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HOUSTON, April 25 /PRNewswire-USNewswire/ — One day after the announcement by Russia’s energy giant Gazprom that it plans to become a significant supplier of natural gas to the United States, the U.S. energy capital, Houston, Texas, served as the backdrop for the fourth day of a U.S.-Russia Road Show aimed at drawing attention to bilateral successes in the commercial sphere and the imperative for increased political cooperation between the two countries.
At a luncheon organized by the Houston World Affairs Council and sponsored by U.S. oil major ConocoPhillips, U.S.-Russia business Council President Eugene Lawson saluted ConocoPhillips and Russia’s largest private oil company, Lukoil, for setting an excellent example as to how U.S. and Russian businesses can work together for common benefit and profitability. ConocoPhillips owns a 20 percent share of Lukoil, and the companies are successfully partnering in Russia on a series of projects. Additionally, Lukoil has expanded into the United States with its operation of service stations on the East Coast.
While all the U.S. oil majors are active in Russia, opportunities for U.S.-Russian commercial cooperation extend beyond the energy sector, according to Lawson. Growth in Russia’s economy has provided opportunities in real estate, consumer goods, manufacturing, high technology, and services. “What is particularly telling about the Russian market and the successes of U.S. business there is that 80 percent of U.S. companies say that their ROI is higher in Russia than in any other emerging market,” noted Lawson. Additionally, Lawson noted that the single most important item on the bilateral commercial agenda is Russia’s accession to the World Trade Organization, which will increase opportunities for Texas companies in the Russian market as Russia liberalizes its economy in conjunction with its WTO commitments. Texas currently exports $1.2 billion in goods annually to Russia, with machinery, transportation equipment, chemicals, and computers as the state’s leading exports.
Russian Federation Senator Mikhail Margelov, the Chair of the Foreign Affairs Committee in the upper chamber of Russia’s parliament, noted that the Jackson-Vanik Amendment — the U.S. law that has the potential to prevent the U.S. private sector from sharing in Russia’s liberalizations once it enters the WTO — should have been repealed long ago. Pointing to how far Russia has come on the matter that served as the genesis for the law — Jewish emigration — Margelov commented that last month Russia and Israel agreed to abolish visas for travel between the two countries.
Russia continues to make significant progress in its bid to join the WTO, informed Lawson, and could enter the WTO as early as this year. He underlined that the U.S. business community effort — organized as the Coalition for U.S. Russia Trade () and spearheaded by the U.S.-Russia business Council in Washington, DC — is seeking a strong and meaningful accession agreement. “Some important issues are outstanding, but once that agreement is in hand, we will pull out the stops to work with the U.S. Congress to ensure that U.S. firms and farmers have equal access to the Russian market by graduating Russia from Jackson-Vanik and extending Russia permanent normal trade relations (PNTR),” said Lawson.
About the U.S.-Russia business Council (USRBC)
The U.S.-Russia business Council (USRBC) represents the interests of its 300 U.S. and Russian member companies, providing business development and government relations support in both Moscow and Washington. The USRBC contributes to the stability and development of a free market in Russia and supports Russia’s integration into the global economy. It also serves as the Secretariat for the Coalition for U.S.-Russia Trade (). For more information, visit the USRBC online at: .
U.S.-Russia business Council

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NEW YORK, Aug. 7 /PRNewswire-FirstCall/ — China Natural Gas, Inc. (OTC Bulletin Board: CHNG), one of the leading providers of compressed natural gas (CNG) for vehicular fuel and pipeline natural gas for industrial, commercial and residential use in Xi’an, China, announced today that it has enhanced its Board of Directors with three new directors. Mr. Donald Yang Xiang Dong will serve as a member of the committees, while Mr. Carl Yeung and Mr. Lawrence W. Leighton will serve as Chairman of the audit and compensation committees, respectively.
These appointments bring the Company’s Board of Directors to five members, including Mr. Qinan Ji, CEO and Chairman of the Board and Mr. Zhiqiang Wang, Vice Chairman of the Board. Mr. Carl Yueng and Mr. Lawrence W. Leighton will be independent board members.
“Today’s announcement exemplifies our commitment to strengthen our corporate governance system. On behalf of the Company, I welcome our new directors. We believe that their extensive experience in business and finance will provide guidance to the senior management team as we continue to grow our business and we look forward to working with them,” stated Mr. Qinan Ji, CEO and Chairman of the Board of China Natural Gas, Inc.
Mr. Donald Yang is the President and a Founding Partner of Abax Global Capital (AGC), a leading Hong Kong based investment firm. He was a Managing Director responsible for Merrill Lynch’s Hong Kong and China Debt Capital Markets division from 2000 to 2007. Mr. Yang also serves as a director for Sinoenergy Corporation (SNEH), a NASDAQ listed company. Mr. Yang holds an MBA degree from Wharton School of business and a BA degree from Nankai University in China.
Mr. Carl Yeung is the Chief Financial Officer of ATA Inc, a China based, leading provider of computer-based testing and education services in China listed on the NASDAQ Global Market. Prior to that, Mr. Yeung worked as an associate and analyst at Merrill Lynch (Asia Pacific) Limited from 2002 to 2006. Mr. Yeung holds a bachelor’s degree in economics with concentrations in finance and operations management from Wharton School, University of Pennsylvania, and a bachelor’s degree in applied science with concentration in systems engineering from School of Engineering and Applied Sciences, University of Pennsylvania.
Mr. Lawrence W. Leighton is a Managing Director of Bentley Associates L.P. He has over 40 years of extensive experience in international investment banking. Prior to that, he was the President and Chief Executive Officer of UI USA, the US subsidiary of Union d’Etudes et d’Investissements, the merchant banking arm of Credit Agricole. Previously, he also worked as a Limited Partner of Bear Stearns & Co. and a Managing Director of Chase Investment Bank. Mr. Leighton holds a B.S.E in Engineering from Princeton University and an MBA degree from Harvard business School.
About China Natural Gas, Inc.
China Natural Gas, Inc., (”CHNG”), is the first China-based natural gas retailing company publicly traded in the U.S. It currently owns and operates a network of CNG retail filling stations as well as a 120 kilometer long compressed natural gas pipeline in Xi’an, China. Xi’an is a fast growing Chinese city supported by a population of approximately eight million and is the “gateway” to the broad Western regions of China. CHNG currently retails natural gas at company-owned filling stations, delivers natural gas services to residential, commercial and industrial customers, and converts gasoline-fueled vehicles to hybrid (natural gas/gasoline) powered vehicles. Currently it is estimated that there are 5,000 buses and 20,000 taxis using CNG in Xi’an.
This press release may contain forward-looking statements. These statements are based on the current expectations or beliefs of China Natural Gas, Inc. management and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements, including the fluctuation of natural gas prices, the availability of natural gas supplies, changes in governmental regulations and/or economic policies and our ability to penetrate the new markets.
CONTACT
In the U.S.:
Ashley Ammon MacFarlane or Wei-Jung Yang
ICR, Inc.
203-682-8200

China Natural Gas, Inc.

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BLUFFTON, Ind., April 28 /PRNewswire-FirstCall/ — Franklin Electric Co., Inc. reported diluted earnings per share of $0.35 for the first quarter of 2008, an increase of 67 percent compared to 2007 first quarter earnings per share of $0.21, and first quarter income of $8.1 million in 2008, an increase of 66 percent compared to $4.9 million for the same period a year ago.
(Logo: )
First quarter sales were a record $176.0 million, up $45.5 million or 35 percent compared to $130.5 million in 2007. First quarter sales attributed to acquisitions were $28.7 million. The Company’s total organic growth was about 17 percent for the quarter including organic growth achieved by acquired companies and $7.0 million of growth from foreign exchange rate changes.
Water Systems sales worldwide were $136.7 million, up $36.1 million or 36 percent for the first quarter of 2008 compared to the same period for 2007. Water Systems’ total organic growth was about 12 percent for the quarter. The growth was primarily attributable to increased sales in the United States, Canada, Latin America and the Middle East.
Fueling Systems sales worldwide were $39.3 million, an increase of approximately 31 percent for the first quarter of 2008 compared to the same period for 2007. Fueling Systems’ sales growth was organic and driven by increased sales of vapor recovery and electronic fuel management systems.
R. Scott Trumbull, Chairman and Chief Executive Officer of the Company, stated: “First quarter 2008 sales of $176.0 million were on track with our expectations. Our sales and operating income were records for any first quarter in the Company’s history, and net income was the second best first quarter on record. Growth in the Water Systems segment occurred in spite of the dramatic drop in housing starts in the United States as our pump product lines continued to gain market share. Our Fueling Systems business is benefiting from high demand for vapor recovery systems in California as gas stations upgrade their emissions control systems to be in compliance with clean air regulatory standards.”
Gross profit margin, at 29.2 percent of sales, declined in the first quarter of 2008 approximately 60 basis points from the comparable quarter of 2007. The primary cause for the 2008 margin decline was reduced facility utilization consistent with management’s plan to reduce finished goods inventory and so increase turns over the course of the year. In response to rising commodity costs (e.g., aluminum, copper and steel), the Company announced market price increases for most of its product lines effective during the first and second quarters of 2008.
Selling, general, and administrative expenses increased by $6.9 million in the first quarter of 2008 compared to first quarter last year. The acquisitions of Pump Brands (South Africa), the pump division of Monarch Industries (Canada) and Schneider Motobombas (Brazil) added approximately $6.1 million to selling, general and administrative expenses for the first quarter of 2008. Selling, general, and administrative expenses as a percentage of sales declined by about 195 basis points versus the first quarter prior year.
For the first quarter 2008, the Company’s operating income was a record $15.1 million, up $6.8 million or about 80 percent compared to $8.2 million for the same period a year ago. Operating margins for the quarter were 8.6 percent compared to 6.3 percent last year.
Interest expense increased by $1.4 million due to the debt incurred to fund acquisitions coupled with the first quarter seasonal build-up of working capital to serve the Water Systems and Fueling Systems markets in the second and third quarters.
The effective tax rate for 2008 increased to 36.3 percent (before the impact of one-time benefits) from the prior year’s rate of 35.0 percent. The increase was primarily due to the loss of the research and development tax credit which has not been renewed by the Congress at this time.
During the first quarter of 2007, the Company initiated Phase 2 of its Global Manufacturing Realignment Program. Phase 2 of the Realignment Program included expanding facilities in low-cost regions and shifting production out of higher cost manufacturing facilities. During the first quarter 2008, having finished construction of the new pump plant in Linares, Mexico, the Company completed Phase 2 of the Global Manufacturing Realignment Program. In total, this phase included severance and equipment relocation costs of $4.0 million pre-tax with $3.9 million occurring in 2007 and $0.1 million occurring in the first quarter 2008. As previously disclosed, Phase 1 of the Realignment Program, which was completed in December 2005, resulted in $7.5 million of pre-tax restructuring expenses.
Mr. Trumbull commented on the Company’s continued emphasis on earnings growth in 2008 and beyond: “For several quarters I have assured our shareowners that while earnings declined in 2007 for the first time in six years, the impact of the competitive factors that caused the decline would diminish in 2008 and we would return to the path of growing earnings. I am pleased that our first quarter performance begins to validate this forecast.
— Our improvement during the quarter was driven by a combination of
organic sales growth, fixed cost leverage, and accretion from recent
acquisitions. Globally, the Water Systems segment achieved organic
growth of 12 percent during the quarter led by solid sales increases to
distributors in the United States; and to both distributors and OEMs in
Latin America and the Middle East.

