UNITED STATES
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 27, 1999
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 9.
<PAGE>
ITEM 5. Other Events.
Financial Results
SECOND QUARTER 1999 COMPARED WITH SECOND QUARTER 1998
The Company had consolidated net income of $0.44 per share in the second
quarter, an increase of $0.05 per share - or approximately 13% - compared with
second quarter 1998 consolidated net income of $0.39 per share. Utility
earnings for the second quarter 1999 were $0.11 per share, an increase of
$0.02 per share - more than 22% - from second quarter 1998 earnings of $0.09
per share. Nonutility earnings for the second quarter 1999 increased 10% to
$0.33 per share, compared with $0.30 per share for the second quarter 1998.
Financial results for the second quarter 1999 more than offset lower
first quarter 1999 results, which were adversely affected by warm weather
during the primary winter-heating months, low wholesale power prices, and low
overall oil and gas prices. Nearly every business unit contributed to the
strong second-quarter 1999 performance.
Electric Utility and Natural Gas Utility
Income from electric utility operations for the second quarter 1999
remained relatively flat compared with income from operations for the second
quarter 1998. Income from natural gas utility operations for the second
quarter 1999 increased approximately $2,700,000 compared with the second
quarter 1998.
Electric Utility
Revenues from electric utility operations increased approximately
$4,300,000 - more than 4% - mainly because of higher rates in the off-system
markets and increased sales of surplus power. As a result of electric
deregulation, effective July 1, 1998, the Company began reflecting
transmission revenues from the sale of electricity to the nonutility
operations in intersegment revenues, resulting in an increase in intersegment
revenues.
Power-supply expenses increased approximately $1,700,000 primarily due
to increased steam maintenance and higher contractual prices paid to small-
power producers. These increased costs were partially offset by the
elimination of secondary purchases by the utility. Transmission and
distribution expenses increased approximately $2,200,000 primarily because of
additional transmission expense associated with increased sales of surplus
power. Taxes other than income taxes and depreciation expense increased a
total of approximately $800,000, representing increased investment in plant
and higher property values.
Natural Gas Utility
Revenues from natural gas utility operations increased approximately
$3,000,000 - more than 15% - primarily because of colder weather. Expenses
associated with natural gas utility operations remained relatively stable.
Nonutility/Coal; Oil & Natural Gas; Independent Power Operations;
Telecommunications; Other
Nonutility financial results for second quarter 1999 versus second
quarter 1998 were as follows: (1) income from coal operations remained
relatively flat; (2) income from oil and natural gas operations increased
<PAGE>
approximately $900,000; and (3) income from independent power operations was
relatively stable. Results for telecommunications operations, including a
discussion of two particular events, are addressed more fully below in the
"Telecommunications" section. Investment income increased approximately
$1,900,000, due to income earned as a result of the funds received from the
prepayment.
Coal
Northwestern Resource's revenues increased $3,600,000 primarily because
volumes increased 3.5% and prices rose 9.6%. Western Energy's coal revenues
fell slightly because an increase in tons sold was more than offset by a 3.0%
decrease in prices. Western Energy's depreciation expense decreased
approximately $700,000 principally because of additional depreciation recorded
on idle equipment in the second quarter of 1998. Increased tons sold by
Northwestern Resources and Western Energy resulted in increased (1) operations
and maintenance expense, and (2) taxes other than income taxes. These
increased expenses more than offset the increased revenues from coal
operations.
Oil & Natural Gas
Increased income from oil and natural gas operations resulted from
higher (1) oil and natural gas prices, and (2) natural gas volumes sold. These
two events more than offset decreases in oil volumes sold.
Independent Power Operations
Revenues from unconsolidated investments decreased mainly because of the
late 1998 sale of one project and the settlement of another project in which
Continental Energy Services held interests. The effects of these events were
essentially offset by (1) higher revenues because of improved operations at
other projects in which Continental Energy holds interests, and (2) decreased
operations and maintenance expense because of lower project-development costs.
Telecommunications
In January 1999, Touch America received a discounted prepayment on a
twelve-year contract with a capacity customer. As a result, private-line
revenues (revenues from sales on Touch America's fiber-optic network) under
that contract were $6,000,000 lower as compared with the prior period.
