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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report: April 23, 1999
(Date of earliest event reported: April 23, 1999)
EL PASO ENERGY CORPORATION
(Exact name of registrant as specified in the charter)
DELAWARE 1-14365 76-0568816
(State or other jurisdiction (Commission File Number) ( I.R.S. Employer
of incorporation) Identification No.)
EL PASO ENERGY BUILDING
1001 LOUISIANA STREET
HOUSTON, TEXAS 77002
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (713) 420-2131
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ITEM 5. OTHER EVENTS
On April 23, 1999, El Paso Energy Corporation released first quarter
earnings. Diluted earnings per share rose 21 percent to $0.58 compared to $0.48
in the year ago period, excluding the cumulative effect of an accounting change
implemented in the first quarter of 1999. The change relates to the treatment of
certain project development costs that newly adopted accounting standards now
require to be expensed rather than capitalized. The accounting change resulted
in a one-time $13 million aftertax charge, or $0.10 per diluted share. Diluted
average common shares outstanding for the quarter totaled 128 million.
A copy of the first quarter press release is attached hereto as Exhibit
99.1 and is incorporated herein by reference.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
c) Exhibits:
EXHIBIT
NUMBER DESCRIPTION
99.1 - Press release dated April 23, 1999
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.
EL PASO ENERGY CORPORATION
By: /s/ Jeffrey I. Beason
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Jeffrey I. Beason
Vice President and Controller
(Chief Accounting Officer)
Date: April 23, 1999
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EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit
Number Description
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<S> <C> <C>
99.1 - Press release dated April 23, 1999
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EXHIBIT 99.1
[EL PASO ENERGY LOGO] NEWS
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El Paso Energy Corporation Contact: Norma F. Dunn, CPA
P. O. Box 2511 Vice President
Houston, Texas 77252-2511 Investor & Public Relations
Office: (713) 420-3750
Fax: (713) 420-4993
FOR IMMEDIATE RELEASE
EL PASO ENERGY CORPORATION REPORTS
RECORD FIRST QUARTER EARNINGS
HOUSTON, TEXAS, APRIL 23, 1999--El Paso Energy Corporation (NYSE:EPG) announced
today that 1999 first quarter diluted earnings per share rose 21 percent to
$0.58 compared to $0.48 in the year ago period, excluding the cumulative effect
of an accounting change implemented in the first quarter of 1999. The change
relates to the treatment of certain project development costs that newly adopted
accounting standards now require to be expensed rather than capitalized. The
accounting change resulted in a one-time $13 million aftertax charge, or $0.10
per diluted share. Diluted average common shares outstanding for the quarter
totaled 128 million.
"El Paso Energy once again reported record earnings per share during
the first quarter. This represents the ninth consecutive quarter of record
earnings on a year over year basis since the company's Tenneco Energy
acquisition in December 1996," said William A. Wise, chairman, president and
chief executive officer of El Paso Energy. "We continue to reap the benefits of
our strategically located natural gas transmission assets, Tennessee Gas
Pipeline Company and El Paso Natural Gas Company. These pipelines produced
exceptional results in the first quarter, notwithstanding the generally mild
temperatures this past winter.
"Despite significantly lower natural gas and natural gas liquids prices
versus the year ago quarter, El Paso Field Services reported higher gathering
and treating volumes as a result of last year's acquisition of the interests in
Leviathan Gas Pipeline Partners and the improved uplift in the San Juan Basin
following completion of our global
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EL PASO ENERGY REPORTS RECORD
FIRST QUARTER EARNINGS
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compression project," Wise continued. "With its increased size and scale both
onshore and offshore, El Paso Field Services is positioned to be a growing
income contributor as gas and liquids prices rebound.
"El Paso Energy Marketing's results for the quarter reflect the unit's
continued success in structuring gas and power transactions around our
coast-to-coast, border-to-border assets," said Mr. Wise. "During the quarter,
the company added 900 megawatts of generation capacity through its acquisition
of a 50-percent interest in CE Generation LLC from CalEnergy Company, Inc.,
bringing the total power assets either in operation or under development to over
3,000 megawatts.
"The earnings contribution from El Paso Energy International continues
to grow," said Mr. Wise. "In February, the company acquired a 63-percent
interest in East Asia Power Resources Company in the Philippines, and in March
we acquired an additional 10- percent in the Samalayuca II power project in
Mexico, bringing El Paso's overall interest in the project to 40 percent."
Mr. Wise concluded, "El Paso Energy's first quarter results are a
continuation of the forward momentum established during the past several years,
and we expect to build on this momentum as we prepare for the announced merger
with Sonat Inc. later this year."
FIRST QUARTER CONSOLIDATED AND BUSINESS SEGMENT RESULTS
Consolidated earnings before interest expense and income taxes (EBIT)
for the first quarter rose 17 percent to $190 million from the $163 million
level reported in the year ago period.
Tennessee Gas Pipeline Company reported first quarter EBIT of $113
million compared to $98 million a year ago. The $15 million increase was
primarily due to lower operating expenses in the current period. Tennessee
system throughput averaged 5,564 billion British thermal units per day (BBtu/d)
for the quarter.
El Paso Natural Gas Company reported first quarter EBIT of $56 million
compared to $52 million in 1998, with the increase resulting from higher
transportation revenues.
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EL PASO ENERGY REPORTS RECORD
FIRST QUARTER EARNINGS
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El Paso's first quarter 1999 throughput averaged 3,936 BBtu/d, up 4 percent from
the prior year.
El Paso Field Services Company reported first quarter EBIT of $16
million compared to $24 million in 1998. The decrease was due to lower natural
gas and liquids prices, partially offset by a 10 percent increase in gathering
and treating volumes and the contribution from the company's interest in
Leviathan. Gathering and treating volumes averaged 4,378 BBtu/d, while
processing volumes averaged 981 BBtu/d.
El Paso Energy Marketing Company reported EBIT of $8 million for the
first quarter of 1999 compared to $0.2 million in 1998. Average marketed gas
volumes in the quarter were 4,443 BBtu/d and power marketed volumes were 13,213
thousand megawatt hours.
El Paso Energy International Company reported first quarter EBIT of $3
million compared to $2 million in 1998.
With over $10 billion in assets, El Paso Energy Corporation provides
energy solutions through five business units: Tennessee Gas Pipeline Company, El
Paso Natural Gas Company, El Paso Field Services Company, El Paso Energy
Marketing Company, and El Paso Energy International Company. The company owns
the nation's only integrated coast-to-coast natural gas pipeline system and has
operations in interstate natural gas transmission, gas gathering and processing,
energy marketing, and international infrastructure development. Visit El Paso
Energy's web site at www.epenergy.com.
FORWARD-LOOKING STATEMENT
Information in this document may contain forward-looking statements or
projections. The company has made every reasonable effort to ensure that the
information on which these projections are based is current, accurate and
complete. However, a variety of factors could cause actual results to differ
materially from the projections contained in the document. While the company
makes these projections in good faith, neither the
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EL PASO ENERGY REPORTS RECORD
FIRST QUARTER EARNINGS
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company nor its management can guarantee that the future results predicted in
these projections will be achieved. Additional factors that may affect the
company can be found in the company's 1998 Annual Report on Form 10-K. In
addition, El Paso Energy Corporation and Sonat Inc. have filed a Registration
Statement on S-4 / Joint Proxy in conjunction with their announced merger
agreement. These reports, which are filed with the Securities and Exchange
Commission, are hereby referenced in their entirety for further information
about the company, its operations and its financial statements.
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EL PASO ENERGY CONTACTS:
Media Relations: Paula Delaney (713) 420-6885
Mel Scott (713) 420-3039
Investor Relations: Bridget McEvoy (713) 420-5597
