After a big loss last year, El Paso Corporation swung to a profit in the first quarter of this year.
For the first quarter, El Paso reported net income of $106 million, compared with a net loss of $206 million for the same period in 2004.
According to a press release, the company’s regulated natural gas pipeline business generated $412 million of earnings before interest and taxes (EBIT). It also announced several new expansion opportunities that position this business for future growth.
“We continue to make progress on all fronts,” said El Paso’s President and CEO,Doug Foshee. “Our pipelines delivered solid financial results and growth prospects look good. Our production business is making the progress necessary to complete its turnaround this year, and it is ahead of pace to replace production in 2005. Finally, in March we delivered an update to our long-range plan that accelerates our debt-reduction plans as well as our plan to be a company focused on two primary businesses: natural gas pipelines and production.”
The company’s production business generated $183 million of EBIT and completed producing property acquisitions totaling $271 million. It also confirmed a deep shelf discovery in the Gulf of Mexico that is expected to begin production later in the year.
El Paso’s debt, net of cash, was $16.1 billion at March 31, 2005, down $3.4 billion from the previous year and $1.0 billion from the end of last year.
During the first quarter, the company completed $721 million of asset sales and got rid of $575 million of corresponding non-recourse debt.
El Paso completed a $750-million, 4.99-percent convertible preferred stock offering, the proceeds of which were targeted for the early payment of the company’s remaining cash obligation for its western energy settlement and the redemption of an 8.25-percent preferred stock.
Chris is a staff writer for Murdok. Visit Murdok for the latest ebusiness news.
