DTE Energy Company (ticker: DTE, exchange: New York Stock Exchange (.N))
News Release -
15-Feb-2000
MCN Energy Group Inc. Reports Fourth Quarter, Full-Year 1999 Results
DETROIT, Feb. 15 /PRNewswire/ -- MCN Energy Group Inc. (NYSE: MCN) today
reported fourth-quarter 1999 earnings of $34.8 million, or $.40 per share,
excluding unusual items, compared with the prior-year period's $24.0 million,
or $.30 per share. The fourth-quarter results bring 1999 earnings to
$93.0 million, or $1.11 per share, compared with 1998 earnings of
$103.1 million, or $1.31 per share, excluding unusual items in both periods.
Unusual items in the 1999 fourth quarter, net of taxes, included losses
from property sales and other items totaling $11.1 million, as well as costs
of $22.7 million related to the company's planned merger with DTE Energy Co.
(NYSE: DTE). Including these unusual items, MCN reported 1999 fourth-quarter
net income of $1.0 million, or $.01 per share, compared with the prior-year
period's $24.0 million, or $.30 per share. For the full-year periods, unusual
items totaled $123.8 million in 1999 and $389.6 million in 1998, net of taxes.
Including these unusual items, MCN reported a net loss for 1999 of
$30.8 million, or $.37 per share, compared with a net loss of $286.5 million,
or $3.63 per share, in 1998.
MCN Energy Group Chairman and CEO Alfred R. Glancy III said that,
excluding unusual items, the company met its previously announced $1.10 to
$1.15 earnings per share goal in 1999 despite significantly warmer-than-normal
weather in the fourth quarter.
"On balance, we ended 1999 on a positive note," Glancy said. "Our Gas
Distribution segment continued its excellent performance, while the Pipelines
& Processing, Electric Power and E&P segments all met or exceeded our fourth-
quarter expectations. Energy Marketing continued to struggle in a difficult
industry environment, weighed down by high gas transportation and storage
expenses. Factoring in the weather's impact, our 1999 results show we are
making progress under the new strategic direction announced in August."
1999 SEGMENT RESULTS
Gas Distribution reported operating and joint venture income of
$240.8 million in 1999, up 31 percent excluding unusual items posted in both
periods. The increase is attributable to MichCon's new gas sales program,
which took effect Jan. 1, 1999, as well as the benefits of comparatively
colder weather. Although 1999 was 9 percent warmer than normal, it was
10 percent colder than 1998.
Pipelines & Processing had operating and joint venture income of
$19.2 million in 1999, down $2.2 million from the previous year, excluding
unusual charges in 1998, as difficult industry conditions offset contributions
from new and expanded projects.
Electric Power reported operating and joint venture income of
$22.9 million in 1999, down $3.1 million primarily due to the sale of project
interests that contributed significantly to joint venture income in 1998.
These results exclude unusual charges in both periods.
Energy Marketing had a 1999 operating and joint venture loss of
$11.4 million, compared with a loss of $3.6 million in the prior year. The
increased loss is primarily attributable to higher transportation and storage
costs.
Exploration & Production had 1999 operating income of $14.7 million
compared with $29.0 million in 1998, excluding unusual charges in both
periods. Results reflect a 30 percent drop in oil and gas production,
primarily due to previously announced E&P property sales.
CAPITAL INVESTMENTS
Roughly 75 percent of the company's approximately $500 million of capital
investments in 1999 were made within the Diversified Energy group. The
balance was made within Gas Distribution. MCN expects to invest about
$325 million in 2000.
MCN Energy Group Inc. is an integrated energy company with more than
$4 billion of assets and approximately $2 billion of annual revenues. The
company primarily is involved in natural gas production, gathering,
processing, transmission, storage and distribution, electric power generation
and energy marketing in the Midwest-to-Northeast corridor. Its largest
subsidiary is Michigan Consolidated Gas Company (MichCon), a natural gas
utility serving 1.2 million customers in more than 500 communities throughout
Michigan. MCN announced a definitive merger agreement with DTE Energy Company
on Oct. 5, 1999. The strategic combination of DTE and MCN would create the
largest electric and gas utility in Michigan and a premier regional energy
provider. Information about MCN Energy Group as well as its pending merger
with DTE is available on the World Wide Web at http://www.mcnenergy.com .
Statements included in this news release that are not historical in nature
are forward-looking within the meaning of the Private Securities Litigation
Reform Act of 1995. These statements involve certain risks and uncertainties
that may cause actual future results to differ materially from those
contemplated, projected, estimated or budgeted in such forward-looking
statements. A discussion of these risks and uncertainties is included in the
company's periodic reports filed with the Securities and Exchange Commission.
MCN invites the public to participate in its Fourth Quarter conference
call over the Internet at 11 a.m. Eastern today, Tuesday, Feb. 15. Listen on-
line, live or via replay, by logging on at
http://www.videonewswire.com/MCN/021500 (Case sensitive) or
http://www.mcnenergy.com (click on Investor Information, Conference Calls).
