Mirant Reports 84 Percent Increase for First Quarter 2001 Earnings

Apr 25, 2001, 01:00 ET from Mirant Corporation

    ATLANTA, April 25 /PRNewswire/ -- Mirant Corp. (NYSE:   MIR) today announced
 record first quarter 2001 earnings from continuing operations of $175 million
 or 51 cents per diluted share, compared with $95 million or 27 cents per
 diluted share in the first quarter of 2000.
     Earnings from continuing operations exclude income from SE Finance, a
 leasing subsidiary transferred to Southern Company on March 5, 2001.  The
 company's reported net income for the first quarter of 2001 is $180 million,
 including the $5 million contribution from SE Finance.
     "First quarter results reflect a combination of an increasingly successful
 and sustained North American energy business, continued strong contributions
 from our international business groups, and extraordinary commodity prices and
 volatility in both natural gas and power markets," said Marce Fuller,
 president and chief executive officer of Mirant.  "We are pleased with these
 results, especially given that they reflect no net earnings contribution from
 our California assets, because of the significant provisions made by the
 company, due to the uncertainties in the California market."
 
     Earnings Guidance
     Mirant raised its yearly earnings guidance for 2001 to $1.90 per share, up
 from $1.55 to $1.60 per share.  As a result of continued strength in the North
 American energy market, Mirant expects to grow 20 percent to 25 percent
 through next year from a $1.90 per share.  Beyond 2002, Mirant expects that
 its North American development plan and future acquisitions will allow the
 company to grow its earnings per share by 20 percent, through 2005.
 
     The Americas
     Mirant's Americas group contributed 49 cents per diluted share to earnings
 in the first quarter of 2001, compared with nearly break-even results in the
 first quarter of 2000.
     The group's overall performance reflects a significant increase in gas
 marketing volumes across North America. Strong performance from its Northeast
 power business and its recently acquired mid-Atlantic assets have also
 positively impacted earnings.
     As of March 31, 2001, the total amount owed to Mirant by the California
 Independent System Operator and the California Power Exchange was $392
 million.  In the first quarter of 2001, Mirant provided for $245 million in
 relation to uncertainties in the California power market.  The total amount of
 provisions made for during 2000 and 2001 in relation to these uncertainties is
 $295 million.
     "Mirant remains committed to supplying power and entering into long-term
 contracts with creditworthy entities in California," Fuller said.  "We are
 dedicated to being an active participant in the search for a long-term
 solution."
     The company has seen exceptional results from the integration of its
 generation assets with its energy risk management and marketing operation.
 Mirant is one of the leading natural gas and power marketers in the U.S.  In
 the first quarter of 2001, Mirant moved 44 percent more natural gas and sold
 21 percent more electricity than in the first quarter of 2000.
     Mirant expects to bring online approximately 700 megawatts of new
 generating capacity this summer.  This new generation includes a 300-megawatt
 greenfield plant in Michigan and a 150-megawatt facility in Louisiana, both
 expected to come online in June.  Also included in the 700 megawatts, Mirant's
 Texas business unit plans to bring online an additional 250 megawatts that
 will be sold into the Northern Texas market.  All of these plants should
 contribute immediately to earnings.  In the West, Mirant has broken ground on
 a 1,100-megawatt plant at the Apex Industrial Park outside of Las Vegas,
 Nevada that would serve one of the fastest growing markets in the nation.
     Mirant recently acquired 80 percent of the Jamaica Public Service Company,
 adding 660 megawatts of generating capacity to its portfolio.  The company has
 invested approximately $200 million in the acquisition and plans to expand the
 existing facility by 105 megawatts over the next two years.  The transaction
 is expected to contribute 3 to 4 cents to annual earnings per diluted share
 during 2001 and 10 cents by 2005.
     In North America, Mirant has more than 12,000 megawatts of operating
 capacity, with 9,000 megawatts under development.  The company plans to
 increase its generating capacity to a total of 30,000 megawatts to 35,000
 megawatts by 2005.
     "The success of our integrated business model throughout North America has
 been outstanding," Fuller said.  "We plan to continue expanding our North
 American asset base and optimize that growth through sophisticated gas and
 power marketing."
 
     Europe
     Mirant's European group contributed 7 cents per diluted share to earnings
 in the first quarter of 2001, compared with 9 cents per diluted share in the
 first quarter of 2000.
     In recent months, the group successfully completed much of the
 restructuring and refinancing of its Hyder acquisition and the full
 integration of the SWALEC distribution company.  Mirant also received
 approvals for the Dyr Cymru buyout of Hyder's water business. The Hyder
 acquisition immediately increased Mirant's earnings per diluted share.
     Contributions from Mirant's investment in Bewag, the German utility,
 increased in the first quarter of 2001, when compared with the same quarter of
 2000.  Mirant remains focused on expanding its 26 percent ownership stake.
 Mirant hopes to achieve joint management control of Bewag with HEW, the
 Hamburg-based utility.  Assuming the transaction is completed, Mirant
 currently expects this investment to increase earnings per share.
     Although Mirant continues to see strong contributions from its European
 assets, the decrease in overall European earnings reflects increased
 development costs throughout Europe and losses by the company's energy risk
 management and marketing operation in Amsterdam.
     "In Europe we are actively pursuing opportunities to expand our asset
 base," Fuller said.  "As this business unit grows, we hope to see success
 similar to that of our Americas group through implementation of an integrated
 business strategy."
 
     Asia-Pacific
     Mirant's Asia-Pacific group contributed 14 cents per diluted share to
 earnings in the first quarter of 2001, compared with 24 cents per diluted
 share in the first quarter of 2000.  The group's operating income in the first
 of quarter 2001 increased by $2 million, after excluding a first quarter 2000
 settlement of a dispute related to the Shajiao C facility.  The group's
 earnings also reflect an increased Philippine tax provisions.
     Mirant's Asia-Pacific group continues to generate significant cash flow
 and is currently seeking opportunities to expand its operations into
 Singapore.  Also, Mirant is seeking entry opportunities into Korea and
 possibly Japan through smaller acquisitions.  The company hopes to build
 relationships with partners that will find value in Mirant's existing
 operational strength and provide Mirant with diverse market knowledge and
 experience.
     "As privatization progresses throughout Asia, we are targeting markets
 where we expect that a competitive business model will succeed," Fuller said.
 "We will tailor our investments to the current market structure in Asia -
 using our proven competitive business expertise to add value to these
 investments and future partnerships."
 
