Cinergy Reports Increased Second Quarter Earnings; Completes Ohio Transition Agreement, 30 New Transactions.Business Editors CINCINNATI--(BUSINESS WIRE)--July 27, 2000 Cinergy Cinergy Corp. was an energy company based in Cincinnati, Ohio. Cinergy was created on October 24, 1994, from the merger of the Cincinnati Gas & Electric Company (CG&E) with PSI Energy and later included Union Light, Heat & Power (ULH&P) as well. Corp. (NYSE NYSE See: New York Stock Exchange :CIN CIN cervical intraepithelial neoplasia. Cervical intraepithelial neoplasia (CIN) A term used to categorize degrees of dysplasia arising in the epithelium, or outer layer, of the cervix. ) announced today earnings for the second quarter 2000 of $0.47 per share on a diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis, a 27 percent increase over 1999 second quarter earnings of $0.37 per share. The increase reflects primarily improved results in the commodities supply business, including marketing and trading, and is after a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charge of $11 million, or $.04 per share, for a limited early retirement program implemented in the second quarter. In the second quarter, the company reached agreement with the staff of the Public Utilities Commission of Ohio The Public Utilities Commission of Ohio (PUCO) is an agency of Federal State of Ohio that is charged with the regulation of utility service providers such as those of electricity, natural gas, and telecommunications as well as railroad safety and intrastate hazardous and other intervening in·ter·vene intr.v. in·ter·vened, in·ter·ven·ing, in·ter·venes 1. To come, appear, or lie between two things: You can't see the lake from there because the house intervenes. 2. parties on a plan to implement customer choice in The Cincinnati Cincinnati (sĭnsənăt`ē, –năt`ə), city (1990 pop. 364,040), seat of Hamilton co., extreme SW Ohio, on the Ohio River opposite Newport and Covington, Ky.; inc. as a city 1819. Gas & Electric Co.'s Ohio service area. The agreement, which is pending approval by the PUCO PUCO Public Utilities Commission of Ohio (Columbus, Ohio) PUCO Pacific University College of Optometry (Forest Grove, Oregon) , provides for a regulatory transition charge designed to recover CG&E's regulatory assets and other transition costs over a ten-year period. The agreement also grants authority for CG&E to transfer its generation assets to a separate, non-regulated corporate subsidiary to provide flexibility in managing its generation asset portfolio. Cinergy also completed 30 new transactions during the second quarter, including investments in two e-business (Electronic-BUSINESS) Doing business online. The term is often used synonymously with e-commerce, but e-business is more of an umbrella term for having a presence on the Web. technology companies and additional renewable energy Renewable energy utilizes natural resources such as sunlight, wind, tides and geothermal heat, which are naturally replenished. Renewable energy technologies range from solar power, wind power, and hydroelectricity to biomass and biofuels for transportation. resources, as well as energy service agreements totaling nearly $20 million in revenue. "In the first half of 2000, we have completed as many transactions as in all of 1999, demonstrating our continued progression to a transaction-based organization and away from primarily an asset-based organization," said James James, person in the Bible James, in the Gospel of St. Luke, kinsman of St. Jude. The original does not specify the relationship. James, rivers, United States James. E. Rogers, vice chairman, president and chief executive officer of Cinergy. "We are focusing our activities on acquiring new customers, assets and operations outside of the traditional regulated business. We view technology as an integral part of our strategy." As part of its technology initiative, Cinergy made equity investments in the Convergent Group and Mainstreet MainStreet was a department store chain based in Chicago, Illinois, United States. Operating for only five years, the chain's stores were located in the states of Illinois, Michigan, and Minnesota. Networks, which are both in the forefront of the e-business sector for the energy industry. Convergent Group and Cinergy will co-develop and implement a multi-tiered customer service program, called DigitalUtilitySM, through which Cinergy will use the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the to compete more effectively in the changing marketplace for energy. Mainstreet supplies on-premise systems, applications and services linking energy companies directly to their customers. As the largest investment partner in the venture capital firm, Nth Power, the value of Cinergy's technology