MCN ENERGY GROUP INC. AND SUBSIDIARIES
NEWS RELEASE STATISTICS
(Unaudited)
Three Months Ended
December 31,
1999 1998
(in Thousands, Except Per Share Amounts)
Operating Revenues $732,839 $571,879
Operating Expenses (1)(2) 694,685 523,733
Operating Income (Loss) 38,154 48,146
Equity in Earnings of Joint
Ventures 12,366 15,664
Other Income and (Deductions)(1) (46,912) (34,297)
Income Taxes 2,605 5,516
Net Income (Loss)
Gas Distribution:
Before Unusual Items 44,250 30,880
Unusual Charges (1) - -
Merger Costs (2) (16,770) -
27,480 30,880
Diversified Energy:
Before Unusual Items (9,478) (6,883)
Unusual Charges (1) (11,113) -
Merger Costs (2) (5,886) -
(26,477) (6,883)
Total Before Cumulative Effect
of Accounting Change:
Before Unusual Items 34,772 23,997
Unusual Charges (1) (11,113) -
Merger Costs (2) (22,656) -
1,003 23,997
Cumulative Effect of Accounting
Change, Net of Taxes (3) - -
Net Income (Loss) $1,003 $23,997
Basic Earnings (Loss) Per Share $.01 $.30
Diluted Earnings (Loss) Per Share
Gas Distribution:
Before Unusual Items $.51 $.39
Unusual Charges (1) - -
Merger Costs (2) (.19) -
.32 .39
Diversified Energy:
Before Unusual Items (.11) (.09)
Unusual Charges (1) (.13) -
Merger Costs (2) (.07) -
(.31) (.09)
Total Before Cumulative Effect
of Accounting Change:
Before Unusual Items .40 .30
Unusual Charges (1) (.13) -
Merger Costs (2) (.26) -
.01 .30
Cumulative Effect of Accounting
Change, Net of Taxes (3) - -
$.01 $.30
Average Common Shares Outstanding
Basic 85,435 79,219
Diluted 86,402 80,235
Dividends Paid Per Share $.2550 $.2550
MCN ENERGY GROUP INC. AND SUBSIDIARIES
NEWS RELEASE STATISTICS
(Unaudited)
Twelve Months Ended
December 31,
1999 1998
(in Thousands, Except Per Share Amounts)
Operating Revenues $2,481,068 $2,030,698
Operating Expenses (1)(2) 2,342,240 2,436,550
Operating Income (Loss) 138,828 (405,852)
Equity in Earnings of Joint
Ventures 52,386 62,225
Other Income and (Deductions)(1) (228,893) (126,309)
Income Taxes (9,703) (183,468)
Net Income (Loss)
Gas Distribution:
Before Unusual Items 120,213 88,459
Unusual Charges (1) - (16,725)
Merger Costs (2) (16,770) -
103,443 71,734
Diversified Energy:
Before Unusual Items (27,235) 14,671
Unusual Charges (1) (98,298) (372,873)
Merger Costs (2) (5,886) -
(131,419) (358,202)
Total Before Cumulative Effect
of Accounting Change:
Before Unusual Items 92,978 103,130
Unusual Charges (1) (98,298) (389,598)
Merger Costs (2) (22,656) -
(27,976) (286,468)
Cumulative Effect of Accounting
Change, Net of Taxes (3) (2,872) -
Net Income (Loss) $(30,848) $(286,468)
Basic Earnings (Loss) Per Share $(.37) $(3.63)
Diluted Earnings (Loss) Per Share
Gas Distribution:
Before Unusual Items $1.44 $1.12
Unusual Charges (1) - (.21)
Merger Costs (2) (.20) -
1.24 .91
Diversified Energy:
Before Unusual Items (.33) .19
Unusual Charges (1) (1.18) (4.73)
Merger Costs (2) (.07) -
(1.58) (4.54)
Total Before Cumulative Effect
of Accounting Change:
Before Unusual Items 1.11 1.31
Unusual Charges (1) (1.18) (4.94)
Merger Costs (2) (.27) -
(.34) (3.63)
Cumulative Effect of Accounting
Change, Net of Taxes (3) (.03) -
$(.37) $(3.63)
Average Common Shares Outstanding
Basic 83,407 78,823
Diluted 83,407 78,823
Dividends Paid Per Share $1.0200 $1.0200
MCN ENERGY GROUP INC. AND SUBSIDIARIES
NEWS RELEASE STATISTICS
(Unaudited)
Three Months Ended
December 31,
1999 1998
Operating and Joint Venture Income
(Loss) (000)
Gas Distribution:
Before Unusual Items $84,057 $58,139
Unusual Charges (1) - -
Merger Costs (2) (25,800) -
58,257 58,139
Diversified Energy:
Before Unusual Items:
Pipelines & Processing 5,494 2,320
Electric Power 4,887 4,970
Energy Marketing (5,474) (4,271)
Exploration & Production 4,661 5,595
Corporate & Other (915) (2,943)
8,653 5,671
Unusual Charges (1) (7,335) -
Merger Costs (2) (9,055) -
Total Diversified Energy (7,737) 5,671
$50,520 $63,810
Operating Statistics
Gas Distribution (MMcf):
