El Paso Corp. (ticker: EP, exchange: New York Stock Exchange (.N))
News Release -
6-Nov-2006
El Paso Corporation Reports Substantial Increase in Third Quarter Earnings HOUSTON, Nov. 6 /PRNewswire-FirstCall/ -- El Paso Corporation (NYSE: EP)
is providing today third quarter 2006 financial and operational results for
the company.
Highlights:
- $0.18 earnings per fully diluted share from continuing operations
versus a loss of $0.50 in 2005
- $2,002-million cash flow from continuing operations for first nine
months
- $3.1-billion reduction in gross debt through September 30
- Pipelines deliver outstanding results
- E&P drilling continued 99-percent success rate through September 30
- Third consecutive quarter of production growth
- Completed exit of domestic power business
"El Paso's results reflect continued progress towards our 2006 goals,"
said Doug Foshee, El Paso's president and chief executive officer. "Our
pipelines delivered another outstanding quarter while our E&P business had its
third consecutive quarter of production growth and continued its 99-percent
drilling success rate. Over the past few months, we have reached some
important milestones -- the completion of our exit from the domestic power
business, the restructuring of our bank facilities at favorable terms, and the
resolution of shareholder litigation. These accomplishments position the
company well for the future and further El Paso's position as one of North
America's leading energy companies."
Third Quarter Financial Results
For the three months ended September 30, 2006, El Paso reported net income
available to common stockholders of $126 million, or $0.18 per diluted share,
compared with a net loss of $321 million, or $0.50 per diluted share, for the
same period in 2005. Results for 2006 include $48 million ($0.04 per diluted
share) of pre-tax, non-cash, mark-to-market (MTM) gains on derivatives
intended to hedge the price risk of natural gas and oil production net of
third quarter settlements. Third quarter 2006 results also include the
following:
($ in millions) Pre-tax After-tax(1)
MTM on production basis hedges (E&P other
revenues) (45) (29)
MCV sale-MTM impact (trade book) (133) (85)
Revolver debt restructuring charge (17) (11)
Resolution of tax matters - 105
(1)Assumes 36 percent tax rate
With regards to the table above, the $45-million, MTM loss is on
derivatives used to hedge basis risk on E&P production volumes. The MTM loss
of approximately $133 million in Marketing & Trading is associated with the
sale of El Paso's interest in Midland Cogeneration Venture (MCV). The $17-
million charge is associated with the previously announced restructuring of El
Paso's bank facilities, and $105 million of net tax benefits were realized
primarily as a result of concluding IRS audits through 2002.
During the same period in 2005, price risk management derivatives
generated a $382-million, MTM loss, net of third quarter settlements partially
offset by a $45-million, MTM gain on the Cordova tolling agreement. Results in
2005 were also impacted by a $159-million loss associated with MCV's
impairment of its power plant and $31 million of losses related to a contract
buyout and asset disposition in Field Services, partially offset by a
$109-million gain on the sale of the company's interest in a power plant in
Korea.
For the nine months ended September 30, 2006, El Paso reported net income
available to common stockholders of $613 million, or $0.87 per diluted share,
compared with a net loss of $461 million, or $0.72 per diluted share, for the
first nine months of 2005. Results for 2006 include $234 million ($0.20 per
diluted share) of pre-tax, non-cash, MTM, gains on derivatives intended to
hedge the price risk of natural gas and oil production net of year-to-date
settlements. Nine month results also include a $40-million, MTM loss on
derivatives used to hedge basis risk on E&P production volumes, an MTM loss of
approximately $133-million in Marketing & Trading associated with the sale of
El Paso's interest in MCV, a $17-million charge associated with the
restructuring of El Paso's bank facilities, and $163 million of net tax
benefits realized primarily as a result of concluding IRS audits through 2002.