— Our Fueling Systems segment achieved organic growth of 31 percent as
vapor recovery system sales grew rapidly in both California and in
international markets.

— For several years we have focused on expanding our sales base in
developing regions where we foresee growing demand for our Water
Systems products. During the first quarter, sales in developing regions
represented about 35 percent of our total Water Systems revenues and
grew organically by about 14 percent.

— Fixed Costs (which we define as fixed manufacturing costs,
restructuring costs and SG&A less commissions,) as a percentage of
sales during the first quarter of 2008 are on track to improve on a
full year basis from the prior year. Fixed cost spending reductions
contributed to offset higher material and freight costs and achieve a
225 basis point improvement in operating income as a percent of sales
versus the first quarter of the prior year.

— Our recently acquired companies, Pump Brands (South Africa), the pump
division of Monarch Industries (Canada), and Schneider Motobombas
(Brazil) all performed well during the quarter and the integrations
are on track.

As we look forward we anticipate organic sales growth in excess of 12 percent and total sales growth in the range of 25 percent. This growth combined with spending controls should allow us to achieve Fixed Costs improvements of about 220 basis points for the full year 2008. While these factors will have a significant impact on earnings growth, we are carefully monitoring signs of increased material cost inflation in copper, steel, and freight to determine our pricing and cost reduction plans for the second half of the year. We also anticipate opportunities to complete additional “bolt-on” acquisitions that will enhance our product offering and expand our global distribution footprint.”
Franklin Electric is a global leader in the production and marketing of systems and components for the movement of water and automotive fuels. Recognized as a technical leader in its specialties, Franklin serves customers around the world in residential, commercial, agricultural, industrial, municipal, and fueling applications.
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein, including those relating to the Company’s financial results, business goals and sales growth, involve risks and uncertainties, including but not limited to, risks and uncertainties with respect to general economic and currency conditions, various conditions specific to the Company’s business and industry, weather conditions, new housing starts, market demand, competitive factors, changes in distribution channels, supply constraints, technology factors, litigation, government and regulatory actions, the Company’s accounting policies, future trends, and other risks which are detailed in the Company’s Securities and Exchange Commission filings, included in Item 1A of Part I of the Company’s Annual Report on Form 10-K for the fiscal year ending December 29, 2007, Exhibit 99.1 attached thereto and in Item 1A of Part II of the Company’s Quarterly Reports on Form 10-Q. These risks and uncertainties may cause actual results to differ materially from those indicated by the forward- looking statements. All forward-looking statements made herein are based on information currently available, and the Company assumes no obligation to update any forward-looking statements.
FRANKLIN ELECTRIC CO., INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share amounts)

First Quarter Ended

March 29, March 31,
2008 2007

Net sales $176,010 $130,496

Cost of sales 124,551 91,567

Gross profit 51,459 38,929

Selling and administrative expenses 36,311 29,455

Restructuring expense 82 1,238

Operating income 15,066 8,236

Interest expense (2,624) (1,212)
Other income 471 298
Foreign exchange gain (loss) (327) 247

Income before income taxes 12,586 7,569

Income taxes 4,438 2,672

Net income $8,148 $4,897

Net income per share:
Basic $0.35 $0.21
Diluted $0.35 $0.21

Weighted average shares and equivalent
shares outstanding:
Basic 23,030 23,088
Diluted 23,293 23,499

FRANKLIN ELECTRIC CO., INC.
CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands) Mar. 29, Dec. 29,
2008 2007
ASSETS:

Cash and equivalents $33,623 $65,252
Receivables 99,513 64,972
Inventories 164,593 156,146
Other current assets 26,225 23,109
Total current assets 323,954 309,479

Property, plant and equipment, net 143,576 134,931
Goodwill and other assets 251,221 217,827
Total assets $718,751 $662,237

LIABILITIES AND SHAREOWNERS’ EQUITY:

Accounts payable $32,221 $27,986
Accrued liabilities 54,979 52,265
Current maturities of long-term
debt and short-term borrowings 55,577 10,398
Total current liabilities 142,777 90,649

Long-term debt 152,202 151,287
Deferred income taxes 12,135 11,686
Employee benefit plan obligations 24,473 24,713
Other long-term liabilities 5,134 5,358

Shareowners’ equity 382,030 378,544
Total liabilities and shareowners’
equity $718,751 $662,237

FRANKLIN ELECTRIC CO., INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands) March 29, March 31,
2008 2007

Cash flows from operating activities:
Net income $8,148 $4,897
Adjustments to reconcile net
income to net cash flows from
operating activities:
Depreciation and amortization 6,229 4,730
Stock based compensation 1,106 1,363
Deferred income taxes (126) 365
Loss/(gain) on disposals of
plant and equipment 42 20
Changes in assets and liabilities:
Receivables (30,047) (17,984)
Inventories (4,141) (20,716)
Accounts payable and other
accrued expenses (5,222) (10,604)
Accrued income taxes 1,351 (7,415)
Excess tax from share-based
payment arrangements (64) (1,158)
Employee benefit plans (639) 574
Other, net (1,921) (1,150)
Net cash flows from operating activities (25,284) (47,078)
Cash flows from investing activities:
Additions to plant and equipment (6,758) (4,584)
Proceeds from sale of plant and
equipment 10 16
Additions to other assets (500) -
Purchases of securities (9,000) -
Proceeds from sale of securities 9,000 -
Cash paid for acquisitions, net of cash (35,465) -
Proceeds from sale of business - 1,310
Net cash flows from investing activities (42,713) (3,258)
Cash flows from financing activities:
Additions to short-term debt 45,000 -
Repayment of short-term debt (19) -
Additions to long-term debt - 50,000
Repayment of long-term debt (107) (79)
Proceeds from issuance of common stock 176 2,266
Excess tax from share-based payment
arrangements 64 1,158
Purchases of common stock (7,813) -
Reduction of loan to ESOP Trust - 200
Dividends paid (2,771) (2,536)
Net cash flows from financing activities 34,530 51,009
Effect of exchange rate changes on cash 1,838 (133)
Net change in cash and equivalents (31,629) 540
Cash and equivalents at beginning of
period 65,252 33,956
Cash and equivalents at end of period $33,623 $34,496

Franklin Electric Co., Inc.

