Extract
Dynegy Announces Second Quarter 2005 Results.
HOUSTON -- Dynegy Inc. (NYSE:DYN)
--Company reports net income of $32 million, which included a $125 million tax benefit associated with the anticipated sale of the Midstream natural gas business --Power Generation business benefited from increased volumes and improved electricity prices, offset by expiration of West Coast Power customer contract --Midstream business continued to benefit from favorable commodity prices --Liquidity strong at $765 million Dynegy Inc. (NYSE:DYN) today reported net income applicable to common shareholders of $32 million, or $0.08 per diluted share, for the second quarter 2005, compared to net income applicable to common shareholders of $2 million and diluted earnings per share of $0.01 for the second quarter 2004. The year-over-year increase in net income primarily resulted from the reduction of a deferred tax valuation allowance in the second quarter 2005 of $125 million related to capital loss carryforwards expected to be utilized on the anticipated sale of the company's Midstream natural gas business. "Dynegy's Power Generation and Midstream natural gas businesses delivered strong operational performances due to our continuing focus on asset availability to serve customers and capture market opportunities," said Bruce A. Williamson, Chairman, President and Chief Executive Officer of Dynegy Inc. "All but one of the company's Power Generation peaking facilities operated during the quarter as a result of increased demand in the Midwest and the Northeast. In addition, Midstream continued to benefit from a favorable commodity pricing environment and strong volumes. "The recently announced sale of Midstream to Targa Resources for $2.475 billion in cash is yet another significant step in creating a sustainable merchant power platform for the future," Williamson added. "The proceeds from the transaction will provide Dynegy with opportunities to improve our balance sheet, thereby positioning our Power Generation business for new growth or strategic directions involving greater scale and scope through an expansion of our asset portfolio or combinations." Year-Over-Year Comparison A comparison of the company's second quarter 2005 and second quarter 2004 results is contained in the table below (in millions of dollars, except per share amounts): 2Q 2005 2Q 2004 ---------- ---------- Loss from continuing operations, before tax $(150) $(44) Income tax benefit from continuing operations 41 29 Income from discontinued operations, before tax 36 71 Income tax ben...See the full content of this document
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