During the same period in 2005, price risk management derivatives
generated a $500-million, MTM loss net of year-to-date settlements. In
addition, results for the first nine months of 2005 were impacted by $35
million of net losses on the sale of assets and investments, driven primarily
by a $159-million loss associated with MCV's impairment of its power plant
offset by a $109-million gain on the sale of the company's interest in a power
plant in Korea. Also, 2005 results were impacted by a $59-million charge for
the early payoff of the western energy settlement, $30 million of
restructuring costs, and $28 million of losses related to a contract buyout in
Field Services.
A summary of financial results for the three months ended September 30,
2006 and 2005 are as follows:
Financial Results Three Months Ended
($ in millions, except per-share amounts) September 30,
2006 2005
Earnings before interest and taxes (EBIT)
Pipelines $305 $272
Exploration and Production 141 169
Marketing and Trading (108) (398)
Power 38 (46)
Field Services (1) - (22)
Corporate (17) (67)
-------------------
Total $359 $(92)
==== =====
Income (loss) from continuing operations $135 $(293)
Discontinued operations, net of income taxes - (19)
-------------------
Net income (loss) 135 (312)
Preferred stock dividends 9 9
-------------------
Net income (loss) available to common stockholders $126 $(321)
==== =====
(1) El Paso completed its exit from the midstream business in 2005.
Three Months Ended
September 30,
2006 2005
Earnings (loss) per common share
Basic
Income (loss) from continuing operations $0.18 $(0.47)
Discontinued operations - (0.03)
-------------------
Net income (loss) $0.18 $(0.50)
Diluted ===== =======
Income (loss) from continuing operations $0.18 $(0.47)
Discontinued operations - (0.03)
-------------------
Net income (loss) $0.18 $(0.50)
===== =======
In the first nine months of 2006, the company generated cash flow from
continuing operations of $2,002 million, invested $1,639 million of capital,
and paid $108 million in dividends.
At September 30, 2006, El Paso's debt, net of cash, was $14.4 billion, a
$1.7-billion reduction from December 31, 2005. Gross debt was at $15.2 billion
on September 30, 2006, a $3.1-billion reduction from year end. December 31,
2005 debt amounts include $225 million of Macae project debt included in
liabilities related to discontinued operations that was repaid in the second
quarter of 2006 upon the sale of the Macae power plant. During the first nine
months of 2006, El Paso closed $893 million of asset sales as a part of its
debt-reduction program. Since September 30, 2006, approximately $90 million of
asset sales have closed, and approximately $100 million are in various stages
of completion.
Business Unit Financial Update
Pipelines
The Pipelines segment's reported EBIT for the three months ended September
30, 2006 was $305 million, compared with $272 million for the same period in
2005. The increase is primarily due to the expiration of discounted rates to
certain El Paso Natural Gas (EPNG) customers; the implementation of new rates
at EPNG; increased revenues from sales of additional firm capacity and various
interruptible services and higher realized rates on several of El Paso's
pipelines; and the contribution of pipeline expansion projects, including the
Cheyenne Plains pipeline expansion, the Piceance Basin expansion on the
Wyoming Interstate Company system, and the Elba Island LNG terminal expansion.
Offsetting these positive factors were $9 million of hurricane repair costs
that will not be fully reimbursed by insurance.
Pipelines Results Three Months Ended
September 30,
($ in millions) 2006 2005
EBIT $305 $272
DD&A $114 $108
Total throughput (BBtu/d)1 22,375 20,900
1 Includes proportionate share of jointly owned pipelines
Exploration and Production
The Exploration and Production segment's EBIT for the three months ended
September 30, 2006 was $141 million, compared with $169 million for the same
period in 2005. As previously mentioned, third quarter 2006 results include a
$45-million, MTM loss on derivatives used to hedge basis risk on E&P
production volumes.
Third quarter 2006 consolidated production volumes averaged 744 million
cubic feet equivalent per day (MMcfe/d), excluding unconsolidated affiliate
volumes of 66 MMcfe/d. This compares with 736 MMcfe/d, excluding
unconsolidated affiliate volumes of 23 MMcfe/d, for the same period in 2005.
