Despite a disappointing fourth quarter, full year operating earnings in 2001 for 39 natural gas distribution companies, including elements of larger gas and electric companies, were up 6% over 2000 on a revenue increase of 19%, according to Energy Performance Review (EPR).

As with most energy companies last year, the 12-month results reflect a strong first quarter. Gas distribution operating earnings before special items were up from $2.7 billion in 2000 to $2.9 billion in 2001, despite total volumes sold and transported that show little change at about 9 Tcf. Revenues were up by 19% to $46 billion. Unit sales revenue was up 19% at $8.78, while the average realization on sales, mainly to residential and commercial customers, was up 18%, to $10.58/Mcf from $8.94/Mcf. The average cost of gas sold was up 25% at $5.71/Mcf. Unit revenues on gas transportation were up 7% at $0.63/Mcf for 2001 versus $0.59/Mcf for 2000.

Combined totals for the thirty-nine gas distribution companies, including elements of larger gas and electric companies, showed fourth quarter 2001 operating earnings before special items totaling $996 million, or $0.40 per Mcf , down from earnings totaling $1.2 billion, or $0.42 per Mcf, posted for 4Q 2000, based on financial data compiled by EPR (www.energyperformancereview.com)

The year-to-year fourth quarter decline reflected the reduced volumes sold — 1.3 Tcf in 4Q 2001 compared to 1.6 Tcf in 2000 — and transported — 1.16 Tcf in 4Q 2001 v. 1.23 Tcf, EPR said. Revenues in 4Q 2001 of $10.3 billion were about two-thirds the $15.5 collected in the prior-year fourth quarter, reflecting reduced volumes. Total gas throughput of 2.5 Tcf for the fourth quarter of 2001 was off 13% from the 2.8 Tcf a year prior, reflecting a 19% decline in natural gas sales.

The one special item reported for the fourth quarter of 2001 was a $0.8 million miscellaneous charge for Constellation Energy. There were no special items posted for the 2000 quarter.

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