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LAS VEGAS, April 23 /PRNewswire-FirstCall/ — Sierra Pacific Resources today announced consolidated net income applicable to common stock of $24.1 million, or 10 cents per share, for the quarter ended March 31, 2008, compared with net income applicable to common stock of $15.6 million, or seven cents per share for the same period in 2007. The improvement in earnings is primarily a result of a mid-year 2007 rate increase, customer growth, and favorable impact of Allowance for Funds Used During Construction related primarily to the Clark Power Station in Las Vegas and the Tracy Combined Cycle Plant near Reno.
Michael Yackira, president and chief executive officer of Sierra Pacific Resources, said, “We are pleased with the company’s continuing solid financial and operating results. We believe our positive momentum will be maintained as we continue to aggressively pursue the three-part strategy that calls for increasing energy conservation, expanding development and investments in renewable energy and increasing Nevada’s generation capacity utilizing traditional fuels.”
“Yesterday’s announcement of our agreement to acquire Reliant Energy’s 598-megawatt (MW) natural gas-fired, combined-cycle Bighorn Generating Station in southern Nevada is another step forward in our strategy to assure that we have reliable electric service in Nevada,” Yackira added. “In northern Nevada, a new 541 MW unit at our Tracy Generating Station will begin operation before this summer. We are nearing completion of two new gas-fired power projects at our Clark Generating Station in Las Vegas that will total approximately 600 MW of peaking capacity and will be opening this spring and summer. These projects will reduce the impact for our customers from the effects of price volatility found on the open market. We also recently announced plans for the company to invest directly in two renewable energy projects in Nevada.”
Sierra Pacific Resources’ utilities, Nevada Power and Sierra Pacific Power contributed electric gross margin of $165 million and $94 million, respectively, for the quarter ended March 31, 2008 compared with $132 million and $92 million, respectively, in the same period in 2007; and $16.5 million in gross margin from Sierra Pacific’s gas business for the quarter ended March 31, 2008 compared with $15 million in the same period in 2007.
Megawatt hour sales were up 2.4% at Nevada Power and flat at Sierra Pacific Power for the first quarter 2008 when compared with the first quarter 2007. Retail sales measured in decatherms were up 7.9% for Sierra Pacific’s Gas Distribution Business. The number of residential, commercial and industrial electric customers served by Nevada Power increased by 1.5 percent, 3.7 percent and 3.4 percent, respectively, in the first quarter of 2008 compared with the 2007 first quarter. Sierra Pacific Power’s residential, commercial and industrial electric customers increased by 1.2 percent, 2.5 percent and .7 percent, respectively, in the first quarter of 2008 compared with the 2007 first quarter. The number of residential, commercial and industrial gas customers served by Sierra Pacific Power increased by 1.5 percent, 3.1 percent and 35.0 percent, respectively, in the first quarter of 2008 compared with the 2007 first quarter.
The companies expect to file their Quarterly Reports on Form 10-Q for the period ended March 31, 2008, with the Securities and Exchange Commission on or about May 2, 2008, at which time the Form 10-Q reports will be available without charge through the EDGAR system at the SEC’s website. The Form 10-Q reports will also be posted on Sierra Pacific Resources’ website, .
Webcast Scheduled for 7 a.m. PDT Today
Senior management of Sierra Pacific Resources will review the company’s first quarter 2008 financial results, regulatory issues and other matters during a conference call and live webcast today, April 23, at 7 a.m. Pacific Daylight Time.
The webcast will be accessible on the Sierra Pacific Resources website: .
An archived version of the webcast will remain on the Sierra Pacific Resources’ website for approximately one month following the live webcast. To listen to a recording of the call by telephone, call (800) 475-6701, and international callers should dial (320) 365-3844. Use the conference call access code, 919549, to listen to the recording.
Headquartered in Nevada, Sierra Pacific Resources is a holding company whose principal subsidiaries are Nevada Power Company, the electric utility for Las Vegas and surrounding areas, and Sierra Pacific Power Company, the electric utility for most of northern Nevada and the Lake Tahoe area of California. Sierra Pacific Power Company also distributes natural gas in the Reno-Sparks area of northern Nevada.
This press release contains forward-looking statements regarding the future performance of Sierra Pacific Resources and its subsidiaries, Nevada Power Company and Sierra Pacific Power Company, within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from current expectations. For Sierra Pacific Resources, these risks and uncertainties include, but are not limited to, Sierra Pacific Resources’ ability to maintain access to the capital markets, Sierra Pacific Resources’ ability to receive dividends from its subsidiaries, the financial performance of Sierra Pacific Resources’ subsidiaries, particularly Nevada Power Company and Sierra Pacific Power Company, and the discretion of Sierra Pacific Resources’ Board of Directors with respect to the payment of future dividends based on its periodic review of factors that ordinarily affect dividend policy, such as current and prospective financial condition, earnings and liquidity, prospective business conditions, regulatory factors, and dividend restrictions in Sierra Pacific Resources’ and its subsidiaries’ financing agreements. For Nevada Power Company and Sierra Pacific Power Company, these risks and uncertainties include, but are not limited to, unfavorable rulings in their pending and future regulatory filings, their ability to maintain access to the capital markets for general corporate purposes and to finance construction projects, and their ability to purchase sufficient fuel, natural gas and power to meet their power demands and natural gas demands for Sierra Pacific Power Company. Additional cautionary statements regarding other risk factors that could have an effect on the future performance of Sierra Pacific Resources, Nevada Power Company and Sierra Pacific Power Company are contained in their Annual Reports on Form 10-K for the year ended December 31, 2007, each filed with the SEC. The companies undertake no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Financial Highlights
(Dollars in Thousands, Except Per Share Amounts)
(Unaudited)

Sierra Pacific Resources
Three Months Ended
March 31,
2008 2007
Operating revenues $805,051 $756,431
Other operating expenses $91,675 $84,747
Maintenance $23,122 $23,745
Depreciation and amortization $62,070 $56,233
Income taxes (benefits) $8,619 $(755)
Taxes other than income $13,907 $12,979

Operating income $76,813 $61,930

Other income (expense):
Allowance for other funds used
during construction $11,957 $6,567
Income taxes $(8,089) $(11,383)

Interest Charges $68,504 $69,669

Net Income Applicable to
Common Stock $24,058 $15,607

Amount per share basic and diluted-
Net Income Applicable to
Common Stock $0.10 $0.07

Weighted Average Shares
of Common Stock Outstanding:
Basic - 233,836,234 221,245,427
Diluted - 234,321,972 221,701,854

Capital Structure
March 31, 2008 March 31, 2007
Current maturities of
long-term debt $110,168 2% $8,625 0%
Long-term debt 4,173,617 57% 4,147,322 61%
Total Debt $4,283,785 59% $4,155,947 61%

Common shareholders’ equity $3,004,497 41% $2,642,158 39%
Total Capitalization (including
current maturities of long-term
debt) $7,288,282 100% $6,798,105 100%

Nevada Power Company
Three Months Ended
March 31,
2008 2007
Operating revenues $469,172 $418,165
Other operating expenses $57,095 $50,839
Maintenance $16,650 $17,464
Depreciation and amortization $40,630 $35,761
Income taxes (benefits) $2,132 $(8,212)
Taxes other than income $8,322 $7,734

Operating income $40,797 $27,968

Other income (expense):
Allowance for other funds
used during construction $6,858 $3,098
Income taxes $(4,391) $(10,578)

Interest Charges $41,473 $43,992

Net Income $7,971 $4,582

Capital Structure
March 31, 2008 March 31, 2007
Current maturities of
long-term debt $8,616 0.2% $6,225 0.1%
Long-term Debt 2,564,629 51.3% 2,501,650 53.4%
Total Debt $2,573,245 51.5% $2,507,875 53.5%

Common shareholder’s equity $2,421,671 48.5% $2,176,988 46.5%
Total Capitalization (including
current maturities of long-term
debt) $4,994,916 100% $4,684,863 100%

Sierra Pacific Power
Three Months Ended
March 31,
2008 2007
Operating revenues $335,872 $337,999
Other operating expenses $33,505 $32,848
Maintenance $6,472 $6,281
Depreciation and amortization $21,440 $20,472
Income taxes $9,659 $8,360
Taxes other than income $5,528 $5,186

Operating Income $33,969 $33,911

Other income (expense):
Allowance for other funds
used during construction $5,099 $3,469
Income taxes $(3,574) $(1,211)

Interest Charges $16,587 $14,783

Net Income $24,284 $21,968

Capital Structure
March 31, 2008 March 31, 2007
Current maturities of
long-term debt $101,552 4.6% $2,400 0.2%
Long-term debt 1,083,870 48.8% 1,095,180 54.6%
Total Debt $1,185,422 53.3% $1,097,580 54.8%

Common shareholder’s equity $1,037,364 46.7% $906,987 45.2%
Total Capitalization (including
current maturities of long-term
debt) $2,222,786 100% $2,004,567 100%

Gross margin is presented by Nevada Power Company and Sierra Pacific Power Company in order to provide information by segment that management believes aids the reader in determining how profitable the electric and gas business is at the most fundamental level. Gross margin, which is a “non-GAAP financial measure” as defined in accordance with SEC rules, provides a measure of income available to support the other operating expenses of the business and is utilized by management in its analysis of its business.
Nevada Power Company and Sierra Pacific Power Company believe presenting gross margin allows the reader to assess the impact of regulatory treatment and their overall regulatory environment on a consistent basis. Gross margin, as a percentage of revenue, is primarily impacted by the fluctuations in regulated electric and natural gas supply costs versus the fixed rates collected from customers. While these fluctuating costs impact gross margin as a percentage of revenue, they only impact gross margin amounts if the costs cannot be passed through to customers. Gross margin, which Nevada Power Company and Sierra Pacific Power Company calculate as operating revenues less fuel and purchased power costs, provides a measure of income available to support the other operating expenses. Gross margin changes based on such factors as general base rate adjustments (which are required to be filed by statute every three years) and reflect Nevada Power Company and Sierra Pacific Power Company’s strategy to increase internal power generation versus purchased power, which generates no gross margin. Reconciliations between GAAP operating revenues and gross margin are provided in tables herein. These non-GAAP measures should not be considered as substitutes for the GAAP measures.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Gross Margin
(Dollars in Thousands)
(Unaudited)
Nevada Power Company
Three Months Ended
March 31,
2008 2007
Operating Revenues:
Electric $469,172 $418,165

Energy Costs:
Purchased Power 93,750 95,594
Fuel for power generation 164,021 164,085
Deferred energy costs-net 45,775 26,932
$303,546 $286,611

Gross Margin $165,626 $131,554

Sierra Pacific Power Company
Three Months Ended
March 31,
2008 2007
Operating Revenues:
Electric $250,278 $252,879
Gas 85,594 85,120
$335,872 $337,999
Energy Costs:
Purchased Power $90,106 $83,310
Fuel for power generation 57,587 64,069
Gas purchased for resale 66,896 71,646
Deferral of energy costs-electric-net 8,507 13,861
Deferral of energy costs-gas-net 2,203 (1,945)
$225,299 $230,941

Energy Costs by Segment:
Electric $156,200 $161,240
Gas 69,099 69,701
$225,299 $230,941

Gross Margin by Segment:
Electric $94,078 $91,639
Gas 16,495 15,419
$110,573 $107,058

