This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

TECO Energy's CEO Discusses Q1 2012 Results - Earnings Call Transcript

First quarter therm sales at Peoples Gas also reflected the mild weather in January and February and lower sales to residential and commercial customers. Unfortunately, Peoples does not benefit from cooling degree days, so the weather impact was more pronounced on the gas company, resulting in net income lower than last year. Peoples did benefit from higher throughput for power generation customers, as gas-fired units ran more in response to the low natural gas prices. Peoples Gas also continues to experience steady customer growth, with an increase of 0.9% this quarter.

Earnings at TECO Coal were higher this quarter, the result of margin expansion of $4 per ton. Sales volumes were lower than last year, as we projected they would be in January when we reduced our volume expectations in response to market condition. The average selling price for the quarter rose to $96 per ton. This reflects met coal prices contracted when the market was stronger and higher average steam coal prices, following the expiration of a below-market contract at the end of last year. The contract to replace those tons was signed in the middle of 2011 in a more favorable pricing environment.

The all-in cost of production was almost $87 per ton, which is at the high end of our cost guidance range. The reason Q1 is at the high end is that January included costs associated with idling a facility and other actions we took to reduce production early this year. Compared to last year, production costs are higher because of: higher royalty and severance fees, which are a function of selling prices; the effective spreading fixed costs over fewer tons; and higher cost to move coal and overburden further to work around the lack of new service mining permits.

Read the rest of this transcript for free on

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,894.27 -82.04 -0.46%
S&P 500 2,078.27 -7.97 -0.38%
NASDAQ 4,928.0590 -19.3820 -0.39%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs