FINANCIAL STATEMENTS CONNECTICUT NATURAL GAS CORPORATION (UNAUDITED)

Transcription

1 FINANCIAL STATEMENTS OF CONNECTICUT NATURAL GAS CORPORATION AS OF MARCH 31, 2018 AND DECEMBER 31, 2017 AND FOR THE THREE MONTHS ENDED MARCH 31, 2018 AND 2017 (UNAUDITED)

2 TABLE OF CONTENTS Financial Statements: Page Number Statement of Income for the three months ended March 31, 2018 and Statement of Comprehensive Income for the three months ended March 31, 2018 and Balance Sheet as of March 31, 2018 and December 31, Statement of Cash Flows for the three months ended March 31, 2018 and Statement of Changes in Shareholder s Equity 7 2

3 STATEMENT OF INCOME Three Months Ended March 31, Operating Revenues $ 141,346 $ 140,709 Operating Expenses Natural gas purchased 79,523 73,184 Operation and maintenance 24,778 21,293 Depreciation and amortization 8,498 8,231 Taxes other than income taxes 8,987 8,454 Total Operating Expenses 121, ,162 Operating Income 19,560 29,547 Other Income and (Expense), net Other income Other (expense) (2,855) (1,327) Total Other Income and (Expense), net (2,363) (1,025) Interest Expense, net 1,972 2,060 Income Before Income Tax 15,225 26,462 Income Tax 3,193 8,976 Net Income 12,032 17,486 Less: Preferred Stock Dividends of Subsidiary, Noncontrolling Interests 7 7 Net Income attributable to Connecticut Natural Gas Corporation $ 12,025 $ 17,479 CONNECTICUT NATURAL GAS CORPORATION STATEMENT OF COMPREHENSIVE INCOME Three Months Ended March 31, Net Income $ 12,032 $ 17,486 Other Comprehensive Income, net of income tax Changes in unrealized gains(losses) related to pension and other post-retirement benefit plans - - Total Other Comprehensive Income, net of income tax 12,032 17,486 Comprehensive Income Less: Preferred Stock Dividends of Subsidiary, Noncontrolling Interests 7 7 Comprehensive Income $ 12,025 $ 17,479 3

4 BALANCE SHEET LIABILITIES AND CAPITALIZATION March 31, December 31, Assets Current Assets Unrestricted cash and temporary cash investments $ 952 $ 666 Accounts receivable and unbilled revenues, net 91,444 85,964 Accounts receivable from affiliates 1,690 1,441 Regulatory assets 11,105 19,143 Gas in storage 11,267 23,379 Materials and supplies 1,996 1,887 Prepayments and other current assets 2,701 1,138 Total Current Assets 121, ,618 Other Investments 1,149 1,158 Property, Plant and Equipment, at cost 900, ,596 Less accumulated depreciation 293, ,532 Net Property, Plant and Equipment in Service 606, ,064 Construction work in progress 41,887 48,422 Total Property, Plant and Equipment 648, ,486 Regulatory Assets 109, ,875 Deferred Income Taxes Regulatory 34,044 24,588 Deferred Charges and Other Assets Goodwill 79,341 79,341 Other 1, Total Deferred Charges and Other Assets 80,402 79,471 Total Assets $ 995,127 $ 1,003,196 4

5 BALANCE SHEET LIABILITIES AND CAPITALIZATION Liabilities Current Liabilities Notes payable to affiliates 51,230 March 31, December 31, $ $ 89,262 Accounts payable and accrued liabilities 50,874 65,011 Accounts payable to affiliates 4,757 10,353 Other current liabilities 4,931 4,098 Regulatory liabilities 11,098 2,880 Interest accrued 1,676 1,262 Taxes accrued 22,210 8,062 Total Current Liabilities 146, ,928 Deferred Income Taxes 27,667 25,547 Regulatory Liabilities 236, ,457 Other Noncurrent Liabilities Pension and other post-retirement 91,025 90,761 Asset retirement obligations 6,769 6,683 Other 1,427 1,499 Total Other Noncurrent Liabilities 99,221 98,943 Capitalization Long-term debt, net of unamortized premium 109, ,290 Preferred Stock, not subject to mandatory redemption Common Stock Equity Common stock 33,233 33,233 Paid-in capital 315, ,304 Retained earnings 27,179 15,181 Accumulated other comprehensive loss - (27) Net Common Stock Equity 375, ,691 Total Capitalization 485, ,321 Total Liabilities and Capitalization $ 995,127 $ 1,003,196 5

6 STATEMENT OF CASH FLOWS Three Months Ended March 31, Cash Flows From Operating Activities Net Income $ 12,032 $ 17,486 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 8,518 8,250 Deferred income taxes (8,741) (4,695) Uncollectible expense 1,292 1,319 Pension expense 930 1,629 Regulatory assets/liabilities amortization 1, Regulatory assets/liabiities carrying cost Other non-cash items, net 328 (7) Changes in: Accounts receivable and unbilled revenues, net (7,340) (10,909) Natural gas in storage 12,112 9,931 Accounts payable and accrued liabilities (15,495) (15,702) Interest accrued Taxes accrued/refundable, net 14,147 19,608 Accrued pension and other post-retirement (666) (847) Regulatory assets/liabilities 31,812 9,750 Other assets (2,612) (2,344) Other liabilities Total Adjustments 36,708 18,188 Net Cash provided by Operating Activities 48,740 35,674 Cash Flows from Investing Activities Plant expenditures including AFUDC debt (10,415) (17,118) Net Cash used in Investing Activities (10,415) (17,118) Cash Flows from Financing Activities Payment of common stock dividend - (12,000) Payment of preferred stock dividend (7) (7) Notes payable to affiliates (38,032) (6,450) Net Cash used in Financing Activities (38,039) (18,457) Unrestricted Cash and Temporary Cash Investments: Net change for the period Balance at beginning of period Balance at end of period $ 952 $ 813 Non-cash investing activity: Plant expenditures included in ending accounts payable $ 2,777 $ 5,318 6

7 STATEMENT OF CHANGES IN SHAREHOLDER'S EQUITY March 31, 2018 (Thousands of Dollars) Accumulated Other Common Stock Paid-in Retained Comprehensive Shares Amount Capital Earnings Income (Loss) Total Balance as of December 31, ,634,436 $ 33,233 $ 315,304 $ 15,181 $ (27) $ 363,691 Net income 12,032 12,032 Change in accounting policy (27) 27 - Payment of preferred stock dividend (7) (7) Balance as of March 31, ,634,436 $ 33,233 $ 315,304 $ 27,179 $ - $ 375,716 7