     Corporate
     Corporate expenses reduced first quarter earnings by 19 cents per diluted
 share, compared with 5 cents per diluted share in the first quarter of 2000.
 This increase in corporate costs primarily resulted from increased interest on
 corporate borrowings, stock-related compensation expense, income taxes and
 various other corporate expenses.
     On April 2, 2001, Mirant stock was distributed to Southern Company
 shareholders, making Mirant a fully independent, publicly traded entity.  On
 the day of the spin-off, Standard & Poor's added Mirant to its premier index,
 the S&P 500.
     Mirant will host an analyst call at 1 p.m.(EDT), April 26, 2001, to
 discuss first quarter earnings results for its three business units, general
 business updates and expectations, and issues surrounding the California and
 European power markets.  The call will be webcasted from the company's Web
 site at www.mirant.com.  The webcast will be available for replay on the Web
 site seven days after the call.  Mirant will also provided historical,
 quarterly information on its Investor Relations page.
     Mirant [Pronounced: MEER-unt] is a global, competitive energy company with
 a leading position in both power generation and energy risk management and
 marketing.  With an integrated business model, Mirant develops, constructs,
 owns and operates power plants and sells wholesale electricity, natural gas
 and other energy commodities.  Headquartered in Atlanta, with 8,000 employees
 worldwide, Mirant has extensive operations in North America, Europe and Asia.
 Mirant owns or controls more than 20,000 megawatts of electric generation
 capacity around the world, with another 9,000 megawatts under development.
 Mirant also controls an extensive natural gas asset base in North America,
 including transportation, storage and access to approximately 3.7 billion
 cubic feet per day of gas production.
 
     Special note regarding forward-looking statements:
     The information presented above includes forward-looking statements, in
 addition to historical information.  These statements involve known and
 unknown risks and relate to future events, Mirant's future financial
 performance or projected business results.  In some cases, forward-looking
 statements by terminology may be identified by statements such as "may,"
 "will," "should," "expects," "plans," "anticipates," "believes," "estimates,"
 "predicts," "targets," "potential," "guidance" or "continue" or the negative
 of these terms or other comparable terminology.
     Forward-looking statements are only predictions.  Actual events or results
 may differ materially from any forward-looking statement as a result of
 various factors, which include: (i) legislative and regulatory initiatives
 regarding deregulation and restructuring of the electric utility industry;
 (ii) the extent and timing of the entry of additional competition in the
 markets of Mirant's subsidiaries and affiliates; (iii) Mirant's pursuit of
 potential business strategies, including acquisitions or dispositions of
 assets or internal restructuring; (iv) state, federal and other rate
 regulations in the United States and in foreign countries in which Mirant's
 subsidiaries and affiliates operate; (v) changes in or application of
 environmental and other laws and regulations to which Mirant and its
 subsidiaries and affiliates are subject; (vi) political, legal and economic
 conditions and developments in the United States and in foreign countries in
 which Mirant's subsidiaries and affiliates operate; (vii) financial market
 conditions and the results of Mirant's financing efforts; changes in commodity
 prices and interest rates; weather and other natural phenomena; (viii)
 performance of Mirant's projects undertaken and the success of efforts to
 invest in and develop new opportunities; (ix) unanticipated developments in
 the California power markets, including, but not limited to, unanticipated
 governmental intervention, deterioration in the financial condition of
 counterparties, default on amounts due, adverse results in current or future
 litigation and adverse changes in the tariffs of the California Power Exchange
 Corporation or California Independent System Operator Corporation, and (x)
 other factors, including the risks outlined under "Risk Factors" in filings
 with the SEC.
     Although Mirant believes that the expectations reflected in the forward-
 looking statements are reasonable, Mirant cannot guarantee future results,
 events, levels of activity, performance or achievements.  Mirant does not
 undertake a duty to update any of the forward-looking statements.
 
 
                        MIRANT CORPORATION AND SUBSIDIARIES
                   CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
 
                                                       For the Three Months
                                                           Ended March 31,
                                                        2001              2000
                                                            (in millions)
 
     Operating Revenues                               $8,182              $519
 
     Operating Expenses:
     Cost of fuel, electricity and other
      products                                         7,381               155
     Maintenance                                          28                30
     Depreciation and amortization                        88                83
     Selling, general, and administrative                325                30
     Other                                                81                52
       Total operating expenses                        7,903               350
     Operating Income                                    279               169
     Other Income (Expense):
     Interest income                                      50                38
     Interest expense                                   (143)             (146)
     Equity in income of affiliates                       79                27
     Receivables recovery                                 10               ---
     Other, net                                            6                 6
       Total other income (expense)                        2               (75)
     Income From Continuing Operations
      Before
       Income Taxes and Minority Interest                281                94
     Provision (Benefit) for Income Taxes                 92               (31)
     Minority Interest                                    14                30
     Income From Continuing Operations                   175                95
     Income from Discontinued Operations
      After
       Income Taxes and Minority Interest                  5                 6
     Net Income                                         $180              $101
 
     Notes:
     (1)  Certain prior-year data has been reclassified to conform with the
     current-year presentation.
     (2)  Basic Earnings Per Share from Continuing Operations for the three
     months ended March 31, 2001 and 2000 were $0.52 and $0.35, respectively,
     based on the weighted average of 338,724,679 and 272,000,000 shares of
     common stock outstanding.
     (3)  Diluted Earnings Per Share from Continuing Operations for the three
     months ended March 31, 2001 was $0.51. Pro Forma Diluted Earnings Per
     Share from Continuing Operations for the three months ended March 31, 2000
     was $0.27.
 
