Dominion Power 2000 Annual Report Download - page 68

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Notes to Consolidated Financial Statements (continued)
Note 26 Quarterly Financial and Common Stock Data
(unaudited)
The following amounts reflect all adjustments, consisting of only
normal recurring accruals (except as disclosed below), necessary
in the opinion of Dominion’s management for a fair statement of
the results for the interim periods.
(millions, except per share amounts) 2000 1999
Operating revenue and income
First Quarter $2,072 $1,293
Second Quarter 2,056 1,315
Third Quarter 2,351 1,663
Fourth Quarter 2,781 1,249
Year $9,260 $5,520
Income from operations
First Quarter $ 415 $ 322
Second Quarter 71 300
Third Quarter 658 492
Fourth Quarter 385 214
Year $1,529 $1,328
Income (loss) before extraordinary
item and cumulative effect of a change
in accounting principle
First Quarter $ 143 $ 138
Second Quarter (103) 120
Third Quarter 255 235
Fourth Quarter 120 59
Year $ 415 $ 552
Net income (loss)
First Quarter $ 143 $ (117)
Second Quarter (103) 120
Third Quarter 255 235
Fourth Quarter 141 59
Year $ 436 $ 297
Earnings (loss) per share before extraordinary item and cumulative effect
of a change in accounting principle
Basic Diluted
2000 1999 2000 1999
First Quarter $ 0.64 $ 0.71 $ 0.64 $ 0.71
Second Quarter (0.44) 0.63 (0.44) 0.63
Third Quarter 1.07 1.23 1.07 1.23
Fourth Quarter 0.49 0.31 0.49 0.24
Year $ 1.76 $ 2.88 $ 1.76 $ 2.81
Earnings (loss) per share
Basic Diluted
2000 1999 2000 1999
First Quarter $ 0.64 $ (0.61) $ 0.64 $ (0.61)
Second Quarter (0.44) 0.63 (0.44) 0.63
Third Quarter 1.07 1.23 1.07 1.23
Fourth Quarter 0.58 0.30 0.58 0.23
Year $ 1.85 $ 1.55 $ 1.85 $ 1.48
In the foregoing determination of future cash inflows, sales prices
for gas were based on contractual arrangements or market prices at
each year-end. Prices for oil were based on average prices received
from sales in the month of December each year. Future cash inflows
also reflect the effects of hedging activities. Future costs of devel-
oping and producing the proved gas and oil reserves reported at the
end of each year shown were based on costs determined at each
such year end, assuming the continuation of existing economic con-
ditions. Future income taxes were computed by applying the appro-
priate year-end or future statutory tax rate to future pretax net cash
flows, less the tax basis of the properties involved, and giving
effect to tax deductions, or permanent differences and tax credits.
It is not intended that the FASB’s standardized measure of dis-
counted future net cash flows represent the fair market value of
the Company’s proved reserves. The Company cautions that the dis-
closures shown are based on estimates of proved reserve quanti-
ties and future production schedules which are inherently imprecise
and subject to revision, and the 10% discount rate is arbitrary. In
addition, present costs and prices are used in the determinations
and no value may be assigned to probable or possible reserves.
The following tabulation is a summary of changes between the
total standardized measure of discounted future net cash flows at
the beginning and end of each year.
(millions) Year ended December 31, 2000 1999 1998
Standardized measure of discounted
future net cash flows at January 1 $ 549 $ 382 $ 329
Changes in the year resulting from:
Sales and transfers of gas and oil produced
during the year, less production costs (796) (152) (98)
Prices and production and development
costs related to future production 8,706 (110) (114)
Extensions, discoveries and other additions,
less production and development costs 1,602 103 61
Previously estimated development costs
incurred during the year 82 57 71
Revisions of previous quantity estimates (778) 34 8
Accretion of discount 259 44 40
Income taxes (3,309) (44) 8
Acquisition of CNG 1,322
Other purchases and sales of proved reserves
in place 994 245 83
Other (principally timing of production) (1,293) (10) (6)
Standardized measure of discounted
future net cash flows at December 31 $ 7,338 $ 549 $ 382