HOUSTON, June 25, 2002 — At an analyst meeting held Tuesday, Reliant Resources Inc. Chairman, President and CEO Steve Letbetter reiterated that the company remains committed to the energy services business and that it has the foundation in place to meet the challenges facing the industry and to support future growth.
“The most fundamental fact, the most important fact is that our underlying business is strong. Our foundation is solid, well-grounded and able to support the day-to-day pressures upon us. Nothing makes this clearer than our ability to reaffirm our 2002 earnings per share guidance of $1.80 to $2.00,” Letbetter told the analysts.
Letbetter noted that over the coming months, Reliant Resources will focus on five priorities:
— Executing the spin-off from Reliant Energy (NYSE: REI – News): The company remains committed to and focused on completing the formal separation as soon as possible. Reliant expects approval from the Securities and Exchange Commission in the near term, with the completion of the spin- off shortly thereafter;
— Finalizing the company’s plan to replace its bank debt: Reliant Resources is currently in negotiations with its banks to replace or extend those agreements;
— Successfully managing through a variety of regulatory and legal issues: Reliant Resources is cooperating fully with the various regulatory agencies and is committed to conducting its business with integrity and honesty;
— Adjusting its business to current market conditions: Reliant Resources previously announced that it is realigning its commercial activities to ensure efficient use of capital. The company will continue to make appropriate changes in each of its business units, as well as in the corporate center, to help manage costs and enhance efficiencies; and,
— Putting the right team in place to execute the company’s strategy.
“I am proud of the people running our businesses recently,” Letbetter said. “They have remained focused on the business and met the significant challenges we have faced.
“We believe that Reliant is squarely positioned for continued success,” said Letbetter. “We have the core strengths in place, as well as the conviction and commitment necessary to achieve the kind of results we all hope for in the coming year.”
In particular, Letbetter noted three strengths that he believes position Reliant Resources well for recently and for the future:
— Reliant Resources’ financial metrics are among the strongest in the industry;
— Reliant Resources’ business is founded on a diverse portfolio of generation assets with more than 21,000 megawatts of generation in operation or under construction in the U.S.; and,
— Reliant Resources has a profitable retail business, which helps to insulate the company from the lower wholesale prices and spark spreads that have resulted from excess generation in certain markets.
“There is no doubt that both the energy services industry, and Reliant as one of that industry’s key players, have entered a new era,” Letbetter concluded. “Let me assure you that we are committed to a future that follows our core business philosophy. We believe that with our asset position, commercial strategy and strong retail business, we have the foundation in place to build an even stronger future.”
The presentation used in the analyst conference will be available beginning on Thursday on the Company’s website at www.reliantresources.com under the investor relations section.
Reliant Resources, based in Houston, Texas, provides electricity and energy services to wholesale and retail customers in the U.S. and Europe, marketing those services under the Reliant Energy brand name. For more information, visit our web site at www.reliantresources.com .