Dominion Resources experienced significant growth in the year2000 — due in part to its recent merger with Consolidated NaturalGas (CNG) — and it forecasts an even stronger 2001. The companyposted consolidated operating earnings excluding special items for2000 of $787 million ($3.33 per share), reflecting a 10.6% increasein earnings per share over 1999’s output of $577 million ($3.01 pershare). Special items include a subtraction of $351 million dollarsrelated to CNG merger costs and the write-down of Dominion Capitalassets.

Earnings for the fourth quarter 2000 more than doubled itscounterpart from the previous year. Excluding special items, thecompany notched $144 million ($0.59 per share), compared to $65million ($0.35 per share), which Dominion posted in 1999.

“2000 was a superb year for Dominion,” said Thomas. E. Capps,CEO of Dominion. “The merger with Consolidated Natural Gas Companyhas dramatically transformed us into one of the nation’s largestand most successful diversified energy companies. We are targeting2001 operating earnings of $4.10 per share, a 23% increase over2000 results. We expect to grow operating earnings by 8% to 10%annually thereafter.”

The company said the merger affected all of its businesssegments, giving energy, delivery and E&P a boost. The largestyear over year increase came from the Dominion Exploration &Production segment, which increased earnings from $44 million in1999, to $270 million for 2000.

During 1999, Dominion E&P produced 109 Bcfe of oil and gas.For 2000, after the merger with CNG, it produced 270 Bcf of naturalgas, and eight million bbl of oil, for a combined total of 316Bcfe. The company attributed the segment’s earnings increase tohigher oil and gas prices, and more production resulting from theaddition of CNG Producing.

Dominion Energy, the company’s electric generation and gaspipeline business segment led the way, earning $478 million in2000, up from $292 million in 1999. The company attributed thesegments growth to the addition of CNG’s pipeline operations,strong customer growth, and lower capacity costs resulting from theexpiration of third-party generation contracts.

Dominion Delivery, the electric and gas distribution andcustomer service segment, also enjoyed an increase in earnings,from $175 million in 1999 to $339 million for 2000. Dominion citedthe addition of CNG’s local distribution operations, along withcustomer growth in the company’s electric service area as primaryreasons for the increase.

©Copyright 2001 Intelligence Press Inc. All rights reserved. Thepreceding news report may not be republished or redistributed, inwhole or in part, in any form, without prior written consent ofIntelligence Press, Inc.