KeySpan Announces Strong First Quarter Earnings

- Increases Annual Earnings Forecast to Approximately $2.70 Per Share -



Apr 26, 2001, 01:00 ET from KeySpan Corporation

    NEW YORK, April 26 /PRNewswire/ -- KeySpan Corporation (NYSE:   KSE)
 announced today record first-quarter earnings for the period ended March 31,
 2001 of $223.3 million, or $1.63 per share, up 34% from $163.6 million, or
 $1.22 per share for the same period a year ago.  Diluted earnings per share
 were $1.61 for the first quarter 2001 compared to $1.22 for the first quarter
 last year.
     The increase in earnings reflects substantial contributions from our newly
 acquired gas distribution companies serving New England, solid growth by our
 New York and Long Island gas operations, and outstanding results by our gas
 exploration and production subsidiary, The Houston Exploration Company
 (NYSE:   THX).
     "We are very pleased that our strong first quarter was in line with our
 projections, which has set the stage for another excellent year in 2001,"
 comments KeySpan's Robert B. Catell, chairman and chief executive officer.
 "We continue to convert record numbers of heating customers from oil to gas in
 the Northeast and are successfully integrating the operations of our
 gas-distribution acquisitions.  We have established and are meeting growth
 objectives for all business segments.  While our business can be impacted by
 several factors, we believe that we have laid the groundwork to increase our
 2001 earnings forecast from our prior forecast of $2.60-$2.65 per share to
 approximately $2.70 per share."
     The results of our business segments will now be reported as Earnings
 Before Interest and Taxes (EBIT) in order to provide a better comparison of
 operating performance and to reflect the way we manage our business.  Major
 highlights of the first-quarter results include:
 
     * The gas-distribution businesses serving New York City, Long Island,
       Massachusetts and New Hampshire had EBIT in the first quarter of
       $331.2 million, compared to $216.9 million for the first quarter of
       2000. The increase primarily reflects the results of the seasonal nature
       of our gas-distribution companies in New England, which were acquired in
       November 2000. In addition, we continue to see significant gas-sales
       growth and a high level of conversions from oil to gas in New York and
       on Long Island.
 
     * The electric-services segment had EBIT of $58.2 million for the first
       quarter, as compared to $72.1 million in last year's first quarter. The
       decrease, in line with our internal forecast, was primarily due to lower
       ancillary services revenues and changes in the nature of certain state
       and local operating taxes.
 
     * Energy Services (KeySpan Services, Inc. and its subsidiaries) had EBIT
       of $2.0 million in the quarter, compared to an EBIT loss of $1.6 million
       in last year's first quarter. The increase reflects the contributions of
       our energy management businesses, primarily KeySpan Energy Supply, Inc.
       which provides energy procurement and fuel management to KeySpan
       affiliates. These results were partially offset by ongoing start-up
       projects and costs associated with certain newly acquired businesses.
 
     * The energy investments segment, which includes our gas exploration &
       production operations, as well as our gas processing & pipeline
       investments, had EBIT of $78.0 million for the first quarter, as
       compared to $20.7 million in last year's first quarter.
 
       - Gas exploration and production operations primarily from our 68%
         ownership in The Houston Exploration Company contributed $65.5 million
         to EBIT in the quarter, compared to $13.7 million in last year's first
         quarter. Our gas exploration and production activities benefited
         significantly from a 19% increase in production volumes and the
         substantial nationwide increase in natural-gas commodity prices.
         Houston Exploration has hedged up to 70% of this year's production.
 
       - KeySpan has investments in Canadian mid-stream gas processing plants,
         domestic and international pipelines, a gas distribution system in
         Northern Ireland, and an in-land barge business. These investments
         contributed $12.5 million in EBIT in the quarter, compared to
         $7.0 million last year. The increase reflects our increase in
         ownership from 50% to 100% in KeySpan Canada (formerly Gulf Midstream
         Services) on October 1, 2000, and a contribution from Midland
         Enterprises, an in-land barge business acquired in November 2000 as
         part of the Eastern Enterprises transaction.
 