Sierra Pacific Resources

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HOUSTON, April 22 /PRNewswire/ — Baker Hughes Incorporated (NYSE: BHI; EBS) today announced that net income for the first quarter 2008 was $395.0 million or $1.27 per diluted share compared to $374.7 million or $1.17 per diluted share for the first quarter 2007 and $400.5 million or $1.26 per diluted share for the fourth quarter 2007. Net income for the first quarter 2008 includes a pre-tax gain of $28.2 million (approximately $18.4 million after-tax or $0.06 per diluted share) from the sale of the Completion and Production segment’s Surface Safety Systems (”SSS”) product line.
Revenue for the first quarter 2008 was $2,670.4 million up 8% compared to $2,472.8 million for the first quarter 2007 and down 3% compared to $2,740.3 million for the fourth quarter 2007. North America revenue for the first quarter 2008 was up 8% compared to the first quarter 2007 and up 4% compared to the fourth quarter 2007. Outside of North America revenue for the first quarter 2008 was up 8% compared to the first quarter 2007 and down 7% compared to the fourth quarter 2007.
Chad C. Deaton, Baker Hughes chairman, president, and chief executive officer said, “Results from North America were better than expected. Improving fundamentals for natural gas reflected in lower storage levels, higher natural gas prices, increased oil-directed drilling, and announcements by E&P operators of spending increases support higher drilling activity and additional opportunities for Baker Hughes in North America in the second half of 2008.
“Outside North America our results reflected the expected seasonal declines in export shipments at Baker Oil Tools and Centrilift and typical weather driven seasonality in the North Sea and Russia. We continue to expect revenue outside of North America to increase in a percentage range from the low to mid-teens in 2008 compared to 2007.
“Sequentially, we maintained the operating margin in our Drilling and Evaluation segment while the Completion and Production segment operating margin declined as expected due to seasonal factors.
“We continue to execute our long-term strategy focusing on investment in infrastructure, people and technology. This quarter we opened several new facilities, including our Center for Technology Innovation in Houston and our Middle East Asia Pacific Region Headquarters and Training Center in Dubai, as well as new operations centers in Brazil, Malaysia, Ecuador, Texas and California.
“As we have said, our strategy also includes building our reservoir capabilities. Therefore, I am pleased that we have acquired two premier reservoir technology and consulting firms — Gaffney, Cline and Associates and GeoMechanics International — to enhance our ability to work with customers beyond the wellbore. This positions Baker Hughes to combine reservoir technology and consulting with our existing technologies and services for drilling, formation evaluation, completion and production. It will also enhance our competitive position with respect to integrated projects.”
During the first quarter of 2008, debt increased $461.6 million to $1,546.4 million, and cash and short-term investments decreased $24.0 million to $1,030.4 million compared to the fourth quarter of 2007. In the first quarter 2008, the company’s capital expenditures were $226.6 million, depreciation and amortization expense was $146.8 million and dividend payments were $40.6 million.
During the first quarter of 2008, the company repurchased 8.2 million shares of common stock at an average price of $68.97 per share for a total of $567.8 million. At the end of the first quarter of 2008, the company had authorization remaining to repurchase approximately $256.2 million in common stock.
Financial Information
Consolidated Statements of Operations

(In millions, except per share Three Months Ended
amounts) ————————————
March 31, December 31,
——————– —————
UNAUDITED 2008 2007 2007
——————– —————
Revenues:
Sales $1,253.3 $1,200.9 $1,351.3
Services and rentals 1,417.1 1,271.9 1,389.0
———- ——— ————
Total revenues 2,670.4 2,472.8 2,740.3
———- ——— ————
Costs and Expenses:
Cost of sales(1) 865.4 819.7 917.3
Cost of services and rentals(1) 904.0 780.4 890.8
Research and engineering 102.3 91.6 93.5
Marketing, general and
administrative(1) 250.5 220.9 240.8
———- ——— ————
Total costs and expenses 2,122.2 1,912.6 2,142.4
———- ——— ————
Operating income 548.2 560.2 597.9
Equity in income of affiliates 0.5 0.2 0.8
Gain on sale of product line 28.2 - -
Interest expense (15.7) (16.8) (16.4)
Interest and dividend income 8.0 11.5 11.1
———- ——— ————
Income before income taxes 569.2 555.1 593.4
Income taxes (174.2) (180.4) (192.9)
———- ——— ————
Net income $395.0 $374.7 $400.5
========== ========= ============
Basic earnings per share $1.28 $1.17 $1.27

Diluted earnings per share $1.27 $1.17 $1.26

Weighted average shares outstanding,
basic 309.7 319.1 316.3
Weighted average shares outstanding,
diluted 311.2 321.0 318.3

Depreciation and amortization expense $146.8 $119.8 $140.9

Capital expenditures $226.6 $262.0 $315.9

(1) Effective in the fourth quarter of 2007 the company began classifying
certain expenses as cost of sales or cost of services and rentals
that were previously classified in Selling, General and
Administrative (now Marketing, General and Administrative). The
reclassified expenses generally relate to sales and field service
costs which are closely related to operating activities. The impact
of these reclassifications is to decrease Marketing, General and
Administrative expense by $116.4 million and add $86.3 million to
cost of sales and $30.1 million to cost of services and rentals in
the first quarter 2007 and to decrease Marketing, General and
Administrative expense by $131.4 million and add $96.1 million to
cost of sales and $35.3 million to cost of services and rentals in
the fourth quarter 2007. Information on historic periods not
referenced in this news release for 2005 through 2007 by quarter can
be found on our website at in the
“Financial Information” section.

Calculation of EBIT and EBITDA (non-GAAP measures)(1)

Three Months Ended
———————————–
UNAUDITED March 31, December 31,
——————– ————–
(In millions) 2008 2007 2007
——————– ————–
Income before income taxes $569.2 $555.1 $593.4
Gain on sale of product line(2) (28.2) - -
Interest expense 15.7 16.8 16.4
———- ——— ————–
Earnings before interest expense and
taxes (EBIT) 556.7 571.9 609.8
Depreciation and amortization expense 146.8 119.8 140.9
———- ——— ————–
Earnings before interest expense,
taxes, depreciation and
amortization (EBITDA) $703.5 $691.7 $750.7
========== ========= ==============

(1) EBIT and EBITDA (as defined in the calculations above) are non-GAAP
measurements. Management uses EBIT and EBITDA because it believes
that such measurements are widely accepted financial indicators used
by investors and analysts to analyze and compare companies on the
basis of operating performance and that these measurements may be
used by investors to make informed investment decisions.

(2) Gain of $28.2 million (approximately $18.4 million after tax or
$0.06 per diluted share) on the sale of the Completion and
Production segment’s Surface Safety Systems (”SSS”) product line.

Consolidated Balance Sheets

UNAUDITED AUDITED
(In millions) March 31, 2008 December 31, 2007
==========================================================================
ASSETS
Current Assets:
Cash and cash equivalents $1,030.4 $1,054.4
Accounts receivable, net 2,424.0 2,382.9
Inventories 1,851.9 1,714.4
Deferred income taxes 181.5 181.5
Other current assets 135.5 122.4
————————————————————————–
Total current assets 5,623.3 5,455.6
————————————————————————–
Property, plant and equipment 2,406.9 2,344.6
Goodwill 1,352.3 1,354.2
Intangible assets, net 172.1 176.6
Other assets 522.7 525.6
————————————————————————–
Total assets $10,077.3 $9,856.6
==========================================================================

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable $688.7 $704.2
Short-term borrowings and current
portion of long-term debt 506.7 15.4
Accrued employee compensation 383.5 456.8
Income taxes payable 225.7 190.9
Other accrued liabilities 212.3 250.6
————————————————————————–
Total current liabilities 2,016.9 1,617.9
————————————————————————–

Long-term debt 1,039.7 1,069.4
Deferred income taxes and other tax
liabilities 433.7 415.6
Liabilities for pensions and other
postretirement benefits 329.5 332.1
Other liabilities 94.0 116.0

Stockholders’ Equity:
Common stock 308.0 315.4
Capital in excess of par value 704.0 1,216.1
Retained earnings 5,172.8 4,818.3
Accumulated other comprehensive loss (21.3) (44.2)
————————————————————————–
Total stockholders’ equity 6,163.5 6,305.6
————————————————————————–
Total liabilities and stockholders’
equity $10,077.3 $9,856.6
==========================================================================

Segment Highlights

We report our results under two segments, Drilling and Evaluation and Completion and Production. Operational highlights for the three months ended March 31, 2008, March 31, 2007, and December 31, 2007, are detailed below. All results are unaudited and shown in millions.
Comparison of Quarters — Year over Year
(For the Three Months Ended March 31, 2008 and 2007)
————————————————————————–
Revenue Profit Before Tax
Q1 2008 Q1 2007 Q1 2008 Q1 2007
————————————————————————–
Drilling and
Evaluation $1,390.9 $1,288.5 $349.5 $365.1
Completion and
Production 1,279.5 1,184.2 263.1 245.0
————————————————————————–
Oilfield
Operations 2,670.4 2,472.7 612.6 610.1
————————————————————————–
Gain on sale of
product line(1) - - 28.2 -
Interest expense - - (15.7) (16.8)
Interest and
dividend income - - 8.0 11.5
Corporate and other(2) - 0.1 (63.9) (49.7)
————————————————————————–
Total $2,670.4 $2,472.8 $569.2 $555.1
==========================================================================

Comparison of Quarters — Sequential
(For the Three Months Ended March 31, 2008 and December 31, 2007)
————————————————————————–
Revenue Profit Before Tax
Q1 2008 Q4 2007 Q1 2008 Q4 2007
————————————————————————–
Drilling and
Evaluation $1,390.9 $1,370.0 $349.5 $347.4
Completion and
Production 1,279.5 1,370.3 263.1 314.8
————————————————————————–
Oilfield Operations 2,670.4 2,740.3 612.6 662.2
————————————————————————–
Gain on sale of
product line(1) - - 28.2 -
Interest expense - - (15.7) (16.4)
Interest and
dividend income - - 8.0 11.1
Corporate and other(2) - - (63.9) (63.5)
————————————————————————–
Total $2,670.4 $2,740.3 $569.2 $593.4
==========================================================================

(1) Profit before tax includes a gain of $28.2 million (approximately
$18.4 million after tax or $0.06 per diluted share) for the gain on
the sale of the Completion and Production segment’s Surface Safety
Systems (”SSS”) product line in February 2008. The non-GAAP measure
“Operating profit before tax” discussed below excludes this gain as
does the non-GAAP measure “pre-tax operating margin” (operating
profit before tax / revenue). The company believes that excluding the
gain from the sale of a product line in these calculations is useful
to investors because it is a consistent measure of the underlying
results of the company’s business. Furthermore, management uses
operating profit internally as a measure of the performance of the
company’s operations.