Revenues from dark-fiber sales were approximately $2,800,000 lower primarily
because of reduced sales of Touch America's portion of available dark fiber as
compared with the same period in 1998. However, as a result of existing
agreements, the Company expects to record $3,000,000 in dark-fiber revenues
during the remainder of 1999. Touch America also expects revenues from
additional dark-fiber sales during the next two quarters.
Excluding the effects of (1) the prepayment, and (2) reduced revenues
from dark-fiber sales, revenues from telecommunications operations increased
approximately 50%. Based on the same exclusions, income from
telecommunications operations increased approximately 40%.
The increase in operating revenues, after the above exclusions, consists
of several elements. First, it reflects increased private-line revenues,
which increased approximately $2,000,000 due to higher sales of fiber
capacity. Second, long-distance and equipment-service revenues increased
approximately $3,400,000 as a result of increased (1) long-distance customer
and minute sales, and (2) price-per-minute sales.
<PAGE>
Long-distance and equipment-service operations and maintenance expense
increased approximately $2,300,000 as a result of increased sales. Taxes
other than income taxes - mainly property taxes - decreased approximately
$900,000 primarily because the Company released approximately $700,000 that it
had previously accrued.
Other Income
Other income increased approximately $3,300,000. Approximately
$1,900,000 of this increase is attributable to investment income earned on the
funds received from the prepayment. The use of these funds also contributed
to decreased interest expense.
YEAR-TO-DATE 1999 COMPARED WITH YEAR-TO-DATE 1998
Year-to-date earnings through June 30, 1999 were $1.04 per share, or
$0.01 per share higher than earnings for the six months ended June 30, 1998.
The year-to-date $1.04 per share consists of (1) Nonutility earnings of $0.68
per share (compared with $0.59 per share for the six months ended June 30,
1998), and (2) Utility earnings of $0.36 per share (compared with $0.44 per
share for the six months ended June 30, 1998).
Electric Utility and Natural Gas Utility
Income from electric utility operations for the six months ended June
30, 1999 decreased approximately $975,000 compared with income from operations
for the six months ended June 30, 1998. Income from natural gas utility
operations for the six months ended June 30, 1999 versus the six months ended
June 30, 1998 increased approximately $500,000.
Electric Utility
Revenues increased $6,800,000 mainly because of higher rates in the off-
system markets and increased sales of surplus power. As a result of electric
deregulation, effective July 1, 1998, the Company began reflecting
transmission revenues from the sale of electricity to the nonutility
operations in intersegment revenues.
Transmission and distribution expenses increased $5,300,000 primarily
because of additional transmission expense associated with sales of surplus
power. Taxes other than income taxes and depreciation expense increased a
total of $1,900,000, representing increased investment in plant and higher
property values.
Natural Gas Utility
Revenues increased $2,400,000 mainly because of higher transportation
revenues, customer growth, and increased prices to recover gas supply costs.
Expenses associated with natural gas utility operations remained relatively
stable.
<PAGE>
Nonutility/Coal; Oil and Natural Gas; Independent Power Operations;
Telecommunications; Other
Nonutility financial results for the six months ended June 30, 1999
versus year-to-date 1998 were as follows: (1) income from coal operations was
up approximately $300,000; (2) income from oil and natural gas operations
increased approximately $900,000; and (3) income from independent power
operations increased approximately $6,200,000. Results for telecommunications
operations are discussed more fully below. Finally, investment income
increased approximately $4,400,000 due to income earned as a result of the
funds received from the prepayment.
Coal
Northwestern Resource's revenues increased $6,500,000 primarily because
volumes increased 8.9% and prices rose 3.4%. Western Energy's coal revenues
fell approximately $2,200,000 mainly because of a $2,700,000 refund issued to
a buyer for final pit reclamation funds previously paid by that buyer. Western
Energy's depreciation expense decreased $1,600,000 primarily due to (1) the
additional accrual mentioned in the "second quarter 1999" discussion above,
and (2) equipment at the Rosebud Mine being fully depreciated late in the
first quarter of 1998, resulting in lower depreciation expense in 1999. The
increased tons sold by Northwestern Resources and Western Energy resulted in
increased operations and maintenance expense.