     Earnings Outlook
 
     The acquisitions of Eastern Enterprises and EnergyNorth will increase the
 seasonal impact of our gas-distribution business.  As a result, we expect that
 approximately 60% of KeySpan's earnings for 2001 will be derived in the first
 quarter and 30%-to-35% in the fourth quarter of this year.  The other two
 quarters should be breakeven-to-modestly profitable.
     Looking to the future, Mr. Catell said, "We believe that we will be able
 to achieve double-digit earnings growth this year.  Gas sales growth continues
 at a strong pace in our Long Island and New England service areas.  Although
 New York's electric capacity is expected to be tight this summer, KeySpan is
 well prepared to meet the demands of the summer cooling season, with our
 generating facilities being well managed and maintained in top operating
 condition.  The Houston Exploration Company has large proved reserves, has
 increased production and has made significant gas discoveries.  As a result of
 this positive outlook, we are projecting earnings of approximately $2.70 per
 share for 2001.  However, this projection may change as the year progresses,
 as our business is affected by several factors including weather and commodity
 prices.  We will keep shareholders informed of any significant developments
 that may affect this forecast."
     A member of the Standard & Poor's 500 index, KeySpan Corporation
 (NYSE:   KSE) is the largest distributor of natural gas in the Northeast, with
 2.5 million gas customers and more than 13,000 employees.  KeySpan is also the
 largest investor-owned electric generator in New York State and operates Long
 Island's electric system under contract with the Long Island Power Authority
 for its 1.1 million customers.  With headquarters in Brooklyn, Boston and Long
 Island, KeySpan also manages a dynamic portfolio of service companies.  They
 include: KeySpan Energy Delivery, the group of regulated natural gas
 utilities; KeySpan Home Energy Services, a group of energy product, repair and
 services companies for residential and small commercial business customers;
 and KeySpan Business Solutions, a full-service group of energy product, repair
 and services companies for larger business customers.  KeySpan also has
 strategic investments in natural-gas exploration and production, pipeline
 transportation, distribution and storage, Canadian gas processing and fiber-
 optic cable. For more information about the company, visit KeySpan's Web site
 at: http://www.keyspanenergy.com
 
     Certain statements contained herein are forward-looking statements, which
 reflect numerous assumptions and involve a number of risks and uncertainties.
 Actual results may differ materially from those discussed in such statements.
 Among the factors that could cause actual results to differ materially are:
 general economic trends; fluctuations in gas and electric prices; available
 sources and costs of fuel; State and Federal regulatory initiatives that
 increase competition, threaten cost and investment recovery, and impact rate
 structures; the ability of the company to successfully reduce its cost
 structure; the ability of the company to successfully integrate acquired
 operations; the degree to which the company develops non-regulated business
 ventures; the effect of inflationary trends and increases in interest rates;
 and risks detailed from time to time in reports and other documents filed by
 the company with the Securities and Exchange Commission.
 
     Earnings Conference Call: Investors are invited to participate in the
 KeySpan Corporation 2001 First Quarter Earnings Conference Call on Thursday,
 April 26, at 11:30 a.m. (EST)
 
     Dial Number: 888-552-7850
     Replay Number: 800-642-1687
     Access Code: 458761
     AudioCast: http://www.investor.keyspanenergy.com
 
 
                                KeySpan Corporation
                          Consolidated Summary of Earnings
                (In Thousands of Dollars, Except Per Share Amounts)
 
                                          Three Months Ended Three Months Ended
                                               3/31/2001         3/31/2000
 
     Revenues
       Gas Distribution                           $1,753,793          $804,703
       Electric Services                             343,372           334,404
       Energy Services                               319,173           126,480
       Energy Investments                            225,297            51,026
     Total Revenues                                2,641,635         1,316,613
 
     Operating Expenses
       Purchased gas for resale                    1,197,358           409,047
       Fuel and purchased power                      146,167            70,577
       Operations and maintenance                    565,714           355,479
       Depreciation, depletion and
        amortization                                 131,095            69,581
       Operating taxes                               141,646           115,423
     Total Operating Expenses                      2,181,980         1,020,107
     Operating Income                                459,655           296,506
 
     Other Income and (Deductions)                     8,204            11,935
     Income Before Interest
       Charges & Income Taxes                        467,859           308,441
 
     Interest Charges                                 96,952            44,125
     Income Taxes                                    146,132            92,072
     Net Income                                      224,775           172,244
     Preferred stock dividend requirements             1,476             8,691
     Earnings for Common Stock                      $223,299          $163,553
 
     Basic Earnings Per Common Share                   $1.63             $1.22
     Diluted Earnings Per Common Share                 $1.61             $1.22
 
 
     Average Common Shares Outstanding (000)         136,961           133,873
 
     Average Common Shares Outstanding --
      Diluted (000)                                  138,503           134,117
 
