SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) JULY 19, 1996
EQUITABLE RESOURCES, INC.
(Exact name of registrant as specified in its charter)
PENNSYLVANIA 1-3551 25-0464690
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
420 BOULEVARD OF THE ALLIES, PITTSBURGH, PENNSYLVANIA 15219
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (412) 261-3000
NONE
(Former name or former address, if changed since last report)
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ITEM 7. Financial Statements, Pro Forma Financial Information and Exhibits
(c) Exhibits
A press release announcing earnings for the second quarter of 1996 is
filed as Exhibit 99 to this report.
SIGNATURE
Pursuant to the requirements of Section 12 of the Securities Exchange
Act of 1934, as amended, the registrant has duly caused this report to be signed
on its behalf by the undersigned, thereto duly authorized.
EQUITABLE RESOURCES, INC.
(Registrant)
By /s/ Jeffrey C. Swoveland
Jeffrey C. Swoveland
Vice President - Finance
and Treasurer
July 19, 1996
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EXHIBIT INDEX
Exhibit Sequential
No. Document Description Page No.
99 Press release announcing earnings 4
for the second quarter of 1996
Exhibit 99
CONNIE KOVOLENKO
(412) 553-5911
JULY 19, 1996
EQUITABLE RESOURCES REPORTS SECOND QUARTER EARNINGS AND DIVIDEND
PITTSBURGH -- Equitable Resources Inc. (ERI)(NYSE:EQT) reported net income
of $.9 million, or 3 cents per share, for the three months ended June 30, 1996,
compared with a loss of $1.2 million, or 3 cents per share a year ago. The
Company also announced a regular quarterly dividend of 29 1/2 cents per share
payable September 1, 1996 to holders of record at the close of business August
15, 1996.
The 1996 period improvement occurred despite a nonrecurring, after-tax
charge of $1.2 million, or 4 cents per share, for the closing of natural gas
price hedge positions related to production for the second half of 1996. The
1995 period also reflected a one-time after-tax charge of $2.9 million or 8
cents per share for an investment write-off and restructuring and reengineering
costs.
Operating results for the current quarter benefited from lower operating
expenses and increased marketed gas sales at higher margins. Operating expenses
for the quarter were lower despite $1.5 million of start-up costs for ERI
Services, the company's new unregulated energy services marketing operation.
Lower interest expense also contributed to the improvement in earnings.
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The decision to close some of the Company's natural gas hedge positions
was in response to unprecedented basis differentials, or gaps, between the New
York Mercantile Exchange prices and regional cash prices. In the western
producing region of the U.S., the gap reached over 100 percent of the Rocky
Mountain selling price negatively impacting many gas producers. The Company's
hedging difficulties were aggravated by the slight decline in second quarter
natural gas production.
"Results for the quarter would have been more of a positive year-over-year
comparison were they not affected by gas pricing disparities and ERI
Services-related investment costs," said Frederick H. Abrew, president and chief
executive officer of ERI. "As ERI's traditional businesses continue to perform
well, we recognize the opportunity to expand our role and product line
geographically through ERI Services which is aimed at the total energy
customer."
ERI is a full service energy marketing company. It offers energy solutions
to the wholesale and retail markets with innovative products and services
developed through its exploration, production, storage, transportation and
distribution of natural gas and electricity operations. ERI is also engaged in
the production of natural gas liquids and crude oil.
