<TABLE>
SOUTHWEST GAS CORPORATION EXHIBIT 99
SUMMARY STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED TWELVE MONTHS ENDED
JUNE 30, JUNE 30, JUNE 30,
---------------------- --------------------- ----------------------
2000 1999 2000 1999 2000 1999
----------- ---------- ---------- ---------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
Gas operating revenues $ 157,885 $ 166,679 $ 424,964 $ 445,789 $ 770,330 $ 806,006
Net cost of gas sold 70,190 71,839 193,694 207,725 316,000 342,819
----------- ---------- ---------- ---------- ----------- ----------
Operating margin 87,695 94,840 231,270 238,064 454,330 463,187
Operations and maintenance expenses 56,340 55,378 113,667 108,944 225,981 215,085
Depreciation, amortization, and general taxes 30,859 28,951 61,948 58,074 119,738 115,158
----------- ---------- ---------- ---------- ----------- ----------
Operating income 496 10,511 55,655 71,046 108,611 132,944
Net interest deductions 16,498 14,431 32,885 29,063 65,419 60,008
Preferred securities distribution 1,369 1,369 2,738 2,738 5,475 5,475
----------- ---------- ---------- ---------- ----------- ----------
Pretax utility income (loss) (17,371) (5,289) 20,032 39,245 37,717 67,461
Utility income tax (7,335) (2,196) 6,034 15,189 11,243 28,361
----------- ---------- ---------- ---------- ----------- ----------
Net utility income (loss) (10,036) (3,093) 13,998 24,056 26,474 39,100
Other income (expense), net (913) (1,283) (583) (1,367) (275) (4,012)
----------- ---------- ---------- ---------- ----------- ----------
Contribution to net income (loss) - gas operations (10,949) (4,376) 13,415 22,689 26,199 35,088
Contribution to net income - construction services 1,220 780 2,054 1,981 3,910 3,680
----------- ---------- ---------- ---------- ----------- ----------
Net income (loss) $ (9,729) $ (3,596) $ 15,469 $ 24,670 $ 30,109 $ 38,768
=========== ========== ========== ========== =========== ==========
Earnings (loss) per share - gas operations $ (0.35) $ (0.14) $ 0.43 $ 0.74 $ 0.84 $ 1.17
Earnings per share - construction services 0.04 0.02 0.07 0.07 0.13 0.12
----------- ---------- ---------- ---------- ----------- ----------
Basic earnings (loss) per share $ (0.31) $ (0.12) $ 0.50 $ 0.81 $ 0.97 $ 1.29
=========== ========== ========== ========== =========== ==========
Diluted earnings (loss) per share $ (0.31) $ (0.12) $ 0.49 $ 0.80 $ 0.96 $ 1.28
=========== ========== ========== ========== =========== ==========
Average outstanding common shares 31,289 30,621 31,215 30,559 31,100 30,123
Average shares outstanding (assuming dilution) -- -- 31,384 30,830 31,325 30,372
The summary statements of income have been prepared by Southwest Gas Corporation
(the Company) using the equity method of accounting for its construction
services subsidiary. This presentation is not in accordance with generally
accepted accounting principles (GAAP). However, it produces the same net income
as the consolidated financial statements and, in management's opinion, is a fair
representation of the operations and contributions to net income of the
Company's operating segments.