                         KeySpan Corporation - Segment
                                  Information
                       Three Months Ended March 31, 2001
                           (In Thousands of Dollars)
 
                                              Energy Investments
                                                   Gas
                                           Exploration
                           Gas   Electric            &       Other      Energy
                  Distribution   Services   Production
 Investments    Services
 
      Revenues       1,753,793    343,372      130,706      94,591      328,053
 
      Operation
        Expenses
      Purchased
        Gas          1,105,309         --           --       2,739       89,310
 
      Purchased
        Fuel                --      82,194          --          --       63,973
 
      Operations
        and
        Maintenance    162,128     150,098      18,923      71,293      170,300
 
      Depreciation,
        Depletion
        and
        Amortization    67,460      12,567      33,633       9,972        3,039
 
      Operating
        Taxes           91,799      43,304         239       2,818           --
 
      Total
        Operating
        Expenses     1,426,696     288,163      52,795      86,822      326,622
 
      Operating
        Income         327,097      55,209      77,911       7,769        1,431
 
      Other
        Income
        &
        (Deductions)     4,152       2,971     (12,393)      4,708          528
 
      Income
        Before
        Interest
        Charges
        &
        Income
        Taxes          331,249      58,180      65,518      12,477        1,959
 
                   KeySpan Corporation - Segment Information
                       Three Months Ended March 31, 2001
                           (In Thousands of Dollars)
 
                                          Total
                                        Operating  Reconciliations    Total
                                         Segments                  Consolidated
 
      Revenues                          2,650,515    (8,880)      2,641,635
 
      Operation Expenses
      Purchased Gas                     1,197,358        --       1,197,358
 
      Purchased Fuel                      146,167        --         146,167
 
      Operations and Maintenance          572,742    (7,028)        565,714
 
      Depreciation, Depletion
       and Amortization                   126,671     4,424         131,095
 
      Operating Taxes                     138,160     3,486         141,646
 
      Total  Operating Expenses         2,181,098       882       2,181,980
 
      Operating Income                    469,417    (9,762)        459,655
 
      Other Income & (Deductions)            (34)      8,238          8,204
 
      Income Before Interest
         Charges & Income Taxes           469,383    (1,524)        467,859
 
                   KeySpan Corporation - Segment Information
                       Three Months Ended March 31, 2000
                           (In Thousands of Dollars)
 
                                            Energy Investments
                                               Gas
                                       Exploration
                        Gas   Electric           &      Other        Energy
               Distribution   Services  Production Investments     Services
 
      Revenues       804,703    334,404      49,376      1,511      126,480
 
      Operation
        Expenses
      Purchased
        Gas          374,632          0           0          0       34,415
 
      Purchased
        Fuel               0     67,877           0          0        2,700
 
      Operations
        and
        Maintenance  114,304    143,378      11,479      1,657       88,725
 
      Depreciation,
        Depletion
        and
        Amortizations 27,296     12,265      21,003        384        2,186
 
      Operating
        Taxes         75,496     39,490         538          5            0
 
      Total
        Operating
        Expenses     591,728    263,010      33,020      2,046       128,026
 
      Operating
        Income       212,975     71,394      16,356      (535)        (1,546)
 
      Other
        Income
        &
        (Deductions)   3,958        733     (2,613)      7,514           (17)
 
      Income
        Before
        Interest
        Charges
        &
        Income
        Taxes        216,933     72,127      13,743       6,979       (1,563)
 
                   KeySpan Corporation - Segment Information
                       Three Months Ended March 31, 2000
                           (In Thousands of Dollars)
 
                                     Total
                                   Operating    Reconciliations       Total
                                    Segments                       Consolidated
 
      Revenues                     1,316,474         139             1,316,613
 
      Operation Expenses
      Purchased Gas                  409,047           0               409,047
 
      Purchased Fuel                  70,577           0                70,577
 
      Operations and Maintenance     359,543     (4,064)               355,479
 
      Depreciation, Depletion
        and Amortizations             63,134       6,447                69,581
 
      Operating Taxes                115,529       (106)               115,423
 
      Total Operating Expenses     1,017,830       2,277             1,020,107
 
      Operating Income               298,644     (2,138)               296,506
 
      Other Income &
       (Deductions)                    9,575       2,360                11,935
 
      Income Before Interest
          Charges &
          Income Taxes               308,219         222               308,441
 
                     MAKE YOUR OPINION COUNT -- Click Here
                http://tbutton.prnewswire.com/prn/11690X24414317
 
