Exhibit 99
April 27, 2007
For Release: Immediately
Contact: Investors: Stacey A. Renner, (845) 486-5730
News Media: Denise D. VanBuren, (845) 471-8323
CH Energy Group Posts Strong First Quarter Earnings
(Poughkeepsie, NY) CH Energy Group (NYSE:CHG) earnings during the first quarter
of 2007 climbed by 19 percent as compared to the same quarter of last year.
Earnings per share for the first three months of 2007 totaled $1.38, versus
$1.16 during the first quarter of 2006. As a result of the improved earnings,
guidance for 2007 has been revised upward, with total earnings per share
projected to be $2.55 to $2.80.
"We are particularly encouraged that 17 cents, or about 77 percent, of the
increase in 2007 quarterly earnings came from our Central Hudson Enterprises
Corporation businesses, with about 13 cents stemming from Griffith Energy
Services, Inc., our fuel distribution businesses, and another 4 cents derived
from our portfolio of renewable energy projects," said Steven V. Lant, Chairman
of the Board, President and C.E.O. "These results reflect our efforts to
profitably invest in the competitive energy markets and to improve the
operational effectiveness of the investments that we own or in which we
partner."
Lant outlined results per business segment:
Central Hudson Gas & Electric Corporation:
Calmer weather and higher rates for delivering electricity and natural gas
were the prime factors that improved earnings within utility subsidiary Central
Hudson Gas & Electric Corporation, which contributed 83 cents during the quarter
- -- an increase of 2 cents over the same period of 2006. A decline in storms
during the period reduced expenses associated with restoring electric service,
and
increased revenues stemming from a rate order issued last year contributed 18
cents to quarterly earnings. "We also saw a softening in the conservation trend
that had been evidenced by our customers and actually saw an increase in
weather-normalized sales growth during the period," Lant said.
Lant said it is now expected that Central Hudson will contribute between
$1.90 and $2.00 to annual earnings, an increase of 10 cents from the earlier
projection, reflecting the colder-than-normal weather in February and March 2007
that offset the negative impacts resulting from the warm weather experienced in
December 2006 and January 2007.
Griffith Energy Services, Inc.
"Well-timed oil company acquisitions added an estimated 6 cents per share
during the quarter, and increased margins on petroleum sales and services added
another 9 cents, as compared to last year's results within Griffith," Lant said,
noting that Griffith earned 40 cents during the first quarter, up from 27 cents
during the first three months of 2006. "The colder weather during the quarter
also had a positive impact on Griffith's performance," he said.
In all, 12 acquisitions have been made since the first quarter of 2006,
expanding Griffith's customer count by 19 percent to more than 100,000 as it
increased its market share and entered a new market in Rhode Island.
As a result of the segment's strong quarterly performance, the Company has
increased its estimates of annual earnings from Griffith by 5 cents to a total
of between 25 and 30 cents.
Other Businesses & Investments
Quarterly earnings for other businesses and investments, including the
Company's renewable energy portfolio, totaled 15 cents during the quarter,
nearly doubling the results of the same period of 2006. A favorable tax
adjustment, earnings from the Cornhusker Energy Lexington ethanol plant and
investments in two wind energy projects all contributed positively to the
quarterly results.
Lant reiterated the Company's belief that annual earnings for its other
businesses should total between 40 and 50 cents for 2007, and stated that he now
projects that consolidated earnings per share for all business units will total
between $2.55 and $2.80.
About CH Energy Group, Inc.
With nearly 470,000 customers, CH Energy Group, Inc. is a family of companies
seizing new opportunities in the energy marketplace through two primary
subsidiaries: Central Hudson Gas & Electric Corporation is a regulated
transmission and distribution utility serving approximately 367,000 customers in
eight counties of New York State's Mid-Hudson River Valley, and delivering
natural gas and electricity in a 2,600-square-mile service territory that
extends from the suburbs of metropolitan New York, City north to the Capital
District at Albany. Central Hudson Enterprises Corporation, a non-regulated
subsidiary, is the umbrella for a family of energy-related companies and
investments focused primarily on fuel distribution and renewable energy.
