Dynegy Expects to Report Record First Quarter Earnings in 2001

Earnings to Exceed Previous Expectations by More Than 25 Percent



Apr 02, 2001, 01:00 ET from Dynegy Inc.

    HOUSTON, April 2 /PRNewswire/ -- Dynegy Inc. (NYSE:   DYN) today announced
 that it expects to report first quarter 2001 earnings per share of
 approximately $0.40.  This represents a 50 percent increase over first quarter
 2000 earnings per share of $0.26 and a more than 25 percent increase over
 Dynegy's previous expectations for the quarter of $0.30 to $0.32 per share.
     Several key drivers highlighted strong performances across all major
 business segments:
 
      -- Successful execution of Dynegy's "merchant leverage effect," the
         company's core energy convergence business strategy, enabled Dynegy to
         capture significant value from strong industry fundamentals in both
         natural gas and power by leveraging its national position as a
         reliable physical supplier of energy commodities and mitigating the
         risk from commodity volatility for the company and its customers;
 
           - Exceptional results are expected from the company's North American
             energy convergence business resulting from Dynegy's ability to
             optimize its national portfolio of assets, capacity and contracts,
             as well as increased customer origination and risk management
             activities.
 
           - Power generation operations are expected to exceed expectations
             due to higher nationwide asset utilization.
 
           - Dynegydirect, the company's electronic commerce portal that has
             recorded more than $9 billion in notional transactions since its
             launch in November 2000, is reducing the cost of serving customers
             while expanding Dynegy's reach and market share.
 
      -- Dynegy's midstream liquids segment is expected to report improved
         results due to higher price realization, lower non-fuel operating
         costs and strong wholesale marketing operations;
 
      -- Dynegy's transmission and distribution and communications segments
         are expected to be consistent with the company's expectations for
         the first quarter 2001; and
 
      -- Continued control of general and administrative costs.
 
     Based on the first quarter performance, management is comfortable raising
 Dynegy's earnings forecast for 2001 to a range of $1.92 to $1.97 per share
 from the current range of $1.80 to $1.87 per share.  This will represent an
 increase of more than 35 percent in earnings per share compared to 2000.
     Dynegy will release first quarter 2001 earnings on Tuesday, April 17, 2001
 prior to the opening of the New York Stock Exchange.  The company will host an
 analyst conference call to review first quarter results during the morning of
 April 17.
 
     Dynegy Inc. is a leading provider of energy and communications solutions
 to customers in North America, the United Kingdom and Continental Europe.  The
 company's leadership position extends across the entire convergence value
 chain, from power generation and wholesale and direct commercial and
 industrial marketing and trading of power, natural gas, coal, emission
 allowances, weather derivatives and broadband to transportation, gathering and
 processing of natural gas liquids.
 
     Certain statements included in this news release are intended as
 "forward-looking statements" under the Private Securities Litigation Reform
 Act of 1995.  These statements include assumptions, expectations, predictions,
 intentions or beliefs about future events.  Dynegy cautions that actual future
 results may vary materially from those expressed or implied in any
 forward-looking statements.  Some of the key factors that could cause actual
 results to vary from those Dynegy expects include changes in commodity prices
 for energy or communications products or services; the timing and extent of
 deregulation of energy markets in the U.S. and Europe; general capital market
 conditions; the effectiveness of Dynegy's risk management policies and
 procedures; the liquidity and competitiveness of wholesale trading markets for
 energy commodities, including the impact of electronic or online trading in
 these markets; operational factors affecting Dynegy's power generation or
 Dynegy's midstream natural gas facilities; uncertainties regarding the
 development of, and competition within, the market for broadband services in
 the U.S. and Europe; and uncertainties regarding environmental regulations or
 litigation and other legal or regulatory developments affecting Dynegy's
 business.  More information about the risks and uncertainties relating to
 these forward-looking statements are found in Dynegy's SEC filings, which are
 available free of charge on the SEC's web site at http://www.sec.gov.
 