 

SOURCE KeySpan Corporation
    NEW YORK, April 26 /PRNewswire/ -- KeySpan Corporation (NYSE:   KSE)
 announced today record first-quarter earnings for the period ended March 31,
 2001 of $223.3 million, or $1.63 per share, up 34% from $163.6 million, or
 $1.22 per share for the same period a year ago.  Diluted earnings per share
 were $1.61 for the first quarter 2001 compared to $1.22 for the first quarter
 last year.
     The increase in earnings reflects substantial contributions from our newly
 acquired gas distribution companies serving New England, solid growth by our
 New York and Long Island gas operations, and outstanding results by our gas
 exploration and production subsidiary, The Houston Exploration Company
 (NYSE:   THX).
     "We are very pleased that our strong first quarter was in line with our
 projections, which has set the stage for another excellent year in 2001,"
 comments KeySpan's Robert B. Catell, chairman and chief executive officer.
 "We continue to convert record numbers of heating customers from oil to gas in
 the Northeast and are successfully integrating the operations of our
 gas-distribution acquisitions.  We have established and are meeting growth
 objectives for all business segments.  While our business can be impacted by
 several factors, we believe that we have laid the groundwork to increase our
 2001 earnings forecast from our prior forecast of $2.60-$2.65 per share to
 approximately $2.70 per share."
     The results of our business segments will now be reported as Earnings
 Before Interest and Taxes (EBIT) in order to provide a better comparison of
 operating performance and to reflect the way we manage our business.  Major
 highlights of the first-quarter results include:
 
     * The gas-distribution businesses serving New York City, Long Island,
       Massachusetts and New Hampshire had EBIT in the first quarter of
       $331.2 million, compared to $216.9 million for the first quarter of
       2000. The increase primarily reflects the results of the seasonal nature
       of our gas-distribution companies in New England, which were acquired in
       November 2000. In addition, we continue to see significant gas-sales
       growth and a high level of conversions from oil to gas in New York and
       on Long Island.
 
     * The electric-services segment had EBIT of $58.2 million for the first
       quarter, as compared to $72.1 million in last year's first quarter. The
       decrease, in line with our internal forecast, was primarily due to lower
       ancillary services revenues and changes in the nature of certain state
       and local operating taxes.
 
     * Energy Services (KeySpan Services, Inc. and its subsidiaries) had EBIT
       of $2.0 million in the quarter, compared to an EBIT loss of $1.6 million
       in last year's first quarter. The increase reflects the contributions of
       our energy management businesses, primarily KeySpan Energy Supply, Inc.
       which provides energy procurement and fuel management to KeySpan
       affiliates. These results were partially offset by ongoing start-up
       projects and costs associated with certain newly acquired businesses.
 
     * The energy investments segment, which includes our gas exploration &
       production operations, as well as our gas processing & pipeline
       investments, had EBIT of $78.0 million for the first quarter, as
       compared to $20.7 million in last year's first quarter.
 
       - Gas exploration and production operations primarily from our 68%
         ownership in The Houston Exploration Company contributed $65.5 million
         to EBIT in the quarter, compared to $13.7 million in last year's first
         quarter. Our gas exploration and production activities benefited
         significantly from a 19% increase in production volumes and the
         substantial nationwide increase in natural-gas commodity prices.
         Houston Exploration has hedged up to 70% of this year's production.
 
       - KeySpan has investments in Canadian mid-stream gas processing plants,
         domestic and international pipelines, a gas distribution system in
         Northern Ireland, and an in-land barge business. These investments
         contributed $12.5 million in EBIT in the quarter, compared to
         $7.0 million last year. The increase reflects our increase in
         ownership from 50% to 100% in KeySpan Canada (formerly Gulf Midstream
         Services) on October 1, 2000, and a contribution from Midland
         Enterprises, an in-land barge business acquired in November 2000 as
         part of the Eastern Enterprises transaction.
 
