Cinergy Expects 2000 Earnings to be in Line With Estimates; Significant Growth Projected for 2001.
CINCINNATI--(BUSINESS WIRE)--Dec. 21, 2000
Cinergy Corp. (NYSE:CIN) today reported that it expects earnings per share for 2000 to be in line with consensus estimates of $2.55 per share.
The company also reported that its 2001 earnings are expected to experience growth of approximately 8 percent compared with 2000, primarily as a result of growth in its energy merchant business. This 8 percent growth translates to an estimated result of $2.75 per share in 2001, approximately $.10 above current consensus estimates. In October, Cinergy announced that it was setting a target for average annual earnings growth of seven to eight percent over the next three years.
"We are seeing the results of the execution of our growth strategies with positive gains in 2000 and projected growth next year," said James E. Rogers, chairman and chief executive officer. "Our growth strategies, supported by recent acquisitions of additional generating capacity, are expected to drive estimated results of $2.75 per share in 2001."
The company's non-regulated energy marketing affiliate, Cinergy Capital & Trading, Inc., recently agreed to acquire about 1,000 megawatts of peaking capacity in the Southeast from Enron North America with the transaction expected to close in the spring of 2001. Last year, CC&T formed a joint venture with Duke Energy North America for about 640 megawatts of Midwest peaking capacity, which went into service in the summer of 2000.
Cinergy Corp. is one of the nation's leading diversified energy companies, with a total enterprise value of $8.5 billion and assets of $10 billion. Cinergy owns or operates nearly 20,000 megawatts of electrical and combined heat plant generation that is either operational or under development domestically and internationally. It also has 55,000 miles of electric and gas transmission lines in the United States and abroad and approximately 9,000 employees in nine countries. Its largest operating companies, The Cincinnati Gas & Electric Company and PSI Energy, Inc., serve more than 1.4 million electric customers and 478,000 gas customers in Indiana, Ohio and Kentucky.
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 transmission assets give it access to 37 percent of the total U.S. energy consumption. In 1998, the New York Mercantile Exchange selected Cinergy to be its transmission hub for Midwest electricity futures trading, which has become the most active hub in the United States.
Statements made in this release that convey the company's or management's intentions, expectations or predictions of the future are forward-looking statements. 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.
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|Date:||Dec 21, 2000|
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