Griffith Energy Service's fuel distribution business supplies energy products
and services to more than 100,000 customers in nine states, stretching from
Rhode Island to the Washington, D.C. area. CHEC also has interests in a
Lexington, Neb., ethanol plant, two wind power projects, and a biomass plant in
upstate New York.
Conference Call: Mr. Lant will conduct a conference call with investors to
review financial results at 2:00 p.m. (ET) today, April 27, 2007. Dial-in:
1-888-428-4480; Conference Name "CH Energy Group." Supplemental materials will
be posted to the Company's Web site at www.CHEnergyGroup.com to assist
participants in following the Conference Call presentation. A digitized replay
of the call will be available from 7:15 p.m. (ET) on April 27, 2007, until 11:59
p.m. (ET) on May 4, 2007, by dialing 1-800-475-6701 and entering access code
#870500. In addition, the call will be webcast live in listen-only mode and
available for replay for approximately 30 days within the Investor Relations
section of the Company's Web site at www.CHEnergyGroup.com
Forward-Looking Statements
Statements included in this news release, including documents incorporated
by reference that are not historical in nature, are intended to be, and are
hereby identified as, "forward-looking statements" for purposes of the safe
harbor provided by Section 21E of the Securities Exchange Act of 1934, as
amended. Forward-looking statements may be identified by words including
"anticipates," "believes," "projects," "intends," "estimates," "expects,"
"plans," "assumes," "seeds," and similar expressions. Forward-looking statements
including, without limitation, those relating to CH Energy Group, Inc. and its
subsidiaries' future business prospects, revenues, proceeds, working capital,
liquidity, income and margins, are subject to certain risks and uncertainties
that could cause actual results to differ materially from those indicated in the
forward-0looking statements, due to several important factors including those
identified from time to time in the forward-looking statements. Those factors
include, but are not limited to: weather; energy supply and demand; fuel prices;
interest rates; potential future acquisitions; developments in the legislative,
regulatory and competitive environment; market risks; electric and gas industry
restructuring and cost recovery; the ability to obtain adequate and timely rate
relief; changes in fuel supply or costs; the success of strategies to satisfy
electricity requirements now that Central Hudson's major electric generation
assets have been sold; future market prices for energy, capacity, and ancillary
services; the outcome of pending litigation and certain environmental matters,
particularly the status of inactive hazardous waste disposal sites and waste
site remediation requirements; and certain presently unknown or unforeseen
factors, including, but not limited to, acts of terrorism. CH Energy Group, Inc.
and its subsidiaries undertake no obligation to update publicly any
forward-looking statements, whether as a result of new information, future
events or otherwise. Given these uncertainties, undue reliance should not be
placed on the forward-looking statements.
CH ENERGY GROUP, INC.
CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
3 Months Ended
March 31,
----------------------
2007 2006
--------- ---------
(Thousands of Dollars)
Operating Revenues
Electric $ 151,675 $ 136,047
Natural Gas 64,191 70,809
Competitive Business Subsidiaries 127,512 110,375
--------- ---------
Total Operating Revenues 343,378 317,231
--------- ---------
Operating Expenses
Operations - Purchased Electricity and Fuel Used in
Electric Generation, Purchased Natural Gas,
and Purchased Petroleum 231,932 222,425
Other Expenses of Operation - Regulated Activities 37,649 28,495
Other Expenses of Operation - Comp. Bus. Subsidiaries 18,792 15,670
Depreciation and Amortization 9,105 8,952
Taxes, Other Than Income Tax 8,488 7,604
--------- ---------
Total Operating Expenses 305,966 283,146
--------- ---------
Operating Income 37,412 34,085
--------- ---------
Other Income and Deductions
Income from unconsolidated affiliates 1,195 190
Interest and Investment Income 2,227 2,737
Other - Net (583) (720)
--------- ---------
Total Other Income and Deductions 2,839 2,207
--------- ---------
Interest Charges
Interest on Debt 4,492 3,953
Other Interest 949 1,038
--------- ---------
Total Interest Charges 5,441 4,991
--------- ---------
Income Before Income Taxes and
Preferred Dividends of Subsidiary and Minority Interest 34,810 31,301
Income Taxes 12,963 12,759
Minority Interest (93) 0
--------- ---------
Income Before Preferred Dividends of Subsidiary 21,940 18,542
Cumulative Preferred Stock Dividends of Subsidiary 242 242
--------- ---------
Net Income 21,698 18,300
Dividends Declared on Common Stock 8,511 8,511
--------- ---------
Amount Retained in the Business $ 13,187 $ 9,789
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Avg. Shares of Common Stock Outstanding - (Basic) (000s) 15,762 15,762
Avg. Shares of Common Stock Outstanding - (Diluted) (000s) 15,790 15,777
Earnings Per Share - (Basic) $ 1.38 $ 1.16
Earnings Per Share - (Diluted) $ 1.37 $ 1.16
Dividends Declared Per Share $ 0.54 $ 0.54
CH ENERGY GROUP, INC.
