El Paso Corp. (ticker: EP, exchange: New York Stock Exchange (.N))
News Release -
6-Aug-2009
El Paso Corporation Reports Strong Second Quarter Financial and Operational ResultsHOUSTON, TX, Aug 06, 2009 (MARKETWIRE via COMTEX) -- El Paso Corporation (NYSE: EP) is today reporting second quarter
2009 financial and operational results for the
company.
Highlights:
- $0.25 adjusted diluted earnings per share (EPS) versus $0.39 in 2008.
A sharp increase in Pipeline Group earnings was more than offset by lower
natural gas and oil prices.
- Second quarter 2009 reported earnings of $0.11 per diluted share
versus $0.25 in 2008.
- Pipeline second quarter 2009 earnings before interest expense and
taxes (EBIT) rose 11 percent from the second quarter of 2008.
- 777 million cubic feet equivalent per day (MMcfe/d) total production.
Production from the Central and Western divisions rose 6 and 5 percent,
respectively from 2008 levels.
- Exploration & Production per-unit cash operating costs were $1.68 per
thousand cubic feet equivalent (Mcfe) - a 16 percent decrease from the
second quarter of 2008.
"El Paso generated good financial results in a difficult
environment, and I am particularly pleased with the operational
progress that we have made in recent months," said Doug Foshee,
chairman, president, and chief executive officer of El Paso
Corporation. "In our Pipeline business, we secured a partner for our
Ruby Pipeline project and brought two projects into service -- both
on time and on budget. In E&P, our domestic production held up very
well, even though we have reduced our drilling rig activity by
roughly 70 percent since the third quarter of 2008. We continue to
deliver outstanding results in our Haynesville Shale and Altamont oil
programs while substantially reducing our overall per-unit cash costs.
Financially, we maintained strong liquidity and completed several
financings, including a drop down with El Paso Pipeline Partners,
L.P."
A summary of financial results for the quarters and six-month periods
ended June 30, 2009 and 2008 is as follows:
Financial Results
Quarters Ended Six Months Ended
($ in millions, except per June 30, June 30,
share amounts) 2009 2008 2009 2008
-------- -------- -------- --------
Net income (loss) attributable to
El Paso Corporation $ 89 $ 191 $ (880) $ 410
Preferred stock dividends 10 -- 19 19
-------- -------- -------- --------
Net income (loss) attributable to
EPC common stockholders $ 79 $ 191 $ (899) $ 391
======== ======== ======== ========
Basic per common share amounts
Net income (loss) attributable to
EPC common stockholders $ 0.11 $ 0.27 $ (1.29) $ 0.56
======== ======== ======== ========
Diluted per common share amounts
Net income (loss) attributable to
EPC common stockholders $ 0.11 $ 0.25 $ (1.29) $ 0.54
======== ======== ======== ========
Items Impacting Quarterly Results
Second quarter 2009 and 2008 net income includes the following items:
Second Quarter 2009
($ millions, except per share amounts) Before After Diluted
Tax Tax EPS
-------- -------- --------
Net income attributable to EPC common
stockholders $ 79 $ 0.11
Adjustments(1)
Ceiling test charges $ 12 $ 12 $ 0.02
Change in fair value of power contracts (21) (13) (0.02)
Change in fair value of legacy natural gas
contracts 3 1 --
Change in fair value of legacy
indemnification (25) (16) (0.02)
Loss on sale of notes receivable relating to
Porto Velho sale 22 22 0.03
Mark-to-market (MTM) impact of E&P financial
derivatives(2) 151 96 0.14
Effect of change in number of diluted shares (0.01)
--------
Adjusted EPS(3) $ 0.25
========
1 Assumes a 36 percent tax rate, except for international portion of
ceiling test charges, loss on sale of notes receivable relating to Porto
Velho sale and 699 million diluted shares
2 Consists of $55 million of MTM gains on financial derivatives, adjusted
for $206 million of realized gains from cash settlements
3 Based upon 756 million fully diluted shares and includes income impact
from dilutive securities
Adjusted earnings per share do not include $50 million, or $0.04 per
share, of early cash settlements of oil derivative contracts that
hedged April though June 2009 production that were realized in the
first quarter of
2009.
