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 earliest event reported: January 25, 2000
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 11.
<PAGE>
ITEM 5. Other Events.
Financial Results
Note: We have adjusted all 1998 earnings-per-share information to
reflect the two-for-one stock split effective August 6, 1999.
FOURTH QUARTER 1999 COMPARED WITH FOURTH QUARTER 1998
The Montana Power Company reported consolidated basic net income of
$0.56 per share in the fourth quarter compared with fourth quarter 1998
consolidated net income of $0.63 per share. Utility earnings for the fourth
quarter 1999 increased $0.23 per share, from $0.15 per share to $0.38 per
share. Nonutility earnings for the fourth quarter 1999 decreased $0.30 per
share, from $0.48 per share to $0.18 per share.
As discussed in more detail below, the December 17, 1999, sale of
substantially all of our electric generating assets to PP&L Global, Inc.
("PP&L Global") for approximately $757,600,000 positively affected our
electric utility's earnings. Specifically, the reversal of interest expense
as a result of our agreement with PP&L Global relating to Kerr Project
liabilities and the accelerated amortization of investment tax credits
("ITCs") improved our electric utility's net income. Other than these
effects, the sale did not materially affect our fourth quarter or full year
1999 results of operations. For additional information on the sale of our
electric generating assets, see our Form 8-Ks filed with the Securities and
Exchange Commission on November 6, 1998, and January 3, 2000.
Every nonutility business contributed to that sector's strong fourth
quarter 1999 operating performance. Fourth quarter 1999 results for
independent power operations decreased as compared with the same period in
1998 due to a fourth quarter 1998 contract settlement between the Bonneville
Power Administration and an independent power partnership in which Continental
Energy Services ("Continental Energy") was a partner, Continental Energy's
sale of its interest in the Lockport project in New York, and the partial sale
of the Encogen Four plant in New York, in which Continental Energy had
invested.
Electric Utility and Natural Gas Utility
Electric Utility
Income from operations decreased approximately $400,000. Weather was
16 percent warmer than normal and 15 percent warmer than 1998.
Revenues: Revenues increased approximately $8,200,000 due to the
effects of the following items:
? Increase of approximately $13,500,000 because of increased sales at
higher prices and increased transmission of energy in the secondary
markets.
? Increase of approximately $4,100,000 in other revenues mainly because
of revenues earned from transmitting energy for customers that chose
other suppliers and an actuarial pension-plan adjustment.
? A decrease of approximately $9,400,000 in general business revenues
mainly from customers moving to different suppliers. An increase in
rates to recover the cost of public-purpose programs in accordance
with the Universal System Benefits Charge requirements of Montana's
Electric Industry Restructuring and Customer Choice Act ("Electric
Act") lessened the effects of the decreased revenues from customers
moving to different suppliers.
<PAGE>
Expenses: Expenses increased approximately $8,700,000 because of the
effects of the following items:
? Transmission and distribution expenses increased approximately
$1,800,000 as a result of transmitting the electricity sold in the
secondary markets.
? Selling, general, and administrative expenses increased approximately
$8,300,000 mainly because of costs for energy-efficiency and public-
purpose programs in accordance with the Electric Act. We collect the
costs associated with the energy-efficiency and public-purpose
programs through a separate component of rates to offset these cost
increases. Pension-plan accruals, in addition to expenses of
approximately $1,800,000 relating to our Enterprise Customer-Care and
Enterprise Resource Planning information systems, also contributed to
increased selling, general, and administrative expenses. Decreased
benefit charges relating to the 1998 curtailment of a benefit plan
partially offset these increased expenses.
? Taxes other than income taxes increased approximately $2,700,000,
representing higher property values and additional plant.
? A decrease of approximately $4,100,000 in depreciation expense,
representing a 1998 write-down of property held for future use and
software costs in accordance with Statement of Financial Accounting
Standard ("SFAS") No. 121, "Accounting for the Impairment of Long-
Lived Assets and for Long-Lived Assets To Be Disposed Of."
Regulatory:
? The Electric Act established a rate moratorium for all electric
customers pursuant to which transmission and distribution rates
cannot be increased until July 1, 2000. We expect to submit a filing
with the Montana Public Service Commission ("PSC") in the first half
of this year to request increased rates as appropriate.
