Financial and Operating Highlights
QUARTERLY YEAR-OVER-YEAR ANALYSIS Operating results generally vary from quarter to quarter as a result of changes in general economic conditions and seasonal fluctuations. Results in one quarter are not necessarily indicative of how the Corporation will perform in a future quarter. Natural gas consumption has unique seasonal aspects as customers typically use natural gas as heating fuel during cold winter months through the third and fourth quarters. Fourth Quarter (three months ending March 31) Income increased by $34 million, a result of customer capital contributions being $23 million higher in 2021 as customer projects were completed. Other losses were $16 million lower in 2021 and contributed to increased income in 2021. Winter weather was comparable year over year, contributing to similar revenue patterns. Third Quarter (three months ending December 31) Income decreased $15 million in 2020 as commodity margins declined $7 million, a result of higher natural gas
market prices increasing the average cost of commodity purchases. Delivery revenue decreased $4 million as weather was slightly colder than the prior year. Second Quarter (three months ending September 30) The net loss realized in 2020 was $12 million higher, due to transportation and storage revenue declining $2 million in 2020 and customer capital contributions being $3 million lower in 2020. Employee benefit costs also increased in 2020, a result of filling vacant positions. First Quarter (three months ending June 30) A loss of $4 million in 2020 was $16 million lower than $12 million of income realized in 2019 as reduced volatility in natural gas market prices limited asset optimization opportunities. In addition, customer capital contributions were $7 million higher in 2019 as customer projects were completed.
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