News Releases

Sierra Pacific Resources Reports Increase in Quarterly Earnings

Jul 27, 1997

Sierra Pacific Power Company
Contact: Rich Atkinson (Analyst Contact); Karl Walquist (Media Contact)
Phone: (775)834-4358 (Atkinson); (775)834-4345 (Walquist)

For Immediate Release

Sierra Pacific Resources (NYSE: SRP) today reported net income of $15.5 million for common stock for the quarter ended June 30, 1997 compared to $14.8 million for the same quarter in 1996. Earnings per share for the quarter were 50 cents, versus 49 cents reported for the same quarter last year. Revenues of $157 million for the quarter were 4 percent higher than the second quarter of 1996.

For the 12-month period ended June 30, 1997, net income per share was $2.30 compared to $2.14 for the 12 months ended June 30, 1996. Earnings growth was attributed to increased energy sales and continued cost management by Sierra Pacific Power Company, the company?s principal subsidiary.

Lands of Sierra, the company?s real estate subsidiary, reported a one-time sale of property in 1996 that contributed 4 cents per share after taxes in the second quarter of 1996. The sale was consistent with Sierra?s strategic goal of profitably exiting the real estate business. Lands of Sierra reported no property sales during the second quarter of 1997.

"More companies are relocating to Northern Nevada which continues to fuel the area?s growth. This growth, coupled with cost management in all areas, has contributed to positive results for the company," said Mark Ruelle, Senior Vice President and Chief Financial Officer for Sierra Pacific.

Headquartered in Reno, Nev., Sierra Pacific Resources is a utility holding company whose principal subsidiary is Sierra Pacific Power Co., the electric utility for most of northern Nevada and the Lake Tahoe area of California, and a natural gas and water distributor in the Reno - Sparks area. Other subsidiaries include the Tuscarora Gas Pipeline Co., which owns 50 percent interest in an interstate natural gas transmission partnership, Lands of Sierra and e· three, an energy services company.