? During the fourth quarter 1999, we recognized as income approximately
$10,000,000 in unamortized ITCs associated with the sale of our
electric generating assets.
Natural Gas Utility
Income from operations increased approximately $2,000,000. Weather was
18 percent warmer than normal.
Revenues: Revenues increased approximately $2,300,000 mainly because of
a 1998 decrease in revenues to reflect a rate refund in compliance with a PSC
ruling. A weather-related decrease in revenues was partially offset by the
December 10, 1999, interim rate increase discussed below.
Expenses: Expenses increased approximately $200,000 primarily because
of increases in selling, general, and administrative expenses of approximately
$1,000,000 principally relating to pension-plan accruals. A decrease in other
administrative expenses partially offset this increase. An overall decrease
in other operating expenses reduced the effects of the increased selling,
general, and administrative expenses.
<PAGE>
Regulatory: On August 12, 1999, we filed a natural gas rate case with
the PSC requesting, among other matters, increased annual revenues of
$15,400,000, with a proposed interim increase of $11,500,000. An interim
increase of $7,600,000 became effective on December 10, 1999, and will remain
in effect until we receive the final PSC order. We expect to receive a final
order before mid-year 2000.
Interest Expense
As a result of an agreement reached with PP&L Global, we adjusted
liabilities relating to the Kerr Project. Decreased short-term borrowing,
retirement of Medium-Term Notes, and this adjustment to liabilities - which
reversed interest expense - account for the majority of the decrease of
approximately $11,100,000 in interest expense. Partially offsetting the
effects of the decreases was increased intersegment interest expense
associated with increased loans from nonutility operations to utility
operations.
Income Taxes
In accordance with the Electric Act, we are allowed to recognize as
income accelerated amortizations of ITCs to maintain our electric utility's
return on equity. As a result, we recognized approximately $8,300,000 of ITCs
associated with our distribution business, in addition to the $10,000,000 of
generation-related ITCs discussed above.
Nonutility - Telecommunications; Coal; Independent Power Operations; Oil &
Natural Gas; and Other
Our nonutility earnings for the fourth quarter 1999 decreased, when
compared with the fourth quarter 1998, mainly because of the effects of the
three previously discussed favorable events that occurred in our independent-
power business during the fourth quarter 1998.
Telecommunications
In January 1999, a Touch America customer exercised an option and made a
$257,000,000 prepayment of all amounts due for the remaining twelve-year
initial term of a capacity agreement. The amount of the prepayment was
discounted for early payment and results in approximately $24,200,000 less in
annual operating revenues than we would have realized had the customer not
exercised its option. As a result, private-line revenues - revenues from
sales on Touch America's fiber-optic network - under that contract for the
fourth quarter 1999 were approximately $6,000,000 less than they would have
been without the prepayment.
Earnings from dark-fiber transactions were approximately $3,900,000
lower compared with the same period in 1998 primarily because Financial
Accounting Standards Board Interpretation No. 43, "Real Estate Sales," changed
accounting for transactions involving dark-fiber sales. Accordingly, Touch
America will realize earnings of approximately $7,000,000 from dark-fiber
transactions pursuant to existing agreements entered into after June 30, 1999,
over the applicable lease term rather than fourth quarter 1999 revenue
recognition.
In the fourth quarter 1999, Touch America recognized approximately
$3,200,000 of gain pursuant to a dark-fiber exchange transaction. Because
Touch America and its counterparty entered into the agreement relating to this
transaction prior to June 30, 1999, the above accounting treatment does not
apply. Therefore, these revenues are included in telecommunications
operations' private-line revenues.
<PAGE>
After adjusting private-line revenues for the accounting effects of the
prepayment and excluding revenues from dark-fiber sales other than the
$3,200,000 discussed above, revenues from telecommunications operations
increased approximately $6,300,000. This increase principally consists of
increased private-line revenues of approximately $4,100,000, equipment-service
sales of approximately $800,000, and long-distance revenues of approximately
$700,000.
Operations and maintenance expense increased approximately $1,800,000.
This increased expense is attributable chiefly to increased private-line and
long-distance sales. Taxes other than income taxes increased approximately
$1,700,000 primarily because of a fourth quarter 1998 adjustment to property
tax expense.
