
$ |
50.4 |
|
$ |
8.8 |
$ |
59.2 |
|
| Basic EPS |
|
$ |
0.61 |
|
$ |
0.10 |
$ |
0.71 |
|
| |
|
|
|
|
|
| Corp &
Other |
|
|
|
|
| Net Income (Loss) |
|
$ |
(8.9 |
) |
$ |
8.8 |
$ |
(0.1 |
) |
| Basic EPS |
|
$ |
(0.11 |
) |
$ |
0.10 |
$ |
(0.01 |
) |
|
|
|
|
|
|
|
| |
|
|
|
|
|
| |
|
|
|
| |
|
|
Nine Months Ended September 30, 2018 |
| (In millions, except EPS) |
|
GAAP Measure |
Merger-RelatedCosts |
Equity InvestmentImpairment Charge |
Non-GAAPMeasure |
| Net Income
and EPS by Segment |
|
|
|
|
|
|
Consolidated |
|
|
|
|
|
| Net
Income |
|
$ |
136.1 |
|
$ |
20.2 |
$ |
13.1 |
$ |
169.4 |
|
| Basic EPS |
|
$ |
1.64 |
|
$ |
0.24 |
$ |
0.16 |
$ |
2.04 |
|
| |
|
|
|
|
|
|
| Nonutility
Group |
|
|
|
|
|
| Net Income |
|
$ |
24.3 |
|
$ |
- |
$ |
13.1 |
$ |
37.4 |
|
| Basic EPS |
|
$ |
0.29 |
|
$ |
- |
$ |
0.16 |
$ |
0.45 |
|
| |
|
|
|
|
|
|
| Corp &
Other |
|
|
|
|
|
| Net Income (Loss) |
|
$ |
(21.0 |
) |
$ |
20.2 |
$ |
- |
$ |
(0.8 |
) |
| Basic EPS |
|
$ |
(0.25 |
) |
$ |
0.24 |
$ |
- |
$ |
(0.01 |
) |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
Please SEE ATTACHED unaudited schedules for additional
financial information
Live Webcast on November 6, 2018; Financial slides
posted on website on November 5, 2018 Vectren’s financial
analyst call will be at 2:00 p.m. (EST), November 6, 2018, at which
time management will discuss third quarter 2018 financial results.
To participate in the call, analysts are asked to dial
1-844-825-9787 ten minutes prior to the start time and refer to the
“Vectren Corporation 2018 Third Quarter Earnings Call.” All
interested parties may listen to the live audio-only webcast
accompanied by a slide presentation, which will be available on
Vectren’s Investor Relations homepage, investors.vectren.com. A
replay of the webcast will be made available at the same location
approximately two hours following the conclusion of the analyst
call.
About VectrenVectren Corporation (NYSE: VVC) is
an energy holding company headquartered in Evansville, Ind.
Vectren’s energy delivery subsidiaries provide gas and/or
electricity to more than 1 million customers in adjoining service
territories that cover nearly two-thirds of Indiana and about 20
percent of Ohio, primarily in the west-central area. Vectren’s
nonutility subsidiaries and affiliates currently offer
energy-related products and services to customers throughout the
U.S. through Infrastructure Services and Energy Services. To learn
more about Vectren, visit www.vectren.com.
Forward-Looking Information
A “safe harbor” for forward-looking statements is provided by
the Private Securities Litigation Reform Act of 1995 (Reform Act of
1995). The Reform Act of 1995 was adopted to encourage such
forward-looking statements without the threat of litigation,
provided those statements are identified as forward-looking and are
accompanied by meaningful cautionary statements identifying
important factors that could cause the actual results to differ
materially from those projected in the statement. Certain matters
described in this release are forward-looking statements such as
earnings guidance and outlook by segment. Such statements are based
on management’s beliefs, as well as assumptions made by and
information currently available to management. When used in this
filing, the words “believe”, “anticipate”, “endeavor”, “estimate”,
“expect”, “objective”, “projection”, “forecast”, “goal”, “likely”,
and similar expressions are intended to identify forward-looking
statements. In addition to any assumptions and other factors
referred to specifically in connection with such forward-looking
statements, factors that could cause the company’s actual results
to differ materially from those contemplated in any forward-looking
statements include, among others, the following:
- Factors affecting utility operations such as unfavorable or
unusual weather conditions; catastrophic weather-related damage;
unusual maintenance or repairs; unanticipated changes to coal and
natural gas costs; unanticipated changes to gas transportation and
storage costs, or availability due to higher demand, shortages,
transportation problems or other developments; environmental or
pipeline incidents; transmission or distribution incidents;
unanticipated changes to electric energy supply costs, or
availability due to demand, shortages, transmission problems or
other developments; or electric transmission or gas pipeline system
constraints.
- New or proposed legislation, litigation and government
regulation or other actions, such as changes in, rescission of or
additions to tax laws or rates, pipeline safety regulation and
environmental laws and regulations, including laws governing air
emissions, carbon, waste water discharges and the handling and
disposal of coal combustion residuals that could impact the
continued operation, and/or cost recovery of generation plant costs
and related assets. Compliance with respect to these regulations
could substantially change the operation and nature of the
company’s utility operations.
- Catastrophic events such as fires, earthquakes, explosions,
floods, ice storms, tornadoes, terrorist acts, physical attacks, or
other similar occurrences could adversely affect the company's
facilities, operations, financial condition, results of operations,
and reputation.
- Cyber attacks or similar occurrences could adversely affect the
company's facilities, operations, corporate reputation, financial
condition, and results of operations.
- Increased competition in the energy industry, including the
effects of industry restructuring, unbundling, and other sources of
energy.
- Approval and timely recovery of new capital investments related
to the electric generation transition plan, including timely
approval to build and own generation, ability to meet capacity
requirements, ability to procure resources needed to build new
generation at a reasonable cost, ability to appropriately estimate
costs of new generation, the effects of construction delays and
cost overruns, ability to fully recover the investments made in
retiring portions of the current generation fleet, scarcity of
resources and labor, and workforce retention, development and
training.
- Regulatory factors such as uncertainty surrounding the
composition of state regulatory commissions, adverse regulatory
changes, unanticipated changes in rate-setting policies or
procedures, recovery of investments and costs made under
regulation, interpretation of regulatory-related legislation by the
IURC and/or PUCO and appellate courts that review decisions issued
by the agencies, and the frequency and timing of rate
increases.
- Financial, regulatory or accounting principles or policies
imposed by the Financial Accounting Standards Board; the Securities
and Exchange Commission; the Federal Energy Regulatory Commission;
state public utility commissions; state entities which regulate
electric and natural gas transmission and distribution, natural gas
gathering and processing, electric power supply; and similar
entities with regulatory oversight.
- Economic conditions including the effects of inflation,
commodity prices, and monetary fluctuations.
- Economic conditions, including increased potential for lower
levels of economic activity; uncertainty regarding energy prices
and the capital and commodity markets; volatile changes in the
demand for natural gas, electricity, and other nonutility products
and services; economic impacts of changes in business strategy on
both gas and electric large customers; lower residential and
commercial customer counts; variance from normal population growth
and changes in customer mix; higher operating expenses; and
reductions in the value of investments.
- Volatile natural gas and coal commodity prices and the
potential impact on customer consumption, uncollectible accounts
expense, unaccounted for gas and interest expense.
- Volatile oil prices and the potential impact on customer
consumption and price of other fuel commodities.
- Direct or indirect effects on the company’s business, financial
condition, liquidity and results of operations resulting from
changes in credit ratings, changes in interest rates, and/or
changes in market perceptions of the utility industry and other
energy-related industries.
- The performance of projects undertaken by the company’s
nonutility businesses and the success of efforts to realize value
from, invest in and develop new opportunities, including but not
limited to, the company’s Infrastructure Services and Energy
Services businesses.
- Factors affecting Infrastructure Services, including the level
of success in bidding contracts; fluctuations in volume and mix of
contracted work; mix of projects received under blanket contracts;
unanticipated cost increases in completion of the contracted work;
funding requirements associated with multiemployer pension and
benefit plans; changes in legislation and regulations impacting the
industries in which the customers served operate; the effects of
weather; failure to properly estimate the cost to construct
projects; the ability to attract and retain qualified employees in
a fast growing market where skills are critical; cancellation
and/or reductions in the scope of projects by customers; credit
worthiness of customers; ability to obtain materials and equipment
required to perform services; and changing market conditions,
including changes in the market prices of oil and natural gas that
would affect the demand for infrastructure construction.
- Factors affecting Energy Services, including unanticipated cost
increases in completion of the contracted work; changes in
legislation and regulations impacting the industries in which the
customers served operate; changes in economic influences impacting
customers served; failure to properly estimate the cost to
construct projects; risks associated with projects owned or
operated; failure to appropriately design, construct, or operate
projects; the ability to attract and retain qualified employees;
cancellation and/or reductions in the scope of projects by
customers; changes in the timing of being awarded projects; credit
worthiness of customers; lower energy prices negatively impacting
the economics of performance contracting business; and changing
market conditions.
- Employee or contractor workforce factors including changes in
key executives, collective bargaining agreements with union
employees, aging workforce issues, work stoppages, or pandemic
illness.
- Risks associated with material business transactions such as
acquisitions and divestitures, including, without limitation, legal
and regulatory delays; the related time and costs of implementing
such transactions; integrating operations as part of these
transactions; and possible failures to achieve expected gains,
revenue growth and/or expense savings from such transactions.
- Costs, fines, penalties and other effects of legal and
administrative proceedings, settlements, investigations, claims,
including, but not limited to, such matters involving compliance
with federal and state laws and interpretations of these laws.
The company undertakes no obligation to publicly update or
revise any forward-looking statements, whether as a result of
changes in actual results, changes in assumptions, or other factors
affecting such statements.
| VECTREN CORPORATION |
| AND SUBSIDIARY COMPANIES |
| CONSOLIDATED STATEMENTS OF INCOME |
| (Unaudited - in millions, except per share
amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
September 30, |
|
September 30, |
| |
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
| OPERATING
REVENUES: |
|
|
|
|
|
|
|
|
| Gas
utility |
|
$ |
122.1 |
|
|
$ |
120.4 |
|
|
$ |
600.7 |
|
|
$ |
557.2 |
|
| Electric
utility |
|
|
160.0 |
|
|
|
159.2 |
|
|
|
437.4 |
|
|
|
433.0 |
|
|
Nonutility |
|
|
382.9 |
|
|
|
411.6 |
|
|
|
929.8 |
|
|
|
956.1 |
|
| Total
operating revenues |
|
|
665.0 |
|
|
|
691.2 |
|
|
|
1,967.9 |
|
|
|
1,946.3 |
|
|
|
|
|
|
|
|
|
|
|
| OPERATING
EXPENSES: |
|
|
|
|
|
|
|
|
| Cost of
gas sold |
|
|
24.5 |
|
|
|
23.9 |
|
|
|
211.4 |
|
|
|
174.0 |
|
| Cost of
fuel & purchased power |
|
|
47.5 |
|
|
|
44.1 |
|
|
|
137.7 |
|
|
|
128.8 |
|
| Cost of
nonutility revenues |
|
|
121.4 |
|
|
|
136.2 |
|
|
|
299.8 |
|
|
|
318.4 |
|
| Other
operating |
|
|
296.2 |
|
|
|
296.7 |
|
|
|
809.3 |
|
|
|
794.2 |
|
|
Merger-related |
|
|
11.1 |
|
|
|
— |
|
|
|
26.4 |
|
|
|
— |
|
|
Depreciation & amortization |
|
|
73.9 |
|
|
|
69.5 |
|
|
|
217.7 |
|
|
|
205.7 |
|
| Taxes
other than income taxes |
|
|
14.1 |
|
|
|
13.5 |
|
|
|
49.6 |
|
|
|
42.5 |
|
| Total
operating expenses |
|
|
588.7 |
|
|
|
583.9 |
|
|
|
1,751.9 |
|
|
|
1,663.6 |
|
|
|
|
|
|
|
|
|
|
|
| OPERATING INCOME |
|
|
76.3 |
|
|
|
107.3 |
|
|
|
216.0 |
|
|
|
282.7 |
|
|
|
|
|
|
|
|
|
|
|
| OTHER INCOME: |
|
|
|
|
|
|
|
|
| Equity in
(losses) of unconsolidated affiliates |
|
|
(0.3 |
) |
|
|
(0.2 |
) |
|
|
(18.3 |
) |
|
|
(1.0 |
) |
| Other
income - net |
|
|
9.6 |
|
|
|
9.1 |
|
|
|
28.7 |
|
|
|
24.1 |
|
| Total
other income |
|
|
9.3 |
|
|
|
8.9 |
|
|
|
10.4 |
|
|
|
23.1 |
|
|
|
|
|
|
|
|
|
|
|
| INTEREST EXPENSE |
|
|
24.6 |
|
|
|
22.2 |
|
|
|
72.1 |
|
|
|
64.9 |
|
|
|
|
|
|
|
|
|
|
|
| INCOME BEFORE INCOME
TAXES |
|
|
61.0 |
|
|
|
94.0 |
|
|
|
154.3 |
|
|
|
240.9 |
|
|
|
|
|
|
|
|
|
|
|
| INCOME TAXES |
|
|
10.6 |
|
|
|
32.1 |
|
|
|
18.2 |
|
|
|
86.1 |
|
|
|
|
|
|
|
|
|
|
|