Second Quarter 2008
($ millions, except per share amounts) Before After Diluted
Tax Tax EPS
-------- -------- --------
Net income attributable to EPC common
stockholders $ 191 $ 0.25
Adjustments(1)
Change in fair value of power contracts $ 105 $ 67 $ 0.09
Change in fair value of legacy
indemnification (9) (6) (0.01)
Other legacy litigation adjustments (27) (29) (0.04)
Change in fair value of production-related
derivatives in Marketing 52 33 0.04
MTM impact of E&P financial derivatives(2) 61 39 0.06
--------
Adjusted EPS(3) $ 0.39
========
1 Assumes a 36 percent tax rate, except other legacy litigation
adjustments, and 761 million diluted shares
2 Consists of $153 million of MTM losses on financial derivatives, adjusted
for $92 million of realized losses from cash settlements
3 Based upon 769 million fully diluted shares and includes income impact
from dilutive securities
Financial Results - Six Months Ended June 30, 2009
For the six months ended June 30, 2009, El Paso reported a net loss
attributable to EPC common stockholders of $899 million, or $1.29 per
diluted share, compared with net income of $391 million, or $0.54 per
diluted share, for the first six months of 2008. Earnings for the
six month periods of 2009 and 2008, after adjusting for the impacts of
production-related derivatives, ceiling test charges and other items,
were $0.72 and $0.74 per diluted share, respectively. A schedule of
items affecting year-to-date results is listed as an appendix to this
release.
Business Unit Financial Update
Quarters Ended Six Months Ended
Segment EBIT Results June 30, June 30,
($ in millions) 2009 2008 2009 2008
---------- ---------- ---------- ----------
Pipeline Group $ 327 $ 295 $ 723 $ 676
Exploration and Production 61 304 (1,624) 546
Marketing 10 (153) 62 (213)
Power (21) 12 (17) 10
Corporate and Other 31 41 24 80
---------- ---------- ---------- ----------
$ 408 $ 499 $ (832) $ 1,099
========== ========== ========== ==========
Pipeline Group
The Pipeline Group's EBIT for the quarter ended June 30, 2009 was
$327 million, compared with $295 million for the same period in 2008.
Second quarter results benefited from several expansion projects that
went into service throughout 2008 including the Kanda Lateral
project, the Medicine Bow expansion and the High Plains Pipeline.
Second quarter 2009 results were also favorably impacted by increased
reservation revenues on the El Paso Natural Gas system, new contracts
on El Paso's Rocky Mountain region systems and additional capacity
sold in different regions of the Tennessee Gas Pipeline system.
Throughput was essentially flat with the second quarter of 2008 as
volumes from recent expansions were offset by weaker demand due to
slower economic conditions. While the pipelines experience
fluctuations in throughput, there is no material impact to near-term
financial results because a significant portion of revenues are
derived from demand charges under long-term contracts.
During the second quarter of 2009, the Pipeline Group placed the TGP
Carthage expansion and the CIG Totem Storage project into service --
both on time and on budget.
Quarters Ended
Pipeline Group Results June 30,
($ in millions) 2009 2008
---------- ----------
EBIT before adjustment for non-controlling
interests $ 338 $ 303
Net income attributable to non-controlling
interests (11) (8)
---------- ----------
EBIT $ 327 $ 295
DD&A $ 102 $ 99
Total throughput (BBtu/d)(1) 17,929 17,981
1 Includes proportionate share of jointly owned pipelines
Exploration and Production
The Exploration and Production segment reported $61 million of EBIT
for the quarter ended June 30, 2009, compared with $304 million for
the same period in 2008. The decrease was primarily due to lower
realized commodity prices and lower production volumes, partially
offset by lower cash operating costs, MTM gains associated with
derivative hedging contracts and lower DD&A expense. Second quarter
2009 production volumes averaged 777 MMcfe/d, including 74 MMcfe/d of
unconsolidated affiliate volumes. Second quarter 2008 production
volumes averaged 833 MMcfe/d, including 71 MMcfe/d of unconsolidated
affiliate volumes. Production was lower due to a sharp drop in
drilling activity in response to lower natural gas and oil prices.
