<TABLE>
<CAPTION>
Vectren Corporation
3 Months 6 Months
Highlights Ended June 30 Ended June 30
(Unaudited) 2000 1999 2000 1999
<S> <C> <C> <C> <C>
Basic and Diluted Earnings Per Average Share:
Utility Group $ 0.05 $ 0.13 $ 0.26 $ 0.73
Non-regulated Group
Communications (0.01) - 0.08 -
Energy Services 0.05 0.03 0.08 0.08
Financial Group 0.04 0.02 0.07 0.03
Other Non-regulated 0.01 0.01 0.01 0.01
Total Non-regulated 0.09 0.06 0.24 0.12
Total $ 0.14 * $ 0.19 $ 0.50 $ 0.85
EPS Before Merger Costs $ 0.23 $ 0.19 $ 0.91 $ 0.85
Summary of Impact of Merger Costs:
(millions, except per share data)
Total
Merger Costs $ 3.2 $ - $ 30.4 $ -
Depreciation 3.3 - 3.3 -
Income Taxes (0.7) - (8.6) -
Total $ 5.8 $ - $ 25.1 $ -
EPS Impact of Merger
Costs $ 0.09 $ - $ 0.41 $ -
Utility Group $ 0.09 $ - $ 0.40 $ -
Non-regulated Group $ - $ - $ 0.01 $ -
Dividends Paid (per common
share, 12 months) $ 0.96 $ 0.92
Annualized Dividend $ 0.97 $ 0.93
Dividend Yield (at close) 5.6% N/A
Dividend Payout Ratio 85.7% 64.3%
Dividend to Book Value 8.4% 8.1%
Return on Average
Shareholder Equity 9.8% 12.7%
Book Value Per Share $11.58 $11.48
Market to Book Value
(at close) 149% N/A
Common Stock Prices
(VVC - NYSE)
High (during
second quarter) $21.38 N/A
Low (during
second quarter) $15.75 N/A
Close $17.25 N/A
Price/Earnings Ratio
(trailing) 15.4 N/A
Percent Internally
Generated
Funds - Utility Group 54% 81%
Ratio of Earnings to Fixed Charges - SEC Method
Consolidated 3.1 4.1
Utility Group 2.9 4.1
Credit Ratings:
Indiana Gas AA- / Aa2 AA- / Aa2
SIGECO AA / Aa2 AA / Aa2
* Diluted earnings per share for the 3 months ended
June 30, 2000 total $.13 and for the 12 months ended
June 30, 1999 total $1.42. Basic and diluted earnings
per share for all other periods presented are equal.
</TABLE>
<TABLE>
<CAPTION>
Vectren Corporation
12 Months
Highlights Ended June 30
(Unaudited) 2000 1999
<S> <C> <C>
Basic and Diluted Earnings Per Average Share:
Utility Group $ 0.76 $1.20
Non-regulated Group
Communications 0.08 -
Energy Services 0.09 0.11
Financial Group 0.14 0.06
Other Non-regulated 0.05 0.06
Total Non-regulated 0.36 0.23
Total $ 1.12 $1.43
EPS Before Merger Costs $ 1.53 $1.43
Summary of Impact of Merger Costs:
(millions, except per share data)
Total
Merger Costs $ 30.4 $ -
Depreciation 3.3 -
Income Taxes (8.6) -
Total $ 25.1 $ -
EPS Impact of Merger Costs $ 0.41 $ -
Utility Group $ 0.40 $ -
Non-regulated Group $ 0.01 $ -
Dividends Paid (per common
share, 12 months)
Annualized Dividend
Dividend Yield (at close)
Dividend Payout Ratio
Dividend to Book Value
Return on Average Shareholder
Equity
Book Value Per Share
Market to Book Value (at close)
Common Stock Prices
(VVC - NYSE)
High (during second quarter)
Low (during second quarter)
Close
Price/Earnings Ratio (trailing)
Percent Internally Generated
Funds - Utility Group
Ratio of Earnings to Fixed Charges - SEC Method
Consolidated
Utility Group
Credit Ratings:
Indiana Gas
SIGECO
* Diluted earnings per share for the 3 months ended
June 30, 2000 total $.13 and for the 12 months ended
June 30, 1999 total $1.42. Basic and diluted
earnings per share for all other periods presented are equal.