Coal
Income from our coal operations increased approximately 20 percent when
compared with the fourth quarter 1998. Northwestern Resources' lignite
revenues increased approximately $1,400,000 because increased reimbursable
mining expenses more than offset a 5 percent decrease in volumes and a
reversal of revenues previously recorded for deferred benefits. Western
Energy's revenues increased approximately $1,600,000 due to a 6 percent
increase in tons sold and a 3 percent increase in average revenue per ton
sold.
Operations and maintenance expense increased approximately $5,200,000
from higher royalties, reclamation costs, equipment rentals, and overburden
stripping costs. Selling, general, and administrative expenses decreased
approximately $5,700,000 primarily from reversal of deferred benefit costs and
from a lease write-off in the fourth quarter of 1998. Taxes other than income
also decreased as a result of a court decision upholding Western Energy's
position regarding severance tax credits. This decrease was partially offset
by higher production taxes due to the increased revenues at the Rosebud Mine.
Western Energy's depreciation expense increased approximately $2,500,000 due
to a 1998 adjustment to the 1995 write-down of the former Colorado mining
operations.
Independent Power Operations
Our independent power business continued its solid performance. Revenues
from unconsolidated investments decreased approximately $54,300,000 mainly
because of the three events mentioned previously that occurred during the
fourth quarter 1998 resulting in gains to Continental Energy of approximately
$58,400,000. Improved operations resulted in higher revenues in the fourth
quarter 1999 in generating projects in which Continental Energy holds equity
interests - particularly Encogen One in Texas and Ferndale in Washington
state.
Oil & Natural Gas
Income from our oil and natural gas operations increased approximately
$6,800,000 versus fourth quarter 1998. Increased income from oil and natural
gas operations resulted from higher oil and natural gas prices and increased
natural gas volumes sold. These increases more than offset decreases in oil
volumes sold. Income from oil and natural gas operations increased despite
the negative effects of a loss of approximately $4,200,000 before taxes that
we recorded relating to the write-down of certain long-lived assets in our
Canadian oil and natural gas operations in accordance with SFAS No. 121.
Interest Expense
The use of the funds received from the telecommunications prepayment
referred to above resulted in decreased interest expense.
<PAGE>
FULL YEAR 1999 COMPARED WITH FULL YEAR 1998
Earnings for 1999 were $1.34 per share, compared with 1998 earnings of
$1.47 per share. The 1999 earnings figure consists of (1) utility earnings of
$0.56 per share up $0.09 per share, or approximately 19 percent, from $0.47
per share for 1998, and (2) nonutility earnings of $0.78 per share, down $0.22
from the 1998 $1.00 per share. All nonutility businesses contributed to
continued strong performance in that segment of our business.
Electric Utility and Natural Gas Utility
Electric Utility
Income from operations decreased approximately $14,200,000. Weather was
9 percent warmer than normal and 3 percent warmer than 1998.
Revenues: Revenues increased approximately $12,300,000 due to the
effects of the following items:
? Increase of approximately $36,900,000 because of increased sales at
higher prices and transmission of energy in the secondary markets.
? Increase of approximately $7,900,000 in other revenues mainly because
of revenues earned from transmitting energy for customers that chose
other suppliers.
? A decrease of approximately $32,500,000 in general business revenues
mainly from customers moving to different suppliers. An increase in
rates to recover the cost of public-purpose programs in accordance
with the Universal System Benefits Charge requirements of Montana's
Electric Industry Restructuring and Customer Choice Act ("Electric
Act") lessened the effects of the decreased revenues from customers
moving to different suppliers.
Expenses: Expenses increased approximately $26,400,000 largely for the
same reasons mentioned in the fourth quarter section. In addition to those
expenses, power-supply costs increased approximately $1,300,000 as a result of
increased steam maintenance and generation costs.
Natural Gas Utility
Income from operations increased approximately $1,400,000. Weather was
8 percent warmer than normal.
Revenues: Revenues increased approximately $4,000,000 mainly because of
customer growth, increased rates to recover higher gas-supply costs, and a
1998 decrease in revenues to reflect a rate refund in compliance with a PSC
ruling. A weather-related decrease in revenues was partially offset by the
December 10, 1999, interim rate increase.
Expenses: Expenses increased approximately $2,500,000 largely for the
same reasons mentioned in the fourth quarter section.