Production from the Camarupim development project offshore Brazil has
not yet begun and is now expected later this month. Total per-unit
cash operating costs decreased to an average of $1.68 per Mcfe in
second quarter 2009, compared with $2.01 per Mcfe for the same 2008
period primarily due to lower lease operating expenses and production
taxes partially offset by lower production volumes.
Quarters Ended
Exploration and Production Results June 30,
($ in millions, except price and unit cost amounts) 2009 2008
---------- ----------
Physical sales - natural gas, oil, condensate
and NGL $ 244 $ 789
Realized and unrealized gains (losses) on
financial derivatives(1) 55 (153)
Other revenues 10 19
---------- ----------
Total operating revenues $ 309 $ 655
Operating expenses(2) (233) (374)
Other income (expenses) (15) 23
---------- ----------
EBIT $ 61 $ 304
DD&A $ 91 $ 197
Consolidated volumes:
Natural gas sales volumes (MMcf/d) 605 662
Oil, condensate, and NGL sales volumes (MBbls/d) 16 17
Total consolidated equivalent sales volumes
(MMcfe/d) 703 762
Four Star total equivalent sales volumes (MMcfe/d)(3) 74 71
Weighted average realized prices including
financial derivative settlements
Natural gas ($/Mcf) $ 7.07 $ 9.57
Oil, condensate, and NGL ($/Bbl)(4) $ 75.21 $ 85.38
Transportation costs
Natural gas ($/Mcf) $ 0.25 $ 0.32
Oil, condensate, and NGL ($/Bbl) $ 0.84 $ 1.07
Per-unit costs ($/Mcfe)
DD&A $ 1.43 $ 2.84
Cash operating costs(5) $ 1.68 $ 2.01
1 Includes $99 million in 2009 and a loss of $46 million in 2008
reclassified from accumulated other comprehensive income/loss associated
with accounting hedges
2 2009 includes $12 million of ceiling test charges related to a dry hole
drilled in the South Mariut block in Egypt
3 Four Star is an equity investment. Amounts disclosed represent the
company's proportionate share
4 2009 includes approximately $50 million of the $186 million received in
the first quarter of 2009 related to the early settlement of $110 per
barrel oil derivative contracts originally scheduled to settle April
through June of 2009
5 Includes direct lifting costs, production taxes, G&A expenses, and taxes
other than production and income
Hedge Positions
As of August 5, 2009, El Paso had derivative positions that provide
price protection for approximately 70 percent of its estimated
domestic natural gas production for the last six months of 2009. The
natural gas positions have an average floor price of $9.02 per
million British thermal unit (MMBtu) on 80.5 trillion British thermal
units (TBtu) and an average ceiling price of $14.35 per MMBtu on 63.9
TBtu. The company also has fixed-price hedges on 1.3 million barrels
of crude oil with an average price of $53.75 per barrel. For 2010,
El Paso has natural gas positions that provide an average floor price
of $6.41 per MMBtu on 175 TBtu and an average ceiling price of $7.24
per MMBtu on 112.5 TBtu. For 2011, El Paso has natural gas
positions that provide an average floor price of $6.00 per MMBtu and
an average ceiling price of $8.66 per MMBtu on 136.0 TBtu. Further
information on the company's hedging activities will be available in
El Paso's Form 10-Q.
Other Operations
Marketing
The Marketing segment reported $10 million of EBIT for the quarter
ended June 30, 2009, compared with a $153 million EBIT loss for the
same period in 2008. Second quarter 2009 includes a $21 million MTM
gain on remaining Pennsylvania-New Jersey-Maryland power contracts,
compared with a second quarter 2008 loss of $105 million.
Additionally, in second quarter 2008 the Marketing segment incurred a
$52 million MTM loss on production-related derivative contracts
intended to economically hedge the company's natural gas and oil
production.
Power
The Power segment reported a $21 million EBIT loss for the quarter
ended June 30, 2009, compared with EBIT of $12 million for the same
period in 2008. The second quarter 2009 results reflect a $22
million loss on the sale of notes that were received earlier in 2009
when the company sold its investment in the Porto Velho power
facility in Brazil. In the second quarter of 2009, the company also
sold its investment in the Argentina to Chile pipeline for
approximately $32 million. EBIT in the second quarter of 2008 was
primarily due to a gain recognized on the sale of a power plant in
Asia.
Corporate and Other
During the second quarter of 2009, Corporate and Other reported EBIT
of $31 million, compared with EBIT of $41 million for the same period
in 2008. The decrease in EBIT is due to the change in the fair value
of a legacy indemnification from the sale of an ammonia facility,
offset by changes in legacy litigation adjustments.
Detailed operating statistics for each of El Paso's businesses will
be posted at www.elpaso.com in the Investors section.
Webcast Information
El Paso Corporation has scheduled a live webcast of its second
quarter 2009 results on August 6, 2009, beginning at 10 a.m. Eastern
Time, 9 a.m. Central Time, which may be accessed online through El
Paso's Web site at www.elpaso.com in the Investors section. During
the webcast, management will refer to slides that will be posted on
the Web site. The slides will be available one hour before the
webcast and can be accessed in the Investors section. A limited
number of telephone lines will also be available to participants by
dialing (888) 710-3574 (conference ID #21905029) 10 minutes prior to
the start of the webcast.
A replay of the webcast will be available online through the
company's Web site in the Investors section. A telephone audio
replay will be also available through August 14, 2009, by dialing
(800) 642-1687 (conference ID #21905029). If you have any questions
regarding this procedure, please contact Margie Fox at (713)
420-2903.
Disclosure of Non-GAAP Financial Measures
The SEC's Regulation G applies to any public disclosure or release of
material information that includes a non-GAAP financial measure. In
the event of such a disclosure or release, Regulation G requires (i)
the presentation of the most directly comparable financial measure
calculated and presented in accordance with GAAP and (ii) a
reconciliation of the differences between the non-GAAP financial
measure presented and the most directly comparable financial measure
calculated and presented in accordance with GAAP. The required
presentations and reconciliations are attached, or included in the
body of this release. Additional detail regarding non-GAAP financial
measures can be reviewed in El Paso's full operating statistics,
which will be posted at www.elpaso.com in the Investors section.
El Paso uses the non-GAAP financial measure "earnings before interest
expense and income taxes" or "EBIT" to assess the operating results
and effectiveness of the company and its business segments, which
consist of both consolidated businesses and investments in
unconsolidated affiliates. The company believes that EBIT is useful
to its investors because it allows them to evaluate more effectively
the performance of all of El Paso's businesses and investments using
the same performance measure analyzed internally by our management.
The company defines EBIT as net income (loss) adjusted for items such
as (i) interest and debt expense; (ii) income taxes; and (iii) net
income attributable to non-controlling interests so that our
investors may evaluate the company's operating results without regard
to its financing methods or capital structure. Exploration and
Production per-unit total cash operating costs is a non-GAAP measure
calculated on a per Mcfe basis equal to total operating expenses less
DD&A, transportation costs, ceiling test charges, and cost of products
and services divided by total production. It is a valuable measure of
operating performance and efficiency for our Exploration and
Production segment. For 2009, Adjusted EPS is earnings per share
attributable to El Paso Corporation common stockholders excluding
changes in fair value of power contracts, changes in fair value of
legacy natural gas contracts, changes in fair value of legacy
indemnification, the loss related to the sale of notes receivable
relating to Porto Velho sale, mark-to-market impact of E&P financial
derivatives, ceiling test charges, and the effect of the change in
the number of diluted shares. For 2008, Adjusted EPS is earnings per
share attributable to El Paso Corporation common stockholders
excluding changes in fair value of legacy indemnification, the gain
related to an adjustment of the liability for indemnification of
medical benefits for retirees of the Case Corporation, the gain
related to the disposition of a portion of the company's investment
in its telecommunications business, changes in fair value of power
contracts, and changes in fair value of the production-related
derivatives in Marketing, mark-to-market impact of E&P financial
derivatives, and other legacy litigation adjustments. Adjusted EPS
is useful in analyzing the company's on-going earnings potential.
