El Paso Energy’s two pipelines combined lost $2 million, but thecompany still turned in improved earnings. Third quarter earningswere 43 cents/diluted share, an increase of 16% from 37 cents in Q31997.
“We are pleased with the continued solid performance of all ofour operating segments in a very difficult business environment,”said CEO William A. Wise. “In particular, combining the strengthsof Tennessee Gas Pipeline Co. and El Paso Natural Gas Co. providesthe stable platform we need to produce reliable results for ourshareholders as we continue to withstand the impacts of weaknatural gas and liquids prices and the current economic uncertaintyin international markets.”
Tennessee reported third quarter EBIT of $81 million compared to$74 million a year ago. The $7 million increase resulted from loweroperating expenses partially offset by a decrease in throughput dueto generally mild weather in market areas. Tennessee throughputaveraged 4,317 billion Btu/d.
El Paso Natural Gas reported third quarter EBIT of $58 millioncompared to $67 million in 1997. The decrease resulted from lowerrevenues due to contract step-downs, partially offset by additionalrevenues from re-marketed pipeline capacity. El Paso systemthroughput averaged 4,101 billion Btu/d for the third quarter of1998.
El Paso Field Services Company reported third quarter EBIT of$12 million compared to $14 million in 1997. The acquisitions ofTejas Power Co. and DeepTech International Inc. increased gatheringand processing volumes during the quarter. Increased volumespartially offset the impact of continued weak gas liquids prices.Gathering volumes for the quarter averaged 4,006 billion Btu/d,while processing volumes averaged 941 billion Btu/d.
El Paso Energy Marketing Co. reported break-even results for thethird quarter compared to $2 million in the third quarter of 1997.Total average marketed gas volumes in the quarter were 10,931billion Btu/d, while power marketed volumes were 15.7 millionmegawatt hours.
Joe Fisher, Houston
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