This represents production growth of 3 percent more than the second quarter
2006 and 7 percent more than the third quarter 2005 (including unconsolidated
affiliated volumes). El Paso expects continued production growth in the fourth
quarter of 2006.
Average daily equivalent production volumes in the third quarter of 2006
were negatively impacted by approximately 7 MMcfe/d of continued shut-in
production volumes as a result of last year's hurricanes. For the full year,
these shut-ins and greater-than-expected delays in bringing on Gulf of Mexico
production have reduced the company's average annual production by
approximately 25 MMcfe/d. In the third quarter, El Paso experienced delays in
achieving initial production on certain wells in the Gulf of Mexico and South
Louisiana and slower-than-planned ramp up from two new rigs in East Texas. As
a result, El Paso expects its 2006 average production will be between 790 to
800 MMcfe/d (including unconsolidated affiliate volumes).
El Paso's 2006 drilling program continues to deliver solid results. For
the first nine months of the year, it has achieved a 99-percent success rate
with only three dry holes among 374 gross wells drilled through September 30.
The realized price for natural gas (before transportation costs) during
the three months ended September 30, 2006 was $6.30 per thousand cubic feet
(Mcf), compared with $6.40 per Mcf for the same period in 2005. Oil,
condensate, and natural gas liquids (NGL) realized prices (before
transportation costs) were $60.81 per barrel in third quarter 2006, up 20
percent from the same period in 2005.
Total per-unit cash costs increased to an average of $1.95 per Mcfe in the
third quarter 2006, compared with $1.74 per Mcfe for the same 2005 period,
primarily due to an increase in lease operating costs in the Onshore region
related to the Medicine Bow acquisition and in the Gulf of Mexico region
related to hurricane repairs not recovered by insurance. El Paso expects
full-year 2006 per-unit cash costs to be $1.82 to $1.87 per Mcfe.
Exploration and Production Results Three Months Ended
($ in millions) September 30,
2006 2005
EBIT $141 $169
DD&A $163 $153
Average consolidated daily sales volumes
Natural gas sales volumes (MMcf/d) 617 601
Oil, condensate, and NGL sales volumes (MBbls/d) 21 22
Total equivalent average daily sales volumes
(MMcfe/d) 744 736
Four Star equity average daily sales volumes1
Natural gas sales volumes (MMcf/d) 48 17
Oil, condensate, and NGL sales volumes (MBbls/d) 3 1
Total equivalent average daily sales volumes
(MMcfe/d) 66 23
Weighted average realized prices, including
hedges2,3
Natural gas ($/Mcf) $6.30 $6.40
Oil, condensate, and NGL ($/Bbl) $60.81 $50.77
Transportation cost
Natural gas ($/Mcf) $0.23 $0.18
Oil, condensate, and NGL ($/Bbl) $0.71 $0.60
Per-unit costs ($/Mcfe)3
Unit of production depletion costs $2.27 $2.11
Cash costs4 $1.95 $1.74
-------------------
Total costs $4.22 $3.85
===== =====
1 Four Star is an equity investment acquired in the Medicine Bow
transaction. Amounts disclosed represent the company's proportionate
share in Four Star.
2 Prices are stated before transportation costs.
3 Price and costs per unit do not include the company's proportionate
share of Four Star volumes, revenue, or cost.
4 Includes lease operating costs, production-related taxes, G&A expenses,
and other taxes.