El Paso believes that the non-GAAP financial measures described above
are also useful to investors because these measurements are used by
many companies in the industry as a measurement of operating and
financial performance and are commonly employed by financial analysts
and others to evaluate the operating and financial performance of the
company and its business segments and to compare the operating and
financial performance of the company and its business segments with
the performance of other companies within the industry.
These non-GAAP financial measures may not be comparable to similarly
titled measurements used by other companies and should not be used as
a substitute for net income (loss), income (loss) before income
taxes, operating income or operating cash flows, earnings per share
or other GAAP operating measurements.
El Paso Corporation provides natural gas and related energy products
in a safe, efficient, and dependable manner. El Paso owns North
America's largest interstate natural gas pipeline system and one of
North America's largest independent natural gas producers. For more
information, visit www.elpaso.com.
Cautionary Statement Regarding Forward-Looking Statements
This release includes certain forward-looking statements and
projections. The company has made every reasonable effort to ensure
that the information and assumptions on which these statements and
projections are based are current, reasonable, and complete. However,
a variety of factors could cause actual results to differ materially
from the projections, anticipated results or other expectations
expressed in this release, including, without limitation, changes in
unaudited and/or unreviewed financial information; volatility in, and
access to, the capital markets; our ability to implement and achieve
our objectives in our 2009 plan, including achieving our earnings and
cash flow targets; the effects of any changes in accounting rules and
guidance; our ability to meet production volume targets in our
Exploration and Production segment; our ability to comply with the
covenants in our various financing documents; our ability to obtain
necessary governmental approvals for proposed pipeline and E&P
projects and our ability to successfully construct and operate such
projects; the risks associated with recontracting of transportation
commitments by our pipelines; regulatory uncertainties associated
with pipeline rate cases; actions by the credit rating agencies; the
successful close of our financing transactions; our ability to close
asset sales, as well as transactions with partners on one or more of
our expansion projects that are included in the plan on a timely
basis; credit and performance risk of our lenders, trading
counterparties, customers, vendors and suppliers; changes in
commodity prices and basis differentials for oil, natural gas, and
power; our ability to obtain targeted cost savings in our businesses;
general economic and weather conditions in geographic regions or
markets served by the company and its affiliates, or where operations
of the company and its affiliates are located, including the risk of
a global recession and negative impact on natural gas demand; the
uncertainties associated with governmental regulation; political and
currency risks associated with international operations of the
company and its affiliates; competition; and other factors described
in the company's (and its affiliates') Securities and Exchange
Commission filings. While the company makes these statements and
projections in good faith, neither the company nor its management can
guarantee that anticipated future results will be achieved. Reference
must be made to those filings for additional important factors that
may affect actual results. The company assumes no obligation to
publicly update or revise any forward-looking statements made herein
or any other forward-looking statements made by the company, whether
as a result of new information, future events, or otherwise.
Certain of the production information in this press release include
the production attributable to El Paso's 49 percent interest in Four
Star Oil & Gas Company ("Four Star"). El Paso's Supplemental Oil and
Gas disclosures, which are included in its Annual Report on Form
10-K, reflect its proportionate share of the proved reserves of Four
Star separate from its consolidated proved reserves. In addition, the
proved reserves attributable to its proportionate share of Four Star
represent estimates prepared by El Paso and not those of Four Star.
Appendix to El Paso Corporation August 6, 2009 Earnings Press Release
Items Impacting six month results
Six Months Ended June 30, 2009 Before After Diluted
($ millions, except per share amounts) Tax Tax EPS
------- ------- -------
Net income (loss) attributable to EPC common
stockholders $ (899) $ (1.29)
Adjustments(1)
Ceiling test charges $ 2,080 $ 1,344 $ 1.93
Change in fair value of power contracts (55) (35) (0.05)
Change in fair value of legacy natural gas
contracts (18) (12) (0.02)
Change in fair value of legacy indemnification (25) (16) (0.02)
Loss on sale of notes receivable relating to
Porto Velho sale 22 22 0.03
MTM impact of E&P financial derivatives(2) 196 125 0.18
Effect of change in number of diluted shares (0.04)
-------
Adjusted EPS(3) $ 0.72
=======
1 Assumes a 36 percent tax rate except for international portion of ceiling
test charges and loss on sale of notes receivable relating to Porto Velho
sale and 695 million diluted shares
2 Consists of $449 million of MTM gains on derivatives, adjusted for
$645 million of realized gains from cash settlements
3 Based upon 763 million fully diluted shares and includes income impact
from dilutive securities
Adjusted earnings per share include $99 million, or $0.08 per share,
of early cash settlements of oil derivative contracts that hedged July
through December 2009 production.