Oil and Natural Gas
The increased income from oil and natural gas operations resulted from
higher natural gas volumes and prices. These higher volumes and prices more
than offset decreases in oil volumes and prices.
Independent Power Operations
Revenues from unconsolidated investments increased approximately
$1,100,000 because of improved operations at projects in which Continental
Energy Services holds interests. In addition, lower project-development costs
resulted in a $3,800,000 decrease in operations and maintenance expense.
Amortization expense also decreased approximately $800,000 because of a late
1998 settlement relating to a project in which Continental Energy Services
held an interest.
Telecommunications
Private-line revenues were $11,000,000 lower due to the discounted
prepayment versus the six months ended June 30, 1998. Revenues from dark-
fiber sales were approximately $3,500,000 lower primarily because of reduced
sales of Touch America's portion of available dark fiber as compared with the
same period in 1998. As stated in the "second quarter 1999" discussion,
however, the Company expects to record $3,000,000 in dark-fiber revenues under
existing agreements during the remainder of 1999. It also expects additional
revenues from dark-fiber sales during the third and fourth quarters.
Excluding the effects of (1) the prepayment, and (2) reduced revenues
from dark-fiber sales, revenues from telecommunications operations increased
approximately 50%. Based on the same exclusions, income from
telecommunications operations increased approximately 25%.
<PAGE>
The increase in operating revenues, after the above exclusions, consists
of several elements. First, the increase reflects higher private-line
revenues of approximately $4,000,000. These increased revenues are
attributable to increased sales of fiber capacity. It also includes increased
long-distance and equipment-service revenues of approximately $5,500,000.
These revenues increased as a result of increased (1) long-distance customer
and minute sales, and (2) price-per-minute sales.
Long-distance and equipment-service operations and maintenance expense
increased approximately $4,000,000 as a result of increased sales. Taxes
other than income taxes - mainly property taxes - decreased approximately
$1,100,000 primarily because the Company released approximately $700,000 that
it had previously accrued.
Other Income
Other income increased approximately $6,000,000. Approximately
$4,400,000 of this increase is attributable to investment income earned on the
funds received from the prepayment. The use of these funds also contributed
to decreased interest expense.
TWELVE MONTHS ENDED JUNE 30, 1999 COMPARED WITH TWELVE MONTHS ENDED JUNE 30,
1998
During the twelve months ended June 30, 1999, consolidated earnings were
$2.95 per share. For the twelve months ended June 30, 1998, consolidated
earnings were $2.23 per share. The $2.95 for the twelve months ended June 30,
1999 - a 32% increase compared with the $2.23 figure for the twelve months
ended June 30, 1998 - consists of (1) Nonutility earnings of $2.09 per share
(compared with $1.27 per share for the twelve months ended June 30, 1998), and
(2) Utility earnings of $0.86 per share (compared with $0.96 per share for the
twelve months ended June 30, 1998).
<PAGE>
This Form 8-K may contain forward-looking statements within the meaning
of Section 21E of the Securities Exchange Act of 1934. Forward-looking
statements should be read with the cautionary statements and important factors
included in the Company's Annual Report on Form 10-K for the year ended
December 31, 1998 at Item 7, "Management's Discussion and Analysis of
Financial Conditions and Results of Operations - Safe Harbor for Forward-
Looking Statements." Forward-looking statements are all statements other than
statements of historical fact, including, without limitation, those that are
identified by the use of the words "expects," "believes," "anticipates" and
similar expressions.
On June 22, 1999 the Board of Directors approved, effective August 6,
1999, a two-for-one split of the Company's outstanding common stock to all
shareholders of record on July 16, 1999. Because the stock split was not
effective at the financial statement date, all financial information regarding
the outstanding common stock was presented on a pre-split basis with
additional earnings-per-share amounts provided for the current year on a post-
split basis.