| NET INCOME |
|
$ |
50.4 |
|
|
$ |
61.9 |
|
|
$ |
136.1 |
|
|
$ |
154.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| WEIGHTED AVERAGE AND
DILUTED COMMON SHARES |
|
|
|
|
|
|
|
|
| OUTSTANDING |
|
|
83.1 |
|
|
|
83.0 |
|
|
|
83.1 |
|
|
|
83.0 |
|
|
|
|
|
|
|
|
|
|
|
| BASIC AND DILUTED
EARNINGS PER SHARE OF COMMON STOCK |
|
$ |
0.61 |
|
|
$ |
0.75 |
|
|
$ |
1.64 |
|
|
$ |
1.87 |
|
|
|
|
|
|
|
|
|
|
|
| VECTREN UTILITY HOLDINGS |
| AND SUBSIDIARY COMPANIES |
| CONSOLIDATED STATEMENTS OF INCOME |
| (Unaudited - in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
September 30, |
|
September 30, |
| |
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
| OPERATING
REVENUES: |
|
|
|
|
|
|
|
|
| Gas
utility |
|
$ |
122.1 |
|
$ |
120.4 |
|
$ |
600.7 |
|
$ |
557.2 |
| Electric
utility |
|
|
160.0 |
|
|
159.2 |
|
|
437.4 |
|
|
433.0 |
|
Other |
|
|
0.1 |
|
|
0.1 |
|
|
0.2 |
|
|
0.2 |
| Total
operating revenues |
|
|
282.2 |
|
|
279.7 |
|
|
1,038.3 |
|
|
990.4 |
|
|
|
|
|
|
|
|
|
|
| OPERATING
EXPENSES: |
|
|
|
|
|
|
|
|
| Cost of
gas sold |
|
|
24.5 |
|
|
23.9 |
|
|
211.4 |
|
|
174.0 |
| Cost of
fuel & purchased power |
|
|
47.5 |
|
|
44.1 |
|
|
137.7 |
|
|
128.8 |
| Other
operating |
|
|
83.5 |
|
|
82.0 |
|
|
265.6 |
|
|
250.4 |
|
Depreciation & amortization |
|
|
63.4 |
|
|
59.0 |
|
|
186.3 |
|
|
174.3 |
| Taxes
other than income taxes |
|
|
13.5 |
|
|
12.6 |
|
|
47.5 |
|
|
40.1 |
| Total
operating expenses |
|
|
232.4 |
|
|
221.6 |
|
|
848.5 |
|
|
767.6 |
|
|
|
|
|
|
|
|
|
|
| OPERATING INCOME |
|
|
49.8 |
|
|
58.1 |
|
|
189.8 |
|
|
222.8 |
|
|
|
|
|
|
|
|
|
|
| OTHER INCOME - NET |
|
|
9.2 |
|
|
8.1 |
|
|
27.9 |
|
|
21.4 |
|
|
|
|
|
|
|
|
|
|
| INTEREST EXPENSE |
|
|
20.3 |
|
|
18.3 |
|
|
60.3 |
|
|
53.5 |
|
|
|
|
|
|
|
|
|
|
| INCOME BEFORE INCOME
TAXES |
|
|
38.7 |
|
|
47.9 |
|
|
157.4 |
|
|
190.7 |
|
|
|
|
|
|
|
|
|
|
| INCOME TAXES |
|
|
5.7 |
|
|
17.1 |
|
|
24.6 |
|
|
68.5 |
|
|
|
|
|
|
|
|
|
|
| NET INCOME |
|
$ |
33.0 |
|
$ |
30.8 |
|
$ |
132.8 |
|
$ |
122.2 |
|
|
|
|
|
|
|
|
|
|
| VECTREN CORPORATION |
| AND SUBSIDIARY COMPANIES |
| CONSOLIDATED BALANCE SHEETS |
| (Unaudited - in millions) |
|
|
|
|
|
|
|
|
|
September 30, |
|
December 31, |
| |
|
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
|
| ASSETS |
|
|
|
|
| Current Assets |
|
|
|
|
| Cash
& cash equivalents |
|
$ |
28.8 |
|
|
$ |
16.6 |
|
| Accounts
receivable - less reserves of $4.1 & |
|
|
|
|
| $5.1,
respectively |
|
|
230.5 |
|
|
|
262.9 |
|
| Accrued
unbilled revenues |
|
|
156.2 |
|
|
|
207.1 |
|
|
Inventories |
|
|
119.4 |
|
|
|
126.6 |
|
|
Recoverable fuel & natural gas costs |
|
|
7.8 |
|
|
|
19.2 |
|
|
Prepayments & other current assets |
|
|
53.9 |
|
|
|
47.0 |
|
| Total
current assets |
|
|
596.6 |
|
|
|
679.4 |
|
|
|
|
|
|
|
| Utility Plant |
|
|
|
|
| Original
cost |
|
|
7,394.5 |
|
|
|
7,015.4 |
|
|
Less: accumulated depreciation & amortization |
|
|
2,850.9 |
|
|
|
