El Paso Corp. (ticker: EP, exchange: New York Stock Exchange (.N))
News Release -
3-Nov-2009
El Paso Corporation Reports Strong Third Quarter Financial and Operational ResultsHOUSTON, TX, Nov 03, 2009 (MARKETWIRE via COMTEX) -- El Paso Corporation (NYSE: EP) is today reporting third quarter 2009
financial and operational results for the
company.
Highlights:
- $0.23 adjusted diluted earnings per share (EPS) versus $0.35 in 2008.
A sharp increase in Pipeline Group earnings was more than offset by lower
natural gas and oil prices.
- 2009 adjusted earnings per share guidance raised to $1.15 to $1.20.
- Third quarter 2009 reported EPS of $0.08 per diluted share versus
$0.58 in 2008. A sharp decline in natural gas prices in the company's
Exploration and Production (E&P) business was the major reason for lower
reported earnings.
- Third quarter 2009 Pipeline Group earnings before interest expense and
taxes (EBIT) rose 17 percent from the third quarter of 2008.
- Third quarter production averaged 732 million cubic feet equivalent
per day (MMcfe/d), including 71 MMcfe/d of Four Star volumes. Strong
domestic results, particularly from Haynesville Shale activities, offset
delays in Brazil's Camarupim project.
- The company announced that its first Eagle Ford shale well was
successful and that it had increased its acreage position to 112,000 net
acres.
"I am very pleased with our third quarter financial results and the
solid execution by our Pipeline and E&P businesses," said Doug Foshee,
chairman, president, and chief executive officer of El Paso
Corporation. "We placed the Piceance Lateral Expansion project in
service during the quarter -- on time and on budget, while at the
same time advancing other projects in our committed backlog as well
as new growth opportunities. In E&P, we continued to generate
excellent results from our Haynesville Shale program and have ramped
up our activity level to five rigs. Importantly, we are transferring
our Haynesville expertise to the Eagle Ford Shale, where we are off
to a great start. In summary, we are generating consistent results
that will provide sustained value creation for our shareholders."
A summary of financial results for the quarters and nine-month
periods ended September 30, 2009 and 2008 is as follows:
Financial Results
Quarters Ended Nine Months Ended
($ in millions, except per September 30, September 30,
share amounts) 2009 2008 2009 2008
---------- ---------- --------- ----------
Net income (loss) attributable
to El Paso Corporation (EPC) $ 67 $ 445 $ (813) $ 855
Preferred stock dividends 9 9 28 28
---------- ---------- --------- ----------
Net income (loss) attributable
to EPC common stockholders $ 58 $ 436 $ (841) $ 827
========== ========== ========= ==========
Basic per common share amounts
Net income (loss) attributable
to EPC common stockholders $ 0.08 $ 0.63 $ (1.21) $ 1.19
========== ========== ========= ==========
Diluted per common share
amounts
Net income (loss) attributable
to EPC common stockholders $ 0.08 $ 0.58 $ (1.21) $ 1.12
========== ========== ========= ==========
Items Impacting Quarterly Results
Third quarter 2009 and 2008 net income includes the following items:
Third Quarter 2009
($ millions, except per Before After Diluted
share amounts) Tax Tax EPS
---------- ---------- ----------
Net income attributable to EPC common
stockholders $ 58 $ 0.08
Adjustments (1)
Ceiling test charges $ 5 $ 5 $ 0.01
Change in fair value of power contracts 6 4 0.01
Change in fair value of legacy natural
gas contracts 14 9 0.01
Change in fair value of legacy
indemnification and other 16 10 0.01
Impact of E&P financial derivatives (2) 118 75 0.11
----------
Adjusted EPS (3) $ 0.23
==========
(1) Assumes a 36 percent tax rate, except for international ceiling test
charges and 700 million diluted shares
(2) Consists of $87 million of gains
on financial derivatives, adjusted for $205 million of realized gains from
cash settlements
(3) Based upon 758 million fully diluted shares and includes
income impact from dilutive securities
Adjusted EPS for the quarter do not include $50 million, or $0.04
per share, of early cash settlements of oil derivative contracts that
hedged July through September 2009 production that were realized in
the first quarter of 2009.
