[VECTREN LETTERHEAD]
News Release
Vectren Corporation
P.O. Box 209
Evansville, IN 47702-0209
FOR IMMEDIATE RELEASE
November 8, 2004
Vectren Corporation
Announces 2005 Earnings Guidance
Reaffirms 2004 Earnings Guidance
Evansville, Indiana - Vectren Corporation (NYSE:VVC) today announced earnings
guidance for 2005 in the range of $1.70 to $1.90 per share of common stock.
Additionally, the company reaffirmed its earnings guidance for 2004 in the range
of $1.43 to $1.58 per share of common stock.
Vectren Chairman, President and CEO, Niel C. Ellerbrook said, "We have made
great progress over the last twelve months as we continue to execute our
business strategies. The 2005 guidance anticipates earnings growth from both our
utility operations and our complementary nonregulated businesses. We believe we
have in place the foundation that will provide the opportunity to achieve our
long-term growth rate objectives."
Growth Rate Objectives
Vectren's excellent utility growth opportunities and successful nonregulated
operations support the commitment to maintaining a strong balance sheet and
improving credit ratings. Long-term growth objectives include:
o 3.5% to 4% utility growth rate
o 10% plus nonregulated growth rate
o 5% plus overall growth rate
Dividend Policy
Vectren and its predecessor companies have achieved an enviable record of 45
consecutive years of increasing the common dividend. Long-term objectives
include:
o 3% to 3.5% dividend growth
o 55% to 65% long-term payout ratio of Vectren's consolidated earnings
o 85% of dividend funded through regulated operations
Utility Group
Our utility group is expected to contribute 2005 earnings per share in the range
of $1.28 to $1.40. We anticipate improved gas and electric margins due to the
incremental return on our NOx environmental compliance investments, the South
gas rate increase implemented in July 2004 and pending gas rate relief for our
North and Ohio operations. The revenue increases will be somewhat offset by
higher operating costs and depreciation expense.
-more-
Nonregulated Group
Our nonregulated group is expected to contribute earnings per share in the range
of $0.45 to $0.54. We anticipate approximately 15% growth from our three primary
nonregulated business groups and continued monetization from investments in
Haddington Energy Partners.
Corporate
Corporate expenses are expected to be in the range of $0.03 to $0.04 per share.
Live Webcast on November 9, 2004
Vectren senior management will provide an outlook for 2005 during a meeting with
the financial community scheduled at noon EST, Tuesday, November 9, 2004.
Interested parties may listen to a live Webcast and view the supporting slides
by accessing the Investor Relations link on Vectren's Web site at
www.vectren.com. A replay will be available on Vectren's Web site beginning two
hours after the completion of the Webcast. The supporting slides will also be
filed on Form 8 K.
About Vectren
Vectren Corporation is an energy and applied technology holding Company
headquartered in Evansville, Indiana. Vectren's energy delivery subsidiaries
provide gas and/or electricity to over one million customers in adjoining
service territories that cover nearly two-thirds of Indiana and west central
Ohio. Vectren's non-regulated subsidiaries and affiliates currently offer
energy-related products and services to customers throughout the midwest and
southeast. These include gas marketing and related services; coal production and
sales; and utility infrastructure services. To learn more about Vectren, visit
www.vectren.com.
Safe Harbor for Forward Looking Statements
This document contains forward-looking statements, which are based on
management's beliefs and assumptions that derive from information currently
known by management. Vectren wishes to caution readers that actual results could
differ materially from those contained in this document. Additional detailed
information concerning a number of factors that could cause actual results to
differ materially from the information that is provided to you is readily
available in our report Form 10-K filed with the Securities and Exchange
Commission on February 26, 2004.
Investor Contact Steven M. Schein, (812) 491-4209, sschein@vectren.com
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Media Contact Jeffrey W. Whiteside, (812) 491-4205, jwhiteside@vectren.com
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