(2) Effective in the fourth quarter of 2007 the company began allocating
certain expenses previously reported in Corporate and Other, to the
Drilling and Evaluation and Completion and Production segments. These
expenses consist of administrative operations support costs and
totaled approximately $2.9 million and $4.8 million in the first and
fourth quarters of 2007, respectively. Information on historic
periods not referenced in this news release for 2005 through 2007 by
quarter can be found on our website at
in the “Financial Information”
section.

Comparison of Revenue
(For the Three Months Ended March 31, 2008 Compared to the
Three Months Ended March 31, 2007 and December 31, 2007)
UNAUDITED

March 31, 2007 December 31, 2007
————————————————————————–
Baker Atlas 10% 5%
Baker Hughes Drilling Fluids 8% (1)%
Hughes Christensen 13% 2%
INTEQ 5% 0%
————————————————————————–
Drilling & Evaluation Segment 8% 2%

Baker Oil Tools 0% (10)%
Baker Petrolite 18% 4%
Centrilift 17% (12)%
————————————————————————–
Completion & Production Segment(1) 8% (7)%

Oilfield Operations(1) 8% (3)%
————————————————————————–

(1) Includes the ProductionQuest business unit.

Oilfield Operations

Oilfield Operations revenue was up 8% in the first quarter 2008 compared to the first quarter 2007, and down 3% sequentially compared to the fourth quarter 2007. Operating profit before tax was flat compared to the first quarter of 2007 and down 7% sequentially compared to the fourth quarter of 2007. The pre-tax operating margin in the first quarter 2008 was 23% compared to 25% in the first quarter 2007 and 24% in the fourth quarter 2007.
Drilling and Evaluation
Drilling and Evaluation revenue was up 8% in the first quarter 2008 compared to the first quarter 2007, and up 2% sequentially compared to the fourth quarter of 2007. Operating profit before tax in the first quarter 2008 was down 4% compared to the first quarter of 2007 and up 1% compared to the fourth quarter 2007. The pre-tax operating margin in the first quarter 2008 was 25% compared to 28% in the first quarter 2007 and 25% in the fourth quarter 2007.
Completion and Production
Completion and Production revenue was up 8% in the first quarter 2008 compared to the first quarter 2007 and down 7% sequentially compared to the fourth quarter 2007 from the expected decline in export sales in the first quarter 2008. Operating profit before tax in the first quarter 2008 was up 7% compared to the first quarter 2007 and down 16% compared to the fourth quarter 2007. The pre-tax operating margin in the first quarter 2008 and 2007 was 21% compared to 23% in the fourth quarter 2007.
Revenue by Geography

Revenue by Geography
(For the Three Months Ended March 31, 2008 Compared to the
Three Months Ended March 31, 2007 and December 31, 2007)
UNAUDITED

North Latin Europe, Middle Oilfield
Three Months America(1) America(2) Africa, East, Asia Operations
Ended Russia, Pacific(4)
Caspian(3)
————————————————————————–
March 31, 2008 $1,162.3 $254.1 $756.8 $497.2 $2,670.4
March 31, 2007 1,072.7 232.7 703.5 463.8 2,472.7
————————————————————————–
$ Increase $89.6 $21.4 $53.3 $33.4 $197.7
% Increase 8% 9% 8% 7% 8%
————————————————————————–

North Latin Europe, Middle Oilfield
Three Months America(1) America(2) Africa, East, Asia Operations
Ended Russia, Pacific(4)
Caspian(3)
————————————————————————–
March 31, 2008 $1,162.3 $254.1 $756.8 $497.2 $2,670.4
December 31, 2007 1,115.5 257.7 804.1 563.0 2,740.3
————————————————————————–
$ Increase
(decrease) $46.8 $(3.6) $(47.3) $(65.8) $(69.9)
% Increase
(decrease) 4% (1)% (6)% (12)% (3)%
————————————————————————–

(1) United States and Canada.
(2) Mexico, Central America and South America.
(3) Europe, Africa, Russia and the Caspian area, excluding Egypt.
(4) Middle East and Asia Pacific, including Egypt.

North America

North America revenue increased 8% in the first quarter 2008 compared to the first quarter 2007 and increased 4% compared to the fourth quarter 2007. In North America, comparing the first quarter 2008 to the first quarter 2007, revenue from our U.S. land operations increased 16% compared to a rig count which increased 4%; U.S. offshore revenue decreased 10% compared to a rig count which decreased 30%; and Canada revenue increased 4% compared to a 1% decrease in the rig count.
Latin America
Latin America revenue increased 9% in the first quarter of 2008 compared to the first quarter of 2007 and compared to a 5% increase in the rig count. Drilling and Evaluation revenue from Brazil increased significantly compared to both the first quarter 2007 and fourth quarter 2007. Revenue decreased 1% compared to the fourth quarter 2007 reflecting the expected seasonal decline in Completion and Production export sales.
Europe Africa Russia Caspian
Europe, Africa, Russia, and Caspian revenue increased 8% in the first quarter 2008 compared to the first quarter 2007, and decreased 6% sequentially compared to the fourth quarter 2007. Russia and Caspian area revenue was up over 55% in the first quarter 2008 compared to first quarter 2007 and down 17% compared to the fourth quarter 2007 reflecting expected seasonal activity trends in the area. Europe revenue was up 3% in the first quarter 2008 compared to the first quarter 2007 and compared to a decrease of 16% in the North Sea rig count; and down 4% compared to the fourth quarter 2007 and compared to a decrease of 5% in the North Sea rig count. The sequential decline reflected weather-driven reductions in activity in the North Sea. Africa revenue was down 8% in the first quarter 2008 compared to the first quarter 2007 and compared to a 1% decrease in the rig count and up 1% compared to the fourth quarter 2007 and compared to a 8% decrease in the rig count. The change in revenue from a year ago reflects a change in the product/service mix on a significant West African project.
Middle East Asia Pacific
Middle East, Asia Pacific revenue increased 7% in the first quarter 2008 compared to the first quarter 2007 and decreased 12% sequentially compared to the fourth quarter 2007. Middle East revenue was up 6% in the first quarter 2008 compared to the first quarter 2007 and compared to a 5% increase in the rig count. Revenue was down 16% in the first quarter 2008 compared to the fourth quarter 2007 reflecting expected seasonal decline in export sales primarily at Baker Oil Tools. Asia Pacific revenue was up 9% in the first quarter 2008 compared to the first quarter 2007 and compared to a 7% increase in the rig count; and down 7% compared to the fourth quarter 2007 and compared to an unchanged rig count.
Outlook
The following statements are based on current expectations. These statements are forward-looking, and actual results may differ materially. Factors affecting these forward-looking statements are detailed below under the section titled “Forward-Looking Statements” in this news release. These statements do not include the potential impact of any stock repurchases, acquisition, disposition, merger, joint venture or other transaction or event that could occur in the future.
— Outside of North America, revenue for the year 2008 is expected to
increase in a percentage range from the low to mid-teens compared to
the year 2007.
— Corporate and other expenses, excluding interest expense and interest
and dividend income are expected to be approximately $245 million.
— Capital expenditures are expected to be approximately $1.3 billion for
the year 2008.
— Depreciation and amortization expense is now expected to be between
$640 million and $650 million for the year 2008.
— The tax rate on operating results for second, third and fourth
quarters of 2008 is expected to be between 32% and 33%. The tax rate
on operating results for the full year 2008 is now expected to be
between 31.5% and 32.5%.