2,738.7 |
|
| Net
utility plant |
|
|
4,543.6 |
|
|
|
4,276.7 |
|
|
|
|
|
|
|
| Investments in
unconsolidated affiliates |
|
|
1.5 |
|
|
|
19.7 |
|
| Other utility &
corporate investments |
|
|
48.6 |
|
|
|
43.7 |
|
| Other nonutility
investments |
|
|
9.6 |
|
|
|
9.6 |
|
| Nonutility plant -
net |
|
|
483.0 |
|
|
|
464.1 |
|
| Goodwill |
|
|
293.5 |
|
|
|
293.5 |
|
| Regulatory assets |
|
|
469.5 |
|
|
|
416.8 |
|
| Other assets |
|
|
34.6 |
|
|
|
35.8 |
|
| TOTAL
ASSETS |
|
$ |
6,480.5 |
|
|
$ |
6,239.3 |
|
|
|
|
|
|
|
| LIABILITIES &
SHAREHOLDERS' EQUITY |
|
|
|
|
| Current
Liabilities |
|
|
|
|
| Accounts
payable |
|
$ |
232.1 |
|
|
$ |
366.2 |
|
| Accrued
liabilities |
|
|
246.1 |
|
|
|
222.3 |
|
|
Short-term borrowings |
|
|
325.3 |
|
|
|
249.5 |
|
| Current
maturities of long-term debt |
|
|
60.0 |
|
|
|
100.0 |
|
| Total
current liabilities |
|
|
863.5 |
|
|
|
938.0 |
|
|
|
|
|
|
|
| Long-term Debt - Net of
Current Maturities |
|
|
1,978.9 |
|
|
|
1,738.7 |
|
|
|
|
|
|
|
| Deferred Credits &
Other Liabilities |
|
|
|
|
| Deferred
income taxes |
|
|
518.4 |
|
|
|
491.3 |
|
|
Regulatory liabilities |
|
|
938.8 |
|
|
|
937.2 |
|
| Deferred
credits & other liabilities |
|
|
306.1 |
|
|
|
284.8 |
|
| Total
deferred credits & other liabilities |
|
|
1,763.3 |
|
|
|
1,713.3 |
|
|
|
|
|
|
|
| Common Shareholders'
Equity |
|
|
|
|
| Common
stock (no par value) – issued & outstanding |
|
|
|
|
| 83.1
& 83.0, respectively |
|
|
739.5 |
|
|
|
736.9 |
|
| Retained
earnings |
|
|
1,136.6 |
|
|
|
1,113.7 |
|
|
Accumulated other comprehensive (loss) |
|
|
(1.3 |
) |
|
|
(1.3 |
) |
| Total
common shareholders' equity |
|
|
1,874.8 |
|
|
|
1,849.3 |
|
| TOTAL
LIABILITIES & SHAREHOLDERS' EQUITY |
|
$ |
6,480.5 |
|
|
$ |
6,239.3 |
|
|
|
|
|
|
|
| VECTREN CORPORATION |
| AND SUBSIDIARY COMPANIES |
| CONSOLIDATED STATEMENTS OF CASH FLOWS |
| (Millions - Unaudited) |
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
|
|
September 30, |
| |
|
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
|
| CASH FLOWS FROM
OPERATING ACTIVITIES: |
|
|
|
|
| Net
income |
|
$ |
136.1 |
|
|
$ |
154.8 |
|
|
Adjustments to reconcile net income to cash from operating
activities: |
|
|
|
|
|
Depreciation & amortization |
|
|
217.7 |
|
|
|
205.7 |
|
| Deferred
income taxes & investment tax credits |
|
|
12.6 |
|
|
|
76.6 |
|
| Provision
for uncollectible accounts |
|
|
5.3 |
|
|
|
4.0 |
|
| Expense
portion of pension & postretirement benefit cost |
|
|
3.3 |
|
|
|
4.4 |
|
| Other
non-cash items - net |
|
|
18.3 |
|
|
|
4.1 |
|
| Changes
in working capital accounts: |
|
|
|
|
| Accounts
receivable & accrued unbilled revenues |
|
|
78.0 |
|
|
|
3.6 |
|
|
Inventories |
|
|
7.2 |
|
|
|
(1.1 |
) |
|
Recoverable/refundable fuel & natural gas costs |
|
|
11.4 |
|
|
|
— |
|
|
Prepayments & other current assets |
|
|
(6.7 |
) |
|
|
(3.1 |
) |
| Accounts
payable |
|
|
(144.0 |
) |
|
|
(54.3 |
) |
| Accrued