Other Operations
Marketing and Trading The Marketing and Trading segment reported an EBIT
loss of $108 million for the three months ended September 30, 2006, compared
with a loss of $398 million for the same period in 2005. Third quarter 2006
results were primarily driven by a non-cash, MTM loss on natural gas supply
agreements with MCV as a result of the sale of the company's interest in the
facility. The loss on the contracts with MCV of approximately $133 million
represents the cumulative MTM loss not previously recognized on these
contracts due to their affiliated nature. The loss was partially offset by the
previously mentioned $48-million, non-cash, MTM gain on derivatives intended
to manage the price risk of natural gas and oil production, net of third
quarter settlements. Third quarter 2005 results were significantly impacted by
a $382-million MTM loss on production-related natural gas and oil derivative
contracts, net of third quarter settlements, partially offset by a $45-million
MTM gain on the Cordova tolling agreement.
Power
The Power segment reported EBIT of $38 million for the three months ended
September 30, 2006, compared with a loss of $46 million for the same period in
2005. Third quarter 2006 results for the Power segment were primarily
attributable to earnings from the company's Brazilian investments, a
$13-million gain on the sale of the company's interest in the MCV power
facility, and a $12-million gain on the sale of a portion of the company's
interests in Intercontinental Exchange. Third quarter 2005 results were
negatively impacted by a $159-million loss associated with the company's
investment in the MCV power facility and were positively impacted by a $109-
million gain on the sale of the company's interest in a power plant in Korea.
Field Services
El Paso completed its exit from the midstream business in 2005 and no
longer reports a Field Services segment.
Corporate
Corporate reported an EBIT loss of $17 million during the third quarter of
2006, compared with an EBIT loss of $67 million in 2005. Third quarter 2006
results were impacted by higher losses on the early extinguishment of debt
primarily related to the refinancing of El Paso's credit facility compared to
the same period in 2005 offset by a decrease in litigation, environmental, and
other charges.
Other Operations Results Three Months Ended
September 30,
($ in millions)
2006 2005
Marketing and Trading
EBIT $(108) $(398)
DD&A $1 $1
Power
EBIT $38 $(46)
DD&A $- $1
Corporate
EBIT $(17) $(67)
DD&A $4 $6
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 third quarter 2006
results on November 6, 2006 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 (973) 582-2710 ten 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, 2006 by dialing (973) 341-3080 (access code 8018931). 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. 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. The company defines
EBIT as net income (loss) adjusted for (i) items that do not impact its income
(loss) from continuing operations, such as extraordinary items, discontinued
operations, and the impact of accounting changes; (ii) income taxes; (iii)
interest and debt expense; and (iv) distributions on preferred interests of
consolidated subsidiaries. The company excludes interest and debt expense and
distributions on preferred interests of consolidated subsidiaries so that
investors may evaluate the company's operating results without regard to its
financing methods or capital structure. El Paso's business operations consist
of both consolidated businesses as well as substantial investments in
unconsolidated affiliates. As a result, the company believes that EBIT, which
includes the results of both these consolidated and unconsolidated operations,
is useful to its investors because it allows them to evaluate more effectively
the performance of all of El Paso's businesses and investments. Per-unit total
cash costs equal total operating expenses less DD&A and other non-cash charges
divided by total consolidated production. It is a valuable measure of
operating efficiency.
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, earnings per share or other GAAP operating
measurements.
El Paso Corporation provides natural gas and related energy products in a
safe, efficient, dependable manner. The company owns North America's largest
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 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,
including, without limitation, changes in unaudited and/or unreviewed
financial information; El Paso's ability to implement and achieve the
company's objectives in the 2006 plan, including achieving debt-reduction,
earnings and cash flow targets; the effects of any changes in accounting rules
and guidance; El Paso's ability to meet production volume targets in El Paso's
Exploration and Production segment despite delays in resuming production shut-
in due to hurricanes Rita and Katrina; and other production delays;
uncertainties and potential consequences associated with the outcome of
governmental investigations, including, without limitation, those related to
the reserve revisions and natural gas hedge transactions; the outcome of
litigation, the company's ability to comply with the covenants in the
company's various financing documents; ability to obtain necessary
governmental approvals for proposed pipeline projects and ability to
successfully construct and operate such projects; the risks associated with
recontracting of transportation commitments by the company's pipelines;
regulatory uncertainties associated with pipeline rate cases; actions by the
credit rating agencies; ability to successfully exit the energy trading
business; ability to close announced asset sales on a timely basis; changes in
commodity prices for oil, natural gas, and power and relevant basis spreads;
inability to realize anticipated synergies and cost savings associated with
restructurings and divestitures on a timely basis; 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; 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.