Six Months Ended June 30, 2008 Before After Diluted
($ millions, except per share amounts) Tax Tax EPS
------- ------- -------
Net income attributable to EPC common
stockholders $ 391 $ 0.54
Adjustments(1)
Change in fair value of power contracts $ 146 $ 93 $ 0.12
Change in fair value of legacy indemnification 34 22 0.03
Case Corporation indemnification (65) (27) (0.04)
Gain on sale of portion of telecommunication
business (18) (12) (0.01)
Other legacy litigation adjustments (27) (29) (0.04)
Change in fair value of production-related
derivatives in Marketing 73 47 0.06
MTM impact of E&P financial derivatives(2) 92 59 0.08
-------
Adjusted EPS(3) $ 0.74
=======
1 Assumes a 36 percent tax rate, except for Case Corporation
indemnification and other legacy litigation adjustments, and 760 million
diluted shares
2 Consists of $203 million of MTM losses on financial derivatives, adjusted
for $111 million of realized losses from cash settlements
3 Based upon 768 million fully diluted shares and includes income impact
from dilutive securities
EL PASO CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per common share amounts)
(UNAUDITED)
Quarters Ended Six Months Ended
June 30, June 30,
------------------ ------------------
2009 2008 2009 2008
-------- -------- -------- --------
Operating revenues $ 973 $ 1,153 $ 2,457 $ 2,422
Operating expenses
Cost of products and services 52 71 113 127
Operation and maintenance 264 275 564 546
Ceiling test charges 12 7 2,080 7
Depreciation, depletion and
amortization 197 298 453 611
Taxes, other than income taxes 57 81 125 160
-------- -------- -------- --------
582 732 3,335 1,451
-------- -------- -------- --------
Operating income (loss) 391 421 (878) 971
Earnings from unconsolidated
affiliates 12 52 31 89
Other income, net 16 33 38 55
Noncontrolling interests (11) (7) (23) (16)
-------- -------- -------- --------
17 78 46 128
-------- -------- -------- --------
Earnings (loss) before interest
expense and income taxes (EBIT) 408 499 (832) 1,099
Adjustment for noncontrolling
interests 11 7 23 16
Interest and debt expense (253) (221) (508) (454)
-------- -------- -------- --------
Income (loss) before income taxes 166 285 (1,317) 661
Income tax expense (benefit) 66 87 (460) 235
-------- -------- -------- --------
Net income (loss) 100 198 (857) 426
Net income attributable to
noncontrolling interests (11) (7) (23) (16)
-------- -------- -------- --------
Net income (loss) attributable to
El Paso Corporation (EPC) 89 191 (880) 410
Preferred stock dividends 10 - 19 19
-------- -------- -------- --------
Net income (loss) attributable to
EPC's common stockholders $ 79 $ 191 $ (899) $ 391
======== ======== ======== ========
Basic earnings per common share
Net income (loss) attributable to
EPC's common stockholders $ 0.11 $ 0.27 $ (1.29) $ 0.56
======== ======== ======== ========
Diluted earnings per common share
Net income (loss) attributable to
EPC's common stockholders $ 0.11 $ 0.25 $ (1.29) $ 0.54
======== ======== ======== ========
Weighted average common shares
outstanding
Basic 696 698 695 698
======== ======== ======== ========
Diluted 699 761 695 760
======== ======== ======== ========