portfolio was increased by the highly successful initial public offering of Capstone Turbine Capstone Turbine Corporation NASDAQ: CPST, incorporated in 1988, is a California based gas turbine manufacturer that specializes in microturbine power and heat cogeneration systems. Capstone has sold and shipped more than 3,000 of these one-moving-part systems worldwide. Corporation, which saw its initial price of $16 nearly triple in the first day of trading. Capstone manufactures a MicroTurbine(TM) electric generator generator, in electricity, machine used to change mechanical energy into electrical energy. It operates on the principle of electromagnetic induction, discovered (1831) by Michael Faraday. which uses advanced technology and is used in distributed generation Distributed generation generates electricity from many small energy sources. It has also been called also called on-site generation, dispersed generation, embedded generation, decentralized generation, decentralized energy or applications. Cinergy is currently demonstrating the new turbine turbine, rotary engine that uses a continuous stream of fluid (gas or liquid) to turn a shaft that can drive machinery. A water, or hydraulic, turbine is used to drive electric generators in hydroelectric power stations. technology at the Woodsdale Generating Station. The international business unit continues to add to its portfolio of renewable energy investments with involvement in two new Spanish Spanish, river, c.150 mi (240 km) long, issuing from Spanish Lake, S Ont., Canada, NW of Sudbury, and flowing generally S through Biskotasi and Agnew lakes to Lake Huron opposite Manitoulin island. There are several hydroelectric stations on the river. wind projects and a biomass facility in Spain Spain, Span. España (āspä`nyä), officially Kingdom of Spain, constitutional monarchy (2005 est. pop. 40,341,000), 194,884 sq mi (504,750 sq km), including the Balearic and Canary islands, SW Europe. . Cinergy now has ownership in about 170 megawatts of wind energy in the U.S. and Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). , making it one
of the largest international owners of renewable energy capacity with a
total portfolio of about 200 megawatts. Other second quarter
international investments include an independent power production
facility in Kenya Kenya (kĕn`yə, kēn`–), officially Republic of Kenya, republic (2005 est. pop. 33,830,000), 224,960 sq mi (582,646 sq km), E Africa. and acquisition of a U.K. electricity supplier
specializing in industrial and commercial customers.Cinergy Investments' portfolio businesses completed 23 second quarter transactions. Included were: -- Four agreements by Cinergy Solutions for district cooling and other services -- Nine contracts by EPCOM which provides engineering, procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. , construction, operations and maintenance for customer owned energy distribution systems -- Nine infrastructure renewal and energy management contracts by VESTAR -- One agreement for telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. systems by Cinergy Telecommunication telecommunication Communication between parties at a distance from one another. Modern telecommunication systems—capable of transmitting telephone, fax, data, radio, or television signals—can transmit large volumes of information over long distances. Networks "We have also directed our attention toward preparation for the summer peak electric demands, making investments of about $47 million in our generation, transmission and distribution systems for summer availability," said Rogers. "We have worked with about 350 large volume customers on an innovative program called PowerShare Earlier software from Apple that resided in a Macintosh server and provided messaging store and forward, authentication of network users, encryption of messages and other workgroup/enterprise services. See PowerTalk. (TM), which allows us to buy back megawatts from these customers at times of heavy demand." Two natural gas-fired gas-fired adj → de gas gas-fired adj → au gaz gas-fired adj (heater etc) → Gas- peaking stations owned jointly by Cinergy Capital & Trading, Inc. and Duke Energy North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , and operated by Cinergy, were placed into service in the second quarter. Each company owns 50 percent of the 1,280 megawatts of generating capability from the new stations, which will bolster This article is about the pillow called a bolster. For other meanings of the word "bolster", see bolster (disambiguation). A bolster (etymology: Middle English, derived from Old English, and before that the Germanic word bulgstraz supplies in the regional electric market. Net income for the second quarter 2000 was $75.1 million, up from $59.1 million in the second quarter a year ago. For the six months ended June June: see month. 