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EXHIBIT 99.10
NEWS
RELEASE
FOR IMMEDIATE RELEASE
NRG ENERGY REPORTS SECOND QUARTER EARNINGS OF 28 CENTS PER SHARE
MINNEAPOLIS - (JULY 18, 2000) --- NRG Energy, Inc. (NYSE: NRG) today reported
its financial results for the quarter and six months ended June 30, 2000. These
are the first quarterly results released by the Company since its initial public
offering of common stock that closed on June 5, 2000.
For the quarter ended June 30, 2000, net income was $43.6 million or 28
cents per share, versus $2.3 million or two cents per share on a share-adjusted
basis for the quarter ended June 30, 1999. Revenue for the quarter ended June
30, 2000 was $522.0 million, versus $66.7 million in the same quarter in 1999.
For the six months ending June 30, 2000, net income was $52.3 million
or 35 cents per share, versus $1.4 million or one cent per share on a
share-adjusted basis for the six months ended June 30, 1999. Revenue for the six
months ended June 30, 2000 rose to $845 million from $113.2 million in the first
six months of 1999.
"We have established a strong base of business that will contribute to
our earnings quarter-in and quarter-out and will have potential upside during
periods of market volatility," said David H. Peterson, chairman, president and
CEO of NRG. "We are comfortable that our earnings per share for the year will be
in the 87 to 95 cents per share range, based on year-to-date results and
consistent with analyst consensus estimates for the balance of the year."
NRG's earnings benefited from increased generation capacity due to a
number of newly acquired generation assets. Since June 30, 1999, NRG has
increased its megawatt (MW) ownership interest in generating facilities in
operation from 6,718 MW to 13,380 MW as of June 30, 2000. Additionally, 257 MW
in projects were under construction at the end of the quarter. NRG's total
assets as of June 30, 2000 were $5.5 billion, compared to $2.4 billion as of
June 30, 1999.
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In addition to more generating assets, earnings were affected favorably
by a general increase in fuel prices - primarily for gas and oil - which
contributed to higher market prices for electricity.
Weather-related increases in demand for electricity, particularly in
the northeastern and western United States, contributed to higher than
anticipated earnings for the second quarter 2000. Market conditions and outages
of non-NRG facilities in these regions magnified the favorable weather impacts.
The company expects its most recent acquisitions - the Killingholme A
facility in the United Kingdom and the Louisiana Generating assets in Louisiana
- to meet previously disclosed earnings estimates.
"Our results support NRG's strategy of owning a well-balanced
generation business that is diversified by geographic location, fuel type and
dispatch level," added Peterson. "NRG has been able to respond quickly and
effectively in times of peak energy demand, such as we experienced late in the
quarter."
During the second quarter 2000, NRG completed an initial public
offering of 32,395,500 newly issued common shares at a price of $15 per share,
resulting in gross proceeds to the Company of approximately $485 million. NRG
common shares began trading on the New York Stock Exchange on May 31, 2000. NRG
was formerly a wholly owned subsidiary of Northern States Power Company (NYSE:
NSP), which retains an 82 percent economic interest in NRG.
NRG Energy (www.nrgenergy.com) is a leading global energy company
primarily engaged in the acquisition, development, construction, ownership and
operation of power generation facilities. NRG owns all or a portion of 57 power
generation projects with a total generating capacity of more than 23,000 MW; its
net ownership interest in these projects totals 13,637 MW. NRG Energy's
operations utilize such diverse fuel sources as natural gas, oil, coal and coal
seam methane, biomass, landfill gas, and hydro, as well as refuse derived fuel.
Certain statements included in this news release are forward-looking
statements. They discuss, among other things, expected earnings and future
financial performance. Such forward-looking information involves risks,
uncertainties and assumptions, including, among others, factors affecting power
generation operations such as unusual weather conditions, unscheduled generator
outages, unanticipated changes to fossil fuel supply costs or availability and
environmental incidents, the availability or cost of capital such as changes in
interest rates and perceptions of the power generation industry,
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employee workforce factors and volatility of energy prices in a deregulated
market environment. These risks, uncertainties and assumptions could
significantly affect actual results and, accordingly, such actual results may
differ materially from the anticipated results expressed in any forward-looking
statements. For more information regarding these risks and uncertainties, review
NRG Energy's filings with the Securities and Exchange Commission.
# # #
Contacts: Meredith Moore
Media Relations Manager
NRG Energy, Inc.
612.313.8729
[email protected]
Dan Dokken
Executive Director, Investor Relations
NRG Energy, Inc.
612.373.5336
[email protected]
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NRG ENERGY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2000 AND 1999
UNAUDITED
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
(Thousands of Dollars, except per share data) 2000 1999 2000 1999
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<S> <C> <C> <C> <C>
OPERATING REVENUES
Revenues from wholly-owned operations $ 473,836 $ 60,034 $ 806,507 $ 97,881
Equity in operating earnings of unconsolidated affiliates 48,173 6,625 38,529 15,292
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Total operating revenues 522,009 66,659 845,036 113,173
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OPERATING COSTS AND EXPENSES
Cost of wholly-owned operations 305,908 41,124 520,831 69,064
Depreciation and amortization 30,865 6,291 50,852 11,025
General, administrative, and development 31,108 16,288 56,288 32,273
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Total operating costs and expenses 367,881 63,703 627,971 112,362
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OPERATING INCOME 154,128 2,956 217,065 811
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OTHER INCOME (EXPENSE)
Minority interest in earnings of consolidated subsidiary (2,283) (691) (4,081) (1,155)
Other income, net 34 2,574 1,565 3,308
Interest expense (81,858) (15,788) (134,175) (26,847)
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Total other expense (84,107) (13,905) (136,691) (24,694)
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INCOME (LOSS) BEFORE INCOME TAXES 70,021 (10,949) 80,374 (23,883)
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INCOME TAX EXPENSE (BENEFIT) 26,440 (13,290) 28,047 (25,284)
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NET INCOME $ 43,581 $ 2,341 $ 52,327 $ 1,401
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Weighted Average Shares Outstanding - Basic (000)'s 155,529 147,605 151,567 147,605
Earnings per Share - Basic $ 0.28 $ 0.02 $ 0.35 $ 0.01
</TABLE>
