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FORM 8-K
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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
CURRENT REPORT
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Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (date of earliest event Reported) April 12, 1996
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THE COLUMBIA GAS SYSTEM, INC.
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(Exact name of registrant as specified in its charter)
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<S> <C> <C>
Delaware 1-1098 13--1594808
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(State of other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
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20 Montchanin Road, Wilmington, Delaware 19807
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(Address of principal executive offices)
Registrant's telephone number, including area code (302) 429-5000
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Item 5. Other Events
Information contained in a News Release dated April 12, 1996, is
incorporated herein by reference.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
The Columbia Gas System, Inc.
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(Registrant)
By /s/ R. E. Lowe
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Vice President &
Controller
Date: April 12, 1996
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Contacts: Media - Bill Chaddock (302) 429-5261
Bill McLaughlin (302) 429-5443
Analysts - Tom Hughes (302) 429-5363
Ken Murphy (302) 429-5471
FOR IMMEDIATE RELEASE April 12, 1996
COLUMBIA GAS REPORTS STRONG FIRST QUARTER NET INCOME
WILMINGTON, DEL. --- The Columbia Gas System, Inc., (NYSE:CG) today
reported first quarter net income of $151.3 million, or $2.99 per share. This
compares to reported net income for the first quarter of 1995 of $128.8
million, or $2.55 per share, and to $95.2 million, or $1.88 per share, after
adjusting for bankruptcy-related items and unrecorded interest expense.
Columbia System Chairman Oliver G. (Rick) Richard III pointed out that
each of Columbia's business segments posted improved results in the current
period due to higher rates for the transmission and distribution companies and
to colder temperatures that resulted in higher average wellhead prices for
natural gas production, increased distribution segment throughput, and
improved propane sales.
Richard also cited several major developments during the quarter: "We
reached an agreement for the sale of Columbia Gas Development Corporation, our
southwest oil and gas company, to Hunt Petroleum Corporation for approximately
$200 million; our common stock offering was oversubscribed generating $239.2
million in new capital; our principal interstate pipeline subsidiary filed for
a $350 million expansion that will result in a 7 percent increase in peak day
capacity when completed in 1999; and we announced plans to build a new
corporate center in northern Virginia where we will consolidate the corporate
headquarters and other key corporate functions in order to realize economies
and efficiencies." The sale of Columbia Development is expected to be
completed April 30, 1996, to be effective December 31, 1995.
Columbia had 55,015,505 shares of common stock outstanding on March
31, 1996. However, earnings per share calculations are based on the average
number of shares outstanding during the two periods, which were 50,662,440
shares in the current quarter and 50,563,335 shares in the first quarter of
1995.
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OPERATING RESULTS
First quarter operating income for the transmission segment was $85.6
million, an increase of $9 million over the same period in 1995. This was
principally due to higher rates Columbia Gas Transmission Corp. began
collecting, subject to refund, on February 1, permitting higher recovery of
operating costs that have increased since the company's last general rate
increase in 1991. Partially offsetting the rate increase was the effect of
$5.3 million in revenue, recorded in 1995, that resulted from exit fees paid to
Columbia Gulf Transmission Co.
Colder weather combined with higher rates now in effect in
Pennsylvania, Kentucky, Maryland and Virginia resulted in distribution segment
operating income of $168 million during the current quarter, a $51.8 million
increase over the first quarter of 1995. Temperatures were 13 percent colder
than unseasonably mild temperatures experienced last year and were the
principal reason distribution segment throughput increased 14.7 billion cubic
feet to 224.6 billion cubic feet. Operating and maintenance expense is
essentially unchanged from last year as the distribution units are benefiting
from efficiency measures and the streamlining of operations.
Operating income for the oil and gas segment was $10.8 million in the
current period, compared to a loss of $100,000 last year. This reflects higher
average prices of $3.14 per thousand cubic feet for Appalachian gas production
this year, a 38 percent ($0.87 per thousand cubic feet) increase over 1995.
The significant increase in gas prices resulted primarily from colder weather
in the eastern United States.
Operating income for other energy operations was $16.7 million, an
$8.8 million increase over the same period in 1995. This was primarily due to
colder weather that increased propane sales and gas marketing activities.
The Columbia Gas System, Inc., is one of the nation's largest natural
gas systems with assets in excess of $6 billion. Its operating companies are
engaged in all phases of the natural gas business, provide marketing and fuel
management services and generate electric power. Columbia companies, directly
or indirectly, serve more than seven million gas users in 15 states and the
District of Columbia. Information about Columbia and its operating units is
available on the World Wide Web at http://www.columbiaenergy.com.
# # #
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THE COLUMBIA GAS SYSTEM, INC.