30, 2000, net income was $213.6 million, or $1.34 per share, up 14.5 percent when compared with net income of $186.3 million, or $1.17 per share for the comparable period in 1999. Earnings from regulated operations, including the commodities supply business, increased $0.13 per share in the second quarter 2000 compared with a year earlier. The improved results are attributable to growth in margins of the company's regulated businesses and an increase in electricity trading volumes Trading volume The number of shares transacted every day. As there is a seller for every buyer, one can think of the trading volume as half of the number of shares transacted. That is, if A sells 100 shares to B, the volume is 100 shares. of about 55 percent for the second quarter and the first six months over the prior year. Contributions from non-regulated investment activities decreased $0.03 per share, primarily reflecting the loss of earnings from the company's share in Midlands Electricity The Midlands Electricity Board was formed in 1947, under the Electricity Act of that year. The counterpart of the East Midlands board, it served southern, and western parts of Warwickshire, as well as the counties of Worcestershire, Herefordshire, Shropshire, and Staffordshire, as plc which was sold in the third quarter of 1999. Cinergy Corp. is one of the nation's leading diversified diversified (di·verˑ·s energy companies, with a total capitalization Total capitalization The total long-term debt and all types of equity of a company that constitutes its capital structure. total capitalization See capitalization. of $7.4 billion and assets of $10 billion. Cinergy owns or operates more than 16,500 megawatts of electrical and combined heat plant generation that is either operational or under development. It also has 55,000 miles of electric and gas transmission lines in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and abroad and approximately 9,000 employees in nine countries. Its largest operating companies operating company A business that engages in transactions with outsiders. , The Cincinnati Gas & Electric Company and PSI Energy, Inc., serve more than 1.4 million electric customers and 478,000 gas customers in Indiana Indiana, state, United States Indiana, midwestern state in the N central United States. It is bordered by Lake Michigan and the state of Michigan (N), Ohio (E), Kentucky, across the Ohio R. (S), and Illinois (W). , Ohio and Kentucky Kentucky, state, United States Kentucky (kəntŭk`ē, kĭn–), one of the so-called border states of the S central United States. It is bordered by West Virginia and Virginia (E); Tennessee (S); the Mississippi R. . Cinergy is active in U.S. power and natural gas markets and maintains a 24-hour-a-day, seven-day-a-week trading operation. The interconnections of Cinergy's Midwestern Mid·west or Middle West A region of the north-central United States around the Great Lakes and the upper Mississippi Valley. It is generally considered to include Ohio, Indiana, Illinois, Michigan, Wisconsin, Minnesota, Iowa, Missouri, Kansas, and transmission assets give it access to 37 percent of the total U.S. energy consumption. In 1998 the New York Mercantile Exchange New York Mercantile Exchange (NYMEX) The world's largest physical commodity futures exchange. selected Cinergy to be its transmission hub for Midwest electricity futures trading, which has become the most active hub A central connecting device in a network that regenerates signals on the output side to keep the signal strong. Also called a "multiport repeater." Contrast with passive hub and intelligent hub. See hub. in the United States. In addition to its U.S. operations, Cinergy owns and operates power generation, transmission and distribution assets in the Czech Republic Czech Republic, Czech Česká Republika (2005 est. pop. 10,241,000), republic, 29,677 sq mi (78,864 sq km), central Europe. It is bordered by Slovakia on the east, Austria on the south, Germany on the west, and Poland on the north. , Spain, the United Kingdom, Zambia, and Estonia. Cinergy is also active in European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. gas and electricity markets. Statements made in this release that convey the company's or management's intentions, expectations or predictions of the future are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . The company's actual results could differ materially from those projected in the forward-looking statements, and there can be no assurance that estimates of future results will be achieved. Please refer to the company's SEC filings for additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements.
CINERGY CORP.
