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 26, 1995
THE MONTANA POWER COMPANY
(Exact name of registrant as specified in its charter)
Montana 1-4566 81-0170530
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
40 East Broadway, Butte, Montana 59701
(Address of principal executive offices) (zip code)
Registrant's telephone number, including area code (406) 723-5421
Exhibit Index is found on page 5.
<PAGE>
ITEM 5. Other Events
Second Quarter Net Income
Consolidated net income for the quarter ended June 30, 1995, was
11 cents per share as compared with 17 cents per share for the second quarter
of 1994. The decrease in consolidated net income was primarily the result of
reduced profits in Entech's coal division. Coal sales at Western Energy
decreased as a result of a loss of a Midwestern contract and reduced volumes
sold to the Colstrip generating units due to reduced steam generation.
Production problems at Entech's underground mine in Colorado further reduced
consolidated net income. The decrease was tempered by an increase in the
Utility division's net income. Lower wholesale prices favorably impacted the
utility's cost of providing electric power. In addition, cooler weather
resulted in increased natural gas sales.
Consolidated net income for the six months ended June 30, 1995 was
71 cents per share as compared with 88 cents for the same period last year.
Consolidated net income decreased approximately 5 cents per share due to a
retroactive adjustment reflecting a coal arbitration decision reducing the
price charged per ton of coal sold to Colstrip Units 1 & 2. While the
decision negatively impacted Entech's earnings, the Utility benefited through
lower fuel costs. The previously mentioned coal sales reductions and
production problems at the Colorado mine also reduced consolidated net income.
Consolidated net income for the twelve months ended June 30, 1995, was
$1.83 per share, a decrease of 19 cents per share from the same period last
year. The decrease resulted primarily from the previously discussed coal
arbitration decision, weak electric wholesale market conditions, reduced coal
sales and production problems at the Colorado mine. The decrease was moderated
considerably by increases in Independent Power Group (IPG) earnings and
investment income.
For comparative purposes, the following table shows the breakdown of
consolidated net income per share by principal business segment.
Quarter Ended
1995 1994
Utility Operations $ 0.04 $ (0.01)
Entech 0.06 0.18
Independent Power Group 0.01 -
Consolidated $ 0.11 $ 0.17
Six Months Ended
1995 1994
Utility Operations $ 0.58 $ 0.45
Entech 0.09 0.41
Independent Power Group 0.04 0.02
Consolidated $ 0.71 $ 0.88
<PAGE>
Twelve Months Ended
1995 1994
Utility Operations $ 1.03 $ 1.05
Entech 0.58 0.96
Independent Power Group 0.22 0.01
Consolidated $ 1.83 $ 2.02
<PAGE>
ITEM 7. Exhibits
99a Consolidated Statements of Income for the Quarters Ended June 30, 1995
and 1994, Six Months Ended June 30, 1995 and 1994, and for the Twelve
Months Ended June 30, 1995 and 1994.
99b Utility Operations Schedule of Revenues and Expenses for the Quarters
Ended June 30, 1995 and 1994, Six Months Ended June 30, 1995 and 1994
and for the Twelve Months Ended June 30, 1995 and 1994.
99c Entech Operations Schedule of Revenues and Expenses for the Quarters
Ended June 30, 1995 and 1994, Six Months Ended June 30, 1995 and 1994
and for the Twelve Months Ended June 30, 1995 and 1994.
99d Independent Power Group Operations Schedule of Revenues and Expenses for
the Quarters Ended June 30, 1995 and 1994, Six Months Ended June 30,
1995 and 1994 and for the Twelve Months Ended June 30, 1995 and 1994.
