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SPIRE INC 10-Q 2015
LG Combined -2014.12.31-10Q












UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C.


FORM 10-Q

QUARTERLY REPORT

For the Quarterly Period Ended December 31, 2014




 
 
 
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549

FORM 10-Q
(Mark One)
[ X ]
QUARTERLY REPORT PURSUANT TO SECTION 13 or 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarter Ended December 31, 2014
 
OR
[ ]
TRANSITION REPORT PURSUANT TO SECTION 13 or 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Transition Period from to

Commission File Number
 
Registrant, Address and Telephone Number
 
State of Incorporation
 
I.R.S. Employer Identification Number
1-16681
 
The Laclede Group, Inc.
720 Olive Street
St. Louis, MO 63101
Telephone Number 314-342-0500
 
Missouri
 
74-2976504
1-1822
 
Laclede Gas Company
720 Olive Street
St. Louis, MO 63101
Telephone Number 314-342-0500
 
Missouri
 
43-0368139
2-38960
 
Alabama Gas Corporation 2101 6th Avenue North Birmingham, Alabama 35203-8100 Telephone Number 205 326-8100
 
Alabama
 
63-0022000

Indicate by check mark whether each registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such report) and (2) has been subject to such filing requirements for the past 90 days.

The Laclede Group, Inc.    Yes [ X ]        No [ ]
Laclede Gas Company    Yes [ X ]        No [ ]
Alabama Gas Corporation    Yes [ X ]        No [ ]

Indicate by check mark whether each registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

The Laclede Group, Inc.    Yes [ X ]        No [ ]
Laclede Gas Company    Yes [ X ]        No [ ]
Alabama Gas Corporation    Yes [ X ]        No [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 
Large
accelerated
filer
 
Accelerated
filer
 
Non-
accelerated
filer
 
Smaller
reporting
company
The Laclede Group, Inc.
X
 
 
 
 
 
 
Laclede Gas Company
 
 
 
 
X
 
 
Alabama Gas Corporation
 
 
 
 
X
 
 

Indicate by check mark whether each registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

The Laclede Group, Inc.    Yes [ ]        No [ X ]
Laclede Gas Company    Yes [ ]        No [ X ]
Alabama Gas Corporation    Yes [ ]        No [ X ]
The number of shares outstanding of each registrant’s common stock as of January 30, 2015 was as follows:
The Laclede Group, Inc.
 
Common Stock, par value $1.00 per share
 
43,295,513

Laclede Gas Company
 
Common Stock, par value $1.00 per share (all owned by The Laclede Group, Inc.)
 
24,577

Alabama Gas Corporation
 
Common Stock, par value $0.01 per share (all owned by the Laclede Group, Inc.)
 
1,972,052


Laclede Gas Company and Alabama Gas Corporation meet the conditions set forth in General Instructions H(1)(a) and (b) of Form 10-Q and are therefore filing this Form 10-Q with the reduced disclosure format specified in General Instructions H(2) to Form 10-Q.

This combined Form 10-Q represents separate filings by The Laclede Group, Inc., Laclede Gas Company and Alabama Gas Corporation. Information contained herein relating to an individual registrant is filed by that registrant on its own behalf. Each registrant makes no representation as to information relating to the other registrant, except that information relating to Laclede Gas Company and Alabama Gas Corporation are also attributed to The Laclede Group, Inc.
 
 
 
 
 



TABLE OF CONTENTS
Page No.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The Laclede Group, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Laclede Gas Company
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Alabama Gas Corporation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

