El Paso Corp. said Tuesday it has hedged almost 75% of its projected natural gas production at a Nymex price of $3.85/Mcf ($3.63/MMBtu) for September through December. Next year, about 60% of its production will be hedged at $4.19/Mcf ($3.95/MMBtu), and in 2003, about 35% is hedged at $4.19/Mcf ($3.95/MMBtu).

The Houston-based company expects that its realized natural gas price will be about 30 cents/Mcf less than the Nymex price because of transportation costs and regional price differences.

In an earnings update, the company estimated that a 10-cent change in the annual spot price for natural gas in 2002 would result in only a $0.02 per share change in earnings, adding it “remains comfortable with existing earnings guidance” putting it at $3.30/share this year. A 15% earnings increase is expected in 2002. The earnings are in line with First Call/Thomson Financial estimates of $3.33 a share this year and $3.84 in 2002.

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