<PAGE>
Exhibit Index
Exhibit Page
99a Consolidated Statement of Income for the Quarters Ended
June 30, 1995 and 1994, Six Months Ended June 30, 1995 and
1994 and for the Twelve Months Ended June 30, 1995 and 1994. 6
99b Utility Operations Schedule of Revenues and Expenses for
the Quarters Ended June 30, 1995 and 1994, Six Months
Ended June 30, 1995 and 1994 and for the Twelve Months
Ended June 30, 1995 and 1994. 7
99c Entech Operations Schedule of Revenues and Expenses for the
Quarters Ended June 30, 1995 and 1994, Six Months Ended
June 30, 1995 and 1994 and for the Twelve Months Ended
June 30, 1995 and 1994. 8
99d Independent Power Group Operations Schedule of Revenues
and Expenses for the Quarters Ended June 30, 1995 and 1994,
Six Months Ended June 30, 1995 and 1994 and for the Twelve
Months Ended June 30, 1995 and 1994. 10
<PAGE>
<TABLE>
CONSOLIDATED STATEMENT OF INCOME Exhibit 99a
The Montana Power Company and Subsidiaries
<CAPTION>
Quarter Ended Six Months Ended Twelve Months Ended
June 30, June 30, June 30,
1995 1994 1995 1994 1995 1994
Thousands of Dollars
<S> <C> <C> <C> <C> <C> <C>
REVENUES . . . . . . . . . . . . . . . . . . . $ 205,522 $ 205,446 $ 467,805 $ 483,261 $ 990,496 $ 989,786
EXPENSES:
Operations . . . . . . . . . . . . . . . . . 96,223 90,893 210,336 206,825 445,085 430,358
Maintenance. . . . . . . . . . . . . . . . . 20,681 23,136 36,021 39,447 71,931 75,814
Selling, general and administrative. . . . . 22,951 25,280 50,312 51,066 101,670 99,368
Taxes other than income taxes. . . . . . . . 23,140 22,755 45,060 48,809 95,450 97,851
Depreciation, depletion and amortization . . 21,604 21,420 44,170 43,643 86,840 85,109
184,599 183,484 385,899 389,790 800,976 788,500
INCOME FROM OPERATIONS . . . . . . . . . . . 20,923 21,962 81,906 93,471 189,520 201,286
INTEREST EXPENSE AND OTHER INCOME:
Interest . . . . . . . . . . . . . . . . . . 10,792 10,555 21,747 21,337 43,227 45,686
Other (income) deductions - net. . . . . . . 255 (2,777) (1,325) (2,656) (8,139) (12,548)
11,047 7,778 20,422 18,681 35,088 33,138
INCOME TAXES . . . . . . . . . . . . . . . . . 2,306 3,475 19,582 24,903 48,825 56,080
NET INCOME . . . . . . . . . . . . . . . . . . 7,570 10,709 41,902 49,887 105,607 112,068
DIVIDENDS ON PREFERRED STOCK . . . . . . . . . 1,807 1,807 3,614 3,614 7,227 6,072
NET INCOME AVAILABLE FOR COMMON STOCK. . . . . $ 5,763 $ 8,902 $ 38,288 $ 46,273 $ 98,380 $ 105,996
AVERAGE NUMBER OF COMMON SHARES
OUTSTANDING (000). . . . . . . . . . . . . . 53,976 53,009 53,857 52,876 53,616 52,580
NET INCOME PER SHARE OF COMMON STOCK . . . . . $ 0.11 $ 0.17 $ 0.71 $ 0.88 $ 1.83 $ 2.02
</TABLE>
<PAGE>
<TABLE>
UTILITY OPERATIONS Exhibit 99b
<CAPTION>
Quarter Ended Six Months Ended Twelve Months Ended
June 30, June 30, June 30,
1995 1994 1995 1994 1995 1994
Thousands of Dollars
ELECTRIC UTILITY:
<S> <C> <C> <C> <C> <C> <C>
REVENUES:
Revenues . . . . . . . . . . . . . . . . . . $ 84,625 $ 83,752 $ 201,809 $ 205,020 $ 424,293 $ 431,126
Intersegment revenues. . . . . . . . . . . . 1,655 1,666 3,228 3,201 6,133 2,654
86,280 85,418 205,037 208,221 430,426 433,780
EXPENSES:
Power supply . . . . . . . . . . . . . . . . 32,885 35,701 68,232 81,792 165,366 167,758
Transmission and distribution. . . . . . . . 6,705 7,451 13,134 13,947 26,753 28,108
Selling, general and administrative. . . . . 9,334 11,296 21,382 23,447 44,069 45,708
Taxes other than incomes taxes . . . . . . . 11,670 10,469 23,275 21,199 44,290 40,864
Depreciation and amortization. . . . . . . . 10,631 10,174 21,251 20,349 41,600 39,923
71,225 75,091 147,274 160,734 322,078 322,361
INCOME FROM ELECTRIC OPERATIONS 15,055 10,327 57,763 47,487 108,348 111,419
NATURAL GAS UTILITY:
REVENUES:
Revenues (other than gas