liabilities |
|
|
24.7 |
|
|
|
4.9 |
|
|
Unconsolidated affiliate dividends |
|
|
— |
|
|
|
0.1 |
|
| Employer
contributions to pension & postretirement plans |
|
|
(6.9 |
) |
|
|
(3.5 |
) |
| Changes
in noncurrent assets |
|
|
(29.0 |
) |
|
|
(28.0 |
) |
| Changes
in noncurrent liabilities |
|
|
(13.5 |
) |
|
|
(7.7 |
) |
| Net cash
from operating activities |
|
|
314.5 |
|
|
|
360.5 |
|
|
|
|
|
|
|
| CASH FLOWS FROM
FINANCING ACTIVITIES: |
|
|
|
|
| Proceeds
from: |
|
|
|
|
| Long-term
debt, net of issuance costs |
|
|
299.3 |
|
|
|
99.2 |
|
| Dividend
reinvestment plan & other common stock issuances |
|
|
1.7 |
|
|
|
4.6 |
|
|
Requirements for: |
|
|
|
|
|
Dividends on common stock |
|
|
(112.1 |
) |
|
|
(104.5 |
) |
|
Retirement of long-term debt |
|
|
(100.0 |
) |
|
|
— |
|
| Net
change in short-term borrowings |
|
|
75.8 |
|
|
|
31.5 |
|
| Net cash
from financing activities |
|
|
164.7 |
|
|
|
30.8 |
|
|
|
|
|
|
|
| CASH FLOWS FROM
INVESTING ACTIVITIES: |
|
|
|
|
| Proceeds
from sale of assets and other collections |
|
|
5.7 |
|
|
|
4.8 |
|
|
Requirements for: |
|
|
|
|
| Capital
expenditures, excluding AFUDC equity |
|
|
(472.7 |
) |
|
|
(453.5 |
) |
| Other
costs |
|
|
— |
|
|
|
(3.4 |
) |
| Changes
in restricted cash |
|
|
— |
|
|
|
0.9 |
|
| Net cash
from investing activities |
|
|
(467.0 |
) |
|
|
(451.2 |
) |
|
|
|
|
|
|
| Net change in cash
& cash equivalents |
|
|
12.2 |
|
|
|
(59.9 |
) |
| Cash & cash
equivalents at beginning of period |
|
|
16.6 |
|
|
|
68.6 |
|
| Cash & cash
equivalents at end of period |
|
$ |
28.8 |
|
|
$ |
8.7 |
|
| |
| VECTREN CORPORATION |
| AND SUBSIDIARY COMPANIES |
| HIGHLIGHTS |
| (Unaudited - in millions, except per share
amounts) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, |
|
September 30, |
| |
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
| EARNINGS: |
|
|
|
|
|
|
|
| Utility Group |
|
|
|
|
|
|
|
| Gas
Utility Services |
$ |
(0.6 |
) |
|
$ |
1.0 |
|
|
$ |
60.7 |
|
|
$ |
55.8 |
|
| Electric
Utility Services |
|
30.6 |
|
|
|
27.2 |
|
|
|
62.4 |
|
|
|
56.8 |
|
| Other
Operations |
|
3.0 |
|
|
|
2.6 |
|
|
|
9.7 |
|
|
|
9.6 |
|
| Total Utility
Group |
|
33.0 |
|
|
|
30.8 |
|
|
|
132.8 |
|
|
|
122.2 |
|
|
|
|
|
|
|
|
|
|
| Nonutility Group |
|
|
|
|
|
|
|
|
Infrastructure Services |
|
22.1 |
|
|
|
26.6 |
|
|
|
26.0 |
|
|
|
28.6 |
|
| Energy
Services |
|
4.5 |
|
|
|
4.9 |
|
|
|
12.2 |
|
|
|
4.9 |
|
| Other
Businesses, excluding Equity Investment Impairment Charge -
ProLiance |
|
(0.3 |
) |
|
|
(0.2 |
) |
|
|
(0.8 |
) |
|
|
(0.5 |
) |
| Nonutility Group,
excluding reconciling items |
|
26.3 |
|
|
|
31.3 |
|
|
|
37.4 |
|
|
|
33.0 |
|
|
|
|
|
|
|
|
|
|
| Corporate and Other,
excluding Merger-Related Costs |
|
(0.1 |
) |
|
|
(0.2 |
) |
|
|
(0.8 |
) |
|
|
(0.4 |
) |
|
|
|
|
|
|
|
|
|
| Vectren Consolidated,
excluding reconciling items |
$ |
59.2 |
|
|
$ |
61.9 |
|
|
$ |
169.4 |
|
|
$ |
154.8 |
|
|
|
|
|
|
|
|
|
|