Third Quarter 2008 ($ millions, except Before After Diluted
per share amounts) Tax Tax EPS
--------- --------- ---------
Net income attributable to EPC common
stockholders $ 436 $ 0.58
Adjustments (1)
Change in fair value of power contracts $ (63) $ (40) $ (0.05)
Change in fair value of legacy
indemnification 12 8 0.01
Change in fair value of
production-related derivatives in
Marketing (14) (9) (0.01)
Impact of E&P financial derivatives (2) (215) (138) (0.18)
---------
Adjusted EPS (3) $ 0.35
=========
(1) Assumes a 36 percent tax rate and 766 million diluted shares
(2) Consists of $158 million of gains on financial derivatives, adjusted
for $57 million
of realized losses from cash settlements
(3) Based upon 766 million fully
diluted shares and includes income impact from dilutive securities
Financial Results - Nine Months Ended September 30, 2009
For the nine months ended September 30, 2009, El Paso reported a net
loss attributable to EPC common stockholders of $841 million, or $1.21
per diluted share, compared with net income of $827 million, or $1.12
per diluted share, for the first nine months of 2008. Earnings for
the nine month periods of 2009 and 2008, after adjusting for the
impacts of production-related derivatives, ceiling test charges and
other items, were $0.95 and $1.09 per diluted share, respectively. A
schedule of items affecting year-to-date results is included in the
appendix of this release.
Business Unit Financial Update
Quarters Ended Nine Months Ended
Segment EBIT Results September 30, September 30,
($ in millions) 2009 2008 2009 2008
--------- --------- --------- ---------
Pipeline Group $ 326 $ 278 $ 1,049 $ 954
Exploration and Production 88 532 (1,536) 1,078
Marketing (28) 82 34 (131)
Power (8) (6) (25) 4
Corporate and Other (20) (5) 4 75
--------- --------- --------- ---------
$ 358 $ 881 $ (474) $ 1,980
========= ========= ========= =========
Pipeline Group
The Pipeline Group's EBIT for the quarter ended September 30, 2009
was $326 million, compared with $278 million for the same period in
2008. Third quarter results benefited from several expansion
projects that went into service throughout 2008 and 2009 including
the Medicine Bow expansion, the High Plains Pipeline, the Carthage
Expansion, and the Totem Gas Storage project. Third quarter 2009
results were also favorably impacted by lower O&M costs and higher
volumes and realized prices on operational sales of gas not used in
operations. Total throughput decreased slightly from the third
quarter of 2008 as weaker demand due to slower economic conditions
was mostly offset by incremental volumes from the recent expansions
listed above. While the pipelines experience fluctuations in
throughput, there is no material impact to near-term financial
results because a significant portion of revenues are derived from
demand charges under long-term contracts. Third quarter 2009
financial results also improved compared to third quarter 2008 due to
the impact of lost natural gas and higher operations and maintenance
costs in 2008 as a result of facility damage caused by Hurricanes Ike
and Gustav.
During the third quarter of 2009, the Pipeline Group placed the WIC
Piceance Lateral Expansion project into service -- both on time and
on
budget.
Quarters Ended
Pipeline Group Results September 30,
($ in millions) 2009 2008
--------- ---------
EBIT before adjustment for non-controlling interests $ 341 $ 285
Net income attributable to non-controlling interests (15) (7)
--------- ---------
EBIT $ 326 $ 278
DD&A $ 104 $ 97
Total throughput (BBtu/d) (1) 17,757 18,905
(1) Includes proportionate share of jointly owned pipelines
Exploration and Production
The Exploration and Production segment reported $88 million of EBIT
for the quarter ended September 30, 2009, compared with $532 million
for the same period in 2008. The decrease was primarily due to lower
realized commodity prices, lower production volumes, lower MTM gains
associated with derivative hedging contracts and a $16 million
impairment of casing and tubular goods inventory, partially offset by
lower cash operating costs and lower DD&A expense. Third quarter
2009 production volumes averaged 732 MMcfe/d, including 71 MMcfe/d of
unconsolidated affiliate volumes. Third quarter 2008 production
volumes averaged 793 MMcfe/d, including 75 MMcfe/d of unconsolidated
affiliate volumes. Production was lower primarily due to a sharp
drop in drilling activity in response to lower natural gas and oil
prices. Third quarter 2008 production volumes were negatively
affected by 41 MMcfe/d as a result of hurricanes and a tropical
storm. Total per-unit cash operating costs decreased to an average
of $1.78 per Mcfe in third quarter 2009, compared with $1.89 per Mcfe
for the same 2008 period. The decrease was primarily due to lower
lease operating expenses and production taxes, partially offset by
lower production volumes. Third quarter 2009 lease operating
expenses were negatively impacted by $0.19 per unit due to start up
costs from the Camarupim project in Brazil. Additionally, cash
operating costs in the third quarter of 2008 included a $20 million,
or a $0.30 per-unit reversal of an accrual of a favorable ruling on a
legal matter.