 
 
                       MIRANT CORPORATION AND SUBSIDIARIES
              EARNINGS AND PRO FORMA EARNINGS PER SHARE (UNAUDITED)
 
 
 
                                                     For the Three Months
                                                        Ended March 31,
                                                 2001        2000     % Change
     Consolidated Earnings (in millions)
     As Reported                                 $180        $101        78%
     As Reported from Continuing
      Operations                                  175          95        84%
     From Operations                             $175         $95        84%
 
 
      Diluted Earnings Per Share (Pro
       Forma for 2000):
     Average number of shares of common
      stock outstanding (in millions)           354.1       352.2
     Additions to Income for Pro Forma
      Diluted Earnings Per Share (in
      millions)                                    $4        $---
 
     Consolidated Earnings Per Share
     As Reported                                $0.52       $0.29        79%
     As Reported from Continuing
      Operations                                 0.51        0.27        89%
     From Operations                            $0.51       $0.27        89%
 
     Contributions to Diluted Earnings Per
      Share by Group
       Asia-Pacific                             $0.14       $0.24       -42%
       Europe                                    0.07        0.09       -22%
       Americas                                  0.49       (0.01)        NM
       Corporate                                (0.19)      (0.05)      280%
     From Continuing Operations                 $0.51       $0.27        89%
       Discontinued Operations                   0.01        0.02       -50%
 
     Basic Earnings Per Share (Pro Forma
      for 2000):
     Average number of shares of common
      stock outstanding (in millions)           338.7       338.7
 
     Consolidated Earnings
     As Reported                                $0.53       $0.30        77%
     As Reported from Continuing
      Operations                                 0.52        0.28        86%
     From Operations                            $0.52       $0.28        86%
 
     NM = Not Meaningful
 
 
 
                        MIRANT CORPORATION AND SUBSIDIARIES
                     EARNINGS AND PRO FORMA EARNINGS PER SHARE
                    AS REPORTED AND FROM OPERATIONS (UNAUDITED)
 
                                          Quarter Quarter Quarter Quarter Year
     2001                                      1      2      3      4
     Consolidated Earnings (in millions)
     As Reported                              $180   $---   $---   $---   $180
       Discontinued Operations                  (5)   ---    ---    ---     (5)
     As Reported from Continuing Operations    175    ---    ---    ---    175
     From Operations                          $175   $---   $---   $---   $175
 
     2000
     Consolidated Earnings (in millions)
     As Reported                              $101    $93    $98    $67   $359
     Discontinued Operations                    (6)    (7)    (7)    (7)   (27)
     As Reported from Continuing Operations     95     86     91     60    332
     Adjustment for Costs Related to
      Transitioning to a Public Company        ---    ---     28      6     34
     From Operations                           $95    $86   $119    $66   $366
 
     Diluted Earnings Per Share (Pro Forma
      for 2000):
     2001
     Number of shares of common stock
      outstanding (in millions)              354.1                       354.1
     Additions to Income for Diluted
      Earnings Per Share (in millions)          $4   $---   $---   $---     $4
     Diluted Earnings Per Share
     As Reported                             $0.52   $---   $---   $---  $0.52
     As Reported from Continuing Operations  $0.51   $---   $---   $---  $0.51
     From Operations                         $0.51   $---   $---   $---  $0.51
 
     2000
     Number of shares of common stock
      outstanding (in millions)              352.2  352.2  352.6  354.0  353.1
     Additions to Income  (in millions)       $---     $1     $5     $4    $10
     Pro Forma Diluted Earnings Per Share
     As Reported                             $0.29  $0.27  $0.29  $0.20  $1.05
     As Reported from Continuing Operations  $0.27  $0.25  $0.27  $0.18  $0.97
     From Operations                         $0.27  $0.25  $0.35  $0.20  $1.07
 
     Basic Earnings Per Share (Pro Forma for
      2000):
     Number of shares of common stock
      outstanding (in millions)              338.7  338.7  338.7  338.7  338.7
     2001
     Basic Earnings Per Share Based on
      Consolidated Earnings
     As Reported                             $0.53   $---   $---   $---  $0.53
     Discontinued Operations                 (0.01)   ---    ---    ---  (0.01)
     As Reported from Continuing Operations   0.52    ---    ---    ---   0.52
     From Operations                         $0.52   $---   $---   $---  $0.52
 
     2000
     Pro Forma Basic Earnings Per Share
      Based on Consolidated Earnings
     As Reported                             $0.30  $0.27  $0.29  $0.20  $1.06
     Discontinued Operations                 (0.02) (0.02) (0.02) (0.02) (0.08)
     As Reported from Continuing Operations   0.28   0.25   0.27   0.18   0.98
     Adjustment for Costs Related to
      Transitioning to a Public Company        ---    ---   0.08   0.02   0.10
     From Operations                         $0.28  $0.25  $0.35  $0.20  $1.08
 
 
 
                        MIRANT CORPORATION AND SUBSIDIARIES
                        FINANCIAL DATA BY GROUP (UNAUDITED)
                 FOR THE THREE MONTHS ENDED MARCH 31, 2001 AND 2000
 
 
                                                              Americas
                                                        2001             2000
                                                            (in millions)
     Operating Revenues
       Generation and energy marketing                $8,053             $240
       Distribution & integrated utilities                36               40
       Other                                             ---              ---
     Total operating revenues                          8,089              280
 
     Operating Expenses:
       Cost of fuel, electricity and other
        products                                       7,368              145
       Depreciation and amortization                      54               26
       Other operating expenses                          349               78
       Total operating expenses                        7,771              249
     Operating Income (Loss)                             318               31
 
     Other Income (Expense)
       Interest income (expense)                         (39)             (34)
       Equity in income of affiliates                      6               (4)
       Other                                               8                5
 
     Income (Loss) From Continuing
      Operations Before Income Taxes and Minority
       Interest                                          293               (2)
     Provision (Benefit) for Income Taxes                119                6
     Minority Interest                                     1               (5)
     Income (Loss) From Continuing
      Operations                                         173               (3)
 
     Income From Discontinued Operations,
       Net of Tax Benefit                                ---              ---
     Net Income (Loss)                                  $173              $(3)
 
 
     Energy Volumes
                                                    Americas
                                             2001       2000    Change
     Power (MM MWh)                          65.6       54.2    21%
     Natural Gas (Bcf/d)  (a)                12.8        8.9    44%
 
      (a) Volumes include all volumes reported on GMS, including transfers
      between subsidiaries and intracompany transfers (2000 restated).
 