CONSOLIDATED BALANCE SHEET
March 31, December 31,
2007 (1) 2006 (2)
---------- ------------
ASSETS (Thousands of Dollars)
UTILITY PLANT
Utility Plant $ 1,129,772 $ 1,120,551
Less Accumulated Depreciation 351,477 344,540
----------- -----------
778,295 776,011
Construction Work in Progress 59,208 51,041
----------- -----------
Net Utility Plant 837,503 827,052
----------- -----------
OTHER PROPERTY AND PLANT & EQUIPMENT 33,917 33,822
----------- -----------
CURRENT ASSETS
Cash and Cash Equivalents 22,654 24,121
Short-term Investments - available-for-sale securities 30,549 42,611
Accounts Receivable from Customers 115,371 80,862
Materials & Supplies 21,890 27,930
Regulatory Assets 34,149 31,332
Special Deposits and Prepayments 26,605 34,899
Accumulated Deferred Income Tax - Net 4,201 5,875
Other 17,227 17,478
----------- -----------
272,646 265,108
----------- -----------
DEFERRED CHARGES AND OTHER ASSETS 338,095 334,550
----------- -----------
TOTAL $ 1,482,161 $ 1,460,532
=========== ===========
CAPITALIZATION and LIABILITIES
CAPITALIZATION
Common Equity (3) $ 526,565 $ 512,862
Cumulative Preferred Stock:
Not subject to mandatory redemption 21,027 21,027
Long-term Debt 370,889 337,889
----------- -----------
918,481 871,778
----------- -----------
CURRENT LIABILITIES
Current Maturities of Long-Term Debt -- 33,000
Notes Payable 43,000 13,000
Accounts Payable 33,872 41,840
Accrued Interest 2,512 5,645
Dividends Payable 8,754 8,754
Accrued Taxes Payable 7,104 --
Regulatory Liabilities 18,612 21,651
Fair Value of Derivative Instruments 209 3,582
Other 47,909 62,616
----------- -----------
161,972 190,088
----------- -----------
DEFERRED CREDITS AND OTHER LIABILITIES 260,817 258,739
----------- -----------
MINORITY INTEREST 1,373 1,481
----------- -----------
ACCUMULATED DEFERRED INCOME TAX (NET) 139,518 138,446
----------- -----------
TOTAL $ 1,482,161 $ 1,460,532
=========== ===========
(1) Unaudited
(2) Subject to explanations contained in the Annual Report on Form 10-K of the
Company to the SEC for the Year ended December 31, 2006.
(3) Shares outstanding at March 31, 2007 = 15,762,000. Shares outstanding at
Dec. 31, 2006 = 15,762,000.
CH ENERGY GROUP, INC.
EARNINGS PER SHARE BY SEGMENT
-----------------
Earnings per Share (basic) 3 Months Ended
March 31,
-----------------
2007 2006
-----------------
Central Hudson - Electric $ 0.48 $ 0.41
Central Hudson - Natural Gas $ 0.35 $ 0.40
Griffith $ 0.40 $ 0.27
Other Businesses and Investments $ 0.15 $ 0.08
-----------------
Consolidated CH Energy Group $ 1.38 $ 1.16
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Earnings per Share (diluted) $ 1.37 $ 1.16
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