| Reconciling Items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other
Businesses - Equity Investment Impairment Charge - ProLiance |
|
— |
|
|
|
— |
|
|
|
(13.1 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
| Corporate
and Other - Merger-Related Costs |
|
(8.8 |
) |
|
|
— |
|
|
|
(20.2 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
| Vectren
Consolidated |
$ |
50.4 |
|
|
$ |
61.9 |
|
|
$ |
136.1 |
|
|
$ |
154.8 |
|
|
|
|
|
|
|
|
|
|
| EARNINGS PER
SHARE: |
|
|
|
|
|
|
|
| Utility Group |
$ |
0.40 |
|
|
$ |
0.37 |
|
|
$ |
1.60 |
|
|
$ |
1.47 |
|
| Nonutility Group,
excluding reconciling items |
|
0.32 |
|
|
|
0.38 |
|
|
|
0.45 |
|
|
|
0.40 |
|
| Corporate and Other,
excluding reconciling items |
|
(0.01 |
) |
|
|
— |
|
|
|
(0.01 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
| EPS, excluding
reconciling items |
$ |
0.71 |
|
|
$ |
0.75 |
|
|
$ |
2.04 |
|
|
$ |
1.87 |
|
|
|
|
|
|
|
|
|
|
| Reconciling Items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other
Businesses - Equity Investment Impairment Charge - ProLiance |
|
— |
|
|
|
— |
|
|
|
(0.16 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
| Corporate
and Other - Merger-Related Costs |
|
(0.10 |
) |
|
|
— |
|
|
|
(0.24 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
| Reported EPS |
$ |
0.61 |
|
|
$ |
0.75 |
|
|
$ |
1.64 |
|
|
$ |
1.87 |
|
| |
|
|
|
|
| VECTREN CORPORATION |
| AND SUBSIDIARY COMPANIES |
| SELECTED GAS DISTRIBUTION |
| OPERATING STATISTICS |
| (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
September 30, |
|
September 30, |
| |
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
| GAS UTILITY
(Millions): |
|
|
|
|
|
|
|
|
|
Residential Margin |
|
$ |
60.2 |
|
|
$ |
59.6 |
|
|
$ |
228.8 |
|
|
$ |
231.4 |
|
|
Commercial Margin |
|
|
12.6 |
|
|
|
12.8 |
|
|
|
61.4 |
|
|
|
61.7 |
|
|
Industrial Margin |
|
|
14.8 |
|
|
|
15.9 |
|
|
|
52.6 |
|
|
|
53.1 |
|
| Other
Margin |
|
|
1.4 |
|
|
|
1.5 |
|
|
|
6.8 |
|
|
|
6.4 |
|
|
Regulatory Expense Recovery Mechanisms |
|
|
8.6 |
|
|
|
6.7 |
|
|
|
39.7 |
|
|
|
30.6 |
|
| Total Gas Utility
Margin |
|
|
97.6 |
|
|
|
96.5 |
|
|
|
389.3 |
|
|
|
383.2 |
|
| Cost of
Gas Sold |
|
|
24.5 |
|
|
|
23.9 |
|
|
|
211.4 |
|
|
|
174.0 |
|
| Total Gas Utility
Revenue |
|
$ |
122.1 |
|
|
$ |
120.4 |
|
|
$ |
600.7 |
|
|
$ |
557.2 |
|
|
|
|
|
|
|
|
|
|
|
| GAS SOLD &
TRANSPORTED (MMDth): |
|
|
|
|
|
|
|
|
|
Residential |
|
|
3.3 |
|
|
|
3.6 |
|
|
|
52.0 |
|
|
|
40.4 |
|
|
Commercial |
|
|
2.6 |
|
|
|
2.4 |
|
|
|
24.6 |
|
|
|
18.9 |
|
|
Industrial |
|
|
31.1 |
|
|
|
25.4 |
|
|
|
109.8 |
|
|
|
87.2 |
|
|
|
|
|
37.0 |
|
|
|
31.4 |
|
|
|
186.4 |
|
|
|
146.5 |
|
|
|
|
|
|
|
|
|
|
|
| AVERAGE GAS
CUSTOMERS |
|
|
|
|
|
|
|
|
|
Residential |
|
|
933,310 |
|
|
|
925,396 |
|
|
|
942,200 |
|
|
|
933,852 |
|
|
Commercial |
|
|
85,168 |
|
|
|
84,686 |
|
|
|
85,983 |
|
|
|
85,451 |
|
|
Industrial |
|
|
1,754 |
|
|
|
1,743 |
|
|
|
1,753 |