</TABLE>
<TABLE>
<CAPTION>
3 Months 6 Months
SELECTED UTILITY Ended June 30 Ended June 30
OPERATING STATISTICS
(Unaudited) 2000 1999 2000 1999
<S> <C> <C> <C> <C>
WEATHER AS A PERCENT OF NORMAL:
Heating Degree Days 92% 70% 84% 88%
Cooling Degree Days 89% 87% 87% 85%
GAS MARGIN (Thousands):
Operating Revenues 100,485 82,647 301,330 273,829
Cost of Gas 55,898 38,617 174,425 142,116
Margin 44,587 44,030 126,905 131,713
ELECTRIC MARGIN (Thousands):
Operating Revenues 78,289 73,802 151,279 144,789
Cost of Fuel &
Purchased Power 26,422 23,943 48,101 44,073
Unconsolidated Margin 51,867 49,859 103,178 100,716
Consolidating
Adjustment 1,720 1,149 3,349 2,390
Consolidated Margin 53,587 51,008 106,527 103,106
GAS SOLD & TRANSPORTED (MDth):
Residential 6,541 5,802 30,231 32,279
Commercial 2,673 2,972 12,202 13,090
Contract 18,266 17,516 41,591 40,168
27,480 26,290 84,024 85,537
ELECTRICITY SOLD (MWh):
Residential 279,646 290,970 595,680 636,827
Commercial 324,278 321,378 614,895 613,248
Industrial 638,418 625,354 1,236,818 1,175,652
- - - -
Miscellaneous Sales 3,964 3,951 9,234 9,427
Total Retail 1,246,306 1,241,653 2,456,627 2,435,154
Municipals and Jasper 169,029 164,745 327,003 307,928
Alcoa Generating
Corporation 79,980 144,661 102,248 262,294
Other Wholesale 212,320 177,541 571,326 415,204
1,707,635 1,728,600 3,457,204 3,420,580
GAS OPERATING REVENUES (Thousands):
Residential 56,430 49,424 196,251 187,719
Commercial 18,550 18,359 69,491 67,252
Contract 10,422 10,408 25,531 25,689
Miscellaneous Revenue 15,083 4,456 10,057 (6,831)
100,485 82,647 301,330 273,829
ELECTRIC OPERATING REVENUES (Thousands):
Residential 19,533 20,330 39,768 41,896
Commercial 17,399 17,437 33,280 33,843
Industrial 20,996 20,591 40,365 38,427
Miscellaneous Revenue 2,934 1,740 4,343 2,318
Total Retail 60,862 60,098 117,756 116,484
Municipals and
Jasper 5,903 5,880 11,255 10,935
Alcoa Generating
Corporation 2,013 3,344 2,565 5,883
Other Wholesale 9,511 4,480 19,703 11,487
78,289 73,802 151,279 144,789
AVERAGE GAS CUSTOMERS:
Residential 565,803 553,817 567,739 554,169
Commercial 56,726 56,391 56,988 56,198
Contract 1,248 1,255 1,253 1,252
623,778 611,463 625,980 611,619
AVERAGE ELECTRIC CUSTOMERS:
Residential 110,702 108,706 110,496 108,565
Commercial 16,687 15,901 16,570 15,887
Industrial 167 175 169 175
127,556 24,782 127,235 124,627
</TABLE>
<TABLE>
<CAPTION>
12 Months
SELECTED UTILITY Ended June 30
OPERATING STATISTICS
(Unaudited) 2000 1999
<S> <C> <C> <C>
WEATHER AS A PERCENT OF NORMAL:
Heating Degree Days 84% 86%
Cooling Degree Days 94% 105%
GAS MARGIN (Thousands):
Operating Revenues 527,074 487,185
Cost of Gas 298,738 258,718
Margin 228,336 228,467
ELECTRIC MARGIN
(Thousands):
Operating Revenues 314,059 299,901
Cost of Fuel & Purchased Power 96,974 92,380
Unconsolidated Margin 217,085 207,521
Consolidating Adjustment 6,809 4,588
Consolidated Margin 223,894 212,109
GAS SOLD & TRANSPORTED
(MDth):
Residential 49,662 50,869
Commercial 19,639 20,773
Contract 79,897 76,223
149,198 147,865
ELECTRICITY SOLD (MWh):
Residential 1,330,433 1,344,135
Commercial 1,305,655 1,260,279
Industrial 2,477,156 2,313,602
- -
Miscellaneous Sales 19,174 19,831
Total Retail 5,132,418 4,937,847
Municipals and Jasper 678,530 636,764
Alcoa Generating Corporation 154,401 522,280
Other Wholesale 1,011,990 851,785
