El Paso Corp. reported a $175 million net loss (25 cents/share) for the fourth quarter of 2006 but $438 million (65 cents/share) in net income for the year. That compared to a 4Q2005 net loss of $172 million (26 cents/share) and a 2005 net loss of $633 million (98 cents/share). "2006 was a year of major accomplishments for El Paso," said CEO Doug Foshee. "We reported a swing in profitability of more than $1 billion; our pipeline business reported record earnings and laid the foundation for future expansion-driven growth; our E&P business delivered organic production growth and replaced production through the drill bit; we reduced debt by $2.8 billion; and we eliminated numerous legacy issues. Finally, in December we announced, and last week we closed, the sale of ANR, which is a transformational event for our company as we regain our financial strength and flexibility while maintaining our earnings outlook. We look forward to additional progress in 2007." Continuing operations in the fourth quarter lost $15 million, or 3 cents/share, because of a pre-tax charge of $188 million related to the divestiture of capacity on the Alliance Pipeline. Results were favorably impacted by a pre-tax, mark-to-market gain of $13 million on derivatives intended to manage the price risk of the company's natural gas and oil production. Discontinued operations, including ANR Pipeline, for the fourth quarter lost $151 million. El Paso expects to recognize a gain on the ANR sale of $0.7 billion in the first quarter 2007. The company's exploration and production segment reported quarterly earnings of $137 million, compared with $168 million for the same period in 2005. Lower earnings were primarily the result of lower realized prices. Fourth quarter 2006 production volumes averaged 762 MMcfe/d, up 11% from 2005 levels.
Freeport LNG Development LP, developer of the first liquefied natural gas (LNG) terminal to be built in the U.S. in more than 20 years, has chosen the Internet-based Enviance System for the management, automation and reporting of environmental, health and safety (EHS) compliance. Freeport LNG is developing one of the most technically advanced LNG regasification terminals in the world that will process over 1.5 Bcf/d when completed (see Daily GPI, Dec. 21, 2005). The Enviance System allows facilities in the energy, utility, chemical and pharmaceutical industries to centrally manage in real-time all aspects of regulatory compliance. Freeport LNG will utilize the system for managing construction permits as the facility, already in the building phase, prepares to go live in 2008. Freeport LNG will also use the system to manage contractual obligations during construction and operation. After construction, Freeport will leverage Enviance for the day-to-day management, automation and reporting of air, water and safety compliance activities.
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