Pittsburgh, PA-based Equitable Resources announced record core earnings per diluted share (EPS), excluding earnings from Westport Resources, of $2.12 for 2001 compared to a core EPS of $1.46 in 2000, an improvement of 45%. Reported 2001 earnings, including Westport, were $2.30 per share. Despite the record annual earnings, Equitable reported fourth quarter core EPS of $0.39 compared to fourth quarter 2000 EPS of $0.45. The decrease was attributed to lower gas prices, unusually warm weather and increased bad debt reserves at Equitable Utilities. Reported fourth quarter 2001 earnings, including Westport, were $0.37 per share. “Equitable Resources is extremely pleased with the financial results for 2001. Return on capital exceeded our benchmark and is an industry-leading performance. Earnings were at record levels,” said Murry S. Gerber, CEO. “In addition, we have largely mitigated the impact of lower commodity prices for 2002 and beyond through significant hedging of natural gas sales. We believe the proactive approach we have taken to managing the natural cycles in our business will lead to competitively superior growth and high return on capital.” Due in part to mild weather, Equitable Utilities had earnings before interest and taxes (EBIT) of $79.0 million for 2001, compared with $93.0 million for 2000. Equitable Production recorded EBIT of $178.7 million in 2001, compared to $113.9 million for 2000, excluding EBIT from Gulf operations. The company said the positive results were primarily attributable to higher realized sales prices, higher operating volumes and lower expenses. Going forward, Equitable forecasts that 2002 full-year core EPS will be between $2.35-2.40 per share, subject to a one cent change for each ten cent change in the NYMEX natural gas price at the Jan. 3, 2002 price of $2.65. Equitable used approximately $133 million of its $175 million 2001 capital budget. During the year the company committed an additional $40 million, which is expected to be spent in 2002. Equitable said it has established a capital budget of $166 million for 2002. Actual capital spending, including the $40 million carryover from 2001 commitments, is expected to total $173 million. For 2002, the company said it has hedged 33 Bcf at an average of $4.15/Mcf. This is in addition to 14 Bcf in prepaid forward sales at approximately $4.00/Mcf.

Kansas City, MO-based Great Plains Energy Inc., another company bitten by the communications bug, said Thursday that despite record revenues for the fourth quarter of 2001 as well as full-year 2001, it posted earnings losses in both timeframes. Revenues for the fourth quarter increased 43% to $354.2 million and full-year 2001 revenues increased 31% to $1.46 billion, but the company reported a fourth quarter loss of $129.2 million ($2.09 per share) and a full-year loss of $25.8 million ($0.42 per share) as a result of a non-cash, after-tax write-off of $140 million ($2.27 per share) related to the bankruptcy filing of its fiber optic network business, DTI Holdings, Inc. and Digital Teleport, Inc. (collectively DTI). Great Plains said the write-off is greater than originally estimated to reflect conservative bankruptcy accounting. At the end of the bankruptcy proceedings, the company said it currently anticipates a portion of the write-off to be reversed as an earnings increase of at least $0.30 per share. Excluding the write-off, Great Plains earned $0.18 per share in the fourth quarter compared to earnings of $0.31 per share in the same quarter of 2000. For the year, the company earned $1.85 per share compared with $2.05 per share. For the fourth quarter, Kansas City Power & Light (KCP&L) increased earnings from a loss per share of $0.23 in the 2000 quarter to a gain of $0.28 despite lower retail revenues resulting from mild winter weather. With the return of Hawthorn No. 5 generating unit, KCP&L’s wholesale power sales increased nearly 150% compared to fourth quarter of last year. Revenues at Strategic Energy increased over 265% and Great Plains Energy completed the approval process to become a holding company. “Solid execution throughout the company’s operations enabled us to deliver the operating earnings as we had projected, despite unusually mild weather in the fourth quarter,” said Chairman Bernie Beaudoin. “This year was one of transition that resulted in several steps to focus our enterprise on energy-related strategies.” For fiscal 2002, Great Plains Energy anticipates consolidated earnings per share in the range of $2.00 to $2.10, consisting of $1.70 to $1.80 at KCP&L and $0.40 to $0.45 at KLT Inc. less $0.10 to $0.15 for corporate expenses from Great Plains Power and the holding company.

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