Page 1 of 9
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) April 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 4.
<PAGE>
ITEM 5. Other Events
First Quarter Net Income
Consolidated net income for the quarter ended March 31, 1995, was
61 cents per share compared with 71 cents per share for the first quarter of
1994. Approximately one-half of the 10-cent decrease was the result of the
coal arbitration decision received on March 24, 1995, regarding the coal
supply agreement for Colstrip Units 1 and 2 discussed in the Form 8-K filed
March 28, 1995. Consolidated net income was also adversely impacted by a
decrease in utility revenues due to weak wholesale market conditions.
Increased losses at Entech's underground mine in Colorado, resulting from
production problems, also reduced consolidated net income.
Consolidated net income for the twelve months ended March 31, 1995, was
$1.90 per share, a decrease of 3 cents per share from the same period last
year. The decrease resulted primarily from the previously discussed coal
arbitration decision, wholesale market conditions 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. While
Entech's earnings were negatively impacted by the adjustment to revenues from
the coal arbitration decision, the Utility benefited from the decision through
a related reduction of power supply expense.
Quarter Ended
1995 1994
Utility Operations $ 0.55 $ 0.46
Entech 0.03 0.23
Independent Power Group 0.03 0.02
Consolidated $ 0.61 $ 0.71
Twelve Months Ended
1995 1994
Utility Operations $ 0.99 $ 1.01
Entech 0.71 0.90
Independent Power Group 0.20 0.02
Consolidated $ 1.90 $ 1.93
<PAGE>
ITEM 7. Exhibits
21a Consolidated Statements of Income for the Quarters Ended March 31, 1995
and 1994 and for the Twelve Months Ended March 31, 1995 and 1994.
21b Utility Operations Schedule of Revenues and Expenses for the Quarters
Ended March 31, 1995 and 1994 and for the Twelve Months Ended March 31,
1995 and 1994.
21c Entech Operations Schedule of Revenues and Expenses for the Quarters
Ended March 31, 1995 and 1994 and for the Twelve Months Ended March 31,
1995 and 1994.
21d Independent Power Group Operations Schedule of Revenues and Expenses for
the Quarters Ended March 31, 1995 and 1994 and for the Twelve Months
Ended March 31, 1995 and 1994.
<PAGE>
Exhibit Index
<TABLE>
<CAPTION>
Exhibit Page
<S> <C> <C>
21a Consolidated Statement of Income for the Quarters Ended
March 31, 1995 and 1994 and for the Twelve Months Ended
March 31, 1995 and 1994. 5
21b Utility Operations Schedule of Revenues and Expenses for
the Quarters Ended March 31, 1995 and 1994 and for the
Twelve Months Ended March 31, 1995 and 1994. 6
21c Entech Operations Schedule of Revenues and Expenses for the
Quarters Ended March 31, 1995 and 1994 and for the Twelve
Months Ended March 31, 1995 and 1994. 7
21d Independent Power Group Operations Schedule of Revenues
and Expenses for the Quarters Ended March 31, 1995 and 1994
and for the Twelve Months Ended March 31, 1995 and 1994. 8
</TABLE>
<PAGE>
<TABLE>
CONSOLIDATED STATEMENT OF INCOME Exhibit 21a
The Montana Power Company and Subsidiaries
<CAPTION>
Quarter Ended Twelve Months Ended
March 31, March 31,
1995 1994 1995 1994
Thousands of Dollars
<S> <C> <C> <C> <C>
REVENUES. . . . . . . . . . . . . . . . . . . . . . $262,287 $277,816 $990,441 $1,014,665
EXPENSES:
Operations. . . . . . . . . . . . . . . . . . . . 114,113 111,052 436,294 443,461
Maintenance . . . . . . . . . . . . . . . . . . . 15,340 16,312 74,385 70,818
Selling, general and administrative . . . . . . . 27,362 30,667 107,458 126,267
