DTE Energy Co. reported a 39% increase in fourth quarter earnings per share, including special items, but a 33% drop in earnings per share for the year, including $1.13/share special charge related to its merger with MCN Energy. Operating earnings for the year before special charges were $536 million, or $3.48 per diluted share, compared to $484 million, or $3.39 per diluted share. CEO Anthony F. Earley Jr. said the weak economy and mild weather in the fourth quarter hurt both electricity and gas sales, but increased earnings growth for DTE’s non-regulated subsidiaries, coupled with targeted cost-reduction programs throughout the company, helped the company achieve attractive financial results. “Our non-regulated energy businesses had an impressive showing in 2001, contributing $162 million in net income, which exceeded our $130 million target for the year,” Earley said. “We expect these businesses to continue to build momentum in 2002.” The company got a strong performance from its coal operations, including the expansion of its synthetic fuel program and three facilities, which processed 2.3 million tons of coal. It increased profits at DTE Coal Services by 85%. The addition of MichCon’s natural gas business boosted net income in the fourth quarter. MichCon was not a part of DTE Energy operations in 2000. However, it had lower electric revenues due to lower overall sales to industrial and wholesale customers driven by the recession and the legislatively mandated rate reductions for commercial and industrial customers. It also had higher electric operation and maintenance expenses. Earley said that DTE Energy’s business plans continue to support an increase in its compound annual earnings growth rate from 6-8% by 2005. However, growth this year largely will depend on the pace of economic recovery, the impact of weather on gas sales in the first quarter and how many customers are lost to alternative electric and gas suppliers, he added. “With these uncertainties in mind, DTE Energy is providing an earnings guidance range for 2002 of $3.70 to $4 per share,” he said. “Our previously issued 2002 guidance of $4 per share will be a stretch, but is still within reach. Our non-regulated businesses, especially the coal-based fuels segment, are well-positioned for increased earnings growth next year.”

Coming off a strong year for its software and its consulting services to energy market participants, New York City-based Caminus Corp. reported record financial results for the fourth quarter and full year 2001. The company posted pro forma net income of $9 million ($0.55 per share) for full year 2001, compared to $7.6 million ($0.49 per share) during 2000. Pro forma net income for the fourth quarter was $4.8 million ($0.28 per share), compared to $2.9 million ($0.18 per share) for the fourth quarter 2000. “Our software business turned in its best-ever performance amid the most challenging economic environment the company has faced,” stated David Stoner, CEO of Caminus. “Fourth quarter performance, combined with the Altra acquisition, enabled Caminus to end 2001 on a strong note. The integration of Altra’s operations is proceeding smoothly, and we are already seeing promising demand across a broadened product suite that provides over 300 customers with a variety of applications for energy trading, transaction processing, operations and scheduling, and risk management.” The four-year-old company said total revenues for the year increased 44% from $51.7 million for 2000 to $74.7 million for 2001. The fourth quarter also showed a sizeable increase. Revenues for the three months ended Dec. 31, 2001 rose 47% to $25.4 million, compared to $17.3 million during the fourth quarter of 2000.

Cocoa, FL-based Cambridge Energy Corp. signed a letter of intent to acquire 32 Bcf of proven reserves in West Texas for $41 million. Cambridge said the West Texas property is only the first transaction with a local company in an ongoing program of acquiring properties with proven reserves. Representing a 50-well drilling program for Cambridge, the property is located on the proven Caballos structure. Other companies, including Exxon, Tenneco, Shell, Unocal, Fina and Texas Pacific Oil Co. have made discoveries in the area. “The signing of this letter of intent represents another significant step in our aggressive campaign to acquire properties with proven reserves, which we believe will translate to revenues, and ultimately profits, for the company,” said Perry West, CEO of Cambridge Energy. The acquisition is subject to completion of satisfactory due diligence and the signing of a definitive agreement.

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