Summary of Financial Operating Data
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<CAPTION>
Three Months
Ended March 31,
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1996 1995
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Income Statement Data
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($ millions)
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Total Operating Revenue . . . . . . . . . . . . . . . . . . . 1,203.0 1,030.7
Net Income . . . . . . . . . . . . . . . . . . . . . . . . . 151.3 128.8
Operating Income (Loss) by Segment:
Transmission . . . . . . . . . . . . . . . . . . . . . . . 85.6 76.6
Distribution . . . . . . . . . . . . . . . . . . . . . . . . 168.0 116.2
Oil and Gas . . . . . . . . . . . . . . . . . . . . . . . . 10.8 (0.1)
Other Energy . . . . . . . . . . . . . . . . . . . . . . . 16.7 7.9
Corporation . . . . . . . . . . . . . . . . . . . . . . . . (2.9) (0.7)
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Total . . . . . . . . . . . . . . . . . . . . . . . . . . . 278.2 199.9
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Per Share Data
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Earnings on Common Stock . . . . . . . . . . . . . . . . . . . $2.99 $2.55
Average Common Shares Outstanding (millions) . . . . . . . . . 50.7 50.6
Capitalization as of March 31, (in millions)
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March 31, December 31,
1996 1995
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Common Stock Equity
Common stock, par value $10 per share - outstanding 55,015,505 and
50,563,335 shares, respectively. . . . . . . . . . . . . . . 550.2 506.2
Additional paid in capital . . . . . . . . . . . . . . . . . . 735.2 595.8
Retained earnings . . . . . . . . . . . . . . . . . . . . . . 213.8 69.8
Less: Cost of treasury stock (1,416,155 shares outstanding
as of December 31, 1995) . . . . . . . . . . . . . . . . . . - (57.8)
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Total Common Stock Equity . . . . . . . . . . . . . . . . . . . . 1,499.2 1,114.0
Preferred Stock . . . . . . . . . . . . . . . . . . . . . . . . . - 399.9
Long-Term Debt . . . . . . . . . . . . . . . . . . . . . . . . . . 2,004.2 2,004.5
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Total Capitalization . . . . . . . . . . . . . . . . . . . . . . . 3,503.4 3,518.4
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THE COLUMBIA GAS SYSTEM, INC.
Summary of Financial Operating Data
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<CAPTION>
Three Months
Ended March 31,
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1996 1995
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Operating Data
Oil and Gas Volumes:
Gas Production (billion cubic feet) . . . . . . . . . . . .
Appalachian . . . . . . . . . . . . . . . . . . . . . . . 8.5 9.1
Southwest . . . . . . . . . . . . . . . . . . . . . . . . - 8.6
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Total . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.5 17.7
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Oil Production (000 barrels) . . . . . . . . . . . . . . .
Appalachian . . . . . . . . . . . . . . . . . . . . . . . 70 78
Southwest . . . . . . . . . . . . . . . . . . . . . . . . - 664
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Total . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 742
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Transmission (billion cubic feet):
Transportation
Columbia Transmission
Market Area . . . . . . . . . . . . . . . . . . . . . 429.5 401.2
Columbia Gulf
Main-line . . . . . . . . . . . . . . . . . . . . . . 170.2 154.9
Short-haul . . . . . . . . . . . . . . . . . . . . . . 69.3 50.7
Intrasegment Eliminations . . . . . . . . . . . . . . . . (166.5) (151.3)
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Total Throughput . . . . . . . . . . . . . . . . . . . . . . 502.5 455.5
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Distribution (billion cubic feet)
Gas Sales . . . . . . . . . . . . . . . . . . . . . . . . . 153.0 133.1
Transportation . . . . . . . . . . . . . . . . . . . . . . 71.6 76.8
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Total Throughput . . . . . . . . . . . . . . . . . . . . . . . 224.6 209.9
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Degree Days-Distribution Service Territory
Actual . . . . . . . . . . . . . . . . . . . . . . . . . 3,102 2,758
Normal . . . . . . . . . . . . . . . . . . . . . . . . . 2,979 2,947
% Colder (warmer) than normal . . . . . . . . . . . . . . 4 (6)
% Colder (warmer) than prior period . . . . . . . . . . . 13 (12)
Bankruptcy-related and Unusual Items
After-tax effect on Net Income
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Reported Net Income . . . . . . . . . . . . . . . . . . . . . . . 151.3 128.8
Less:
Bankruptcy related items
Estimated interest costs not recorded on prepetition debt prior
to emergence . . . . . . . . . . . . . . . . . . . . . . - 40.4
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Professional fees and related expenses . . . . . . . . . - (6.8)
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Total adjustments . . . . . . . . . . . . . . . . . . . . . . - 33.6
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Net Income after adjusting for bankruptcy and unusual items . . . 151.3 95.2
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