supply cost revenues). . . . . . . . . . . 17,194 15,279 49,294 44,922 93,468 87,358
Gas supply cost revenues . . . . . . . . . . 4,488 3,422 13,386 10,993 20,584 19,436
Intersegment revenues. . . . . . . . . . . . 187 196 542 391 885 346
21,869 18,897 63,222 56,306 114,937 107,140
EXPENSES:
Gas supply costs . . . . . . . . . . . . . . 4,488 3,422 13,386 10,993 20,584 19,436
Other production, gathering & exploration. . 2,583 2,245 5,198 4,072 10,009 8,019
Transmission and distribution. . . . . . . . 2,930 2,538 5,511 4,870 10,794 9,517
Selling, general and administrative. . . . . 4,612 4,671 9,128 9,006 18,188 17,625
Taxes other than income taxes. . . . . . . . 3,728 3,279 7,273 6,699 14,283 13,319
Depreciation, depletion & amortization . . . 2,574 2,340 5,146 4,723 9,868 9,209
20,915 18,495 45,642 40,363 83,726 77,125
INCOME FROM GAS OPERATIONS . . . . . . . . . 954 402 17,580 15,943 31,211 30,015
INTEREST EXPENSE AND OTHER INCOME:
Interest . . . . . . . . . . . . . . . . . . 10,804 10,496 21,898 21,245 43,680 45,000
Other (income) deductions - net. . . . . . . (765) (1,349) (2,852) (1,628) (5,185) (1,867)
10,039 9,147 19,046 19,617 38,495 43,133
INCOME BEFORE INCOME TAXES . . . . . . . . . . 5,970 1,582 56,297 43,813 101,064 98,301
INCOME TAXES . . . . . . . . . . . . . . . . . 2,202 420 21,562 16,377 38,356 37,269
UTILITY NET INCOME . . . . . . . . . . . . . . $ 3,768 $ 1,162 $ 34,735 $ 27,436 $ 62,708 $ 61,032
/TABLE
<PAGE>
<TABLE>
ENTECH OPERATIONS Exhibit 99c
<CAPTION>
Quarter Ended Six Months Ended Twelve Months Ended
June 30, June 30, June 30,
1995 1994 1995 1994 1995 1994
Thousands of Dollars
COAL:
<S> <C> <C> <C> <C> <C> <C>
REVENUES:
Revenues . . . . . . . . . . . . . . . . . . $ 49,008 $ 56,275 $ 102,111 $ 121,968 $ 232,715 $ 249,249
Intersegment revenues. . . . . . . . . . . . 6,216 8,173 6,514 19,700 29,016 42,658
55,224 64,448 108,625 141,668 261,731 291,907
EXPENSES:
Cost of sales. . . . . . . . . . . . . . . . 39,277 38,487 79,717 79,827 169,146 165,690
Selling, general and administrative. . . . . 6,749 6,479 14,564 14,075 29,953 26,839
Taxes other than income taxes. . . . . . . . 6,513 7,567 12,053 18,067 31,719 37,834
Depreciation, depletion & amortization . . . 2,504 2,935 6,247 6,449 12,447 11,822
55,043 55,468 112,581 118,418 243,265 242,185
INCOME (LOSS) FROM COAL OPERATIONS 181 8,980 (3,956) 23,250 18,466 49,722
OIL AND NATURAL GAS:
REVENUES:
Revenues . . . . . . . . . . . . . . . . . . 24,209 21,072 47,484 47,276 98,204 101,816
Intersegment revenues. . . . . . . . . . . . 38 77 170 162 262 233
24,247 21,149 47,654 47,438 98,466 102,049
EXPENSES:
Cost of sales. . . . . . . . . . . . . . . . 14,862 10,710 27,723 26,511 55,494 61,017
Selling, general and administrative. . . . . 2,308 2,064 4,550 4,268 8,796 8,492
Taxes other than income taxes. . . . . . . . 684 872 1,314 1,772 2,881 3,729
Depreciation, depletion & amortization . . . 4,744 4,774 9,232 9,370 18,327 18,890
22,598 18,420 42,819 41,921 85,498 92,128
INCOME FROM OIL AND NATURAL GAS OPERATIONS . 1,649 2,729 4,835 5,517 12,968 9,921
OTHER OPERATIONS:
REVENUES:
Revenues . . . . . . . . . . . . . . . . . . 6,092 5,609 12,472 11,141 25,389 21,989
Intersegment revenues. . . . . . . . . . . . 191 173 335 361 781 776
6,283 5,782 12,807 11,502 26,170 22,765
EXPENSES:
Cost of sales. . . . . . . . . . . . . . . . 3,886 3,643 8,242 7,855 17,172 15,431
Selling, general and administrative. . . . . 1,105 1,150 2,376 2,133 4,961 4,110
Taxes other than income taxes. . . . . . . . 82 71 163 143 307 281
Depreciation, depletion & amortization . . . 412 487 815 961 1,799 1,957
5,485 5,351 11,596 11,092 24,239 21,779
INCOME FROM OTHER OPERATIONS . . . . . . . . 798 431 1,211 410 1,931 986
<PAGE>
ENTECH OPERATIONS (CONT.)