Conference Call

The company has scheduled a conference call to discuss the results of today’s earnings announcement. The call will begin at 8:30 a.m. Eastern time, 7:30 a.m. Central time, on Tuesday, April 22, 2008. To access the call, which is open to the public, please contact the conference call operator at (800) 374-2469, or (706) 634-7270 for international callers, 20 minutes prior to the scheduled start time, and ask for the “Baker Hughes Conference Call.” A replay will be available through Tuesday, May 6, 2008. The number for the replay is (800) 642-1687, or (706) 645-9291 for international callers, and the access code is 39514631. The call and replay will also be web cast on .
Forward-Looking Statements
This news release (and oral statements made regarding the subjects of this release, including on the conference call announced herein) contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, (each a “Forward-Looking Statement”). The words “anticipate,”"believe,”"ensure,”"expect,”"if,”"intend,”"estimate,”"project,”"forecasts,”"predict,”"outlook,”"aim,”"will,”"could,”"should,”"would,”"may,”"probable,”"likely,” and similar expressions, and the negative thereof, are intended to identify forward-looking statements. There are many risks and uncertainties that could cause actual results to differ materially from our forward-looking statements. These forward-looking-statements are also affected by the risk factors described in the company’s Annual Report on Form 10-K for the year ended December 31, 2007; the company’s subsequent quarterly reports on Form 10-Q; and those set forth from time to time in our other filings with the Securities and Exchange Commission (”SEC”). The documents are available through the company’s website at or through the SEC’s Electronic Data Gathering and Analysis Retrieval System (EDGAR) at . We undertake no obligation to publicly update or revise any forward-looking statement.
Our expectations regarding our business outlook, including changes in revenue, pricing, expenses, capital spending, backlogs, profitability, tax rates, strategies for our operations, oil and natural gas market conditions, market share and contract terms, costs and availability of resources, economic and regulatory conditions, legal and regulatory matters, and environmental matters are only our forecasts regarding these matters.
These forecasts may be substantially different from actual results, which are affected by many risks including the following risk factors and the timing of any of those risk factors:
Oil and gas market conditions — the level of petroleum industry exploration and production expenditures; drilling rig and oil and natural gas industry manpower and equipment availability; the price of, and the demand for, crude oil and natural gas; drilling activity; excess productive capacity; LNG imports; seasonal and other adverse weather conditions that affect the demand for energy; severe weather conditions, such as hurricanes, that affect exploration and production activities; Organization of Petroleum Exporting Countries (”OPEC”) policy and the adherence by OPEC nations to their OPEC production quotas.
Terrorism and geopolitical risks — war, military action, terrorist activities or extended period of international conflict, particularly involving the U.S., Middle East or other major petroleum-producing or consuming regions; labor disruptions, civil unrest or security conditions where we operate; expropriation of assets by governmental action.
Pricing, market share and contract terms — our ability to implement and affect price increases for our products and services; the effect of the level and sources of our profitability on our tax rate; the ability of our competitors to capture market share; our ability to retain or increase our market share; changes in our strategic direction; the integration of newly- acquired businesses; the effect of industry capacity relative to demand for the markets in which we participate; our ability to negotiate acceptable terms and conditions with our customers, especially national oil companies; our ability to manage warranty claims and improve performance and quality; our ability to effectively manage our commercial agents.
Costs and availability of resources — our ability to manage the rising costs and availability of sufficient raw materials and components (especially steel alloys, chromium, copper, carbide, lead, nickel, titanium, beryllium, synthetic and natural diamonds, chemicals, and electronic components); our ability to manage compliance related costs; our ability to recruit, train and retain the skilled and diverse workforce necessary to meet our business needs; manufacturing capacity and subcontracting capacity at forecasted costs to meet our revenue goals; the availability of essential electronic components used in our products; the effect of competition, particularly our ability to introduce new technology on a forecasted schedule and at forecasted costs; potential impairment of long-lived assets; the accuracy of our estimates regarding our capital spending requirements; unanticipated changes in the levels of our capital expenditures; the need to replace any unanticipated losses in capital assets; the development of technology by us or our competitors that lowers overall finding and development costs; labor-related actions, including strikes, slowdowns and facility occupations.
Litigation and changes in laws or regulatory conditions — the outcome of pending litigation as well as the potential for unexpected litigation or proceedings; the legislative, regulatory and business environment in the U.S. and other countries in which we operate; costs and changes in processes and operations related to or resulting from the activities of the compliance monitor appointed to assess our Foreign Corrupt Practices Act policies and procedures in connection with previously reported settlements with the SEC and Department of Justice (”DOJ”) as well as compliance with the terms of the settlements; outcome of government and legal proceedings as well as costs arising from compliance and ongoing or additional investigations in any of the countries where the company does business; new laws, regulations and policies that could have a significant impact on the future operations and conduct of all businesses; changes in export control laws or exchange control laws; restrictions on doing business in countries subject to sanctions; customs clearance procedures; changes in laws in countries identified by management for immediate focus; changes in accounting standards; changes in tax laws or tax rates in the jurisdictions in which we operate; resolution of tax assessments or audits by various tax authorities; additional taxes incurred as a result of any resolution with the SEC and DOJ; ability to fully utilize our tax loss carryforwards and tax credits; our ability to comply with the terms of our deferred prosecution agreement with the SEC and DOJ, including the application of that agreement to newly acquired businesses.
Economic conditions — worldwide economic growth; the effect that high energy prices may have on worldwide economic growth and demand for hydrocarbons; foreign currency exchange fluctuations and changes in the capital markets in locations where we operate; the condition of the capital and equity markets in general and any impact on our ability to borrow to fund short-term cash requirements; our ability to estimate the size of and changes in the worldwide oil and natural gas industry. Changes in the price of our stock may affect the results and timing of our stock repurchase program.
Environmental matters — unexpected, adverse outcomes or material increases in liability with respect to environmental remediation sites where we have been named as a potentially responsible party; the discovery of new environmental remediation sites; changes in environmental regulations; the discharge of hazardous materials or hydrocarbons into the environment.
Baker Hughes provides reservoir consulting, drilling, formation evaluation,
completion and production products and services to the worldwide oil and gas
industry.

Contact:
Gary R. Flaharty (713) 439-8039
H. Gene Shiels (713) 439-8822

Baker Hughes Incorporated

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HOUSTON, April 29 /PRNewswire-FirstCall/ — Oil States International, Inc. today reported net income for the quarter ended March 31, 2008 of $66.5 million, or $1.31 per diluted share, compared to $52.5 million, or $1.05 per diluted share, reported in the first quarter of 2007. Oil States recognized year-over-year growth in revenues and EBITDA (defined as net income plus interest, taxes, depreciation and amortization) of 25% and 28%, respectively, in the first quarter of 2008.(A)
Significant year-over-year improvements in our oil sands accommodations business, increased profitability in our Offshore Products segment and contributions from two rental tool acquisitions completed during the third quarter of 2007 along with increased activity in Tubular Services led to revenue and EBITDA growth in the first quarter of 2008. During the quarter, the Company generated $601.2 million of revenues and $125.8 million of EBITDA compared to $480.5 million and $98.0 million, respectively, in the first quarter of 2007. Consolidated operating income in the first quarter of 2008 was $101.3 million compared to $82.9 million for the corresponding quarter of 2007.
The Company recognized an effective tax rate of 32.7% in the first quarter of 2008 compared to 34.1% in the first quarter of 2007. The lower effective tax rate in the first quarter of 2008 was primarily due to lower tax rates applicable to foreign income. The Company spent $60.8 million in capital expenditures during the first quarter of 2008 primarily related to expansions to our rental tool operations and on-going construction of the recently announced Conklin Lodge as well as continued expansion at Wapasu Lodge, both of which serve customers in the oil sands region of Canada.
BUSINESS SEGMENT RESULTS
(Unless otherwise noted, the following discussion compares the quarterly results from the first quarter of 2008 to the results from the first quarter of 2007.)
Well Site Services
For the first quarter of 2008, Well Site Services generated revenues of $265.6 million and EBITDA of $97.6 million, compared to $178.1 million and $74.0 million, respectively, in the first quarter of 2007, representing year-over-year increases of 49% and 32%, respectively. The increase in EBITDA was primarily due to improved results from the oil sands accommodations and contributions from the two rental tool acquisitions closed in the third quarter of 2007, partially offset by lower margins from the Company’s drilling and rental tools operations.
The accommodations business reported revenues of $146.3 million and EBITDA of $60.9 million, for the first quarter of 2008, compared to revenues and EBITDA of $93.6 million and $39.1 million, respectively, in the first quarter of 2007. Accommodations revenue and EBITDA each increased 56%, primarily due to contributions from additional room capacity at our major oil sands lodges, which was up over 70% from ending first quarter 2007 capacity levels. Drilling services generated revenues and EBITDA of $36.8 million and $11.2 million in the first quarter of 2008, respectively, compared to $30.9 million of revenues and EBITDA of $12.7 million in the first quarter 2007. The year-over-year improvement in revenue was due to higher pricing and drilling rig additions made in 2007, but was offset by lower utilization in the Rockies caused by seasonal weather issues and by higher operating costs. Rental tools generated $82.5 million of revenues and $25.5 million of EBITDA in the first quarter of 2008 compared to revenue of $53.6 million and EBITDA of $22.2 million in the first quarter of 2007. This year-over-year growth was primarily due to two acquisitions completed in the third quarter of 2007, partially offset by softness in a few regional markets, isolated project delays and start-up costs in Mexico.
Offshore Products
The Offshore Products segment reported revenue and EBITDA of $126.9 million and $24.1 million, respectively, in the first quarter of 2008, compared to $119.0 million of revenues and $20.4 million in EBITDA in the first quarter of 2007. Offshore Products’ revenues were up 7% and EBITDA was up 18% year-over-year primarily due to the mix of higher margin bearing and connector products and improved margins on drilling equipment deliveries. Backlog totaled $383.5 million at March 31, 2008 which represented a 6% increase from the $362.2 million reported as of December 31, 2007.
Tubular Services
Tubular Services generated revenues of $208.8 million and EBITDA of $10.1 million during the first quarter of 2008 compared to revenues of $183.4 million and EBITDA of $8.4 million in the first quarter of 2007. Tubular Services’ revenues increased 14% year-over-year while OCTG shipments increased 24% to 127,100 tons in the first quarter of 2008 up from 102,600 tons shipped in the first quarter of 2007. Partially offsetting the volume increase was lower realized revenues per ton which decreased 8% year-over-year. However, during the quarter, OCTG manufacturers announced several price increases which take effect during the second quarter of 2008. Gross margins in the first quarter of 2008 were flat year-over-year at approximately 6%. The Company’s OCTG inventory level at March 31, 2008 was $190.4 million which was essentially flat with the December 31, 2007 level of $191.4 million, but down significantly from the March 31, 2007 level of $251.4 million.
“Our lodges and mobile camp equipment working in the oil sands region of Canada were significant drivers of our growth in the first quarter of 2008,” stated Cindy B. Taylor, Oil States’ President and Chief Executive Officer. “We are realizing the benefits of our capital expenditures made in our accommodations business as is reflected in our record results for the quarter. Additionally, margins improved in our Offshore Products segment which supports global deepwater infrastructure development. With the current tightness in OCTG supply coupled with recently announced mill price increases and surcharges, we expect our Tubular Services segment to generate stronger margins and profits in the second quarter of 2008. Our current expectation for second quarter 2008 earnings is in a range of $0.90 to $0.97 per diluted share considering the normal seasonal declines in activity in our Canadian based operations.”
Oil States International, Inc. is a diversified oilfield services company. With locations around the world, Oil States is a leading manufacturer of products for deepwater production facilities and subsea pipelines, and a leading supplier of a broad range of services to the oil and gas industry, including production-related rental tools, work force accommodations and logistics, oil country tubular goods distribution and land drilling services. Oil States is organized in three business segments — Offshore Products, Tubular Services and Well Site Services, and is publicly traded on the New York Stock Exchange under the symbol OIS.
For more information on the Company, please visit Oil States International’s website at .
The foregoing contains forward-looking statements within the meaning of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are those that do not state historical facts and are, therefore, inherently subject to risks and uncertainties. The forward-looking statements included herein are based on current expectations and entail various risks and uncertainties that could cause actual results to differ materially from those forward-looking statements. Such risks and uncertainties include, among other things, risks associated with the general nature of the oilfield service industry and other factors discussed within the “Business” section of the Form 10-K for the year ended December 31, 2007 filed by Oil States with the SEC on February 22, 2008.
Oil States International, Inc.
Unaudited Condensed Consolidated Statements of Income
(in thousands, except per share amounts)
(unaudited)

