Exhibit 99-1
Energy East Corporation Announces First Quarter 2006 Financial Results
FOR IMMEDIATE RELEASE
Albany, NY, and Portland, ME, May 4, 2006, Energy East Corporation [NYSE:EAS] today announced the following financial results.
Earnings per share from continuing operations, basic for the quarter ended March 31, 2006, were 91 cents and for the 12 months ended March 31, 2006, were $1.60.
Earnings from continuing operations, basic for the quarter ended March 31, 2006, decreased 14 cents per share compared to $1.05 per share for the quarter ended March 31, 2005. First quarter earnings decreased due to higher operating and maintenance costs, caused largely by storm restoration costs, higher interest costs due in part to higher carrying costs on regulatory liabilities and lower electricity sales due to mild winter weather. Natural gas margins were essentially unchanged from 2005 as the effect of lower delivery volumes was largely offset by weather normalization accruals.
Earnings per share from continuing operations, basic for the 12 months ended March 31, 2006, decreased 25 cents per share compared to $1.85 for the 12 months ended March 31, 2005. The decrease in earnings per share was primarily due to higher operating and maintenance costs including storm-related repairs and maintenance, increases in bad debt expense and increases in transmission costs. In addition, the reduction also reflects the writedown of our South Glens Falls generating facility in the fourth quarter of 2005 and earnings in 2004 from the one-time effects of the sale of the Ginna nuclear power plant and the approval of Rochester Gas and Electric Company's Electric and Natural Gas Rate Agreements. Those decreases were partially offset by higher electric retail deliveries.
Unaudited Consolidated Statements of Income and Energy Delivery Statistics are presented on the following pages.
Energy East is a respected super-regional energy services and delivery company that our customers can depend on every day. We are a motivated and skilled team of professionals dedicated to creating shareholder value through our focus on profitable growth, operational excellence and strong customer partnerships. We serve about 3 million customers throughout upstate New York and New England.
Contact: | Scott Martin |
| Manager, Investor Relations |
| (207) 688-4336 |
Energy East Corporation
Consolidated Statements of Income - (Unaudited)
Three Months | Twelve Months | |||
Periods Ended March 31, | 2006 | 2005 | 2006 | 2005 |
(Thousands, except per share amounts) | ||||
Operating Revenues | $1,696,554 | $1,637,278 | $5,357,819 | $4,842,614 |
Sales and services | ||||
Operating Expenses | ||||
Electricity purchased and fuel used in generation | 466,731 | 437,191 | 1,847,907 | 1,610,948 |
Natural gas purchased | 553,543 | 519,130 | 1,303,227 | 1,065,928 |
Other operating expenses | 186,106 | 181,673 | 801,448 | 770,318 |
Maintenance | 52,464 | 42,515 | 207,653 | 175,181 |
Depreciation and amortization | 69,404 | 67,921 | 278,700 | 281,866 |
Other taxes | 73,865 | 68,031 | 252,105 | 247,248 |
Gain on sale of generation assets | - | - | - | (340,739) |
Deferral of asset sale gain | - | - | - | 228,785 |
Total Operating Expenses | 1,402,113 | 1,316,461 | 4,691,040 | 4,039,535 |
Operating Income | 294,441 | 320,817 | 666,779 | 803,079 |
Other (Income) | (10,400) | (7,824) | (37,849) | (34,112) |
Other Deductions | 4,017 | 1,975 | 13,268 | 11,031 |
Interest Charges, Net | 78,720 | 69,736 | 297,880 | 276,637 |
Preferred Stock Dividends of Subsidiaries | 282 | 476 | 1,281 | 3,179 |
Income from Continuing Operations |
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|
|
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Income Taxes | 88,581 | 102,088 | 156,491 | 275,287 |
Income from Continuing Operations | 133,241 | 154,366 | 235,708 | 271,057 |
Discontinued Operations | ||||
Loss from businesses sold | - | - | - | (6,473) |
Income taxes | - | - | - | 1,433 |
Loss from Discontinued Operations | - | - | - | (7,906) |
Net Income | $133,241 | $154,366 | $235,708 | $263,151 |
Earnings per Share from Continuing | $0.91 |
| $1.60 |
|
Earnings per Share from Continuing | $0.90 |
| $1.60 |
|
Total Earnings per Share, basic | $0.91 | $1.05 | $1.60 | $1.80 |
Total Earnings per Share, diluted | $0.90 | $1.05 | $1.60 | $1.79 |
Dividends Paid per Share | $0.29 | $.275 | $1.13 | $1.07 |
Average Common Shares Outstanding, basic | 147,034 | 146,875 | 147,004 | 146,500 |
Average Common Shares Outstanding, diluted | 147,679 | 147,196 | 147,594 | 146,903 |
Energy Delivery Statistics - (Unaudited)
Three Months | Twelve Months | |||
Periods Ended March 31 | 2006 | 2005 | 2006 | 2005 |
Electricity (thousands of megawatt-hours) | ||||
Residential | 3,300 | 3,402 | 12,499 | 11,892 |
Commercial | 2,239 | 2,379 | 9,665 | 9,524 |
Industrial | 1,729 | 1,699 | 7,364 | 7,384 |
Other | 496 | 596 | 2,179 | 2,244 |
Total retail | 7,764 | 8,076 | 31,707 | 31,044 |
Wholesale | 2,503 | 1,984 | 9,985 | 7,741 |
Total | 10,267 | 10,060 | 41,692 | 38,785 |
Natural Gas (thousands of dekatherms) | ||||
Residential | 33,834 | 39,789 | 74,095 | 81,009 |
Commercial | 11,137 | 13,095 | 24,775 | 26,622 |
Industrial | 1,497 | 1,700 | 3,747 | 4,145 |
Other | 3,509 | 3,512 | 11,017 | 11,612 |
Transportation of customer-owned gas | 25,668 | 28,161 | 80,430 | 83,716 |
Total retail | 75,645 | 86,257 | 194,064 | 207,104 |
Wholesale | 47 | 350 | 580 | 1,681 |
Total | 75,692 | 86,607 | 194,644 | 208,785 |
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