</TABLE>
<PAGE>
<TABLE>
SOUTHWEST GAS CORPORATION
SUMMARY STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
<CAPTION>
SIX MONTHS ENDED TWELVE MONTHS ENDED
JUNE 30, JUNE 30,
-------------------------- --------------------------
2000 1999 2000 1999
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Gas operating revenues $ 424,964 $ 445,789 $ 770,330 $ 806,006
Net cost of gas sold 193,694 207,725 316,000 342,819
---------------------------------------------------------------------------------------------------------------
Operating margin 231,270 238,064 454,330 463,187
Operations and maintenance expenses 113,667 108,944 225,981 215,085
Depreciation, amortization, and general taxes 61,948 58,074 119,738 115,158
---------------------------------------------------------------------------------------------------------------
Operating income 55,655 71,046 108,611 132,944
Net interest deductions 32,885 29,063 65,419 60,008
Preferred securities distribution 2,738 2,738 5,475 5,475
---------------------------------------------------------------------------------------------------------------
Pretax utility income 20,032 39,245 37,717 67,461
Utility income tax expense 6,034 15,189 11,243 28,361
---------------------------------------------------------------------------------------------------------------
Net utility income 13,998 24,056 26,474 39,100
Other income (expense), net (583) (1,367) (275) (4,012)
---------------------------------------------------------------------------------------------------------------
Contribution to net income - gas operations 13,415 22,689 26,199 35,088
Contribution to net income - construction services 2,054 1,981 3,910 3,680
===============================================================================================================
Net income $ 15,469 $ 24,670 $ 30,109 $ 38,768
===============================================================================================================
Earnings per share - gas operations $ 0.43 $ 0.74 $ 0.84 $ 1.17
Earnings per share - construction services 0.07 0.07 0.13 0.12
===============================================================================================================
Basic earnings per share $ 0.50 $ 0.81 $ 0.97 $ 1.29
===============================================================================================================
Diluted earnings per share $ 0.49 $ 0.80 $ 0.96 $ 1.28
===============================================================================================================
Average outstanding common shares 31,215 30,559 31,100 30,123
Average shares outstanding (assuming dilution) 31,384 30,830 31,325 30,372
See Notes to Summary Financial Statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
SOUTHWEST GAS CORPORATION
SUMMARY BALANCE SHEET
AT JUNE 30, 2000
(In thousands)
(Unaudited)
<S> <C>
ASSETS
UTILITY PLANT
Gas plant, net of accumulated depreciation $ 1,592,830
Construction work in progress 33,293
---------------
Net utility plant 1,626,123
---------------
OTHER PROPERTY AND INVESTMENTS
Investment in construction services subsidiary 31,387
Other 46,022
---------------
Total other property and investments 77,409
---------------
CURRENT AND ACCRUED ASSETS
Cash, working funds and temporary cash investments 8,126
Receivables - less reserve of $1,766 for uncollectibles 42,904
Accrued utility revenue 23,373
Deferred purchased gas costs 1,278
Other 32,727
---------------
Total current and accrued assets 108,408
---------------
DEFERRED DEBITS
Unamortized debt expense 18,981
Other deferred debits 23,402
---------------
Total deferred debits 42,383
---------------
TOTAL ASSETS $ 1,854,323
===============
CAPITALIZATION AND LIABILITIES
CAPITALIZATION
Common stockholders' equity
Common stock equity, $1 par, 31,358 shares outstanding $ 479,601
Retained earnings 36,144
---------------
Total common stockholders' equity 515,745 36.2 %
Preferred securities of Southwest Gas Capital I, 9.125% 60,000 4.2
Long-term debt - NOTE 2 849,633 59.6
--------------- ------------
Total capitalization 1,425,378 100.0 %
--------------- ============
CURRENT AND ACCRUED LIABILITIES
Notes payable 31,000
Accounts payable 38,076
Customer deposits 28,257
Taxes accrued (including income taxes) 45,531
Other 55,648
---------------
Total current and accrued liabilities 198,512
---------------
DEFERRED CREDITS
Deferred investment tax credits 15,970
Deferred income taxes 161,888
Other 52,575
---------------
Total deferred credits 230,433
---------------
TOTAL CAPITALIZATION AND LIABILITIES $ 1,854,323
===============
See Notes to Summary Financial Statements.
</TABLE>
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<TABLE>
<CAPTION>
SOUTHWEST GAS CORPORATION
SUMMARY STATEMENT OF CASH FLOWS
SIX MONTHS ENDED JUNE 30, 2000
(In thousands)
(Unaudited)
<S> <C>
CASH FLOWS FROM OPERATIONS:
Net income $ 15,469
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 46,836
Change in receivables and payables 38,580
Change in gas cost related balancing items 7,773
Change in accrued taxes 4,562
Change in deferred taxes (952)
Allowance for funds used during construction (684)
Other 6,028
-------------
Net cash provided by operating activities 117,612
-------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Construction expenditures (90,853)
Other 260
-------------
Net cash used in investing activities (90,593)
-------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from stock issuances 7,724
Dividends paid (12,796)
Change in notes payable (30,000)
Long-term debt issuances, net 3,914
-------------
Net cash used in financing activities (31,158)
-------------
Change in cash and temporary cash investments (4,139)
Cash at beginning of period 12,265
-------------
Cash at end of period $ 8,126
=============
SUPPLEMENTAL INFORMATION:
Interest paid, net of amounts capitalized $ 32,059
Income taxes, net of refunds $ 52
See Notes to Summary Financial Statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
SOUTHWEST GAS CORPORATION
NOTES TO SUMMARY FINANCIAL STATEMENTS
(In thousands)
(Unaudited)
NOTE 1 - BASIS OF PRESENTATION:
The summary financial statements have been prepared by Southwest Gas
Corporation (the Company) using the equity method of accounting for its
construction services subsidiary. This presentation is not in accordance
with generally accepted accounting principles (GAAP), and certain
information and footnote disclosures normally included in financial
statements prepared in accordance with GAAP have been omitted. The summary
financial statement presentation in this report produces the same net
income as the consolidated financial statements and, in management's
opinion, is a fair representation of the operations and contributions to
net income of the Company's operating segments.
