Cap Rock Energy Reports Earnings for 2004

Cap Rock Energy Reports Earnings for 2004 


MIDLAND, Texas, March 30  /PRNewswire-FirstCall/ -- Cap Rock Energy Corporation
(AMEX:RKE) today reported net income of $5.433 million for the year ended
December 31, 2004, or $3.40 earnings per common share, diluted, compared to
$11.198 million, or $7.41 per common share, diluted, for the year ended
December 31, 2003.

The Company's decrease in net income was primarily attributable to the
establishment of a regulatory liability relating to power costs to be refunded
to customers, and the granting of noncash stock awards.

Total revenues decreased $0.2 million even though there was an increase in
power cost recovery billed to customers of $2.7 million and an increase in
wholesale and kWh sales of $0.8 million.  Offsetting these increases in revenue
was a nonrecurring change in accounting principle of $3.8 million in 2003
revenue.

In 2004, higher operating expenses of $10.5 million were due mainly to
recognizing $3.1 million in higher fuel cost related to the establishment of
the regulatory liability, a $2.8 million increase in noncash stock award and
increased IT support and outsourced IT costs of $1.6 million.  Additionally,
income tax expense decreased by $4.3 million because of the utilization of net
operating loss carry backs, reduction of valuation allowances and effective tax
rates.

Detailed below are financial highlights for Cap Rock Energy for the years ended
2004 and 2003:

                                                  Year ended December 31,
  (in thousands, except share and per
   share data)                                     2004              2003

  Operating revenues                             $82,624           $82,844
  Operating income                               $10,219           $20,969
  Net income                                      $5,433           $11,198
  Earnings per share:
     Basic                                         $3.51             $7.69
     Diluted                                       $3.40             $7.41
  Weighted average number of common
   shares outstanding:
     Basic                                     1,546,271         1,455,443
     Diluted                                   1,596,796         1,510,741
  Total assets                                  $199,687          $202,989
  Total debt                                    $144,037          $162,195
  Equity                                         $35,352           $26,973



Cap Rock Energy provides electric distribution services to approximately 35,000
meters in 28 counties in Texas.  Its corporate office is located in Midland,
Texas, with service divisions in Stanton, Colorado City, Brady and Celeste,
Texas.  The Company also provides management services to the Farmersville
Municipal Electric System.  The Company's predecessor, Cap Rock Electric
Cooperative, Inc., was incorporated as an electric cooperative in the State of
Texas in 1939.

All statements, other than statements of historical fact included in this news
release, are forward looking statements as that term is defined in the Private
Securities Litigation Reform Act of 1995.  This statement should be read in
conjunction with all other filings made with the Securities and Exchange
Commission.  Any such forward looking statements involve risks and
uncertainties and actual results, performance or achievements of Cap Rock
Energy may be different from those expressed or implied in the forward looking
statements. 

DATASOURCE: Cap Rock Energy Corporation



CONTACT:  Lee Atkins, Senior Vice-President and Chief Financial Officer

of Cap Rock Energy Corporation, [phone], or

 

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