6,977,339 6,948,676
GAS OPERATING REVENUES (Thousands):
Residential 335,523 319,642
Commercial 114,044 112,379
Contract 48,148 49,692
Miscellaneous Revenue 29,359 5,472
527,074 487,185
ELECTRIC OPERATING REVENUES
(Thousands):
Residential 88,673 89,213
Commercial 69,343 68,001
Industrial 81,469 76,066
Miscellaneous Revenue 9,167 6,705
Total Retail 248,652 239,985
Municipals and Jasper 23,864 22,782
Alcoa Generating Corporation 4,747 12,140
Other Wholesale 36,796 24,994
314,059 299,901
AVERAGE GAS CUSTOMERS:
Residential 560,432 547,861
Commercial 56,365 55,518
Contract 1,248 1,251
618,045 604,630
AVERAGE ELECTRIC
CUSTOMERS:
Residential 109,956 108,115
Commercial 16,338 15,868
Industrial 171 175
126,465 124,158
</TABLE>
<TABLE>
<CAPTION>
VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF INCOME
(Thousands, except for share amounts)
(Unaudited)
Three Months Six Months
Ended June 30 Ended June 30
2000 1999 2000 1999
<S> <C> <C> <C> <C>
OPERATING REVENUE:
Gas utility $ 100,485 $ 82,647 $ 301,330 $ 273,829
Electric utility 78,289 73,802 151,279 144,789
Energy services and other 84,703 50,593 170,312 109,457
Total operating 263,477 207,042 622,921 528,075
revenues
OPERATING EXPENSES:
Cost of gas sold 55,898 38,617 174,425 142,116
Fuel for electric 15,543 15,730 32,116 31,358
generation
Purchased electric energy 9,159 7,063 12,636 10,325
Cost of energy services
and other 80,240 48,464 161,962 104,634
Other operating 50,173 45,940 96,599 90,773
Merger costs 3,261 - 30,442 -
Depreciation and
amortization 26,031 21,794 48,693 43,019
Taxes other than income
taxes 7,456 6,494 16,056 14,777
Total operating
expenses 247,761 184,102 572,929 437,002
OPERATING INCOME 15,716 22,940 49,992 91,073
OTHER INCOME
Equity in earnings of
unconsolidated
nvestments 2,074 2,313 14,551 6,539
Other - net 7,801 1,146 10,219 3,006
Total other income 9,875 3,459 24,770 9,545
INTEREST EXPENSE 12,319 9,827 24,592 19,997
INCOME BEFORE PREFERRED
DIVIDENDS AND
INCOME TAXES 13,272 16,572 50,170 80,621
PREFERRED DIVIDEND REQUIREMENTS
OF SUBSIDIARY 266 269 535 539
INCOME BEFORE INCOME
TAXES 13,006 16,303 49,635 80,082
INCOME TAXES 4,390 4,538 18,656 27,514
NET INCOME BEFORE
MINORITY INTEREST 8,616 11,765 30,979 52,568
MINORITY INTEREST IN
SUBSIDIARY 343 211 581 291
NET INCOME $ 8,273 $ 11,554 $ 30,398 $ 52,277
AVERAGE COMMON SHARES
OUTSTANDING 61,227 61,287 61,266 61,309
DILUTED COMMON SHARES
OUTSTANDING 61,317 61,425 61,338 61,461
BASIC EARNINGS PER AVERAGE
SHARE OF COMMON STOCK $ 0.14 $ 0.19 $ 0.50 $ 0.85
DILUTED EARNINGS PER
AVERAGE SHARE OF
COMMON STOCK $ 0.13 $ 0.19 $ 0.50 $ 0.85
</TABLE>
<TABLE>
<CAPTION>
VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF INCOME
(Thousands, except for share amounts)
(Unaudited)
Twelve Months
Ended June 30
2000 1999
<S> <C> <C>
OPERATING REVENUE:
Gas utility $ 527,074 $ 487,185
Electric utility 314,059 299,901
Energy services and other 322,130 222,543
Total operating revenues 1,163,263 1,009,629
OPERATING EXPENSES:
Cost of gas sold 298,738 258,717
Fuel for electric generation 67,063 64,110
Purchased electric energy 23,102 23,681
Cost of energy services and other 304,918 212,397
Other operating 195,448 182,750
Merger costs 30,442 -
Depreciation and amortization 92,672 84,133
Taxes other than income taxes 31,189 27,182
Total operating expenses 1,043,572 852,970