Three Months Ended March 31,
2008 2007

Revenues $601,247 $480,516
Costs and expenses:
Cost of sales 445,085 355,803
Selling, general and administrative expenses 32,107 27,324
Depreciation and amortization expense 22,728 14,419
Other operating expense / (income) (11) 79
Operating income 101,338 82,891

Interest expense (5,227) (4,842)
Interest income 922 926
Equity in earnings of unconsolidated affiliates 1,495 542
Other income 220 114
Income before income taxes 98,748 79,631
Income tax provision (32,281) (27,170)
Net income $66,467 $52,461

Net income per share
Basic $1.34 $1.06
Diluted $1.31 $1.05

Weighted average number of common
shares outstanding
Basic 49,422 49,268
Diluted 50,900 49,994

Oil States International, Inc.
Consolidated Balance Sheets
(in thousands)

Mar. 31, 2008 Dec. 31, 2007
Assets (unaudited) (audited)
Current assets
Cash and cash equivalents $31,235 $30,592
Accounts receivable, net 463,538 450,153
Inventories, net 357,352 349,347
Prepaid expenses and other current assets 24,284 35,575
Total current assets 876,409 865,667
Property, plant and equipment, net 640,499 586,910
Goodwill, net 401,950 391,644
Investments in unconsolidated affiliates 26,163 24,778
Other noncurrent assets 59,557 60,627

Total assets $2,004,578 $1,929,626

Liabilities and stockholders’ equity
Current liabilities
Current portion of long-term debt $179,975 $4,718
Accounts payable and accrued liabilities 232,213 239,119
Income taxes 9,472 43
Deferred revenue 54,697 60,910
Other current liabilities 1,082 121
Total current liabilities 477,439 304,911
Long-term debt (B) 326,456 487,102
Deferred income taxes 44,473 40,550
Other liabilities 12,191 12,236
Total liabilities 860,559 844,799

Stockholders’ equity
Common stock 523 522
Additional paid-in capital 407,590 402,091
Retained earnings 757,180 690,713
Accumulated other comprehensive income 60,540 73,036
Treasury stock (81,814) (81,535)
Total stockholders’ equity 1,144,019 1,084,827

Total liabilities and stockholders’ equity $2,004,578 $1,929,626

Oil States International, Inc.
Segment Data
(in thousands)
(unaudited)

Three Months Ended March 31,
2008 2007
Revenues
Accommodations $146,258 $93,553
Rental Tools 82,492 53,639
Drilling and Other 36,804 30,918

Well Site Services 265,554 178,110
Offshore Products 126,922 119,039
Tubular Services 208,771 183,367
Total Revenues $601,247 $480,516

EBITDA (A)
Accommodations $60,906 $39,077
Rental Tools 25,466 22,222
Drilling and Other 11,220 12,750

Well Site Services 97,592 74,049
Offshore Products 24,129 20,436
Tubular Services 10,124 8,353
Corporate / Other (6,064) (4,872)
Total EBITDA $125,781 $97,966

Operating Income / (Loss)
Accommodations $52,808 $34,992
Rental Tools 17,631 17,482
Drilling and Other 6,053 9,994

Well Site Services 76,492 62,468
Offshore Products 21,446 17,608
Tubular Services 9,521 7,734
Corporate / Other (6,121) (4,919)
Total Operating Income $101,338 $82,891

Oil States International, Inc.
Additional Quarterly Segment and Operating Data
(unaudited)

Three Months Ended March 31,
2008 2007

Supplemental Operating Data
Land Drilling Operating Statistics
Average Rigs Available 35 32
Utilization 74.5% 72.4%
Implied Day Rate ($ in thousands per day) $15.5 $14.8
Implied Daily Cash Margin ($ in
thousands per day) $4.5 $6.5

Offshore Products Backlog ($ in millions) $383.5 $373.4

Tubular Services Operating Data
Shipments (Tons in thousands) 127.1 102.6
Quarter end Inventory ($ in thousands) $190,366 $251,449

(A) The term EBITDA consists of net income plus interest, taxes,
depreciation and amortization. EBITDA is not a measure of financial
performance under generally accepted accounting principles. You
should not consider it in isolation from or as a substitute for net
income or cash flow measures prepared in accordance with generally
accepted accounting principles or as a measure of profitability or
liquidity. Additionally, EBITDA may not be comparable to other
similarly titled measures of other companies. The Company has
included EBITDA as a supplemental disclosure because its management
believes that EBITDA provides useful information regarding our
ability to service debt and to fund capital expenditures and provides
investors a helpful measure for comparing its operating performance
with the performance of other companies that have different financing
and capital structures or tax rates. The Company uses EBITDA to
compare and to monitor the performance of its business segments to
other comparable public companies and as a benchmark for the award of
incentive compensation under its annual incentive compensation plan.
The following table sets forth a reconciliation of EBITDA to net
income, which is the most directly comparable measure of financial
performance calculated under generally accepted accounting
principles:

Oil States International, Inc.
Reconciliation of GAAP to Non-GAAP Financial Information
(in thousands)
(unaudited)

Three Months Ended March 31,
2008 2007

Net income $66,467 $52,461
Income tax expense 32,281 27,170
Depreciation and amortization 22,728 14,419
Interest income (922) (926)
Interest expense 5,227 4,842
EBITDA $125,781 $97,966

(B) As of March 31, 2008, the Company had approximately $177.2 million
available under its revolving credit facility.

Oil States International, Inc.

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TULSA, Okla., April 30 /PRNewswire-FirstCall/ — ONEOK, Inc. today announced first-quarter 2008 net income of $143.8 million, or $1.36 per diluted share, compared with $152.9 million, or $1.36 per diluted share, in the same period last year.
“All three business segments turned in solid performances this quarter,” said John W. Gibson, ONEOK chief executive officer. “ONEOK Partners had an exceptionally strong quarter, driven by increased volumes, higher commodity prices and wider commodity spreads. Colder weather and increased volumes in our Oklahoma and Kansas service territories benefited our distribution segment. Our energy services segment also performed well in the first quarter, although results are down compared with last year, primarily as a result of lower marketing and storage margins.
“We also increased our ownership of ONEOK Partners to 47.7 percent, providing ONEOK with a larger share of the partnership’s current earnings and positioning us for additional future earnings through the $1.6 billion in internally generated growth projects currently under way at the partnership,” Gibson added.
ONEOK also reaffirmed its 2008 net income guidance, announced on Jan. 8, 2008, in the range of $2.75 to $3.15 per diluted share.
Operating income for the first quarter 2008 was $333.1 million, compared with $328.3 million for the first quarter 2007. The earnings increase is primarily due to higher realized commodity prices and wider NGL product price spreads in the ONEOK Partners segment, as well as higher volumes. This increase was offset by reduced marketing and storage margins in the energy services segment, driven primarily by colder than anticipated weather.
Operating costs were $193.3 million in the first quarter 2008, compared with $182.3 million in the first quarter 2007, primarily as a result of incremental operating expenses associated with ONEOK Partners’ North System, an interstate natural gas liquids and refined petroleum products pipeline system that was acquired in October 2007, as well as costs incurred to comply with regulations and higher employee-related costs.
Equity earnings from investments increased $3.7 million to $27.8 million in the first quarter 2008, compared with the same period in 2007, primarily as a result of higher throughput on Northern Border Pipeline, in which ONEOK Partners has a 50 percent ownership interest.
FIRST-QUARTER 2008 SUMMARY INCLUDES:

— Operating income of $333.1 million, compared with $328.3 million in the
first quarter last year;
— ONEOK Partners segment operating income of $150.5 million, compared
with $104.4 million in the first quarter 2007;
— Distribution segment operating income of $108.5 million, compared with
$103.2 million in the first quarter 2007;
— Energy Services segment operating income of $74.3 million, compared
with operating income of $120.1 million in the first quarter 2007;
— Operating costs of $193.3 million, compared with $182.3 million in the
first quarter 2007;
— Purchasing an additional 5.4 million of ONEOK Partners’ common units in
March 2008 for a total purchase price of approximately $303.2 million,
and contributing $9.4 million to maintain the 2 percent general partner
interest. ONEOK Partners also completed a public offering of 2.5
million common units at $58.10 per common unit. Following these
transactions and the exercise of the over-allotment option in April,
the company’s ownership in ONEOK Partners increased to 47.7 percent;
— Distributions declared on the company’s general partner interest in
ONEOK Partners of $19.1 million for the first quarter 2008;
distributions declared on the company’s limited partner interest in
ONEOK Partners of $44.1 million for the first quarter 2008;
— ONEOK, on a stand-alone basis, having $265.6 million in short-term debt
at March 31, 2008, $35.9 million of cash and cash equivalents and
$145.6 million of gas in storage;
— ONEOK stand-alone total debt representing 48 percent of total
capitalization, following the retirement of $402.3 million of maturing,
long-term debt in February 2008;
— ONEOK stand-alone cash flow from continuing operations, before changes
in working capital, of $190.7 million, which exceeded capital
expenditures and dividends of $112.0 million by $78.7 million;
— Receiving approval in April 2008 of $1.1 million in new rates in the
distribution segment’s south Texas territory;
— Receiving approval of a capital investment mechanism for the
distribution segment in Oklahoma that allows for recovery of, and a
return on, the capital costs incurred between rate cases to expand and
maintain the natural gas distribution system; and
— Declaring a quarterly dividend of 38 cents, an increase of 19 percent
since January 2007.

