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EQUITABLE RESOURCES, INC., AND SUBSIDIARIES ISSUE FINANCIAL REVIEW

EQUITABLE RESOURCES, INC., AND SUBSIDIARIES ISSUE FINANCIAL REVIEW
 PITTSBURGH, Nov. 4 /PRNewswire/ -- Equitable Resources, Inc., (NYSE: EQT) today reported consolidated net income for the 12 months ended Sept. 30, 1991, of $73.6 million, or $3.53 per share, compared with $49.3 million, or $2.35 per share, for the 12 months ended Sept. 30, 1990.
 The 1991 period includes $18.8 million of income from settlements approved by the FERC for the recovery of higher wellhead prices denied the company for natural gas produced in prior years. Increased earnings of $5.5 million, before the pricing settlements, were due primarily to a general rate increase for Pennsylvania retail utility customers effective November 1990 and a general rate increase for interstate pipeline service effective July 1990.
 Net income for the nine months ended Sept. 30, 1991, was $43.9 million, or $2.11 per share, compared with $29.3 million, or $1.40 per share, for the nine months ended Sept. 30, 1990. Earnings for the two periods were about the same excluding the pricing settlement which increased 1991 income by $14.9 million.
 Net income for the quarter ended Sept. 30, 1991, was $16.6 million, or $.80 per share, compared with a loss of $1.7 million, or $.08 per share, for the third quarter of 1990. Earnings increased $3.4 million, before the effect of the pricing settlement, due to a credit to income from settlement of a general rate increase by a pipeline subsidiary.
 EQUITABLE RESOURCES, INC., AND SUBSIDIARIES
 STATEMENTS OF CONSOLIDATED INCOME (UNAUDITED)
 (Thousands Except Per Share Amounts)
 3 Months Ended 9 Months Ended 12 Months Ended
 September 30, September 30, September 30,
 1991 1990 1991 1990 1991 1990
 OPRTNG REVNUS $115,200 $107,165 $460,887 $439,251 $680,852 $628,020
 OPRTNG EXPNSS 92,123 102,851 395,082 390,366 578,000 552,400
 OPRTNG INCME 23,077 4,314 65,805 48,885 102,852 75,620
 OTHER INCOME 306 800 (180) 737 73 1,350
 INTRST CHRGS 6,724 6,806 21,698 20,336 29,335 27,660
 NET INCOME
 (LOSS) $ 16,659 $(1,692) $43,927 $29,286 $73,590 $49,310
 COMMON SHARES
 OUTSTANDING
 -AVERAGE 20,811 20,841 20,825 20,931 20,832 20,939
 EARNINGS (LOSS)
 PER SHARE $.80 $(.08) $2.11 $1.40 $3.53 $2.35
 Notes:
 (A) Due to the seasonal nature of the business, the interim statements for the three-month and nine-month periods are not indicative of results for a full year.
 (B) In 1989 the FERC approved direct billing by Kentucky West Virginia Gas Company to recover the higher NGPA prices denied on natural gas production between 1978 and 1983. During 1990, settlement agreements totaling $125.5 million were reached with all customers and the agreements were filed with the FERC. All have been approved except the settlement with Columbia Gas Transmission Company for $25.2 million as explained below. In addition, the recovery of $85 million of the $89 million settlement with the Equitable Gas division was subject to Pennsylvania PUC review, also discussed below. While the settlements were individually negotiated and contain differing terms, overall in 1990, the FERC approved settlements providing for the collection of approximately $100.3 million over periods ranging from four to ten years. The agreements that were fully approved were recorded at present value using a discount rate of 9 percent which increased net income in the third and fourth quarters of 1990 by a total of $5.3 million, or $.25 per share.
 The settlement with Columbia Gas Transmission was rejected by the FERC on Feb. 27, 1991. In its order the FERC upheld the legal position of the company with respect to its right to collect the higher NGPA prices. Its rejection of the agreement centered on Columbia's ability to pass the increased prices on to its customers. In view of the FERC rejection and Columbia's recent filing for reorganization under Chapter 11 of the Bankruptcy Code, the recovery of NGPA settlement revenues from Columbia remains uncertain.
 In September 1991, the Equitable Gas division received approval of the Pennsylvania PUC to recover $25 million of increased gas costs relating to the FERC settlement, including $4.9 million of additional carrying charges. As a result, income of approximately $14.9 million, or $.72 per share, was recognized in September 1991. The balance of $65 million will be included in future gas cost filings over the ensuing nine years.
 (C) In July 1991, the FERC approved a settlement of the 1989 general rate case filed by Equitrans, a pipeline subsidiary. The new rates had been in effect since July 1, 1990, subject to refund, and the increased revenues were reserved pending FERC approval. The effect of the settlement, after reduction of provisions for refunds, was to increase 1991 net income by approximately $5.2 million, or $.25 per share.
 This information is not given in connection with any sale or offer for sale or offer to buy any security.
 /delval/
 -0- 11/4/91
 /CONTACT: Joseph L. Giebel, vice president accounting and administration of Equitable Resources, 412-553-5802/
 (EQT) CO: Equitable Resources, Inc. ST: Pennsylvania IN: OIL UTI SU: ERN DM -- PG017 -- 0826 11/04/91 15:20 EST
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Copyright 1991 Gale, Cengage Learning. All rights reserved.

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Date:Nov 4, 1991
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