OPERATING INCOME 119,691 156,659
OTHER INCOME
Equity in earnings of unconsolidated
investments 19,654 9,882
Other - net 16,115 6,553
Total other income 35,769 16,435
INTEREST EXPENSE 47,457 40,076
INCOME BEFORE PREFERRED DIVIDENDS AND
INCOME TAXES 108,003 133,018
PREFERRED DIVIDEND REQUIREMENTS
OF SUBSIDIARY 1,074 1,085
INCOME BEFORE INCOME TAXES 106,929 131,933
INCOME TAXES 36,850 43,780
NET INCOME BEFORE MINORITY INTEREST 70,079 88,153
MINORITY INTEREST IN SUBSIDIARY 1,210 562
NET INCOME $ 68,869 $ 87,591
AVERAGE COMMON SHARES OUTSTANDING 61,281 61,424
DILUTED COMMON SHARES OUTSTANDING 61,362 61,598
BASIC EARNINGS PER AVERAGE
SHARE OF COMMON STOCK $ 1.12 $ 1.43
DILUTED EARNINGS PER AVERAGE
SHARE OF COMMON STOCK $ 1.12 $ 1.42
</TABLE>
<TABLE>
<CAPTION>
VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(Thousands - Unaudited)
June 30 December 31
ASSETS 2000 1999 1999
<S> <C> <C> <C>
Current Assets:
Cash and cash equivalents $ 18,727 $ 11,307 $ 17,351
Temporary investments 1,048 583 903
Accounts receivable, less
reserves of $5,469,
$3,890 and $3,949 110,533 79,288 123,612
Accrued unbilled revenues 20,347 19,599 55,370
Inventories 34,118 46,367 58,863
Prepaid gas delivery service 20,969 11,645 20,937
Prepayments and other
current assets 25,758 25,737 28,676
Total current assets 231,500 194,526 305,712
Utility Plant:
Original cost 2,398,714 2,318,750 2,367,831
Less accumulated depreciation
and amortization 1,059,500 1,007,135 1,031,498
Net utility plant 1,339,214 1,311,615 1,336,333
Other Investments:
Investments in leveraged
leases 89,822 35,990 85,737
Investments in partnerships
and other corporations 76,819 76,273 74,644
Notes receivable 61,736 20,955 32,271
Other 1,019 4,384 996
Total other investments 229,396 137,602 193,648
Nonutility property, net of
accumulated depreciation 86,496 60,329 64,474
Other Assets:
Deferred charges 29,347 15,787 23,623
Unamortized debt 15,740 16,236 15,843
Demand side management
programs 25,845 24,995 25,298
Other 6,950 10,324 15,536
Total other assets 77,882 67,342 80,300
TOTAL ASSETS $1,964,488 $1,771,414 $1,980,467
</TABLE>
<TABLE>
<CAPTION>
VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(Thousands - Unaudited)
June 30 December 31
LIABILITIES AND SHAREHOLDERS' 2000 1999 1999
EQUITY
<S> <C> <C> <C>
Current Liabilities:
Current portion of
adjustable rate bonds
subject to tender $ 53,700 $ 53,700 $ 53,700
Current maturities of
long-term debt and other
obligations 258 10,814 776
Short-term borrowings 218,012 138,754 207,638
Accounts payable 100,351 63,243 95,827
Refunds to customers and
customer deposits 12,718 33,474 27,396
Accrued taxes 14,845 19,806 26,602
Accrued interest 11,404 8,609 12,097
Other current liabilities 47,581 50,580 49,467
Total current liabilities 458,869 378,980 473,503
Deferred Credits and Other
Liabilities:
Deferred income taxes 205,478 205,359 215,520
Accrued postretirement
benefits other than pensions 43,388 40,683 40,942
Unamortized investment tax
credit 24,346 26,704 25,524
Other 18,414 7,467 8,297
Total deferred credits and
other liabilities 291,626 280,213 290,283
Minority interest in subsidiary 1,498 987 916
Capitalization:
Long-term debt and other
obligations 484,607 388,409 486,726
Preferred stock of subsidiary:
Redeemable 8,076 8,192 8,192
Nonredeemable 11,090 11,090 11,090