|
|
|
1,742 |
|
|
|
|
|
1,020,232 |
|
|
|
1,011,825 |
|
|
|
1,029,936 |
|
|
|
1,021,045 |
|
|
|
|
|
|
|
|
|
|
|
| WEATHER AS A
PERCENT OF NORMAL (ANNUALIZED): |
|
|
|
|
|
|
|
|
| Heating
Degree Days (Ohio) |
|
|
|
|
|
|
102 |
% |
|
|
89 |
% |
| Heating
Degree Days (Indiana) |
|
|
|
|
|
|
99 |
% |
|
|
80 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| VECTREN CORPORATION |
| AND SUBSIDIARY COMPANIES |
| SELECTED ELECTRIC |
| OPERATING STATISTICS |
| (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
September 30, |
|
September 30, |
|
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
| ELECTRIC UTILITY
(Millions): |
|
|
|
|
|
|
|
|
|
Residential Margin |
|
$ |
46.2 |
|
|
$ |
46.7 |
|
|
$ |
117.4 |
|
|
$ |
116.2 |
|
|
Commercial Margin |
|
|
27.4 |
|
|
|
29.7 |
|
|
|
75.2 |
|
|
|
80.8 |
|
|
Industrial Margin |
|
|
25.0 |
|
|
|
26.4 |
|
|
|
69.6 |
|
|
|
73.2 |
|
| Other
Margin |
|
|
0.7 |
|
|
|
0.9 |
|
|
|
1.9 |
|
|
|
2.8 |
|
|
Regulatory Expense Recovery Mechanisms |
|
|
4.9 |
|
|
|
3.3 |
|
|
|
13.4 |
|
|
|
8.1 |
|
| Wholesale
and Transmission |
|
|
8.3 |
|
|
|
8.1 |
|
|
|
22.2 |
|
|
|
23.1 |
|
| Total Electric Utility
Margin |
|
|
112.5 |
|
|
|
115.1 |
|
|
|
299.7 |
|
|
|
304.2 |
|
| Cost of
Fuel & Purchased Power |
|
|
47.5 |
|
|
|
44.1 |
|
|
|
137.7 |
|
|
|
128.8 |
|
| Total Electric Utility
Revenue |
|
$ |
160.0 |
|
|
$ |
159.2 |
|
|
$ |
437.4 |
|
|
$ |
433.0 |
|
|
|
|
|
|
|
|
|
|
|
| ELECTRICITY SOLD
(GWh): |
|
|
|
|
|
|
|
|
|
Residential |
|
|
451.1 |
|
|
|
429.0 |
|
|
|
1,176.0 |
|
|
|
1,066.3 |
|
|
Commercial |
|
|
358.6 |
|
|
|
367.5 |
|
|
|
972.3 |
|
|
|
976.5 |
|
|
Industrial |
|
|
613.6 |
|
|
|
587.8 |
|
|
|
1,668.6 |
|
|
|
1,600.7 |
|
| Other
Sales - Street Lighting |
|
|
5.1 |
|
|
|
5.1 |
|
|
|
16.0 |
|
|
|
16.0 |
|
| Total
Retail |
|
|
1,428.4 |
|
|
|
1,389.4 |
|
|
|
3,832.9 |
|
|
|
3,659.5 |
|
|
Wholesale |
|
|
121.9 |
|
|
|
56.7 |
|
|
|
468.6 |
|
|
|
295.9 |
|
|
|
|
|
1,550.3 |
|
|
|
1,446.1 |
|
|
|
4,301.5 |
|
|
|
3,955.4 |
|
|
|
|
|
|
|
|
|
|
|
| AVERAGE ELECTRIC
CUSTOMERS |
|
|
|
|
|
|
|
|
|
Residential |
|
|
127,459 |
|
|
|
126,467 |
|
|
|
127,296 |
|
|
|
126,338 |
|
|
Commercial |
|
|
18,705 |
|
|
|
18,679 |
|
|
|
18,672 |
|
|
|
18,639 |
|
|
Industrial |
|
|
115 |
|
|
|
111 |
|
|
|
115 |
|
|
|
112 |
|
|
Other |
|
|
40 |
|
|
|
40 |
|
|
|
40 |
|
|
|
40 |
|
|
|
|
|
146,319 |
|
|
|
145,297 |
|
|
|
146,123 |
|
|
|
145,129 |
|
|
|
|
|
|
|
|
|
|
|
| WEATHER AS A
PERCENT OF NORMAL (ANNUALIZED): |
|
|
|
|
|
|
|
|
| Cooling
Degree Days (Indiana) |
|
|
111 |
% |
|
|
100 |
% |
|
|
130 |
% |
|
|
108 |
% |
| Heating
Degree Days (Indiana) |
|
|
|
|
|
|
99 |
% |
|
|
80 |
% |
|
|
|
|
|
|
|
|
|
|
Investor Contact
Dave Parker, (812) 491-4135, d.parker@vectren.comMedia
Contact
Natalie
Hedde, (812) 491-5105, nhedde@vectren.com
Vectren (NYSE:VVC)
과거 데이터 주식 차트
부터 11월(11) 2024 으로 12월(12) 2024
Vectren (NYSE:VVC)
과거 데이터 주식 차트
부터 12월(12) 2023 으로 12월(12) 2024
