El Paso Corp. plans to restate its 4Q2003 and year-end 2003 consolidated statement of income to reclassify a deferred tax benefit related to its discontinued Canadian exploration and production operations. The restatement will not impact 2003 net income, earnings before income and taxes or cash flow, and will have no impact on financial statements for 2002 and 2004. It does increase the loss per share from continuing operations to $1.01/share from 87 cents/share. The Canadian E&P operations were classified as discontinued operations in 2004, and under generally accepted accounting principles, the financial statements for 2003 and 2002 were revised to reclassify revenue and expenses for these operations from continuing to discontinued operations. The revision, said El Paso, should have included an additional $82 million of deferred tax benefits associated with the sale that was reported in continuing operations in El Paso’s recently filed 2004 annual report on Form 10-K.
4Q2003
Articles from 4Q2003
Industry Briefs
El Paso Corp. plans to restate its 4Q2003 and year-end 2003 consolidated statement of income to reclassify a deferred tax benefit related to its discontinued Canadian exploration and production operations. The restatement will not impact 2003 net income, earnings before income and taxes or cash flow, and will have no impact on financial statements for 2002 and 2004. It does increase the loss per share from continuing operations to $1.01/share from 87 cents/share. The Canadian E&P operations were classified as discontinued operations in 2004, and under generally accepted accounting principles, the financial statements for 2003 and 2002 were revised to reclassify revenue and expenses for these operations from continuing to discontinued operations. The revision, said El Paso, should have included an additional $82 million of deferred tax benefits associated with the sale that was reported in continuing operations in El Paso’s recently filed 2004 annual report on Form 10-K.
Industry Briefs
Range Resources reported that fourth quarter 2004 production volumes rose to 214.8 MMfe/d, a 30% increase comapred to 4Q2003 levels. Production for the year averaged 196 MMcfe/d, a 23% increase over 2003. About 71% of the company’s production in the quarter was natural gas. The company’s production is projected to continue to increase sharply in 2005. Range currently expects first quarter 2005 production to reach 224-226 MMcfe per day, a 27% increase over productiong during the first quarter of 2004 and a 5% increase over the most recent quarter. Range’s fourth quarter 2004 oil and gas price realizations (including the impact of hedging) averaged $4.85/Mcfe, a 20% increase over the prior-year period. First quarter 2005 price realizations are expected to average $5-$5.10/Mcfe, which is 25% higher than the prior-year period.
BP Reports 4% Increase in 4Q Production
British Petroleum said Wednesday that it expects its fourth quarter worldwide production to be up about 4% from 4Q2003 to 4.09 million boe/d mainly because of increases in Russia. However, higher taxes in Russia and costs associated with damage from Hurricane Ivan in the Gulf off Mexico and a blowout at an Egyptian offshore platform will take a bite out of its earnings.
TXU Changes Tune, Posts $23M 4Q2003 Net Income Gain After 4Q2002 Loss of $4.88B
Ushering in some stability back into its business, TXU recorded 2003 earnings from continuing operations — before cumulative effect of changes in accounting principles, net of preference stock dividends — of $715 million, or $2.03 per diluted share of common stock. Comparable earnings before extraordinary charges in 2002 were $160 million, or $0.58 per diluted share of common stock.
