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Con Edison ups capital requirements by nearly $1B; posts drop in Q1 earnings

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Con Edison ups capital requirements by nearly $1B; posts drop in Q1 earnings

ConsolidatedEdison Inc. has increased its 2016 capital requirements by nearly$1 billion to account for the purchaseof halfof Crestwood Equity Partners LP'spipeline and storage business in the Marcellus Shale of northern Pennsylvaniaand southern New York.

The company's capital requirements now stand at $5.87 billionwhich it plans to meet with the help of $500 million worth of equity issuancesand $500 million worth of long-term debt. The company also plans to issuebetween $1.00 billion to $1.8 billion of debt and $200 million of equity tomeet its other 2016 capital requirements.

The company also plans to rely on debt secured by itsrenewable electric production projects to meet its requirements.

Con Edison made the announcement in its May 5 earningsrelease, reporting first-quarter 2016 adjusted earnings of $348 million, or$1.18 per share, down from $365 million, or $1.25 per share, in first quarterof 2015 and below the S&P Global Market Intelligence normalized EPSconsensus estimate of $1.21.

The company said its books were impacted by warmer thannormal weather which hurt revenues. Con Edison generated $3.16 billion inoperating revenues, down from $3.62 billion in the opening months of 2015.

The company booked $310 million, or $1.05 per share, infirst-quarter 2016 GAAP income, down from $370 million, or $1.26 per share, inthe first quarter of 2015. contributed $310 million toward the result, down from $348 million in the samequarter of 2015, and Orange andRockland Utilities Inc. contributed $26 million, or up $4 millionyear over year.

GAAP income was impacted by the competitive energybusinesses which recorded a loss of $30 million during the 2016 first quarter.The business had booked $2 million in profit during the same quarter of 2015.

Con Edison continues to target full-year adjusted EPS of $3.85 to $4.05.