     Earnings Outlook
 
     The acquisitions of Eastern Enterprises and EnergyNorth will increase the
 seasonal impact of our gas-distribution business.  As a result, we expect that
 approximately 60% of KeySpan's earnings for 2001 will be derived in the first
 quarter and 30%-to-35% in the fourth quarter of this year.  The other two
 quarters should be breakeven-to-modestly profitable.
     Looking to the future, Mr. Catell said, "We believe that we will be able
 to achieve double-digit earnings growth this year.  Gas sales growth continues
 at a strong pace in our Long Island and New England service areas.  Although
 New York's electric capacity is expected to be tight this summer, KeySpan is
 well prepared to meet the demands of the summer cooling season, with our
 generating facilities being well managed and maintained in top operating
 condition.  The Houston Exploration Company has large proved reserves, has
 increased production and has made significant gas discoveries.  As a result of
 this positive outlook, we are projecting earnings of approximately $2.70 per
 share for 2001.  However, this projection may change as the year progresses,
 as our business is affected by several factors including weather and commodity
 prices.  We will keep shareholders informed of any significant developments
 that may affect this forecast."
     A member of the Standard & Poor's 500 index, KeySpan Corporation
 (NYSE:   KSE) is the largest distributor of natural gas in the Northeast, with
 2.5 million gas customers and more than 13,000 employees.  KeySpan is also the
 largest investor-owned electric generator in New York State and operates Long
 Island's electric system under contract with the Long Island Power Authority
 for its 1.1 million customers.  With headquarters in Brooklyn, Boston and Long
 Island, KeySpan also manages a dynamic portfolio of service companies.  They
 include: KeySpan Energy Delivery, the group of regulated natural gas
 utilities; KeySpan Home Energy Services, a group of energy product, repair and
 services companies for residential and small commercial business customers;
 and KeySpan Business Solutions, a full-service group of energy product, repair
 and services companies for larger business customers.  KeySpan also has
 strategic investments in natural-gas exploration and production, pipeline
 transportation, distribution and storage, Canadian gas processing and fiber-
 optic cable. For more information about the company, visit KeySpan's Web site
 at: http://www.keyspanenergy.com
 
     Certain statements contained herein are forward-looking statements, which
 reflect numerous assumptions and involve a number of risks and uncertainties.
 Actual results may differ materially from those discussed in such statements.
 Among the factors that could cause actual results to differ materially are:
 general economic trends; fluctuations in gas and electric prices; available
 sources and costs of fuel; State and Federal regulatory initiatives that
 increase competition, threaten cost and investment recovery, and impact rate
 structures; the ability of the company to successfully reduce its cost
 structure; the ability of the company to successfully integrate acquired
 operations; the degree to which the company develops non-regulated business
 ventures; the effect of inflationary trends and increases in interest rates;
 and risks detailed from time to time in reports and other documents filed by
 the company with the Securities and Exchange Commission.
 
     Earnings Conference Call: Investors are invited to participate in the
 KeySpan Corporation 2001 First Quarter Earnings Conference Call on Thursday,
 April 26, at 11:30 a.m. (EST)
 
     Dial Number: 888-552-7850
     Replay Number: 800-642-1687
     Access Code: 458761
     AudioCast: http://www.investor.keyspanenergy.com
 
 
                                KeySpan Corporation
                          Consolidated Summary of Earnings
                (In Thousands of Dollars, Except Per Share Amounts)
 
                                          Three Months Ended Three Months Ended
                                               3/31/2001         3/31/2000
 
     Revenues
       Gas Distribution                           $1,753,793          $804,703
       Electric Services                             343,372           334,404
       Energy Services                               319,173           126,480
       Energy Investments                            225,297            51,026
     Total Revenues                                2,641,635         1,316,613
 
     Operating Expenses
       Purchased gas for resale                    1,197,358           409,047
       Fuel and purchased power                      146,167            70,577
       Operations and maintenance                    565,714           355,479
       Depreciation, depletion and
        amortization                                 131,095            69,581
       Operating taxes                               141,646           115,423
     Total Operating Expenses                      2,181,980         1,020,107
     Operating Income                                459,655           296,506
 
     Other Income and (Deductions)                     8,204            11,935
     Income Before Interest
       Charges & Income Taxes                        467,859           308,441
 
     Interest Charges                                 96,952            44,125
     Income Taxes                                    146,132            92,072
     Net Income                                      224,775           172,244
     Preferred stock dividend requirements             1,476             8,691
     Earnings for Common Stock                      $223,299          $163,553
 
     Basic Earnings Per Common Share                   $1.63             $1.22
     Diluted Earnings Per Common Share                 $1.61             $1.22
 
 
     Average Common Shares Outstanding (000)         136,961           133,873
 
     Average Common Shares Outstanding --
      Diluted (000)                                  138,503           134,117
 
                         KeySpan Corporation - Segment
                                  Information
                       Three Months Ended March 31, 2001
                           (In Thousands of Dollars)
 