3




GLOSSARY OF KEY TERMS
Alagasco
Alabama Gas Corporation or Alabama Utility
ISRS
Infrastructure System Replacement Surcharge
Alabama Utility
Alabama Gas Corporation or Alagasco; the utility serving the Alabama region
LER
Laclede Energy Resources, Inc.
AOC
Administrative Order on Consent
MGE
Missouri Gas Energy
APSC
Alabama Public Service Commission
MGP
Manufactured Gas Plant
ASC
Accounting Standards Codification
Missouri Utilities
Laclede Gas Company, including MGE, the utilities serving the Missouri region
APUC
Algonquin Power and Utilities Corp.
MMBtu
Million British thermal unit
Bcf
Billion cubic feet
MoPSC
Missouri Public Service Commission or MPSC
BVCP
Brownfields/Voluntary Cleanup Program
NCP
National Oil and Hazardous Substances Pollutions Contingency Plan
CCM
Cost Control Mechanism
NEG
New England Gas Company
CERCLA
Comprehensive Environment Response, Compensation and Liability Act
NPL
National Priorities List
Energen
Energen Corporation
NYMEX
New York Mercantile Exchange, Inc.
EPA
US Environmental Protection Agency
O&M
Operations and Maintenance
ESR
Enhanced Stability Reserve
OTCBB
Over-the-counter bulletin board
FASB
Financial Accounting Standards Board
PGA
Purchased Gas Adjustment
FERC
Federal Energy Regulatory Commission
PRP
Potential Responsible Party
GAAP
Accounting principles generally accepted in the United States of America
RSE
Rate Stabilization and Equalization
Gas Utility
Operating segment including the regulated operations of Laclede Gas Company and Alabama Gas Corporation
SEC
US Securities and Exchange Commission
Gas Marketing
Operating segment including Laclede Energy Resources (LER), a subsidiary engaged in the non-regulated marketing of natural gas and related activities
SPA
Stock Purchase Agreement with Energen to purchase 100% of the common shares of Alabama Gas Corporation (Alagasco)
GSA
Gas supply adjustment
Spire
Laclede Group's compressed natural gas fueling solutions business
ICE
ICE Clear Europe
US
United States
Index Range
June Consumer Price Index for All Urban Consumers
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

4




PART I. FINANCIAL INFORMATION

The interim financial statements included herein have been prepared by three separate registrants: The Laclede Group, Inc. (Laclede Group or the Company), Laclede Gas Company (Laclede Gas or Missouri Utility) and Alabama Gas Corporation (Alagasco or Alabama Utility), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). These financial statements should be read in conjunction with the financial statements and the notes thereto included in each registrant's respective Form 10-K for the fiscal year or transition period, as applicable, ended September 30, 2014.

Part I-Financial information in the Quarterly Report on Form 10-Q includes separate financial statements (i.e., balance sheets, statements of income and comprehensive income, statements of common shareholder's equity and statements of cash flows) for Laclede Group, Laclede Gas and Alagasco. The notes to the financial statements are also included and are presented on a combined basis for the Laclede Group, Laclede Gas and Alagasco. Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations are also included and presented on a combined basis.

5




Item 1. Financial Statements

THE LACLEDE GROUP, INC.
STATEMENTS OF CONDENSED CONSOLIDATED INCOME
(UNAUDITED)

 
Three Months Ended 
 December 31,
($ Millions, Except Per Share Amounts)
2014
 
2013
Operating Revenues:
 

 
 
Gas utility
$
581.4

 
$
435.2

Gas marketing and other
38.2

 
33.4

Total Operating Revenues
619.6

 
468.6

Operating Expenses:
 
 
 
Gas utility
 
 
 
Natural and propane gas
304.3

 
241.8

Other operation and maintenance expenses
97.1

 
62.3

Depreciation and amortization
32.0

 
20.0

Taxes, other than income taxes
38.0

 
28.6

Total Gas Utility Operating Expenses
471.4

 
352.7

Gas marketing and other
60.9

 
53.0

Total Operating Expenses
532.3

 
405.7

Operating Income
87.3

 
62.9

Other Income – Net
1.4

 
1.7

Interest Charges:
 
 
 
Interest on long-term debt
17.2

 
9.7

Other interest charges
2.0

 
0.8

Total Interest Charges
19.2

 
10.5

Income Before Income Taxes
69.5

 
54.1

Income Tax Expense
22.4

 
18.5

Net Income
$
47.1

 
$
35.6

 
 
 
 
Weighted Average Number of Common Stock Outstanding:
 
 
 
Basic
43.1

 
32.6

Diluted
43.2

 
32.6

Basic Earnings Per Share of Common Stock
$
1.09

 
$
1.09

Diluted Earnings Per Share of Common Stock
$
1.09

 
$
1.09

Dividends Declared Per Share of Common Stock
$
0.460

 
$
0.440

See accompanying notes to the financial statements.
 