Interest Expense and Other Income
Interest expense decreased principally for the reasons mentioned in the
discussion of the fourth quarter.
Income Taxes
Income taxes decreased primarily because of the reasons discussed in the
fourth quarter section.
<PAGE>
Nonutility - Telecommunications; Coal; Independent Power Operations; Oil &
Natural Gas; and Other
Telecommunications
The decrease of approximately $14,300,000 in income from
telecommunications operations is a reflection of the effects of the contract
prepayment discussed above. Private-line revenues for 1999 were approximately
$23,200,000 less than they would have been without the prepayment mentioned in
the discussion of the fourth quarter. Touch America continued to grow and to
contribute solid earnings.
The increase in operating revenues, after the above adjustments,
consists of several elements. First, the increase reflects higher private-
line revenues of approximately $10,100,000, which are attributable to
increased revenues from sales of fiber capacity. It also includes increased
long-distance revenues, including internet-service and equipment-service
revenues, of approximately $7,800,000. These revenues increased as a result
of increased long-distance customer and minute sales and customer growth.
Operations and maintenance expense increased approximately $7,700,000
chiefly as a result of increased private-line, equipment-service, and long-
distance sales. Depreciation expense increased approximately $2,000,000,
reflecting additional plant placed into service.
Coal
Income from coal operations increased approximately $4,000,000, more
than 12 percent. Northwestern Resources' lignite revenues increased
approximately $13,600,000 as a result of a 1 percent increase in volumes sold
and an increase in reimbursable mining costs, which was partially offset by a
reversal of revenues previously recorded for deferred benefits. Western
Energy's revenues increased approximately $6,400,000 primarily because Western
Energy paid approximately $7,900,000 in one-time refunds in the third quarter
1998 to the owners of Colstrip Units Nos. 3 and 4 to settle contract disputes.
A second quarter 1999 refund to a Western Energy customer for final pit
reclamation funds previously collected partially offset this increase. In
addition, volumes sold at the Rosebud Mine increased 1 percent in 1999.
Operations and maintenance expense increased approximately $17,800,000
due to higher royalties, equipment rentals, and overburden stripping costs.
Selling, general, and administrative expenses decreased approximately
$4,400,000 for the same reasons discussed in the fourth quarter section. Taxes
other than income increased due to the higher value of the coal sold in 1999
and a property tax refund received at the Jewett Mine in the third quarter of
1998. The severance tax credits discussed in the fourth quarter section
partially offset these tax increases.
Independent Power Operations
Revenues from unconsolidated investments decreased approximately
$68,500,000 mainly because of the events discussed in the fourth quarter
section. In addition, Continental Energy recognized gains of approximately
$14,000,000 during the third quarter 1998 relating to a contract buyout of its
interest in the Encogen Four project. Higher revenues at existing projects as
a result of improved operations partially offset the decrease in revenues from
unconsolidated investments.
Amortization expense was approximately $5,900,000 lower than in 1998. In
the third quarter of 1998, Continental Energy amortized approximately
$5,200,000 to properly reflect the reduced value of its investment in the
Encogen Four project as a result of the contract buyout.
<PAGE>
Oil and Natural Gas
Income from oil and natural gas operations more than doubled, escalating
from approximately $7,600,000 to approximately $16,000,000. Increased income
from oil and natural gas operations resulted from higher oil and natural gas
prices and increased natural gas volumes sold. These two events more than
offset decreases in oil volumes sold. Earnings for 1999 were negatively
affected by a loss of approximately $7,100,000 before taxes that we recorded
during 1999 relating to write-downs of certain long-lived assets in our
Canadian oil and natural gas operations in accordance with SFAS No. 121.
Interest Expense and Other Income
The use of the funds received from the telecommunications prepayment
contributed to decreased interest expense, and investment income earned on
these funds accounted for approximately $4,400,000 of the $9,500,000 increase
in other income. The remaining increase in other income is largely the result
of increased intersegment interest income earned on loans from nonutility
operations to utility operations.
Income Taxes
Due to an estimated lower effective tax rate for 1999, we reduced income
tax expense for 1999.
<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. All 1998 earnings-per-share
information has been adjusted for the split.
On December 23, 1999, we temporarily settled - for $144,872,000,
including interest costs and commissions and net of dividends - our Forward
Equity Acquisition Transaction program with a bank pursuant to which we
purchased 4,682,000 shares of our stock that the bank had acquired on our
behalf. As a result, average shares outstanding for 1999 decreased.