Taxes other than income taxes . . . . . . . . . . 21,920 22,223 95,065 94,545
Depreciation, depletion and amortization. . . . . 22,565 26,055 86,656 84,147
201,300 206,309 799,858 819,238
INCOME FROM OPERATIONS. . . . . . . . . . . . . . 60,987 71,507 190,583 195,427
INTEREST EXPENSE AND OTHER INCOME:
Interest. . . . . . . . . . . . . . . . . . . . . 10,955 10,781 42,990 46,763
Other (income) deductions - net . . . . . . . . . (1,576) 120 (11,148) (11,304)
9,379 10,901 31,842 35,459
INCOME TAXES. . . . . . . . . . . . . . . . . . . . 17,276 21,428 49,995 53,625
NET INCOME. . . . . . . . . . . . . . . . . . . . . 34,332 39,178 108,746 106,343
DIVIDENDS ON PREFERRED STOCK. . . . . . . . . . . . 1,807 1,807 7,227 5,213
NET INCOME AVAILABLE FOR COMMON STOCK . . . . . . . $ 32,525 $ 37,371 $101,519 $ 101,130
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING (000) . 53,738 52,743 53,374 52,303
NET INCOME PER SHARE OF COMMON STOCK. . . . . . . . $ 0.61 $ 0.71 $ 1.90 $ 1.93
</TABLE>
<PAGE>
<TABLE>
UTILITY OPERATIONS Exhibit 21b
<CAPTION>
Quarter Ended Twelve Months Ended
March 31, March 31,
1995 1994 1995 1994
Thousands of Dollars
ELECTRIC UTILITY
<S> <C> <C> <C> <C>
REVENUES:
Revenues. . . . . . . . . . . . . . . . . . . . . $117,184 $121,268 $423,602 $ 422,227
Intersegment revenues . . . . . . . . . . . . . . 1,573 1,536 5,962 7,615
118,757 122,804 429,564 429,842
EXPENSES:
Power supply. . . . . . . . . . . . . . . . . . . 35,347 46,091 168,183 169,011
Transmission and distribution . . . . . . . . . . 6,428 6,496 27,499 28,054
Selling, general and administrative . . . . . . . 12,048 12,151 46,031 43,889
Taxes other than incomes taxes. . . . . . . . . . 11,605 10,730 43,089 40,169
Depreciation and amortization . . . . . . . . . . 10,621 10,175 41,144 39,944
76,049 85,643 325,946 321,067
INCOME FROM ELECTRIC OPERATIONS 42,708 37,161 103,618 108,775
NATURAL GAS UTILITY:
REVENUES:
Revenues (other than gas supply cost revenues). . 32,099 29,643 91,370 86,205
Gas supply cost revenues. . . . . . . . . . . . . 8,898 7,572 19,517 20,148
Intersegment revenues . . . . . . . . . . . . . . 355 194 1,078 822
41,352 37,409 111,965 107,175
EXPENSES:
Gas supply costs. . . . . . . . . . . . . . . . . 8,898 7,572 19,517 20,148
Other production, gathering and exploration . . . 2,615 1,827 9,671 8,351
Transmission and distribution . . . . . . . . . . 2,581 2,332 10,403 9,358
Selling, general and administrative . . . . . . . 4,516 4,335 18,247 17,284
Taxes other than income taxes . . . . . . . . . . 3,545 3,419 13,833 13,101
Depreciation, depletion and amortization. . . . . 2,571 2,382 9,634 9,099
24,726 21,867 81,305 77,341
INCOME FROM GAS OPERATIONS. . . . . . . . . . . . 16,626 15,542 30,660 29,834
INTEREST EXPENSE AND OTHER INCOME:
Interest. . . . . . . . . . . . . . . . . . . . . 11,094 10,750 43,357 45,746
Other (income) deductions - net . . . . . . . . . (2,087) (279) (5,755) (1,080)
9,007 10,471 37,602 44,666
INCOME BEFORE INCOME TAXES. . . . . . . . . . . . . 50,327 42,232 96,676 93,943
INCOME TAXES. . . . . . . . . . . . . . . . . . . . 19,360 15,958 36,574 35,809
UTILITY NET INCOME. . . . . . . . . . . . . . . . . $ 30,967 $ 26,274 $ 60,102 $ 58,134
</TABLE>
<PAGE>
<TABLE>
ENTECH OPERATIONS Exhibit 21c
<CAPTION>
Quarter Ended Twelve Months Ended
March 31, March 31,
1995 1994 1995 1994
Thousands of Dollars
COAL
<S> <C> <C> <C> <C>
REVENUES:
Revenues. . . . . . . . . . . . . . . . . . . . . $ 53,103 $ 65,693 $240,309 $ 236,162
Intersegment revenues . . . . . . . . . . . . . . 298 11,527 30,973 39,203