 
 


6




THE LACLEDE GROUP, INC.
STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME
(UNAUDITED)

 
Three Months Ended 
 December 31,
($ Millions)
2014
 
2013
Net Income
$
47.1

 
$
35.6

Other Comprehensive (Loss) Income, Before Tax:
 
 
 
Net (losses) gains on cash flow hedging derivative instruments:
 
 
 
Net hedging (loss) gain arising during the period
(5.9
)
 
(1.6
)
Reclassification adjustment for (gains) losses included in net income
(0.1
)
 
(1.2
)
Net unrealized (losses) gains on cash flow hedging derivative instruments
(6.0
)
 
(2.8
)
Defined benefit pension and other postretirement plans:
 
 
 
Amortization of actuarial loss included in net periodic pension and postretirement benefit cost
0.1

 
0.1

Other Comprehensive Loss, Before Tax
(5.9
)
 
(2.7
)
Income Tax Benefit Related to Items of Other Comprehensive Income
(2.2
)
 
(1.0
)
Other Comprehensive Loss, Net of Tax
(3.7
)
 
(1.7
)
Comprehensive Income
$
43.4

 
$
33.9

See accompanying notes to the financial statements.
 
 
 


7




THE LACLEDE GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

 
December 31,
 
September 30,
($ Millions, Except Per Share Amounts)
2014
 
2014
ASSETS
Utility Plant
$
3,979.7

 
$
3,928.3

Less:  Accumulated depreciation and amortization
1,195.3

 
1,168.6

Net Utility Plant
2,784.4

 
2,759.7

Non-utility property (net of accumulated depreciation and amortization, $6.9 and $6.7 at December 31, 2014 and September 30, 2014 respectively.)
9.5

 
9.2

Goodwill
937.8

 
937.8

Other investments
60.9

 
60.0

Other Property and Investments
1,008.2

 
1,007.0

Current Assets:
 
 
 
Cash and cash equivalents
13.4

 
16.1

Accounts receivable:
 
 
 
Utility
355.4

 
148.2

Other
76.6

 
86.5

Allowance for doubtful accounts
(12.0
)
 
(15.9
)
Delayed customer billings
14.6

 
10.8

Inventories:
 
 
 
Natural gas
219.5

 
245.5

Propane gas
11.9

 
11.7

Materials and supplies
14.1

 
13.0

Natural gas receivable
11.1

 
7.3

Derivative instrument assets
4.0

 
2.4

Unamortized purchased gas adjustments
60.6

 
54.0

Prepayments and other
46.9

 
48.4

Total Current Assets
816.1

 
628.0

Deferred Charges:
 
 
 
Regulatory assets
615.8

 
614.3

Other
64.0

 
65.0

Total Deferred Charges
679.8

 
679.3

Total Assets
$
5,288.5

 
$
5,074.0


8





THE LACLEDE GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (Continued)
(UNAUDITED)

 
December 31,
 
September 30,
 
2014
 
2014
CAPITALIZATION AND LIABILITIES
Capitalization:
 
 
 
Common stock (par value $1.00 per share; 70.0 million shares authorized; 43.3 million and 43.2 million shares
issued and outstanding, at December 31, 2014 and September 30, 2014, respectively)
$
43.3

 
$
43.2

Paid-in capital
1,031.0

 
1,029.4

Retained earnings
464.6

 
437.5

Accumulated other comprehensive loss
(5.4
)
 
(1.7
)
Total Common Stock Equity
1,533.5

 
1,508.4

Long-term debt (less current portion)
1,736.3

 
1,851.0

Total Capitalization
3,269.8

 
3,359.4

Current Liabilities:
 
 
 
Current portion of long-term debt
114.7

 

Notes payable
397.5

 
287.1

Accounts payable
221.1

 
176.7

Advance customer billings
30.9

 
32.2

Wages and compensation accrued
24.7

 
36.0

Dividends payable
20.9

 
19.9

Customer deposits
35.8

 
34.0

Interest accrued
19.9

 
15.1

Unamortized purchase gas adjustment
22.1

 
22.4

Taxes accrued
50.8

 
63.4

Deferred income taxes
21.1

 
9.9

Other
122.8

 
89.1

Total Current Liabilities
1,082.3

 
785.8

Deferred Credits and Other Liabilities:
 
 
 
Deferred income taxes
394.6

 
383.8

Pension and postretirement benefit costs
241.7

 
244.9

Asset retirement obligations
100.3

 
99.2

Regulatory liabilities
122.9

 
125.8

Other
76.9

 
75.1

Total Deferred Credits and Other Liabilities
936.4

 
928.8

Commitments and Contingencies (Note 10)

 

        Total Capitalization and Liabilities
$
5,288.5

 
$
5,074.0

 
 
 
 
See accompanying notes to the financial statements.
 
