Midcontinent Express Pipeline LLC submits tariff filing per 154.403(d)(2): Fuel Tracking Filing to be effective 6/1/2013 under RP13-846 Filing Type : 650
04/29/20132013 Annual Report & Form 10-K Financial and Operating Highlights Year ended December 31, In millions, except per share amounts 2013 2012 2011 Net income 1 $ 174.1 $ 159.0 $141.6 Return on average common shareholders equity (ROE) 1 11.3% 10.6% 9.8% Shares outstanding at year-end 82.4 82.2 81.9 Average shares outstanding for basic earnings 82.3 82.0 81.8 Per Common Share Basic earnings 1 $ 2.12 $ 1.94 $ 1.73 Dividends paid $ 1.425 $ 1.405 $ 1.385 Annual dividend rate at year-end $ 1.44 $ 1.42 $ 1.40 Book value $ 18.86 $ 18.57 $ 17.89 Market price at year-end $ 35.50 $ 29.40 $ 30.23 Earnings Dividends Book Value Per Share Per Share Per Share $ 2.20 $ 1.50 $ 19.00 2.00 1.40 18.50 1.80 1.30 18.00 1.60 1.20 17.50 1.40 1.10 17.00 1.20 1.00 16.50 1 2011 2012 2013 2011 2012 2013 2011 2012 2013 1 In 2013, excludes a $37.5 million, or $0.46 per share, after-tax loss from ProLiance in the year of disposition of its gas marketing assets. Reported results for 2013 were net income of $136.6 million, or $1.66 per share. Based upon reported results, the return on average shareholders equity for 2013 was 8.9%. See page 33 of the Form 10-K incorporated herein for more information regarding the use of non-GAAP measures. Table of Contents Letter to Shareholders.................................................. 1 5-Year Financial Review............................................ 133 Vectren at a Glance...................................................... 4 Performance Chart.................................................... 134 Form 10-K.................................................................... 5 Shareholder Information............................................ 136 Managements Discussion and Analysis.................. 31 Financial Statements and Notes.............................. 67 Directors and Officers............................................... IBC Excluding a $37.5 million after-tax loss from ProLiance in 2013, Nonutility group results were strong at $33 million, compared to $21.7 million in 2012. Infrastructure Services eclipsed its exceptional 2012 performance of $40.5 million by ending 2013 with $49 million in net income. This business is our most significant contributor to nonutility results and has demonstrated tremendous growth over the last three years. Earnings at Energy Systems Group (ESG), our Energy Services company, were $1 million, compared to $5.7 million in 2012. Their 2013 performance reflects continued lower revenues from slow demand for performance contracting projects due primarily to budgetary constraints on state, municipal and school customers. When looking at our remaining commodity-sensitive business, Vectren Fuels, it was again challenged in 2013. Coal Mining reported a loss of ($16) million, compared to a loss of ($3.5) million in 2012. While coal sales and related revenues were higher in 2013, results were lower due to higher production costs associated with a thin coal seam and other unfavorable mining conditions at our Prosperity min