For comparative purposes, the following table shows the breakdown of
consolidated basic net income per share by principal business segment:
Quarter Ended
*Post-Split
June 30, June 30, June 30,
1999 1998 1999
Utility Operations $ 0.11 $ 0.09 0.05
Nonutility Operations 0.33 0.30 0.17
Consolidated $ 0.44 $ 0.39 $ 0.22
Six Months Ended
*Post-Split
June 30, June 30, June 30,
1999 1998 1999
Utility Operations $ 0.36 $ 0.44 0.18
Nonutility Operations 0.68 0.59 0.34
Consolidated $ 1.04 $ 1.03 $ 0.52
Twelve Months Ended
*Post-Split
June 30, June 30, June 30,
1999 1998 1999
Utility Operations $ 0.86 $ 0.96 0.43
Nonutility Operations 2.09 1.27 1.05
Consolidated $ 2.95 $ 2.23 $ 1.48
* Adjusted for the 2-for-1 stock split effective August 6, 1999.
<PAGE>
ITEM 7. Financial Statements and Exhibits.
99a Preliminary Consolidated Statements of Income for the Quarters Ended
June 30, 1999 and 1998; Six Months Ended June 30, 1999 and 1998; and
Twelve Months Ended June 30, 1999 and 1998.
99b Preliminary Utility Operations Schedule of Revenues and Expenses for the
Quarters Ended June 30, 1999 and 1998; Six Months Ended June 30, 1999 and
1998; and Twelve Months Ended June 30, 1999 and 1998.
99c Preliminary Nonutility Operations Schedule of Revenues and Expenses for
the Quarters Ended June 30, 1999 and 1998; Six Months Ended June 30, 1999
and 1998; and Twelve Months Ended June 30, 1999 and 1998.
99d Preliminary Operating Statistics.
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, a duly authorized signatory.
THE MONTANA POWER COMPANY
(Registrant)
By /s/ J. P. Pederson
J. P. Pederson
Vice President and Chief
Financial Officer
Dated: July 27, 1999
<PAGE>
Exhibit Index
Exhibit Page
99a Preliminary Consolidated Statements of Income for the Quarters
Ended June 30, 1999 and 1998; Six Months Ended June 30, 1999 and
1998; and Twelve Months Ended June 30, 1999 and 1998. 10
99b Preliminary Utility Operations Schedule of Revenues and Expenses
for the Quarters Ended June 30, 1999 and 1998; Six Months Ended
June 30, 1999 and 1998; and Twelve Months Ended June 30, 1999
and 1998. 11
99c Preliminary Nonutility Operations Schedule of Revenues and
Expenses for the Quarters Ended June 30, 1999 and 1998; Six
Months Ended June 30, 1999 and 1998; and Twelve Months Ended
June 30, 1999 and 1998. 12-13
99d Preliminary Operating Statistics. 14
<PAGE>
Exhibit 99a
<TABLE>
PRELIMINARY CONSOLIDATED STATEMENT OF INCOME
The Montana Power Company and Subsidiaries
<CAPTION>
Quarter Ended Six Months Ended 12 Months Ended
June 30, June 30, June 30,
1999 1998 1999 1998 1999 1998
Thousands of Dollars
<S> <C> <C> <C> <C> <C> <C>
REVENUES $309,708 $259,111 $631,476 $553,160 $1,340,374 $1,079,336
EXPENSES:
Operations 155,034 102,854 308,594 231,280 613,791 458,275
Maintenance 20,317 20,204 39,947 39,986 81,025 80,097
Selling, general, and
administrative 31,030 33,571 64,173 62,937 129,977 122,598
Taxes other than income taxes 25,338 24,802 51,106 50,326 96,960 96,789
