Energy East Corporation Announces First Quarter 2008 Financial Results

PORTLAND, Maine, May 1  /PRNewswire-FirstCall/ -- Energy East Corporation (NYSE:EAS) today announced its first quarter financial results. Earnings per basic share for the first quarter 2008 were 84 cents compared to 90 cents per share earned in the first quarter 2007.

For the 12 months ended March 31, 2008, earnings per basic share were $1.59 per share compared with $1.77 per share for the 12 months ended March 31, 2007.

Earnings per basic share for the first quarter of 2008 were 6 cents lower than first quarter 2007 earnings of 90 cents per share. The major factors affecting first quarter earnings include:

  -- A reduction of 8 cents per share due to lower electric margins, and
  -- Higher average common shares outstanding, which reduced earnings per
     share 5 cents.



Those decreases were partially offset by increases in earnings per share of:

  -- 3 cents due to higher gas margins, and
  -- 4 cents resulting from a lower estimated annualized effective income
     tax rate for 2008.



Unaudited Consolidated Statements of Income and Energy Distribution and Weather Statistics are presented on the following pages.

In addition, today Energy East filed its Form 10-Q with the Securities and Exchange Commission. The document contains additional details regarding first quarter 2008 financial results and is available on Energy East's website: http://www.energyeast.com/. Shareholders may obtain a free copy of our Form 10-Q by contacting Investor Relations at [phone].

About Energy East:

Energy East is a respected super-regional energy services and delivery company serving about 3 million customers throughout upstate New York and New England. By providing outstanding customer service and meeting customers' energy requirements in an environmentally friendly manner, Energy East will continue to be a valuable asset to the communities we serve.

                         Energy East Corporation
                    Consolidated Statements of Income


                                   Three Months           Twelve Months
  Period Ended March 31,         2008        2007        2008        2007

  (Thousands, except per
   share amounts)
  Operating Revenues
    Utility                  $1,511,663  $1,564,064  $4,600,382  $4,741,554
    Other                       154,987     149,674     530,638     506,295
      Total Operating
       Revenues               1,666,650   1,713,738   5,131,020   5,247,849

  Operating Expenses
    Electricity purchased
     and fuel used in
     generation
      Utility                   338,894     385,273   1,394,622   1,475,001
      Other                      92,928      88,853     367,867     352,864
    Natural gas purchased
      Utility                   546,883     538,506   1,124,469   1,108,717
      Other                      41,344      42,375      89,387      78,073
    Other operating expenses    190,529     193,723     839,802     803,967
    Maintenance                  40,875      40,818     175,674     206,853
    Depreciation and
     amortization                68,502      68,799     277,193     281,963
    Other taxes                  78,174      75,713     258,142     251,682
      Total Operating
       Expenses               1,398,129   1,434,060   4,527,156   4,559,120

  Operating Income              268,521     279,678     603,864     688,729
  Other (Income)                 (6,889)     (8,955)    (36,818)    (44,681)
  Other Deductions                1,006       3,231       9,257      23,792
  Interest Charges, Net          68,736      68,401     276,274     298,505
  Preferred Stock Dividends
   of Subsidiaries                  282         282       1,128       1,129
  Income Before Income Taxes    205,386     216,719     354,023     409,984
  Income Taxes                   73,431      83,425     104,064     150,099
  Net Income                   $131,955    $133,294    $249,959    $259,885
  Earnings per Share, basic        $.84        $.90       $1.59       $1.77
  Earnings per Share, diluted      $.83        $.90       $1.58       $1.76
  Dividends Declared per Share     $.31        $.30       $1.22       $1.18
  Average Common Shares
   Outstanding, basic           157,090     147,517     157,161     147,082
  Average Common Shares
   Outstanding, diluted         158,251     148,406     158,233     147,896



                         Energy East Corporation
                      Energy Distribution Statistics

                                   Three Months            Twelve Months
                                                %                        %
  Periods Ended March 31,      2008     2007  change   2008     2007  change

  Electricity (thousands of
   megawatt-hours)
    Residential               3,381    3,427   (1)%   12,393   12,252    1%
    Commercial                2,434    2,461   (1)%   10,009    9,852    2%
    Industrial                1,722    1,596    8%     7,425    6,963    7%
    Other                       615      598    3%     2,317    2,295    1%
     Total retail             8,152    8,082    1%    32,144   31,362    2%
    Wholesale                 1,310    1,935  (32)%    6,617    8,749  (24)%
     Total                    9,462   10,017   (6)%   38,761   40,111   (3)%

  Natural Gas (thousands
   of dekatherms)
    Residential              36,332   38,688   (6)%   75,705    75,489   -
    Commercial               11,920   12,416   (4)%   25,190    25,182   -
    Industrial                1,496    1,537   (3)%    3,551     3,568   -
    Other                     4,084    4,396   (7)%   13,027    13,780  (5)%
    Transportation of
     customer-owned gas      28,086   26,484    6 %   79,273    78,193   1%
      Total retail           81,918   83,521   (2)%  196,746   196,212   -
    Wholesale                   556      351   58%     1,958       416  NM
      Total                  82,474   83,872   (2)%  198,704   196,628   1%

  NM = Not meaningful



                         Energy East Corporation
                            Weather Statistics


  Three months ended March 31,          2008     2007     Normal

  New York
  Heating degree days                  3,287     3,350     3,411
   (Warmer) than prior year             (2%)
   (Warmer) than normal                 (4%)

  New England
  Heating degree days                  3,033     3,176     3,175
   (Warmer) than prior year             (5%)
   (Warmer) than normal                 (5%)


DATASOURCE: Energy East Corporation



CONTACT:  Energy East Corporation, Investor Relations, [phone]



Web site:  http://www.energyeast.com/ 

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