El Paso Corp. (ticker: EP, exchange: New York Stock Exchange (.N))
News Release -
El Paso Reports 36-Percent Increase in Second Quarter 2001 Adjusted Earnings Per Share
HOUSTON, TEXAS, July 25, 2001-El Paso Corporation (NYSE:EPG)
today reported that adjusted diluted earnings per share increased by 36 percent
to $0.79 compared with an adjusted $0.58 in the second quarter of 2000. Second
quarter adjusted net income rose 40 percent to $413 million in 2001 from an
adjusted $294 million in 2000. The adjusted results exclude net after-tax
merger-related costs, asset impairments, and other charges and extraordinary
items totaling $506 million in 2001 and $33 million in 2000. Diluted average
common shares outstanding totaled 532 million for 2001 compared with 511 million
Consolidated earnings before interest expense and taxes (EBIT), adjusted for
non-recurring items, increased 30 percent to an adjusted $955 million from an
adjusted $733 million in 2000.
"El Paso's earnings momentum continues to be strong, and we are on track
to deliver more than 20 percent earnings per share growth in 2001," said
William A. Wise, chairman, president, and chief executive officer of El Paso.
"Once again, each of our businesses delivered exceptional results. With the
strategies and opportunities we have in place, the outlook for El Paso remains
For the first six months of 2001, diluted earnings per share increased 39
percent to an adjusted $1.75 from an adjusted $1.26 for the first six months of
2000. Results for both periods exclude the impact of extraordinary gains on the
sale of assets and merger-related costs and asset impairment charges.
Consolidated EBIT for the first six months of 2001, excluding non-recurring
items, increased by 36 percent to $2,048 million.
The Pipeline Group had another excellent quarter as adjusted EBIT rose 7 percent
to $315 million from $295 million in the second quarter of 2000. Total pipeline
system throughput for the second quarter 2001 averaged 18,479 billion British
thermal units per day (BBtu/d), up 4 percent from 2000 levels. These volumes
exclude those on the Midwestern Gas Transmission system, which was sold during
the second quarter pursuant to El Paso's combination with The Coastal
The Merchant Energy Group reported adjusted EBIT of $265 million, up 8
percent from $245 million in the second quarter of 2000. The increase was
broad-based, reflecting more customer origination activity, greater income from
international operations, and continued growth in fee-based income from power
assets and the financial services businesses. Physical natural gas and power
volumes rose 51 percent and 99 percent, respectively, while financial volumes
increased 58 percent from 2000 levels.
El Paso Production Company's production rose to 1,752 million cubic feet per
day (MMcf/d) equivalent, up 3 percent from first quarter 2001 levels and 6
percent from a year ago. Adjusted EBIT increased 75 percent to $296 million from
$169 million last year. The company's realized natural gas price rose to $3.49
per thousand cubic feet (Mcf) from $2.56 per Mcf a year ago, while realized oil,
condensate, and liquids prices were slightly down at $22.98 per barrel. The
company is currently producing 1,870 MMcf/d equivalent. The continued growth in
production has been driven by strong drilling results in all the company's core
regions, particularly in South Texas.
El Paso Field Services reported adjusted second quarter 2001 EBIT of $65
million compared with second quarter 2000 EBIT of $52 million. The 25-percent
improvement reflects higher gathering and processing volumes as a result of the
December 2000 acquisition of PG&E's Texas midstream operations. During the
second quarter of 2001, gathering and treating volumes increased 72 percent to
6,742 BBtu/d, while processing volumes rose 40 percent to 4,340 BBtu/d. Per unit
margins for gathering and processing were down slightly from a year ago.
El Paso Corporation is committed to meeting energy needs throughout North
America and the world with operations that span the energy value chain from
wellhead to electron. The company is focused on speeding the development of new
energy sources to address critical energy shortages across the globe. Visit El Paso at www.elpaso.com.
attached table of financial information by clicking here.
View the attached
table of operating statistics by clicking here.
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 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. While the company makes
these statements and projections in good faith, neither the company nor its
management can guarantee that the anticipated future results will be achieved.
Reference should be made to the company's (and its affiliates') Securities and
Exchange Commission filings for additional important factors that may affect