Total preferred stock 19,166 19,282 19,282
Common stock - issued and
outstanding 61,189, 61,288
and 61,305 shares,
respectively 213,742 215,018 215,917
Retained earnings 494,909 488,597 93,918
Accumulated other 71 (72) (78)
comprehensive income
Total common shareholders'
equity 708,722 703,543 709,757
Total capitalization 1,212,495 1,111,234 1,215,765
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $1,964,488 $1,771,414 $1,980,467
</TABLE>
<TABLE>
<CAPTION>
VECTREN CORPORATION
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Thousands - Unaudited)
Six Months Twelve Months
Ended June 30 Ended June 30
2000 1999 2000 1999
<S> <C> <C> <C> <C>
CASH FLOWS FROM (REQUIRED FOR)
OPERATING ACTIVITIES:
Net income $ 30,398 $ 52,277 $ 68,869 $ 87,591
Adjustments to reconcile
net income to cash
provided from
operating activities -
Depreciation and
amortization 48,693 43,019 92,672 84,133
Preferred dividend
requirement 535 539 1,074 1,085
Deferred income
taxes and invest-
ment tax credit (11,220) (433) (2,239) 6,739
(Gain) on sale of
assets (8,961) 730 (8,961) 730
Undistributed earnings of
unconsolidated
affiliates (7,551) (6,539) (12,654) (9,882)
21,496 37,316 69,892 82,805
Changes in assets and liabilities -
Receivables - net 50,398 60,117 (29,697) 5,720
Inventories 24,745 20,319 12,249 213
Accounts payable,
refunds to
customers,
customer deposits,
and other current
liabilities (12,040) (21,288) 13,353 1,194
Accrued taxes and
interest (12,450) 3,301 (2,166) (2,682)
Prepayments and
other current assets 2,918 (4,520) (21) (7,837)
Prepaid gas delivery (32) (11,645) (9,324) (11,645)
Accrued post-
retirement benefits
and other pensions 2,446 3,196 2,705 2,156
Other 2,694 875 (1,703) 7,296
Total adjustments 80,175 87,671 55,288 77,220
Net cash flows
from operating
activities 110,573 139,948 124,157 164,811
CASH FLOWS FROM (REQUIRED FOR) FINANCING ACTIVITIES:
Change in common stock - (2,248) - (7,164)
Retirement of
preferred stock (116) (116) (116) (232)
Proceeds from long-
term debt - - 110,000 22,200
Retirement of long-
term debt and other
obligations (2,637) (46,466) (24,358) (85,009)
Net change in short-
term borrowings 10,374 12,771 79,258 103,470
Dividends on common
stock (29,533) (28,266) (58,798) (56,449)
Other - - - 330
Net cash flows from
(required for)
financing
activities (21,912) (64,325) 105,986 (22,854)
CASH FLOWS (REQUIRED FOR) INVESTING
ACTIVITIES:
Capital expenditures (62,871) (63,381) (129,192) (130,135)
Demand Side Management
program expenditures (547) 51 (850) (346)
Investment in
leveraged leases (211) 13 (46,510) (275)
Investments in
partnerships and
other corporations (8,737) (2,976) (10,956) 13,125)
Non-regulated
investments
in unconsolidated
affiliates - net 8,465 (5,521) 8,465 (9,447)
Change in notes
receivable (29,465) (583) (40,781) (3,530)
Change in nonutility
property (10,086) (796) (17,917) (4,544)
Cash distributions
from unconsolidated
affiliates 3,261 3,113 4,898 4,436
Proceeds from sale of
assets - - - 4,113
Other 12,906 (1,627) 10,120 (6,153)
Net cash flows
(required for)
investing activities (87,285) (71,707) (222,723) (159,006)
NET INCREASE (DECREASE)
IN CASH EQUIVALENTS 1,376 3,916 7,420 (17,049)
CASH AND CASH EQUIVALENTS
AT BEGINNING OF PERIOD 17,351 7,391 11,307 28,356
CASH AND CASH EQUIVALENTS
AT END OF PERIOD $ 18,727 $ 11,307 $ 18,727 $ 11,307
</TABLE>
