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Equitable Resources Announces 2006 Annual Earnings of $1.80 per Share.

Article Excerpt
PITTSBURGH, Jan. 25 /PRNewswire-FirstCall/ -- Equitable Resources, Inc. today announced 2006 annual earnings per diluted share (EPS) of $1.80 on net income of $220.3 million. This compares with EPS of $2.10 on net income of $260.1 million in 2005. Several non-operational factors, discussed below, should be considered when comparing 2006 and 2005 results, including a $110.3 million gain on the sale of Kerr-McGee Corporation (KMG) shares in 2005.



RESULTS BY SEGMENT Equitable Utilities

Equitable Utilities had operating income of $125.2 million for 2006, compared with $98.3 million for 2005, a 27% increase. Net revenues increased $21.6 million or 9% over the previous year. Distribution net revenues were 9% lower as a result of record warm weather, which was 10% warmer than in 2005 and 15% warmer than the 30-year normal, as measured in heating degree-days. Pipeline net revenues increased $18.8 million or 35% over the prior year resulting from revenue associated with the rate case settlement in the first quarter and higher gathering activity. Marketing net revenues were $16.4 million higher than in 2005, benefiting from favorable storage asset optimization opportunities.

Total operating expenses for 2006 were 3% lower at $149.8 million, compared to $155.1 million in 2005. Expenses planning for the acquisition of Peoples Gas and Hope Gas totaled $12.3 million in 2006. Excluding these costs, lower pension-related expenses, lower bad debt expense and the partial reversal of a 2005 lease impairment were partially offset by higher pipeline expenses primarily associated with deferred rate-related costs and higher gathering expenses.

Operating income for the 2006 fourth quarter was $46.4 million, 23% higher than the $37.7 million earned in the year ago quarter. Net revenues were $90.7 million, $14.8 million higher than fourth quarter 2005 revenues of $75.9 million. Higher marketing and pipeline net revenues more than offset lower distribution net revenues resulting from warmer weather. Operating expenses in the quarter increased $6.2 million, to $44.4 million in 2006. The majority of that increase was due to $5.9 million spent in planning for the acquisition of Peoples Gas and Hope Gas.

Equitable Supply

Equitable Supply had operating income of $269.2 million in 2006, 8% lower than the $293.6 million in 2005. Total revenues for...

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