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News Release

TECO Energy reports full second-quarter results

Results include discontinued operations

TAMPA, August 5, 2015

TECO Energy, Inc. (NYSE:TE) today reported second-quarter 2015 net income of $11.8 million, or $0.05 per share, compared with $58.4 million, or $0.27 per share, in the second quarter of 2014. As previously reported on July 30, net income from continuing operations was $61.5 million, or $0.26 per share, in the 2015 second quarter, compared with $57.6 million, or $0.27 per share, for the same period in 2014. The $49.7 million loss in discontinued operations in the second quarter reflects the operating results at TECO Coal of $1.1 million and net impairment charges of $50.8 million associated with the pending sale of TECO Coal (see the Discontinued Operations section below).

Year-to-date net income was $69.8 million, or $0.30 per share, compared with net income of $108.5 million, or $0.50 per share in the 2014 period. Net income from continuing operations was $125.3 million or $0.53 per share, compared with $106.0 million or $0.49 per share in the 2014 period. The $55.5 million loss in discontinued operations in the year-to-date period reflects the $4.7 million operating loss at TECO Coal and net impairment charges referred to above.

The information in this release should be used in conjunction with the information in the TECO Energy press release and Current Report on Form 8-K dated July 30, 2015 for a complete understanding of TECO Energy’s second quarter and year-to-date 2015 financial results.

Segment Reporting

The table below includes TECO Energy segment information on a GAAP basis, which includes all charges and gains for the periods shown.

Segment Information

3 months ended June 30

6 months ended June 30

12 months ended June 30

(millions)

Net Income Summary

2015

2014

2015

2014

2015

2014

Tampa Electric

$67.7

$62.2

$115.9

$107.4

$233.1

$215.9

Peoples Gas System

7.6

7.5

22.2

22.1

35.8

35.1

New Mexico Gas Co.(1)

(0.1)

--

13.8

--

24.3

--

Other – net

(13.7)

(12.1)

(26.6)

(23.5)

(67.5)

(45.3)

Net income from continuing operations

61.5

57.6

125.3

106.0

225.7

205.7

Discontinued operations (2)

(49.7)

0.8

(55.5)

2.5

(134.0)

7.5

Total net income

$11.8

$58.4

$69.8

$108.5

$91.7

$213.2

(1) The 12-months ended 2015 period reflect New Mexico Gas Co. results after the Sept. 2, 2014 closing of the acquisition.

(2) In the three- and six-months ended 2015 periods, discontinued operations include the operating results at TECO Coal and an impairment charge. In the 12-months ended 2015 period, discontinued operations included the operating results at TECO Coal, net impairment charges, and costs related to TECO Guatemala. In the three-, six- and 12-months ended 2014 periods, discontinued operations included the operating results at TECO Coal. The six- and 12-month ended 2014 periods included a $3.1 million benefit related to the sale of TECO Guatemala in 2012.

Discontinued Operations

The second quarter 2015 loss of $49.7 million recorded in discontinued operations reflects TECO Coal’s second quarter operating results of $1.1 million and net impairment charges of $50.8 million associated with the pending sale of TECO Coal. The company continues to be in active discussions with interested parties in an effort to complete the sale. Based on management’s assessment of current market conditions and the discussions with interested parties, an additional impairment charge was recorded in the second quarter of 2015, which includes the estimated selling costs associated with this transaction.

The year-to-date loss of $55.5 million in discontinued operations reflects TECO Coal’s operating loss of $4.7 million and the net impairment charges recorded in the second quarter.

TECO Energy Inc. (NYSE: TE) is an energy-related holding company with regulated electric and gas utilities in Florida and New Mexico. Tampa Electric serves more than 700,000 customers in West Central Florida; Peoples Gas System serves more than 350,000 customers across Florida; and New Mexico Gas Co. serves more than 510,000 customers across New Mexico. Other TECO Energy subsidiaries include TECO Coal, which owns and operates coal-production facilities in Kentucky, Tennessee and Virginia.

Note: This press release may be deemed to contain forward-looking statements, which are subject to the inherent uncertainties in predicting future results and conditions. Actual results may differ materially from those forecasted. The forecasted results are based on the company's current expectations and assumptions, and the company does not undertake to update that information or any other information contained in this press release, except as may be required by law. Factors that could impact actual results include: regulatory actions by federal, state or local authorities; the ability to successfully implement the integration plans for NMGC and generate the financial results to make the acquisition accretive; unexpected capital needs or unanticipated reductions in cash flow that affect liquidity; the ability to access the capital and credit markets when required; general economic conditions affecting customer growth and energy sales at the utility companies; economic conditions affecting the Florida and New Mexico economies; weather variations and customer energy usage patterns affecting sales and operating costs at the utilities and the effect of weather conditions on energy consumption; the effect of extreme weather conditions or hurricanes; general operating conditions; input commodity prices affecting cost at all of the operating companies; natural gas demand at the utilities ; and the ability of TECO Energy's subsidiaries to operate equipment without undue accidents, breakdowns or failures; and the ability of TECO Energy to successfully close the sale of TECO Coal on reasonable terms, or otherwise exit the coal business. Additional information is contained under "Risk Factors" in TECO Energy, Inc.'s Annual Report on Form 10-K for the period ended Dec. 31, 2014.

Summary Information (as of June 30, 2015)

(millions except per share amounts)

Three Months Ended

Six Months Ended

Twelve Months Ended

2015

2014

2015

2014

2015

2014

Revenues

$680.6

$605.7

$1,373.6

$1,183.7

$2,756.3

$2,388.1

Net income from continuing operations

$61.5

$57.6

$125.3

$106.0

$225.7

$205.7

Net income from discontinued operations

(49.7)

0.8

(55.5)

2.5

(134.0)

7.5

Net income

$11.8

$58.4

$69.8

$108.5

$91.7

$213.2

Earnings per share from continuing operations- basic

$0.26

$0.27

$0.53

$0.49

$0.97

$0.96

Earnings per share from discontinued operations – basic

(0.21)

--

(0.23)

0.01

(0.58)

0.03

Total earnings per share – basic

$0.05

$0.27

$0.30

$0.50

$0.39

$0.99

Total earnings per share – diluted

$0.05

$0.27

$0.30

$0.50

$0.39

$0.99

Average common shares outstanding – basic

233.0

215.4

232.9

215.3

231.3

215.2

Average common shares outstanding – diluted

233.6

215.9

233.5

215.8

231.9

215.7

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