Bolstered by its completed merger with Sonat Inc., El PasoEnergy said yesterday that diluted earnings per share (EPS) rose20% to $1.80 last year, up from $1.50 in 1998. During the fourthquarter, when the Sonat deal was finalized, the company postedearnings of $295 million or 48 cents/share, versus $229 million, or33 cents, during the year-ago period.

“The company continued its several-year track record ofdouble-digit earnings growth while completing the strategicallyimportant $6 billion merger with Sonat,” said William Wise, CEO ofEl Paso. “Successfully and seamlessly combining Sonat’s businessesinto El Paso’s confirms El Paso’s core competency of integratingassets while maintaining solid earnings performance.”

The Sonat merger, which was finalized in October, created thelargest pipeline company in the country in terms of pipeline mileageowned. El Paso, however, was not finished. Just three months aftercompleting the Sonat merger, El Paso announced its intentions to mergewith Coastal Corp. in a $16 billion deal that would add even morepipelines to the transmission giant. The El Paso-Coastal deal wasannounced last week (see Daily GPI, Jan. 19).

Adding to El Paso’s expansion theme, the company also recentlyannounced the completion of its interconnection project with CNG.Operation of the new interconnect, which is situated nearSabinsville, PA, in Tioga County, started Jan. 20. Includingmeasuring facilities, the line is capable of handling 300,000Dth/d.

“Its strategic position will provide shippers increased accessto the Leidy Hub as well as large markets in Transco Z6, Tetco M-3and on CNG,” said John Somerhalder, president of Tennessee GasPipeline.

Total adjusted EBIT from the company’s non-regulated businesses— El Paso Merchant Energy Co., El Paso Energy International Co.,El Paso Field Services Co., and El Paso Production Co. — totaled$300 million for 1999, representing a 38% growth from 1998.

The company’s natural gas transmission segment, comprised of theTennessee Gas Pipeline, El Paso Natural Gas, and Southern NaturalGas pipeline systems, reported adjusted EBIT of $794 million in1999, compared to $811 million in 1998. El Paso said the primarycause was lower throughput on the Tennessee system due to mildweather conditions in its market areas. Total throughput for thenatural gas segment averaged 12.7 TBtu/d, up 2% from the year-agoperiod.

In the successful 4Q99, physical natural gas marketed volumesaveraged 6,323 BBtu/d, while marketed power volumes rose over 75%to 18.1 MMWh.

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