 
 


9




THE LACLEDE GROUP, INC.
CONSOLIDATED STATEMENTS OF COMMON SHAREHOLDERS' EQUITY
(UNAUDITED)


($ Millions, Except for Shares and Per Share Amounts)
Common Stock Issued
 
Paid-in Capital
 
Retained Earnings
 
Accumulated
Other
Comprehensive Income/(Loss)
 
 
 
Shares
 
Amount
 
 
 
 
Total
BALANCE OCTOBER 1, 2013
32,696,836

 
$
32.7

 
$
594.3

 
$
420.1

 
$
(0.8
)
 
$
1,046.3

Net income

 

 

 
35.6

 

 
35.6

Dividend reinvestment plan
8,129

 

 
0.4

 

 

 
0.4

Stock-based compensation costs

 

 
0.5

 

 

 
0.5

Equity Incentive Plan
46,290

 
0.1

 
0.3

 

 

 
0.4

   Employees’ taxes paid associated with restricted
    shares withheld upon vesting

 

 
(1.1
)
 

 

 
(1.1
)
Tax benefit – stock compensation

 

 
0.4

 

 

 
0.4

Dividends declared:
 
 
 
 
 
 
 
 
 
 


Common stock ($0.44 per share)

 

 


 
(14.4
)
 

 
(14.4
)
Other comprehensive loss, net of tax

 

 

 

 
(1.7
)
 
(1.7
)
BALANCE DECEMBER 31, 2013
32,751,255

 
$
32.8

 
$
594.8

 
$
441.3

 
$
(2.5
)
 
$
1,066.4

 
 
 
 
 
 
 
 
 
 
 
 
BALANCE OCTOBER 1, 2014
43,178,405

 
$
43.2

 
$
1,029.4

 
$
437.5

 
$
(1.7
)
 
$
1,508.4

Net income

 

 

 
47.1

 

 
47.1

Dividend reinvestment plan
8,199

 

 
0.4

 

 

 
0.4

Stock-based compensation costs

 

 
(2.0
)
 

 

 
(2.0
)
Equity Incentive Plan
102,534

 
0.1

 
2.7

 

 

 
2.8

Tax benefit – stock compensation

 

 
0.5

 

 

 
0.5

Dividends declared:
 
 
 
 
 
 
 
 
 
 


Common stock ($0.46 per share)

 

 
 
 
(20.0
)
 
 
 
(20.0
)
Other comprehensive loss, net of tax

 

 

 

 
(3.7
)
 
(3.7
)
BALANCE DECEMBER 31, 2014
43,289,138

 
$
43.3

 
$
1,031.0

 
$
464.6

 
$
(5.4
)
 
$
1,533.5

 
 
 
 
 
 
 
 
 
 
 
 


10




THE LACLEDE GROUP, INC.
STATEMENTS OF CONDENSED CONSOLIDATED CASH FLOWS
(UNAUDITED) 
 
Three Months Ended 
 December 31,
($ Millions)
2014
 
2013
Operating Activities:
 
 
 
 Net Income
$
47.1

 
$
35.6

  Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation, amortization, and accretion
32.3

 
20.2

Other – net
13.9

 
(0.9
)
Changes in assets and liabilities:
 
 
 
Accounts receivable – net
(187.4
)
 
(157.6
)
Unamortized purchased gas adjustments
(6.6
)
 
7.6

Deferred purchased gas costs
0.1

 
23.1

Accounts payable
49.9

 
25.2

Delayed/advanced customer billings - net
(3.8
)
 
(7.7
)
Taxes accrued
(12.8
)
 
