Exhibit 99-1
Energy East Corporation Announces Second Quarter 2006 Financial Results
FOR IMMEDIATE RELEASE
Albany, NY, and Portland, ME, August 3, 2006, Energy East Corporation [NYSE:EAS] today announced the following financial results.
Earnings per share from continuing operations, basic for the quarter ended June 30, 2006, were 19 cents and for the 12 months ended June 30, 2006, were $1.68.
Earnings from continuing operations, basic for the quarter ended June 30, 2006, increased 7 cents per share compared to 12 cents per share for the quarter ended June 30, 2005. Second quarter earnings increased primarily due to higher margins on electricity sales. This increase was partially offset by lower natural gas sales and increased operating and maintenance costs, primarily for increased reserves for uncollectible accounts.
Earnings per share from continuing operations, basic for the 12 months ended June 30, 2006, increased 1 cent per share compared to $1.67 for the 12 months ended June 30, 2005. The increase in earnings per share was primarily due to higher margin on electric sales. These increases were offset by higher operating and maintenance costs including storm-related repairs, increased reserves for uncollectible accounts and increased transmission costs and by the writedown of The Energy Network's South Glens Falls generating facility in the fourth quarter of 2005.
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 June 30, | 2006 | 2005 | 2006 | 2005 |
(Thousands, except per share amounts) | ||||
Operating Revenues | ||||
Utility | $1,000,898 | $970,076 | $4,836,613 | $4,496,409 |
Nonutility | 111,927 | 111,068 | 549,489 | 455,829 |
Total Operating Revenues | 1,112,825 | 1,081,144 | 5,386,102 | 4,952,238 |
Operating Expenses | ||||
Electricity purchased and fuel used in generation | ||||
Utility | 354,208 | 357,264 | 1,475,770 | 1,424,650 |
Nonutility | 84,237 | 79,515 | 373,803 | 284,824 |
Natural gas purchased | ||||
Utility | 172,663 | 166,335 | 1,201,206 | 1,016,849 |
Nonutility | 9,560 | 14,658 | 103,252 | 85,760 |
Other operating expenses | 202,174 | 185,662 | 814,562 | 766,952 |
Maintenance | 43,750 | 51,545 | 199,857 | 186,085 |
Depreciation and amortization | 70,061 | 68,121 | 280 640 | 274,993 |
Other taxes | 58,265 | 59,743 | 250,627 | 248,216 |
Gain on sale of generation assets | - | - | - | (21,252) |
Deferral of asset sale gain | - | - | - | 14,416 |
Total Operating Expenses | 994,918 | 982,843 | 4,699,717 | 4,281,493 |
Operating Income | 117,907 | 98,301 | 686,385 | 670,745 |
Other (Income) | (6,910) | (4,993) | (39,765) | (27,425) |
Other Deductions | 4,131 | 2,980 | 14,419 | 12,853 |
Interest Charges, Net | 75,142 | 72,282 | 300,741 | 280,096 |
Preferred Stock Dividends of Subsidiaries | 283 | 433 | 1,130 | 1,821 |
Income from Continuing Operations |
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Income Taxes | 16,976 | 10,234 | 163,232 | 157,801 |
Income from Continuing Operations | 28,285 | 17,365 | 246,628 | 245,599 |
Discontinued Operations | ||||
Loss from businesses sold | - | - | - | (2,157) |
Income taxes | - | - | - | 992 |
Income (Loss) from Discontinued Operations | - | - | - | (3,149) |
Net Income | $28,285 | $17,365 | $246,628 | $242,450 |
Earnings per Share from Continuing |
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Earnings per Share from Continuing |
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Total Earnings per Share, basic | $.19 | $.12 | $1.68 | $1.65 |
Total Earnings per Share, diluted | $.19 | $.12 | $1.67 | $1.65 |
Dividends Paid per Share | $.29 | $.275 | $1.145 | $1.085 |
Average Common Shares Outstanding, basic | 146,903 | 146,831 | 147,022 | 146,670 |
Average Common Shares Outstanding, diluted | 147,678 | 147,390 | 147,665 | 147,101 |
Energy Delivery Statistics - (Unaudited)
Three Months | Twelve Months | |||
Periods Ended June 30 | 2006 | 2005 | 2006 | 2005 |
Electricity (thousands of megawatt-hours) | ||||
Residential | 2,598 | 2,692 | 12,405 | 11,957 |
Commercial | 2,439 | 2,302 | 9,803 | 9,577 |
Industrial | 1,738 | 1,817 | 7,369 | 7,315 |
Other | 541 | 530 | 2,188 | 2,241 |
Total retail | 7,316 | 7,341 | 31,765 | 31,090 |
Wholesale | 2,485 | 2,460 | 10,007 | 8,330 |
Total | 9,801 | 9,801 | 41,772 | 39,420 |
Natural Gas (thousands of dekatherms) | ||||
Residential | 11,139 | 11,995 | 73,240 | 81,384 |
Commercial | 3,848 | 3,807 | 24,818 | 26,620 |
Industrial | 548 | 603 | 3,691 | 4,036 |
Other | 2,987 | 2,449 | 11,555 | 11,755 |
Transportation of customer-owned gas | 17,116 | 18,333 | 79,211 | 84,543 |
Total retail | 35,638 | 37,187 | 192,515 | 208,338 |
Wholesale | 45 | 348 | 276 | 1,582 |
Total | 35,683 | 37,535 | 192,791 | 209,920 |