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
For the Periods Ended June 30, 2000
(unaudited)
(in thousands, except per share amounts)
----------------------------------------------------------------------
Quarter Ended Year To Date
------------------------ -------------------
2000 1999 2000 1999
---------- ---------- ---------- ----------
Operating Revenues
Electric $1,250,353 $ 942,093 $2,317,050 $1,910,625
Gas 491,627 328,667 990,355 749,975
Other 27,534 4,639 45,186 17,078
---------- --------- ---------- ----------
1,769,514 1,275,399 3,352,591 2,677,678
Operating Expenses
Fuel used in electric
production 206,259 185,639 392,350 383,867
Gas purchased 449,806 293,513 855,951 627,915
Purchased and exchanged
power 494,293 265,427 808,980 500,368
Other operation 229,740 171,528 423,867 366,105
Maintenance 60,340 64,904 111,636 114,875
Depreciation 85,807 80,563 168,438 159,402
Amortization of phase-in
deferrals 6,414 6,548 12,827 13,095
Amortization of post-in-
service deferred
operating expenses 1,090 1,090 2,181 2,181
Taxes other than income
taxes 68,458 69,077 134,589 138,611
---------- --------- ---------- ----------
1,602,207 1,138,289 2,910,819 2,306,419
Operating Income 167,307 137,110 441,772 371,259
Other Income and
(Expenses) - Net
Allowance for equity
funds used during
construction 2,198 504 3,100 1,279
Phase-in deferred return 1,040 1,464 2,080 2,928
Equity in earnings of
unconsolidated
subsidiaries 4,333 13,022 6,175 57,704
Other - net (621) (1,776) (5,066) (15,901)
---------- --------- ---------- ----------
6,950 13,214 6,289 46,010
Interest and Other Charges
Interest on long-term
debt 51,804 51,771 104,208 101,848
Other interest 3,042 10,419 4,222 23,067
Allowance for borrowed
funds used during
construction (1,733) (1,409) (3,887) (3,362)
Preferred dividend
requirements of
subsidiaries 1,275 1,365 2,638 2,729
---------- --------- ---------- ----------
54,388 62,146 107,181 124,282
Income Before Taxes 119,869 88,178 340,880 292,987
Income Taxes 44,754 29,120 127,326 106,684
---------- --------- ---------- ----------
Net Income $ 75,115 $ 59,058 $ 213,554 $ 186,303
Other comprehensive
income, net of tax 5,196 (1,086) 4,425 (9,552)
---------- --------- ---------- ----------
Comprehensive Income $ 80,311 $ 57,972 $ 217,979 $ 176,751
Average Common Shares
Outstanding 158,923 158,877 158,923 158,812
Earnings Per Common
Share
Net Income $ 0.47 $ 0.37 $ 1.34 $ 1.17
Earnings Per Common
Share - Assuming
Dilution
Net Income $ 0.47 $ 0.37 $ 1.34 $ 1.17
Dividends Declared Per
Common Share $ 0.45 $ 0.45 $ 0.90 $ 0.90
CINERGY CORP.
SELECTED OPERATING STATISTICS
For the Period Ended June 30, 2000
(In thousands, except where noted)
----------------------------------------------------------------------
Quarter Ended
---------------
% Increase
2000 1999 /(Decrease)
------ ------ -------------
Operating Revenues
Residential $ 281,363 $ 266,331 5.6
Commercial 202,667 191,115 6.0
Industrial 186,976 179,673 4.1
Other retail 27,524 27,561 (0.1)
Firm power sales 46,071 39,119 17.8
Non-firm power sales 509,174 245,958 107.0
All other 22,718 25,896 (12.3)
----------- ----------- -----------
Total regulated revenues 1,276,493 975,653 30.8
Non-regulated revenues 493,021 299,746 64.5
----------- ----------- -----------
Total revenues $ 1,769,514 $ 1,275,399 38.7
KWH Sales
Residential 3,341,423 3,236,799 3.2
Commercial 3,300,140 3,132,652 5.3
Industrial 4,901,412 4,700,943 4.3
Other retail 437,037 450,482 (3.0)
Firm power sales 1,566,522 1,480,935 5.8
Non-firm power sales 14,199,080 9,171,036 54.8
----------- ----------- -----------
Total regulated sales 27,745,614 22,172,847 25.1
Non-regulated sales 216,027 185,362 16.5
----------- ----------- -----------
Total sales 27,961,641 22,358,209 25.1
MCF Sales
Residential 4,141 3,797 9.1
Commercial 1,834 1,656 10.7
Industrial 342 478 (28.5)
Other retail 317 273 16.1
All other 39 39 -
----------- ----------- -----------
Total regulated sales 6,673 6,243 6.9
Gas transportation 8,580 9,164 (6.4)
----------- ----------- -----------
Total regulated sales
and transportion 15,253 15,407 (1.0)
Non-regulated sales 124,599 125,748 (0.9)
----------- ----------- -----------
Total sales 139,852 141,155 (0.9)
Customers (end of period)
Electric
Gas
KWH
Generated - net 15,062,168 14,481,705 4.0
Purchased and exchanged
power 14,101,889 8,316,891 69.6
----------- ----------- -----------
Total 29,164,057 22,798,596 27.9
Losses and company use 1,418,443 625,749 126.7
----------- ----------- -----------
Total regulated sales 27,745,614 22,172,847 25.1
Fuel Cost Per Million
Btu (Consumed) $1.21 $1.25 (3.2)
MCF
Natural gas purchased 6,371 5,404 17.9
Transportation received 9,004 7,462 20.7
Produced - (1) 100.0
----------- ----------- -----------
Total 15,375 12,865 19.5
Gas transportation 8,580 9,164 (6.4)
Losses and company use 122 (2,542) 104.8
----------- ----------- -----------
Total regulated sales 6,673 6,243 6.9
Cost per MCF
Purchased (cents) 369.58 268.19 37.8
CINERGY CORP.
