El Paso Corp. (ticker: EP, exchange: New York Stock Exchange (.N))
News Release -
El Paso Energy Reports 22 Percent Increase in Second Quarter Earnings Per Share, Declares Quarterly Dividend
Houston, Texas, July 27, 1998-El Paso Energy Corporation (NYSE:EPG) today announced record second quarter
1998 earnings of $0.45 per diluted share, an increase of 22 percent from $0.37 in 1997.
Diluted average common shares outstanding for the quarter were 129.0 million.
Consolidated earnings before interest expense and income taxes (EBIT) for the second
quarter increased to $149 million from $139 million in the year ago quarter.
For the first six months of 1998, diluted earnings per share increased 18 percent
to $0.92, compared to $0.78 in the year ago period. Consolidated EBIT for the six months
increased to $312 million compared to $288 million in 1997.
"Each of our business units once again contributed a solid operating performance,
which together produced another record quarter for El Paso Energy Corporation,"
said William A. Wise, chairman, president, and chief executive officer. "Given the
demonstrated success of our operations and the company's strategically positioned
asset base, we are excited about our opportunities for continued growth."
Second Quarter Business Segment Results
Tennessee Gas Pipeline Company reported second quarter EBIT of $73 million
compared to $74 million a year ago. The $1 million decrease in EBIT versus the year ago
quarter was the result of lower Tennessee system throughput due to reduced storage
injections and generally mild weather in the company's market areas. Tennessee system
throughput averaged 4,842 BBtu/d.
El Paso Natural Gas Company reported second quarter EBIT of $56 million
compared to $70 million in 1997. The decrease resulted from lower revenues due to contract
stepdowns, partially offset by additional revenues from remarketed pipeline capacity. El
Paso system throughput averaged 3,873 BBtu/d in the second quarter of 1998, up 5
percent from the year ago period.
El Paso Field Services Company reported second quarter EBIT of $18 million
compared to $13 million in 1997. The increase was primarily attributable to higher San
Juan Basin gathering and treating rates and last year's acquisition of the Tejas
Power Company gathering and processing assets. Average gathering and treating volumes rose
81 percent to 4,147 BBtu/d, and average processing volumes rose 17 percent to
El Paso Energy Marketing Company reported break-even results for the second
quarter of 1998, a significant improvement over the $15 million EBIT loss reported in
1997. Total average marketed gas volumes in the quarter were 8,761 BBtu/d, while total
power sales exceeded 11.8 million megawatt hours.
El Paso Energy International Company reported second quarter EBIT of
$9 million compared to $6 million in 1997, reflecting the continued growth of the
company's worldwide power and pipeline infrastructure development activities.
El Paso Energy incurred net corporate expenses in the second quarter of
approximately $7 million, compared to $9 million in the year ago period.
In a separate action, the Board of Directors of El Paso Energy declared a
quarterly dividend of 19.125 cents per share, payable October 1, 1998 to shareholders of
record on September 4, 1998.
With over $9 billion in assets, El Paso Energy Corporation provides energy
solutions through five business units: Tennessee Gas Pipeline Company, El Paso
Natural Gas Company, El Paso Field Services Company, El Paso Energy Marketing
Company, and El Paso Energy International Company. The company owns the nation's
only integrated coast-to-coast natural gas pipeline system and has operations in
interstate natural gas transmission, gas gathering and processing, energy marketing, and
international infrastructure development. Visit El Paso Energy's web site at
This release includes forward-looking statements and projections, made in
reliance on the safe harbor provisions of the Private Securities Litigation Reform Act of
1995. The companies have 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. While the companies make these statements and projections in good faith,
neither the companies nor their managements can guarantee that the anticipated future
results will be achieved. Reference should be made to the companies' (and their
affiliates') Securities and Exchange Commission filings for additional important
factors that may affect actual results.