Dominion Power 2001 Annual Report Download - page 84

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
As of December 31, 2001 and 2000, and for the years ended
December 31, 2001, 2000, and 1999, approximately 2 percent
of Dominion’s total long-lived assets and revenue, respectively,
were associated with international operations. As of December
31, 1999, approximately 8 percent of Dominion’s total long-lived
assets were associated with international operations. Long-lived
assets at December 31, 1999 included Dominion’s investments
in Latin America and in the U.K., which were divested in 2000.
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 and amortization, follow:
(millions) At December 31 2001 2000
Capitalized costs of:
Proved properties $7,303 $5,210
Unproved properties 1,689 550
8,992 5,760
Accumulated depreciation of:
Proved properties 3,043 2,959
Unproved properties 301 233
3,344 3,192
Net capitalized costs $5,648 $2,568
Note 31
82
Total Costs Incurred
The following costs were incurred in gas and oil producing activities during the years 1999 through 2001:
(millions) Year Ended December 31, 2001 2000 1999
United United United
Total States Canada Total States Canada Total States Canada
Property acquisition costs:
Proved properties $1,586 $1,586
—
$1,475 $1,459 $16 $280 $121 $159
Unproved properties 908 897 $ 11 125 125
—
33 3 30
2,494 2,483 11 1,600 1,584 16 313 124 189
Exploration costs 305 305
—
159 115 44 4 2 2
Development costs(1) 512 395 117 261 236 25 85 34 51
Tot al $3,311 $3,183 $128 $2,020 $1,935 $85 $402 $160 $242
(1) Development costs incurred for proved undeveloped reserves were $133 million and $82 million for 2001 and 2000, respectively. Dominion did not incur development costs for proved
undeveloped reserves in 1999.
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.
(millions) Year Ended December 31, 2001 2000 1999
United United United
Total States Canada Total States Canada Total States Canada
Revenue (net of royalties) from:
Sales to nonaffiliated companies $1,144 $ 920 $224 $861 $691 $170 $229 $142 $87
Transfers to other operations 114 114
—
93 93
— ———
Tot al 1,258 1,034 224 954 784 170 229 142 87
Less:
Production (lifting) costs 220 162 58 158 133 25 77 47 30
Depreciation, depletion
and amortization 358 307 51 345 294 51 84 47 37
Income tax expense (benefit) 208 162 46 134 93 41 (10) (19) 9
Results of operations $ 472 $ 403 $ 69 $317 $264 $ 53 $ 78 $ 67 $11