 
                        MIRANT CORPORATION AND SUBSIDIARIES
                        FINANCIAL DATA BY GROUP (UNAUDITED)
                 FOR THE THREE MONTHS ENDED MARCH 31, 2001 AND 2000
 
 
                                                               Europe
                                                       2001              2000
 
     Operating Revenues
       Generation and energy marketing                 $(36)             $---
       Distribution & integrated utilities              ---               111
       Other                                            ---               ---
     Total operating revenues                           (36)              111
 
     Operating Expenses:
       Cost of fuel, electricity and other
        products                                         11                10
       Depreciation and amortization                    ---                24
       Other operating expenses                           9                25
       Total operating expenses                          20                59
     Operating Income (Loss)                            (56)               52
 
     Other Income (Expense)
       Interest income (expense)                         (4)              (27)
       Equity in income of affiliates                    63                14
       Other                                             (2)                1
 
     Income (Loss) From Continuing
      Operations Before Income Taxes and Minority
       Interest                                           1                40
     Provision (Benefit) for Income Taxes               (23)              (17)
     Minority Interest                                  ---                26
     Income (Loss) From Continuing
      Operations                                         24                31
 
     Income From Discontinued Operations,
       Net of Tax Benefit                               ---               ---
     Net Income (Loss)                                  $24               $31
 
 
                        MIRANT CORPORATION AND SUBSIDIARIES
                        FINANCIAL DATA BY GROUP (UNAUDITED)
                 FOR THE THREE MONTHS ENDED MARCH 31, 2001 AND 2000
 
 
                                                            Asia-Pacific
                                                       2001              2000
 
     Operating Revenues
       Generation and energy marketing                 $123              $123
       Distribution & integrated utilities              ---               ---
       Other                                              6                 3
     Total operating revenues                           129               126
 
     Operating Expenses:
       Cost of fuel, electricity and other
        products                                          2               ---
       Depreciation and amortization                     33                33
       Other operating expenses                          27                (2)
       Total operating expenses                          62                31
     Operating Income (Loss)                             67                95
 
     Other Income (Expense)
       Interest income (expense)                        (25)              (28)
       Equity in income of affiliates                    10                17
       Other                                             10               ---
 
     Income (Loss) From Continuing
      Operations Before Income Taxes and Minority
       Interest                                          62                84
     Provision (Benefit) for Income Taxes                 3                (8)
     Minority Interest                                    8                 9
     Income (Loss) From Continuing
      Operations                                         51                83
 
     Income From Discontinued Operations,
       Net of Tax Benefit                               ---               ---
     Net Income (Loss)                                  $51               $83
 
 
 
 
                        MIRANT CORPORATION AND SUBSIDIARIES
                        FINANCIAL DATA BY GROUP (UNAUDITED)
                 FOR THE THREE MONTHS ENDED MARCH 31, 2001 AND 2000
 
                                                           Corporate and
                                                            Eliminations
                                                       2001              2000
 
     Operating Revenues
       Generation and energy marketing                 $---              $---
       Distribution & integrated utilities              ---               ---
       Other                                            ---                 2
     Total operating revenues                           ---                 2
 
     Operating Expenses:
       Cost of fuel, electricity and other
        products                                        ---               ---
       Depreciation and amortization                      1               ---
       Other operating expenses                          49                11
       Total operating expenses                          50                11
     Operating Income (Loss)                            (50)               (9)
 
     Other Income (Expense)
       Interest income (expense)                        (25)              (19)
       Equity in income of affiliates                   ---               ---
       Other                                            ---               ---
 
     Income (Loss) From Continuing
      Operations Before Income Taxes and Minority
       Interest                                         (75)              (28)
     Provision (Benefit) for Income Taxes                (7)              (12)
     Minority Interest                                    5               ---
     Income (Loss) From Continuing
      Operations                                        (73)              (16)
 
     Income From Discontinued Operations,
       Net of Tax Benefit                                 5                 6
     Net Income (Loss)                                 $(68)             $(10)
 
 
 
 
                        MIRANT CORPORATION AND SUBSIDIARIES
                        FINANCIAL DATA BY GROUP (UNAUDITED)
                 FOR THE THREE MONTHS ENDED MARCH 31, 2001 AND 2000
 
 
                                                            Consolidated
                                                        2001             2000
 
     Operating Revenues
       Generation and energy marketing                $8,140             $363
       Distribution & integrated utilities                36              151
       Other                                               6                5
     Total operating revenues                          8,182              519
 
     Operating Expenses:
       Cost of fuel, electricity and other
        products                                       7,381              155
       Depreciation and amortization                      88               83
       Other operating expenses                          434              112
       Total operating expenses                        7,903              350
     Operating Income (Loss)                             279              169
 
     Other Income (Expense)
       Interest income (expense)                         (93)            (108)
       Equity in income of affiliates                     79               27
       Other                                              16                6
 
     Income (Loss) From Continuing
      Operations Before Income Taxes and Minority
       Interest                                          281               94
     Provision (Benefit) for Income Taxes                 92              (31)
     Minority Interest                                    14               30
     Income (Loss) From Continuing
      Operations                                         175               95
 
     Income From Discontinued Operations,
       Net of Tax Benefit                                  5                6
     Net Income (Loss)                                  $180             $101
 
 
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SOURCE Mirant Corporation
    ATLANTA, April 25 /PRNewswire/ -- Mirant Corp. (NYSE:   MIR) today announced
 record first quarter 2001 earnings from continuing operations of $175 million
 or 51 cents per diluted share, compared with $95 million or 27 cents per
 diluted share in the first quarter of 2000.
     Earnings from continuing operations exclude income from SE Finance, a
 leasing subsidiary transferred to Southern Company on March 5, 2001.  The
 company's reported net income for the first quarter of 2001 is $180 million,
 including the $5 million contribution from SE Finance.
     "First quarter results reflect a combination of an increasingly successful
 and sustained North American energy business, continued strong contributions
 from our international business groups, and extraordinary commodity prices and
 volatility in both natural gas and power markets," said Marce Fuller,
 president and chief executive officer of Mirant.  "We are pleased with these
 results, especially given that they reflect no net earnings contribution from
 our California assets, because of the significant provisions made by the
 company, due to the uncertainties in the California market."
 
     Earnings Guidance
     Mirant raised its yearly earnings guidance for 2001 to $1.90 per share, up
 from $1.55 to $1.60 per share.  As a result of continued strength in the North
 American energy market, Mirant expects to grow 20 percent to 25 percent
 through next year from a $1.90 per share.  Beyond 2002, Mirant expects that
 its North American development plan and future acquisitions will allow the
 company to grow its earnings per share by 20 percent, through 2005.
 
     The Americas
     Mirant's Americas group contributed 49 cents per diluted share to earnings
 in the first quarter of 2001, compared with nearly break-even results in the
 first quarter of 2000.
     The group's overall performance reflects a significant increase in gas
 marketing volumes across North America. Strong performance from its Northeast
 power business and its recently acquired mid-Atlantic assets have also
 positively impacted earnings.
     As of March 31, 2001, the total amount owed to Mirant by the California
 Independent System Operator and the California Power Exchange was $392
 million.  In the first quarter of 2001, Mirant provided for $245 million in
 relation to uncertainties in the California power market.  The total amount of
 provisions made for during 2000 and 2001 in relation to these uncertainties is
 $295 million.
     "Mirant remains committed to supplying power and entering into long-term
 contracts with creditworthy entities in California," Fuller said.  "We are
 dedicated to being an active participant in the search for a long-term
 solution."
     The company has seen exceptional results from the integration of its
 generation assets with its energy risk management and marketing operation.
 Mirant is one of the leading natural gas and power marketers in the U.S.  In
 the first quarter of 2001, Mirant moved 44 percent more natural gas and sold
 21 percent more electricity than in the first quarter of 2000.
     Mirant expects to bring online approximately 700 megawatts of new
 generating capacity this summer.  This new generation includes a 300-megawatt
 greenfield plant in Michigan and a 150-megawatt facility in Louisiana, both
 expected to come online in June.  Also included in the 700 megawatts, Mirant's
 Texas business unit plans to bring online an additional 250 megawatts that
 will be sold into the Northern Texas market.  All of these plants should
 contribute immediately to earnings.  In the West, Mirant has broken ground on
 a 1,100-megawatt plant at the Apex Industrial Park outside of Las Vegas,
 Nevada that would serve one of the fastest growing markets in the nation.
     Mirant recently acquired 80 percent of the Jamaica Public Service Company,
 adding 660 megawatts of generating capacity to its portfolio.  The company has
 invested approximately $200 million in the acquisition and plans to expand the
 existing facility by 105 megawatts over the next two years.  The transaction
 is expected to contribute 3 to 4 cents to annual earnings per diluted share
 during 2001 and 10 cents by 2005.
     In North America, Mirant has more than 12,000 megawatts of operating
 capacity, with 9,000 megawatts under development.  The company plans to
 increase its generating capacity to a total of 30,000 megawatts to 35,000
 megawatts by 2005.
     "The success of our integrated business model throughout North America has
 been outstanding," Fuller said.  "We plan to continue expanding our North
 American asset base and optimize that growth through sophisticated gas and
 power marketing."
 
     Europe
     Mirant's European group contributed 7 cents per diluted share to earnings
 in the first quarter of 2001, compared with 9 cents per diluted share in the
 first quarter of 2000.
     In recent months, the group successfully completed much of the
 restructuring and refinancing of its Hyder acquisition and the full
 integration of the SWALEC distribution company.  Mirant also received
 approvals for the Dyr Cymru buyout of Hyder's water business. The Hyder
 acquisition immediately increased Mirant's earnings per diluted share.
     Contributions from Mirant's investment in Bewag, the German utility,
 increased in the first quarter of 2001, when compared with the same quarter of
 2000.  Mirant remains focused on expanding its 26 percent ownership stake.
 Mirant hopes to achieve joint management control of Bewag with HEW, the
 Hamburg-based utility.  Assuming the transaction is completed, Mirant
 currently expects this investment to increase earnings per share.
     Although Mirant continues to see strong contributions from its European
 assets, the decrease in overall European earnings reflects increased
 development costs throughout Europe and losses by the company's energy risk
 management and marketing operation in Amsterdam.
     "In Europe we are actively pursuing opportunities to expand our asset
 base," Fuller said.  "As this business unit grows, we hope to see success
 similar to that of our Americas group through implementation of an integrated
 business strategy."
 
     Asia-Pacific
     Mirant's Asia-Pacific group contributed 14 cents per diluted share to
 earnings in the first quarter of 2001, compared with 24 cents per diluted
 share in the first quarter of 2000.  The group's operating income in the first
 of quarter 2001 increased by $2 million, after excluding a first quarter 2000
 settlement of a dispute related to the Shajiao C facility.  The group's
 earnings also reflect an increased Philippine tax provisions.
     Mirant's Asia-Pacific group continues to generate significant cash flow
 and is currently seeking opportunities to expand its operations into
 Singapore.  Also, Mirant is seeking entry opportunities into Korea and
 possibly Japan through smaller acquisitions.  The company hopes to build
 relationships with partners that will find value in Mirant's existing
 operational strength and provide Mirant with diverse market knowledge and
 experience.
     "As privatization progresses throughout Asia, we are targeting markets
 where we expect that a competitive business model will succeed," Fuller said.
 "We will tailor our investments to the current market structure in Asia -
 using our proven competitive business expertise to add value to these
 investments and future partnerships."
 
