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.
4Q2005
Articles from 4Q2005
Bill Barrett Grew Production by Nearly One-Third in 2006
Denver-based Bill Barrett Corp. grew production 32% to 52.1 Bcfe in 2006, the company said. And 4Q2006 production was 14.2 Bcfe, 15% more than 4Q2005 and 13% more than 3Q2006.
Raymond James: Lack of Rigs, Prospects to Constrain U.S. Gas Market for Years
Adjusting for the hurricane-related production deferrals last fall, 4Q2005 U.S. natural gas production would have been up for the first time in years, Raymond James’ analysts said in the latest “Stat of the Week.” However, a lack of rigs, higher decline rates and a slowing in efficiencies likely will constrain the supply picture for years to come.
Crosstex Earnings Surge 71% Despite Hurricane Impact
The Dallas-based Crosstex Energy LP on Friday reported 4Q2005 earnings surged 71%, boosted by a $2.3 million gain from mark-to-market valuation of derivatives bought to hedge against price changes from its South Louisiana processing business.
Marathon’s Earnings Triple, Revenue Up 21%
Reflecting full ownership of its downstream and growth in upstream income, Marathon Oil Corp.’s 4Q2005 profit soared, with net income reaching $1.27 billion ($3.43/share), compared with $429 million, ($1.23) a year ago. Revenue was up 21% to $17.3 billion from $14.3 billion. U.S. natural gas sales grew in the quarter, but they were down overall for the year.
Pogo Reports Highest Profits in History; Reserves Up 15%
Houston-based independent Pogo Producing Co. on Tuesday reported the strongest earnings in its history, with 4Q2005 profits nearly tripled to $114.5 million ($1.98/share), compared with $38.3 million (60 cents) in 4Q2004. For full-year 2005, Pogo’s net income was $750.7 million ($12.43/share), compared with $261.75 million ($4.10) in 2004. Pogo, which has been on the short list of possible acquisition targets, also reported year-end reserves grew by 15%, its fourteenth consecutive year of growth.