For comparative purposes, the following table shows the breakdown of
consolidated basic net income per share by principal business segment:
Quarter Ended
December 31, December 31,
1999 1998
Utility Operations $ 0.38 $ 0.15
Nonutility Operations 0.18 0.48
Consolidated $ 0.56 $ 0.63
Year Ended
December 31, December 31,
1999 1998
Utility Operations $ 0.56 $ 0.47
Nonutility Operations 0.78 1.00
Consolidated $ 1.34 $ 1.47
<PAGE>
ITEM 7. Financial Statements and Exhibits.
99a Preliminary Consolidated Statements of Income for the Quarters Ended
December 31, 1999 and 1998 and Years Ended December 31, 1999 and 1998.
99b Preliminary Utility Operations Schedule of Revenues and Expenses for the
Quarters Ended December 31, 1999 and 1998 and Years Ended December 31,
1999 and 1998.
99c Preliminary Nonutility Operations Schedule of Revenues and Expenses for
the Quarters Ended December 31, 1999 and 1998 and Years Ended
December 31, 1999 and 1998.
99d Preliminary Operating Statistics for the Quarters Ended December 31, 1999
and 1998 and Years Ended December 31, 1999 and 1998.
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: January 25, 2000
<PAGE>
Exhibit Index
Exhibit Page
99a Preliminary Consolidated Statements of Income for the Quarters
Ended December 31, 1999 and 1998 and Years Ended December 31,
1999 and 1998. 12
99b Preliminary Utility Operations Schedule of Revenues and Expenses
for the Quarters Ended December 31, 1999 and 1998 and Years
Ended December 31, 1999 and 1998. 13
99c Preliminary Nonutility Operations Schedule of Revenues and
Expenses for the Quarters Ended December 31, 1999 and 1998 and
Years Ended December 31, 1999 and 1998. 14-15
99d Preliminary Operating Statistics for the Quarters Ended
December 31, 1999 and 1998 and Years Ended December 31, 1999 and
1998. 16
<PAGE>
<TABLE>
<CAPTION>
Exhibit 99a
PRELIMINARY CONSOLIDATED STATEMENT OF INCOME
The Montana Power Company and Subsidiaries
Quarter Ended Year Ended
December 31, December 31,
1999 1998 1999 1998
Thousands of Dollars
(except per share amounts)
<S> <C> <C> <C> <C>
REVENUES $ 375,353 $ 397,692 $ 1,342,309 $ 1,267,271
EXPENSES:
Operations 189,009 167,455 668,521 541,743
Maintenance 19,635 20,340 81,553 81,064
Selling, general, and administrative 38,026 39,519 138,248 128,741
Taxes other than income taxes 27,256 23,598 103,881 96,181
Depreciation, depletion, and amortization 28,190 28,195 111,145 114,267
Write-downs of long-lived assets 4,174 - 7,083 -
306,290 279,107 1,110,431 961,996
INCOME FROM OPERATIONS 69,063 118,585 231,878 305,275
INTEREST EXPENSE AND OTHER:
Interest 4,017 17,287 43,006 60,851
Distributions on company obligated
mandatorily redeemable preferred
securities of subsidiary trust 1,373 1,373 5,492 5,492
Other income - net (1,748) (1,836) (11,029) (4,862)
3,642 16,824 37,469 61,481
INCOME TAXES 3,361 31,361 44,063 78,174
NET INCOME 62,060 70,400 150,346 165,620
DIVIDENDS ON PREFERRED STOCK 922 922 3,690 3,690
NET INCOME AVAILABLE FOR COMMON STOCK $ 61,138 $ 69,478 $ 146,656 $ 161,930
AVERAGE NUMBER OF COMMON SHARES
OUTSTANDING - BASIC (000) 108,647 110,103* 109,795 109,962*
BASIC EARNINGS PER SHARE OF COMMON STOCK $ 0.56 $ 0.63* $ 1.34 $ 1.47*
AVERAGE NUMBER OF COMMON SHARES
OUTSTANDING - DILUTED (000) 109,343 110,441* 110,553 110,156*