Production from the first of four planned wells of the Camarupim
project in Brazil began in October. That well has gross production
in excess of 90 MMcfe/d, which is more than 20 MMcfe/d, net to El
Paso's interest.
El Paso also announced that its first Eagle Ford shale well in La
Salle County, Texas was recently drilled with a 4,000 foot horizontal
lateral and completed with a 16-stage frac. The well is still
cleaning up with volumes steadily increasing. The current flow rate
is approximately 6.1 MMcfe/d with a flowing tubing pressure of 5,200
psi. The company has almost doubled its lease position to 112,000
net acres. El Paso will maintain a one-rig program as it progresses
in this new play.
Exploration and Production Results Quarters Ended
September 30,
($ in millions, except price and unit cost amounts) 2009 2008
--------- ---------
Physical sales - natural gas, oil, condensate and NGL $ 245 $ 700
Realized and unrealized gains on financial
derivatives (1) 87 158
Other revenues 11 23
--------- ---------
Total operating revenues $ 343 $ 881
Operating expenses (2) (246) (353)
Other income (expenses) (9) 4
--------- ---------
EBIT $ 88 $ 532
DD&A $ 93 $ 191
Consolidated volumes:
Natural gas sales volumes (MMcf/d) 574 615
Oil, condensate, and NGL sales volumes (MBbls/d) 15 17
Total consolidated equivalent sales volumes (MMcfe/d) 661 718
Four Star total equivalent sales volumes (MMcfe/d)(3) 71 75
Weighted average realized prices including financial
derivative settlements
Natural gas ($/Mcf) $ 7.37 $ 8.67
Oil, condensate, and NGL ($/Bbl) (4) $ 82.25 $ 88.13
Transportation costs
Natural gas ($/Mcf) $ 0.24 $ 0.37
Oil, condensate, and NGL ($/Bbl) $ 0.80 $ 1.18
Per-unit costs ($/Mcfe)
DD&A $ 1.54 $ 2.89
Cash operating costs (5) $ 1.78 $ 1.89
(1) Includes a gain of $95 million in 2009 and a loss of $66 million in
2008 reclassified from accumulated other comprehensive income/loss
associated with accounting hedges
(2) 2009 includes $5 million of ceiling test charges primarily related to
buyout fees for a drilling rig contract in Egypt and a $16 million
charge related to the impairment of casing and tubular goods inventory.
(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 July
through September of 2009
(5) Includes direct lifting costs, production taxes, G&A expenses, and
taxes other than production and income
Hedge Positions
As of November 4, 2009, El Paso had derivative positions that provide
price protection for approximately 70 percent of its estimated
domestic natural gas production for the last three months of 2009.
The natural gas positions have an average floor price of $9.02 per
million British thermal unit (MMBtu) on 40.3 trillion British thermal
units (TBtu) and an average ceiling price of $14.35 per MMBtu on 32.0
TBtu. The company also has fixed-price hedges on 0.7 million barrels
of crude oil with an average price of $56.48 per barrel. For 2010,
El Paso has natural gas positions that provide an average floor price
of $6.41 per MMBtu on 175.0 TBtu and an average ceiling price of
$7.24 per MMBtu on 112.5 TBtu. El Paso's 2010 positions also
included fixed-price hedges on 2.4 million barrels of crude oil with
an average price of $74.63. 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 136.1 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 a $28 million EBIT loss for the
quarter ended September 30, 2009, compared with $82 million of EBIT
for the same period in 2008. Third quarter 2009 includes a $6
million MTM loss on remaining
Pennsylvania-New Jersey-Maryland power
contracts, compared with a third quarter 2008 gain of $63 million.
Third quarter 2008 results also include a $17 million gain from
proceeds on various Enron bankruptcy claims and a $14 million gain
related to changes in the fair value of derivatives intended to
manage the price risk of the company's oil production.
Corporate and Other
During the third quarter of 2009, Corporate and Other reported a $20
million EBIT loss, compared with a $5 million EBIT loss for the same
period in 2008. The EBIT loss in 2009 is greater primarily due to
higher legacy environmental remediation costs.
