Dominion Power 2003 Annual Report Download - page 96

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94.Dominion 2003
Notes to Consolidated Financial Statements, Continued
Total Costs Incurred
The following costs were incurred in gas and oil producing activities during the years ended December 31, 2003, 2002 and 2001:
2003 2002 2001
United United United
Total States Canada Total States Canada Total States Canada
(millions)
Property acquisition costs:
Proved properties $ 181 $ 181 — $ 243 $ 243
—
$1,586 $1,586
—
Unproved properties 133 125 $ 8 177 170 $ 7 908 897 $ 11
314 306 8 420 413 7 2,494 2,483 11
Exploration costs 291 266 25 267 260 7 305 305
—
Development costs(1) 667 604 63 760 679 81 512 395 117
Total $1,272 $1,176 $96 $1,447 $1,352 $95 $3,311 $3,183 $128
(1) Development costs incurred for proved undeveloped reserves were $182 million, $223 million and $133 million for 2003, 2002 and 2001, respectively.
Results of Operations
Dominion cautions that the following standardized disclosures required by the FASB do not represent the results of operations based on
its historical financial statements. In addition to requiring different determinations of revenue and costs, the disclosures exclude the
impact of interest expense and corporate overhead.
2003 2002 2001
United United United
Total States Canada Total States Canada Total States Canada
(millions)
Revenue (net of royalties) from:
Sales to nonaffiliated companies $1,736 $1,552 $184 $1,396 $1,257 $139 $1,144 $ 920 $224
Transfers to other operations 185 185 — 97 97
—
114 114
—
Total 1,921 1,737 184 1,493 1,354 139 1,258 1,034 224
Less:
Production (lifting) costs 357 294 63 272 220 52 220 162 58
Depreciation, depletion
and amortization 526 470 56 502 452 50 358 307 51
Income tax expense 356 350 6 222 209 13 208 162 46
Results of operations $ 682 $ 623 $ 59 $ 497 $ 473 $ 24 $ 472 $ 403 $ 69
29. Gas and Oil Producing Activities
(unaudited)
Capitalized Costs
The aggregate amounts of costs capitalized for gas and oil pro-
ducing activities, and related aggregate amounts of accumulated
depreciation, depletion and amortization, at December 31, 2003
and 2002 follow:
(millions) 2003 2002
Capitalized costs of:
Proved properties $7,561 $6,265
Unproved properties 1,721 1,440
9,282 7,705
Accumulated depreciation of:
Proved properties 1,476 1,212
Unproved properties 126 151
1,602 1,363
Net capitalized costs $7,680 $6,342