Gas Sales 54,493 54,721
End User Transportation 44,974 38,104
99,467 92,825
Intermediate Transportation 141,181 106,744
240,648 199,569
Diversified Energy:
Pipelines & Processing (4):
Gas Processed (MMcf):
Carbon Dioxide Treatment 13,595 12,632
Natural Gas Liquids Removal 18,983 11,031
32,578 23,663
Methanol Produced (Thousand
Gallons) 16,868 14,883
Transportation (MMcf) 55,127 46,038
Electric Power (MWh) (4):
Electricity Sales-Domestic 671,573 661,198
Electricity Sales-International - 414,208
671,573 1,075,406
Energy Marketing(MMcf)(4):
Gas Sales 162,577 121,630
Exchange Gas Deliveries 6,316 4,306
168,893 125,936
Exploration & Production:
Gas Production (MMcf) 13,692 19,665
Oil Production (Mbbl) 152 501
Gas and Oil Production (MMcf
Equivalent) 14,604 22,671
Effect of Weather
Percent Warmer Than Normal (9.8)% (14.9)%
Decrease from Normal in:
Gas Markets (MMcf) (7,641) (13,557)
Net Income (000) $(7,614) $(12,212)
Earnings Per Share $(.09) $(.15)
MMcf - million cubic feet
Mbbl - thousand barrels
MWh - megawatt hours
Notes:
(1) Includes unusual charges consisting of restructuring charges, the
write-down of certain assets and investments, and losses related to
the sale of certain exploration and production properties.
(2) Includes costs associated with MCN's planned merger with DTE Energy
Company.
(3) Represents the cumulative effect of a change in accounting for
start-up costs recorded in the 1999 first quarter.
(4) Includes MCN's share of joint ventures.
MCN ENERGY GROUP INC. AND SUBSIDIARIES
NEWS RELEASE STATISTICS
(Unaudited)
Twelve Months Ended
December 31,
1999 1998
Operating and Joint Venture Income
(Loss) (000)
Gas Distribution:
Before Unusual Items $240,821 $184,320
Unusual Charges (1) - (24,800)
Merger Costs (2) (25,800) -
215,021 159,520
Diversified Energy:
Before Unusual Items:
Pipelines & Processing 19,184 21,404
Electric Power 22,929 25,995
Energy Marketing (11,444) (3,587)
Exploration & Production 14,659 29,023
Corporate & Other (745) (8,464)
44,583 64,371
Unusual Charges (1) (59,335) (567,518)
Merger Costs (2) (9,055) -
Total Diversified Energy (23,807) (503,147)
$191,214 $(343,627)
Operating Statistics
Gas Distribution (MMcf):
Gas Sales 181,756 172,177
End User Transportation 152,036 140,315
333,792 312,492
Intermediate Transportation 531,912 537,532
865,704 850,024
Diversified Energy:
Pipelines & Processing (4):
Gas Processed: (MMcf)
Carbon Dioxide Treatment 51,807 48,868
Natural Gas Liquids Removal 73,065 45,082
124,872 93,950
Methanol Produced (Thousand
Gallons) 57,419 60,446
Transportation (MMcf) 208,618 175,466
Electric Power (MWh) (4):
Electricity Sales-Domestic 2,755,787 2,516,612
Electricity Sales-Intl. - 1,288,345
2,755,787 3,804,957
Energy Marketing(MMcf)(4):
Gas Sales 585,717 454,681
Exchange Gas Deliveries 11,882 11,061
597,599 465,742
Exploration & Production:
Gas Production (MMcf) 61,838 82,040
Oil Production (Mbbl) 1,164 2,635
Gas and Oil Production (MMcf
Equivalent) 68,822 97,850
Effect of Weather
Percent Warmer Than Normal (9.0)% (19.3)%
Decrease from Normal in:
Gas Markets (MMcf) (18,732) (40,272)
Net Income (000) $(18,592) $(35,314)
Earnings Per Share $(.22) $(.45)
MMcf - million cubic feet
Mbbl - thousand barrels
MWh - megawatt hours
Notes:
(1) Includes unusual charges consisting of restructuring charges, the
write-down of certain assets and investments, and losses related to
the sale of certain exploration and production properties.
(2) Includes costs associated with MCN's planned merger with DTE Energy
Company.
(3) Represents the cumulative effect of a change in accounting for
start-up costs recorded in the 1999 first quarter.
(4) Includes MCN's share of joint ventures.
SOURCE MCN Energy Group Inc.
Web site: http://www.mcnenergy.com
CONTACT: Stewart Lawrence of MCN Energy Group Inc., 313-256-6289
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DTE Energy Company