DILUTED EARNINGS PER SHARE OF
COMMON STOCK $ 0.56 $ 0.63* $ 1.33 $ 1.47*
* 1998 figures adjusted for the two-for-one stock split effective August 6, 1999.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Exhibit 99b
PRELIMINARY UTILITY OPERATIONS
Quarter Ended Year Ended
December 31, December 31,
1999 1998 1999 1998
Thousands of Dollars
ELECTRIC UTILITY:
<S> <C> <C> <C> <C>
REVENUES:
Revenues $ 130,057 $ 122,899 $ 456,933 $ 450,719
Intersegment revenues 3,910 2,864 13,616 7,576
133,967 125,763 470,549 458,295
EXPENSES:
Power supply 40,017 40,010 138,705 137,415
Transmission and distribution 14,936 13,146 49,355 40,182
Selling, general, and administrative 22,944 14,624 67,392 53,017
Taxes other than income taxes 13,042 10,380 50,857 46,316
Depreciation and amortization 12,844 16,970 53,574 56,524
103,783 95,130 359,883 333,454
INCOME FROM ELECTRIC OPERATIONS 30,184 30,633 110,666 124,841
NATURAL GAS UTILITY:
REVENUES:
Revenues (other than gas
supply cost revenues) 26,364 23,748 78,359 75,112
Gas supply cost revenues 8,839 9,177 32,759 31,940
Intersegment revenues 181 196 629 727
35,384 33,121 111,747 107,779
EXPENSES:
Gas supply costs 8,839 9,177 32,759 31,940
Other production, gathering, and
exploration 688 727 2,338 2,284
Transmission and distribution 4,126 4,465 14,635 15,556
Selling, general, and administrative 6,323 5,313 21,944 20,191
Taxes other than income taxes 3,833 4,131 14,333 14,084
Depreciation, depletion, and amortization 2,319 2,091 9,279 8,705
26,128 25,904 95,288 92,760
INCOME FROM GAS OPERATIONS 9,256 7,217 16,459 15,019
INTEREST EXPENSE AND OTHER:
Interest 4,535 15,662 48,204 56,357
Distributions on company obligated
mandatorily redeemable preferred
securities of subsidiary trust 1,373 1,373 5,492 5,492
Other income - net (1,020) (1,791) (3,565) (3,723)
4,888 15,244 50,131 58,126
INCOME BEFORE INCOME TAXES 34,552 22,606 76,994 81,734
INCOME TAXES (7,349) 5,097 11,940 26,559
DIVIDENDS ON PREFERRED STOCK 922 922 3,690 3,690
UTILITY NET INCOME AVAILABLE FOR
COMMON STOCK $ 40,979 $ 16,587 $ 61,364 $ 51,485
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Exhibit 99c
PRELIMINARY NONUTILITY OPERATIONS
Quarter Ended Year Ended
December 31, December 31,
1999 1998 1999 1998
Thousands of Dollars
TELECOMMUNICATIONS:
<S> <C> <C> <C> <C>
REVENUES:
Revenues $ 24,054 $ 23,824 $ 84,350 $ 87,748
Earnings from unconsolidated investments 125 4,036 10,392 10,909
Intersegment revenues 373 498 1,012 1,298
24,552 28,358 95,754 99,955
EXPENSES:
Operations and maintenance 8,982 7,173 34,824 27,110
Selling, general, and administrative 3,593 4,083 12,480 12,172
Taxes other than income taxes 1,430 (251) 3,762 3,623
Depreciation and amortization 2,232 1,806 9,048 7,090
16,237 12,811 60,114 49,995
INCOME FROM TELECOMMUNICATIONS OPERATIONS 8,315 15,547 35,640 49,960
COAL:
REVENUES:
Revenues 52,247 49,092 197,053 177,961
Intersegment revenues 10,206 10,295 39,729 38,796
62,453 59,387 236,782 216,757
EXPENSES:
Operations and maintenance 41,171 35,933 150,801 132,963
Selling, general, and administrative 1,759 7,503 16,174 20,588
Taxes other than income taxes 6,184 7,043 25,759 24,050
Depreciation and amortization 1,856 (666) 7,446 6,596
50,970 49,813 200,180 184,197