SELECTED OPERATING STATISTICS
For the Period Ended June 30, 2000
(In thousands, except where noted)
----------------------------------------------------------------------
Year to Date
--------------
% Increase
2000 1999 /(Decrease)
------ ------ -------------
Operating Revenues
Residential $ 648,474 $ 653,929 (0.8)
Commercial 424,690 408,747 3.9
Industrial 369,748 356,590 3.7
Other retail 59,580 63,838 (6.7)
Firm power sales 78,850 80,899 (2.5)
Non-firm power sales 860,290 470,257 82.9
All other 57,994 55,948 3.7
----------- ----------- -----------
Total regulated revenues 2,499,626 2,090,208 19.6
Non-regulated revenues 852,965 587,470 45.2
----------- ----------- -----------
Total revenues $ 3,352,591 $ 2,677,678 25.2
KWH Sales
Residential 7,340,515 7,723,704 (5.0)
Commercial 6,430,963 6,147,980 4.6
Industrial 9,556,072 9,029,569 5.8
Other retail 884,977 894,993 (1.1)
Firm power sales 2,729,880 2,923,967 (6.6)
Non-firm power sales 28,766,412 18,421,878 56.2
----------- ----------- -----------
Total regulated sales 55,708,819 45,142,091 23.4
Non-regulated sales 437,887 357,721 22.4
----------- ----------- -----------
Total sales 56,146,706 45,499,812 23.4
MCF Sales
Residential 20,515 19,715 4.1
Commercial 8,416 9,217 (8.7)
Industrial 1,387 1,687 (17.8)
Other retail 1,280 1,141 12.2
All other 230 194 18.6
----------- ----------- -----------
Total regulated sales 31,828 31,954 (0.4)
Gas transportation 23,266 22,633 2.8
----------- ----------- -----------
Total regulated sales
and transportion 55,094 54,587 0.9
Non-regulated sales 250,943 273,531 (8.3)
----------- ----------- -----------
Total sales 306,037 328,118 (6.7)
Customers (end of period)
Electric 1,475,232 1,445,725 2.0
Gas 481,798 470,903 2.3
KWH
Generated - net 30,583,092 29,106,388 5.1
Purchased and exchanged
power 27,454,429 17,353,543 58.2
----------- ----------- -----------
Total 58,037,521 46,459,931 24.9
Losses and company use 2,328,702 1,317,840 76.7
----------- ----------- -----------
Total regulated sales 55,708,819 45,142,091 23.4
Fuel Cost Per Million
Btu (Consumed) $1.22 $1.25 (2.4)
MCF
Natural gas purchased 33,600 35,304 (4.8)
Transportation received 20,038 19,965 0.4
Produced 105 41 156.1
----------- ----------- -----------
Total 53,743 55,310 (2.8)
Gas transportation 23,266 22,633 2.8
Losses and company use (1,351) 723 (286.9)
----------- ----------- -----------
Total regulated sales 31,828 31,954 (0.4)
Cost per MCF
Purchased (cents) 286.87 225.81 27.0
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion