El Paso Corporation Reports Sharp Increase in Second Quarter Earnings - Continued Progress on 2006 Goals 7:31 AM EDT August 7, 2006 El Paso Corporation (NYSE: EP) is providing today second quarter 2006 financial and operational results for the company.
Highlights: * $0.21 earnings per fully diluted share from continuing operations versus $0.09 in 2005 * $1,421-million cash flow from continuing operations for first six months * $3-billion reduction in gross debt through July 31 * $500 million equity offering completed during second quarter * Settlement of major shareholder and derivative litigation * Pipeline and E&P on track to deliver on 2006 goals
"El Paso's second quarter results are another step toward the delivery of our 2006 goals," said Doug Foshee, El Paso's president and chief executive officer. "Our pipeline and E&P businesses both delivered solid results, and we are on track to reduce our year-end 2006 debt, net of cash, to $14 billion. More importantly, our pipeline and E&P businesses have solid growth trajectories that point to further improvement in 2007."
Second Quarter Financial Results
For the three months ended June 30, 2006, El Paso reported net income available to common stockholders of $141 million, or $0.21 per diluted share, compared with a net loss of $246 million, or $0.38 per diluted share, for the same period in 2005. Results for 2006 include $27 million ($0.02 per diluted share) of non-cash, mark-to-market, pre-tax gains on derivatives intended to hedge the price risk of natural gas and oil production. During the same period in 2005, price risk management derivatives generated a $12-million mark-to-market pre-tax loss. Results in 2005 were also impacted by impairments, net of gains on the sale of assets and investments, of $88 million, driven primarily by the Power segment and $29 million of restructuring costs in 2005.
For the six months ended June 30, 2006, El Paso reported net income available to common stockholders of $487 million, or $0.70 per diluted share, compared with a net loss of $140 million, or $0.19 per diluted share, for the first six months of 2005. Results for 2006 include $189 million ($0.17 per diluted share) of non-cash, mark-to-market, pre-tax gains on derivatives intended to hedge the price risk of natural gas and oil production. During the same period in 2005, price risk management derivatives generated a $118- million mark-to-market pre-tax loss. Additionally, results for the first six months of 2005 were impacted by net gains on the sale of assets and investments of $17 million, driven primarily by gains associated with the sale of the company's remaining interest in Enterprise Products Partners L.P., offset by impairments on certain power assets. Also, 2005 results were impacted by a $59-million charge for the early payoff of the western energy settlement and $30 million of restructuring costs.
I thing somebody joking or misplaced or before dilution,,,, I believe in you, truly since they announced earlier last quater and soon find out it was wrong. anyway I was a little disappointed since I thought it is near +/-30 cents. I want figure out what before dilution.