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Dominion News Releases
April 20, 2001
Dominion Posts 15 Percent Increase in First-Quarter
Operating Earnings to $1.20 Per Share
RICHMOND, Va. – Dominion (NYSE: D) today announced
unaudited consolidated operating earnings for the first quarter ended March
31, 2001 of $299 million ($1.20 per share), up from operating earnings of $233
million ($1.04 per share) for the same period in 2000.
Other financial highlights for the first quarter include:
- a 52 percent increase in revenues to $3.2 billion in 2001
from $2.1 billion in 2000.
- a 17 percent increase in cash operating earnings per share,
excluding goodwill expense, to $1.29 per share from $1.10 per share.
Thos. E. Capps, chairman, president and chief executive officer,
said:
“We are very pleased with the continued strong financial
performance of all of our core operating units. We grew first-quarter operating
earnings more than 15 percent, and we are on track to meet or exceed our full-year
earnings target of $4.10 per share and then grow earnings 10 percent or higher
annually through at least 2003.
“Also gratifying is our substantial increase in cash earnings
– earnings before non-cash goodwill charges related to last year’s merger with
Consolidated Natural Gas. Cash earnings are important because we use cash to
pay dividends and reinvest in the company to improve customer service, fuel
earnings growth, and build shareholder value.”
First-quarter 2001 operating earnings exclude an after-tax
charge of $136 million (55 cents per share) related to the buyout of power purchase
contracts and non-utility generating plants previously serving the company under
long-term contracts.
First-quarter 2000 operating earnings exclude a one-time
after-tax gain of $21 million (10 cents per share) from the cumulative effect
of pension accounting changes, and restructuring and merger-related after-tax
charges of $86 million (39 cents per share).
Earnings Breakdown by Operating Segment
Dominion Energy, the company’s electric generation and gas
pipeline business segment, contributed $160 million (64 cents per share) to
first-quarter 2001 operating earnings, up from $116 million (52 cents per share)
in the first quarter of 2000. The increase in Dominion Energy’s first-quarter
2001 earnings is primarily attributable to the addition of Consolidated Natural
Gas’s pipeline operations for the full quarter, strong customer growth and colder
weather in the company’s electric service area, and a higher contribution from
the company’s power marketing operations, partially offset by higher taxes and
other expenses.
Dominion Delivery, the company’s electric and gas distribution
and customer service segment, contributed $157 million (63 cents per share)
to first-quarter operating earnings, up from $116 million (52 cents per share)
in the first quarter of 2000. The increase is primarily attributable to the
addition of CNG’s distribution operations for the full quarter, colder weather
in the company’s electric and gas service areas, and lower service restoration
costs.
Dominion Exploration & Production, the company’s gas and
oil exploration and production unit, earned $71 million (29 cents per share)
in the first quarter of 2001, up from $46 million (20 cents per share) in the
prior-year period. The increase is primarily attributable to the addition of
CNG Producing Company operations for the full quarter and higher natural gas
and oil commodity prices, partially offset by higher operating expenses.
Dominion Capital, the company’s financial services subsidiary,
earned $2 million (1 cent per share) in the first quarter of 2001, compared
to $3 million (1 cent per share) in the prior-year period. Dominion has agreed
to divest Dominion Capital pursuant to regulatory requirements that were part
of its January 2000 merger with CNG.
Legal Entity Results
While Dominion has restructured its daily operations as described
above, assets remain wholly owned by its legal subsidiaries, including Virginia
Power, Consolidated Natural Gas and Dominion Energy, pending full implementation
of electric and gas deregulation in the company’s service areas.
First-quarter 2001 operating earnings for Virginia Power,
the company’s electric utility, were 62 cents per share, compared to 59 cents
per share in the first quarter of 2000.
First-quarter 2001 operating earnings for Consolidated Natural
Gas, the company’s gas utility, were 72 cents per share, compared to 53 cents
per share in the first quarter of 2000. First-quarter 2000 earnings for CNG
reflect operations since its merger with Dominion on January 28.
Dominion Energy, the company’s independent power and natural
gas subsidiary, earned 15 cents per share, compared to 9 cents per share last
year.
Conference Call for Investors
Dominion will host a conference call at 3 p.m. EDT today
discussing first-quarter earnings. Domestic investors who wish to participate
should call 800-967-7134. International investors should call 719-457-2625.
The confirmation number required to join the call is 759393. A simultaneous
web cast of the call will be available on Dominion’s investor web pages (www.dom.com/investors),
or at www.streetfusion.com.
Detailed first-quarter financial statements and operating
statistics will also be posted on the investor pages of the company’s web site
immediately following the conference call.
A tape recording of the conference call will be available
beginning at approximately 6 p.m., EDT, April 20 through 11 p.m., April 24.
Domestic investors may access the recording by dialing 888-203-1112.
International callers should dial 719-457-0820 to access the recording.
The access code for the tape-recorded replay is also 759393. A replay
of the conference call also will be available on Dominion’s investor information
home pages by the end of the day on April 20.
Dominion is one of the nation’s largest producers of energy,
with a production capability of 2.7 trillion British Thermal Units (BTUs) of
energy per day. The company has a power generation portfolio of more than 21,000
megawatts, which is expected to grow to approximately 28,000 megawatts by 2005.
Dominion is also one of the largest independent oil and natural gas exploration
and production companies in North America, with 2.8 trillion cubic feet equivalent
of natural gas reserves, with an annual production capability of over 300 billion
cubic feet equivalent of natural gas. The company has 7,600 miles of interstate
natural gas pipeline with a delivery capability of 6.3 billion cubic feet per
day.
In addition, the company operates the nation’s largest underground
natural gas storage system, with more than 950 billion cubic feet of storage
capacity. Dominion also serves 3.8 million retail natural gas and electric customers,
and owns a managing equity interest in Dominion Fiber Ventures LLC, owner of
Dominion Telecom. Dominion Telecom is expanding its fiber-optic network from
its current 35,000 fiber miles (3,600 route miles) to more than 800,000 planned
fiber miles (9,000 route miles). For more information about Dominion, visit
the company's website at www.dom.com.
This release contains forward-looking statements that
are subject to various risks and uncertainties. Discussion of factors that could
cause actual results to differ materially from management’s projections, forecasts,
estimates and expectations may include factors that are beyond the company’s
ability to control or estimate precisely, such as estimates of future market
conditions and the behavior of other market participants. Other factors include,
but are not limited to, weather conditions, economic conditions in the company’s
service area, fluctuations in energy-related commodity prices, risks associated
with successfully executing the telecommunications business plan and other uncertainties.
Other risk factors are detailed from time to time in the company’s Securities
& Exchange Commission filings.
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