Exhibit 99-1
ENERGY EAST CORPORATIONANNOUNCES 2007 FINANCIAL RESULTS
FOR IMMEDIATE RELEASE
Portland, ME, February 28, 2008, Energy East Corporation [NYSE:EAS] today announced the following financial results.
Earnings per share, basic for the 12 months ended December 31, 2007, were $1.62 while earnings per share, basic for the quarter ended December 31, 2007, were 47 cents.
Earnings per share, basic for the 12 months ended December 31, 2007, decreased 15 cents as compared to earnings per share, basic for the 12 months ended December 31, 2006, of $1.77.
Major factors in the year over year earnings decline included:
- Electric margins that declined 40 cents primarily as a result of an adverse electric rate decision by the New York Public Service Commission for New York State Electric & Gas Corporation, which became effective January 1, 2007.
- Higher average shares outstanding as a result of the issuance of 10 million shares of common stock in the spring of 2007 that lowered earnings per share 9 cents.
- Merger-related costs that totaled 6 cents per share.
Those items were partially offset by:
- Lower interest costs that added 13 cents.
- Lower income taxes of 14 cents, reflecting actual 2006 tax expense as filed and favorable variances in recurring flow-through items.
- Lower storm and bad debt costs that improved earnings 11 cents and 5 cents, respectively.
Earnings per share, basic for the fourth quarter of 2007 were 6 cents lower than fourth quarter 2006 earnings of 53 cents per share. The decrease was primarily due to lower electric margins of 12 cents per share, partially offset by higher natural gas margins of 7 cents per share.
Consolidated Statements of Income and Energy Distribution and Weather Statistics are presented on the following pages.
On February 29, 2008, Energy East will file its Form 10-K with the Securities and Exchange Commission. The Form 10-K will contain additional details regarding 2007 financial results and will be available on Energy East's website: www.energyeast.com. Shareholders may obtain a free copy of our Form 10-K by contacting Investor Relations.
About Energy East:
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: | Investor Relations |
Energy East Corporation
Consolidated Statements of Income
Three Months | Twelve Months | |||
Period Ended December 31, | 2007 | 2006 | 2007 | 2006 |
(Thousands, except per share amounts) | ||||
Operating Revenues | ||||
Utility | $1,205,118 | $1,208,441 | $4,652,783 | $4,720,638 |
Other | 139,541 | 123,434 | 525,325 | 510,027 |
Total Operating Revenues | 1,344,659 | 1,331,875 | 5,178,108 | 5,230,665 |
Operating Expenses | ||||
Electricity purchased and fuel used in generation | ||||
Utility | 323,174 | 333,915 | 1,441,000 | 1,467,068 |
Other | 90,966 | 84,715 | 363,793 | 353,402 |
Natural gas purchased | ||||
Utility | 321,504 | 300,079 | 1,116,092 | 1,079,980 |
Other | 28,203 | 18,429 | 90,418 | 79,472 |
Other operating expenses | 221,876 | 206,335 | 842,996 | 796,350 |
Maintenance | 44,425 | 64,776 | 175,618 | 218,499 |
Depreciation and amortization | 71,129 | 73,183 | 277,490 | 282,568 |
Other taxes | 63,952 | 59,209 | 255,680 | 249,834 |
Total Operating Expenses | 1,165,229 | 1,140,641 | 4,563,087 | 4,527,173 |
Operating Income | 179,430 | 191,234 | 615,021 | 703,492 |
Other (Income) | (9,155) | (18,943) | (38,884) | (46,126) |
Other Deductions | 3,603 | 4,098 | 11,483 | 24,578 |
Interest Charges, Net | 71,032 | 78,144 | 275,938 | 308,824 |
Preferred Stock Dividends of Subsidiaries | 282 | 282 | 1,128 | 1,129 |
Income Before Income Taxes | 113,668 | 127,653 | 365,356 | 415,087 |
Income Taxes | 40,197 | 50,359 | 114,058 | 155,255 |
Net Income | $73,471 | $77,294 | $251,298 | $259,832 |
Earnings per Share, basic | $.47 | $.53 | $1.62 | $1.77 |
Earnings per Share, diluted | $.46 | $.53 | $1.61 | $1.76 |
Dividends Declared per Share | $.31 | $.30 | $1.21 | $1.17 |
Average Common Shares Outstanding, basic | 157,221 | 147,010 | 154,801 | 146,962 |
Average Common Shares Outstanding, diluted | 158,279 | 147,809 | 155,805 | 147,717 |
Energy East Corporation
Energy Distribution Statistics
Three Months | Twelve Months | ||||||
Periods Ended December 31, | 2007 | 2006 | % change | 2007 | 2006 | % change | |
Electricity (thousands of megawatt-hours) | |||||||
Residential | 3,115 | 3,085 | 1% | 12,439 | 12,142 | 2% | |
Commercial | 2,416 | 2,315 | 4% | 10,036 | 9,618 | 4% | |
Industrial | 1,849 | 1,819 | 2% | 7,298 | 7,235 | 1% | |
Other | 587 | 567 | 4% | 2,300 | 2,227 | 3% | |
Total retail | 7,967 | 7,786 | 2% | 32,073 | 31,222 | 3% | |
Wholesale | 1,859 | 2,179 | (15%) | 7,241 | 9,318 | (22%) | |
Total | 9,826 | 9,965 | (1%) | 39,314 | 40,540 | (3%) | |
Natural Gas (thousands of dekatherms) | |||||||
Residential | 23,246 | 20,584 | 13% | 78,061 | 70,637 | 11% | |
Commercial | 7,455 | 6,443 | 16% | 25,687 | 23,904 | 7% | |
Industrial | 1,040 | 952 | 9% | 3,591 | 3,526 | 2% | |
Other | 3,502 | 3,449 | 2% | 13,340 | 12,891 | 3% | |
Transportation of customer-owned gas | 20,539 | 20,244 | 1% | 77,671 | 77,253 | 1% | |
Total retail | 55,782 | 51,672 | 8% | 198,350 | 188,211 | 5% | |
Wholesale | 858 | 19 | NM | 1,753 | 110 | NM | |
Total | 56,640 | 51,691 | 10% | 200,103 | 188,321 | 6% | |
NM = Not meaningful
Energy East Corporation
Weather Statistics
Three Months | Twelve Months | ||||||
Periods ended December 31, | 2007 | 2006 | Normal | 2007 | 2006 | Normal | |
New York | |||||||
Heating degree days | 2,192 | 1,951 | 2,380 | 6,595 | 5,991 | 6,974 | |
(Warmer) colder than prior year | 12% | 10% | |||||
(Warmer) colder than normal | (8%) | (5%) | |||||
Cooling degree days | NM | NM | NM | 653 | 562 | 492 | |
(Cooler) warmer than prior year | NM | 16% | |||||
(Cooler) warmer than normal | NM | 33% | |||||
New England | |||||||
Heating degree days | 2,041 | 1,790 | 2,177 | 6,145 | 5,447 | 6,315 | |
(Warmer) colder than prior year | 14% | 13% | |||||
(Warmer) colder than normal | (6%) | (3%) | |||||
Cooling degree days | NM | NM | NM | 409 | 444 | 388 | |
(Cooler) warmer than prior year | NM | (8%) | |||||
(Cooler) warmer than normal | NM | 5% | |||||
NM = Not meaningful
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