Dividends declared per EPC's
common share $ 0.05 $ - $ 0.10 $ 0.08
======== ======== ======== ========
EL PASO CORPORATION
SEGMENT INFORMATION
(UNAUDITED)
2009 2008 Year-to-Date
-------------- ------------------------------ --------------
(In millions) Q1 Q2 Q1 Q2 Q3 Q4 2009 2008
------ ------ ------ ------ ------ ------ ------ ------
Operating
revenues
Pipelines $ 733 $ 650 $ 720 $ 646 $ 628 $ 690 $1,383 $1,366
Exploration
and Pro-
duction 700 309 603 655 881 623 1,009 1,258
Marketing 53 15 (57) (146) 89 31 68 (203)
Power - - - - - - - -
Corporate
and other,
including
eliminat-
ions (1) (2) (1) 3 (2) - (1) (3) 1
------ ------ ------ ------ ------ ------ ------ ------
Consoli-
dated
total $1,484 $ 973 $1,269 $1,153 $1,598 $1,343 $2,457 $2,422
------ ------ ------ ------ ------ ------ ------ ------
Depreciation,
depletion and
amortization
Pipelines $ 104 $ 102 $ 99 $ 99 $ 97 $ 100 $ 206 $ 198
Exploration
and Pro-
duction 150 91 212 197 191 199 241 409
Marketing - - - - - - - -
Power - - - - - 1 - -
Corporate
and
other (1) 2 4 2 2 4 2 6 4
------ ------ ------ ------ ------ ------ ------ ------
Consoli-
dated
total $ 256 $ 197 $ 313 $ 298 $ 292 $ 302 $ 453 $ 611
------ ------ ------ ------ ------ ------ ------ ------
Operating
income
(loss)
Pipelines $ 367 $ 285 $ 357 $ 263 $ 241 $ 291 $ 652 $ 620
Exploration
and Pro-
duction (1,675) 76 226 281 528 (2,393) (1,599) 507
Marketing 52 10 (60) (154) 82 29 62 (214)
Power (3) (5) (8) (5) (5) (4) (8) (13)
Corporate
and
other (1) (10) 25 35 36 (7) 37 15 71
------ ------ ------ ------ ------ ------ ------ ------
Consoli-
dated
total $(1,269) $ 391 $ 550 $ 421 $ 839 $(2,040) $ (878) $ 971
------ ------ ------ ------ ------ ------ ------ ------
Earnings
before
interest
expense
and income
taxes
(EBIT)
Pipelines $ 396 $ 327 $ 381 $ 295 $ 278 $ 319 $ 723 $ 676
Exploration
and Pro-
duction (1,685) 61 242 304 532 (2,526) (1,624) 546
Marketing 52 10 (60) (153) 82 27 62 (213)
Power 4 (21) (2) 12 (6) (3) (17) 10
Corporate
and
other (1) (7) 31 39 41 (5) 49 24 80
------ ------ ------ ------ ------ ------ ------ ------
Consoli-
dated
total $(1,240) $ 408 $ 600 $ 499 $ 881 $(2,134) $ (832) 1,099
------ ------ ------ ------ ------ ------ ------ ------
Second Quarter Second Quarter
E&P Cash Costs 2009 2008
($MM) ($/Mcfe) ($MM) ($/Mcfe)
-------- -------- -------- --------
Total operating expense 233 $ 3.65 374 $ 5.40
Depreciation, depletion and
amortization (91) (1.43) (197) (2.84)
Transportation costs (15) (0.23) (21) (0.31)
Cost of products (8) (0.12) (10) (0.15)
Ceiling test charges (12) (0.19) (7) (0.09)
-------- -------- -------- --------
Per unit cash costs (2) 107 $ 1.68 139 $ 2.01
======== ======== ======== ========
Total equivalent volumes
(MMcfe) (2) 63,957 69,366
------------------ ------------------
(1) Includes corporate businesses, telecommunications business and
residual assets and liabilities of previously sold or discontinued
businesses.
(2) Excludes volumes and costs associated with equity investment in
Four Star
Contacts
Investor and Public Relations
Bruce Connery
Vice President
Office: (713) 420-5855
Media Relations
Bill Baerg
Manager
Office: (713) 420-2906
SOURCE: El Paso Corporation
|
El Paso Corp.