EL PASO CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per common share amounts)
(UNAUDITED)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------- -----------------
2006 2005 2006 2005
------------------- -----------------
Operating revenues $1,061 $752 $3,806 $3,009
Operating expenses
Cost of products and services 73 111 219 259
Operation and maintenance 366 454 1,085 1,250
Depreciation, depletion and
amortization 282 270 832 823
Loss on long-lived assets 15 3 15 10
Taxes, other than income taxes 69 69 203 190
----------- -------- -------- --------
805 907 2,354 2,532
----------- -------- -------- --------
Operating income (loss) 256 (155) 1,452 477
Equity earnings and other income 103 63 282 332
----------- --------- ------- --------
Earnings (losses) before interest
expense, income taxes,
and other charges 359 (92) 1,734 809
Interest and debt expense 310 337 990 1,013
Preferred interests of consolidated
subsidiaries --- --- --- 9
----------- -------- -------- --------
Income (loss) before income taxes 49 (429) 744 (213)
Income taxes (benefit) (86) (136) 81 (100)
----------- -------- -------- --------
Income (loss) from continuing
operations 135 (293) 663 (113)
Discontinued operations, net of
income taxes --- (19) (22) (331)
----------- -------- -------- --------
Net income (loss) 135 (312) 641 (444)
Preferred stock dividends 9 9 28 17
----------- -------- -------- --------
Net income (loss) available to common
stockholders $126 $(321) $613 $(461)
=========== ======== ======== ========
Earnings (losses) per common share
Basic
Income from continuing operations $0.18 $(0.47) $0.94 $(0.20)
Discontinued operations, net of
income taxes $--- $(0.03) (0.03) (0.52)
----------- -------- -------- --------
Net income (loss) $0.18 $(0.50) $0.91 $(0.72)
=========== ======== ======== ========
Diluted
Income from continuing operations $0.18 $(0.47) $0.90 $(0.20)
Discontinued operations, net of
income taxes $--- $(0.03) (0.03) (0.52)
----------- -------- -------- --------
Net income (loss) $0.18 $(0.50) $0.87 $(0.72)
=========== ======== ======== ========
Weighted average common shares
outstanding
Basic 693 648 673 643
============ ======== ======== ========
Diluted 754 648 734 643
============ ======== ======== ========
Dividends declared per common share $0.04 $0.04 $0.12 $0.12
============ ======== ======== ========
EL PASO CORPORATION
SEGMENT INFORMATION
(UNAUDITED)
2006
--------------------------------
(In millions) First Second Third
--------------------------------
Operating revenues
Pipelines $837 $705 $701
Exploration and Production 466 462 456
Marketing and Trading 205 18 (105)
Power 1 2 3
Field Services (A) --- --- ---
Corporate and eliminations 22 27 6
--------------------------------
Consolidated total 1,531 1,214 1,061
--------------------------------
Depreciation, depletion and amortization
Pipelines 115 115 114
Exploration and Production 146 156 163
Marketing and Trading 1 1 1
Power --- 1 ---
Field Services (A) --- --- ---
Corporate 10 5 4
--------------------------------
Consolidated total 272 278 282
--------------------------------
Operating income (loss)
Pipelines 438 284 259
Exploration and Production 191 161 138
Marketing and Trading 200 8 (113)
Power (15) (17) (14)
Field Services (A) --- --- ---
Corporate (14) (40) (14)
--------------------------------
Consolidated total 800 396 256
--------------------------------
Earnings (loss) before interest
expense and income taxes (EBIT)
Pipelines 478 335 305
Exploration and Production 199 163 141
Marketing and Trading 208 13 (108)
Power 3 10 38
Field Services (A) --- --- ---
Corporate --- (34) (17)
--------------------------------
Consolidated total $888 $487 $359
--------------------------------
(A) By the end of 2005, we sold or transferred to other segments
substantially all of our Field Services assets.