     Corporate
     Corporate expenses reduced first quarter earnings by 19 cents per diluted
 share, compared with 5 cents per diluted share in the first quarter of 2000.
 This increase in corporate costs primarily resulted from increased interest on
 corporate borrowings, stock-related compensation expense, income taxes and
 various other corporate expenses.
     On April 2, 2001, Mirant stock was distributed to Southern Company
 shareholders, making Mirant a fully independent, publicly traded entity.  On
 the day of the spin-off, Standard & Poor's added Mirant to its premier index,
 the S&P 500.
     Mirant will host an analyst call at 1 p.m.(EDT), April 26, 2001, to
 discuss first quarter earnings results for its three business units, general
 business updates and expectations, and issues surrounding the California and
 European power markets.  The call will be webcasted from the company's Web
 site at www.mirant.com.  The webcast will be available for replay on the Web
 site seven days after the call.  Mirant will also provided historical,
 quarterly information on its Investor Relations page.
     Mirant [Pronounced: MEER-unt] is a global, competitive energy company with
 a leading position in both power generation and energy risk management and
 marketing.  With an integrated business model, Mirant develops, constructs,
 owns and operates power plants and sells wholesale electricity, natural gas
 and other energy commodities.  Headquartered in Atlanta, with 8,000 employees
 worldwide, Mirant has extensive operations in North America, Europe and Asia.
 Mirant owns or controls more than 20,000 megawatts of electric generation
 capacity around the world, with another 9,000 megawatts under development.
 Mirant also controls an extensive natural gas asset base in North America,
 including transportation, storage and access to approximately 3.7 billion
 cubic feet per day of gas production.
 
     Special note regarding forward-looking statements:
     The information presented above includes forward-looking statements, in
 addition to historical information.  These statements involve known and
 unknown risks and relate to future events, Mirant's future financial
 performance or projected business results.  In some cases, forward-looking
 statements by terminology may be identified by statements such as "may,"
 "will," "should," "expects," "plans," "anticipates," "believes," "estimates,"
 "predicts," "targets," "potential," "guidance" or "continue" or the negative
 of these terms or other comparable terminology.
     Forward-looking statements are only predictions.  Actual events or results
 may differ materially from any forward-looking statement as a result of
 various factors, which include: (i) legislative and regulatory initiatives
 regarding deregulation and restructuring of the electric utility industry;
 (ii) the extent and timing of the entry of additional competition in the
 markets of Mirant's subsidiaries and affiliates; (iii) Mirant's pursuit of
 potential business strategies, including acquisitions or dispositions of
 assets or internal restructuring; (iv) state, federal and other rate
 regulations in the United States and in foreign countries in which Mirant's
 subsidiaries and affiliates operate; (v) changes in or application of
 environmental and other laws and regulations to which Mirant and its
 subsidiaries and affiliates are subject; (vi) political, legal and economic
 conditions and developments in the United States and in foreign countries in
 which Mirant's subsidiaries and affiliates operate; (vii) financial market
 conditions and the results of Mirant's financing efforts; changes in commodity
 prices and interest rates; weather and other natural phenomena; (viii)
 performance of Mirant's projects undertaken and the success of efforts to
 invest in and develop new opportunities; (ix) unanticipated developments in
 the California power markets, including, but not limited to, unanticipated
 governmental intervention, deterioration in the financial condition of
 counterparties, default on amounts due, adverse results in current or future
 litigation and adverse changes in the tariffs of the California Power Exchange
 Corporation or California Independent System Operator Corporation, and (x)
 other factors, including the risks outlined under "Risk Factors" in filings
 with the SEC.
     Although Mirant believes that the expectations reflected in the forward-
 looking statements are reasonable, Mirant cannot guarantee future results,
 events, levels of activity, performance or achievements.  Mirant does not
 undertake a duty to update any of the forward-looking statements.
 
 
                        MIRANT CORPORATION AND SUBSIDIARIES
                   CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
 
                                                       For the Three Months
                                                           Ended March 31,
                                                        2001              2000
                                                            (in millions)
 
     Operating Revenues                               $8,182              $519
 
     Operating Expenses:
     Cost of fuel, electricity and other
      products                                         7,381               155
     Maintenance                                          28                30
     Depreciation and amortization                        88                83
     Selling, general, and administrative                325                30
     Other                                                81                52
       Total operating expenses                        7,903               350
     Operating Income                                    279               169
     Other Income (Expense):
     Interest income                                      50                38
     Interest expense                                   (143)             (146)
     Equity in income of affiliates                       79                27
     Receivables recovery                                 10               ---
     Other, net                                            6                 6
       Total other income (expense)                        2               (75)
     Income From Continuing Operations
      Before
       Income Taxes and Minority Interest                281                94
     Provision (Benefit) for Income Taxes                 92               (31)
     Minority Interest                                    14                30
     Income From Continuing Operations                   175                95
     Income from Discontinued Operations
      After
       Income Taxes and Minority Interest                  5                 6
     Net Income                                         $180              $101
 
     Notes:
     (1)  Certain prior-year data has been reclassified to conform with the
     current-year presentation.
     (2)  Basic Earnings Per Share from Continuing Operations for the three
     months ended March 31, 2001 and 2000 were $0.52 and $0.35, respectively,
     based on the weighted average of 338,724,679 and 272,000,000 shares of
     common stock outstanding.
     (3)  Diluted Earnings Per Share from Continuing Operations for the three
     months ended March 31, 2001 was $0.51. Pro Forma Diluted Earnings Per
     Share from Continuing Operations for the three months ended March 31, 2000
     was $0.27.
 