                                              Energy Investments
                                                   Gas
                                           Exploration
                           Gas   Electric            &       Other      Energy
                  Distribution   Services   Production
 Investments    Services
 
      Revenues       1,753,793    343,372      130,706      94,591      328,053
 
      Operation
        Expenses
      Purchased
        Gas          1,105,309         --           --       2,739       89,310
 
      Purchased
        Fuel                --      82,194          --          --       63,973
 
      Operations
        and
        Maintenance    162,128     150,098      18,923      71,293      170,300
 
      Depreciation,
        Depletion
        and
        Amortization    67,460      12,567      33,633       9,972        3,039
 
      Operating
        Taxes           91,799      43,304         239       2,818           --
 
      Total
        Operating
        Expenses     1,426,696     288,163      52,795      86,822      326,622
 
      Operating
        Income         327,097      55,209      77,911       7,769        1,431
 
      Other
        Income
        &
        (Deductions)     4,152       2,971     (12,393)      4,708          528
 
      Income
        Before
        Interest
        Charges
        &
        Income
        Taxes          331,249      58,180      65,518      12,477        1,959
 
                   KeySpan Corporation - Segment Information
                       Three Months Ended March 31, 2001
                           (In Thousands of Dollars)
 
                                          Total
                                        Operating  Reconciliations    Total
                                         Segments                  Consolidated
 
      Revenues                          2,650,515    (8,880)      2,641,635
 
      Operation Expenses
      Purchased Gas                     1,197,358        --       1,197,358
 
      Purchased Fuel                      146,167        --         146,167
 
      Operations and Maintenance          572,742    (7,028)        565,714
 
      Depreciation, Depletion
       and Amortization                   126,671     4,424         131,095
 
      Operating Taxes                     138,160     3,486         141,646
 
      Total  Operating Expenses         2,181,098       882       2,181,980
 
      Operating Income                    469,417    (9,762)        459,655
 
      Other Income & (Deductions)            (34)      8,238          8,204
 
      Income Before Interest
         Charges & Income Taxes           469,383    (1,524)        467,859
 
                   KeySpan Corporation - Segment Information
                       Three Months Ended March 31, 2000
                           (In Thousands of Dollars)
 
                                            Energy Investments
                                               Gas
                                       Exploration
                        Gas   Electric           &      Other        Energy
               Distribution   Services  Production Investments     Services
 
      Revenues       804,703    334,404      49,376      1,511      126,480
 
      Operation
        Expenses
      Purchased
        Gas          374,632          0           0          0       34,415
 
      Purchased
        Fuel               0     67,877           0          0        2,700
 
      Operations
        and
        Maintenance  114,304    143,378      11,479      1,657       88,725
 
      Depreciation,
        Depletion
        and
        Amortizations 27,296     12,265      21,003        384        2,186
 
      Operating
        Taxes         75,496     39,490         538          5            0
 
      Total
        Operating
        Expenses     591,728    263,010      33,020      2,046       128,026
 
      Operating
        Income       212,975     71,394      16,356      (535)        (1,546)
 
      Other
        Income
        &
        (Deductions)   3,958        733     (2,613)      7,514           (17)
 
      Income
        Before
        Interest
        Charges
        &
        Income
        Taxes        216,933     72,127      13,743       6,979       (1,563)
 
                   KeySpan Corporation - Segment Information
                       Three Months Ended March 31, 2000
                           (In Thousands of Dollars)
 
                                     Total
                                   Operating    Reconciliations       Total
                                    Segments                       Consolidated
 
      Revenues                     1,316,474         139             1,316,613
 
      Operation Expenses
      Purchased Gas                  409,047           0               409,047
 
      Purchased Fuel                  70,577           0                70,577
 
      Operations and Maintenance     359,543     (4,064)               355,479
 
      Depreciation, Depletion
        and Amortizations             63,134       6,447                69,581
 
      Operating Taxes                115,529       (106)               115,423
 
      Total Operating Expenses     1,017,830       2,277             1,020,107
 
      Operating Income               298,644     (2,138)               296,506
 
      Other Income &
       (Deductions)                    9,575       2,360                11,935
 
      Income Before Interest
          Charges &
          Income Taxes               308,219         222               308,441
 
                     MAKE YOUR OPINION COUNT -- Click Here
                http://tbutton.prnewswire.com/prn/11690X24414317
 
 SOURCE  KeySpan Corporation