Positive contributions from gathering, processing andinternational activities helped boost El Paso Energy’s secondquarter earnings to $0.45/share, an increase of 22% from $0.37 in2Q97. Earnings before interest and taxes increased to $149 millionfrom $139 million in the year ago quarter.

Tennessee Gas Pipeline reported second quarter EBIT of $73million compared to $74 million a year ago because of lower systemthroughput, which averaged 4,842 BBtu/d. El Paso Natural Gasreported second quarter EBIT of $56 million compared to $70 millionin 1997 because of contract stepdowns, partially offset byadditional revenues from remarketed pipeline capacity. El Pasothroughput averaged 3,873 BBtu/d, up 5% from 2Q97.

Higher San Juan Basin gathering and treating rates and lastyear’s acquisition of the Tejas Power Company gathering andprocessing assets pushed El Paso Field Services earnings to $18million compared to $13 million in 1997. Average gathering andtreating volumes rose 81% to 4,147 BBtu/d, and average processingvolumes rose 17% to 1,042 BBtu/d.

El Paso Energy Marketing reported break-even results for thesecond quarter of 1998, a significant improvement over the $15million EBIT loss reported in 1997. Total average marketed gasvolumes in the quarter were 8,761 BBtu/d, while total power salesexceeded 11.8 million megawatt hours.

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