Detailed operating statistics for 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 third quarter
2009 results on November 4, 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 #38617810) 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 November 13, 2009, by dialing
(800) 642-1687 (conference ID #38617810). 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 and other impairment 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 YTD 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 and other items, the loss
related to the sale of notes receivable relating to Porto Velho sale,
impact of E&P financial derivatives, ceiling test charges, and the
effect of the change in the number of diluted shares. For YTD 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, impact of E&P financial
derivatives, and other legacy litigation adjustments. Adjusted EPS
is useful in analyzing the company's on-going earnings potential.
Full-year 2009 projected EPS is subject to the same adjustments as
shown for YTD 2009 Adjusted EPS above plus an expected charge from
the reorganization announced on November 3, 2009. The improvement
from original guidance is primarily due to lower DD&A as a result of
ceiling test charges during the year. Projected Adjusted EPS is
useful as a indicator or the earnings power of the company.
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, our ability
to achieve the targeted costs savings from the announced
reorganization; complete planned asset sales; change management risk
associated with the reorganization; our ability to pay the dividends
declared; 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 and
updated guidance, 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 successfully identify and finance
new Midstream opportunities; 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; 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; 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 November 3, 2009 Earnings Press
Release
Items Impacting Nine Month Results
Nine Months Ended September 30, 2009 Before After Diluted
($ millions, except per share amounts) Tax Tax EPS
--------- --------- ---------
Net income (loss) attributable to EPC
common stockholders $ (841) $ (1.21)
Adjustments (1)
Ceiling test charges $ 2,085 $ 1,349 $ 1.94
Change in fair value of power contracts (49) (31) (0.05)
Change in fair value of legacy natural
gas contracts (4) (3) -
Change in fair value of legacy
indemnification and other (9) (6) (0.01)
Loss on sale of notes receivable
relating to Porto Velho sale 22 22 0.03
Impact of E&P financial derivatives (2) 314 201 0.29
Effect of change in number of diluted
shares (0.04)
---------
Adjusted EPS (3) $ 0.95
=========
(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 $536 million of gains on financial derivatives, adjusted
for $850 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 include $49 million, or $0.04 per share,
of early cash settlements of oil derivative contracts that hedged
October through December 2009 production.
Nine Months Ended September 30, 2008 Before After Diluted
($ millions, except per share amounts) Tax Tax EPS
--------- --------- ---------
Net income attributable to EPC common
stockholders $ 827 $ 1.12
Adjustments (1)
Change in fair value of power contracts $ 83 $ 53 $ 0.07
Change in fair value of legacy
indemnification 46 29 0.04
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 59 38 0.05
Impact of E&P financial derivatives (2) (123) (79) (0.10)
---------
Adjusted EPS (3) $ 1.09
=========
(1) Assumes a 36 percent tax rate, except for Case Corporation
indemnification and other legacy litigation adjustments, and 767 million
diluted shares
(2) Consists of $45 million of losses on derivatives, adjusted for $168
million of realized losses from cash settlements
(3) Based upon 767 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 9 Months Ended
September 30, September 30,
---------------- ----------------
2009 2008 2009 2008
------- ------- ------- -------
Operating revenues $ 981 $ 1,598 $ 3,438 $ 4,020
Operating expenses
Cost of products and services 45 68 158 195
Operation and maintenance 346 328 910 874
Ceiling test charges 5 1 2,085 8
Depreciation, depletion and
amortization 200 292 653 903
Taxes, other than income taxes 56 70 181 230
------- ------- ------- -------
652 759 3,987 2,210
------- ------- ------- -------
Operating income (loss) 329 839 (549) 1,810
Earnings from unconsolidated affiliates 11 52 42 141
