Exhibit 99-1
Energy East Corporation Announces 2006 Financial Results
FOR IMMEDIATE RELEASE
Portland, ME, February 28, 2007, Energy East Corporation [NYSE:EAS] today announced the following financial results.
Earnings per share basic for the 12 months ended December 31, 2006, were $1.77 while earnings per share for the quarter ended December 31, 2006, were 53 cents.
Earnings per share basic for the 12 months ended December 31, 2006, increased 2 cents as compared to earnings per share for the 12 months ended December 31, 2005 of $1.75. The increase in earnings per share was primarily due to higher margins on electric sales of 18 cents and 7 cents from a lower effective income tax rate and differences in the 2005 filed tax return compared to the 2005 book tax expense. Earnings per share also increased by 5 cents due to a write-off in the fourth quarter of 2005 related to the termination of operations of the South Glens Falls generating facility. These increases were partially offset by higher storm related repair costs of 11 cents, higher bad debt expense of 7 cents and 5 cents for the write-off of unamortized issuance costs resulting from the redemption of our trust preferred securities in July.
Earnings per share basic for the fourth quarter of 2006 were 10 cents higher than fourth quarter 2005 earnings of 43 cents per share. The increase was primarily due to higher margins on electric sales and the write-off of the South Glens Falls generating facility noted above. Those increases were partially offset by higher storm-related repairs.
Audited Consolidated Statements of Income and unaudited Energy Delivery Statistics are presented on the following pages.
In addition, today Energy East will file its Form 10-K with the Securities and Exchange Commission. This document contains additional details regarding 2006 financial results and can be found on Energy East's website at www.energyeast.com.
Energy East is a respected super-regional energy services and delivery company serving about 3 million customers throughout upstate New York and New England. By providing outstanding customer service and meeting customers' energy requirements in an environmentally friendly manner, Energy East will continue to be a valuable asset to the communities we serve.
Contact: | Marc Siwak |
| Director, Investor Relations |
| (207) 688-4336 |
Energy East Corporation
Consolidated Statements of Income
| | Three Months | Twelve Months |
| | | | |
Period Ended December 31, | 2006 | 2005 | 2006 | 2005 |
| | | | |
(Thousands, except per share amounts) | | | | |
Operating Revenues | | | | |
Utility | $1,208,441 | $1,327,197 | $4,720,638 | $4,753,105 |
Nonutility | 123,434 | 156,192 | 510,027 | 545,438 |
| | | | |
Total Operating Revenues | 1,331,875 | 1,483,389 | 5,230,665 | 5,298,543 |
| | | | |
Operating Expenses | | | | |
Electricity purchased and fuel used in generation | | | | |
Utility | 333,915 | 345,346 | 1,467,068 | 1,457,746 |
Nonutility | 84,716 | 102,212 | 353,402 | 360,621 |
Natural gas purchased | | | | |
Utility | 300,079 | 414,450 | 1,079,980 | 1,161,059 |
Nonutility | 18,429 | 37,850 | 79,472 | 107,755 |
Other operating expenses | 206,335 | 215,727 | 796,350 | 797,015 |
Maintenance | 64,776 | 52,488 | 218,499 | 197,704 |
Depreciation and amortization | 73,183 | 73,725 | 282,568 | 277,217 |
Other taxes | 59,209 | 61,913 | 249,834 | 246,271 |
| | | | |
Total Operating Expenses | 1,140,641 | 1,303,711 | 4,527,173 | 4,605,388 |
| | | | |
Operating Income | 191,234 | 179,678 | 703,492 | 693,155 |
Other (Income) | (18,943) | (7,800) | (46,126) | (32,904) |
Other Deductions | 4,098 | 2,293 | 24,578 | 8,858 |
Interest Charges, Net | 78,143 | 74,161 | 308,824 | 288,897 |
Preferred Stock Dividends of Subsidiaries | 282 | 283 | 1,129 | 1,474 |
| | | | |
Income before Income Taxes | 127,654 | 110,741 | 415,087 | 426,830 |
Income Taxes | 50,359 | 46,963 | 155,255 | 169,997 |
| | | | |
Net Income | $77,295 | $63,778 | $259,832 | $256,833 |
| | | | |
Earnings per Share, basic | $.53 | $.43 | $1.77 | $1.75 |
| | | | |
Earnings per Share, diluted | $.52 | $.43 | $1.76 | $1.74 |
| | | | |
Dividends Declared per Share | $.30 | $.29 | $1.17 | $1.115 |
| | | | |
Average Common Shares Outstanding, basic | 147,010 | 147,125 | 146,962 | 146,964 |
| | | | |
Average Common Shares Outstanding, diluted | 147,809 | 147,701 | 147,717 | 147,474 |
| | | | |
Energy Delivery Statistics
| | Three Months | Twelve Months |
| | | | | | |
Periods Ended December 31, | 2006 | 2005 | % change | 2006 | 2005 | % change |
| | | | | | |
| | | | | | | |
Electricity (thousands of megawatt-hours) | | | | | | |
Residential | 3,085 | 3,190 | (3%) | 12,125 | 12,720 | (5%) |
Commercial | 2,315 | 2,490 | (7%) | 9,630 | 9,935 | (3%) |
Industrial | 1,769 | 1,920 | (8%) | 7,149 | 7,419 | (4%) |
Other | 567 | 606 | (6%) | 2,229 | 2,299 | (3%) |
| | | | | | |
Total retail | 7,736 | 8,206 | (6%) | 31,133 | 32,373 | (4%) |
Wholesale | 2,179 | 2,695 | (19%) | 9,317 | 9,465 | (2%) |
| | | | | | |
Total | 9,915 | 10,901 | (9%) | 40,450 | 41,838 | (3%) |
| | | | | | |
Natural Gas (thousands of dekatherms) | | | | | | |
Residential | 20,584 | 23,298 | (12%) | 70,636 | 80,049 | (12%) |
Commercial | 6,443 | 7,509 | (14%) | 23,904 | 26,733 | (11%) |
Industrial | 952 | 1,142 | (17%) | 3,529 | 3,951 | (11%) |
Other | 3,449 | 2,447 | 41% | 12,892 | 11,020 | 17% |
Transportation of customer-owned gas | 20,244 | 20,392 | (1%) | 77,318 | 82,924 | (7%) |
| | | | | | |
Total retail | 51,672 | 54,788 | (6%) | 188,279 | 204,677 | (8%) |
Wholesale | 19 | - | 100% | 111 | 883 | (87%) |
| | | | | | |
Total | 51,691 | 54,788 | (6%) | 188,390 | 205,560 | (8%) |
| | | | | | |
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