3.4

Natural gas
26.0

 
28.7

Other assets and liabilities
7.2

 
6.7

Net cash used in operating activities
(34.1
)
 
(15.7
)
Investing Activities:
 
 
 
Capital expenditures
(60.0
)
 
(34.6
)
Other
(0.6
)
 
(0.7
)
Proceeds from sale of right to acquire New England Gas Company

 
11.0

Net cash used in investing activities
(60.6
)
 
(24.3
)
Financing Activities:
 
 
 
Net Issuance of short-term debt
110.4

 
19.5

Issuance of common stock
1.7

 
0.8

Dividends paid
(19.0
)
 
(13.9
)
Other
(1.1
)
 
15.1

Net cash provided by financing activities
92.0

 
21.5

Net Decrease in Cash and Cash Equivalents
(2.7
)
 
(18.5
)
Cash and Cash Equivalents at Beginning of Period
16.1

 
53.0

Cash and Cash Equivalents at End of Period
$
13.4

 
$
34.5

 
 
 
 
Supplemental disclosure of cash flow information:
 
 
 
Interest paid
$
13.3

 
$
8.9

Income taxes refunded
(7.4
)
 
(2.3
)
 
 
 
 
See accompanying notes to the financial statements.
 
 
 

11





LACLEDE GAS COMPANY
STATEMENTS OF CONDENSED INCOME
(UNAUDITED)

 
Three Months Ended 
 December 31,
($ Millions)
2014
 
2013
Operating Revenues:
 

 
 
Utility
$
462.4

 
$
435.2

Total Operating Revenues
462.4


435.2

Operating Expenses:
 
 
 
Utility
 
 
 
Natural and propane gas
283.4

 
261.6

Other operation and maintenance expenses
64.8

 
62.5

Depreciation and amortization
20.2

 
20.0

Taxes, other than income taxes
29.2

 
28.6

Total Utility Operating Expenses
397.6


372.7

Other

 
0.2

Total Operating Expenses
397.6

 
372.9

Operating Income
64.8

 
62.3

Other Income – Net
0.9

 
1.7

Interest Charges:
 
 
 
Interest on long-term debt
8.3

 
9.5

Other interest charges
1.0

 
0.8

Total Interest Charges
9.3

 
10.3

Income Before Income Taxes
56.4

 
53.7

Income Tax Expense
17.4

 
18.4

Net Income
$
39.0


$
35.3

 
 
 
 
See accompanying notes to the financial statements.
 
 
 


12





LACLEDE GAS COMPANY
STATEMENTS OF COMPREHENSIVE INCOME
(UNAUDITED)

 
Three Months Ended 
 December 31,
($ Millions)
2014
 
2013
Net Income
$
39.0

 
$
35.3

Other Comprehensive Income (Loss), Before Tax:
 
 
 
Net gains (losses) on cash flow hedging derivative instruments:
 
 
 
Net hedging loss arising during the period
(1.4
)
 

Reclassification adjustment for losses (gains) included in net income
0.1

 
(0.1
)
 Net unrealized (losses) on cash flow hedging  derivative instruments
(1.3
)
 
(0.1
)
Defined benefit pension and other postretirement plans:
 
 
 
Amortization of actuarial loss included in net periodic pension and postretirement benefit cost
0.1

 
0.1

Other Comprehensive Loss, Before Tax
(1.2
)
 

Income Tax Benefit Related to Items of Other Comprehensive Income
(0.4
)
 

Other Comprehensive Loss, Net of Tax
(0.8
)
 

Comprehensive Income
$
38.2

 
$
35.3

 
 
 
 
See accompanying notes to the financial statements.
 
 
 


13




LACLEDE GAS COMPANY
CONDENSED BALANCE SHEETS
(UNAUDITED)

 
December 31,
 
September 30,
($ Millions, Except for Shares and Per Share Amounts)
2014
 
2014
ASSETS
 
 
 
Utility Plant
$
2,439.5

 
$
2,403.3

Less:  Accumulated depreciation and amortization
558.2

 
542.3

Net Utility Plant
1,881.3

 
1,861.0

Goodwill
210.2

 
210.2

Other Property and Investments
56.6

 
55.7

Total Other Property and Investments
266.8

 
265.9

Current Assets:
 
 
 