FIRST-QUARTER 2008 business UNIT RESULTS

ONEOK Partners

First-quarter 2008 operating income increased 44 percent to $150.5 million, compared with $104.4 million in the same period last year.
The first-quarter 2008 operating income increase is primarily the result of higher commodity prices in the natural gas gathering and processing business and wider regional NGL product price spreads in the natural gas liquids gathering and fractionation business. Also, both the natural gas and natural gas liquids businesses experienced higher volumes than in the previous year, primarily due to new supply connections and the recently acquired North System.
First-quarter 2008 operating costs were $88.1 million, compared with $75.7 million in the first quarter 2007. The increase is primarily due to incremental operating expenses associated with the recently acquired North System, as well as costs incurred to comply with regulations and higher employee-related costs. Depreciation and amortization increased $2.4 million, compared with the same period last year, also primarily due to the North System acquisition.
Equity earnings from investments for the first quarter 2008 increased to $27.8 million, compared with $24.1 million in the same period a year earlier, primarily as a result of higher throughput from ONEOK Partners’ 50 percent interest in Northern Border Pipeline.
Distribution
The distribution segment reported operating income of $108.5 million in the first quarter 2008, compared with operating income of $103.2 million in the first quarter 2007.
First-quarter 2008 earnings increased as a result of colder temperatures and increased volumes in the Oklahoma and Kansas service territories. Transportation volumes were strong in Oklahoma and Kansas and improved margins by $2.5 million. Residential margins were moderated by weather normalization mechanisms and reflect an increase of $1.2 million from the implementation of new rate schedules.
Operating costs decreased to $94.2 million, compared with $95.7 million in the first quarter 2007, primarily as a result of lower employee-related costs.
Energy Services
Energy Services reported first-quarter operating income of $74.3 million, compared with operating income of $120.1 million in the same period in 2007.
The first-quarter 2008 earnings decline is due primarily to a decrease of $47.9 million in marketing and storage margins. Colder than anticipated weather in the first quarter 2008 increased supply requirements of customers, leaving less volume available for the segment’s marketing optimization activities. With lower volumes available, combined with steadily increasing natural gas prices, storage optimization margins were also reduced. In addition, financial trading margins were down $7.8 million, partially offset by an increase of $7.0 million in transportation margins and an increase of $2.2 million in retail marketing activities.
Operating costs for the quarter were $10.2 million, relatively flat compared with the same period a year earlier.
At March 31, 2008, total natural gas in storage was 14.6 Bcf, compared with 37.3 Bcf a year earlier. Total natural gas storage capacity under lease was 96 Bcf in the first quarter of 2008, compared with 88 Bcf in the same period 2007.
The net margin for the energy services segment was derived from the following sources:
Three Months Ended
March 31,
2008 2007
(Thousands of dollars)
Marketing and storage,
gross $137,678 $177,106
Less: Storage and
transportation costs (54,275) (52,713)
Marketing and
storage, net 83,403 124,393
Retail marketing 5,213 2,994
Financial trading (3,751) 4,017
Net margin $84,865 $131,404

EARNINGS CONFERENCE CALL AND WEBCAST

ONEOK and ONEOK Partners management will conduct a joint conference call on Thursday, May 1, 2008, at 11 a.m. Eastern Daylight Time (10 a.m. Central Daylight Time). The call will also be carried live on ONEOK’s and ONEOK Partners’ Web sites.
To participate in the telephone conference call, dial 866-847-7864, pass code 1226646, or log on to or .
If you are unable to participate in the conference call or the webcast, the replay will be available on ONEOK’s Web site, , and ONEOK Partners’ Web site, , for 30 days. A recording will be available by phone for seven days. The playback call may be accessed at 866-837-8032, pass code 1226646.
ONEOK, Inc. is a diversified energy company. We are the general partner and own 47.7 percent of ONEOK Partners, L.P. , one of the largest publicly traded limited partnerships, which is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. and owns one of the nation’s premier natural gas liquids (NGL) systems, connecting much of the natural gas and NGL supply in the Mid-Continent with key market centers. ONEOK is among the largest natural gas distributors in the United States, serving more than 2 million customers in Oklahoma, Kansas and Texas. Our energy services operation focuses primarily on marketing natural gas and related services throughout the U.S. ONEOK is a Fortune 500 company.
For information about ONEOK, Inc., visit the Web site: .
Some of the statements contained and incorporated in this news release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. The forward-looking statements relate to our anticipated financial performance, management’s plans and objectives for our future operations, our business prospects, the outcome of regulatory and legal proceedings, market conditions and other matters. We make these forward- looking statements in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995. The following discussion is intended to identify important factors that could cause future outcomes to differ materially from those set forth in the forward-looking statements.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this news release identified by words such as “anticipate,”"estimate,”"expect,”"project,”"intend,”"plan,”"believe,”"should,”"goal,”"forecast,”"could,”"may,”"continue,”"might,”"potential,”"scheduled” and other words and terms of similar meaning.
You should not place undue reliance on forward-looking statements. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward- looking statements. Those factors may affect our operations, markets, products, services and prices. In addition to any assumptions and other factors referred to specifically in connection with the forward-looking statements, factors that could cause our actual results to differ materially from those contemplated in any forward-looking statement include, among others, the following:
— the effects of weather and other natural phenomena on our operations,
including energy sales and demand for our services and energy prices;
— competition from other United States and Canadian energy suppliers and
transporters as well as alternative forms of energy;
— the capital intensive nature of our businesses;
— the profitability of assets or businesses acquired by us;
— risks of marketing, trading and hedging activities, including the risks
of changes in energy prices or the financial condition of our
counterparties;
— the uncertainty of estimates, including accruals and costs of
environmental remediation;
— the timing and extent of changes in energy commodity prices;
— the effects of changes in governmental policies and regulatory actions,
including changes with respect to income and other taxes, environmental
compliance, and authorized rates or recovery of gas and gas
transportation costs;
— impact on drilling and production by factors beyond our control,
including the demand for natural gas and refinery-grade crude oil;
producers’ desire and ability to obtain necessary permits; reserve
performance; and capacity constraints on the pipelines that transport
crude oil, natural gas and NGLs from producing areas and our
facilities;
— changes in demand for the use of natural gas because of market
conditions caused by concerns about global warming or changes in
governmental policies and regulations due to climate change
initiatives;
— the impact of unforeseen changes in interest rates, equity markets,
inflation rates, economic recession and other external factors over
which we have no control, including the effect on pension expense and
funding resulting from changes in stock and bond market returns;
— actions by rating agencies concerning the credit ratings of ONEOK and
ONEOK Partners;
— the results of administrative proceedings and litigation, regulatory
actions and receipt of expected clearances involving the OCC, KCC,
Texas regulatory authorities or any other local, state or federal
regulatory body, including the FERC;
— our ability to access capital at competitive rates or on terms
acceptable to us;
— risks associated with adequate supply to our gathering, processing,
fractionation and pipeline facilities, including production declines
which outpace new drilling;
— the risk that material weaknesses or significant deficiencies in our
internal controls over financial reporting could emerge or that minor
problems could become significant;
— the impact and outcome of pending and future litigation;
— the ability to market pipeline capacity on favorable terms, including
the affects of:
- future demand for and prices of natural gas and NGLs;
- competitive conditions in the overall energy market;
- availability of supplies of Canadian and United States natural gas;
- availability of additional storage capacity;
- weather conditions; and
- competitive developments by Canadian and U.S. natural gas
transmission peers;
— performance of contractual obligations by our customers, service
providers, contractors and shippers;
— the timely receipt of approval by applicable governmental entities for
construction and operation of our pipeline and other projects and
required regulatory clearances;
— our ability to acquire all necessary rights-of-way permits and consents
in a timely manner, to promptly obtain all necessary materials and
supplies required for construction, and to construct pipelines without
labor or contractor problems;
— the mechanical integrity of facilities operated;
— demand for our services in the proximity of our facilities;
— our ability to control operating costs;
— acts of nature, sabotage, terrorism or other similar acts that cause
damage to our facilities or our suppliers’ or shippers’ facilities;
— economic climate and growth in the geographic areas in which we do
business;
— the risk of a significant slowdown in growth or decline in the U.S.
economy or the risk of delay in growth recovery in the U.S. economy;
— the impact of recently issued and future accounting pronouncements and
other changes in accounting policies;