Quarter Ended Six Months Ended Twelve Months Ended
June 30, June 30, June 30,
1995 1994 1995 1994 1995 1994
Thousands of Dollars
INTEREST EXPENSE AND OTHER INCOME:
Interest . . . . . . . . . . . . . . . . . . 382 349 2,730 665 3,490 1,701
Other (income) deductions - net. . . . . . . (368) (1,199) (1,595) (641) (3,404) (9,934)
14 (850) 1,135 24 86 (8,233)
INCOME BEFORE INCOME TAXES . . . . . . . . . . 2,614 12,990 955 29,153 33,279 68,862
INCOME TAXES . . . . . . . . . . . . . . . . . (529) 3,218 (3,857) 7,554 2,178 18,492
ENTECH NET INCOME. . . . . . . . . . . . . . . $ 3,143 $ 9,772 $ 4,812 $ 21,599 $ 31,101 $ 50,370
/TABLE
<PAGE>
<TABLE>
INDEPENDENT POWER GROUP OPERATIONS Exhibit 99d
<CAPTION>
Quarter Ended Six Months Ended Twelve Months Ended
June 30, June 30, June 30,
1995 1994 1995 1994 1995 1994
Thousands of Dollars
<S> <C> <C> <C> <C> <C> <C>
REVENUES:
Revenues . . . . . . . . . . . . . . . . . . $ 19,287 $ 19,171 $ 39,307 $ 40,127 $ 92,832 $ 78,882
Earnings from unconsolidated investments . . 428 693 1,608 1,454 2,231 3,732
Intersegment revenue . . . . . . . . . . . . 280 876 616 1,133 943 1,830
19,995 20,740 41,531 42,714 96,006 84,444
EXPENSES:
Operations and maintenance . . . . . . . . . 15,950 19,105 33,227 37,167 71,141 75,480
Selling, general and administrative. . . . . 559 1,334 1,372 1,961 3,498 4,609
Taxes other than income taxes. . . . . . . . 463 496 1,479 929 2,799 3,308
Depreciation and amortization. . . . . . . . 740 710 983 1,793 1,970 1,824
17,712 21,645 37,061 41,850 79,408 85,221
INCOME (LOSS) FROM OPERATIONS. . . . . . . . 2,283 (905) 4,470 864 16,598 (777)
INTEREST EXPENSE AND OTHER INCOME:
Interest . . . . . . . . . . . . . . . . . . 5 4 6 10 18 76
Other (income) deductions - net. . . . . . . 986 (522) 232 (970) (3,509) (1,838)
991 (518) 238 (960) (3,491) (1,762)
INCOME BEFORE INCOME TAXES . . . . . . . . . . 1,292 (387) 4,232 1,824 20,089 985
INCOME TAXES. . . . . . . . . . . . . . . . . 633 (162) 1,877 972 8,291 319
IPG NET INCOME . . . . . . . . . . . . . . . . $ 659 $ (225) $ 2,355 $ 852 $ 11,798 $ 666
</TABLE>
<PAGE>
SIGNATURES
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 thereunto duly authorized.
THE MONTANA POWER COMPANY
(Registrant)
By /s/ J.P. Pederson
J. P. Pederson
Vice President and Chief
Financial Officer
Dated: July 26, 1995
<PAGE>
