The Laclede Group Announces Record Earnings from Continuing Operations for Seventh Consecutive Year

• Press Release
• Source: The Laclede Group, Inc.
• On 8:30 am EDT, Friday October 30, 2009

ST. LOUIS, Oct. 30 /PRNewswire-FirstCall/ -- The Laclede Group, Inc. (NYSE: LG - News) reported today its seventh consecutive fiscal year of record earnings from continuing operations for fiscal 2009, which ended September 30.

Consolidated income from continuing operations for fiscal 2009 increased 12 percent to $64.2 million, or $2.92 diluted earnings per share, compared to $57.5 million, or $2.64 diluted earnings per share, reported for fiscal 2008. This increase was principally due to higher earnings from Laclede Energy Resources, Inc. (LER), The Laclede Group's non-regulated natural gas commodity service provider.

Fiscal 2008's results of $3.58 diluted earnings per share on an as-reported basis included the operating results and the March 31, 2008 sale of SM&P Utility Resources, Inc, The Laclede Group's former wholly owned subsidiary, which contributed $0.94 to diluted earnings per share in the prior fiscal year. The results for fiscal 2008 also included $2.9 million, or $0.13 diluted earnings per share, in certain tax-related benefits. As a result, The Laclede Group posted total earnings of $77.9 million for fiscal 2008.

For the three months ended September 30, 2009, the Company posted a loss of $4.7 million, or ($0.22) diluted earnings per share, compared to a loss of $3.6 million, or ($0.16) diluted earnings per share, for the same quarter last year. The Company frequently reports a loss in its fourth quarter because of lower gas usage by its utility customers during the summer months.

"We are pleased that we posted our seventh consecutive year of record earnings from continuing operations, despite the fact that the U.S. economy remains in one of the most difficult periods since the Great Depression," said Douglas H. Yaeger, chairman, president and chief executive officer of The Laclede Group. "During this period, we have continued to work to strengthen our balance sheet and improve free cash flow. Future results will be impacted by the timing and sustainability of the economy's recovery as well as changes in the gas markets."

RESULTS OF OPERATIONS

Laclede Energy Resources

For fiscal 2009, LER reported earnings of $31.4 million, an increase of 63 percent when compared to last year. This represents a contribution of $1.43 to consolidated diluted earnings per share for this year as compared to $0.88 diluted earnings per share for last year.

LER's higher earnings for the full year reflect its strategic acquisition of additional firm pipeline transportation capacity prior to the 2008-2009 winter. This capacity, along with lower natural gas costs, supported higher sales volumes and greater margins this year when compared to last year. Last year's results also reflected the impact of $1.3 million, or $0.06 diluted earnings per share, in certain tax-related benefits.

LER reported earnings totaling $4.0 million, or $0.18 diluted earnings per share, for the fiscal 2009 fourth quarter, a decrease of 12 percent compared to the year-ago quarter. Earnings for the most recent quarter reflect decreased sales margins, partially offset by higher sales volumes of natural gas. The lower margins were driven primarily by reduced regional price differentials that currently prevail in the marketplace.

Laclede Gas Company

Laclede Gas Company, The Laclede Group's core subsidiary and Missouri's largest natural gas distribution utility, reported earnings of $33.2 million for fiscal 2009, a decrease of 15 percent compared to the previous fiscal year. The utility contributed $1.51 to consolidated diluted earnings per share for this year as compared to $1.80 diluted earnings per share for last year. The decrease in earnings was primarily attributable to increased operating and maintenance expenses, partially offset by higher revenue generated by the Infrastructure System Replacement Surcharge (ISRS). Last year's results for the period also reflected the impact of $1.6 million, or $0.07 diluted earnings per share, in certain tax-related benefits.

Laclede Gas reported a loss of $7.5 million for the fourth quarter of fiscal 2009, compared to a loss of $7.4 million for the same quarter last year. Laclede Gas contributed ($0.34) to diluted earnings per share during the fourth quarter of both fiscal 2009 and fiscal 2008. As discussed previously, the utility typically experiences losses in the fourth quarter due to lower gas usage by utility customers during the summer months.

ABOUT THE LACLEDE GROUP

Headquartered in St. Louis, Missouri, The Laclede Group, Inc. is a public utility holding company committed to providing reliable natural gas service through its regulated core utility operations, while also engaging in non-regulated activities that provide opportunities for sustainable growth. Its subsidiary Laclede Gas Company, the regulated operations of which are included in the Regulated Gas Distribution segment, serves approximately 630,000 residential, commercial and industrial customers in the city of St. Louis, St. Louis County and nine other counties in Eastern Missouri. The Laclede Group's primary non-regulated business, Laclede Energy Resources, Inc., is included in the Non-Regulated Gas Marketing segment and serves wholesale, large commercial and industrial customers throughout the Midwest. For more information about The Laclede Group and its subsidiaries, visit www.thelacledegroup.com.

The Laclede Group's earnings are seasonal in nature and generally correspond with the heating season for Laclede Gas Company, its largest subsidiary.

For additional details on The Laclede Group's fiscal 2009 fourth-quarter and full-year results, please see the accompanying unaudited Statements of Consolidated Income.

CAUTIONARY STATEMENTS ON FORWARD-LOOKING INFORMATION

This news release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. The Company's future operating results may be affected by various uncertainties and risk factors, many of which are beyond the Company's control, including weather conditions, governmental and regulatory policy and action, the competitive environment and economic factors. For a more complete description of these uncertainties and risk factors, see the Company's Form 10-Q for the period ended June 30, 2009, filed with the Securities and Exchange Commission.

                                        UNAUDITED

    STATEMENTS OF CONSOLIDATED INCOME

    THE LACLEDE GROUP, INC.
    (Thousands, Except Per Share Amounts)


                                    Three Months Ended     Twelve Months Ended
                                       September 30,           September 30,
                                       -------------           -------------
                                      2009       2008         2009       2008

     OPERATING REVENUES
        Regulated Gas
         Distribution              $95,092   $110,708   $1,053,993 $1,128,287
        Non-Regulated Gas
         Marketing                 155,794    340,014      836,865  1,075,845
        Other                        1,044      1,067        4,340      4,841
                                     -----      -----        -----      -----
            Total Operating
             Revenues              251,930    451,789    1,895,198  2,208,973
                                   -------    -------    ---------  ---------
     OPERATING EXPENSES
        Regulated Gas
         Distribution
           Natural and propane
            gas                     43,740     56,834      699,984    770,097
           Other operation
            expenses                36,090     36,124      146,542    144,611
           Maintenance               7,364      7,235       27,818     25,827
           Depreciation and
            amortization             9,262      9,008       36,751     35,303
           Taxes, other than
            income taxes             8,244      8,538       68,639     69,023
                                     -----      -----       ------     ------
            Total Regulated Gas
             Distribution
             Operating Expenses    104,700    117,739      979,734  1,044,861
        Non-Regulated Gas
         Marketing                 149,456    333,234      787,056  1,048,162
        Other                          841        788        3,344      4,603
                                       ---        ---        -----      -----
            Total Operating
             Expenses              254,997    451,761    1,770,134  2,097,626
                                   -------    -------    ---------  ---------
     Operating Income (Loss)        (3,067)        28      125,064    111,347
                                    ------         --      -------    -------
     Other Income and (Income
      Deductions) - Net               (864)    (1,008)       1,453      1,881
                                      ----     ------        -----      -----
     Interest Charges:
        Interest on long-term
         debt                        6,146      4,974       24,583     19,851
        Interest on long-term
         debt to
         unconsolidated
         affiliate trust                 -          -            -        486
        Other interest charges         612      1,732        5,163      9,140
                                       ---      -----        -----      -----
            Total Interest Charges   6,758      6,706       29,746     29,477
                                     -----      -----       ------     ------
     Income (Loss) from
      Continuing Operations
      Before Income Taxes
      and Dividends on
      Laclede Gas
      Redeemable Preferred
      Stock                        (10,689)    (7,686)      96,771     83,751
     Income Tax Expense
      (Benefit)                     (5,942)    (4,523)      32,509     26,190
     Dividends on Laclede Gas
      Redeemable Preferred
      Stock                              -          8           15         35
                                       ---        ---          ---        ---
     Income (Loss) from
      Continuing Operations         (4,747)    (3,171)     64,247     57,526
     Income (Loss) from
      Discontinued Operations,
      Net of Income Tax                  -       (423)           -     20,396
                                       ---       ----          ---     ------
     Net Income (Loss)             $(4,747)   $(3,594)     $64,247    $77,922
                                   =======    =======      =======    =======

     Average Number of Common
      Shares Outstanding:
        Basic                       21,920     21,785       21,893     21,657
        Diluted                     21,920     21,785       22,024     21,763

     Basic Earnings (Loss) Per
      Share of Common Stock:
        Income (Loss) from
         Continuing Operations      $(0.22)    $(0.14)       $2.93      $2.66
        Income (Loss) from
         Discontinued
         Operations                      -      (0.02)           -       0.94
                                       ---      -----          ---       ----
        Net Income (Loss)           $(0.22)    $(0.16)       $2.93      $3.60
                                    ======     ======        =====      =====

     Diluted Earnings (Loss)
      Per Share of Common
      Stock:
        Income (Loss) from
         Continuing Operations      $(0.22)    $(0.14)       $2.92      $2.64
        Income (Loss) from
         Discontinued
         Operations                      -      (0.02)           -       0.94
                                       ---      -----          ---       ----
        Net Income (Loss)           $(0.22)    $(0.16)       $2.92      $3.58
                                    ======     ======        =====      =====

Buzz up!