NOTE 2 - LONG-TERM DEBT:
<S> <C>
Revolving credit facility, variable rate $ 200,000
Debentures and notes:
Debentures, 9.75% series F, due 2002 100,000
Debentures, 7.50% series, due 2006 75,000
Debentures, 8% series, due 2026 75,000
Medium-term notes, 7.59% series, due 2017 25,000
Medium-term notes, 7.78% series, due 2022 25,000
Medium-term notes, 7.92% series, due 2027 25,000
Medium-term notes, 6.89% series, due 2007 17,500
Medium-term notes, 6.76% series, due 2027 7,500
Medium-term notes, 6.27% series, due 2008 25,000
Industrial development revenue bonds:
Variable-rate bonds, Series A, due 2028 - net of funds held in trust 41,010
7.30% 1992 Series A, due 2027 30,000
7.50% 1992 Series B, due 2032 100,000
6.50% 1993 Series A, due 2033 75,000
6.10% 1999 Series A, due 2038 12,410
Variable-rate bonds, 1999 Taxable Series B, due 2038 22,590
Unamortized discount on long-term debt (6,377)
------------
TOTAL LONG-TERM DEBT $ 849,633
============
ESTIMATED CURRENT MATURITIES $ -
============
</TABLE>
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<TABLE>
SOUTHWEST GAS CORPORATION
SELECTED STATISTICAL DATA
JUNE 30, 2000
FINANCIAL STATISTICS
Market value to book value per share at quarter end 107%
Twelve months to date return on equity -- total company 6.0%
-- gas segment 5.5%
Common stock dividend yield at quarter end 4.7%
GAS OPERATIONS SEGMENT
<CAPTION>
Authorized
Authorized Authorized Return on
Rate Base Rate of Common
Rate Jurisdiction (In thousands) Return Equity
-------------------------- -------------- ------------- --------------
<S> <C> <C> <C>
Arizona (1) $ 541,104 9.38 % 11.25 %
Southern Nevada (1) 237,165 9.50 11.55
Northern Nevada (1) 63,986 9.67 11.55
Southern California 69,486 9.94 11.35
Northern California 23,775 10.02 11.35
Paiute Pipeline Company (1) 72,054 9.69 11.60
(1) Estimated amounts based on rate case settlements.
</TABLE>
<TABLE>
<CAPTION>
SYSTEM THROUGHPUT BY CUSTOMER CLASS SIX MONTHS ENDED TWELVE MONTHS ENDED
JUNE 30, JUNE 30,
---------------------------- -----------------------------
(In dekatherms) 2000 1999 2000 1999
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Residential 34,646,987 37,051,568 53,046,169 55,984,863
Small commercial 15,435,918 15,957,431 26,081,514 26,524,178
Large commercial 3,123,192 3,583,670 5,796,083 7,398,927
Industrial / Other 7,393,871 6,820,395 16,004,040 17,628,228
Transportation 65,245,934 56,621,625 127,310,256 112,865,980
-------------------------------------------------------------------------------- ---------------------------- --------------
Total system throughput 125,845,902 120,034,689 228,238,062 220,402,176
============================================================================================================================
HEATING DEGREE DAY COMPARISON
----------------------------------------------------------------------------------------------------------------------------
Actual 1,211 1,423 1,708 2,025
Ten-year average 1,376 1,411 1,990 2,030
============================================================================================================================
</TABLE>