Depreciation, depletion, and
amortization 27,601 27,701 55,355 54,787 113,233 105,709
259,320 209,132 519,175 439,316 1,034,986 863,468
INCOME FROM OPERATIONS 50,388 49,979 112,301 113,844 305,388 215,868
INTEREST EXPENSE AND OTHER:
Interest 12,871 14,397 26,500 28,901 58,450 58,128
Distributions on company obligated
mandatorily redeemable preferred
securities of subsidiary trust 1,373 1,373 2,746 2,746 5,492 5,496
Other (income) deductions - net (2,603) (118) (6,472) (1,847) (7,834) (23,502)
11,641 15,652 22,774 29,800 56,108 40,122
INCOME TAXES 13,498 11,777 30,454 25,625 83,004 49,655
NET INCOME 25,249 22,550 59,073 58,419 166,276 126,091
DIVIDENDS ON PREFERRED STOCK 922 922 1,845 1,845 3,690 3,690
NET INCOME AVAILABLE FOR
COMMON STOCK $ 24,327 $ 21,628 $ 57,228 $ 56,574 $ 162,586 $ 122,401
AVERAGE NUMBER OF COMMON SHARES
OUTSTANDING - BASIC (000) 55,092 54,983 55,083 54,929 55,058 54,797
BASIC NET INCOME PER SHARE OF
COMMON STOCK $ 0.44 $ 0.39 $ 1.04 $ 1.03 $ 2.95 $ 2.23
AVERAGE NUMBER OF COMMON SHARES
OUTSTANDING - DILUTED (000) 55,549 55,065 55,470 55,005 55,277 54,855
FULLY DILUTED EARNINGS PER SHARE OF
COMMON STOCK $ 0.44 $ 0.39 $ 1.03 $ 1.03 $ 2.94 $ 2.23
POST-SPLIT EARNINGS PER SHARE:
*BASIC NET INCOME PER SHARE OF
COMMON STOCK $ 0.22 $ 0.20 $ 0.52 $ 0.51 $ 1.48 $ 1.12
*FULLY DILUTED EARNINGS PER SHARE OF
COMMON STOCK $ 0.22 $ 0.20 $ 0.51 $ 0.51 $ 1.47 $ 1.12
* Adjusted for the 2-for-1 stock split effective August 6, 1999.
</TABLE>
<PAGE>
Exhibit 99b
<TABLE>
PRELIMINARY UTILITY OPERATIONS
<CAPTION>
Quarter Ended Six Months Ended 12 Months Ended
June 30, June 30, June 30,
1999 1998 1999 1998 1999 1998
Thousands of Dollars
ELECTRIC UTILITY:
<S> <C> <C> <C> <C> <C> <C>
REVENUES:
Revenues $105,443 $ 102,437 $221,977 $219,235 $453,461 $437,703
Intersegment revenues 2,778 1,458 6,468 2,454 11,590 4,876
108,221 103,895 228,445 221,689 465,051 442,579
EXPENSES:
Power supply 30,878 29,196 69,565 69,163 137,818 145,170
Transmission and distribution 10,731 8,539 22,408 17,123 45,467 35,715
Selling, general, and
administrative 13,810 14,134 27,563 27,440 53,149 52,434
Taxes other than income taxes 12,535 12,075 25,289 24,172 47,433 45,636
Depreciation and amortization 13,494 13,184 27,173 26,369 57,328 52,497
81,448 77,128 171,998 164,267 341,195 331,452
INCOME FROM ELECTRIC OPERATIONS 26,773 26,767 56,447 57,422 123,856 111,127
NATURAL GAS UTILITY:
REVENUES:
Revenues (other than including
gas supply cost revenues) 15,328 13,368 41,621 40,034 76,703 85,091
Gas supply cost revenues 7,062 5,938 21,114 20,316 32,734 27,517
Intersegment revenues 137 222 336 352 768 615
22,527 19,528 63,071 60,702 110,205 113,223
EXPENSES:
Gas supply costs 7,062 5,938 21,114 20,316 32,734 27,517
Other production, gathering, and
exploration 341 514 1,134 1,159 2,267 4,309
Transmission and distribution 3,667 3,805 7,303 7,440 15,420 14,842
Selling, general, and
administrative 4,776 5,523 10,531 10,091 20,622 19,398