(TABLE FOLLOWS)
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<TABLE>
<CAPTION>
EQUITABLE RESOURCES, INC. AND SUBSIDIARIES
STATEMENTS OF CONSOLIDATED INCOME (UNAUDITED)
(Thousands Except Per Share Amounts)
Three Months Ended Six Months Ended Twelve Months Ended
June 30, June 30, June 30,
1996 1995 1996 1995 1996 1995
<S> <C> <C> <C> <C> <C> <C>
Operating Revenues............ $ 391,767 $ 316,534 $ 1,032,045 $ 721,225 $ 1,736,810(B) $ 1,362,845
Cost of Energy Purchased...... 296,372 218,721 771,843 477,278 1,205,923 901,206
-------------- ----------- ------------- ----------- ------------ ------------
Net operating revenues........ 95,395 97,813 260,202 243,947 530,887 461,639
Operating Expenses............ 86,412 92,781 181,816 190,603 483,893(C) 369,080
-------------- ----------- ------------- ----------- ------------ ------------
Operating Income.............. 8,983 5,032 78,386 53,344 46,994 92,559
Other Income.................. 2,686 447 4,855 (164) 5,406 2,491
Interest Charges.............. 9,938 12,678 20,412 25,544 44,966 48,520
-------------- ----------- ------------- ----------- ------------ ------------
Income (Loss)
Before Income Taxes......... 1,731 (7,199) 62,829 27,636 7,434 46,530
Income Taxes (Benefit)........ 803 (6,037) 23,175 1,044 (7,175) 1,625
-------------- ----------- ------------- ----------- ------------ ------------
Net Income (Loss)............. $ 928 $ (1,162) $ 39,654 $ 26,592 $ 14,609 $ 44,905
============== =========== ============= =========== ============ ============
Average Common
Shares Outstanding.......... 35,113 34,703 35,070 34,666 34,989 34,601
============== =========== ============= =========== ============ ============
Earnings (Loss) Per Share..... $.03 $(.03) $1.13 $.77 $.42 $1.30
==== ==== ===== ==== ==== =====
<FN>
Notes:
(A) Due to the seasonal nature of the business, the interim statements for the
three-month and six-month periods are not indicative of results for a full
year.
(B) Includes nonrecurring revenues of $45.0 million related to the Columbia
Gas bankruptcy settlement recorded in the fourth quarter of 1995.
(C) Includes nonrecurring charges of $121.1 million related to impairment of
assets recorded in the fourth quarter of 1995.
</FN>
</TABLE>
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<TABLE>
<CAPTION>
Equitable Resources, Inc. and Subsidiaries
Segment Reporting Information
Quarter Ended June 30, 1996
Exploration Energy Natural Gas Natural Gas Intersegment
and Production Marketing Distribution Transmission Eliminations Consolidated
(Thousands)
<S> <C> <C> <C> <C> <C> <C>
Operating Revenues:
Residential retail gas sales.... $ $ $ 40,613 $ $ $ 40,613
Commercial retail gas sales..... 12,684 12,684
Industrial and utility gas sales 24,177 363 (2,861) 21,679
Transportation of gas........... 1,478 665 14,167 (7,416) 8,894
Storage of gas.................. 150 3,572 (1,846) 1,876
Sale of produced natural gas.... 19,578 (3,600) 15,978
Marketed natural gas............ 63 264,834 7,291 (24,379) 247,809
Sale of produced oil............ 6,757 6,757
Sale of natural gas liquids..... 5,488 19,106 24,594
Contract drilling............... 5,007 5,007
Other........................... 1,489 1,688 1,844 1,230 (375) 5,876
----------- ---------- ---------- --------- ------------- ------------
Total revenues............. 38,382 287,256 79,983 26,623 (40,477) 391,767
Cost of Energy Purchased.............. 3,727 275,809 52,704 2,920 (38,788) 296,372
----------- ---------- ---------- --------- -------------- ------------
Net operating
revenues............ 34,655 11,447 27,279 23,703 (1,689) 95,395
----------- ---------- ---------- --------- ------------- ------------
Operating Expenses:
Production...................... 7,686 7,686
Exploration..................... 2,422 2,422
Gas liquids processing.......... 1,333 2,580 3,913
Contract drilling............... 3,825 3,825
Other........................... 7,772 5,313 23,368 13,742 (1,705) 48,490
Depreciation and depletion...... 10,983 2,595 4,039 2,459 20,076
----------- ---------- ---------- --------- ------------- ------------
Total operating expenses... 34,021 10,488 27,407 16,201 (1,705) 86,412
----------- ---------- ---------- --------- ------------- ------------
Operating Income (Loss)............... $ 634 $ 959 $ (128) $ 7,502 $ 16 $ 8,983
=========== ========== ========== ========= ============= ============
Sales Quantity:
Residential retail gas sales
- MMcf....................... 4,284 4,284
Commercial retail gas sales..... 1,982 1,982
Industrial and utility gas sales 8,499 (1,112) 7,387
Transportation deliveries....... 54,057 979 30,542 (22,648) 62,930
Produced natural gas sales...... 13,711 (104) 13,607
Marketed natural gas sales...... 13 141,860 2,571 (11,763) 132,681
Oil - thousands of barrels...... 442 442
Natural gas liquids -
thousands of gallons....... 16,261 93,449 109,710
Average Selling Price:
Residential retail gas sales -
per Mcf....................... $ 9.480
Commercial retail gas sales..... 6.400
Industrial and utilities
gas sales..................... 2.845 N.M.