53,401 77,220 271,282 275,365
EXPENSES:
Cost of sales . . . . . . . . . . . . . . . . . . 40,440 41,340 168,357 157,811
Selling, general and administrative . . . . . . . 7,815 7,596 29,683 26,100
Taxes other than income taxes . . . . . . . . . . 5,540 10,500 32,773 35,120
Depreciation, depletion and amortization. . . . . 3,743 3,514 12,878 10,755
57,538 62,950 243,691 229,786
INCOME FROM COAL OPERATIONS (4,137) 14,270 27,591 45,579
OIL AND NATURAL GAS:
REVENUES:
Revenues. . . . . . . . . . . . . . . . . . . . . 23,275 26,204 95,092 111,097
Intersegment revenues . . . . . . . . . . . . . . 132 85 302 365
23,407 26,289 95,394 111,462
EXPENSES:
Cost of sales . . . . . . . . . . . . . . . . . . 12,861 15,801 51,342 69,548
Selling, general and administrative . . . . . . . 2,242 2,204 8,552 8,610
Taxes other than income taxes . . . . . . . . . . 630 900 3,070 4,084
Depreciation, depletion and amortization. . . . . 4,488 4,596 18,357 18,940
20,221 23,501 81,321 101,182
INCOME FROM OIL AND NATURAL GAS OPERATIONS. . . . 3,186 2,788 14,073 10,280
OTHER OPERATIONS:
REVENUES:
Revenues. . . . . . . . . . . . . . . . . . . . . 6,380 5,532 24,558 22,545
Intersegment revenues . . . . . . . . . . . . . . 144 188 777 752
6,524 5,720 25,335 23,297
EXPENSES:
Cost of sales . . . . . . . . . . . . . . . . . . 4,356 4,212 16,930 16,451
Selling, general and administrative . . . . . . . 1,271 983 5,005 4,009
Taxes other than income taxes . . . . . . . . . . 81 72 297 358
Depreciation, depletion and amortization. . . . . 403 474 1,874 1,986
6,111 5,741 24,106 22,804
INCOME FROM OTHER OPERATIONS. . . . . . . . . . . 413 (21) 1,229 493
INTEREST EXPENSE AND OTHER INCOME:
Interest. . . . . . . . . . . . . . . . . . . . . 2,348 315 3,459 2,150
Other (income) deductions - net . . . . . . . . . (1,227) 558 (4,220) (10,307)
1,121 873 (761) (8,157)
INCOME BEFORE INCOME TAXES. . . . . . . . . . . . . (1,659) 16,164 43,654 64,509
INCOME TAXES. . . . . . . . . . . . . . . . . . . . (3,328) 4,336 5,925 17,187
ENTECH NET INCOME . . . . . . . . . . . . . . . . . $ 1,669 $ 11,828 $ 37,729 $ 47,322
/TABLE
<PAGE>
<TABLE>
INDEPENDENT POWER GROUP OPERATIONS Exhibit 21d
<CAPTION>
Quarter Ended Twelve Months Ended
March 31, March 31,
1995 1994 1995 1994
Thousands of Dollars
<S> <C> <C> <C> <C>
REVENUES:
Revenues. . . . . . . . . . . . . . . . . . . . . $ 20,024 $ 20,956 $ 92,716 $ 111,651
Earnings from unconsolidated investments. . . . . 1,180 760 2,500 3,878
Intersegment revenues . . . . . . . . . . . . . . 336 257 1,539 4,710
21,540 21,973 96,755 120,239
EXPENSES:
Operation and maintenance . . . . . . . . . . . . 17,276 18,062 74,296 104,778
Selling, general and administrative . . . . . . . 814 627 4,274 9,858
Taxes other than income taxes . . . . . . . . . . 520 433 2,004 1,712
Depreciation and amortization . . . . . . . . . . 740 1,083 2,769 3,424
19,350 20,205 83,343 119,772
INCOME FROM OPERATIONS. . . . . . . . . . . . . . 2,190 1,768 13,412 467
INTEREST EXPENSE AND OTHER INCOME:
Interest. . . . . . . . . . . . . . . . . . . . . 0 6 15 163
Other (income) deductions - net . . . . . . . . . (750) (448) (5,013) (1,213)
(750) (442) (4,998) (1,050)
INCOME BEFORE INCOME TAXES. . . . . . . . . . . . . 2,940 2,210 18,410 1,517
INCOME TAXES. . . . . . . . . . . . . . . . . . . . 1,244 1,134 7,495 630
IPG NET INCOME. . . . . . . . . . . . . . . . . . . $ 1,696 $ 1,076 $ 10,915 $ 887
</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/ W. C. Verbael
W. C. Verbael
Vice President - Accounting,
Finance and Information Services
Dated: April 26, 1995