Cash and cash equivalents
5.9

 
3.7

Accounts receivable:
 
 
 
Utility
262.0

 
111.1

Other
19.4

 
19.2

Allowance for doubtful accounts
(7.7
)
 
(10.7
)
Delayed customer billings
14.6

 
10.8

Receivables from associated companies
4.0

 
11.4

Inventories:
 
 
 
Natural gas
167.5

 
191.1

Propane gas
12.0

 
11.7

Materials and supplies
9.0

 
7.8

Unamortized purchased gas adjustments
60.6

 
54.0

Prepayments and other
32.4

 
33.5

Total Current Assets
579.7

 
443.6

Deferred Charges:
 
 
 
Regulatory assets
526.9

 
523.7

Other
8.7

 
10.8

Total Deferred Charges
535.6

 
534.5

Total Assets
$
3,263.4

 
$
3,105.0


14




LACLEDE GAS COMPANY
CONDENSED BALANCE SHEETS (Continued)
(UNAUDITED)

 
December 31,
 
September 30,
 
2014
 
2014
CAPITALIZATION AND LIABILITIES
 
 
 
Capitalization:
 
 
 
Common stock (par value $1.00 per share; 50,000 authorized; 24,577 shares issued and outstanding at December 31, 2014 and September 30, 2014, respectively)
$
0.1

 
$
0.1

Paid-in capital
745.3

 
744.0

Retained earnings
284.7

 
265.6

Accumulated other comprehensive loss
(2.7
)
 
(1.9
)
Total Common Stock Equity
1,027.4

 
1,007.8

Long-term debt 
808.0

 
807.9

Total Capitalization
1,835.4

 
1,815.7

Current Liabilities:
 
 
 
Notes payable
319.5

 
238.6

Accounts payable
107.3

 
70.1

Accounts payable – associated companies
9.8

 
6.0

Advance customer billings
13.2

 
15.5

Wages and compensation accrued
19.5

 
30.3

Dividends payable
19.9

 
19.0

Customer deposits
15.2

 
14.8

Interest accrued
9.7

 
8.1

Taxes accrued
34.5

 
43.9

Deferred income taxes
20.9

 
11.3

Other
51.9

 
30.6

Total Current Liabilities
621.4

 
488.2

Deferred Credits and Other Liabilities:
 
 
 
Deferred income taxes
406.5

 
399.8

Pension and postretirement benefit costs
211.1

 
215.3

Asset retirement obligations
72.1

 
71.2

Regulatory liabilities
70.9

 
72.1

Other
46.0

 
42.7

Total Deferred Credits and Other Liabilities
806.6

 
801.1

Commitments and Contingencies (Note 10)

 

Total Capitalization and Liabilities
$
3,263.4

 
$
3,105.0

 
 
 
 
See accompanying notes to the financial statements.
 
 
 



15




LACLEDE GAS COMPANY
STATEMENTS OF COMMON SHAREHOLDER'S EQUITY
(UNAUDITED)


($ Millions, Except for Shares)
Common Stock Issued
 
Paid-in Capital
 
Retained Earnings
 
Accumulated
Other
Comprehensive Income/(Loss)
 
 
 
Shares
 
Amount
 
 
 
 
Total
BALANCE OCTOBER 1, 2013
24,549

 
$
0.1

 
$
738.1

 
$
237.8

 
$
(2.1
)
 
$
973.9

Net income

 

 

 
35.3

 

 
35.3

Stock-based compensation costs

 

 
0.4

 

 

 
0.4

Tax benefit – stock compensation

 

 
0.4

 

 

 
0.4

Dividends declared:
 
 
 
 
 
 
 
 
 
 

Common stock

 

 

 
(14.4
)
 

 
(14.4
)
Issuance of common stock to Laclede
9

 

 
0.4

 

 

 
0.4

BALANCE DECEMBER 31, 2013
24,558

 
$
0.1

 
$
739.3

 
$
258.7

 
$
(2.1
)
 
$
996.0

 
 
 
 
 
 
 
 
 
 
 
 
BALANCE October 1, 2014
24,577

 
$
0.1

 
$
744.0

 
$
265.6

 
$
(1.9
)
 
$
1,007.8

Net income

 

 

 
39.0

 

