Good job....I've got 10% of my portfolio in CGP.   Keep up the good work.




"Cooper, Sean" <CooperS@EPEnergy.com> on 07/11/2000 08:03:41 PM
To: 
cc:  
Subject: El Paso Energy Corporation Reports Record Second Quarter Earnings 
Per Share


http://biz.yahoo.com/prnews/000711/tx_el_paso_2.html

Tuesday July 11, 5:42 pm Eastern Time
Company Press Release
SOURCE: El Paso Energy Corporation
El Paso Energy Corporation Reports Record Second Quarter Earnings Per Share
HOUSTON, July 11 /PRNewswire/ -- El Paso Energy Corporation (NYSE: EPG
<http://finance.yahoo.com/q?s=epg&d=t> - news </n/e/epg.html>) today
announced second quarter 2000 adjusted diluted earnings per share of $0.69,
an increase of 73 percent over second quarter 1999 adjusted diluted earnings
per share of $0.40. The second quarter 2000 results exclude $0.13 per share
of one-time merger-related items. Diluted average common shares outstanding
for the second quarter 2000 totaled 242 million. Consolidated adjusted
earnings before interest expense and income taxes (EBIT) for the second
quarter increased by 55 percent to $408 million, compared with $263 million
in the year-ago period.
EBIT from the company's non-regulated businesses more than tripled in the
quarter to $246 million, and represented 60 percent of consolidated EBIT.
``Outstanding growth in Merchant Energy and continued strong performance in
our other non-regulated segments produced these record results,'' said
William A. Wise, president and chief executive officer of El Paso Energy
Corporation. ``Reflecting our long-standing strategy of building a portfolio
of flexible gas and power assets, Merchant Energy's earnings continued to
accelerate in the second quarter.''
For the first six months of 2000, adjusted diluted earnings per share
increased 84 percent to $1.40 per share, compared with $0.76 for the first
six months of 1999. Consolidated EBIT for the six months, excluding
non-recurring items, increased 55 percent to $798 million compared with $515
million in the year-ago period.
Second Quarter Business Segment Results
The Merchant Energy segment reported record EBIT of $152 million in the
second quarter 2000, compared with $6 million in the same period last year
and $50 million in the first quarter 2000. The physical and financial gas
and power portfolio developed over the past several years is creating
significant value in the current volatile energy environment. Enhanced
trading opportunities around our asset positions, continued strong wholesale
customer business, and management fees from Project Electron (the company's
off-balance sheet vehicle for power generation investments) all contributed
to the record second-quarter performance.
The Production segment reported a 30-percent increase in second quarter EBIT
to $52 million compared with $40 million a year ago, reflecting higher
realized gas and oil prices and lower operating costs following the
reorganization of its business in 1999. Weighted average realized prices for
the quarter were $2.26 per million cubic feet (MMcf) of natural gas and
$19.21 per barrel of oil, up 12 percent and 29 percent, respectively, from
the year-ago levels. Average natural gas production totaled 512 MMcf per day
and oil production averaged 14,275 barrels per day.
The Field Services segment reported second quarter EBIT of $30 million,
nearly double an adjusted $16 million in 1999. The increase was due
primarily to higher realized gathering and processing margins, together with
the acquisition of an interest in the Indian Basin processing plant in March
2000. Second quarter gathering and treating volumes averaged 4.1 trillion
Btu per day (TBtu/d), while processing volumes averaged 1.1 TBtu/d.
Coming out of one of the warmest winters on record, the Natural Gas
Transmission segment reported second quarter EBIT of $190 million compared
with an adjusted $187 million a year ago, reflecting the realization of cost
savings from the Sonat merger. Overall system throughput averaged 11.3
TBtu/d. During the quarter, Southern Natural Gas received Federal Energy
Regulatory Commission approval of its comprehensive rate case settlement
filed in March.
The International segment reported second quarter EBIT of $12 million
compared with $16 million in 1999. Higher equity income from projects in
Brazil and Argentina largely offset lower equity earnings from the company's
investment in the Philippines.
Telecom Update
``We have made substantial progress in the development of our
telecommunications business, El Paso Global Networks,'' said William A.
Wise. ``Reflecting our market-centric approach to developing new businesses,
we have named Greg G. Jenkins, the current president of El Paso Merchant
Energy, to head our telecommunications business. Our expertise in building
businesses in rapidly commoditizing markets, as demonstrated by our Merchant
Energy success, provides us with a key competitive entry point in the
telecommunications marketplace.''
Quarterly Dividend
The Board of Directors declared a quarterly dividend of $0.206 per share on
the company's outstanding common stock. The dividend will be payable October
2, 2000 to shareholders of record as of the close of business on September
1, 2000. There were 237,786,853 outstanding shares of common stock entitled
to receive dividends as of June 30, 2000.
With over $19 billion in assets, El Paso Energy Corporation provides
comprehensive energy solutions through its strategic business units:
Tennessee Gas Pipeline Company, El Paso Natural Gas Company, Southern
Natural Gas Company, El Paso Merchant Energy Company, El Paso Energy
International Company, El Paso Field Services Company, and El Paso
Production Company. The company owns North America's largest natural gas
pipeline system, both in terms of throughput and miles of pipeline, and has
operations in natural gas transmission, merchant energy services, power
generation, international project development, gas gathering and processing,
and gas and oil production. On May 5, the stockholders of both El Paso
Energy and The Coastal Corporation overwhelmingly voted in favor of merging
the two organizations. The combined company will have assets of $35 billion
and be one of the world's leading integrated energy companies. The merger is
expected to close in the fourth quarter of this year, concurrent with the
completion of regulatory reviews. Visit El Paso Energy's web site at
www.epenergy.com <http://www.epenergy.com>.
Cautionary Statement Regarding Forward-Looking Statements
This release includes forward-looking statements and projections, made in
reliance on the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. The company has made every reasonable effort to ensure
that the information and assumptions on which these statements and
projections are based are current, reasonable, and complete. However, a
variety of factors could cause actual results to differ materially from the
projections, anticipated results or other expectations expressed in this
release. While the company makes these statements and projections in good
faith, neither the company nor its management can guarantee that the
anticipated future results will be achieved. Reference should be made to the
company's (and its affiliates') Securities and Exchange Commission filings
for additional important factors that may affect actual results.
                          EL PASO ENERGY CORPORATION

