Mirant’s diversified global portfolio and growing gas merchant business in North America sent third quarter earnings soaring, with earnings from operations totaling $234 million or 67 cents per diluted share, compared to $119 million or 35 cents per diluted share for the third quarter, 2000. CEO Marce Fuller said the earnings have given the Atlanta-based company “increasing confidence in our ability to achieve earnings per share of $2.55 to $2.65 next year, and to grow off that base by at least 20% on average in subsequent years.”

In the Americas, Mirant’s Mid-Atlantic assets, which are substantially contracted through a long-term transition purchase agreement with PEPCO, and its operations in the Northeast and West contributed significantly to an earnings increase of over 96% from a year ago. During the quarter, Mirant’s North American power and gas volumes continued to grow, with the sale of more than 91 MM MWh in North America, a 45% increase over the same quarter last year. The company also marketed 13.1 Bcf/d during the quarter, an increase of 47% from the same period last year.

More than 60% of Mirant’s North American portfolio is hedged in 2002, and 2,200 MW of new capacity will be brought online during the year. In addition, Mirant said its growing gas marketing presence should position the company to capitalize on opportunities in gas markets across North America. Its North American gas presence was underscored by the recent acquisition of 18 natural gas fields from Castex Energy Inc. and the announcement of intent to purchase the gas marketing business of TransCanada Pipeline. The TransCanada purchase will add approximately 5 Bcf/d to the company’s natural gas physical marketing volumes and has the potential to make Mirant the second largest gas marketer in North America.

In the year ahead, Mirant anticipates that it will continue to receive approximately one third of its earnings from operations outside North America. The company will continue to benefit from long-term contracts in Asia and stable franchise businesses in the United Kingdom, Germany and the Caribbean.

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