 
 
                       MIRANT CORPORATION AND SUBSIDIARIES
              EARNINGS AND PRO FORMA EARNINGS PER SHARE (UNAUDITED)
 
 
 
                                                     For the Three Months
                                                        Ended March 31,
                                                 2001        2000     % Change
     Consolidated Earnings (in millions)
     As Reported                                 $180        $101        78%
     As Reported from Continuing
      Operations                                  175          95        84%
     From Operations                             $175         $95        84%
 
 
      Diluted Earnings Per Share (Pro
       Forma for 2000):
     Average number of shares of common
      stock outstanding (in millions)           354.1       352.2
     Additions to Income for Pro Forma
      Diluted Earnings Per Share (in
      millions)                                    $4        $---
 
     Consolidated Earnings Per Share
     As Reported                                $0.52       $0.29        79%
     As Reported from Continuing
      Operations                                 0.51        0.27        89%
     From Operations                            $0.51       $0.27        89%
 
     Contributions to Diluted Earnings Per
      Share by Group
       Asia-Pacific                             $0.14       $0.24       -42%
       Europe                                    0.07        0.09       -22%
       Americas                                  0.49       (0.01)        NM
       Corporate                                (0.19)      (0.05)      280%
     From Continuing Operations                 $0.51       $0.27        89%
       Discontinued Operations                   0.01        0.02       -50%
 
     Basic Earnings Per Share (Pro Forma
      for 2000):
     Average number of shares of common
      stock outstanding (in millions)           338.7       338.7
 
     Consolidated Earnings
     As Reported                                $0.53       $0.30        77%
     As Reported from Continuing
      Operations                                 0.52        0.28        86%
     From Operations                            $0.52       $0.28        86%
 
     NM = Not Meaningful
 
 
 
                        MIRANT CORPORATION AND SUBSIDIARIES
                     EARNINGS AND PRO FORMA EARNINGS PER SHARE
                    AS REPORTED AND FROM OPERATIONS (UNAUDITED)
 
                                          Quarter Quarter Quarter Quarter Year
     2001                                      1      2      3      4
     Consolidated Earnings (in millions)
     As Reported                              $180   $---   $---   $---   $180
       Discontinued Operations                  (5)   ---    ---    ---     (5)
     As Reported from Continuing Operations    175    ---    ---    ---    175
     From Operations                          $175   $---   $---   $---   $175
 
     2000
     Consolidated Earnings (in millions)
     As Reported                              $101    $93    $98    $67   $359
     Discontinued Operations                    (6)    (7)    (7)    (7)   (27)
     As Reported from Continuing Operations     95     86     91     60    332
     Adjustment for Costs Related to
      Transitioning to a Public Company        ---    ---     28      6     34
     From Operations                           $95    $86   $119    $66   $366
 
     Diluted Earnings Per Share (Pro Forma
      for 2000):
     2001
     Number of shares of common stock
      outstanding (in millions)              354.1                       354.1
     Additions to Income for Diluted
      Earnings Per Share (in millions)          $4   $---   $---   $---     $4
     Diluted Earnings Per Share
     As Reported                             $0.52   $---   $---   $---  $0.52
     As Reported from Continuing Operations  $0.51   $---   $---   $---  $0.51
     From Operations                         $0.51   $---   $---   $---  $0.51
 
     2000
     Number of shares of common stock
      outstanding (in millions)              352.2  352.2  352.6  354.0  353.1
     Additions to Income  (in millions)       $---     $1     $5     $4    $10
     Pro Forma Diluted Earnings Per Share
     As Reported                             $0.29  $0.27  $0.29  $0.20  $1.05
     As Reported from Continuing Operations  $0.27  $0.25  $0.27  $0.18  $0.97
     From Operations                         $0.27  $0.25  $0.35  $0.20  $1.07
 
     Basic Earnings Per Share (Pro Forma for
      2000):
     Number of shares of common stock
      outstanding (in millions)              338.7  338.7  338.7  338.7  338.7
     2001
     Basic Earnings Per Share Based on
      Consolidated Earnings
     As Reported                             $0.53   $---   $---   $---  $0.53
     Discontinued Operations                 (0.01)   ---    ---    ---  (0.01)
     As Reported from Continuing Operations   0.52    ---    ---    ---   0.52
     From Operations                         $0.52   $---   $---   $---  $0.52
 
     2000
     Pro Forma Basic Earnings Per Share
      Based on Consolidated Earnings
     As Reported                             $0.30  $0.27  $0.29  $0.20  $1.06
     Discontinued Operations                 (0.02) (0.02) (0.02) (0.02) (0.08)
     As Reported from Continuing Operations   0.28   0.25   0.27   0.18   0.98
     Adjustment for Costs Related to
      Transitioning to a Public Company        ---    ---   0.08   0.02   0.10
     From Operations                         $0.28  $0.25  $0.35  $0.20  $1.08
 
 
 
                        MIRANT CORPORATION AND SUBSIDIARIES
                        FINANCIAL DATA BY GROUP (UNAUDITED)
                 FOR THE THREE MONTHS ENDED MARCH 31, 2001 AND 2000
 
 
                                                              Americas
                                                        2001             2000
                                                            (in millions)
     Operating Revenues
       Generation and energy marketing                $8,053             $240
       Distribution & integrated utilities                36               40
       Other                                             ---              ---
     Total operating revenues                          8,089              280
 
     Operating Expenses:
       Cost of fuel, electricity and other
        products                                       7,368              145
       Depreciation and amortization                      54               26
       Other operating expenses                          349               78
       Total operating expenses                        7,771              249
     Operating Income (Loss)                             318               31
 
     Other Income (Expense)
       Interest income (expense)                         (39)             (34)
       Equity in income of affiliates                      6               (4)
       Other                                               8                5
 
     Income (Loss) From Continuing
      Operations Before Income Taxes and Minority
       Interest                                          293               (2)
     Provision (Benefit) for Income Taxes                119                6
     Minority Interest                                     1               (5)
     Income (Loss) From Continuing
      Operations                                         173               (3)
 
     Income From Discontinued Operations,
       Net of Tax Benefit                                ---              ---
     Net Income (Loss)                                  $173              $(3)
 
 
     Energy Volumes
                                                    Americas
                                             2001       2000    Change
     Power (MM MWh)                          65.6       54.2    21%
     Natural Gas (Bcf/d)  (a)                12.8        8.9    44%
 
      (a) Volumes include all volumes reported on GMS, including transfers
      between subsidiaries and intracompany transfers (2000 restated).
 