                       CONSOLIDATED STATEMENT OF INCOME
                   (In Millions, Except per Share Amounts)
                                 (UNAUDITED)


                                    Second Quarter Ended   Six Months Ended
                                          June 30,             June 30,
                                       2000      1999      2000      1999

    Operating revenues                $4,227    $2,597    $7,333    $4,875
    Operating expenses
     Cost of gas and other products    3,451     1,949     5,829     3,590
     Operation and maintenance           226       223       436       469
     Merger related costs
      and asset impairment charges        46       131        46       135
     Ceiling test charges                ---       ---       ---       352
     Depreciation, depletion,
      and amortization                   148       141       293       289
     Taxes, other than income taxes       36        36        77        76
                                       3,907     2,480     6,681     4,911

    Operating income (loss)              320       117       652       (36)

    Equity earnings and other income      42        64       100       113

    Earnings before interest expense,
     income taxes, and other charges     362       181       752        77

    Interest and debt expense            127       110       250       212
    Minority interest                     27         4        49         8

    Income (loss) before income
     taxes and other charges             208        67       453      (143)

    Income tax expense (benefit)          68        23       142       (52)

    Preferred stock dividends
     of subsidiary                         6         6        12        12

    Income (loss) before extraordinary
     items and cumulative effect
     of accounting change                134        38       299      (103)

    Extraordinary Items, net
     of income taxes                     ---       ---        89       ---

    Cumulative effect of accounting
     change, net of income taxes         ---       ---       ---       (13)

    Net income (loss)                   $134       $38      $388     $(116)

    Diluted earnings (loss)
     per common share:

      Adjusted diluted earnings
       per common share (a)            $0.69     $0.40     $1.40     $0.76
      Extraordinary items                ---       ---      0.37       ---
      Cumulative effect
       of accounting change              ---       ---       ---     (0.06)
      Merger related costs,
       asset impairment, and other
        non-recurring charges          (0.13)    (0.36)    (0.13)    (0.36)
      Ceiling test charges               ---       ---       ---     (0.94)
      Gain on sale of assets             ---      0.05       ---      0.05
      Resolution of regulatory issues    ---      0.08       ---      0.08
      Proforma diluted earnings (loss)
       per common share                $0.56     $0.17     $1.64
$(0.47)(b)

      Reported diluted earnings (loss)
       per common share                $0.56     $0.17     $1.64
$(0.51)(b)

    Basic average common shares
     outstanding (000's)             229,539   226,877   229,064   226,471

    Diluted average common shares
      outstanding (000's)            241,710   237,955   240,117   237,161

    (a) Adjusted diluted earnings per common share represents diluted
earnings
        per share before the impact of certain non-recurring charges.
Second
        quarter 2000 results exclude merger related charges of $(46) million
        pretax, or $(31) million aftertax.  Second quarter 1999 results
        exclude merger related charges of  $(131) million pretax, or
        $(86) million aftertax, a gain on sale of assets of $19 million
        pretax, or $12 million aftertax, and the resolution of regulatory
        issues of $30 million pretax, or $20 million aftertax.  Year-to-date
        2000 results exclude the extraordinary gain on the sale of the East
        Tennessee and Sea Robin systems of $89 million aftertax and merger
        related charges of $(46) million pretax, or $(31) million aftertax.
        Year-to-date 1999 results exclude the cumulative effect of an
        accounting change of $(13) million aftertax, merger related charges
of
        $(135) million pretax, or $(86) million aftertax, ceiling test
charges
        of $(352) million pretax, or $(222) million aftertax, a gain on sale
        of assets of $19 million pretax, or $12 million aftertax, and the
        resolution of regulatory issues of $30 million pretax, or $19
million
        aftertax.
    (b) Proforma diluted loss per common share reflects reported diluted
        earnings per share but assumes dilution.  Reported diluted loss per
        common share does not assume dilution because dilution would reduce
        the amount of loss per share.
SOURCE: El Paso Energy Corporation



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