 
39.0

Stock-based compensation costs

 

 
0.9

 

 

 
0.9

Tax benefit – stock compensation

 

 
0.4

 

 

 
0.4

Dividends declared:
 
 
 
 
 
 
 
 
 
 

Common stock

 

 

 
(19.9
)
 

 
(19.9
)
Other comprehensive loss, net of tax

 

 

 

 
(0.8
)
 
(0.8
)
BALANCE DECEMBER 31, 2014
24,577

 
$
0.1

 
$
745.3

 
$
284.7

 
$
(2.7
)
 
$
1,027.4

 
 
 
 
 
 
 
 
 
 
 
 


16




LACLEDE GAS COMPANY
STATEMENTS OF CONDENSED CASH FLOWS
(UNAUDITED)
 
Three Months Ended December 31,
($ Millions)
2014
 
2013
Operating Activities:
 
 
 
Net Income
$
39.0

 
$
35.3

 Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation and amortization
20.3

 
20.0

Other – net
5.9

 
(3.2
)
Changes in assets and liabilities:
 
 
 
Accounts receivable – net
(146.8
)
 
(168.5
)
Unamortized purchased gas adjustments
(6.7
)
 
7.6

Deferred purchased gas costs
0.1

 
23.1

Accounts payable
46.9

 
38.9

Delayed/advance customer billings - net
(6.0
)
 
(7.7
)
Taxes accrued
(9.3
)
 
9.3

Natural gas
23.7

 
29.1

Other assets and liabilities
17.3

 
11.4

Net cash used in operating activities
(15.6
)
 
(4.7
)
Investing Activities:
 
 
 
Capital expenditures
(43.9
)
 
(34.0
)
Other
(0.4
)
 
(0.7
)
Net cash used in investing activities
(44.3
)
 
(34.7
)
Financing Activities:
 
 
 
Issuance of short-term debt — net
80.8

 
19.5

Borrowings from Laclede Group
6.4

 
19.7

Repayment of borrowings from Laclede Group
(6.4
)
 
(18.5
)
Dividends paid
(19.0
)
 
(13.9
)
Issuance of common stock to Laclede Group

 
0.4

Other
0.3

 
16.2

Net cash provided by financing activities
62.1

 
23.4

Net Increase (Decrease) in Cash and Cash Equivalents
2.2

 
(16.0
)
Cash and Cash Equivalents at Beginning of Period
3.7

 
23.9

Cash and Cash Equivalents at End of Period
$
5.9

 
$
7.9

 
 
 
 
Supplemental disclosure of cash flow information:
 
 
 
Interest paid
$
4.0

 
$
8.7

Income taxes paid (refunded)

 
(1.3
)
 
 
 
 
See accompanying notes to the financial statements.
 
 
 


17





ALABAMA GAS CORPORATION
STATEMENTS OF CONDENSED INCOME
(UNAUDITED)

 
Three Months Ended 
 December 31,
($ Millions)
2014
 
2013
Operating Revenues:
 

 
 
Utility
$
120.0

 
$
142.8

Total Operating Revenues
120.0

 
142.8

Operating Expenses:
 
 
 
Utility
 
 
 
Natural and propane gas
46.4

 
52.0

Other operation and maintenance expenses
32.6

 
35.5

Depreciation and amortization
11.8

 
11.2

Taxes, other than income taxes
8.8

 
9.3

Total Utility Operating Expenses
99.6

 
108.0

Total Operating Expenses
99.6

 
108.0

Operating Income
20.4

 
34.8

Other Income and – Net
0.4

 
0.7

Interest Charges:
 
 
 
Interest on long-term debt
3.2

 
3.2

Other interest charges
0.6

 
0.7

Total Interest Charges
3.8

 
3.9

Income Before Income Taxes
17.0

 
31.6

Income Tax Expense
6.4

 
11.8

Net Income and Comprehensive Income
$
10.6

 
$
19.8

 
 
 
 
See accompanying notes to the financial statements.
 