Other income, net 33 (3) 71 52
Noncontrolling interests (15) (7) (38) (23)
------- ------- ------- -------
29 42 75 170
------- ------- ------- -------
Earnings (loss) before interest expense
and income taxes (EBIT) 358 881 (474) 1,980
Adjustment for noncontrolling interests 15 7 38 23
Interest and debt expense (256) (221) (764) (675)
------- ------- ------- -------
Income (loss) before income taxes 117 667 (1,200) 1,328
Income tax expense (benefit) 35 215 (425) 450
------- ------- ------- -------
Net income (loss) 82 452 (775) 878
Net income attributable to
noncontrolling interests (15) (7) (38) (23)
------- ------- ------- -------
Net income (loss) attributable to El
Paso Corporation (EPC) 67 445 (813) 855
Preferred stock dividends 9 9 28 28
------- ------- ------- -------
Net income (loss) attributable to EPC's
common stockholders $ 58 $ 436 $ (841) $ 827
======= ======= ======= =======
Basic earnings per common share
Net income (loss) attributable to
EPC's common stockholders $ 0.08 $ 0.63 $ (1.21) $ 1.19
======= ======= ======= =======
Diluted earnings per common share
Net income (loss) attributable to
EPC's common stockholders $ 0.08 $ 0.58 $ (1.21) $ 1.12
======= ======= ======= =======
Weighted average common shares
outstanding
Basic 696 696 695 697
======= ======= ======= =======
Diluted 700 766 695 767
======= ======= ======= =======
Dividends declared per EPC's common
share $ 0.05 $ 0.05 $ 0.15 $ 0.13
======= ======= ======= =======
EL PASO CORPORATION
SEGMENT INFORMATION
(UNAUDITED)
2009 2008
------------------- -------------------------------
(In millions) Q1 Q2 Q3 Q1 Q2 Q3 Q4
------- ---- ---- ------ ------ ------ -------
Operating revenues
Pipelines $ 733 $650 $667 $ 720 $ 646 $ 628 $ 690
Exploration and
Production 700 309 343 603 655 881 623
Marketing 53 15 (26) (57) (146) 89 31
Power - - - - - - -
Corporate and
other, including
eliminations (1) (2) (1) (3) 3 (2) - (1)
------- ---- ---- ------ ------ ------ -------
Consolidated
total $ 1,484 $973 $981 $1,269 $1,153 $1,598 $ 1,343
------- ---- ---- ------ ------ ------ -------
Depreciation,
depletion and
amortization
Pipelines $ 104 $102 $104 $ 99 $ 99 $ 97 $ 100
Exploration and
Production 150 91 93 212 197 191 199
Marketing - - - - - - -
Power - - - - - - 1
Corporate and
other (1) 2 4 3 2 2 4 2
------- ---- ---- ------ ------ ------ -------
Consolidated
total $ 256 $197 $200 $ 313 $ 298 $ 292 $ 302
------- ---- ---- ------ ------ ------ -------
Operating income
(loss)
Pipelines $ 367 $285 $294 $ 357 $ 263 $ 241 $ 291
Exploration and
Production (1,675) 76 97 226 281 528 (2,393)
Marketing 52 10 (28) (60) (154) 82 29
Power (3) (5) (6) (8) (5) (5) (4)
Corporate and
other (1) (10) 25 (28) 35 36 (7) 37
------- ---- ---- ------ ------ ------ -------
Consolidated
total $(1,269) $391 $329 $ 550 $ 421 $ 839 $(2,040)
------- ---- ---- ------ ------ ------ -------
Earnings before
interest expense
and income taxes
(EBIT)
Pipelines $ 396 $327 $326 $ 381 $ 295 $ 278 $ 319
Exploration and
Production (1,685) 61 88 242 304 532 (2,526)
Marketing 52 10 (28) (60) (153) 82 27
Power 4 (21) (8) (2) 12 (6) (3)
Corporate and
other (1) (7) 31 (20) 39 41 (5) 49
------- ---- ---- ------ ------ ------ -------
Consolidated
total $(1,240) $408 $358 $ 600 $ 499 $ 881 $(2,134)
------- ---- ---- ------ ------ ------ -------
Year-to-Date
--------------
(In millions) 2009 2008
------ ------
Operating revenues
Pipelines $2,050 $1,994
Exploration and
Production 1,352 2,139
Marketing 42 (114)
Power - -
Corporate and
other, including
eliminations (1) (6) 1
------ ------
Consolidated
total $3,438 $4,020
------ ------
Depreciation,
depletion and
amortization
Pipelines $ 310 $ 295
Exploration and
Production 334 600
Marketing - -
Power - -
Corporate and
other (1) 9 8
------ ------
Consolidated
total $ 653 $ 903
------ ------
Operating income
(loss)
Pipelines $ 946 $ 861
Exploration and
Production (1,502) 1,035
Marketing 34 (132)
Power (14) (18)
Corporate and
other (1) (13) 64
------ ------
Consolidated
total $ (549) $1,810
------ ------
Earnings before
interest expense
and income taxes
(EBIT)
Pipelines $1,049 $ 954
Exploration and
Production (1,536) 1,078
Marketing 34 (131)
Power (25) 4
Corporate and
other (1) 4 75
------ ------
Consolidated
total $ (474) $1,980
------ ------
(1) Includes our corporate businesses, telecommunications business and
residual assets and liabilities of previously sold or discontinued
businesses.
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.
