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Gas industry

Southeastern Michigan Gas Enterprises Reports Improved Net Income in 1994

Strategic Insights

— 1 min read

Southeastern Michigan Gas Enterprises, Inc., a leading natural gas marketer, reported a significant increase in net income for the year 1994. Led by President and Chief Executive Officer Ward N. Kirby, the company witnessed improved results from its natural gas marketing operations, interest savings from debt refinancing, and lower depletion charges. Despite warmer temperatures in the fourth quarter of 1994, the addition of 5,560 new gas sales customers helped mitigate the impact on natural gas usage.

Key Takeaways:

  • Southeastern Michigan Gas Enterprises reported net income of $11,278,000 ($1.02 per share) for the year 1994, a 15% increase from $9,740,000 ($0.97 per share) in 1993.
  • The company recorded extraordinary charges of $1,286,000 ($0.12 per share) in 1994 and $177,000 ($0.01 per share) in 1993 for the early extinguishment of debt.
  • Natural gas marketing margins are low compared to gas sales margins, but the increase in gas volumes marketed in 1994 led to significantly higher operating revenue.
  • The company's distribution operations saw a decrease in total natural gas volumes sold, partially offsetting the improved results.
  • The addition of an average of 5,560 new gas sales customers in 1994 helped reduce the impact of warmer temperatures on natural gas usage.

Statistics:

  • Gas volumes marketed in 1994 were significantly higher than in 1993, contributing to higher operating revenue.
  • The company's gas marketing margins are low compared to gas sales margins, but the increase in gas volumes marketed led to a 15% increase in net income.
  • Temperatures in the first quarter of 1994 were 10% colder than the same period in 1993, contributing to increased natural gas usage.
  • Temperatures in the fourth quarter of 1994 were almost 17% warmer than the fourth quarter of 1993, which could have negatively impacted natural gas usage.

Sources:

  • PRNewswire, Feb. 9 (Source not available)
  • Southeastern Michigan Gas Enterprises, Inc. (Source not available)
  • Contact: Marcia M. Chmielewski, Vice President and Treasurer of Southeastern Michigan Gas Enterprises, 810-987-2200 (Source not available)

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