Exhibit 99-1
Energy East Corporation Announces First Quarter 2007 Financial Results
Portland, Maine, May 3, 2007 - Energy East Corporation (NYSE: EAS) today announced its first quarter 2007 financial results. Earnings per basic share for the first quarter 2007 were $0.90 compared to $0.91 per share earned in the first quarter 2006.
While earnings were relatively consistent on a year-over-year basis, several key factors affected results:
- Favorable year-over-year weather drove increased retail sales in both the electricity and natural gas delivery businesses. Heating degree days during the first quarter of 2007 were near normal levels, but were approximately 13% higher than the first quarter 2006, when weather was relatively mild. Weather helped drive a 3% increase in retail electric sales and a 10% increase in retail natural gas sales. This resulted in $0.04 per share benefit from electric margins and an additional $0.05 per share in natural gas margins
- Absent sales increases, electric margins reduced earnings per share $0.15 for the quarter due largely to the August 2006 New York State Electric and Gas (NYSEG) rate order
- Interest costs declined by $0.04 per share on a year-over-year basis driven by lower carrying costs on regulatory liabilities and savings from debt refinancings completed in 2006
- Year-over-year operating and maintenance (O&M) expenses were down $0.01 per share. This was driven by lower storm costs which were partially offset by small increases in other O&M items
For the 12 months ended March 31, 2007, Energy East earned $1.77 per share compared to $1.60 for the 12 months ended March 31, 2006.
Major positive drivers of this increase were:
- Higher margins on electricity and natural gas sales, primarily driven by favorable weather, which benefited earnings by $0.13 per share
- Lower income tax expense of $0.07 per share
- Benefits from insurance settlements of $0.04 per share received in the fourth quarter of 2006
- The fourth quarter 2005 write down of the South Glens Falls generating facility of $0.05 per share
- Other small improvements in O&M and interest expense totaling $0.03 per share
Partially offsetting those favorable items were the following factors:
- Higher storm and flood costs of $0.03 per share
- Higher bad debt expense, primarily for the natural gas distribution subsidiaries, of $0.07 per share
- A $0.05 write off of unamortized expense resulting from the redemption of junior subordinated debt securities and associated trust preferred securities in the third quarter of 2006
In addition to this news release, supplemental financial information and the Form 10-Q to be filed today are available in the Financial Information section of the Energy East 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 |
Energy East Corporation
Consolidated Statements of Income - (Unaudited)
Three Months | Twelve Months | |||
Periods Ended March 31, | 2007 | 2006 | 2007 | 2006 |
(Thousands, except per share amounts) | ||||
Operating Revenues | $1,713,738 | $1,696,554 | $5,247,849 | $5,357,819 |
Operating Expenses | ||||
Electricity purchased and fuel used in generation | 474,126 | 466,731 | 1,827,865 | 1,847,907 |
Natural gas purchased | 580,881 | 553,543 | 1,186,790 | 1,303,227 |
Other operating expenses | 193,723 | 186,106 | 803,967 | 801,448 |
Maintenance | 40,818 | 52,464 | 206,853 | 207,653 |
Depreciation and amortization | 68,799 | 69,404 | 281,963 | 278,700 |
Other taxes | 75,713 | 73,865 | 251,682 | 252,105 |
Total Operating Expenses | 1,434,060 | 1,402,113 | 4,559,120 | 4,691,040 |
Operating Income | 279,678 | 294,441 | 688,729 | 666,779 |
Other (Income) | (8,955) | (10,400) | (44,681) | (37,849) |
Other Deductions | 3,231 | 4,017 | 23,792 | 13,268 |
Interest Charges, Net | 68,401 | 78,720 | 298,505 | 297,880 |
Preferred Stock Dividends of Subsidiaries | 282 | 282 | 1,129 | 1,281 |
Income Before Income Taxes | 216,719 | 221,822 | 409,984 | 392,199 |
Income Taxes | 83,425 | 88,581 | 150,099 | 156,491 |
Net Income | $133,294 | $133,241 | 259,885 | $235,708 |
Total Earnings per Share, basic | $.90 | $.91 | $1.77 | $1.60 |
Total Earnings per Share, diluted | $.90 | $.90 | $1.76 | $1.60 |
Dividends Paid per Share | $.30 | $.29 | $1.18 | $1.13 |
Average Common Shares Outstanding, basic | 147,517 | 147,034 | 147,082 | 147,004 |
Average Common Shares Outstanding, diluted | 148,406 | 147,679 | 147,896 | 147,594 |
Energy East Corporation
Energy Delivery Statistics - (Unaudited)
Three Months | Twelve Months | |||
Periods Ended March 31 | 2007 | 2006 | 2007 | 2006 |
Electricity (thousands of megawatt-hours) | ||||
Residential | 3,427 | 3,300 | 12,252 | 12,499 |
Commercial | 2,461 | 2,239 | 9,852 | 9,665 |
Industrial | 1,595 | 1,781 | 6,963 | 7,364 |
Other | 598 | 532 | 2,295 | 2,179 |
Total retail | 8,081 | 7,852 | 31,362 | 31,707 |
Wholesale | 1,935 | 2,503 | 8,749 | 9,985 |
Total | 10,016 | 10,355 | 40,111 | 41,692 |
Natural Gas (thousands of dekatherms) | ||||
Residential | 38,687 | 33,834 | 75,489 | 74,095 |
Commercial | 12,416 | 11,138 | 25,182 | 24,775 |
Industrial | 1,536 | 1,497 | 3,568 | 3,747 |
Other | 4,397 | 3,509 | 13,780 | 11,017 |
Transportation of customer-owned gas | 26,484 | 25,609 | 78,193 | 80,430 |
Total retail | 83,520 | 75,587 | 196,212 | 194,064 |
Wholesale | 351 | 46 | 416 | 580 |
Total | 83,871 | 75,633 | 196,628 | 194,644 |
Energy East Corporation
Weather Statistics - (Unaudited)
Three Months | |||
Periods Ended March 31 | 2007 | 2006 | Normal |
New York | |||
Heating-degree days | 3,347 | 2,989 | 3,411 |
Colder than prior year | 12% | ||
(Warmer) than normal | (2%) | ||
New England | |||
Heating-degree days | 3,180 | 2,814 | 3,175 |
Colder than prior year | 13% | ||
Colder than normal | - | ||