EXHIBIT 99.1
KEYSPAN EXPECTS HIGHER-THAN-FORECAST 2000 EARNINGS
-- HIGHER EARNINGS ALSO PROJECTED FOR 2001 --
NEW YORK, DECEMBER 11, 2000 -- At a meeting today with financial
analysts in Boston, KeySpan Corporation [NYSE:KSE] will report that it
anticipates its 2000 earnings, excluding the impact of any transaction or
restructuring charges, will be approximately $2.40 per share, significantly
ahead of the current First Call consensus estimates of $2.28 per share.
Strong earnings are expected to result from solid performances across
all business segments, especially from the electric, exploration, and production
segments. In addition, the energy-services business should report its first
annual profit in 2000.
Robert B. Catell, KeySpan's chairman and chief executive officer,
emphasized that the company's earnings growth is expected to be sustainable in
2001 due to the positive outlook in all business segments. "Our growth strategy,
combined with a comprehensive and rigorous budget process, has provided a strong
foundation for the future," Mr. Catell said. "We expect to be able to increase
our earnings in 2001 by 10%, ranging from $2.60 to $2.65 per share, well ahead
of the current First Call consensus of $2.48 per share."
KeySpan will report on its record level of conversions from oil to
natural gas, primarily on Long Island. In addition, more than 1 million feet of
natural-gas main are expected to be installed this year as the system is
expanded to serve new areas. In New England, the company intends to achieve its
growth targets resulting from the acquisition of Eastern Enterprises and
EnergyNorth.
In addition, the company expects its energy-services business to
build upon its profitability this year and significantly contribute to earnings
growth in 2001. The electric business is expected to maintain its earnings near
the current levels until 2003, when the company anticipates building additional
generating plants in New York City. KeySpan also expects to benefit from
increased gas prices and volumes in its exploration, production and gas
processing businesses while it still owns these non-core assets.
Currently, the company estimates that the special charges resulting
from acquiring Eastern Enterprises and EnergyNorth in November will amount to
approximately $75 million, which will be reported in the fourth quarter of
fiscal year 2000. Including these charges, earnings per share for fiscal year
2000 are expected to range from $2.05 to $2.10.
A member of the S&P 500, KeySpan is the largest distributor of
natural gas in the Northeast, with 2.4 million gas customers and more than
13,000 employees. KeySpan is also the largest investor-owned electric generator
in New York State and operates Long Island's electric system. In addition,
KeySpan markets energy and Internet services, processes gas in Canada, and has
investments in fiber-optic cable, natural-gas exploration, production, pipeline
transportation, distribution and storage.
Certain statements contained herein are forward-looking statements,
which reflect numerous assumptions and involve a number of risks and
uncertainties. Actual results may differ materially from those discussed in such
statements. Among the factors that could cause actual results to differ
materially are: general economic trends; fluctuations in gas and electric
prices; available sources and costs of fuel; State and Federal regulatory
initiatives that increase competition, threaten cost and investment recovery,
and impact rate structures; the ability of the company to successfully reduce
its cost structure; the ability of the company to successfully integrate
acquired operations; the degree to which the company develops non-regulated
business ventures; the effect of inflationary trends and increases in interest
rates; and risks detailed from time to time in reports and other documents filed
by the company with the Securities and Exchange Commission.
NOTE: ON DECEMBER 14TH, KEYSPAN WILL HOLD MEETINGS FOR FINANCIAL ANALYSTS IN NEW
YORK CITY. A COPY OF THE PRESENTATION TO BE USED IN BOSTON AND NEW YORK IS
AVAILABLE IN THE INVESTOR RELATIONS SECTION OF THE COMPANY'S WEB SITE:
WWW.KEYSPANENERGY.COM.