 

SOURCE Dynegy Inc.
    HOUSTON, April 2 /PRNewswire/ -- Dynegy Inc. (NYSE:   DYN) today announced
 that it expects to report first quarter 2001 earnings per share of
 approximately $0.40.  This represents a 50 percent increase over first quarter
 2000 earnings per share of $0.26 and a more than 25 percent increase over
 Dynegy's previous expectations for the quarter of $0.30 to $0.32 per share.
     Several key drivers highlighted strong performances across all major
 business segments:
 
      -- Successful execution of Dynegy's "merchant leverage effect," the
         company's core energy convergence business strategy, enabled Dynegy to
         capture significant value from strong industry fundamentals in both
         natural gas and power by leveraging its national position as a
         reliable physical supplier of energy commodities and mitigating the
         risk from commodity volatility for the company and its customers;
 
           - Exceptional results are expected from the company's North American
             energy convergence business resulting from Dynegy's ability to
             optimize its national portfolio of assets, capacity and contracts,
             as well as increased customer origination and risk management
             activities.
 
           - Power generation operations are expected to exceed expectations
             due to higher nationwide asset utilization.
 
           - Dynegydirect, the company's electronic commerce portal that has
             recorded more than $9 billion in notional transactions since its
             launch in November 2000, is reducing the cost of serving customers
             while expanding Dynegy's reach and market share.
 
      -- Dynegy's midstream liquids segment is expected to report improved
         results due to higher price realization, lower non-fuel operating
         costs and strong wholesale marketing operations;
 
      -- Dynegy's transmission and distribution and communications segments
         are expected to be consistent with the company's expectations for
         the first quarter 2001; and
 
      -- Continued control of general and administrative costs.
 
     Based on the first quarter performance, management is comfortable raising
 Dynegy's earnings forecast for 2001 to a range of $1.92 to $1.97 per share
 from the current range of $1.80 to $1.87 per share.  This will represent an
 increase of more than 35 percent in earnings per share compared to 2000.
     Dynegy will release first quarter 2001 earnings on Tuesday, April 17, 2001
 prior to the opening of the New York Stock Exchange.  The company will host an
 analyst conference call to review first quarter results during the morning of
 April 17.
 
     Dynegy Inc. is a leading provider of energy and communications solutions
 to customers in North America, the United Kingdom and Continental Europe.  The
 company's leadership position extends across the entire convergence value
 chain, from power generation and wholesale and direct commercial and
 industrial marketing and trading of power, natural gas, coal, emission
 allowances, weather derivatives and broadband to transportation, gathering and
 processing of natural gas liquids.
 
     Certain statements included in this news release are intended as
 "forward-looking statements" under the Private Securities Litigation Reform
 Act of 1995.  These statements include assumptions, expectations, predictions,
 intentions or beliefs about future events.  Dynegy cautions that actual future
 results may vary materially from those expressed or implied in any
 forward-looking statements.  Some of the key factors that could cause actual
 results to vary from those Dynegy expects include changes in commodity prices
 for energy or communications products or services; the timing and extent of
 deregulation of energy markets in the U.S. and Europe; general capital market
 conditions; the effectiveness of Dynegy's risk management policies and
 procedures; the liquidity and competitiveness of wholesale trading markets for
 energy commodities, including the impact of electronic or online trading in
 these markets; operational factors affecting Dynegy's power generation or
 Dynegy's midstream natural gas facilities; uncertainties regarding the
 development of, and competition within, the market for broadband services in
 the U.S. and Europe; and uncertainties regarding environmental regulations or
 litigation and other legal or regulatory developments affecting Dynegy's
 business.  More information about the risks and uncertainties relating to
 these forward-looking statements are found in Dynegy's SEC filings, which are
 available free of charge on the SEC's web site at http://www.sec.gov.
 
 SOURCE  Dynegy Inc.

RELATED LINKS

http://www.ngccorp.com