 
 


18




ALABAMA GAS CORPORATION
CONDENSED BALANCE SHEETS
(UNAUDITED)

 
December 31,
 
September 30,
($ Millions, Except Per Share Amounts)
2014
 
2014
ASSETS
 
 
 
Utility Plant
$
1,540.1

 
$
1,525.1

Less:  Accumulated depreciation and amortization
637.0

 
626.4

Net Utility Plant
903.1

 
898.7

Current Assets:
 
 
 
Cash and cash equivalents
3.3

 
5.6

Accounts receivable:
 
 
 
Utility
93.4

 
39.0

Other
5.8

 
5.1

Allowance for doubtful accounts
(4.3
)
 
(5.1
)
Inventories:
 
 
 
Natural gas
43.6

 
48.0

Materials and supplies
5.0

 
5.1

Regulatory assets
8.6

 
8.8

Deferred income taxes
2.3

 
2.3

Prepayments and other
2.3

 
1.6

Total Current Assets
160.0

 
110.4

Deferred Charges:
 
 
 
Regulatory assets
88.9

 
90.6

Deferred income taxes
272.9

 
277.8

Other
47.2

 
47.1

Total Deferred Charges
409.0

 
415.5

Total Assets
$
1,472.1

 
$
1,424.6


19




ALABAMA GAS CORPORATION
CONDENSED BALANCE SHEETS (Continued)
(UNAUDITED)

 
December 31,
 
September 30,
 
2014
 
2014
CAPITALIZATION AND LIABILITIES
 
 
 
Capitalization:
 
 
 
Common stock (par value $0.01 per share; 3.0 million shares authorized; 2.0 million shares issued and outstanding at December 31, 2014 and September 30, 2014, respectively)
$

 
$

Paid-in capital
503.9

 
503.9

Retained earnings
356.3

 
345.7

Total Common Stock Equity
860.2

 
849.6

Long-term debt 
135.0

 
249.8

Total Capitalization
995.2

 
1,099.4

Current Liabilities:
 
 
 
Current portion of long-term debt
114.7

 

Notes payable
21.5

 
16.0

Accounts payable
51.6

 
34.2

Accounts payable – associated companies
1.2

 
0.4

Advance customer billings
38.3

 
35.8

Wages and compensation accrued
5.2

 
5.7

Interest accrued
3.5

 
3.9

Taxes accrued
28.4

 
30.0

Regulatory liabilities
75.3

 
63.1

Deferred income taxes
1.6

 

Other
6.8

 
6.8

Total Current Liabilities
348.1

 
195.9

Deferred Credits and Other Liabilities:
 
 
 
Pension and postretirement benefit costs
30.6

 
29.6

Asset retirement obligations
28.1

 
27.7

Regulatory liabilities
51.9

 
53.7

Other
18.2

 
18.3

Total Deferred Credits and Other Liabilities
128.8

 
129.3

Commitments and Contingencies (Note 10)

 

Total Capitalization and Liabilities
$
1,472.1

 
$
1,424.6

 
 
 
 
See accompanying notes to the financial statements.
 
 
 


20




ALABAMA GAS CORPORATION
STATEMENTS OF COMMON SHAREHOLDER'S EQUITY
(UNAUDITED)


($ Millions, Except for Shares)
Common Stock Issued
 
Paid-in Capital
 
Retained Earnings
 
 
 
Shares
 
Amount
 
 
 
Total
BALANCE OCTOBER 1, 2013
1,972,052

 
$

 
$
34.5

 
$
330.3

 
$
364.8

Net income

 

 

 
19.8

 
19.8

BALANCE DECEMBER 31, 2013
1,972,052

 
$

 
$
34.5

 
$
350.1

 
$
384.6

 
 
 
 
 
 
 
 
 
 
BALANCE October 1, 2014
1,972,052

 
$

 
$
503.9

 
$
345.7

 
$
849.6

Net income

 

 

 
10.6

 
10.6

BALANCE DECEMBER 31, 2014
1,972,052

 
$

 
$
503.9

 
$
356.3

 
$
860.2

 
 
 
 
 
 
 
 
 
 


21





ALABAMA GAS CORPORATION
STATEMENTS OF CONDENSED CASH FLOWS
(UNAUDITED)
 
Three Months Ended December 31,
($ Millions)
2014
 
2013
Operating Activities:
 
 
 
Net Income
$
10.6

 
$
19.8

 Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation and amortization
11.8

 
11.2

Other – net
6.6