Exhibit 99-1
Energy East Corporation Announces Third Quarter 2006 Financial Results
FOR IMMEDIATE RELEASE
Portland, ME, November 2, 2006, Energy East Corporation [NYSE:EAS] today announced the following financial results.
Earnings per share, basic for the quarter ended September 30, 2006, were 14 cents and for the 12 months ended September 30, 2006, were $1.68.
Earnings per share, basic for the quarter ended September 30, 2006, were the same as for the quarter ended September 30, 2005. Third quarter earnings were reduced 5 cents per share for the recognition of unamortized debt expense related to the redemption of our junior subordinated debt securities in July. This reduction was offset by lower tax expense reflecting actual 2005 tax expense as filed, revised estimates for 2006 tax expense and completion of an IRS audit for 2002/2003.
Earnings per share from continuing operations, basic for the 12 months ended September 30, 2006, decreased 2 cents per share compared to $1.70 for the 12 months ended September 30, 2005. Higher margins on electric sales which increased earnings were offset by higher operating and maintenance costs including storm-related repairs, increased reserves for uncollectible accounts and regulatory expenses. Other events reducing earnings for the twelve months ended September 30, 2006, were the debt redemption in July and the associated recognition of unamortized debt expense, and 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 September 30, | 2006 | 2005 | 2006 | 2005 |
(Thousands, except per share amounts) | ||||
Operating Revenues | ||||
Utility | $969,093 | $966,313 | $4,839,393 | $4,583,705 |
Other | 121,261 | 128,870 | 541,879 | 496,514 |
Total Operating Revenues | 1,090,354 | 1,095,183 | 5,381,272 | 5,080,219 |
Operating Expenses | ||||
Electricity purchased and fuel used in generation | ||||
Utility | 401,603 | 398,874 | 1,478,499 | 1,456,588 |
Other | 95,060 | 97,965 | 370,898 | 325,334 |
Natural gas purchased | ||||
Utility | 97,469 | 104,323 | 1,194,352 | 1,041,957 |
Other | 7,709 | 12,068 | 98,893 | 93,164 |
Other operating expenses | 202,677 | 212,404 | 803,922 | 773,231 |
Maintenance | 57,509 | 51,155 | 206,211 | 197,130 |
Depreciation and amortization | 69,921 | 67,451 | 283,110 | 273,820 |
Other taxes | 58,495 | 56,584 | 253,451 | 248,551 |
Total Operating Expenses | 990,443 | 1,000,824 | 4,689,336 | 4,409,775 |
Operating Income | 99,911 | 94,359 | 691,936 | 670,444 |
Other (Income) | (9,873) | (13,931) | (35,708) | (32,553) |
Other Deductions | 12,332 | 3,253 | 23,498 | 14,610 |
Interest Charges, Net | 76,818 | 72,718 | 304,842 | 283,138 |
Preferred Stock Dividends of Subsidiaries | 283 | 283 | 1,130 | 1,667 |
Income from Continuing Operations | 20,351 | 32,036 | 398,174 | 403,582 |
Income Taxes | (661) | 10,712 | 151,859 | 154,160 |
Income from Continuing Operations | 21,012 | 21,324 | 246,315 | 249,422 |
Discontinued Operations | ||||
Loss from businesses sold | - | - | - | (1,486) |
Income taxes | - | - | - | 135 |
Income (Loss) from Discontinued Operations | - | - | - | (1,621) |
Net Income | $21,012 | $21,324 | $246,315 | $247,801 |
Earnings per Share from Continuing | $.14 | $.14 | $1.68 | $1.70 |
Earnings per Share from Continuing | $.14 | $.14 | $1.67 | $1.69 |
Loss per Share from Discontinued | - | - | - | $(0.01) |
Total Earnings per Share, basic | $.14 | $.14 | $1.68 | $1.69 |
Total Earnings per Share, diluted | $.14 | $.14 | $1.67 | $1.68 |
Dividends Paid per Share | $.29 | $.275 | $1.16 | $1.10 |
Average Common Shares Outstanding, basic | 146,903 | 147,008 | 146,992 | 146,816 |
Average Common Shares Outstanding, diluted | 147,702 | 147,588 | 147,690 | 147,286 |
Energy Delivery Statistics - (Unaudited)
Three Months | Twelve Months | |||
Periods ended September 30, | 2006 | 2005 | 2006 | 2005 |
Electricity (thousands of megawatt-hours) | ||||
Residential | 3,148 | 3,438 | 12,127 | 12,485 |
Commercial | 2,631 | 2,765 | 9,665 | 9,798 |
Industrial | 1,830 | 1,981 | 7,212 | 7,374 |
Other | 537 | 566 | 2,246 | 2,287 |
Total retail | 8,146 | 8,750 | 31,250 | 31,944 |
Wholesale | 2,151 | 2,326 | 9,836 | 8,918 |
Total | 10,297 | 11,076 | 41,086 | 40,862 |
Natural Gas (thousands of dekatherms) | ||||
Residential | 5,080 | 4,967 | 73,354 | 81,200 |
Commercial | 2,474 | 2,322 | 24,970 | 26,499 |
Industrial | 533 | 505 | 3,720 | 4,133 |
Other | 2,947 | 2,614 | 11,889 | 12,076 |
Transportation of customer-owned gas | 14,287 | 16,037 | 77,464 | 85,320 |
Total retail | 25,321 | 26,445 | 191,397 | 209,228 |
Wholesale | - | 185 | 90 | 1,552 |
Total | 25,321 | 26,630 | 191,487 | 210,780 |