Produced natural gas sales...... $ 1.428
Marketed natural gas sales...... 4.846 $ 1.867 $ 2.836
Oil - per barrel................ 15.287
Natural gas liquids - per gallon .337 .204
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<TABLE>
<CAPTION>
SEGMENT REPORTING INFORMATION
EQUITABLE RESOURCES, INC., AND SUBSIDIARIES
Quarter Ended June 30, 1995
Exploration Energy Natural Gas Natural Gas Intersegment
and Production Marketing Distribution Transmission Eliminations Consolidated
(Thousands)
Operating Revenues:
<S> <C> <C> <C> <C> <C> <C>
Residential retail gas sales......... $ $ $ 39,303 $ $ $ 39,303
Commercial retail gas sales.......... 5,372 5,372
Industrial and utility gas sales..... 11,929 363 (5,348) 6,944
Transportation of gas................ 2,417 5,660 14,950 (10,906) 12,121
Storage of gas....................... 4,352 (1,974) 2,378
Sale of produced natural gas......... 26,024 (3,068) 22,956
Marketed natural gas................. 315 210,787 3,791 (20,988) 193,905
Sale of produced oil................. 8,635 8,635
Sale of natural gas liquids.......... 5,278 13,806 19,084
Contract drilling.................... 2,857 2,857
Other................................ 990 226 1,392 1,529 (1,158) 2,979
-------- -------- -------- --------- --------- ----------
Total revenues.................. 44,099 227,236 63,656 24,985 (43,442) 316,534
Cost of Energy Purchased................... 2,642 218,080 37,993 2,827 (42,821) 218,721
--------- ---------- ---------- --------- -------- -----------
Net operating
revenues................... 41,457 9,156 25,663 22,158 (621) 97,813
--------- ---------- ---------- --------- -------- -----------
Operating Expenses:
Production........................... 7,810 7,810
Exploration.......................... 3,767 3,767
Gas liquids processing............... 1,092 1,287 2,379
Contract drilling.................... 1,834 1,834
Other................................ 10,202 3,232 21,324 14,117 (683) 48,192
Depreciation and depletion........... 19,363 2,905 4,105 2,426 28,799
--------- ---------- ---------- --------- -------- -----------
Total operating
expenses........................ 44,068 7,424 25,429 16,543 (683) 92,781
--------- ---------- ---------- --------- -------- -----------
Operating Income (Loss).................... $ (2,611) $ 1,732 $ 234 $ 5,615 $ 62 $ 5,032
=========- ========== ========== ========= ======== ===========
Sales Quantity:
Residential retail gas
sales - MMcf....................... 4,070 4,070
Commerical retail gas sales.......... 581 581
Industrial and utility gas sales..... 6,190 6,190
Transportation deliveries............ 30,929 3,126 27,765 (22,206) 39,614
Produced natural gas sales........... 17,564 (80) 17,484
Marketed natural gas sales........... 138 133,058 1,958 (15,503) 119,651
Oil - thousands of barrels........... 500 500
Natural gas liquids -
thousands of gallons............ 16,087 49,791 65,878
Average Selling Price:
Residential retail gas
sales - per Mcf.................... $ 9.657
Commercial retail gas sales.......... 9.246
Industrial and utility gas sales..... 1.927 N.M.
Produced natural gas sales........... $ 1.482
Marketed natural gas sales........... 2.283 $ 1.584 $ 1.936
Oil - per barrel..................... 17.270
Natural gas liquids -
per gallon.......................... .328 .277
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