Taxes other than income taxes 3,453 3,330 7,270 6,702 14,652 13,991
Depreciation, depletion, and
amortization 2,289 2,203 4,640 4,407 8,939 10,099
21,588 21,313 51,992 50,115 94,634 90,156
INCOME FROM GAS OPERATIONS 939 (1,785) 11,079 10,587 15,571 23,067
INTEREST EXPENSE AND OTHER:
Interest 14,442 13,680 28,880 27,125 58,113 54,749
Distributions on company obligated
mandatorily redeemable preferred
securities of subsidiary trust 1,373 1,373 2,746 2,746 5,492 5,496
Other (income) deductions - net (1,033) (678) (2,317) (795) (5,196) (7,571)
14,782 14,375 29,309 29,076 58,409 52,674
INCOME BEFORE INCOME TAXES 12,930 10,607 38,217 38,933 81,018 81,520
INCOME TAXES 5,995 4,663 16,669 13,119 30,109 25,294
DIVIDENDS ON PREFERRED STOCK 922 922 1,845 1,845 3,690 3,690
UTILITY NET INCOME AVAILABLE FOR
COMMON STOCK $ 6,013 $ 5,022 $ 19,703 $ 23,969 $ 47,219 $ 52,536
</TABLE>
<PAGE>
Exhibit 99c
<TABLE>
PRELIMINARY NONUTILITY OPERATIONS
<CAPTION>
Quarter Ended Six Months Ended 12 Months Ended
June 30, June 30, June 30,
1999 1998 1999 1998 1999 1998
Thousands of Dollars
COAL:
<S> <C> <C> <C> <C> <C> <C>
REVENUES:
Revenues $48,779 $45,053 $92,217 $88,478 $181,700 $177,980
Intersegment revenues 9,835 9,657 19,740 19,856 38,680 39,371
58,614 54,710 111,957 108,334 220,380 217,351
EXPENSES:
Operations and maintenance 36,530 32,427 68,862 64,191 137,634 128,339
Selling, general, and
administrative 4,740 4,369 9,762 9,421 20,929 20,350
Taxes other than income taxes 6,657 6,424 13,014 13,112 23,951 26,329
Depreciation, depletion, and
amortization 1,799 2,531 3,684 5,267 5,013 11,893
49,726 45,751 95,322 91,991 187,527 186,911
INCOME FROM COAL
OPERATIONS 8,888 8,959 16,635 16,343 32,853 30,440
OIL AND NATURAL GAS:
REVENUES:
Revenues 76,957 42,823 145,739 95,803 271,253 182,650
Intersegment revenues 8,332 4,887 16,521 9,633 33,200 12,558
85,289 47,710 162,260 105,436 304,453 195,208
EXPENSES:
Operations and maintenance 70,748 34,250 133,461 77,410 247,947 147,738
Selling, general, and
administrative 4,732 5,643 8,960 10,005 19,880 15,722
Taxes other than income taxes 1,553 961 2,577 2,312 5,173 4,214
Depreciation, depletion, and
amortization 5,955 5,471 11,519 10,848 22,931 19,334
82,988 46,325 156,517 100,575 295,931 187,008
INCOME FROM OIL AND NATURAL
GAS OPERATIONS 2,301 1,385 5,743 4,861 8,522 8,200
INDEPENDENT POWER:
REVENUES:
Revenues 18,735 17,803 36,968 36,379 74,296 73,093
Earnings from unconsolidated
investments 4,130 6,798 9,464 8,351 90,638 18,659
Intersegment Revenues 425 612 663 1,181 1,496 1,787
23,290 25,213 47,095 45,911 166,430 93,539
EXPENSES:
Operations and maintenance 16,178 17,167 31,911 35,841 61,080 69,018
Selling, general, and90,638
administrative 980 1,181 1,811 2,155 4,402 4,249
Taxes other than income taxes 457 434 919 899 1,787 1,521
Depreciation, depletion, and
amortization 784 1,453 1,561 2,372 8,194 4,180
18,399 20,235 36,202 41,267 75,463 78,968
INCOME FROM INDEPENDENT POWER
OPERATIONS 4,891 4,978 10,893 4,644 90,967 14,571
</TABLE>
<PAGE>
Exhibit 99c
<TABLE>
PRELIMINARY NONUTILITY OPERATIONS (continued)
<CAPTION>
Quarter Ended Six Months Ended 12 Months Ended
June 30, June 30, June 30,
1999 1998 1999 1998 1999 1998
Thousands of Dollars
TELECOMMUNICATIONS:
<S> <C> <C> <C> <C> <C> <C>
REVENUES:
Revenues $21,372 $ 21,528 $41,152 $42,208 $86,690 $73,129
Earnings from unconsolidated
investments 721 3,564 2,100 5,644 7,365 6,041
Intersegment Revenues 126 252 354 503 1,151 915
22,219 25,344 43,606 48,355 95,206 80,085
EXPENSES:
Operations and maintenance 9,382 6,725 17,828 12,912 32,027 24,454
Selling, general, and
administrative 2,887 3,142 5,670 5,606 12,235 10,456
Taxes other than income taxes 384 1,313 1,425 2,559 2,489 4,522
Depreciation, depletion, and
amortization 2,109 1,708 4,524 3,249 8,364 5,184
14,762 12,888 29,447 24,326 55,115 44,616
INCOME FROM TELECOMMUNICATIONS
OPERATIONS 7,457 12,456 14,159 24,029 40,091 35,469
OTHER OPERATIONS:
REVENUES:
Revenues 11,248 3,046 19,124 4,312 62,800 4,021
Intersegment revenues 561 301 1,002 564 1,391 3,570
11,809 3,347 20,126 4,876 64,191 7,591
EXPENSES:
Operations and maintenance 11,456 3,743 18,887 5,258 64,301 5,963
Selling, general, and
administrative (297) 968 1,027 815 2,424 5,535
Taxes other than income taxes 300 265 612 570 1,474 576
Depreciation, depletion, and
amortization 1,172 1,153 2,254 2,275 4,066 2,522
12,631 6,129 22,780 8,918 72,265 14,596
LOSS FROM OTHER OPERATIONS (822) (2,782) (2,654) (4,042) (8,074) (7,005)
INTEREST EXPENSE AND OTHER:
Interest 1,254 2,360 3,358 4,589 10,189 8,295
Other (income) deductions - net (4,357) (1,085) (9,892) (3,865) (14,091) (20,846)
(3,103) 1,275 (6,534) 724 ( 3,902) (12,551)
INCOME BEFORE INCOME TAXES 25,818 23,721 51,310 45,111 168,261 94,226
INCOME TAXES 7,504 7,115 13,785 12,506 52,894 24,361
NONUTILITY NET INCOME AVAILABLE
FOR COMMON STOCK $18,314 $ 16,606 $37,525 $32,605 $115,367 $69,865
</TABLE>
<PAGE>
Exhibit 99d
<TABLE>
PRELIMINARY OPERATING STATISTICS
<CAPTION>
Quarter Ended Six Months Ended
June 30, June 30,
1999 1998 Change % 1999 1998 Change %
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ELECTRIC UTILITY GENERATION (MWhs):
Hydroelectric 1,130,085 1,040,746 89,339 9% 2,000,284 1,858,735 141,549 8%
Coal Fired 980,595 983,636 (3,041) 0% 2,249,701 2,005,456 244,245 12%
Total 2,110,680 2,024,382 86,298 4% 4,249,985 3,864,191 385,794 10%
HEATING DEGREE DAYS: 1,431 1,253 178 14% 4,381 4,500 (119) (3%)
Normal 1,257 Normal 4,708
COAL SALES (thousand of tons):
Montana 2,348 2,308 40 2% 5,073 5,050 23 0%
Texas 2,039 1,970 69 4% 4,207 3,865 342 9%
Total 4,387 4,278 109 3% 9,280 8,915 365 4%
NONUTILITY OIL & GAS PRODUCTION SALES VOLUMES:
Oil (Bbls) 124,286 158,580 (34,294) (22%) 250,084 322,498 (72,414) (22%)
Natural Gas (Mcfs) 6,989,661 6,582,650 407,011 6% 13,735,100 12,884,283 850,817 7%
N G Liquids (Bbls) 126,811 152,266 (25,455) (17%) 252,840 313,515 (60,675) (19%)
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