 
                        MIRANT CORPORATION AND SUBSIDIARIES
                        FINANCIAL DATA BY GROUP (UNAUDITED)
                 FOR THE THREE MONTHS ENDED MARCH 31, 2001 AND 2000
 
 
                                                               Europe
                                                       2001              2000
 
     Operating Revenues
       Generation and energy marketing                 $(36)             $---
       Distribution & integrated utilities              ---               111
       Other                                            ---               ---
     Total operating revenues                           (36)              111
 
     Operating Expenses:
       Cost of fuel, electricity and other
        products                                         11                10
       Depreciation and amortization                    ---                24
       Other operating expenses                           9                25
       Total operating expenses                          20                59
     Operating Income (Loss)                            (56)               52
 
     Other Income (Expense)
       Interest income (expense)                         (4)              (27)
       Equity in income of affiliates                    63                14
       Other                                             (2)                1
 
     Income (Loss) From Continuing
      Operations Before Income Taxes and Minority
       Interest                                           1                40
     Provision (Benefit) for Income Taxes               (23)              (17)
     Minority Interest                                  ---                26
     Income (Loss) From Continuing
      Operations                                         24                31
 
     Income From Discontinued Operations,
       Net of Tax Benefit                               ---               ---
     Net Income (Loss)                                  $24               $31
 
 
                        MIRANT CORPORATION AND SUBSIDIARIES
                        FINANCIAL DATA BY GROUP (UNAUDITED)
                 FOR THE THREE MONTHS ENDED MARCH 31, 2001 AND 2000
 
 
                                                            Asia-Pacific
                                                       2001              2000
 
     Operating Revenues
       Generation and energy marketing                 $123              $123
       Distribution & integrated utilities              ---               ---
       Other                                              6                 3
     Total operating revenues                           129               126
 
     Operating Expenses:
       Cost of fuel, electricity and other
        products                                          2               ---
       Depreciation and amortization                     33                33
       Other operating expenses                          27                (2)
       Total operating expenses                          62                31
     Operating Income (Loss)                             67                95
 
     Other Income (Expense)
       Interest income (expense)                        (25)              (28)
       Equity in income of affiliates                    10                17
       Other                                             10               ---
 
     Income (Loss) From Continuing
      Operations Before Income Taxes and Minority
       Interest                                          62                84
     Provision (Benefit) for Income Taxes                 3                (8)
     Minority Interest                                    8                 9
     Income (Loss) From Continuing
      Operations                                         51                83
 
     Income From Discontinued Operations,
       Net of Tax Benefit                               ---               ---
     Net Income (Loss)                                  $51               $83
 
 
 
 
                        MIRANT CORPORATION AND SUBSIDIARIES
                        FINANCIAL DATA BY GROUP (UNAUDITED)
                 FOR THE THREE MONTHS ENDED MARCH 31, 2001 AND 2000
 
                                                           Corporate and
                                                            Eliminations
                                                       2001              2000
 
     Operating Revenues
       Generation and energy marketing                 $---              $---
       Distribution & integrated utilities              ---               ---
       Other                                            ---                 2
     Total operating revenues                           ---                 2
 
     Operating Expenses:
       Cost of fuel, electricity and other
        products                                        ---               ---
       Depreciation and amortization                      1               ---
       Other operating expenses                          49                11
       Total operating expenses                          50                11
     Operating Income (Loss)                            (50)               (9)
 
     Other Income (Expense)
       Interest income (expense)                        (25)              (19)
       Equity in income of affiliates                   ---               ---
       Other                                            ---               ---
 
     Income (Loss) From Continuing
      Operations Before Income Taxes and Minority
       Interest                                         (75)              (28)
     Provision (Benefit) for Income Taxes                (7)              (12)
     Minority Interest                                    5               ---
     Income (Loss) From Continuing
      Operations                                        (73)              (16)
 
     Income From Discontinued Operations,
       Net of Tax Benefit                                 5                 6
     Net Income (Loss)                                 $(68)             $(10)
 
 
 
 
                        MIRANT CORPORATION AND SUBSIDIARIES
                        FINANCIAL DATA BY GROUP (UNAUDITED)
                 FOR THE THREE MONTHS ENDED MARCH 31, 2001 AND 2000
 
 
                                                            Consolidated
                                                        2001             2000
 
     Operating Revenues
       Generation and energy marketing                $8,140             $363
       Distribution & integrated utilities                36              151
       Other                                               6                5
     Total operating revenues                          8,182              519
 
     Operating Expenses:
       Cost of fuel, electricity and other
        products                                       7,381              155
       Depreciation and amortization                      88               83
       Other operating expenses                          434              112
       Total operating expenses                        7,903              350
     Operating Income (Loss)                             279              169
 
     Other Income (Expense)
       Interest income (expense)                         (93)            (108)
       Equity in income of affiliates                     79               27
       Other                                              16                6
 
     Income (Loss) From Continuing
      Operations Before Income Taxes and Minority
       Interest                                          281               94
     Provision (Benefit) for Income Taxes                 92              (31)
     Minority Interest                                    14               30
     Income (Loss) From Continuing
      Operations                                         175               95
 
     Income From Discontinued Operations,
       Net of Tax Benefit                                  5                6
     Net Income (Loss)                                  $180             $101
 
 
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