RKE Cap Rock Energy Corp

MIDLAND, Texas, April 5 /PRNewswire-FirstCall/ -- Cap Rock Energy Corporation (AMEX:RKE) reported a net loss of $4.2 million for the year ended December 31, 2005, or a $2.58 net loss per common share, diluted, compared to net earnings of $3.5 million, or $2.21 per common share, diluted, for the year ended December 31, 2004. Detailed below are financial highlights for Cap Rock Energy for the years ended 2005 and 2004: Year ended December 31, (in thousands, except share and per share data) 2005 2004 Operating revenues $86,975 $82,624 Operating income $225 $10,219 Net income (loss) $(4,226) $3,525 Earnings (loss) per share: Basic $(2.58) $2.28 Diluted $(2.58) $2.21 Weighted average number of common shares outstanding: Basic 1,640,276 1,546,271 Diluted 1,686,613 1,596,796 Total assets $187,561 $199,687 Total debt $134,202 $144,037 Equity $31,228 $33,444 The increase in revenues from the 2004 period to the 2005 period was caused by an increase in power cost recovery, related to increases in fuel expenses from suppliers; an increase in kWh sales; primarily offset by a refund of over collection of prior period purchased power. Purchased power increased in 2005 because of an increase in the price of fuel from suppliers, as well as increased kWh sales. Operations and maintenance expense increased in 2005 compared to 2004 because of increases in salaries and benefits, vehicle costs and outsourced and professional services. General and administrative expenses increased in 2005 compared to 2004 because of increased legal and settlement costs, penalties related to Notice of Violations from the Public Utility Commission of Texas, fees related to the transaction described below, professional services, bad debt expense, outsourced IT support and related functions. On November 4, 2005, Cap Rock Energy entered into an agreement and plan of share exchange with Cap Rock Holding Corporation. Subject to the terms and conditions set forth in the agreement, Cap Rock Holding Corporation will acquire all the outstanding shares of Cap Rock Energy common stock for $21.75 per share. On March 10, 2006, the shareholders of Cap Rock Energy approved the agreement and plan of share exchange. For more information, please see Cap Rock Energy's public filings with the Securities and Exchange Commission, which are publicly available at http://www.sec.gov/ . Cap Rock Energy provides electric distribution services to approximately 35,000 meters in 28 counties in Texas. Its corporate office is located in Midland, Texas, with service divisions in Stanton, Colorado City, Brady and Celeste, Texas. The Company also provides management services to the Farmersville Municipal Electric System. The Company's predecessor, Cap Rock Electric Cooperative, Inc., was incorporated as an electric cooperative in the State of Texas in 1939. All statements, other than statements of historical fact included in this news release, are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Any such forward-looking statements involve risks and uncertainties and actual results, performance or achievements of the Company may be different from those express or implied in the forward-looking statements. DATASOURCE: Cap Rock Energy Corporation CONTACT: Valerie Newsom of Cap Rock Energy Corporation, +1-432-684-0301, or

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