INCOME FROM COAL OPERATIONS 11,483 9,574 36,602 32,560
INDEPENDENT POWER:
REVENUES:
Revenues 19,374 19,174 75,101 73,707
Earnings from unconsolidated investments 6,014 60,345 21,042 89,525
Intersegment revenues 625 389 1,764 2,014
26,013 79,908 97,907 165,246
EXPENSES:
Operations and maintenance 16,909 17,100 65,343 65,009
Selling, general, and administrative 1,128 1,718 4,160 4,746
Taxes other than income taxes 456 404 1,840 1,767
Depreciation and amortization 780 776 3,122 9,005
19,273 19,998 74,465 80,527
INCOME FROM INDEPENDENT POWER OPERATIONS $ 6,740 $ 59,910 $ 23,442 $ 84,719
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Exhibit 99c
PRELIMINARY NONUTILITY OPERATIONS (continued)
Quarter Ended Year Ended
December 31, December 31,
1999 1998 1999 1998
Thousands of Dollars
OIL AND NATURAL GAS:
<S> <C> <C> <C> <C>
REVENUES:
Revenues $ 96,393 $ 66,389 $ 338,869 $ 221,662
Intersegment revenues 452 4,210 13,315 17,606
96,845 70,599 352,184 239,268
EXPENSES:
Operations and maintenance 74,615 57,836 281,169 183,536
Selling, general, and administrative 4,279 6,543 18,091 20,925
Taxes other than income taxes 1,820 1,295 6,049 4,908
Depreciation, depletion, and amortization 6,579 6,331 23,832 22,259
Write-downs of long-lived assets 4,174 - 7,083 -
91,467 72,005 336,224 231,628
INCOME FROM OIL AND NATURAL
GAS OPERATIONS 5,378 (1,406) 15,960 7,640
OTHER OPERATIONS:
REVENUES:
Revenues 11,886 19,008 47,451 47,988
Intersegment revenues 420 1,143 1,874 1,913
12,306 20,151 49,325 49,901
EXPENSES:
Operations and maintenance 14,113 20,497 50,140 51,634
Selling, general, and administrative (1,585) 1,061 (49) 2,210
Taxes other than income taxes 491 596 1,281 1,433
Depreciation and amortization 1,580 887 4,844 4,088
14,599 23,041 56,216 59,365
LOSS FROM OTHER OPERATIONS (2,293) (2,890) (6,891) (9,464)
INTEREST EXPENSE AND OTHER:
Interest 827 4,383 4,910 11,420
Other income - net (2,073) (2,803) (17,572) (8,065)
(1,246) 1,580 (12,662) 3,355
INCOME BEFORE INCOME TAXES 30,869 79,155 117,415 162,060
INCOME TAXES 10,710 26,264 32,123 51,615
NONUTILITY NET INCOME AVAILABLE
FOR COMMON STOCK $ 20,159 $ 52,891 $ 85,292 $ 110,445
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Exhibit 99d
PRELIMINARY OPERATING STATISTICS
Quarter Ended Year Ended
December 31, December 31,
1999 1998 Change % 1999 1998 Change %
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ELECTRIC UTILITY GENERATION (MWhs):
Hydroelectric 759,343 863,325 (103,982) (12)% 3,691,522 3,741,873 (50,351) (1)%
Coal Fired 1,126,891 1,251,771 (124,880) (10)% 4,685,154 4,515,132 170,022 4 %
Total 1,886,234 2,115,096 (228,862) (11)% 8,376,676 8,257,005 119,671 1 %
HEATING DEGREE DAYS: 2,376 2,795 (419) (15)% 7,251 7,488 (237) (3)%
Normal 2,833 Normal 7,948
COAL SALES (thousand of tons):
Montana 2,841 2,680 161 6 % 10,601 10,499 102 1 %
Texas 2,322 2,437 (115) ( 5)% 8,935 8,832 103 1 %
Total 5,163 5,117 46 1 % 19,536 19,331 205 1 %
NONUTILITY OIL & GAS PRODUCTION SALES VOLUMES:
Oil (Bbls) 131,599 143,717 (12,118) ( 8)% 506,868 605,657 (98,789) (16)%
Natural Gas (Mcfs) 7,584,512 6,737,952 846,560 13 % 28,302,768 25,871,265 2,431,503 9 %
N G Liquids (Bbls) 117,338 141,165 (23,827) (17)% 501,015 602,354 (101,339) (17)%
</TABLE>
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