EL PASO CORPORATION
SEGMENT INFORMATION
(UNAUDITED)
2005
--------------------------------
(In millions) First Second Third Fourth
--------------------------------
Operating revenues
Pipelines $768 $653 $646 $716
Exploration and Production 439 452 449 447
Marketing and Trading (175) (21) (389) (211)
Power 23 54 2 3
Field Services (A) 48 28 45 2
Corporate and eliminations (15) 3 (1) 4
--------------------------------
Consolidated total 1,088 1,169 752 961
--------------------------------
Depreciation, depletion and amortization
Pipelines 111 108 108 110
Exploration and Production 146 157 153 156
Marketing and Trading 1 1 1 1
Power 1 --- 1 ---
Field Services (A) 1 1 1 ---
Corporate 9 17 6 10
--------------------------------
Consolidated total 269 284 270 277
--------------------------------
Operating income (loss)
Pipelines 362 262 207 188
Exploration and Production 180 175 167 149
Marketing and Trading (186) (32) (404) (233)
Power (25) 26 (20) (44)
Field Services (A) 2 (5) (26) 13
Corporate (91) (36) (79) (371)
--------------------------------
Consolidated total 242 390 (155) (298)
--------------------------------
Earnings (loss) before interest
expense and income taxes (EBIT)
Pipelines 412 309 272 233
Exploration and Production 183 176 169 168
Marketing and Trading (185) (30) (398) (224)
Power (39) (2) (46) (2)
Field Services (A) 182 (3) (22) 128
Corporate (90) (12) (67) (352)
--------------------------------
Consolidated total $463 $438 $(92) $(49)
--------------------------------
(A) By the end of 2005, we sold or transferred to other segments
substantially all of our Field Services assets.
EL PASO CORPORATION
SEGMENT INFORMATION
(UNAUDITED)
Year-to-Date
--------------------------
(In millions) 2006 2005
--------------------------
Operating revenues
Pipelines $2,243 $2,067
Exploration and Production 1,384 1,340
Marketing and Trading 118 (585)
Power 6 79
Field Services (A) --- 121
Corporate and eliminations 55 (13)
--------------------------
Consolidated total 3,806 3,009
--------------------------
Depreciation, depletion and amortization
Pipelines 344 327
Exploration and Production 465 456
Marketing and Trading 3 3
Power 1 2
Field Services (A) --- 3
Corporate 19 32
--------------------------
Consolidated total 832 823
--------------------------
Operating income (loss)
Pipelines 981 831
Exploration and Production 490 522
Marketing and Trading 95 (622)
Power (46) (19)
Field Services (A) --- (29)
Corporate (68) (206)
--------------------------
Consolidated total 1,452 477
--------------------------
Earnings (loss) before interest
expense and income taxes (EBIT)
Pipelines 1,118 993
Exploration and Production 503 528
Marketing and Trading 113 (613)
Power 51 (87)
Field Services (A) --- 157
Corporate (51) (169)
--------------------------
Consolidated total $1,734 $809
--------------------------
(A) By the end of 2005, we sold or transferred to other segments
substantially all of our Field Services assets.
SOURCE El Paso Corporation
11/06/2006
CONTACT: Investor and Public Relations - Bruce L. Connery, Vice
President, +1-713-420-5855, or Media Relations - Bill Baerg, Manager,
+1-713-420-2906, both of El Paso Corporation
8886 11/06/2006 07:00 EST http://www.prnewswire.com
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El Paso Corp.
